Managing Our Emissions

Over 90% of Consolidated Edison Company of New York, Inc.’s (CECONY’s) non-greenhouse gas (GHG) air emissions are generated by powering our steam system. One of the many characteristics that makes New York City unique is its reliance on steam, which provides space and hot water heating for large segments of Manhattan. The steam system customer base includes over 1,500 buildings throughout Manhattan, equating to roughly 500 million square feet of prominent New York City real estate. Many historic landmark high-rise buildings and major cultural institutions are steam customers that would have significant difficulty converting to another heat source. Our challenge is to continue to provide efficient steam heat to our community while decarbonizing our system to meet the clean energy goals  of our company and New York State.

Since 2005, we have reduced our emissions of NO_x by 70% and SO₂ by 99%

Air Quality / Non-GHG Emissions

We’re proud to say that since 2005, we have reduced our direct emissions of nitrogen oxides (NO_x) by around 70% and sulfur dioxide (SO₂) by around 99%. We achieved large reductions in NO_x emissions by adding natural gas capability to several generating units at our steam plants. We also make use of emissions-reducing controls such as low NO_x burners. Increasing the proportion of cleaner-burning natural gas used to produce steam was a key factor in these emission reduction efforts. Our steam stations comply with New York State NO_x limits, and stations monitor NO_x targets throughout the year to meet these limits. We have also drastically reduced our SO₂ emissions by using predominantly natural gas and low-sulfur fuels. Sixty percent of CECONY’s annual steam production comes from co-generation, which reuses waste heat from boilers or gas turbines to produce additional energy. This efficient use of waste heat, in addition to advanced pollution controls on some of CECONY’s units, also helps to reduce the per-unit non-GHG emissions such as NO_x.

While we predominantly use natural gas for steam and electricity production (over 98% of the fuel used in our steam and electric generating units in 2022 was natural gas), we retain backup fuel sources to maintain reliability during periods of natural gas-system limitations. No. 4 oil and kerosene are the backup fuels currently used at our steam and electric generating stations. By the end of 2024, all generating units that use No. 4 oil will be fully transitioned to No. 2 oil, which is lighter and has a lower concentration of criteria pollutants. Use of No. 2 oil also aligns with a New York City mandate aimed at reducing local air pollution by requiring steam and electric generating facilities to cease the use of No. 4 oil in boilers by January 1, 2025.

60% of CECONY’s annual steam production comes from co-generation, which reuses waste heat.

Over its 140 years of operation, the fuels upon which the CECONY steam system relies have continued to evolve, from using coal as a fuel source, to heavy fuel oils, to natural gas. One of our most prominent challenges in the coming decades will be adapting our steam system for its next evolution to become a significant factor in the decarbonized clean energy future. What alternative fuels and technologies will come next, and how will we incorporate them into our steam system? Our engineers are working on it. We’re looking forward to keeping our community and stakeholders abreast of our progress toward a net-zero-emissions future.

Similar to GHG emissions, non-GHG emissions are expected to continue to follow a downward trend, as described in the decarbonization plan included in our Steam Long Range Plan and latest Steam Rate Case filing.

The Company’s Clean Energy Commitment: Pillar 4 Net-Zero by 2040 (Scope 1) will drive steam energy efficiency programs, alternative fuels, and technology innovation to reduce overall emissions.

In addition, as these programs and activities are implemented, we anticipate a moderate reduction in annual steam sales, which will correlate to decreased fossil fuel usage and will result in reduced emissions overall.

GHG Emissions Reductions

In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal that 70 percent of the electricity procured by load serving entities regulated by the New York State Public Service Commission come from renewables by 2030. Further, the CLCPA requires the statewide electrical demand system to have zero emissions by 2040. In addition, the law establishes a Climate Action Council to recommend measures to attain the law’s greenhouse gas (GHG) limits, including measures to reduce emissions by displacing fossil-fuel fired electricity with renewable electricity or by implementing energy efficiency measures to achieve an 85% reduction of GHG emissions by 2050. In support of the State’s goals, Con Edison (the Company) is committed to leading and delivering the transition to a clean energy future, through our updated Clean Energy Commitment. We are committed to building a resilient, 22nd Century electric grid that delivers 100% clean energy by 2040. We are aiming for net-zero Scope 1 Emissions by 2040, by decarbonizing our steam system and other company operations and reducing our fugitive methane emissions from our natural gas delivery system to net zero by 2040.

Our Energy Vision is to take a leadership role in the delivery of a clean energy future for our customers. We will do that by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, advancing electrification of heating and transportation, and transitioning away from fossil fuels to a net-zero economy by 2050. To achieve our vision, we are committed to reducing our carbon footprint. We firmly support efforts by local, state, and federal agencies to reduce GHG emissions. We have reduced our carbon emissions by 53% (39.9 million metric tons of CO₂ equivalent) since 2005 – equal to taking more than 500,000 vehicles off the road.

Since 2005, we have reduced our CO₂ by 53% – thats equal to taking over 500,000 vehicles off the road.

Con Edison recognizes the international standard for delineating emission sources into various categories of “scope” based on whether the company was directly responsible or indirectly responsible for the GHG emissions. These categories are broken into 3 scopes of emissions:

• Scope 1 emissions are those GHGs emitted into the atmosphere by Company-owned or-controlled assets. As with our non- GHG emissions, the majority of Con Edison’s Scope 1 GHG emissions (89%) result from CECONY’s operation of steam, electric, and co-generation plants, where fossil fuel is combusted, and GHGs are emitted as a result. Additionally, fugitive Scope 1 emissions occur when pressurized equipment and infrastructure containing a GHGs has a controlled or uncontrolled emission into the atmosphere. Fugitive Scope 1 emissions are principally composed of SF₆ from electric distribution equipment (2%), and methane (CH₄) from the Company’s natural gas distribution system (7% CECONY; 1% Orange & Rockland). The Company’s vehicle fleet is also a source, albeit relatively small (1%) for Scope 1 emissions.

• Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity consumed by the Company. The consumption of electrical power at Company facilities necessitates, in part, that an upstream power generator combusts fossil fuels to generate electricity, which, in turn, leads to greenhouse gas emissions. For Con Edison, nearly all Scope 2 emissions originate as electric consumption by Company-owned assets, and losses in electric distribution and transmission (T&D losses).
• Scope 3 emissions represent indirect GHG emissions from sources not owned or controlled by the Company, which include indirect emissions generated as a result of customers using Con Edison’s services. The vast majority of Con Edison’s Scope 3 emissions indirectly relate to the delivery of electricity and gas to our customers, which results in GHG emissions from either the upstream generators supplying the electricity, or the Company’s customers’ combustion of gas. Another, and more difficult to calculate component of Con Edison’s Scope 3 emissions include the emissions resulting from the Company’s supply chain; specifically, those emissions resulting from the production of material, transportation, and labor associated with Company suppliers.

The chart below presents the proportion of our Scope 1, 2 and 3 emissions, focusing on the Scope 3 emissions from the delivery to and use of electricity and gas by our customers (not including emissions associated with our supply chain or methane emissions “upstream” from the production and delivery of natural gas to the “city gate”).

• Our Scope 1 emissions comprised largely of steam, electric, and co-generation plant operations, which together make up 7% of our total GHG emissions,
• Scope 2 emissions are associated with T&D losses and comprise 3%,
• The majority (90%) of our total GHG emissions are Scope 3, nearly evenly split between the emissions associated with generating the electricity (44%) and customer combustion of natural gas (46%) that we deliver.

This chart above presents Con Edison Inc. Scope 1 GHG emissions trend data from 2011 through 2022. They show a trending increase in avoided GHG emissions compared to a 2005 baseline, including significant reductions in SF₆ and methane. Carbon dioxide emissions, which are largely from the steam, electric, and co-generation plant operations have been reduced over this time by switching to natural gas as a fuel source. Planning for future decarbonization efforts to drive further GHG reductions in these plants is well underway and we look forward to sharing our findings.

Scope 2: Indirect greenhouse gas emissions associated with delivering products to customers (e.g., electrical transmission losses)

Scope 3: Indirect greenhouse gas emissions associated with customers using CEI products (e.g., customers’ use of delivered gas)

Steam Environmental Efforts

We provide customers with U.S. Food and Drug Administration quality steam, of which over 60% was co-generated in 2022. Because the steam is co-generated, customers can apply for points toward Leadership in Energy and Environmental Design (LEED) certification of their buildings and increase their score in Energy Star’s portfolio manager. Our co-generated steam reduces carbon emissions by approximately 25% of what would have been otherwise emitted through traditional boilers—that is equal to removing approximately 200,000 vehicles from the road every year.

Our customers also benefit from the advantages of a centralized district steam system, which reduces onsite emissions from boilers in customer buildings. These centralized investments benefit all customer buildings. The district system’s ability to aggregate a wide variety of customer load profiles also allows for a higher average efficiency than what can be achieved at a single location. All these benefits are reflected in the most recent NYC Local Law 97, where our district steam system was identified as the lowest greenhouse gas emitting energy source per unit of energy delivered.

In alignment with New York City and State’s climate commitments, we are evaluating opportunities to reduce our steam system’s environmental footprint. We acknowledge that business as usual is not and cannot be the way of the future to achieve these goals, which is why we have recently updated our Clean Energy Commitment with a more detailed identification of the initiatives we are pursuing. As part of this update, we have pledged to reduce the Company’s emissions with a focus on decarbonizing our steam operations.

We are taking a more forward-thinking approach, conducting research, and evaluating opportunities for more efficient generation and customer programs, while using existing and emerging technologies. To continue supporting our customers in a changing environment, Steam Operations has been proactive in several efforts, such as benchmarking with district steam systems in other cities that are using their district energy networks to achieve their carbon reduction goals. We have also been an active member in discussions and studies as regulations for the city and state plans evolve.

Steam Operations has established an internal cross-functional team dedicated to evaluating the feasibility of carbon- reduction technologies and strategies with the existing steam system. These include alternative fuel sources, carbon capture, production via electric boilers with renewable energy, expanding and/or converting to hot water systems, wasted heat recovery sources, and other emission reduction technologies. In the next few years, we are expecting to build and launch a portfolio of demonstration projects for the technologies that seem most promising for carbon-free steam generation including low-to-zero carbon gaseous fuels, industrial heat pumps, electric boilers, and carbon capture.

Reduction of SF₆ Emissions

In accordance with a 1999 memorandum of understanding between the U.S. Environmental Protection Agency (EPA) and CECONY, we agreed to reduce our emissions of SF₆ gas (sulfur hexafluoride) by 5% annually from our 1996 baseline. In 2022, we released about 98% less SF₆ than in 1996, well ahead of our commitment to the EPA. SF₆ is a nontoxic, nonflammable greenhouse gas, with a warming potential more than 22,000 times higher than carbon dioxide, that can remain in the atmosphere for up to 3,200 years. It is a highly efficient insulating medium and arc extinguisher used throughout the energy industry in different types of equipment, including high-voltage breakers and gas-insulated switchgear.

In 2022, we released about 98% less SF₆ than in 1996, well ahead of our commitment to the EPA.

Currently there is no viable alternative to SF₆ for high voltage equipment like that in CECONY’s electric system. There is research underway, particularly in Europe, to find alternative gases, but there are no substitutes that would replace the SF₆ in existing equipment. Con Edison is a member of the Electric Power Research Institute (EPRI) where we benchmark with peer utilities and stay informed of industry updates. EPRI is supporting research around alternative gases as well. Some utilities in the United States have replaced SF₆-containing equipment, but those programs have been limited to lower voltage classes of equipment than those used in CECONY’s electric system. Therefore, at the present time, limiting emissions is the best strategy for contributing to a healthier environment and helping to reduce global warming.

While we have greatly reduced our emissions in the past decades, we continue to cut our remaining emissions. We established a five-year plan at the start of 2020 to reduce SF₆ emissions by 500 pounds annually. This is a rate of more than 5% annually from current levels. So far, we have achieved 5% annual reductions in 2020, 2021 and 2022.

To reduce SF₆ emissions, we use programs developed by a dedicated team that established a process to address leaking equipment in a timely matter. For example, a team of specially trained technicians constantly monitors the emissions of all equipment to enable quick and efficient detection and repair of SF₆-containing equipment. The team also uses cameras designed to detect SF₆ to monitor equipment. We follow best management practices for handling SF₆ gas with minimal emissions, including using innovative leak-sealing techniques to make the necessary repairs. We also have several targeted programs to retire or replace older SF₆ equipment with new SF₆-containing equipment, including circuit breakers, automatic ground switches and gas-insulated switchgear. New SF₆-containing equipment used in replacements typically has a much lower leakage rate than earlier technologies, with new equipment warranted to a leakage rate of less than 0.5%.

Note: The above chart shows the leakage rate (pounds of SF₆ leaked divided by the nameplate capacity of the system), which is based on the percentage of the total amount of SF₆ gas in the electric equipment (nameplate capacity) of our electric system.  The data is presented this way so that our performance can be compared to other electric systems that might be larger or smaller.

Natural Gas Leaks

CECONY performs gas leakage surveys in shorter survey intervals than prescribed by federal and New York State regulations. Our accelerated survey effort is supported by an aggressive leak repair program that also repairs leaks much sooner than the timeframes required by New York State regulations (code). The leak repair program addresses Type 1 leaks, which are an immediate hazard and thus repair work has to commence as soon as a leak is discovered to eliminate the hazard, Type 2A and Type 2 leaks, which are not an immediate hazard and thus repair work can be scheduled and completed in a prescribed timeframe, and Type 3 leaks, which are non-hazardous; the code does not require that such leaks be repaired at all. The table below highlights the success of CECONY’s leak identification and repair program in reducing emissions as compared to code requirements.

This proactive leak identification and rapid repair program significantly reduces the amount of natural gas emissions that would have occurred had CECONY simply adhered to code repair requirements. The program reduces annual emissions from leaks by approximately 136 million cubic feet, or about an 87% reduction compared to the emissions that would occur under the New York State-mandated timelines. This estimation assumes Type 3 leaks have a 12-month repair cycle when the code, in fact, does not require Type 3 leaks to be repaired at all. CECONY has estimated the emissions utilizing emission rates determined by a study focused on CECONY’s gas distribution system undertaken by the Environmental Defense Fund (EDF) and performed by Colorado State University, a nationally recognized leader in the field of emission detection and quantification.

To enhance the effectiveness of our overall leak identification process, CECONY is investigating new advanced leak detection technologies through ongoing work with Colorado State University. CECONY has requested funding for a high emissions gas leakage survey using advanced leak detection technologies.

CECONY is also beginning to use a natural gas capture device called the Zero Emissions Vacuum (ZEVAC) technology. ZEVAC captures natural gas in mains that are undergoing repairs. The captured gas is transferred to other portions of the piping system so that the gas is not emitted into the atmosphere. Although the use of ZEVAC technology is currently limited to use in the higher pressure portions of the distribution system, CECONY is committed to expanding its use going forward. We are also evaluating the benefit of a smaller unit called the Mini ZEVAC for applications not suitable for the full-size unit that is currently in use.

CECONY’s leak management initiatives have also incorporated the benefits of smart meter installations. Natural gas detectors that use the smart meter network to alert us of natural gas leaks are being installed on every gas service throughout the system in close proximity to where the gas service enters the building. CECONY worked with a gas-detector manufacturer to innovate the these first-of-its-kind gas detectors. By mid-2022, more than 135,000 of these detectors had been installed and more than 1,400 leaks had been detected and repaired — potentially preventing explosions and reducing emissions. These state-of-the-art devices can detect natural gas at levels as low as 10 percent of the lower explosive limit.

Additionally, O&R performs annual leak surveys of the entire distribution system to detect methane emissions and make associated repairs to the gas system. O&R is looking into several initiatives to meet the requirement under New York’s Climate Leadership and Community Protection Act of having zero carbon emissions by 2050. We are also exploring new tools and technologies that would aid in mitigating emissions during normal operations and continue to conduct field trials of enhanced leak detection tools. Additionally, O&R is in the middle of a three-year program to install Natural Gas/Methane Detectors (NGDs) in all locations with indoor gas meters, approximately 15,400 locations. Not only do these NGDs sound an alarm at customer locations, they also automatically alert our Gas Emergency Response Center, ensuring a rapid safety response as well as the quick mitigation of any associated methane emissions.

Methane Challenge

In 2016, Consolidated Edison Company of New York, Inc. (CECONY) joined 40 other local distribution companies as a founding partner in the EPA’s Natural Gas STAR Methane Challenge. The goal of this program is to reduce methane emissions by replacing a significant number of natural gas mains. Our participation in this program was a natural extension of our participation in the Natural Gas STAR program, which we helped found in 1993.¹

Our goal is to replace 4% of our cast iron and unprotected steel mains each year. Since 2017, we have replaced 549 miles of such mains, including a 6% replacement rate for 2022.

CECONY performs monthly leak surveys of the entire distribution system to detect methane emissions and make associated repairs to the gas system. In addition, CECONY is looking into several initiatives to meet the requirement under New York’s Climate Leadership and Community Protection Act of 85% reduction in greenhouse gas emissions from 1990 levels by 2050. As of 2021, we have reduced our gas system methane emissions by 55%* from the 1990 baseline.

In 2020, CECONY joined 36 other natural gas companies in the ONE Future Coalition to reduce company methane emissions to 1% or less by 2025; the most recent ONE Future Coalition report indicates that the industry has already reached the 2025 target.

We are also exploring new tools and technologies that would aid in mitigating emissions during normal operations and continue to conduct field trials of enhanced leak detection tools.

Likewise, O&R has also taken significant actions to reduce methane emissions for over 20 years. O&R has had an aggressive gas main replacement program since 1998, replacing over 450 miles of leak prone pipe in that time. O&R’s low pressure/ cast iron gas system was completely retired in 2018, eliminating a significant source of methane emissions. As an indication of the success of this main replacement program, O&R went from a year-end leak backlog of over 650 gas leaks in 2012 to only two gas leaks in 2021. At current replacement rates, O&R expects to retire our remaining bare steel pipe and Aldyl plastic pipe by approximately 2030.

In 2016, Orange and Rockland Utilities, Inc. (O&R) entered into the Methane Challenge. O&R committed to replacing cast iron and unprotected steel main and services with plastic at an annual rate of 6.5%. To date, on average, O&R has replaced targeted mains and services at an annual rate of 6.85%. O&R continues to report under this voluntary program for data keeping and tracking purposes.

¹ EPA is no longer supporting the Natural Gas STAR program as of January 2023, but the goals and reporting provisions of the Methane Challenge will continue.