Physical Risks

Con Edison continues its proactive, forward-looking approach to system resiliency that was formalized as a result of Superstorm Sandy. The Companies climate resilience journey continues to reinforce insights from our 2019 Climate Change Vulnerability Study and 2020 Climate Change Implementation Plan. In September 2023, CECONY incorporated the latest climate science through an updated climate change vulnerability study as required by law. The Company plans to conduct a new climate change study at least every five-years. The Company also filed a long-term (5, 10-, and 20-year) Climate Change Resilience Plan with the NYSPSC in November 2023. O&R built on CECONY’s efforts in this area and conducted its first formal climate change vulnerability study and filed its own long-term Climate Change Resilience Plan in November 2023. The latest science predicts that increasingly severe weather will occur due to climate change – in particular a rise in temperatures earlier than prior projections.

Climate change is projected to increase the intensity of weather events like deluge rain, high winds and storms that the Company will be addressing through measures and plans to prevent, mitigate, and respond. The objective is to reduce the number of customer outages and minimize the extent and length of a disruptive event. Our climate change planning and design guideline uses the latest climate science modeling and our chosen risk profile (SSP5-8.5). The climate model provides projected conditions to 2080. Through lifecycle design, the assets impacted, and adaptation measures needed can be prioritized to prepare for climate change in a timely manner. Preparation can be achieved by investing in upgrades, replacements or incorporated into new assets and infrastructure. The Company reviews climate science advancements using a dedicated climate team with executive governance. Since 2017 the Company has established a climate change working group consisting of external organizations with interest in our approach to climate change. We meet at least twice a year to inform them of our findings and plans. We encourage feedback from all our stakeholders and look for alignment on climate change adaptation as may be appropriate.

For more information, please visit Our Climate Change Resiliency Plan (CECONY), Our Climate Change Resiliency Plan (O&R), and find our latest Task Force on Climate Related Financial Disclosures (TCFD) here: Environmental, Social, and Governance (ESG) Resources | Consolidated Edison, Inc.

Climate Change Risks, Resilience, and Adaptation

Our key 2023 climate change resilience accomplishments are below:

1. The Companies filed their Resilience Plan filings in November 2023 in response to recent climate legislation requiring all New York State electric utilities to conduct a vulnerability study and submit their respective climate resilience implementation plans, which included five-year rate impacts, to the New York State Public Service Commission for approval. This process provided the opportunity to separately identify climate-driven investments to reinforce the electric infrastructure. The utilities worked with NYSERDA to apply the most up-to-date climate science provided by Columbia University and maintain our risk tolerance level. Our study focuses on the 75th percentile of the SSP5-8.5 emissions scenario. CECONY used the information to determine the refinements needed to align our existing climate resilience planning efforts with the accelerated projections of climate change. O&R applied its resilience objectives to the climate data to identify its respective climate-driven adaptation measures and investment needs for its service territory.
2. Integrating climate resilience into engineering, operations, and planning in each company. Our respective Climate Change Resilience Plan filings (totaling a proposed $1.3B in investments over the first five years) refine our efforts to prevent, mitigate and respond to ever more intense projected impacts from climate change through a proposed set of climate-data-driven programs and projects in five-, ten- and twenty-year timeframes. This plan takes into account the latest Intergovernmental Panel on Climate Change (IPCC) Shared Socioeconomic Pathway, SSP5-8.5 Scenario (i.e., a business-as-usual scenario with substantial global warming associated with high emissions) and proposes investments to adapt and mitigate future climate risks.
3. The Companies have remained active in the utility industry to advise and learn from our peers in understanding climate risks and how to adapt to them. CECONY has taken a lead role in the Electric Power Research Institute’s Climate Resilience and Adaptation initiative (READi), and we continue to engage with peer utilities and other infrastructure owners and participate in resilience activities at the state and local level.

We recognize that our approach needs to be flexible as more is learned about climate change impacts from the continually evolving climate science and the increased intensity and frequency of recent regional weather events. Continued collaboration, engagement and benchmarking with our stakeholders will be key to maintaining our ability to provide safe, reliable, and resilient energy to our customers in a changing climate.

For more information, please visit Our Climate Change Resiliency Plan (CECONY), Our Climate Change Resiliency Plan (O&R), and find our latest Task Force on Climate Related Financial Disclosures (TCFD) here: Environmental, Social, and Governance (ESG) Resources | Consolidated Edison, Inc.

Transition Risks

To account for projected impacts of climate change, we plan to continue investing in the increased resilience of our infrastructure, that would deliver safe, secure, and reliable energy to enable net zero greenhouse gas emissions in our service territories by 2050. We expect demand on CECONY and O&R’s electric system to shift to peaking in the winter due to electric space, water heating need and electric transportation. But the pace of electrification depends on policy, rates of customer adoption, and technology advancements required in a decarbonized economy.

In November 2023, the Companies issued our Gas System Long Term Plan which detailed the actions, strategies, and investments needed to transform our gas business through several decarbonization pathways. The Gas System Long-Term Plan also included implications on the electric and steam systems in these pathways, and the policy, market, and technology developments required to enable our customers to transition away from gas usage. With a focus on cost effectiveness and equity, we’re working together with customers, regulators, policymakers, and other stakeholders to make this future a reality. The Plan reaffirms the Companies’ Clean Energy Commitment and outlines strategic objectives in four areas: Clean Energy, Climate Resilience, Core Service, and Customer Engagement. It also emphasizes the need for continued focus and collaboration to develop solutions to meet customers’ energy needs and the State’s clean energy goals.

For more information, please see CECONY’s final Gas System Long-Term Plan, and O&R’s Long-Range Plan.