Steam

We provide space and hot water heating for more than 1,500 steam customers that occupy roughly 500 million square feet of Manhattan real estate. In addition, we supply our customers with steam that meets U.S. Food and Drug Administration quality standards. Many historic landmark high-rise buildings and major cultural institutions reap benefits from the use of our steam, as it is currently the lowest greenhouse gas (GHG)-emitting energy source per unit of energy delivered under the latest New York City Local Law 97 regulation.

Over 60% of our annual steam production is co-generated and 98% of the fuel we use to generate steam is natural gas. This co-generated steam allows customers to earn points toward Leadership in Energy and Environmental Design (LEED) certification for their buildings and improve their Energy Star portfolio manager scores. Additionally, our co-generated steam reduces carbon emissions by about 25% compared to traditional fossil fuel boilers.

Our goal as a steam business is thus twofold: 1) continue to provide efficient steam service safely to our existing customers; and 2) aim to reduce the carbon footprint of our steam system to meet our Clean Energy Commitment, which is aligned with the CLCPA.

Generating Capacity

As of December 31, 2024, we generate 780 MW, producing 3 TWh of electricity.²

[2] Excludes generation from Broken Bow II, a wind power project that was held for sale by Con Edison at December 31, 2024 and sold and transferred in January 2025.

Con Edison-Owned Generation at December 31, 2024780 MW of Capacity Producing 3 TWh of Electricity

• Natural Gas on
• Petroleumon
• Solaron
• Windon

Figure 10

In 2024, our East River, 59th Street, and 74th Street plants provided 780 MW of installed capacity and produced 3 TWh of electricity, over 99% of which was produced using natural gas.

Safety

Our investment in steam system safety supports our risk mitigation strategy, which comprises three pillars: prevention, detection, and timely response.

Prevention

Our Steam System Risk Assessment Model (SSRA) plays a critical role in maintaining the integrity of our steam distribution system and, thereby, the safety of both our employees and the public. It evaluates the probability of the occurrence of adverse events such as corrosion, overpressure, equipment failure, flooding, and others.

Our model also performs a consequence analysis that quantifies the impact of steam failures by considering factors such as: 1) energy release; 2) failure location; and 3) the density of nearby infrastructure. Using these factors, SSRA assigns a risk level we use to guide proactive maintenance and replacement of system components.

Detection

Trained Steam Operations personnel conduct weekly visual surveys of our steam distribution system. The system also uses a Remote Monitoring System (RMS) that notifies our Steam Troubleshooter Dispatch Center of operating conditions requiring attention. In 2024, our Steam Operation’s Team continued to expand RMS throughout our steam network. We expect to expand RMS functionality from the current 124 locations to an additional 100 sites in 2025.

Response

We are dedicated to maintaining the safety and reliability of our steam system through a comprehensive strategy that emphasizes rapid response and strong partnerships with external agencies. We aim to address reports of vapor conditions across the system within 45 minutes 90% of the time, and within 60 minutes 95% of the time. Steam Operations has consistently achieved these response time targets.

We maintain close relationships with first responders and government agencies, including New York City’s Fire and Emergency Management departments. For instance, we:

• Conduct annual trainings on how to properly respond to steam incidents;
• Familiarize New York City agencies with our steam system, hazard recognition methods, and emergency response procedures; and
• Conduct regular emergency response drills to maintain readiness and optimize performance.

Regulatory Compliance

We have dedicated compliance personnel across Steam Operations as well as operating procedures and standards to comply with all applicable New York City, New York State, and U.S. federal code requirements. To support our compliance measures, our Steam Operations Compliance Team verifies that employees operate and maintain applicable systems and equipment in accordance with all rules and regulations.

Decarbonizing Our System

Steam Operations concluded an engagement in early 2024 with a consultant who conducted an Electrification Study which included comparative engineering and cost analysis for ten different types of buildings within our steam service territory to identify the complexities New York City buildings might encounter when transitioning from their existing onsite boiler-based systems or steam service to electric service as they prepare their buildings to meet New York City’s decarbonization goals. We used the study’s findings to support our new business and marketing strategy, which is outlined in the Steam Business Development Plan that was developed at the end of the year as well as guide internal decisions to work to ensure the steam business continues to meet future customer needs.

Using findings from the Electrification Study, we launched a decarbonization study and subsequently developed an implementation plan to begin the transition to a carbon-neutral steam generation base by 2050 while continuing to meet the needs of our customers, in line with New York State initiatives. The study analyzed pathways to decarbonize the steam system by 2050, evaluating assets, energy availability, costs, and specific projects. It assessed 24 decarbonization technologies and estimated an optimal asset portfolio. Modeling refined the plan, leading to plans to make investments in electric boilers, heat pumps, and thermal energy storage through 2035. Three long-term pathways were identified, incorporating electric assets and new low-carbon fuel boilers and turbines.

The following three early deployment projects will be proposed to the PSC in 2025 for approval and, if approved, will set us on the path to carbon-neutral steam generation by 2050:

• An industrial heat pump at our East River Station will use heat from the East River to inject thermal energy into our steam system.
• An electric boiler at our 74th Street Station will be powered by a nearby existing substation.
• A thermal energy storage (TES) unit at our 74th Street Station will use electricity from the grid during times of minimal impact to create stored heat energy that will subsequently be used during times when the electric system is most constrained.

To facilitate our research into and use of carbon-reduction technologies and means of generating steam more efficiently, we formed an internal cross-functional team. Areas they are exploring include: 1) alternative fuel sources; 2) carbon capture; 3) use of electric boilers and industrial heat pumps powered by renewable energy; 4) hot water loops; 5) waste heat recovery and 6) thermal energy storage.

Additional research and exploration of opportunities we undertook in 2024 includes:

• A feasibility study of implementing a district hot water loop system to repurpose steam condensate to heat nearby buildings that have fossil fuel-based heating systems.
• Partnering with the National Renewable Energy Laboratory (NREL) to study whether a large-scale geothermal project could be implemented at our East River Station.
• Benchmarking our system against district steam systems in other cities using energy networks to meet carbon reduction goals.
• Active involvement in discussions and studies with New York City and New York State regulators

Over the coming decades we will continue to collaborate with stakeholders and customers to both decarbonize our steam system and help usher in fundamental changes in energy consumption by supporting energy efficiency. We look forward to keeping our community and stakeholders informed about our progress.

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