ED · 10-Q · 2026Q2 · Full report

Interest Rate Environment

CONSOLIDATED EDISON INC · 2026-08-06 · Importance 52 · Surprise 56 · In source text

Con Edison states that inflationary pressure and higher interest rates have increased the capital required by its Utilities and the cost of that capital. The company had $721 million of commercial paper outstanding at June 30, 2026, compared with $1,220 million a year earlier, while CECONY had $480 million outstanding versus $800 million. In June 2026, CECONY issued $450 million of 5.15% debentures due 2036 and $850 million of 5.875% debentures due 2056. A 10% increase in rates applicable to variable-rate debt would increase annual interest expense by approximately $5 million for Con Edison and $4 million for CECONY.

Key facts

• Con Edison estimates that at June 30, 2026, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $5 million and CECONY $4 million.
• Net interest expense increased $8 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher interest on long-term debt resulting from increased debt balances of $17 million, offset by a decrease in interest expense on regulatory deferrals of $5 million and lower other interest expense of $4 million.

Impact estimates