ED · 10-Q · 2026Q3 · Full report

Commodity Price Risk

CONSOLIDATED EDISON INC · 2026-11-05 · Importance 35 · Surprise 48

Con Edison’s commodity price risk primarily concerns purchases and sales of electricity, gas, and related derivatives, with the Utilities using risk-management strategies to mitigate exposure. At September 30, 2026, a 10 percent decline in market prices was estimated to reduce the fair value of utility hedging derivatives by $207 million, compared with $162 million at September 30, 2025—an increase of approximately 28 percent year over year. The estimated exposure comprised $187 million for CECONY and $20 million for O&R, and the company expects fair-value changes to be largely offset by opposite changes in purchased energy costs.

Key facts

• As of September 30, 2026, a 10 percent decline in market prices was estimated to reduce the fair value of Utilities’ electricity- and gas-hedging derivatives by $207 million: $187 million for CECONY and $20 million for O&R. source
• As of September 30, 2025, a 10 percent decline in market prices was estimated to reduce the fair value of Utilities’ electricity- and gas-hedging derivatives by $162 million: $148 million for CECONY and $14 million for O&R. source
• Con Edison expects changes in fair value from a 10 percent decline in market prices to be largely offset by directionally opposite changes in the cost of electricity and gas purchased. source
• Increases in electric and gas commodity prices may contribute to slower recovery of cash from outstanding customer accounts receivable balances. source
• The Utilities generally recover from full-service customers the costs of energy purchased for them, including gains and losses on certain hedging derivatives and related costs, under provisions approved by state regulators. source