Consolidated Edison to Go Solar

Consolidated Edison Inc. (ED - Analyst Report) has filed a proposal with the state of New York asking for funds for solar energy projects in New York City. The company has requested $24.8 million from the state to fund renewable energy programs for residential and commercial customers in New York City. The company filed a proposal with the New York State Public Service Commission (PSC) to support the development of 25 MW of solar energy resources in New York City by 2015, which would offset about 16,000 tons of carbon dioxide (CO2) emissions annually.
 
Consolidated Edison had earlier asked the PSC for $125 million for the installation of renewable energy projects throughout its service area. If approved, the combined proposed program funding would achieve more than 100 MW of new solar capacity in the company's service area, enough to offset 60,000 tons of CO2 emissions a year.
 
In fiscal 2009, Consolidated Edison reported an EPS of $3.09, beating the fiscal 2008 EPS of $3.00. Earnings were boosted by lower fuel expenses and purchased power cost but offset by higher operations, maintenance expense and depreciation.
 
Consolidated Edison expects EPS from ongoing operations for fiscal 2010 in the range of $3.10 – $3.30. This is in line with the Zacks Consensus Estimate of an EPS of $3.26 for the period. The forecast reflects capital investments of $2.3 billion, substantially all of which will be spent on the company's regulated utilities. The company also expects to issue common stock worth between $300 million and $500 million and long-term debt between $600 million and $900 million to finance its expansion plans.
 
New York City-based Consolidated Edison is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. Consolidated Edison’s regulated businesses operate through two subsidiaries − Consolidated Edison Company of New York (Con Edison of New York) and Orange and Rockland Utilities (O&R).
 
Con Edison of New York is a regulated utility in New York City and Westchester County. O&R serves electric and gas customers in southeastern New York State, northern New Jersey, and northeastern Pennsylvania. Consolidated Edison’s unregulated businesses operate through three subsidiaries – Consolidated Edison Development (engaged in infrastructure development), Consolidated Edison Energy (supplies energy in the wholesale market) and Consolidated Edison Solutions (provides retail energy).

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