Revenue contribution by segment
Sale of electricity is the principal business of Consolidated Edison (ED). It generates nearly 80% of revenues from supplying electricity. Most of the electricity that Consolidated Edison Company of New York (or CECONY), an electric utility company that ConEd supplies, comes from third-party power purchase contracts or through wholesale markets.
CECONY is the major contributor in Con Edison’s business. CECONY’s electric generating facilities are located in Manhattan and have an aggregate capacity of 705 megawatts. Orange & Rockland Utilities doesn’t own any electricity generating capacity. CECONY supplies electricity to various customer classes. Among them, revenues from residential customers are the highest. It also serves commercial customers and municipal bodies. Energy choice customers also generate a significant portion of CECONY’s total revenue. It’s basically a scheme in which customers choose an electricity supplier, but the delivery source remains Con Edison.
Consolidated Edison’s competitive business segment, Con Edison Solutions, doesn’t directly sell electricity to other utilities. But it generates revenue by providing delivery services to the customers of the utilities. It adds to revenues by offering energy efficiency services to companies and government entities.
Along with the supply of electricity, Con Edison also distributes gas and steam. Gas and steam have smaller contributions to ConEd’s top line. CECONY delivers natural gas (UNG) to its customers through an estimated 4,330 miles of mains and 369,339 of service lines.
Investors can have a passive exposure to utilities by investing in the Vanguard Utilities ETF (VPU). Con Edison accounts for 2.8% of VPU. Duke Energy (DUK) and NextEra Energy (NEE) are the top constituents of VPU, forming 7.3% and 6.7%, respectively, as of December 24, 2015.