Consolidated Edison Inc Liquidation Value

Consolidated Edison Inc (ED) remains deeply negative on a liquidation basis, consistent with prior periods. As of March 31, 2026, total assets of $74.7B are dominated by net PP&E of $56.1B (utility plant in service of $69.3B less $16.6B accumulated depreciation, plus $3.4B CWIP). Applying a 50-70% recovery haircut to net utility PP&E yields approximately $28B-$39B of recoverable value from the largest asset class. Other noncurrent assets of $11.3B include $6.0B in regulatory assets, $4.3B in pension plan assets, and $1.1B in long-term investments — regulatory assets carry zero liquidation value (they extinguish without ongoing rate recovery), pension assets are encumbered by offsetting pension obligations, and the MVP equity interest was sold in Q1 2026 for $358M. Current assets of $6.3B contain $2.8B gross AR (allowance $468M), $1.1B prepayments, $362M current regulatory assets, and $147M cash. Applying standard haircuts (cash 100%, AR net ~90-95%, prepayments/regulatory ~0%) yields roughly $2.5B-$2.6B from current assets.

On the liability side, long-term debt stands at $25.6B at face (CECONY $24.1B, O&R $1.5B), current liabilities $5.3B (including $869M commercial paper, $250M current LTD tranche, $1.7B AP/accrued), and noncurrent liabilities of $18.3B (including $17.4B at CECONY alone — deferred taxes, regulatory liabilities $5.0B noncurrent, pension $582M, environmental $1.1B, ARO $484M). In liquidation, regulatory liabilities do not offset against assets; they represent future obligations to customers. Total face-value liabilities approximate $49.1B.

MFFAIS reports CLV of negative $5.5B, LLV/OLV of negative $2.7B, reflecting the structural liability excess over haircut assets. The primary drivers of negative recovery are the $25.6B LTD stack, $6.0B in regulatory assets with zero liquidation value, and noncurrent liabilities of $18.3B that remain at face. Since the prior 10-K (December 31, 2025), net plant grew $701M (capex run rate $1.17B/quarter), LTD was essentially flat ($25.6B vs $25.6B), CECONY repaid a $500M term loan and $300M short-term debt (net reduction in notes payable of $647M), and Con Edison Transmission completed the $358M MVP equity sale — proceeds applied to debt reduction. Common equity ratio improved from 48.6% to 50.0% at the consolidated level, supported by a $776M public equity offering in Q1 2026. AR aged balances remain elevated: CECONY $1.35B over 60 days out of $3.12B gross, flagged as a continuing liquidity drag. The filing discusses pension and OPEB obligation changes in MD&A but the net pension obligation impact is not separately tagged in a single consolidated XBRL line; it is embedded within noncurrent liabilities and regulatory deferrals. Goodwill of $406M is tagged and would receive zero recovery in liquidation.