ConEd plans 28 new substations by 2035 to support electrification and large-load growth (New York).
Consolidated Edison, Inc.'s electric utility subsidiaries are expanding infrastructure to support electrification across New York City and surrounding areas, driven by state and local climate mandates.
In the second quarter ending June 30, Consolidated Edison Company of New York (CECONY) and Orange & Rockland Utilities (O&R) reported combined electricity sales revenue of $3.1 billion, up from $2.78 billion in the second quarter of 2025—a gain exceeding 10% year over year. Together, the two utilities serve more than 9 million people across New York City's five boroughs, four downstate New York counties, and three northern New Jersey counties.
ConEd plans to place 28 new substations in service by 2035 as part of a $37.2 billion capital investment program for CECONY and O&R distribution networks, up from the 22 substations the company had previously targeted. "Year-to-date results continue to be in line with expectations," said Kirk Andrews, ConEd's senior vice president and chief financial officer.
The expansion reflects accelerating demand for electricity across the service territory. New buildings in CECONY's service area are requesting as much as 25% more electric load than older buildings. Major customers driving this growth include a new Major League Soccer stadium and entertainment complex in Queens; John F. Kennedy International Airport, currently undergoing upgrades; and a new mixed-use community, industrial park, and all-electric food distribution center in the Hunts Point section of the Bronx.
This capital plan aligns with strict climate policies, notably New York City's Local Law 97, which requires owners of buildings larger than 25,000 square feet to reduce greenhouse gas emissions by 40% by 2030 and achieve net zero by 2050.
"We are investing to further strengthen reliability and system resilience, including preparing our network for periods of extreme heat, and redoubling our efforts to keep our service affordable for all customers while continuing to support New York's clean energy transition," ConEd Chairman and CEO Tim Cawley said in a statement highlighting the company's "nation-leading electric service reliability." CECONY's largely underground distribution network has experienced 8.5 times fewer customer interruptions and about five times fewer interruption minutes than the national average for U.S. utilities.
However, ConEd disclosed uncertainty around its natural gas utilities in a filing with the Securities and Exchange Commission. "The long-term future of the Utilities' gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State's and New York City's climate goals," the company said.
Rate pressures remain a concern. Commercial and small business customers saw bills increase nearly 10% last summer, though ConEd maintains that average CECONY customer bills remain lower than those of electric utility peers. The company is "continuing to assess" the impact of a new state law requiring utilities to present rate case proposals that keep costs below the inflation rate.
Analyst Julien Dumoulin-Smith of investment bank Jefferies noted that ConEd faces less political risk than competitors pursuing large-scale data center customers. "[ConEd's] lower-risk outlook has resonated with investors recently compared with peers facing data center questions and affordability rhetoric," he wrote.