Consolidated Edison, Inc. (ED): Marketing Mix Analysis [Dec-2025 Updated]

As a seasoned financial analyst who's spent two decades mapping utility transitions, I know you're looking past the steady dividend to see where Consolidated Edison, Inc. (ED) is actually placing its bets in late 2025. Honestly, the story isn't just about delivering power to 3.7 million electric customers across NYC and Westchester; it's about a massive, regulated pivot toward New York's clean energy mandates. We're seeing the Product shift toward solar incentives and electrification pilots, while the Price mechanism balances a fixed 9.75% Authorized Return on Equity for O&R with programs that provided $311 million in affordability discounts last year. Keep reading, because understanding this specific mix of infrastructure investment and customer-centric promotion is key to valuing this complex utility right now.

Consolidated Edison, Inc. (ED) - Marketing Mix: Product

You're looking at the core offerings from Consolidated Edison, Inc. (ED) as of late 2025. The product here isn't a physical good you pick up off a shelf; it's the delivery of essential energy services, heavily bundled with programs designed to drive the clean energy transition mandated by New York State.

Core regulated services: electric, natural gas, and district steam delivery.

The foundation of Consolidated Edison, Inc.'s product is the reliable delivery of energy through its regulated subsidiaries. The scale of this delivery network is substantial, serving millions across its primary service territory, Consolidated Edison Company of New York, Inc. (CECONY).

• CECONY electric service customers: approximately 3.7 million.
• CECONY natural gas service customers: approximately 1.1 million.
• CECONY district steam service customers: approximately 1,510.
• CECONY operates the largest steam system in the U.S..

Clean energy solutions: incentives for solar, battery storage, and EV charging infrastructure.

Consolidated Edison, Inc. actively promotes customer adoption of distributed clean energy resources through specific financial incentives, aiming to integrate these sources into the grid.

The utility is building new electric infrastructure, such as the Brooklyn Clean Energy Hub, to support the integration of renewables and the electrification of transportation and buildings.

Energy efficiency programs: rebates for smart thermostats and up to $4,000 for home upgrades.

The product suite includes extensive programs designed to reduce overall energy consumption, with significant financial incentives offered directly to customers for upgrades.

• Total energy efficiency incentives planned for 2025: $423 million.
• Incentives provided through September 2025 for upgrades (including heat pumps, insulation): $141 million.
• Incentives for professional insulation and air sealing work: up to $4,000.
• Rebate for enrolling an eligible smart thermostat in the Smart Thermostat Program: $85.
• Incentives for geothermal heat pump installations can reach up to $30,000, with an additional $10,000 for residents in disadvantaged communities.
• The Energy Exchange Program offers up to $20,000 for replacing gas appliances with electric alternatives.

In 2024, energy efficiency incentives totaling more than $161 million helped over 338,000 customers.

Grid modernization: investments in new substations and transmission for offshore wind integration.

A major component of the current product strategy involves massive capital expenditure to fortify and upgrade the delivery system to handle future load growth and clean energy penetration.

Consolidated Edison, Inc. has proposed infrastructure investments totaling more than $21 billion over a three-year period to upgrade transmission, substations, and distribution facilities. The broader capital plan projects nearly $72 billion in investments over the next 10 years. These investments are intended to support the integration of clean energy sources, including offshore wind, and manage increased demand from electrification. Specific projects include the Idlewild substation complex and the Brooklyn Clean Energy Hub.

Electrification pilots: programs to transition multi-unit buildings to clean heating (heat pumps).

Targeted pilots address the specific challenges of building electrification, particularly in multi-unit housing, to ensure the transition is affordable for all customer segments.

An electrification pilot is in place for private, affordable multi-unit buildings, offering bill credits to tenants not covered by rent control and residents in low-income co-ops. This pilot is designed to provide insight into mitigating the cost impact of heating electrification for these tenants. Despite over 43,000 heat pump installations, fewer than 1% of adopters were enrolled in the designated heat pump rate as of July 2025, potentially leaving up to $131 million in customer bill savings unrealized between 2026 and 2028 if rates are not reformed.

Consolidated Edison, Inc. (ED) - Marketing Mix: Place

You're looking at how Consolidated Edison, Inc. (ED) gets its essential services-electricity, gas, and steam-to its massive customer base. For a utility, 'Place' is all about the physical network and the geographic footprint it covers. It's a massive, fixed asset play, so distribution strategy means maintaining and modernizing the pipes and wires that are already there.

The core delivery network for Consolidated Edison Company of New York, Inc. (CECONY) covers New York City (all five boroughs) and Westchester County. This area is unique in the industry due to its large population, high load density, and tremendous infrastructure density. Consolidated Edison, Inc. operates what is widely considered one of the world's most complex electric power systems, including the longest underground electric delivery system in the United States. To keep this system running and ready for the future, the Utilities (CECONY and O&R) expect to invest $5,079 million in their energy delivery systems for 2025 alone.

The distribution strategy also heavily relies on its subsidiary, Orange & Rockland Utilities, Inc. (O&R), which serves the surrounding region, specifically southeastern New York and northern New Jersey. This geographic spread means the 'Place' strategy must account for different regulatory and demographic profiles across the entire footprint.

Here's a quick look at the scale of the customer base served by the primary delivery entities as of early 2025 data:

The physical network itself is defined by its density and the specific services offered across its territories. You can't just build a new substation anywhere; the right-of-way and permitting are huge parts of the 'Place' challenge here. The complexity means maintenance and upgrades are highly specialized endeavors.

The distribution reach can be broken down by the specific services offered:

• CECONY electric service covers all of New York City and Westchester County, spanning 660 square miles.
• CECONY gas distribution covers Manhattan, the Bronx, parts of Queens, and Westchester County.
• O&R electric service covers seven counties in New York and northern New Jersey.
• O&R gas service covers southeastern New York.
• Steam delivery is highly concentrated, serving only parts of Manhattan.

Consolidated Edison, Inc. (ED) - Marketing Mix: Promotion

Promotion for Consolidated Edison, Inc. (ED) centers on transparent customer communication, energy affordability initiatives, and driving adoption of clean energy solutions. This involves a mix of digital engagement, direct outreach, and incentive-based marketing to influence customer behavior and manage grid demand.

Digital and community outreach focuses heavily on enhancing customer engagement and transparency regarding service and costs. For instance, Consolidated Edison held its first annual Small Business Summit on Monday, September 29, 2025, designed to connect small businesses with corporate partners and sourcing teams. Furthermore, the company hosted a virtual community resource conference for Winter 2025, covering topics like the Winter Bill Outlook and Payment Assistance options. In 2024, Customer Outreach partnered with social service non-profits, attending events in 145 Designated Community Areas (DACs) and 23 adjacent communities to inform residents, especially those with limited English proficiency, about available assistance services.

Financial assistance programs are a core promotional pillar, particularly the Energy Affordability Program (EAP). Consolidated Edison provided $311 million in total bill discounts to low- and moderate-income (LMI) customers through EAP in 2024. This included approximately $201 million in electric discounts and $40 million in gas discounts for low-income customers that year.

Incentives for clean technologies are heavily promoted to align with New York State's climate goals. The company planned an additional $423 million in customer incentives for 2025. In 2024 alone, over 338,000 energy efficiency program participants leveraged incentives totaling more than $161 million, with $80 million of that benefiting LMI customers. You can see the specific high-value incentives for heat pumps below:

Proactive communication is essential for managing customer expectations around service costs. For instance, the company secured a 3.2% base rate hike for New York City customers, approved in April 2025. For its subsidiary, Orange and Rockland Utilities, Inc. (O&R), a joint proposal for 2025-2027 included an initial electric base rate decrease of $13.1 million in Year 1, followed by increases of $24.8 million and $44.1 million in Years 2 and 3, respectively. The gas rate proposal for O&R suggested initial increases of $3.6 million, $18.0 million, and $16.5 million over the three years. Despite these adjustments, Consolidated Edison, Inc. reaffirmed its 2025 adjusted earnings per share forecast to be in the range of $5.50 to $5.70 per share.

Demand-side management is promoted through programs like Smart Usage Rewards. This program offers an $85 rebate for enrolling an eligible smart thermostat. The program incentivizes customers to temporarily reduce electric or gas usage during peak summer hours, typically between 11 a.m. and 11 p.m. on weekdays.

Key promotional figures related to customer programs are summarized here:

• Energy Affordability Program (EAP) 2024 Electric Discounts: Over $201 million.
• Energy Affordability Program (EAP) 2024 Gas Discounts: Over $40 million.
• Smart Thermostat Enrollment Rebate: $85 per device.
• Total Energy Efficiency Incentives Disbursed in 2024: More than $161 million.
• Planned Customer Incentives for 2025: An additional $423 million.

Consolidated Edison, Inc. (ED) - Marketing Mix: Price

Price for Consolidated Edison, Inc. (ED) is fundamentally dictated by regulated rate structures approved by the New York State Public Service Commission (NYSPSC), which typically involve a two-part structure for customers covering Supply Charges and Delivery Charges.

For its subsidiary, Orange and Rockland Utilities (O&R), the pricing mechanism includes the continuation of the Revenue Decoupling mechanism for both electric and gas service, which separates utility revenue from customer consumption volume. This is a key element in aligning the company's financial health with its service mandate.

The approved O&R rate plan for the initial year of the three-year period, 2025, shows specific base rate adjustments:

This initial year's rate change for O&R electric delivery operations was a net decrease of $\mathbf{\$13.1 \text{ million}}$ against an average rate base of $\mathbf{\$1,293 \text{ million}}$.

The regulatory framework for this O&R rate plan sets the financial parameters for returns:

• Authorized Return on Equity (ROE) is fixed at 9.75%.
• The equity ratio is set at 48%.

Looking at the broader Consolidated Edison, Inc. (ED) financial outlook, management reaffirmed its adjusted earnings per share (EPS) forecast for the full year 2025. The latest guidance reflects confidence in the pricing and operational execution:

• 2025 reaffirmed adjusted EPS range is $5.60 to $5.70 per share.
• This is an upward adjustment from the previous forecast of $5.50 to $5.70 per share.

The pricing strategy, therefore, balances regulated returns with near-term customer impacts, as seen in the O&R electric rate decrease for 2025, while the overall company target remains anchored to the reaffirmed EPS range. The structure allows for recovery of costs through mechanisms like the provision for recovery of cost of purchased power and fuel.