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Consolidated Edison Product

To deliver reliable clean energy by transforming urban energy systems for a carbon-neutral future

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SWOT Analysis

7/2/25

ConEd's SWOT analysis reveals a utility at an inflection point. The company's monopolistic position and financial strength provide a solid foundation, but aging infrastructure and regulatory constraints pose significant challenges. The massive electrification opportunity driven by NYC's climate laws represents a generational growth catalyst. However, increasing climate threats and cybersecurity risks demand immediate attention. Success hinges on accelerating infrastructure modernization while capturing the building electrification wave. The company must transform from a traditional utility to a digital energy platform to achieve its carbon-neutral vision and maintain competitive advantage in the evolving energy landscape.

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To deliver reliable clean energy by transforming urban energy systems for a carbon-neutral future

Strengths

  • MONOPOLY: Regulated utility with guaranteed revenue streams and stable
  • INFRASTRUCTURE: $1.2B annual investment in grid modernization and smart
  • LOCATION: Serves 10M+ customers in high-density NYC market with premium
  • EXPERIENCE: 195+ years operating complex urban energy infrastructure
  • FINANCIAL: Strong credit rating AA- enables low-cost capital access

Weaknesses

  • LEGACY: Aging infrastructure requires $15B+ investment over next decade
  • REGULATION: Slow regulatory approval process delays innovation by 2-3
  • COSTS: High operating costs due to underground NYC infrastructure make
  • TALENT: Difficulty attracting tech talent in competitive NYC market for
  • COMPLEXITY: Managing 65,000 miles of cable in dense urban environment

Opportunities

  • ELECTRIFICATION: NYC Local Law 97 drives $10B+ building upgrade market
  • STORAGE: Battery storage market growing 30% annually enables grid flex
  • OFFSHORE: NY state 9GW offshore wind by 2035 creates transmission opp
  • EV: 400,000+ EVs expected by 2030 creates new revenue streams from
  • FEDERAL: $1.2T infrastructure bill provides funding for grid upgrades

Threats

  • CLIMATE: Extreme weather events increasing 40% threaten grid reliability
  • CYBER: Nation-state attacks on energy infrastructure growing 70% annual
  • COMPETITION: Distributed energy and microgrids threaten utility model
  • REGULATION: Aggressive decarbonization mandates may outpace technology
  • COSTS: Interest rate increases threaten $15B+ capital investment plans

Key Priorities

  • MODERNIZE: Accelerate $1.2B annual grid infrastructure investments for
  • DIGITIZE: Deploy AI-powered grid management to improve reliability by
  • ELECTRIFY: Capture $10B+ building electrification opportunity through
  • SECURE: Implement comprehensive cybersecurity to protect 10M+ customers
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OKR AI Analysis

7/2/25

This SWOT analysis-driven OKR plan positions ConEd for transformational growth by addressing core infrastructure, market opportunity, security, and talent challenges simultaneously. The grid modernization objective tackles the fundamental weakness of aging infrastructure while enabling AI-powered optimization. Electrifying NYC capitalizes on the massive regulatory-driven market opportunity. Security investments protect against growing cyber and climate threats. The talent revolution ensures ConEd has capabilities to execute this ambitious transformation. Success requires parallel execution across all four objectives to achieve the carbon-neutral vision while maintaining the reliability customers expect from this essential utility service.

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To deliver reliable clean energy by transforming urban energy systems for a carbon-neutral future

MODERNIZE GRID

Transform aging infrastructure into smart resilient network

  • INFRASTRUCTURE: Complete $400M grid hardening projects by Q3 targeting 500K+ customers
  • AUTOMATION: Deploy AI-powered outage prediction reducing restoration time by 40% citywide
  • METERS: Install 800K smart meters across Brooklyn and Queens by Q3 enabling real-time data
  • RELIABILITY: Achieve 99.95% system reliability through predictive maintenance programs
ELECTRIFY NYC

Capture building electrification market opportunity growth

  • BUILDINGS: Convert 2,000+ buildings to electric heating capturing $200M revenue opportunity
  • INCENTIVES: Launch $50M customer electrification rebate program driving 25% adoption boost
  • PARTNERSHIPS: Sign 10+ strategic partnerships with real estate developers for new projects
  • CAPACITY: Add 300MW of grid capacity in Manhattan to support electrification demand surge
SECURE FUTURE

Protect critical infrastructure from evolving threats

  • CYBER: Implement zero-trust security architecture across all operational technology systems
  • RESILIENCE: Complete climate adaptation upgrades for 50+ critical substations by Q3
  • MONITORING: Deploy AI-powered threat detection reducing security incidents by 60% annually
  • COMPLIANCE: Achieve 100% compliance with new federal cybersecurity standards ahead of deadline
TALENT REVOLUTION

Build workforce capabilities for energy transformation

  • HIRING: Recruit 75+ engineers and data scientists for grid modernization and AI initiatives
  • TRAINING: Upskill 500+ existing employees in digital technologies and clean energy systems
  • RETENTION: Achieve 90%+ retention rate for critical technical roles through enhanced benefits
  • DIVERSITY: Increase technical workforce diversity to 40% women and underrepresented groups
METRICS
  • Clean Energy Portfolio: 70% by 2030, 100% by 2040
  • System Reliability: 99.95% uptime target
  • Customer Satisfaction: NPS score of 65+
VALUES
  • Safety First - Protecting our customers, communities, and employees
  • Reliability - Delivering consistent power when customers need it most
  • Innovation - Leading the clean energy transformation
  • Community - Serving New York with integrity and accountability
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Align the learnings

Consolidated Edison Product Retrospective

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To deliver reliable clean energy by transforming urban energy systems for a carbon-neutral future

What Went Well

  • REVENUE: Achieved $3.6B quarterly revenue, up 4.2% year-over-year from
  • INVESTMENTS: Completed $312M in grid modernization projects ahead of
  • RELIABILITY: Improved system reliability with 15% fewer outages versus
  • CLEAN: Added 200MW of renewable capacity through offshore wind contracts

Not So Well

  • COSTS: Operating expenses increased 6.8% due to inflation and labor
  • STORMS: Three major weather events caused $45M in restoration costs ab
  • REGULATORY: Delayed approval for rate increases impacted margin growth
  • TECHNOLOGY: Smart meter deployment behind schedule by 6 months across

Learnings

  • RESILIENCE: Climate adaptation investments are critical for maintaining
  • AUTOMATION: Grid automation reduces storm restoration time by 30% wher
  • ENGAGEMENT: Proactive customer communication during outages improves
  • PARTNERSHIP: Vendor partnerships accelerate technology deployment tim

Action Items

  • ACCELERATE: Speed up smart meter rollout to complete 2M installations
  • HEDGE: Implement better cost hedging strategies for volatile commodity
  • AUTOMATION: Deploy AI-powered outage prediction to reduce restoration
  • WORKFORCE: Hire 200+ technicians to support infrastructure upgrade pace
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AI Strategy Analysis

7/2/25

ConEd's AI strategy reveals significant untapped potential within a data-rich environment. The utility's massive smart meter network and customer base provide ideal conditions for AI implementation, yet cultural and regulatory constraints limit progress. Predictive maintenance and grid optimization represent immediate value creation opportunities that could deliver substantial cost savings and reliability improvements. However, the talent gap and legacy infrastructure pose real barriers to rapid deployment. Strategic partnerships and focused recruitment are essential to compete with tech-enabled energy companies entering the market.

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To deliver reliable clean energy by transforming urban energy systems for a carbon-neutral future

Strengths

  • DATA: 10M+ smart meters generate massive data for AI-powered insights
  • SCALE: Large customer base provides robust training datasets for AI mod
  • INFRASTRUCTURE: Existing IT systems can integrate AI for grid optimizat
  • PARTNERSHIPS: Collaborations with IBM, Microsoft enable AI capabilities
  • INVESTMENT: $200M+ annual IT budget supports AI infrastructure buildo

Weaknesses

  • TALENT: Limited AI expertise in traditional utility workforce requires
  • LEGACY: Outdated systems slow AI implementation and data integration
  • CULTURE: Conservative utility culture resists rapid AI adoption and in
  • SECURITY: Strict cybersecurity requirements limit AI experimentation
  • REGULATION: Regulatory oversight slows AI deployment by 12-18 months

Opportunities

  • PREDICTIVE: AI-powered predictive maintenance can reduce outages by 25%
  • OPTIMIZATION: Grid AI optimization can increase renewable integration
  • CUSTOMER: AI chatbots and personalization improve customer satisfaction
  • FORECASTING: AI demand forecasting reduces energy costs by 15-20% ann
  • AUTOMATION: AI-driven grid automation enables real-time load balancing

Threats

  • COMPETITION: Tech companies entering energy with superior AI capabilit
  • SECURITY: AI systems create new attack vectors for cyber threats agai
  • BIAS: AI bias in energy allocation could create regulatory compliance
  • DEPENDENCE: Over-reliance on AI without human oversight risks system
  • OBSOLESCENCE: Rapidly evolving AI technology may outpace utility adopt

Key Priorities

  • PLATFORM: Build AI-powered grid management platform for real-time opt
  • TALENT: Recruit 50+ AI engineers and data scientists within 18 months
  • PARTNERSHIPS: Expand AI partnerships with leading tech companies for
  • SECURITY: Implement AI-specific cybersecurity framework to protect cr