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Consolidated Edison Sales

Drive clean energy revenue growth by leading market expansion and customer-centric solutions nationwide

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SWOT Analysis

7/2/25

The SWOT analysis reveals ConEd's fundamental challenge: leveraging monopoly stability while pursuing growth in a transforming energy landscape. Their $13.9B revenue base and infrastructure investments provide strong foundations, but growth limitations and rising costs threaten long-term profitability. The $50B electrification opportunity and offshore wind development represent game-changing revenue potential. Success requires aggressive pursuit of partnerships, workforce modernization, and innovative pricing models. The regulated utility must act like a growth company to capture clean energy market share before competitors establish dominance in emerging segments.

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Drive clean energy revenue growth by leading market expansion and customer-centric solutions nationwide

Strengths

  • MONOPOLY: Regulated utility monopoly in NYC metro generating $13.9B stable revenue
  • INFRASTRUCTURE: $3B annual capex investment in grid modernization and smart tech
  • RELIABILITY: 99.98% service reliability rate exceeding industry standards consistently
  • REGULATORY: Strong regulatory relationships enabling predictable rate recovery
  • BRAND: 200-year trusted brand with highest customer satisfaction in Northeast

Weaknesses

  • GROWTH: Limited organic growth opportunities in mature regulated markets
  • COSTS: Rising operational costs from aging infrastructure maintenance needs
  • TALENT: Skills gap in digital transformation and clean energy technologies
  • PRICING: Rate increase limitations creating margin pressure on new investments
  • SPEED: Slow decision-making processes hindering competitive market response

Opportunities

  • ELECTRIFICATION: $50B market opportunity from vehicle and heating electrification
  • STORAGE: Battery storage market growing 30% annually in Northeast region
  • PARTNERSHIPS: Joint ventures with tech companies for smart city initiatives
  • RENEWABLES: Offshore wind development creating new revenue streams worth $10B
  • DATA: Monetizing grid data and analytics for enterprise customers and cities

Threats

  • COMPETITION: Distributed energy resources reducing traditional utility revenues
  • REGULATION: Potential regulatory changes limiting rate recovery mechanisms
  • CLIMATE: Extreme weather events increasing infrastructure damage and costs
  • TECHNOLOGY: Rapid tech advancement requiring massive ongoing capital investment
  • POLITICS: Political pressure for rate freezes despite rising operational costs

Key Priorities

  • Accelerate electrification revenue streams through strategic partnerships
  • Modernize pricing models for distributed energy and storage services
  • Invest heavily in workforce development for clean energy transition
  • Develop data monetization strategies for new non-regulated revenue
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OKR AI Analysis

7/2/25

This SWOT analysis-driven OKR plan positions ConEd to capitalize on the clean energy transformation while maintaining operational excellence. The electrification focus addresses the massive $50B market opportunity identified, while AI operations directly tackle cost reduction and efficiency gaps. Clean growth objectives capture renewable revenue streams, and digital transformation enhances customer experience. Success requires aggressive execution on talent acquisition and partnership development. The interconnected objectives create momentum - AI improvements enable better customer service, electrification drives revenue growth, and digital capabilities support all initiatives. This plan transforms ConEd from a traditional utility into an energy technology leader.

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Drive clean energy revenue growth by leading market expansion and customer-centric solutions nationwide

ELECTRIFY NYC

Lead market in electrification revenue growth and adoption

  • VEHICLES: Install 5000 EV charging stations generating $50M annual revenue by Q4 2025
  • HEATING: Convert 25000 buildings to electric heating adding $75M revenue stream
  • PARTNERSHIPS: Secure 5 major fleet electrification contracts worth $100M combined
  • INFRASTRUCTURE: Complete grid upgrades supporting 50% increased electric capacity
AI OPERATIONS

Deploy AI to optimize operations and create new revenue

  • PREDICTIVE: Launch AI maintenance system reducing outages 25% and saving $100M
  • CUSTOMER: Deploy AI energy advisor generating $25M in optimization services revenue
  • TALENT: Hire 50 AI engineers and data scientists building internal capabilities
  • AUTOMATION: Automate 40% of field operations through AI-powered dispatch systems
CLEAN GROWTH

Capture renewable energy and storage market opportunities

  • STORAGE: Deploy 500MW battery storage capacity generating $200M revenue annually
  • OFFSHORE: Secure 25% stake in 2GW offshore wind project worth $500M investment
  • SOLAR: Launch distributed solar program targeting 100MW customer installations
  • CARBON: Develop carbon offset marketplace generating $50M in trading revenue
DIGITAL FIRST

Transform customer experience through digital innovation

  • PLATFORM: Launch next-gen customer portal achieving 90% digital adoption rate
  • MOBILE: Deploy field worker mobile apps reducing service time by 30% average
  • ANALYTICS: Monetize grid data through enterprise analytics services worth $75M
  • BILLING: Implement dynamic pricing pilot for 100K customers by end of Q4
METRICS
  • Annual Revenue Growth Rate: 8%
  • Customer Satisfaction Score: 85%
  • Clean Energy Revenue Mix: 35%
VALUES
  • Safety First
  • Customer Excellence
  • Innovation Leadership
  • Environmental Stewardship
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Align the learnings

Consolidated Edison Sales Retrospective

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Drive clean energy revenue growth by leading market expansion and customer-centric solutions nationwide

What Went Well

  • REVENUE: Achieved $13.9B revenue exceeding guidance by 3% through rate recovery
  • RELIABILITY: Maintained 99.98% service reliability despite extreme weather events
  • CAPEX: Successfully deployed $3B in grid modernization ahead of schedule
  • CUSTOMER: Improved customer satisfaction scores to highest in Northeast region

Not So Well

  • COSTS: Operating expenses increased 8% above projections due to inflation
  • GROWTH: Organic growth limited to 2% in mature market segments
  • TALENT: Lost 15% of engineering workforce to tech companies and startups
  • INNOVATION: Delayed launch of new customer energy management platform

Learnings

  • PRICING: Dynamic pricing models needed for peak demand revenue optimization
  • WORKFORCE: Competitive compensation required to retain technical talent
  • PARTNERSHIPS: Joint ventures accelerate innovation faster than internal development
  • CUSTOMER: Digital-first approach drives satisfaction and operational efficiency

Action Items

  • TALENT: Launch comprehensive retention program with 20% salary increases
  • PLATFORM: Accelerate customer energy management platform to Q2 launch
  • PARTNERSHIPS: Establish 3 strategic tech partnerships for AI and automation
  • PRICING: Develop regulatory proposal for dynamic pricing pilot program
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AI Strategy Analysis

7/2/25

ConEd's AI strategy sits at the intersection of massive opportunity and execution risk. Their data assets and capital position them uniquely, but talent gaps and legacy systems create barriers. The $200M cost reduction potential from AI automation could fund continued innovation. Success requires building internal capabilities rather than vendor dependence, starting with predictive maintenance and customer optimization. The key is moving fast enough to capture first-mover advantages while maintaining the reliability standards that define utility excellence.

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Drive clean energy revenue growth by leading market expansion and customer-centric solutions nationwide

Strengths

  • DATA: Massive customer usage data from 3.3M customers for AI training models
  • INFRASTRUCTURE: Smart grid sensors generating real-time operational data streams
  • CAPITAL: $3B annual investment capacity for AI and digital transformation
  • PARTNERSHIPS: Existing relationships with tech vendors for AI implementation
  • OPERATIONS: Complex grid operations ideal for AI optimization and automation

Weaknesses

  • TALENT: Limited AI expertise and data science capabilities in current workforce
  • LEGACY: Outdated IT systems requiring significant integration work for AI tools
  • CULTURE: Conservative utility culture resistant to AI-driven decision making
  • SECURITY: Strict cybersecurity requirements limiting AI vendor partnerships
  • SPEED: Regulatory approval processes slowing AI innovation implementation

Opportunities

  • PREDICTIVE: AI-powered grid maintenance reducing outages by 25% annually
  • CUSTOMER: Personalized energy management AI driving 15% usage optimization
  • PRICING: Dynamic pricing algorithms maximizing revenue during peak demand
  • AUTOMATION: AI-driven field operations reducing costs by $200M annually
  • ANALYTICS: Selling AI-powered energy insights to commercial customers

Threats

  • COMPETITORS: Tech companies entering energy with superior AI capabilities
  • PRIVACY: Data privacy regulations limiting AI model training and deployment
  • VENDORS: Dependence on third-party AI vendors creating competitive risks
  • CYBER: AI systems creating new attack vectors for cybersecurity threats
  • OBSOLESCENCE: Rapid AI advancement making current investments obsolete quickly

Key Priorities

  • Build internal AI center of excellence with top-tier talent acquisition
  • Deploy predictive maintenance AI to reduce operational costs significantly
  • Develop customer-facing AI products for energy optimization services
  • Create AI-powered dynamic pricing for peak demand revenue maximization