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Consolidated Edison Engineering

To deliver safe, reliable energy by leading the clean energy transition to carbon neutrality

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SWOT Analysis

7/2/25

The SWOT analysis reveals ConEd's strong market position and regulatory foundation, but highlights critical infrastructure modernization needs. Legacy systems and skills gaps threaten the clean energy transition mission. The convergence of federal funding, electrification trends, and climate pressures creates a pivotal moment requiring aggressive grid modernization, workforce transformation, and technology adoption to maintain competitive advantage while achieving carbon neutrality goals.

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To deliver safe, reliable energy by leading the clean energy transition to carbon neutrality

Strengths

  • INFRASTRUCTURE: 140+ year proven utility infrastructure serving 10M+ customers
  • REGULATORY: Strong regulatory relationships with predictable rate recovery
  • WORKFORCE: 15K+ skilled union workforce with deep institutional knowledge
  • FINANCIAL: Investment grade credit rating with $4B+ annual capital program
  • LOCATION: Prime NYC market position with high energy demand density

Weaknesses

  • LEGACY: Aging grid infrastructure with 40% of assets over 30 years old
  • COSTS: High operational costs driving 15% above national average rates
  • SPEED: Slow regulatory approval process averaging 18-24 months
  • TALENT: Skills gap in modern tech talent for grid modernization needs
  • DEBT: High debt levels at 58% debt-to-equity ratio limiting flexibility

Opportunities

  • ELECTRIFICATION: EV adoption surge creating 300% demand growth by 2030
  • FEDERAL: $62B Infrastructure Investment and Jobs Act funding available
  • RENEWABLES: Offshore wind commitments creating 9GW capacity by 2035
  • STORAGE: Battery storage market growing 25% annually enabling grid flex
  • DIGITALIZATION: IoT and AI enabling predictive maintenance and efficiency

Threats

  • CLIMATE: Extreme weather events increasing 40% causing outage risks
  • CYBER: Rising cybersecurity threats targeting critical infrastructure
  • COMPETITION: Distributed energy resources bypassing utility grid
  • REGULATORY: Potential rate pressures from affordability concerns
  • SUPPLY: Global supply chain disruptions affecting equipment delivery

Key Priorities

  • MODERNIZE: Accelerate grid modernization leveraging federal infrastructure funding
  • DIGITALIZE: Transform operations with AI and IoT for predictive maintenance
  • RESILIENCE: Build climate-resilient infrastructure against extreme weather
  • TALENT: Recruit tech talent and retrain workforce for digital transformation
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OKR AI Analysis

7/2/25

This SWOT analysis-driven OKR plan positions ConEd for transformational growth through systematic grid modernization, climate resilience, and workforce evolution. The objectives directly address critical infrastructure gaps while capitalizing on federal funding and electrification opportunities. Success requires aggressive execution across technology deployment, talent acquisition, and cultural transformation to achieve the carbon-neutral mission while maintaining reliability excellence.

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To deliver safe, reliable energy by leading the clean energy transition to carbon neutrality

MODERNIZE GRID

Transform aging infrastructure into intelligent grid platform

  • DEPLOYMENT: Install 500K smart meters achieving 90% coverage by Q4 2025
  • AUTOMATION: Deploy AI-driven grid management reducing outage duration 40%
  • SENSORS: Install 10K IoT sensors enabling real-time asset monitoring
  • INTEGRATION: Launch unified grid operations center consolidating 5 facilities
BUILD RESILIENCE

Create climate-proof infrastructure for extreme weather

  • HARDENING: Complete underground cable installation for 200 flood-prone areas
  • BACKUP: Deploy 50MW battery storage systems for critical substations
  • PREDICTION: Implement weather-AI models reducing storm impact 35%
  • RESPONSE: Achieve sub-2-hour average restoration time for weather events
SCALE CLEAN

Accelerate renewable integration and electrification

  • RENEWABLE: Connect 500MW offshore wind capacity to transmission grid
  • ELECTRIC: Install 2K EV charging stations across service territory
  • EFFICIENCY: Deploy demand response programs reducing peak load 300MW
  • CARBON: Achieve 40% emission reduction from 2005 baseline levels
TRANSFORM TALENT

Build digital-native workforce for energy transition

  • RECRUIT: Hire 200 engineers with AI, IoT, and cybersecurity expertise
  • UPSKILL: Train 3K existing employees in digital and clean energy skills
  • CULTURE: Achieve 85% employee engagement in innovation initiatives
  • DIVERSITY: Reach 40% diverse representation in technical leadership roles
METRICS
  • Grid modernization: 85% smart infrastructure deployment
  • System reliability: 99.98% uptime target
  • Carbon reduction: 40% emissions below 2005 baseline
VALUES
  • Safety First
  • Customer Focus
  • Environmental Stewardship
  • Innovation
  • Integrity
  • Community Partnership
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Align the learnings

Consolidated Edison Engineering Retrospective

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To deliver safe, reliable energy by leading the clean energy transition to carbon neutrality

What Went Well

  • REVENUE: Achieved $3.6B quarterly revenue, 4% growth year-over-year
  • RELIABILITY: Maintained 99.97% system reliability exceeding targets
  • CAPEX: Deployed $1.1B in grid investments on schedule and budget
  • CLEAN: Added 150MW renewable capacity ahead of decarbonization goals

Not So Well

  • COSTS: O&M expenses increased 6% due to inflation and labor pressures
  • OUTAGES: Storm-related outages affected 180K customers for 8+ hours
  • DIGITAL: Smart meter deployment behind schedule at 65% completion
  • CUSTOMER: Customer satisfaction scores declined 3% due to rate increases

Learnings

  • WEATHER: Climate resilience investments critical for service reliability
  • AUTOMATION: Manual processes driving higher costs and slower response
  • COMMUNICATION: Better customer communication needed during rate changes
  • SKILLS: Technology skills gap limiting digital transformation progress

Action Items

  • ACCELERATE: Fast-track smart grid deployment to reach 90% by year-end
  • AUTOMATE: Implement AI-driven outage management and restoration systems
  • TRAIN: Launch comprehensive digital skills training for 5K+ employees
  • ENGAGE: Develop proactive customer communication strategy for transparency
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AI Strategy Analysis

7/2/25

ConEd possesses strong AI foundation assets including extensive data and cloud partnerships, but lacks critical AI talent and suffers from legacy system constraints. The utility must rapidly scale AI capabilities to optimize grid operations, predict failures, and enhance customer experience. Success requires aggressive talent acquisition, cultural transformation, and systematic integration of AI across all operations while maintaining security and regulatory compliance standards.

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To deliver safe, reliable energy by leading the clean energy transition to carbon neutrality

Strengths

  • DATA: Massive IoT sensor network generating 50TB+ operational data daily
  • PARTNERSHIPS: Microsoft Azure cloud infrastructure for scalable AI deployment
  • PILOTS: Active AI projects in predictive maintenance and demand forecasting
  • BUDGET: $200M+ annual IT budget available for AI transformation initiatives
  • COMPLIANCE: Strong data governance frameworks meeting utility regulations

Weaknesses

  • TALENT: Limited AI/ML expertise with only 12 data scientists currently
  • SYSTEMS: Legacy SCADA systems requiring expensive integration work
  • CULTURE: Conservative utility culture resistant to AI-driven decisions
  • SPEED: Slow procurement processes delaying AI vendor partnerships
  • INTEROPERABILITY: Siloed data systems hindering comprehensive AI models

Opportunities

  • OPTIMIZATION: AI-driven grid optimization could reduce costs by 15-20%
  • PREDICTIVE: Machine learning preventing 60% of equipment failures
  • CUSTOMER: AI chatbots and analytics improving customer satisfaction 25%
  • RENEWABLE: AI forecasting optimizing renewable energy integration
  • AUTOMATION: Intelligent automation reducing manual processes by 40%

Threats

  • SECURITY: AI systems creating new attack vectors for cybercriminals
  • REGULATION: Potential AI governance requirements limiting deployment
  • BIAS: Algorithm bias affecting service equity across communities
  • DEPENDENCY: Over-reliance on AI systems creating operational vulnerabilities
  • COMPETITION: Tech companies entering energy with superior AI capabilities

Key Priorities

  • PLATFORM: Build enterprise AI platform integrating all operational data
  • TALENT: Aggressively recruit AI talent and upskill existing workforce
  • PILOTS: Scale successful AI pilots across all business operations
  • GOVERNANCE: Establish AI ethics and risk management frameworks