Con Edison Discloses Asbestos-Cost Estimates --------------------------------------------- Published October 03, 2002 Consolidated Edison Inc. reports that at December 31, 2001 it had accrued $132.2 million as its best estimate of its subsidiaries' liability for sites as to which they have received process or notice alleging that hazardous substances generated by them were deposited. Con Edison's utility subsidiaries are permitted under current rate agreements to defer for subsequent recovery through rates certain site investigation and remediation costs with respect to hazardous waste. At December 31, 2001, $62.6 million of such costs had been deferred as regulatory assets. Workers' compensation administrative proceedings have been commenced in which current and former employees claim benefits, alleging disability from exposure to asbestos. At December 31, 2001, Con Edison had accrued a $136.7 million provision for its utility subsidiaries' liability for workers' compensation claims, including those related to asbestos exposure. Of that amount, $62.1 million was deferred as a regulatory asset. Other legal proceedings have commenced, wherein non-employee contractors claim benefits based upon alleged disability from exposure to asbestos. At December 31, 2001, Con Edison of New York had accrued a $4 million provision as its best estimate of the utility subsidiaries' liability for these alleged claims and deferred a like amount as a regulatory asset. Numerous suits have been brought in New York State and Federal courts against Con Edison of New York and many other defendants for death and injuries allegedly caused by exposure to asbestos at various Con Edison of New York premises. Many of the suits have been disposed of without any payment by Con Edison of New York, or for immaterial amounts. The amounts specified in the remaining suits, including the Moran v. Vacarro suit, total billions of dollars, but Con Edison of New York believes that these amounts are greatly exaggerated, as were the claims already disposed of. In 1988, Con Edison of New York was served with a complaint and an amended complaint in an action in the New York State Supreme Court, New York County, in which approximately 188 Con Edison of New York employees and their union alleged that the employees were exposed to dangerous levels of asbestos as a result of alleged intentional conduct of supervisory employees. Each of the employee plaintiffs sought $1 million in punitive damages, $1 million in damages for mental distress, unspecified additional compensatory damages, and to enjoin Con Edison of New York from violating EPA regulations and exposing employees to asbestos without first taking certain safety measures. In 1990, the complaint was amended to add the spouses of 131 plaintiffs as additional plaintiffs and to remove the union as a plaintiff. Each spouse seeks medical monitoring, $1 million for emotional distress and $1 million for punitive damages. In 1995, the court dismissed the claims of the employee plaintiffs, leaving employee spouses as the only plaintiffs. Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of Con Edison's utility subsidiaries and may be present in their facilities and equipment. COMPANY SNAPSHOT Consolidated Edison Inc. (NYSE: ED) 4 Irving Place New York, NY 10003 Phone: 212-460-4600 Fax: 212-982-7816 Web site: http://www.conedison.com Employees : 13,953 Revenue : $ 9,634,000,000 Net Income (Loss) : $ 695,80,000 Assets : $ 16,996,100,000 Liabilities : $ 11,080,200,000 No. Of Asbestos Claims : 131 Estimated Asbestos Liabilities : $ 273,000,000 (For the year ended December 31, 2001) Description: Con Edison Inc. is the holding company of Consolidated Edison Co. of New York, distributes electricity to more than 3.1 million customers in New York City and natural gas to 1.1 million customers. Con Edison also markets retail and wholesale energy, is building a fiber- optic network in its territory, and operates independent power plants. ------------------------------------------------------------------- LitigationDataSource.com