Con Edison Discloses Asbestos-Cost Estimates
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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.

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