Consolidated Edison Inc. (ED) announced plans to spend more than $7 billion in upgrading its electricity-delivery system the next five years, including $1.5 billion in 2009, as the New York City-based utility replaces some 2,000 miles of cable this year.
Some critics have long raised reliability concerns about Con Ed, noting in particular a Manhattan steampipe explosion in 2007 that injured several dozen people and blackouts in recent years. The company has said many service troubles have been due to issues outside its control, such as the weather.
The New York Public Service Commission in September told Con Ed it had to pay $9 million for failing to meet reliability targets in 2007.
The company said Wednesday it will spend $905 million on replacing cable, along with transformer and network-protection equipment. Another $222 million is set to go toward transmission improvements and $347 million on new substations.
"Despite the economic downturn, we continue to invest in our electric-delivery system to maintain reliable service for the 9 million people we serve," said President and Chief Operating Officer Louis L. Rana. Many utilities have been cutting back capital-spending plans amid the credit crunch curtailing debt financing and falling electricity demand.
The company is expecting peak summer electricity usage - this year to top the record set in August 2006.
Con Ed shares closed Tuesday at $35.23 and were inactive premarket.