amounts outstanding at December 31, 2003, 2002 and  2001 and the average daily balance for 2003, 2002 and 2001  for Con Edison, Con Edison of New York and O&R were  as follows: External borrowings are a source of liquidity that could be affected by changes in credit ratings, financial performance and capital markets. For information about the Companies’ credit rating and certain financial ratios, see “Capital Resources,” below. In January 2004, Con Edison of New York issued $245.3 mil- lion of its variable rate, tax-exempt Facilities Revenue Bonds, Series 2004A and B, the proceeds of which are being used to redeem in advance of maturity its fixed rate, tax-exempt Facilities Revenue Bonds, Series 1993A, B and C.  In February 2004, Con Edison of New York issued $200 million of 4.7 percent 10-year Series 2004A Debentures and $200 million of 5.7 percent 30-year Series 2004B Debentures, the proceeds of which were used to redeem in advance of maturity the company's $150 million 7.125 percent Series 1994A Debentures and for general corporate purposes. The following table shows changes in assets and liabilities at December 31, 2003, compared with December 31, 2002, that have impacted the Companies’ consolidated statements of cash flows. The changes in these balances are utilized to rec- oncile income to cash flow from operations. With respect to regulatory liabilities, see Note B to the financial statements. Changes in Assets and Liabilities Capital Resources Con Edison is a holding company that operates only through its subsidiaries and has no material assets other than its inter- ests in its subsidiaries. Con Edison expects to finance its capi- tal requirements primarily from dividends it receives from its subsidiaries and through the sale of securities, including com- mercial paper. In addition, Con Edison’s ability to make pay- ments on its external borrowings and dividends on its common shares is dependent on its receipt of dividends from its sub- Accounts receivable – customers, less allowance for uncol- lectible accounts increased due primarily to higher electric and gas sales revenue for the Utilities and higher electric purchased power and gas unit costs (which are recoverable from cus- tomers) for Con Edison of New York during December 2003 compared with December 2002. Energy sales and purchased power costs are discussed below under “Results of Operations.” Gas in storage increased at December 31, 2003 as compared with year-end 2002 due primarily to higher unit costs and vol- umes of gas in storage at December 31, 2003 as compared with year-end 2002. Prepaid pension costs for Con Edison and Con Edison of New York increased at December 31, 2003 as compared with year- end 2002 due to the recognition of the current period’s pen- sion credits.  Accounts payable for Con Edison and Con Edison of New York decreased at December 31, 2003 as compared with year-end 2002 due primarily to a higher level of accrued construction commitments at year-end 2002. This decrease was offset in part by increased electric purchased power costs for Con Edison of New York at December 31, 2003 as compared with year-end 2002, reflecting higher unit costs. Superfund and other environmental liabilities for the Companies increased at December 31, 2003 as compared with year-end 2002 reflecting increased estimates for investigation, removal and remediation costs. Deferred income taxes – liability increased at December 31, 2003 as compared with year-end 2002 due primarily to accel- erating tax deductions for capitalized indirect costs. Transmission congestion contracts (See “Regulatory Assets and Liabilities” in Note B to the financial statements) increased at December 31, 2003 compared with year-end 2002 reflecting proceeds from the sale through the New York Independent System Operator (NYISO) of transmission rights on Con Edison of New York’s transmission system. These proceeds are being retained for customer benefit. Con Edison Annual Report 2003 29 Con Edison Con Edison of New York O&R 2003 vs. 2002 2003 vs. 2002 2003 vs. 2002 (Millions of Dollars) Variance Variance Variance Accounts receivable –  customers, less allowance  for uncollectible accounts $107 $ 90 $ 3 Gas in storage 69 52 13 Prepaid pension costs 233 233 - Accounts payable (20) (30) 11 Superfund and other  environmental liabilities 50 45 5 Deferred income taxes – liability 391 333 44 Regulatory liabilities – transmission congestion contracts 159 159 - (Millions of 2003 2002 2001 Dollars,except Outstanding Outstanding Outstanding Weighted at Daily at Daily at Daily Average Yield) December 31 average December 31 average December 31 average Con Edison $156 $326 $151 $256 $176 $ 242 Con Edison  of New York $ 99 $179 $ - $157 $ - $164 O&R $ 15 $ 33 $ 1 $ 1 $ 17 $ 28 Weighted  average yield 1.0% 1.2% 1.2% 1.7% 2.0% 4.6%