Net Periodic Benefit Cost Funded Status The components of the Companies’ net periodic benefit costs for 2003, 2002 and 2001 were as follows:  The funded status at December 31, 2003, 2002 and 2001 was as follows: *Relates to increases in Con Edison of New York’s pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program. * Being amortized over approximately 15 years. Con Edison Con Edison of New York O&R (Millions of Dollars) 2003 2002 2001 2003 2002 2001 2003 2002 2001 Service cost –  including administrative expenses $ 102 $ 94 $ 95 $ 95 $ 88 $ 89 $ 7 $  6 $ 6 Interest cost on projected benefit obligation 420 440 425 393 412 398 27 28 27 Expected return on plan assets (654) (685) (657) (631) (660) (632) (23) (25) (25) Amortization of net actuarial (gain)/loss (95) (173) (193) (104) (179) (198) 9 6 5 Amortization of prior service costs 15 14 14 14 14 13 1 - 1 Amortization of transition (asset)/obligation - (1) 3 - (1) 3 - - - Net Periodic Benefit Cost $ (212) $ (311) $ (313) $ (233) $ (326) $ (327) $  21 $ 15 $ 14 Amortization of regulatory asset* 4 4 4 4 4 4 - - - Total Periodic Benefit Cost $ (208) $ (307) $ (309) $ (229) $ (322) $ (323) $ 21 $ 15 $ 14 Cost capitalized/deferred (51) (51) (61) (65) (64) (72) 14 13 11 Cost charged to operating expenses $ (157) $ (256)  $ (248) $ (164) $ (258) $ (251) $ 7 $ 2 $ 3 Con Edison Con Edison of New York O&R (Millions of Dollars) 2003 2002 2001 2003 2002 2001 2003 2002 2001 Change In Projected Benefit Obligation Projected benefit obligation at beginning of year $6,434 $5,904 $5,630 $6,030 $5,530 $5,272 $ 404 $ 374 $ 358 Service cost – excluding administrative expenses 101 92 94 94 86 88 7 6 6 Interest cost on projected benefit obligation 420 440 425 393 412 398 27 28 27 Plan amendments - - 10 - - 9 - - 1 Net actuarial loss 54 300 30 43 283 28 11 17 2  Benefits paid (314) (302) (285) (290) (281) (265) (24) (21) (20) Projected Benefit Obligation at End of Year $6,695 $6,434 $5,904 $6,270 $6,030 $5,530 $ 425 $ 404 $ 374 Change In Plan Assets Fair value of plan assets at beginning of year $5,760 $6,633 $7,347 $5,563 $6,397 $7,077 $ 197 $ 236 $ 270 Actual return on plan assets 1,261 (552) (407) 1,218 (533) (392) 43 (19) (15) Employer contributions 22 4 4 2 2 2 20 2 2 Benefits paid (313) (302) (285) (290) (281) (265) (23) (21) (20)  Administrative expenses (20) (23) (26) (19) (22) (25) (1) (1) (1) Fair Value of Plan Assets at End of Year $6,710 $5,760 $6,633 $6,474 $5,563 $6,397 $ 236 $ 197 $ 236 Funded status $6,715 $ (674)  $ 729 $ 204 $ (467) $ 867 $ (189) $ (207) $(138) Unrecognized net loss/(gain) 1,108 1,548 (184) 981 1,403 (273) 127 145 89 Unrecognized prior service costs 67 81 96 63 77 91 4 4 5 Unrecognized net transition (asset) at January 1, 1987* - - (1) - - (1) - - - Net Prepaid Benefit Cost $1,190 $ 955 $ 640 $1,248 $1,013 $ 684 $ (58) $ (58) $ (44) Accumulated Benefit Obligation $5,998 $5,656 $5,385 $5,591 $5,269 $5,021 $0407 $0387 $ 364 68 Con Edison Annual Report 2003