CONSOLIDATED CASH FLOWS Year ended December 31 (millions of dollars) 2001 2000 1999 Cash Generated from Operations Net income from continuing operations 737 729 552 Depreciation 793 737 696 Change in net unrealized position on energy trading contracts (Note 12) 26 (37) – Future income taxes 120 91 (108) Gain on sale of assets – (37) (91) Power purchase arrangement payment (110) (212) – Other (52) 12 (8) Funds generated from continuing operations 1,514 1,283 1,041 Decrease/(increase) in operating working capital (Note 16) 170 (416) 237 Net cash provided by continuing operating activities 1,684 867 1,278 Net cash (used in)/provided by discontinued operating activities (659) 853 18 1,025 1,720 1,296 Investing Activities Capital expenditures (492) (812) (1,824) Acquisitions, net of cash acquired (475) (111) (56) Disposition of assets 1,170 2,233 658 Deferred amounts and other 30 (31) 42 Net cash provided by/(used in) investing activities 233 1,279 (1,180) Financing Activities Dividends and preferred securities charges (517) (536) (664) Notes payable issued/(repaid), net 186 (25) (228) Long-term debt issued – – 1,204 Reduction of long-term debt (793) (2,139) (699) Non-recourse debt of joint ventures issued 23 404 161 Reduction of non-recourse debt of joint ventures  (132) (282) (148) Partnership units of joint ventures issued 59 – 312 Preferred securities redeemed (318) – – Preferred shares issued – – 194 Preferred shares redeemed – (328) (396) Common shares issued 24 5 204 Net cash used in financing activities (1,468) (2,901) (60) (Decrease)/Increase in Cash and Short-Term Investments (210) 98 56 Cash and Short-Term Investments Beginning of year 509 411 355 Cash and Short-Term Investments End of year 299 509 411 The accompanying notes to the consolidated financial statements are an integral part of these statements. 2001 ANNUAL REPORT  41