Communications) builds and operates fiber optic networks to provide telecommunications services. The company’s proper- ties (the capitalized cost of which at December 31, 2003 amounted to $30 million, net of the impairment charge  discussed above and in Note H to the financial statements) include network facilities and nearly 400 miles of fiber optic cable that has been installed in the New York City metropolitan area primarily through Con Edison of New York’s underground conduits and other rights of way. Con Edison is evaluating strategic alternatives for its telecommunications business.  Con Edison anticipates investing $59 million in its unregulated businesses over the next two years and will focus on  maximizing the value of their existing assets. See “Capital Requirements” and “Capital Resources,” below. Con Edison’s earnings per share in 2003 were $2.39  ($2.38 on a diluted basis). Earnings per share in 2002  and 2001 were $3.03 ($3.02 on a diluted basis) and $3.22  ($3.21 on a diluted basis). Earnings per share for 2003 and 2002, before the cumulative effect of changes in accounting principles of $3 million  and $(22) million after tax, respectively, were $2.37 ($2.36  on a diluted basis) and $3.14 ($3.13 on a diluted basis),  respectively.  Earnings for the years ended December 31, 2003, 2002 and 2001 were as follows: (Millions of Dollars) 2003 2002 2001 Con Edison of New York $591 $605 $649 O&R 45 45 40 Con Edison Communications (108)(b) (22) (12)  Con Edison Development (9)(c) (4)(d) 21 Con Edison Energy 1 2(e) 5 Con Edison Solutions 19 22 (2) Other(a) (11) (2) (19) Con Edison $528 $646 $682 (a) Represents inter-company and parent company accounting including interest expense  on debt, non-operating income tax expense and goodwill amortization in 2001.  See Note L to the financial statements.  (b) Includes a charge for the impairment of unregulated telecommunications assets in  accordance with SFAS No. 144 totaling $84 million after tax. See Note H to the  financial statements. (c) Includes a charge for the impairment of two unregulated generating assets totaling  $10 million after tax. In addition, a benefit for the cumulative effect of changes in accounting principles for mark-to-market gains related to power sales contracts at certain generating plants, partially offset by the impact of the financial statement consolidation of the  Newington plant totaling $3 million after tax. See Note H to the financial statements. (d) Includes a charge for the cumulative effect of a change in accounting principle for goodwill  impairment of certain unregulated generating assets totaling $20 million after tax. See Note L to the financial statements.  (e) Includes a charge for the cumulative effect of a change in accounting principle for the  rescission of Emerging Issues Task Force (EITF) Issue No. 98-10 totaling $2 million after-tax. See Note P to the financial statements. Con Edison’s earnings in 2003 were $118 million lower than in 2002, reflecting the following factors (after tax, in millions): Con Edison’s earnings in 2002 were $36 million lower than in 2001, reflecting the following factors (after tax, in millions): See “Results of Operations” below for further discussion and analysis of results of operations. Con Edison Annual Report 2003 23 Results of Operations - Summary Con Edison Communications, LLC (Con Edison Con Edison of New York: Con Edison of New York: Impact of weather in 2003  on net revenues versus 2002 (estimated) $ (6) Sales, normalized for weather (estimated) 34 Lower operating organizational expense 25 Regulatory accounting/amortizations 14 Reduced net credit for pensions & other  postretirement benefits (54) Higher depreciation and property tax expense (27) Settlement regarding nuclear generating unit  sold in 2001 (5) Regional power outage (estimated) (6) Lower sales and use tax 7 Other 4 Total Con Edison of New York (14) O&R - Unregulated subsidiaries including parent company (34)  Unregulated telecommunications asset impairment (84) Unregulated generating asset impairments (10) Cumulative effect of changes in accounting principles 25 Other (1) Total $(118) Lower operation and maintenance expenses  (excluding nuclear operations) $22 Impact of weather in 2002 on net revenues  versus 2001 (estimated) 18 Reserve for electric excess earnings (26) Amortization of divestiture gain in 2001 (25) Reduction in gas base rates and lower  non-firm gas sales (21) Economic conditions (estimated) (8) Other (4) Total Con Edison of New York (44) O&R 5 Unregulated subsidiaries including parent company 14 Cessation of goodwill amortization 11 Cumulative effect of changes in accounting principles (22) To tal $(36)