For the Years Ended December 31, (Millions of Dollars/Except Share Data) 2003 2002 2001 Operating Revenues (Note A) Electric $6,863 $6,251 $6,888) Gas 1,492 1,204 1,466) Steam 537 404 504) Non-utility 935 643 531) Total Operating Revenues 9,827  8,502 9,389) Operating Expenses Purchased power 3,926 3,201 3,380) Fuel 504 289 394) Gas purchased for resale 847 596 860) Other operations 1,134 962 1,067) Maintenance 353 387 430) Impairment charges - telecommunications and other unregulated assets (Note H) 159 - -) Depreciation and amortization (Note A) 529 495 526) Taxes, other than income taxes (Note A) 1,116 1,114 1,139) Income taxes (Notes A and M) 325 398 465) Total Operating Expenses 8,893 7,442 8,261) Operating Income 934 1,060 1,128) Other Income (Deductions) Investment income (Note A) 4 2 8) Allowance for equity funds used during construction (Note A) 15 10 1) Other income 23 48 (4) Other deductions (16) (20) (28) Income taxes (Notes A and M) 10 22 22) Total Other Income (Deductions) 36 62 (1) Income Before Interest Charges 970 1,122 1,127) Interest on long-term debt 401 386 397) Other interest 45 61 42) Allowance for borrowed funds used during construction (Note A) (12) (5) (8) Net Interest Charges 434 442 431) Income Before Preferred Stock Dividends 536 680 696) Preferred Stock Dividend Requirements of Subsidiary 11 12 14) Income Before Cumulative Effect  of Changes In Accounting Principles 525 668 682) Cumulative Effect of Changes In Accounting Principles (Net of income tax of $(2) and $15 in 2002 and 2003, r espectively) 3 (22) -) Net Income For Common Stock $ 528 $ 646 $ 682) Earnings Per Common Share - Basic Before cumulative effect of changes in accounting principles $2 . 3 7 $ 3.14 $ 3.22) Cumulative effect of changes in accounting principles $ 0.02 $(0.11) $ - After cumulative effect of changes in accounting principles $2 . 3 9 $3 . 0 3 $3.22) Earnings Per Common Share - Diluted Before cumulative effect of changes in accounting principles  $2 . 3 6 $ 3.13 $ 3.21) Cumulative effect of changes in accounting principles $ 0.02 $(0.11) $ -)) After cumulative effect of changes in accounting principles  $2 . 3 8 $ 3.02 $ 3.21) Dividends Declared Per Share of Common Stock $ 2.24 $ 2.22 $ 2.20) Average Number of Shares Outstanding - Basic (in Millions) 220.9 213.0 212.1) Average Number of Shares Outstanding - Diluted (in Millions) 221.8 214.0 212.9) The accompanying notes are an integral part of these financial statements. 50 Con Edison Annual Report 2003 Consolidated Income Statement Consolidated Edison, Inc.