2004 ANNUAL REPORT TO SHAREHOLDERS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31 (In Millions–Except Per Share Amounts) 2004 )  2003) Variance) Revenues  $14,057)  $14,667) ($610) Expenses: Fuel and Purchased Energy  6,445)  6,615)  (170) Maintenance and Other Operation 3,611)  3,660)  (49) Asset Impairments and Other Related Charges  — )  650) (650) Depreciation and Amortization  1,300)  1,307)  (7) Taxes Other Than Income Taxes  710)  681)  29) Total Expenses  12,066)  12,913)  (847) Operating Income  1,991)  1,754)  237) Interest Income  33)  25)  8) Carrying Costs on Texas Stranded Cost Recovery  302)  —)  302) Investment Value Losses  (15)  (70)  55) Gain on Disposition of Equity Investments, Net  153)  — )  153) Other Income, Net 22)  11)  11) Interest and Other Charges  787)  840)  (53) Income Before Income Taxes  1,699)  880)  819) Income Taxes  572)  358)  214) Income Before Discontinued Operations, Extraordinary Item and  Cumulative Effect of Accounting Changes  1,127)  522)  605) Discontinued Operations, Net of Tax  83)  (605)  688) Extraordinary Loss on Texas Stranded Cost Recovery, Net of Tax  (121)  — )  (121) Cumulative Effect of Accounting Changes, Net of Tax  — ) 193)  (193) Net Income  $1,089) $110)  $979) Weighted Average Number of Shares Outstanding  396)  385)  11) Earnings (Loss) Per Share: Income Before Discontinued Operations, Extraordinary Item and  Cumulative Effect of Accounting Changes  $2.85) $1.35)  $1.50) Discontinued Operations, Net of Tax  0.21)  (1.57)  1.78) Extraordinary Loss, Net of Tax  (0.31)  — )  (0.31) Cumulative Effect of Accounting Changes, Net of Tax  — )  0.51)  (0.51) Net Income  $2.75)  $0.29)  $2.46) Cash Dividends Paid Per Share  $1.40)  $1.65)  $(0.25) 21