Cash Flows from/(used in) Financing Activities Net cash flows used in investing activities for O&R were  $1 million lower in 2002 than in 2001. Net cash flows from financing activities in 2003 for Con Edison and Con Edison of New York increased $258 million and $327 million, respectively in 2003 compared with 2002.  Con Edison’s cash flows from financing activities for the year ended December 31, 2003, reflect the issuance of 9.6 million Con Edison common shares (resulting in proceeds of $381 mil- lion, which was invested by Con Edison in Con Edison of New York) and $200 million of Con Edison’s 3.625 percent 5-year Series 2003A Debentures (most of which was invested in the unregulated subsidiaries). Cash flows from financing activities in 2002 reflect the issuance of $325 million of Con Edison’s 7.25 percent 40-year Series 2002A Debentures (the proceeds of which were used to repay commercial paper). Cash flows from financing activities in both 2003 and 2002 also reflect the issuance of Con Edison common shares through its dividend reinvestment and employee stock plans (2003: 2.3 million shares for $50 million; 2002: 1.7 million shares for $25 million). In addition, common stock dividends paid in 2003 and 2002 were reduced by $46 million and $44 million, respectively, to reflect the amount of dividends reinvested in Con Edison com- mon shares through the dividend reinvestment and employee stock plans. Net cash flows used in financing activities for Con Edison and Con Edison of New York decreased $267 million and $328 mil- lion in 2002 compared with 2001, respectively. This decrease reflects principally increased debt financing for construction expenditures at Con Edison of New York and a reduction in the dividends paid by Con Edison of New York to Con Edison. In addition, in September 2001, Con Edison of New York used the proceeds from the sale of its nuclear plant to repay out- standing short-term borrowing.  Net cash flows used in financing activities for O&R were $8 mil- lion lower in 2002 than 2001, due primarily to the retirement of short-term debt in excess of proceeds from issuances. Net cash flows from financing activities during the years ending December 31, 2003, 2002 and 2001 also reflect Con Edison of New York’s (unless otherwise noted) refunding and issuance of long-term debt and preferred stock as follows: 2003 28 Con Edison Annual Report 2003 - Redeemed in advance of maturity $275 million 7.75 percent - 35-year Series 1996A, Subordinated Deferrable Interest - Debentures using cash held for that purpose at December - 31, 2002;  - Redeemed at maturity $150 million of 6.375 percent 10-year Cash flows from financing activities of the Companies also reflect commercial paper issuance (included on the consolidat- ed balance sheets as “Notes payable”). The commercial paper  In 2002, Con Edison of New York changed the interest rate method applicable to $224.6 million aggregate principal amount of its tax-exempt Facilities Revenue Bonds, Series 2001A from a variable weekly rate mode to a 10-year term mode, callable at par after three years with a 4.7 percent  annual interest rate. In addition, Con Edison of New York entered into a swap agreement in connection with these bonds pursuant to which the company pays interest at a variable rate equal to the three-month LIBOR and is paid interest at a fixed rate of 5.375 percent. See Note P to the financial statements. 2001 - Redeemed at maturity $150 million 6.5 percent  - 10-year Series 1993B; - Issued $400 million 7.5 percent 40-year Series 2001A; - Issued $225 million variable rate 35-year tax-exempt  - debt Series 2001A through the New York State Energy - Research and Development Authority (NYSERDA) and - redeemed in advance of maturity $128 million 7.5 percent  - 25-year Series 1991A and $100 million 6.75 percent 25-year - Series 1992A NYSERDA bonds; - Issued $98 million variable rate 35-year tax-exempt debt  - through NYSERDA and redeemed in advance of maturity - $100 million 6.375 percent 25-year Series 1992B NYSERDA - bonds; - Redeemed at maturity $150 million variable rate 5-year  - Series 1996B. 2002 - Redeemed at maturity $150 million 6.625 percent  - 9-year Series 1993C; - Redeemed at maturity $150 million variable-rate 5-year Series 1997A and issued $300 million of 5.625 percent  - 10-year Series 2002A Debentures; - Redeemed at maturity $37 million of Cumulative  - Preferred Stock $100 par value 6.125 percent Series J; - Issued $500 million of 4.875 percent 10-year Series  - 2002B Debentures. - O&R redeemed at maturity its $35 million 6.56 percent  - 10-year Series 1993D Debentures using proceeds from  - the issuance of commercial paper. - Redeemed $380 million 7.5 percent 30-year Series 1993G - Debentures using the net proceeds from the issuance of - $200 million 3.85 percent 10-year Series 2003B Debentures - and $200 million 5.10 percent 30-year Series 2003C  - Debentures;  - Series 1993D Debentures and issued $175 million 5.875  - percent 30-year Series 2003A Debentures; 