Year Ended December 31, 2002 Compared with Year Ended December 31, 2001 The Companies’ results of operations (which wer discussed above under “Results of Operations – Summary”) in 2002 com- pared with 2001 were: * Represents the consolidated financial results of Con Edison and its subsidiaries. A discussion of the results of operations by principal business segment follows. For additional business segment financial  information, see Note O to the financial statements. The results reflect the application of the Companies’ accounting policies and rate plans that cover the rates the Utilities can charge their customers. In general, the Utilities recover on a current basis the fuel and purchased power costs they incur in  supplying energy to their full-service customers. See “Recoverable Energy Costs” in Note A and “Regulatory Matters” in Note B to the financial statements.  Con Edison Con Edison* of New York O&R Increases Increases Increases Increases Increases Increases (Decr eases) (Decreases) (Decreases) (Decreases) (Decreases) (Decreases) (Millions of Dollars) Amount Percent Amount Percent Amount Percent Operating revenues $(887) (9.4)% $(898) (11.1)% $(101) (13.7)% Purchased power (179) (5.3)% (197) (7.0)% (70) (24.1)% Fuel (105) (26.6)% (119) (33.9)% -) -)% Gas purchased for resale (264) (30.7)% (194) (29.1)% (40) (31.0)% Operating revenues less purchased power,  fuel and gas purchased for resale (net revenues) (339) (7.1)% (388) (9.1)% 9) 2.8)% Other operations and maintenance (148) (9.9)% (160) (12.6)% 2) 1.4)% Depreciation and amortization (31) (5.9)% (27) (5.8)% 1) 3.0)% Taxes, other than income tax (25) (2.2)% (27) (2.5)% (2) (3.7)% Income tax (67) (14.4)% (81) (18.6)% (1) (3.8)% Operating income (68) (6.0)% (93) (8.9)% 9) 14.3)% Other income less deductions and related federal income tax 63) Large 54) Large%% -) N/A% Net interest charges 11) 2.6%) 7) 1.8)% 4) 16.7)% Preferred stock dividend requirements (2)  (14.3)% (2) (14.3)% -) N/A% Cumulative effect of changes in accounting principles 22) N/A - - -) N/A% Net income for common stock $ (36)  (5.3)% $ (44) (6.8)% $(105) 12.5)% 42 Con Edison Annual Report 2003