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## Con Edison of New York 

## Electric 

Con Edison of New York’s electric operating revenues increased $559 million in 2003 compared with 2002, due pri- marily to higher fuel and purchased power costs of $503 million (which are recoverable from customers), and a lower amount reserved for earnings in excess of a specified rate of return to be retained for customer benefit ($31 million). Changes to operating revenues also reflect variations in electric sales. 

Con Edison of New York’s electric sales and deliveries, exclud- ing off-system sales, in 2003 compared with 2002 were: 

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Electric delivery volumes in Con Edison of New York’s service area decreased 0.4 percent in 2003 compared with 2002. The decrease in delivery volumes reflects the cool weather in the second quarter of 2003 and the lower than normal number of hot days during the summer of 2003 compared with an excep- tionally warm summer in 2002, partially offset by the cold win- ter weather in 2003 compared with the mild winter in 2002. After adjusting for variations, principally weather and billing days in each period and the August 2003 regional power out- age, electric delivery volumes in Con Edison of New York’s service area increased 0.6 percent in 2003 compared with 2002. Weather-adjusted sales represent an estimate of the sales that would have been made if historical average weather conditions had prevailed. 

Con Edison of New York’s electric purchased power costs increased $477 million in 2003 as compared with 2002, due to an increase in the average unit price of purchased power. This increase was offset in part by lower usage by the company’s full service customers and higher volumes of electricity pur- chased from other suppliers by participants in the company’s retail access programs. Electric fuel costs increased $26 mil- lion, reflecting an increase in the average unit price of fuel. 

Con Edison of New York’s electric operating income decreased $1 million in 2003 compared with 2002. The principal compo- nent of the decrease was an increase in other operations and maintenance expense ($41 million – due primarily to a reduced net credit for pensions and other postretirement benefits), prop- erty taxes ($17 million) and depreciation ($16 million). The increase in expenses was offset in part by higher net revenues (operating revenues less purchased power and fuel costs - $56 million), lower state and local revenue taxes ($7 million), sales and use tax ($5 million) and payroll taxes ($3 million). 

## Gas 

Con Edison of New York’s gas operating revenues in 2003 increased $250 million compared with 2002, due primarily to the higher cost of purchased gas of $244 million (which is recoverable from customers), and higher sales volumes. 

Con Edison of New York’s revenues from gas sales are subject to a weather normalization clause that moderates, but does not eliminate, the effect of weather-related changes on net income. 

Con Edison of New York’s gas sales and deliveries, excluding off-system sales, in 2003 compared with 2002 were: 

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Con Edison of New York’s sales and transportation volumes for firm customers increased 13.8 percent in 2003 compared with 2002. The increase reflects the impact of the cold weather in the 2003 winter period compared with the mild weather in the 2002 winter period and increased new business. After adjust- ing for variations, principally weather and billing days in each period and the August 2003 regional power outage, firm gas sales and transportation volumes in the company’s service area increased 3.6 percent in 2003. 

