content_image/55151.jpg content_image/55157.jpg content_image/55161.jpg
Con Edison of New York’s gas sales and deliveries, excluding off-system sales, in 2002 compared with 2001 were: 

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Con Edison of New York’s sales and transportation volumes for firm customers decreased 3.5 percent in 2002 compared with 2001. Revenues from gas sales in New York are subject to a weather normalization clause that moderates, but does not eliminate, the effect of weather-related changes on net income. After adjusting for variations, principally weather and billing days in each period, firm gas sales and transportation volumes in the company’s service territory decreased 1.5 per- cent in the 2002. 

The company’s gas sales and transportation volumes vary seasonally in response to weather and peak in the winter. A weather-normalization provision that applies to the compa- ny’s gas business moderates, but does not completely elimi- nate, the effect of weather-related changes on gas operating income. 

## Steam 

Con Edison of New York’s steam operating revenues decreased $100 million. The lower revenues reflect reduced sales volumes and lower fuel and purchased power costs pri- marily as a result of the loss of the World Trade Center as a customer, the mild winter weather in the first quarter of 2002 and the soft economy. The lower fuel and purchased power costs reflect primarily lower unit costs and volumes. Steam operating income increased $8 million for 2002 compared with 2001 due primarily to reduced operations and maintenance expenses of $9 million and lower income taxes of $11 million, 

offset in part by a decrease in net revenues (operating revenues less fuel and purchased power costs) of $11 million. 

Con Edison of New York’s steam sales and deliveries in 2002 compared with 2001 were: 

<img src='content_image/55157.jpg'>

Steam sales volume decreased 3.2 percent in 2002 compared with 2001, reflecting primarily the loss of the World Trade Center as a customer, the mild winter weather in the first quarter of 2002 and the soft economy. After adjusting for variations, principally weather and billing days in each period, steam sales volume decreased 1.4 percent. 

## Taxes Other Than Income Taxes 

The principal components of, and variations in, taxes, other than income taxes were: 

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## Other Income 

Investment income decreased $4 million in 2002 compared with 2001, due principally to reduced interest income earned on short-term cash investments in 2002 compared with 2001. For 2001, the company had more cash on hand than in 2002, primarily as a result of the sale of its nuclear generating unit. Allowance for equity funds used during construction increased $9 million in 2002 compared with 2001 primarily reflecting the East River Repowering Project. Other income increased $42 million in 2002 compared with 2001 due primarily to $27 million of interest income on a federal income tax refund claim, a $10 million write-off in 2001 of an investment in the New York Discovery Fund, a $9 million increase in interest earned on reg- ulatory assets (See “Application of Critical Accounting Policies – Accounting for Regulated Public Utilities – SFAS No. 71,” above), offset in part by reduced income of $3 million from non-utility operations. Income tax expense decreased $4 mil- 

