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The commercial sector has begun to turn around as well. And in the past several months, New York City has seen an upsurge in tourism. 

In addition to our major capital pro- grams, we will continue our advanced research and development programs. Over the years, we’ve created tools and processes that enable us to work more effectively and efficiently. We have also developed sophisticated analytic techniques that help us manage the system more safely and that permit us to get the most value out of every dollar we invest. 

Second, we will continue to manage the company’s finances in a disciplined manner, focusing on the long term. Our straightforward financial state- ments and disclosures help us maintain the confidence of investors and the financial markets. Our strong financial track record is critical to our ability to access the capital markets on favorable terms — something that’s particularly important in light of our investment needs. 

Third, we will continue to invest in our most important resource: our people. Our ability to deliver the energy that makes the region strong depends on 

the outstanding efforts and dedication of our team. The commitment and pro- fessionalism of Con Edison’s employ- ees was most evident during the regional power outage of August 14. Working in coordination with utility industry counterparts and state and local government agencies, we restored service safely — without injury to the public or to company personnel, and without significant damage to equipment. 

decade ago we made an important investment in the futur e when we built The Learning Center The innovative and comprehensive pr ograms offered ther enable our men and women to continually upgrade their skills in an era of rapidly changing technology, and to enhance their ability to plan and manage for the future. 

Fourth, we will communicate the importance of investment in infrastruc- ture to the general public, the media and government of ficials. The August power outage again dr ove home the fact that a strong energy infrastructure is vital to the overall fabric of our lives. We have been working with local, state, and federal government officials to improve the nation’ s energy security. We have shared with industry counter- 

parts and government officials our insights and experience on crucial issues, including the benefits of industry planning and improved communications across regions, the advantages of siting new generating plants near load centers, and the critical need for mandatory reliability standards. We are actively working with all stakeholders to encourage new power generating facilities in our region, and to make sure that our transmission system can accommodate the power when it becomes available. 

Finally, we are working with regulators and others to ensure that we will have the financial strength and flexibility necessary to continue our investment program. In October 2003, the New York State Public Service Commission approved new three-year agreements with Orange and Rockland Utilities that provide customers with predictable gas and electric delivery rates, and provide the company with the ability to earn a fair return for shareholders. 

Con Edison of New York’s 2003 gas and steam rate filings and the anticipated electric rate filing in the spring of 2004 support rate levels that will enable us to continue our 

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