Three Months Ended

Six Months Ended

Twelve Months Ended

June 30,

June 30,

June 30,

1998

1997

1998

1997

1998

1997

Revenues

U.S. Electric

$ 885

$ 765

$ 1,574

$ 1,508

$ 3,387

$ 3,230

U.K. Electric

403

403

935

923

1,882

1,840

Other

56

16

92

31

138

65

1,344

1,184

2,601

2,462

5,407

5,135

Expenses

Fuel and Purchased Power

341

278

598

565

1,299

1,215

U.K. Cost of Sales

270

282

654

651

1,295

1,295

Operations and Maintenance

284

248

546

565

1,113

1,064

Depreciation and Amortization

126

120

249

239

507

468

Taxes

109

87

180

146

380

361

1,130

1,015

2,227

2,166

4,594

4,403

Operating Income

214

169

374

296

813

732

Other Income/(Deductions)

12

10

30

16

47

34

Interest and Other Charges

(119)

(96)

(238)

(204)

(474)

(417)

Preferred Stock Dividends

-

-

-

-

-

-

Gain/(Loss) on Reacq. of Preferred Stock

-

-

-

-

-

-

Gain on Sale of Transok

-

-

-

-

-

8

Income Before Extraordinary Item

107

83

166

108

386

357

Extraordinary Item - UK windfall profits tax

-

-

-

-

(176)

-

Net Income for Common Stock

$ 107

$ 83

$ 166

$ 108

$ 210

$ 357

Average Common Shares

212.3

212.2

212.3

212.0

212.3

211.3

Earnings per Share

$ 0.50

$ 0.39

$ 0.78

$ 0.51

$ 0.99

$ 1.69

Dividends Paid per Share

$ 0.435

$ 0.435

$ 0.87

$ 0.87

$ 1.74

$ 1.74

Kilowatt-Hour Sales - U.S. Utilities

(Millions)

Residential

4,332

3,568

8,237

7,654

18,578

17,468

Commercial

3,744

3,361

6,970

6,592

14,924

14,209

Industrial

5,370

5,218

10,439

10,209

21,318

20,561

Other

474

356

884

746

1,842

1,568

Total Retail

13,920

12,503

26,530

25,201

56,662

53,806

Sales for Resale

1,933

1,716

3,669

3,537

7,956

7,837

Total Sales

15,853

14,219

30,199

28,738

64,618

61,643