Exhibit 99.3
Reconciliation of Income (Loss) from Continuing Operations to Recurring Earnings after MTM Adjustments
| $ millions & $ per share | 2004 | 2003 | ||||||||||||||||||||||
| 1Q | 2Q | 3Q | 1Q | 2Q | 3Q | |||||||||||||||||||
| Income (loss) from continuing operations available to common stockholders | $ | (1 | ) | $ | (18 | ) | $ | 16 | $ | (50 | ) | $ | 91 | $ | 20 | |||||||||
| Total nonrecurring items (net of tax effect) | $ | 4 | $ | 72 | $ | 120 | $ | 6 | $ | (103 | ) | $ | (20 | ) | ||||||||||
| Recurring income from continuing operations available to common shareholders | $ | 3 | $ | 54 | $ | 136 | $ | (44 | ) | $ | (12 | ) | $ | (0 | ) | |||||||||
Recurring diluted earnings per common share | $ | — | $ | 0.10 | $ | 0.26 | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.00 | ) | |||||||||
| *Mark-to-Market (MTM) adjustments for Power: | ||||||||||||||||||||||||
| Reverse forward unrealized MTM gains/losses | (23 | ) | (69 | ) | (187 | ) | 40 | (232 | ) | 54 | ||||||||||||||
| Add realized gains/losses from MTM previously recognized | 137 | 10 | 45 | (55 | ) | 45 | (45 | ) | ||||||||||||||||
| Total MTM adjustments | 114 | (59 | ) | (142 | ) | (15 | ) | (187 | ) | 9 | ||||||||||||||
| Tax effect of total MTM adjustments | 44 | (23 | ) | (55 | ) | (6 | ) | (73 | ) | 4 | ||||||||||||||
| After tax MTM adjustments | 70 | (36 | ) | (87 | ) | (9 | ) | (114 | ) | 5 | ||||||||||||||
| Recurring income from continuing operations available to common shareholders after MTM adjustments | $ | 73 | $ | 18 | $ | 49 | $ | (53 | ) | $ | (126 | ) | $ | 5 | ||||||||||
Recurring diluted earnings per share after MTM adjustments | $ | 0.14 | $ | 0.03 | $ | 0.09 | $ | (0.10 | ) | $ | (0.24 | ) | $ | 0.01 | ||||||||||
| Weighted average shares — diluted (thousands) | 525,752 | 521,698 | 529,525 | 517,652 | 534,839 | 524,711 | ||||||||||||||||||
| * | Adjustments have been made to reverse estimated forward unrealized MTM gains/losses and add estimated realized gains/losses from MTM previously recognized, i.e. assumes MTM accounting had never been applied to designated hedges and other derivatives. |