CINergy (CIN) 8-K Results of Operations and Financial Condition

Exhibit 99.3

CINERGY CORP.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

	December 31			December 31
	2004			2003
ASSETS
Current Assets
Cash and cash equivalents	$	164,541		$	169,120
Notes receivable, current	214,513			189,854
Accounts receivable less accumulated provision for doubtful accounts of $5,514 at December 31, 2004, and $7,884 at December 31, 2003	1,061,140			1,074,518
Fuel, emission allowances, and supplies	444,750			357,625
Energy risk management current assets	381,146			305,058
Prepayments and other	174,624			146,422
Total current assets	2,440,714			2,242,597
Property, Plant, and Equipment - at Cost
Utility plant in service	10,076,468			9,732,123
Construction work in progress	333,687			275,459
Total utility plant	10,410,155			10,007,582
Non-regulated property, plant, and equipment	4,700,009			4,527,943
Accumulated depreciation	5,180,699			4,908,019
Net property, plant, and equipment	9,929,465			9,627,506
Other Assets
Regulatory assets	1,030,333			1,029,242
Investments in unconsolidated subsidiaries	513,675			494,520
Energy risk management non-current assets	138,787			97,334
Notes receivable, non-current	193,857			213,853
Other investments	125,367			184,044
Goodwill and intangible assets	60,502			45,349
Restricted funds held in trust	358,006			—
Other	191,611			180,260
Total other assets	2,612,138			2,244,602
Assets of Discontinued Operations	—			4,501
Total Assets	$	14,982,317		$	14,119,206
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	1,348,576		$	1,240,423
Accrued taxes	216,804			217,993
Accrued interest	54,473			68,952
Notes payable and other short-term obligations	958,910			351,412
Long-term debt due within one year	219,967			839,103
Energy risk management current liabilities	310,741			296,122
Other	171,188			107,438
Total current liabilities	3,280,659			3,121,443
Non-current Liabilities
Long-term debt	4,227,741			4,131,909
Deferred income taxes	1,597,120			1,557,981
Unamortized investment tax credits	99,723			108,884
Accrued pension and other post-retirement benefit costs	688,277			662,834
Regulatory liabilities	557,419			490,856
Energy risk management non-current liabilities	127,340			64,861
Other	225,298			205,344
Total non-current liabilities	7,522,918			7,222,669
Liabilities of Discontinued Operations	—			11,594
Total Liabilities	10,803,577			10,355,706
Cumulative Preferred Stock of Subsidiaries
Not subject to mandatory redemption	62,818			62,818
Common Stock Equity
Common stock - $0.01 par value; authorized shares - 600,000,000; issued shares - 187,653,506 at December 31, 2004, and 178,438,369 at December 31, 2003; outstanding shares - 187,524,229 at December 31, 2004, and 178,336,854 at December 31, 2003	1,877			1,784
Treasury shares at cost - 129,277 shares at December 31, 2004, and 101,515 shares at December 31, 2003	(4,336		)	(3,255		)
Paid-in capital	2,559,715			2,195,985
Retained earnings	1,613,340			1,551,003
Accumulated other comprehensive income (loss)	(54,674		)	(44,835		)
Total common stock equity	4,115,922			3,700,682
Total Liabilities and Equity	$	14,982,317		$	14,119,206

Note: Prior year data has been reclassified to conform with current year presentation.