In Millions

Years Ended December 31

1998

1997

1996

Cash Flows From Operating Activities

Consolidated net income

$285

$244

$224

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation, depletion and amortization (includes nuclear decommissioning of $51, $50 and $49, respectively)

484

467

427

Deferred income taxes and investment tax credit

54

24

45

Capital lease and debt discount amortization

51

44

41

Loss on MCV power purchases

37

-

-

Accretion expense

16

17

22

Accretion income-abandoned Midland project

(6)

(8)

(10)

Undistributed earnings of related parties

(95)

(58)

(55)

Cumulative effect of accounting change for property taxes

(66)

-

-

MCV power purchases

(64)

(62)

(63)

Other

6

(9)

27

Changes in other assets and liabilities

(186)

(35)

(11)

Net cash provided by operating activities

516

624

647

Cash Flows From Investing Activities

Capital expenditures (excludes capital lease additions of $60, $11 and $31, respectively and DSM)

(1,295)

(678)

(643)

Investments in partnerships and unconsolidated subsidiaries

(345)

(830)

(163)

Cost to retire property, net

(83)

(46)

(31)

Other

32

(46)

(47)

Acquisition of companies, net of cash acquired

-

-

(20)

Proceeds from sale of property

57

49

79

Net cash used in investing activities

(1,634)

(1,551)

(825)

Cash Flows From Financing Activities

Proceeds from bank loans, notes and bonds

2,348

1,214

433

Issuance of Common Stock

269

224

95

Proceeds from Trust Preferred Securities

-

286

97

Retirement of bonds and other long-term debt

(661)

(521)

(37)

Repayment of bank loans

(574)

(29)

(256)

Payment of Common Stock dividends

(140)

(119)

(103)

Increase (decrease) in notes payable, net

(53)

49

(8)

Payment of capital lease obligations

(36)

(44)

(40)

Retirement of Common Stock

(3)

(2)

(1)

Retirement of preferred stock

-

(120)

-

Net cash provided by financing activities

1,150

938

180

Net Increase in Cash and Temporary Cash Investments

32

11

2

Cash and temporary cash investments

Beginning of year

69

58

56

End of year

$101

$69

$58