In 1996, earnings available for common stockholders increased 6% over 1995, from $969.2 million or $2.68 per share in 1995 to $1,030.1 million or $2.85 per share in 1996. Contributing to the increase were Electric Operations’ customer growth, business expansion projects placed in service in both the Natural Gas Transmission and the Energy Services segments and increased volumes in Energy Services due primarily to the joint venture formed with Mobil Corporation (Mobil) in August 1996. Partially offsetting the increase were expenses related to major storms in 1996, which affected the Electric Operations’ distribution costs, non-recurring merger related costs and an extraordinary item related to the early retirement of debt in 1996.

Operating income of the Corporation for 1997 was $1,970 million compared to $2,158.6 million in 1996 and $2,068.3 million in 1995. Earnings before interest and taxes (EBIT) were $2,108.1 million, $2,294.2 million and $2,190.5 million for 1997, 1996 and 1995, respectively. Operating income and earnings before interest and taxes are not materially different, and are affected by the same fluctuations for the Corporation and each of its business segments. Earnings before interest and taxes by business segment are summarized below, and the explanation of these results by business segment are discussed thereafter.

Net income for 1997 is net of a full year of the minority interests associated with the August 1996 joint venture with Mobil in the Trading and Marketing operations of the Energy Services segment (see Note 3 to the Consolidated Financial Statements).