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In 1998, earnings available for common stockholders increased 36.5% over 1997, to $1,231 million, or $3.41 per basic share, net of an extraordinary loss of $8 million,
or $0.02 per basic share. The increase in earnings available for common stockholders was primarily due to increased electric sales and energy marketing activities, expansions and acquisitions, gains on sales of assets and the absence of 1997 non-recurring merger costs. These increases were partially offset by decreased NGL prices and increased interest expense and minority interests.
Earnings available for common stockholders decreased 12.4% in 1997 compared to 1996, to $902 million or $2.51 per basic share in 1997 from $1,030 million or $2.85 per basic share in 1996. The decrease was due primarily to non-recurring 1997 merger costs, 1997 severance costs, premiums associated with the redemption and tender offer for ten issues of preferred stock and increased nuclear expenses. Partially offsetting the decrease were lower expenses in 1997 as compared to 1996, when major storms affected Electric Operations' distribution costs, and an extraordinary loss related to the early retirement of debt in 1996.
 Operating income for 1998 was $2,433 million compared to $1,970 million in 1997 and $2,159 million in 1996. Earnings before interest and taxes (EBIT) were $2,647 million, $2,108 million and $2,294 million for 1998, 1997 and 1996, respectively. Operating income and earnings before interest and taxes, excluding the effect of gains on asset sales of $34 million by Field Services in 1998, are affected by the same fluctuations for Duke Energy and each of its business segments. Earnings before interest and taxes by business segment are summarized below and are discussed by business segment thereafter.
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