We had $149 million of available borrowings under our revolving credit facility at December 31, 2002. The Debt Reduction Plan provides for a systematic disposal of our non-utility and non-core assets and, if necessary, a sale of our equity. The proceeds of these transactions will be used to reduce debt. We may reduce debt pursuant to terms stated in the debt agreements or through open market purchases or tender offers. We may engage a financial advisor to assist in completing debt repurchases in the most cost-effective manner. We have registered debt securities for sale with the SEC. As of December 31, 2002, these included $400 million of unsecured senior notes, $500 million of our first mortgage bonds, and $50 million of KGE first mortgage bonds. Any issuance of debt would require that we seek KCC approval. The Westar Energy mortgage prohibits additional first mortgage bonds from being issued (except in connection with certain refundings) unless Westar Energy’s unconsolidated net earnings available for interest, depreciation and property retirement (which as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on, and 10% of the principal amount of, all first mortgage bonds outstanding after giving effect to the proposed issuance. In addition, the issuance of bonds is subject to limitations based upon the amount of bondable property additions. As of December 31, 2002, $70.4 million principal amount of additional first mortgage bonds could be issued under the most restrictive provisions in the mortgage, except in connection with refundings. KGE’s mortgage prohibits additional first mortgage bonds from being issued (except in connection with certain refundings) unless KGE’s net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on, or 10% of the principal amount of, all KGE first mortgage bonds outstanding after giving effect to the proposed issuance. In addition, the issuance of bonds is subject to limitations based upon the amount of bondable property additions. As of December 31, 2002, approximately $302.5 million principal amount of additional KGE first mortgage bonds could be issued under the most restrictive provisions in the mortgage. We may from time to time issue equity securities in private transactions and public offerings. We have approximately 11.2 million shares of common stock registered for sale with the SEC. Cash Flows from (used in) Operating Activities Our primary sources of operating cash flows are the operations of our electric utility and monitored services businesses and dividends from our ONEOK investment. Cash flows from operating activities increased $154.4 million to		$372.7 million in 2002, from $218.3 million in 2001. This increase is mostly attributable to an approximate $131.2 million increase in utility gross margin for 2002 compared to 2001. Cash flows from operating activities decreased $252.5 million to $218.3 million in 2001, from $470.8 million in 2000. This decrease is mostly attributable to changes in our working capital. Operating cash flows in 2001 also decreased due to the continued declines in Protection One’s and Protection One Europe’s customer bases, which reduced our recurring monthly cash flow stream. Operating cash flows also decreased in 2001 as we purchased additional coal to restock our inventory from the levels that existed in December 2000. Cash Flows from (used in) Investing Activities In general, cash used for investing purposes relates to the growth and maintenance of the operations of our electric utility and monitored services businesses. The utility business is capital intensive and requires significant investment in plant on an annual basis. We spent $126.8 million in 2002, $227.0 million in 2001 and $285.4 million in 2000 on net additions to utility property, plant and equipment, which included $52.2 million in 2001 and $87.7 million in 2000 for new generation facilities. We did not construct any new generation facilities in 2002. The monitored services business also requires significant capital related to the generation of customer accounts. Investment in customer accounts amounted to $43.4 million in 2002, $23.1 million in 2001 and $45.7 million in 2000. Investing cash flows were also impacted significantly by dispositions of monitored services businesses and the sale of marketable securities. These activities provided cash of $16.8 million in 2002, $50.8 million in 2001 and $218.6 million in 2000. Cash Flows from (used in) Financing Activities We used $203.6 million of net cash flows in 2002 for financing activities compared to net cash flows from financing activities of $22 million in 2001, primarily due to the debt refinancings completed during 2002. In 2001, an increase in short-term debt was the principal source of cash flows from financing activities. Cash from financing activities was used to fund the retirement of long-term debt, deposits to the trustee to provide for repayment of an obligation, the acquisition of treasury stock, and the payment of dividends on our common stock. In 2000, we reduced our indicated annual dividend from $2.14 per share to $1.20 per share. This reduction, and continued reinvestment of dividends by our shareholders through the dividend reinvestment program, resulted in a significant reduction in our net cash dividend requirements. Future Cash Requirements The November 8, 2002 KCC order requires us to reduce debt by $100 million annually in each of the next two years from internally generated cash flow. While we believe we can generate this level of internally generated cash flow, if we fail to meet this requirement, the KCC may, among other things, require us to reduce or eliminate our dividend or issue equity securities. In the Debt Reduction Plan, we anticipate meeting the $100 million debt reduction goal.