1. CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2007 2006 2005
20
(In millions)
Cash Flows From Operating Activities:
Net income $1,309 $1,254 $861
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation 638 596 588
Amortization of regulatory assets 1,019 861 1,281
Deferral of new regulatory assets (524) (500) (405)
Nuclear fuel and lease amortization 101 90 90
Deferred purchased power and other costs (346) (445) (384)
Deferred income taxes and investment tax credits, net (9) 159 154
Investment impairment 26 27 6
Cumulative effect of a change in accounting principle – – 30
Deferred rents and lease market valuation liability (99) (113) (104)
Accrued compensation and retirement benefits (37) 193 90
Tax refunds related to pre-merger period – – 18
Commodity derivative transactions, net 6 24 6
Gain on asset sales (30) (49) (35)
Loss (income) from discontinued operations – 4 (12)
Cash collateral, net (68) (77) 196
Pension trust contributions (300) – (500)
Decrease (increase) in operating assets-
Receivables (136) 105 (87)
Materials and supplies 79 (25) (32)
Prepayments and other current assets 10 3 3
Increase (decrease) in operating liabilities-
Accounts payable 51 99 32
Accrued taxes 71 (175) 150
Accrued interest (8) 7 (6)
Electric service prepayment programs (75) (64) 208
Other 16 (35) 72
Net cash provided from operating activities 1,694 1,939 2,220
Cash Flows From Financing Activities:
New Financing-
Long-term debt 1,527 2,739 721
Short-term borrowings, net – 386 561
Redemptions and Repayments-
Common stock (969) (600) –
Preferred stock – (193) (170)
Long-term debt (1,098) (2,536) (1,424)
Short-term borrowings, net (205) – –
Net controlled disbursement activity (1) (27) (18)
Stock-based compensation tax benefit 20 13 –
Common stock dividend payments (616) (586) (546)
Net cash used for financing activities (1,342) (804) (876)
Cash Flows From Investing Activities:
Property additions (1,633) (1,315) (1,208)
Proceeds from asset sales 42 162 104
Proceeds from sale and leaseback transaction 1,329 – –
Sales of investment securities held in trusts 1,294 1,651 1,587
Purchases of investment securities held in trusts (1,397) (1,666) (1,688)
Cash investments and restricted funds 72 121 (42)
Other (20) (62) (86)
Net cash used for investing activities (313) (1,109) (1,333)
Net increase in cash and cash equivalents 39 26 11
Cash and cash equivalents at beginning of year 90 64 53
Cash and cash equivalents at end of year $129 $90 $64
Supplemental Cash Flow Information:
Cash Paid During the Year-
Interest (net of amounts capitalized) $744 $656 $665
Income taxes $710 $688 $406