Steam sales volumes increased 7.1 percent in 2003 compared with 2002  reflecting the impact of the cold weather in the 2003 winter period compared with the mild weather in the 2002 winter period. After adjusting for variations  principally weather and billing days in each period and the August 2003 regional power outage  steam sales increased 0.9 percent. Non-firm transportation of customer-owned gas to NYPA  and electric generating plants decreased 34.8 percent in 2003  as compared with 2002 due to higher gas prices. In 2003  because of the relative prices of gas and fuel oil  electric  generating plants in the company’s gas service area utilized  oil rather than gas for a significant portion of their generation.  The decline in gas usage had minimal impact on earnings  due to the application of a fixed demand charge for local  transportation. At $1 billion  taxes other than income taxes remain one of  Con Edison of New York’s largest operating expenses. Con Edison of New York’s purchased gas cost increased  $244 million in 2003 compared with 2002  due to higher unit costs and increased sales volumes for firm sales customers. Con Edison of New York’s gas operating income decreased $10 million in 2003 compared with 2002  reflecting primarily  an increase in other operations and maintenance expense  ($4 million – due primarily to a reduced net credit for pensions and other postretirement benefits)  depreciation ($4 million)  state and local taxes on revenues ($5 million) and income  tax ($4 million). The increases in expenses were offset in  part by higher net revenues (operating revenues less gas  purchased for resale - $7 million). The principal components of  and variations in  taxes  other than income taxes were: Con Edison of New York’s steam operating revenues increased $133 million and steam operating income decreased $1 million in 2003 compared with 2002. The higher revenues reflect high- er sales volumes due to the cold winter weather in 2003 as compared with the mild weather in 2002. The increase also includes higher fuel and purchased power costs ($124 million) in 2003 compared with 2002. The decrease in steam operating income reflects primarily higher income taxes ($10 million – due to higher taxable income and a lower level of removal costs in 2003) and operations and maintenance expense ($3 million – due to a reduced net credit for pensions and other postretire- ment benefits) offset in part by an increase in net revenues (operating revenues less fuel and purchased power costs) of $9 million and lower state and local taxes on steam revenues ($4 million). Con Edison of New York’s steam sales and deliveries in 2003 compared with 2002 were: Net interest charges decreased $16 million in 2003 compared with 2002 due primarily to the interest expense associated with a net federal income tax deficiency related to a prior period audit ($19 million) recorded in 2002. Other income (deductions) decreased $19 million in 2003  compared with 2002  reflecting $27 million of interest income on a federal income tax refund claim recorded in 2002   partially offset by an increase in income tax expense in 2003  as a result of the recognition in 2002 of income tax benefits relating to the September 2001 sale of the company’s nuclear generating unit. Effective January 2003  New York City increased Con Edison of New York’s annual property taxes by $94 million. Under the company’s rate agreements  the company is deferring most of the property tax increase as a regulatory asset to be recovered fr om customers. Steam Other Income Net Interest Charges Taxes Other Than Income Taxes Millions of Pounds Twelve Months Ended December 31  December 31  Percent Description 2003 2002 Variation Variation General 729 600 129 21.5% Apartment house 7 845 7 022 823 11.7 Annual power 17 674 16 897 777 4.6 To t a l Sales 26 248 24 519 1 729 7.1% Increase/ (Millions of Dollars) 2003 2002 (Decrease) Pr operty taxes $1 651 $1 630 $21 State and local taxes  related to revenue receipts 321 327 (6) Payr oll taxes 50 55 (5) Other taxes 18 28 (10) To tal $1 040(a) $1 040(a) $ - Con Edison Annual Report 2003 39 (a) Including sales tax on customers’ bills  total taxes other than income taxes billed to  (a) customers in 2003 and 2002 were $1 393 and $1 352 million  respectively.