• Power generation income from continuing operations was $6.1 million, compared to $5.2 million in 2004. Earnings for 2005 were higher primarily due to a mark-to-market gain on certain energy investments, offset in part by increased interest expense related to a write-off of deferred costs associated with the repayment of project debt.
• Oil and gas income from continuing operations was $4.3 million compared to $0.8 million in 2004. Higher earnings were primarily the result of a 27 percent increase in natural gas volumes, partially offset by a 13 percent decrease in
  oil volumes sold, at average prices received (net of hedges) that were 32 percent higher for natural gas and 39 percent higher for oil. Operating expense increased 30 percent due primarily to the increase in production. On a per Mcf basis, lease operating expense increased 8 percent due to costs associated with the increase in production and a delay in certain LOE activities from the first quarter of 2005 that were performed in the second quarter due to inclement weather. Results for 2004 included a $2.5 million revenue accrual correction which had adversely affected results.
  
• Energy marketing and transportation income from continuing operations was $2.7 million in 2005 compared to $1.6 million in 2004. The increase primarily resulted from a $3.4 million unrealized mark-to-market pretax gain in 2005, compared to a $0.1 million unrealized pretax gain in 2004. Physical natural gas average daily volume increased 50 percent to 1.6 million mmbtu (million British thermal units); however, marketing margins decreased significantly. Results were also impacted by lower oil marketing volumes and the planned shutdown and pressure testing of the Millennium pipeline in Texas. Following completion of the routine regulatory-required testing, that pipeline was placed back into service in August as scheduled.
  
• Coal mining income from continuing operations was $1.7 million in 2005 compared to $1.4 million in 2004. The increase was primarily due to increased revenues and lower depletion costs, offset in part by increased production-related costs.
  

The following tables contain certain Wholesale Energy operating statistics:

• The amount and timing of capital deployment in new investment opportunities or for the repurchase of debt or stock;
  
• The volumes of our production from oil and gas development properties, which may be dependent upon issuance by federal, state, and tribal governments, or agencies thereof, of drilling, environmental and other permits, and the availability of specialized contractors, work force, and equipment;
  
• The extent of our success in connecting natural gas supplies to gathering, processing and pipeline systems;
  
• Our ability to successfully integrate CLF&P into our operations;
  
• Unfavorable rulings in the rate cases filed by CLF&P with the WPSC and in the periodic applications to recover costs for fuel and purchased power;
  
• Changes in business and financial reporting practices arising from the repeal of the Public Utilities Holding Company Act and other provisions of the recently enacted Energy Policy Act of 2005;
  
• Our ability to remedy any deficiencies that may be identified in the periodic review of our internal controls;
  
• The timing and extent of changes in energy-related and commodity prices, interest rates, energy and commodity supply or volume, the cost of transportation of commodities, and demand for our services, all of which can affect our earnings, liquidity position and the underlying value of our assets;
  
• The timing and extent of scheduled and unscheduled outages of power generation facilities;
  
• General economic and political conditions, including tax rates or policies and inflation rates;
  
• Our use of derivative financial instruments to hedge commodity, currency exchange rate and interest rate risks;
  
• The creditworthiness of counterparties to trading and other transactions, and defaults on amounts due from counterparties;
  
• The amount of collateral required to be posted from time to time in our transactions;
  
• Changes in or compliance with laws and regulations, particularly those relating to taxation, safety and protection of the environment;
  
• Changes in state laws or regulations that could cause us to curtail our independent power production;
  
• Weather and other natural phenomena;
  
• Industry and market changes, including the impact of consolidations and changes in competition;
  
• The effect of accounting policies issued periodically by accounting standard-setting bodies;
  
• The cost and effects on our business, including insurance, resulting from terrorist actions or responses to such actions;
  
• Capital market conditions, which may affect our ability to raise capital on favorable terms;
  
• Price risk due to marketable securities held as investments in benefit plans;
  
• Obtaining adequate cost recovery for our retail operations through regulatory proceedings; and
  
• Other factors discussed from time to time in our other filings with the SEC.