Why was 2003 such a great year for Constellation Energy? It was a transforming year for us. While some companies in our industry continued to retreat to the old utility model of the past, we continued to operate and build a company for the future. We aligned our physical assets with wholesale and commercial and industrial customers in competitive markets. We continued to grow, both organically and through acquisitions. Most important, we did an excellent job executing our customer-centric strategy. No one is better than we are at meeting the complex physical energy needs of customers in competitive markets. Our results - and our continuing growth - make that clear. We're succeeding because we're doing it right - combining physical assets and financial strength with strong risk management controls and market expertise. What does it mean to be the leading energy company we talk about in our vision? It means being a leading supplier of competitive energy in North America, providing the best products and service to customers. The performance of our generating facilities must rank among the top 10 percent in our industry. The reliability of our transmission and distribution operations must be a given. Our unsurpassed risk management skills must keep their leading edge. We must focus on meeting our customers' needs all along the energy value chain, from our efficient management of energy logistics to the intermediary role that we play between generators and distributors of power. What will our company look like in five years? We expect that we will be the leading energy provider in competitive markets - serving load to wholesale customers, selling and supplying energy to commercial and industrial customers throughout North America, and managing hydrocarbons, including coal, gas, and other fuels. In addition, through BGE we will maintain a growing, customer-service oriented regulated utility business. In what markets will we be a competitor? We plan to be an active participant in all deregulated energy markets. We expect to enter regions as they deregulate and open up to competition. Our strategy has been to gain a footprint - a generating plant, or energy services capabilities, or a portfolio of energy contracts or customers. We then take advantage of our regional and competitive expertise to grow our business. Why is continuing deregulation throughout the United States important to our business model? We are building our company to be a leading North American competitive energy company. Over the short term, we are not relying on either federal deregulation or an ever-increasing number of state-level deregulations to achieve our growth objectives. There is plenty of growth available in markets that have deregulated and are open to competition. Over the long term, we believe deregulation will continue and increase. As that happens, there will be winners and losers among energy companies. We intend to be a winner. Why are we making an effort to build the Constellation Energy brand? We are a customer-centric business operating in competitive markets. Our branding efforts will help articulate why we are different and how we create value for customers. Although energy itself is a commodity, the service we provide is not. There are various options for pricing, risk tolerance, physical delivery, billing, and management. Customers want confidence in their energy supplier's skill set, product depth, creditworthiness, and dependability. What's your view on industry consolidation? The regional structure of our industry is inefficient. Consolidation generally improves service levels and reduces costs. That's what happened with consolidation in the telecommunications, retail, pharmaceutical distribution, air travel, and other industries. While our industry has its own specific issues - a myriad of federal and regional issues and concerns - I believe consolidation would lead to improved service, lower costs, increased innovation, and other benefits to our customers. What is our acquisition policy? We only make an acquisition when it is a strategic and financial fit - the right asset in the right location at the right price. We're cautious consumers of capital and disciplined in our deployment of funds. That approach has paid off with the acquisitions we've made over the last three years - NewEnergy, Fellon-McCord/Alliance Energy Services, Nine Mile Point Nuclear Station, and various portfolios of customer contracts. We've been very successful at integrating them into our business and achieving exceptional returns. We applied the same approach to our 2003 acquisitions - Blackhawk Energy Services and Kaztex Energy - and to our agreement to purchase the Ginna Nuclear Power Plant. And we expect good results from those investments. How do you grow 10 percent in a 3 percent industry? We grow 10 percent by increasing our share in competitive energy markets, continuously making productivity improvements, and being disciplined in our deployment of capital. Our leading market share in competitive retail electricity markets where we participate has grown to 16 percent, and we have plans in place to drive it to 21 percent by 2007. Over the last two years, we have made significant progress in improving our cost profile, and our efforts over the next few years should produce significant additional results. How do we build value for our shareholders? We build value for our shareholders by growing our business and meeting our earnings targets. We believe that strong earnings growth should drive long-term stock appreciation and a premium stock price-to-earnings ratio. In 2003, our stock price appreciated almost 41 percent. Adding the dividend - assuming it was reinvested - total return to shareholders was 45 percent. While that's an exceptional year, we have a long-term focus. I believe that if we continue to execute our strategy and meet our goals, we'll also continue to produce superior long-term total returns and create greater value for our shareholders. What is our dividend policy? We strive to make the most effective use of our earnings by paying dividends, reinvesting in our business, and reducing debt. Our focus is on maximizing shareholder value and total shareholder return. We plan to raise our dividend in line with our earnings growth as long as it continues to make good business sense. In January 2004, we increased the dividend by 10 percent to an annual rate of $1.14 per share. This is the third consecutive year we've increased the dividend. How will you spend most of your time during 2004? In 2003, we created a chief administrative officer position to oversee more of the day-to-day operations of our business. That frees my time to focus more on future strategic issues. We are one of the nation's leading competitive energy companies, and we have experience and perspectives that can be helpful in various discussions about our industry. I'm going to be working to ensure that we have an appropriate presence among thought-leaders and other participants in any efforts concerning the future of our energy industry and markets.