Exhibit 99.3

Reconciliation of Income (Loss) from Continuing Operations to Recurring Earnings
(UNAUDITED)

	2003															2004
(Dollars in millions, except for per-share amounts)	1st Qtr *			2nd Qtr *			3rd Qtr *			4th Qtr *			Year *			1st Qtr *			2nd Qtr			Year
Income (loss) from continuing operations(1)	$	(43.1	)	$	113.7		$	20.0		$	(62.4	)	$	28.2		$	(1.5	)	$	(18.0	)	$	(19.5	)
Preferred stock dividends		6.8			22.7			—			—			29.5			—			—			—
Income (loss) from continuing operations available to common stockholders	$	(49.9	)	$	91.0		$	20.0		$	(62.4	)	$	(1.3	)	$	(1.5	)	$	(18.0	)	$	(19.5	)
Income (loss) from continuing operations — diluted earnings per share	$	(0.10	)	$	0.17		$	0.04		$	(0.12	)	$	(0.01	)	$	—		$	(0.03	)	$	(0.04	)
Nonrecurring items:
Power
Accelerated compensation expense associated with workforce reductions		11.8			—			—			—			11.8			—			—			—
Severance accrual		—			0.6			—			—			0.6			—			—			—
Loss accrual for regulatory issues(2)		—			20.0			—			—			20.0			—			—			—
Prior period item correction(3)		(13.7	)		(93.1	)		(1.0	)		(9.0	)		(116.8	)		—			—			—
Gain on sale of Jackson EMC power contracts		—			(175.0	)		(13.0	)		—			(188.0	)		—			—			—
Gain on sale of crude contracts and pipeline		—			(7.1	)		—			—			(7.1	)		—			—			—
Gain on sale of eSpeed stock		—			—			(13.5	)		—			(13.5	)		—			—			—
Impairment of goodwill(2)		—			—			—			45.0			45.0			—			—			—
Hazelton impairment		—			—			—			44.1			44.1			—			—			—
California rate refund and other accrual adjustments(4)		—			—			—			33.3			33.3			—			—			—
Total Power nonrecurring items		(1.9	)		(254.6	)		(27.5	)		113.4			(170.6	)		—			—			—
Gas Pipeline
Write—off of Oneline information system project		—			25.5			—			0.1			25.6			—			—			—
Severance accrual		—			0.9			—			—			0.9			—			—			—
Write—off of previously—capitalized costs — idled segment of Northwest’s pipeline		—			—			—			—			—			—			9.0			9.0
Total Gas Pipeline nonrecurring items		—			26.4			—			0.1			26.5			—			9.0			9.0
Exploration & Production
Gain on sale of certain E&P properties		—			(91.5	)		—			—			(91.5	)		—			—			—
Loss provision related to an ownership dispute		—			—			—			—			—			—			11.3			11.3
Total Exploration & Production nonrecurring items		—			(91.5	)		—			—			(91.5	)		—			11.3			11.3
Midstream Gas & Liquids
Impairment of investment in Aux Sable		—			8.5			5.6			—			14.1			—			—			—
La Maquina depreciable life adjustment		—			—			4.2			—			4.2			—			—			—
Gain on sale of West Texas LPG Pipeline, L.P.		—			—			(11.0	)		—			(11.0	)		—			—			—
Gain on sale of wholesale propane		—			—			—			(16.2	)		(16.2	)		—			—			—
Total Midstream Gas & Liquids nonrecurring items		—			8.5			(1.2	)		(16.2	)		(8.9	)		—			—			—
Other
Impairment of Longhorn and Aspen project (5)		—			49.6			—			—			49.6			—			10.8			10.8
Gain on sale of butane blending inventory		—			—			(9.2	)		—			(9.2	)		—			—			—
Longhorn recapitalization fee		—			—			—			—			—			6.5			—			6.5
Total Other nonrecurring items		—			49.6			(9.2	)		—			40.4			6.5			10.8			17.3
Nonrecurring items included in segment profit (loss)		(1.9	)		(261.6	)		(37.9	)		97.3			(204.1	)		6.5			31.1			37.6
Nonrecurring items below segment profit (loss)
Convertible preferred stock dividends(2)(Preferred stock dividends — Corporate)		—			13.8			—			—			13.8			—			—			—
Impairment of cost-based investments(2) (Investing income (loss) —Various)		—			19.1			2.3			—			21.4			—			—			—
Severance accrual (General corporate expenses)		—			3.0			—			—			3.0			—			—			—
Impairment of Algar Telecom investment (Investing income (loss) — Other)		12.0			—			1.2			—			13.2			—			—			—
Write-off of capitalized debt expense (Interest accrued — Corporate)		—			14.5			—			—			14.5			—			3.8			3.8
Premiums, fees and expenses related to the debt repurchase and debt tender offer
(Other income (expense) — net — Corporate and Exploration & Production)		—			—			—			66.8			66.8			—			96.7			96.7
Loss provision related to an ownership dispute — interest component (Interest accrued — Exploration & Production)		—			—			—			—			—			—			1.9			1.9
		12.0			50.4			3.5			66.8			132.7			—			102.4			102.4
Total nonrecurring items		10.1			(211.2	)		(34.4	)		164.1			(71.4	)		6.5			133.5			140.0
Tax effect for above items		3.9			(108.7	)		(14.0	)		43.4			(75.5	)		2.5			51.1			53.6
Recurring income (loss) from continuing operations available to common stockholders	$	(43.7	)	$	(11.5	)	$	(0.4	)	$	58.3		$	2.8		$	2.5		$	64.4		$	66.9
Recurring diluted earnings per common share	$	(0.08	)	$	(0.02	)	$	—		$	0.11		$	0.01		$	—		$	0.12		$	0.13
Weighted—average shares — diluted (thousands)		517,652			534,839			524,711			518,502			518,137			525,752			521,698			520,592

⁽¹⁾Includes $126.8 million positive valuation adjustment associated with agreement to terminate contract with Allegheny in second quarter 2003.
⁽²⁾No tax benefit
⁽³⁾Power recognized $116.8 million of revenue in 2003 from a correction of the accounting treatment previously applied to certain third party derivative contracts during 2002 and 2001.
⁽⁴⁾For $5.6 million, no tax benefit
⁽⁵⁾For $20.2 million, no tax benefit in 2nd Qtr 2003.

* Amounts have been restated from 1st quarter 2004 to reflect the Canadian straddle plants as discontinued operations.

Note: The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weighted-average number of common shares outstanding.