Exhibit 2

HORIZON ENERGY DEVELOPMENT, INC.
INCOME STATEMENT
(Unaudited)

	Three Months Ended June 30, 2004
Operating Revenue:
Operating Revenue	$ 22,122,393
Operating Expenses:
Fuel Used in Heat and Electric Generation	12,918,536
Operation and Maintenance Expenses	6,695,129
Property, Franchise & Other Taxes	708,307
Depreciation, Depletion & Amortization	3,752,768
Operating Expenses	24,074,740
Operating Loss	(1,952,347	)
Other Income	1,283,424
Interest Charges	1,741,280
Net Loss Before Income Taxes	(2,410,203	)
Income Taxes - Current	(1,180,602	)
Income Taxes - Deferred	674,595
	(506,007	)
Minority Interest in Foreign Subsidiaries	292,235
Net Loss	($ 1,611,961	)