(Dollars in millions) Years ended December 31, 2009 2008* 2007* Operating revenues Electric $2,426 $2,562 $2,194 Natural gas 490 689 658 Total operating revenues 2,916 3,251 2,852 Operating expenses Cost of electric fuel and purchased power 672 900 699 Cost of natural gas 206 415 392 Operation and maintenance 961 913 807 Depreciation and amortization 329 298 301 Franchise fees and other taxes 160 158 155 Gains on sale of assets (1) (3) (2) Total operating expenses 2,327 2,681 2,352 Operating income 589 570 500 Other income (expense), net 64 (29) (6) Interest income 1 6 8 Interest expense (104) (96) (96) Income before income taxes 550 451 406 Income tax expense (177) (161) (135) Net income 373 290 271 (Earnings) losses attributable to noncontrolling interests (24) 54 17 Earnings 349 344 288 Preferred dividend requirements (5) (5) (5) Earnings attributable to common shares $ 344 $ 339 $ 283 * As adjusted for the retrospective adoption of ASC 810 (SFAS 160).