Exhibit 2

HORIZON ENERGY DEVELOPMENT, INC.
INCOME STATEMENT
(Unaudited)

	Three Months Ended September 30, 2004
Operating Revenue:
Operating Revenue	$	10,702,185
Operating Expenses:
Fuel Used in Heat and Electric Generation		7,694,802
Operation and Maintenance Expenses		9,940,302
Property, Franchise & Other Taxes		760,699
Depreciation, Depletion & Amortization		3,835,323
Operating Expenses		22,231,126
Operating Loss		(11,528,941	)
Other Income		345,001
Interest Charges		1,773,388
Net Loss Before Income Taxes		(12,957,328	)
Income Taxes - Current		(3,207,816	)
Income Taxes - Deferred		(1,305,760	)
		(4,513,576	)
Minority Interest in Foreign Subsidiaries		1,445,030
Net Loss		($ 6,998,722	)