Exhibit 2

HORIZON ENERGY DEVELOPMENT, INC.
INCOME STATEMENT
(Unaudited)

	Three Months Ended June 30, 2005
Operating Revenue:
Operating Revenue	$	22,626,441
Operating Expenses:
Fuel Used in Heat and Electric Generation		13,304,381
Operation and Maintenance Expenses		5,830,888
Property, Franchise & Other Taxes		856,424
Depreciation, Depletion & Amortization		4,433,224
Operating Expenses		24,424,917
Operating Income / (Loss)		(1,798,476	)
Other Income		959,757
Interest Charges		1,850,519
Net Income / (Loss) Before Income Taxes		(2,689,238	)
Income Taxes - Current		(1,601,819	)
Income Taxes - Deferred		6,887,114
		5,285,295
Minority Interest in Foreign Subsidiaries		442,800
Net Income / (Loss)		($ 7,531,733	)