Exhibit 99.2

EXPLANATORY NOTE

The attached unaudited combined balance sheets and combined income statements of Mission Energy Holdings International, Inc. and Subsidiaries and Edison Mission Project Co. were prepared based on the accounting policies of EME as described in Note 2, Summary of Significant Accounting Policies, included in EME’s 2002 Annual Report on Form 10-K.  These statements do not include a Statement of Cash Flows, Statement of Shareholder’s Equity and Statement of Comprehensive Income which, together with footnote disclosures, are required in order to prepare financial statements in accordance with generally accepted accounting principles.  Furthermore, these statements have not been examined by independent accountants and, therefore, have been labeled unaudited.  

MISSION ENERGY HOLDINGS INTERNATIONAL, INC AND SUBSIDIARIES

AND EDISON MISSION PROJECT CO.

COMBINED BALANCE SHEETS

(in US$000)

	9/30/03			12/31/02			12/31/01
	(Unaudited)			(Unaudited)			(Unaudited)
Assets
Current Assets
Cash and Cash Equivalents	$	131,191		$	206,502		$	144,249
Accounts Receivable — Trade, Net	183,603			176,237			165,929
Accounts Receivable — Affiliates	649			549			—
Assets Under Trading and Price Risk Management	27,538			25,682			56,579
Inventory	36,734			27,091			22,170
Prepaid Expenses and Other	39,999			36,443			23,697
Total Current Assets	419,714			472,504			412,624
Investments in Unconsolidated Affiliates	931,960			841,118			829,467
Property, Plant and Equipment	4,745,142			4,006,958			3,428,815
Less Accumulated Depreciation and Amortization	627,615			478,914			326,325
Net Property, Plant and Equipment	4,117,527			3,528,044			3,102,490
Other Assets
Long-Term Receivables	8,371			6,063			—
Goodwill	797,538			669,995			619,070
Deferred Financing Costs	22,819			21,751			30,417
Restricted Cash & Other	239,025			183,590			38,215
Total Other Assets	1,067,753			881,399			687,702
Assets of Discontinued Operations	2,566			10,273			319,271
Total Assets	$	6,539,520		$	5,733,338		$	5,351,554
Liabilities and Shareholder’s Equity
Current Liabilities
Accounts Payable — Affiliates	$	12,237		$	39,114		$	48,164
Accounts Payable and Accrued Liabilities	193,331			177,877			128,293
Liabilities Under Trading and Price Risk Management	109,671			21,701			11,623
Interest Payable	38,063			47,054			42,101
Short-Term Obligations	—			77,551			88,241
Current Maturities of Long-Term Obligations	278,165			131,222			27,909
Total Current Liabilities	631,467			494,519			346,331
Long-Term Obligations Net of Current Maturities	2,427,659			2,116,083			2,056,821
Long-Term Deferred Liabilities
Deferred Taxes	517,261			400,881			297,211
Deferred Revenue	520,105			454,210			427,485
Long-Term Liabilities Under Trading and Price Risk Management	89,225			146,273			165,355
Preferred Securities Subject to Mandatory Redemption	147,550			—			—
Other	36,490			24,934			11,446
Total Long-Term Deferred Liabilities	1,310,631			1,026,298			901,497
Liabilities of Discontinued Operations	1,753			3,024			184,418
Total Liabilities	4,371,510			3,639,924			3,489,067
Minority Interests	702,189			651,552			565,131
Preferred Securities Subject to Mandatory Redemption	—			131,225			103,950
Shareholder’s Equity
Common Stock	0			0			0
Additional Paid-in Capital	2,161,072			2,161,072			2,161,072
Retained Earnings (Deficit)	(584,424		)	(640,587		)	(667,281		)
Accumulated Other Comprehensive Loss	(110,827		)	(209,848		)	(300,385		)
Total Shareholder’s Equity	1,465,821			1,310,637			1,193,406
Total Liabilities and Shareholder’s Equity	$	6,539,520		$	5,733,338		$	5,351,554

See Explanatory Note.

MISSION ENERGY HOLDINGS INTERNATIONAL, INC. AND SUBSIDIARIES

AND EDISON MISSION PROJECT CO.

COMBINED INCOME STATEMENTS

(US $000)

	9 Months Ended September 30,						12 Months Ended December 31,
	2003			2002			2002			2001			2000
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Operating Revenues
Electric Revenues	$	1,093,436		$	848,758		$	1,140,365		$	827,163		$	628,004
Income (Loss) from Energy Risk Management	(16,865		)	(2,098		)	(9,571		)	(763		)	—
Operation and Maintenance Services	10,346			10,653			17,695			8,758			7,677
Total Operating Revenues	1,086,917			857,313			1,148,489			835,158			635,681
Operating Expenses
Fuel	382,238			305,601			399,367			280,079			164,028
Plant Operations	350,385			235,730			323,427			230,807			72,171
Operation and Maintenance Services	5,294			4,214			6,982			4,848			5,335
Depreciation and Amortization	97,922			78,765			105,910			94,749			72,484
Administrative and General	23,054			32,262			45,712			45,329			46,895
Total Operating Expenses	858,893			656,572			881,398			655,812			360,913
Income from Operations	228,024			200,741			267,091			179,346			274,768
Other Income (Expense)
Equity in Income from unconsolidated affiliates	78,364			63,467			80,528			34,060			(7,795		)
Interest and Other Income	6,947			17,655			28,790			32,007			58,629
Interest Expense	(159,765		)	(135,404		)	(180,722		)	(148,538		)	(144,006		)
Dividends on Preferred Securities	(4,233		)	(5,134		)	(7,005		)	(8,014		)	—
Total Other Income (Expense)	(78,687		)	(59,416		)	(78,409		)	(90,485		)	(93,172		)
Income From Continuing Operations Before Income Taxes and Minority Interest	149,337			141,325			188,682			88,861			181,596
Income Taxes	62,462			56,385			71,615			32,196			64,023
Minority Interest	(28,568		)	(27,700		)	(33,829		)	(34,291		)	(30,936		)
Income from Continuing Operations	58,307			57,240			83,238			22,374			86,637
Income (loss) from discontinued operations	(1,127		)	21,048			(56,544		)	(1,219,253		)	37,904
Income Before Accounting Change	57,180			78,288			26,694			(1,196,879		)	124,541
Cumulative effect of change in accounting	(1,016		)	—			—			15,084			(9,700		)
Net Income	$	56,164		$	78,288		$	26,694		$	(1,181,795	)	$	114,841

See Explanatory Note.