EX-99.2 3 ex-992.htm EX-99.2 EX-99.2
Exhibit 99.2


DTE ENERGY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

 
June 30
 
December 31
(in Millions)
2012
 
2011
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
185

 
$
68

Restricted cash, principally Securitization
110

 
147

Accounts receivable (less allowance for doubtful accounts of $153 and $162, respectively)
 
 
 
Customer
1,239

 
1,317

Other
164

 
90

Inventories
 
 
 
Fuel and gas
487

 
572

Materials and supplies
223

 
219

Deferred income taxes
65

 
51

Derivative assets
221

 
222

Regulatory assets
194

 
314

Other
162

 
196

 
3,050

 
3,196

Investments
 
 
 
Nuclear decommissioning trust funds
985

 
937

Other
533

 
525

 
1,518

 
1,462

Property
 
 
 
Property, plant and equipment
23,081

 
22,541

Less accumulated depreciation, depletion and amortization
(8,929
)
 
(8,795
)
 
14,152

 
13,746

Other Assets
 
 
 
Goodwill
2,020

 
2,020

Regulatory assets
4,390

 
4,539

Securitized regulatory assets
497

 
577

Intangible assets
67

 
73

Notes receivable
117

 
123

Derivative assets
75

 
74

Other
189

 
199

 
7,355

 
7,605

Total Assets
$
26,075

 
$
26,009




DTE ENERGY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) — (Continued)

 
June 30
 
December 31
(in Millions, except shares)
2012
 
2011
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
728

 
$
782

Accrued interest
94

 
95

Dividends payable
207

 
99

Short-term borrowings
39

 
419

Current portion long-term debt, including capital leases
848

 
526

Derivative liabilities
211

 
158

Other
508

 
549

 
2,635

 
2,628

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,528

 
6,405

Securitization bonds
391

 
479

Junior subordinated debentures
280

 
280

Capital lease obligations
13

 
23

 
7,212

 
7,187

Other Liabilities
 

 
 

Deferred income taxes
3,263

 
3,116

Regulatory liabilities
1,007

 
1,019

Asset retirement obligations
1,641

 
1,591

Unamortized investment tax credit
60

 
65

Derivative liabilities
62

 
89

Accrued pension liability
1,224

 
1,298

Accrued postretirement liability
1,341

 
1,484

Nuclear decommissioning
149

 
148

Other
297

 
331

 
9,044

 
9,141

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 171,754,812 and 169,247,282 shares issued and outstanding, respectively
3,549

 
3,417

Retained earnings
3,744

 
3,750

Accumulated other comprehensive loss
(151
)
 
(158
)
Total DTE Energy Company Equity
7,142

 
7,009

Noncontrolling interests
42

 
44

Total Equity
7,184

 
7,053

Total Liabilities and Equity
$
26,075

 
$
26,009



DTE ENERGY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
Six Months Ended
 
June 30
(in Millions)
2012
 
2011
Operating Activities
 
 
 
Net income
$
305

 
$
378

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
Depreciation, depletion and amortization
482

 
493

Deferred income taxes
81

 
14

Asset (gains) and losses, reserves and impairments, net
(7
)
 
8

Changes in assets and liabilities, exclusive of changes shown separately
300

 
266

Net cash from operating activities
1,161

 
1,159

Investing Activities
 
 
 
Plant and equipment expenditures — utility
(708
)
 
(684
)
Plant and equipment expenditures — non-utility
(131
)
 
(35
)
Proceeds from sale of assets
15

 
9

Restricted cash for debt redemption, principally Securitization
15

 
2

Proceeds from sale of nuclear decommissioning trust fund assets
36

 
59

Investment in nuclear decommissioning trust funds
(44
)
 
(76
)
Other
(15
)
 
(42
)
Net cash used for investing activities
(832
)
 
(767
)
Financing Activities
 
 
 
Issuance of long-term debt
496

 
547

Redemption of long-term debt
(140
)
 
(721
)
Short-term borrowings, net
(380
)
 
1

Issuance of common stock
20

 
—

Repurchase of common stock
—

 
(18
)
Dividends on common stock
(199
)
 
(190
)
Other
(9
)
 
(15
)
Net cash used for financing activities
(212
)
 
(396
)
Net Increase (Decrease) in Cash and Cash Equivalents
117

 
(4
)
Cash and Cash Equivalents at Beginning of Period
68

 
65

Cash and Cash Equivalents at End of Period
$
185

 
$
61








THE DETROIT EDISON COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
Three Months Ended
 
Six Months Ended
 
June 30
 
June 30
(in Millions)
2012
 
2011
 
2012
 
2011
Operating Revenues
$
1,289

 
$
1,240

 
$
2,487

 
$
2,432

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
428

 
417

 
805

 
795

Operation and maintenance
334

 
331

 
689

 
660

Depreciation and amortization
203

 
202

 
388

 
404

Taxes other than income
60

 
60

 
128

 
119

Asset (gains) and losses, net
(1
)
 
(5
)
 
(1
)
 
14

 
1,024

 
1,005

 
2,009

 
1,992

 
 
 
 
 
 
 
 
Operating Income
265

 
235

 
478

 
440

 
 
 
 
 
 
 
 
Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
65

 
73

 
134

 
144

Other income
(11
)
 
(11
)
 
(27
)
 
(21
)
Other expenses
9

 
6

 
15

 
12

 
63

 
68

 
122

 
135

 
 
 
 
 
 
 
 
Income Before Income Taxes
202

 
167

 
356

 
305

 
 
 
 
 
 
 
 
Income Tax Expense
75

 
63

 
132

 
116

 
 
 
 
 
 
 
 
Net Income
$
127

 
$
104

 
$
224

 
$
189





MICHIGAN CONSOLIDATED GAS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
Three Months Ended
 
Six Months Ended
 
June 30
 
June 30
(in Millions)
2012
 
2011
 
2012
 
2011
Operating Revenues
$
209

 
$
238

 
$
710

 
$
918

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Cost of gas
59

 
92

 
330

 
491

Operation and maintenance
95

 
102

 
194

 
203

Depreciation and amortization
23

 
22

 
46

 
44

Taxes other than income
13

 
14

 
31

 
31

 
190

 
230

 
601

 
769

Operating Income
19

 
8

 
109

 
149

 
 
 
 
 
 
 
 
Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
14

 
15

 
29

 
31

Interest income
(1
)
 
(2
)
 
(3
)
 
(4
)
Other income
(3
)
 
(1
)
 
(5
)
 
(3
)
Other expenses
1

 
—

 
2

 
1

 
11

 
12

 
23

 
25

Income (Loss) Before Income Taxes
8

 
(4
)
 
86

 
124

 
 
 
 
 
 
 
 
Income Tax Expense (Benefit)
3

 
(1
)
 
30

 
45

 
 
 
 
 
 
 
 
Net Income (Loss)
$
5

 
$
(3
)
 
$
56

 
$
79





DTE Energy Debt/Equity Calculation
As of June 30, 2012
($ millions)
Short-term borrowings
$
39

Current portion of long-term debt, including capital leases
848

Mortgage bonds, notes and other
6,528

Securitization bonds, excluding current portion
391

Capital lease obligations
13

Other adjustments
258

less Securitization bonds, including current portion
(559
)
50% Junior Subordinated Debentures
140

Total debt
7,658

50% Junior Subordinated Debentures
140

Total preferred/ other
140

Equity
7,142

Total capitalization
$
14,940

Debt
51
%
Junior Subordinated Debentures
1
%
Common shareholders' equity
48
%
Total
100
%



Sales Analysis - Q2 2012
Electric Sales - Detroit Edison Service Area (GWh)
 
Electric Billings - Detroit Edison Service Area ($000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2012
 
Q2 2011
 
% Change
 
 
Q2 2012
 
Q2 2011
 
% Change
Residential
3,587

 
3,607

 
(1
)%
 
Residential
$
523,858

 
$
494,467

 
6
 %
Commercial
4,247

 
3,998

 
6
 %
 
Commercial
481,778

 
409,267

 
18
 %
Industrial
2,563

 
2,405

 
7
 %
 
Industrial
202,742

 
169,387

 
20
 %
Other (a)
221

 
239

 
(8
)%
 
Other (b)
26,338

 
49,452

 
(47
)%
 
10,618

 
10,249

 
4
 %
 
 
$
1,234,716

 
$
1,122,573

 
10
 %
Choice
1,312

 
1,409

 
(7
)%
 
Choice
23,155

 
25,476

 
(9
)%
TOTAL SALES
11,930

 
11,658

 
2
 %
 
TOTAL
$
1,257,871

 
$
1,148,049

 
10
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 Excludes 524 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $23,219k related to a wholesale contract terminated Dec 2011

Gas Sales - MichCon Service Area (MMcf)
 
Gas Billings - MichCon Service Area ($000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2012
 
Q2 2011
 
% Change
 
 
Q2 2012
 
Q2 2011
 
% Change
Residential
11,269

 
14,131

 
(20
)%
 
Residential
$
118,469

 
$
148,485

 
(20
)%
Commercial
2,394

 
3,169

 
(24
)%
 
Commercial
23,214

 
31,449

 
(26
)%
Industrial
393

 
204

 
93
 %
 
Industrial
3,155

 
1,706

 
85
 %
 
14,056

 
17,504

 
(20
)%
 
 
$
144,838

 
$
181,640

 
(20
)%
End User Transportation*
33,804

 
27,343

 
24
 %
 
End User Transportation*
39,587

 
43,183

 
(8
)%
TOTAL SALES
47,860

 
44,847

 
7
 %
 
TOTAL
$
184,425

 
$
224,823

 
(18
)%
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
Detroit Edison service territory
 
 
 
 
 
 
MichCon service territory
 
 
 
 
 
 
Q2 2012
 
Q2 2011
 
% Change
 
 
Q2 2012
 
Q2 2011
 
% Change
Actuals
331
 
242
 
37%
 
Actuals
653
 
823
 
(21)%
Normal
193
 
193
 
 
 
Normal
781
 
803
 
 
Deviation from normal
71%
 
25%
 
 
 
Deviation from normal
(16)%
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
Q2 2012
 
Q2 2011
Detroit Edison*
$
21

 
$
—

MichCon
$
(2
)
 
$
1

________________
 
 
 
* Pre 2012 Detroit Edison earnings not affected by weather due to RDM mechanism
 
 
 


Sales Analysis - YTD June 30, 2012
Electric Sales - Detroit Edison Service Area (GWh)
 
Electric Billings - Detroit Edison Service Area ($000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
7,287

 
7,495

 
(3
)%
 
Residential
$
1,087,273

 
$
1,013,905

 
7
 %
Commercial
8,132

 
7,991

 
2
 %
 
Commercial
920,445

 
804,973

 
14
 %
Industrial
4,938

 
4,747

 
4
 %
 
Industrial
390,408

 
333,688

 
17
 %
Other (a)
479

 
517

 
(7
)%
 
Other (b)
52,803

 
98,164

 
(46
)%
 
20,836

 
20,750

 
0
 %
 
 
$
2,450,929

 
$
2,250,730

 
9
 %
Choice
2,567

 
2,711

 
(5
)%
 
Choice
44,625

 
51,511

 
(13
)%
TOTAL SALES
23,403

 
23,461

 
0
 %
 
TOTAL
$
2,495,554

 
$
2,302,241

 
8
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 Excludes 1,043 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $45,942k related to a wholesale contract terminated Dec 2011

Gas Sales - MichCon Service Area (MMcf)
 
Gas Billings - MichCon Service Area ($000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
48,062

 
61,790

 
(22
)%
 
Residential
$
440,114

 
$
591,759

 
(26
)%
Commercial
11,046

 
15,673

 
(30
)%
 
Commercial
96,209

 
144,820

 
(34
)%
Industrial
628

 
503

 
25
 %
 
Industrial
4,960

 
4,218

 
18
 %
 
59,736

 
77,966

 
(23
)%
 
 
$
541,283

 
$
740,797

 
(27
)%
End User Transportation*
81,818

 
79,066

 
3
 %
 
End User Transportation*
112,763

 
124,415

 
(9
)%
TOTAL SALES
141,554

 
157,032

 
(10
)%
 
TOTAL
$
654,046

 
$
865,212

 
(24
)%
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
Detroit Edison service territory
 
 
 
 
 
 
MichCon service territory
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Actuals
347
 
242
 
43%
 
Actuals
3,178
 
4,274
 
(26)%
Normal
193
 
193
 
 
 
Normal
4,006
 
4,016
 
 
Deviation from normal
80%
 
25%
 
 
 
Deviation from normal
(21)%
 
6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
YTD 2012
 
YTD 2011
Detroit Edison*
$
10

 
$
—

MichCon
$
(25
)
 
$
9

________________
 
 
 
* Pre 2012 Detroit Edison earnings not affected by weather due to RDM mechanism
 
 
 



Detroit Edison Temperature Normal Sales Analysis - June 30, 2012
Temperature Normal Electric Sales - Detroit Edison Service Area
(GWh)
 
Temperature Normal Electric Sales - Detroit Edison Service Area
(Includes Electric Choice) (GWh)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
7,218

 
7,301

 
(1
)%
 
Residential
7,219

 
7,302

 
(1
)%
Commercial
7,974

 
7,947

 
0
 %
 
Commercial
9,465

 
9,551

 
(1
)%
Industrial
4,920

 
4,743

 
4
 %
 
Industrial
5,960

 
5,839

 
2
 %
Other (a)
479

 
517

 
(7
)%
 
Other (a)
479

 
517

 
(7
)%
 
20,591

 
20,508

 
0
 %
 
 
23,123

 
23,209

 
0
 %
Choice
2,532

 
2,701

 
(6
)%
 
 
 
 
 
 
 
TOTAL SALES
23,123

 
23,209

 
0
 %
 
 


 


 
 
________________
 
 
 
 
 
 
 
 
 
 
 
 
(a) 2011 Excludes 1,043 GWh related to a wholesale contract terminated Dec 2011