EX-99.2 3 exhibit992.htm EXHIBIT 99.2 Exhibit 99.2


Exhibit 99.2




DTE ENERGY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

 
September 30
 
December 31
 
2012
 
2011
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
59

 
$
68

Restricted cash, principally Securitization
69

 
147

Accounts receivable (less allowance for doubtful accounts of $150 and $162, respectively)
 
 
 
Customer
1,164

 
1,317

Other
71

 
90

Inventories
 
 
 
Fuel and gas
554

 
572

Materials and supplies
231

 
219

Deferred income taxes
58

 
51

Derivative assets
123

 
222

Regulatory assets
157

 
314

Other
244

 
196

 
2,730

 
3,196

Investments
 
 
 
Nuclear decommissioning trust funds
1,029

 
937

Other
537

 
525

 
1,566

 
1,462

Property
 
 
 
Property, plant and equipment
23,442

 
22,541

Less accumulated depreciation, depletion and amortization
(9,038
)
 
(8,795
)
 
14,404

 
13,746

Other Assets
 
 
 
Goodwill
2,020

 
2,020

Regulatory assets
4,299

 
4,539

Securitized regulatory assets
456

 
577

Intangible assets
67

 
73

Notes receivable
114

 
123

Derivative assets
63

 
74

Other
190

 
199

 
7,209

 
7,605

Total Assets
$
25,909

 
$
26,009








DTE ENERGY COMPANY

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

 
September 30
 
December 31
 
2012
 
2011
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
724

 
$
782

Accrued interest
122

 
95

Dividends payable
107

 
99

Short-term borrowings
98

 
419

Current portion long-term debt, including capital leases
633

 
526

Derivative liabilities
146

 
158

Other
479

 
549

 
2,309

 
2,628

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,526

 
6,405

Securitization bonds
302

 
479

Junior subordinated debentures
280

 
280

Capital lease obligations
12

 
23

 
7,120

 
7,187

Other Liabilities
 

 
 

Deferred income taxes
3,273

 
3,116

Regulatory liabilities
990

 
1,019

Asset retirement obligations
1,683

 
1,591

Unamortized investment tax credit
58

 
65

Derivative liabilities
30

 
89

Accrued pension liability
1,216

 
1,298

Accrued postretirement liability
1,341

 
1,484

Nuclear decommissioning
156

 
148

Other
302

 
331

 
9,049

 
9,141

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 172,073,378 and 169,247,282 shares issued and outstanding, respectively
3,567

 
3,417

Retained earnings
3,969

 
3,750

Accumulated other comprehensive loss
(147
)
 
(158
)
Total DTE Energy Company Equity
7,389

 
7,009

Noncontrolling interests
42

 
44

Total Equity
7,431

 
7,053

Total Liabilities and Equity
$
25,909

 
$
26,009







DTE ENERGY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
Nine Months Ended
 
September 30
 
2012
 
2011
(In millions)
Operating Activities
 
 
 
Net income
$
535

 
$
563

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
Depreciation, depletion and amortization
747

 
752

Deferred income taxes
96

 
123

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

Changes in assets and liabilities, exclusive of changes shown separately
358

 
48

Net cash from operating activities
1,729

 
1,486

Investing Activities
 
 
 
Plant and equipment expenditures — utility
(1,008
)
 
(968
)
Plant and equipment expenditures — non-utility
(214
)
 
(61
)
Proceeds from sale of assets
20

 
13

Restricted cash for debt redemption, principally Securitization
55

 
47

Proceeds from sale of nuclear decommissioning trust fund assets
48

 
69

Investment in nuclear decommissioning trust funds
(61
)
 
(97
)
Other
(24
)
 
(55
)
Net cash used for investing activities
(1,184
)
 
(1,052
)
Financing Activities
 
 
 
Issuance of long-term debt
495

 
908

Redemption of long-term debt
(447
)
 
(1,161
)
Short-term borrowings, net
(321
)
 
126

Issuance of common stock
29

 
—

Repurchase of common stock
—

 
(18
)
Dividends on common stock
(300
)
 
(289
)
Other
(10
)
 
(19
)
Net cash used for financing activities
(554
)
 
(453
)
Net Decrease in Cash and Cash Equivalents
(9
)
 
(19
)
Cash and Cash Equivalents at Beginning of Period
68

 
65

Cash and Cash Equivalents at End of Period
$
59

 
$
46








THE DETROIT EDISON COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
Three Months Ended
 
Nine Months Ended
 
September 30
 
September 30
(In millions)
2012
 
2011
 
2012
 
2011
Operating Revenues
$
1,542

 
$
1,517

 
$
4,029

 
$
3,949

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
543

 
553

 
1,348

 
1,348

Operation and maintenance
337

 
352

 
1,026

 
1,012

Depreciation and amortization
219

 
215

 
607

 
619

Taxes other than income
65

 
63

 
193

 
182

Asset (gains) and losses, net
—

 
(1
)
 
(1
)
 
13

 
1,164

 
1,182

 
3,173

 
3,174

 
 
 
 
 
 
 
 
Operating Income
378

 
335

 
856

 
775

 
 
 
 
 
 
 
 
Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
70

 
74

 
204

 
218

Other income
(14
)
 
(9
)
 
(41
)
 
(30
)
Other expenses
12

 
14

 
27

 
26

 
68

 
79

 
190

 
214

 
 
 
 
 
 
 
 
Income Before Income Taxes
310

 
256

 
666

 
561

 
 
 
 
 
 
 
 
Income Tax Expense
115

 
98

 
247

 
214

 
 
 
 
 
 
 
 
Net Income
$
195

 
$
158

 
$
419

 
$
347






MICHIGAN CONSOLIDATED GAS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
Three Months Ended
 
Nine Months Ended
 
September 30
 
September 30
(In millions)
2012
 
2011
 
2012
 
2011
Operating Revenues
$
157

 
$
156

 
$
867

 
$
1,074

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Cost of gas
20

 
35

 
350

 
526

Operation and maintenance
88

 
91

 
282

 
294

Depreciation and amortization
23

 
22

 
69

 
66

Taxes other than income
10

 
11

 
41

 
42

 
141

 
159

 
742

 
928

Operating Income (Loss)
16

 
(3
)
 
125

 
146

 
 
 
 
 
 
 
 
Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
14

 
16

 
43

 
47

Interest income
(2
)
 
(1
)
 
(5
)
 
(5
)
Other income
(2
)
 
(2
)
 
(7
)
 
(5
)
Other expenses
1

 
3

 
3

 
4

 
11

 
16

 
34

 
41

Income (Loss) Before Income Taxes
5

 
(19
)
 
91

 
105

 
 
 
 
 
 
 
 
Income Tax Expense (Benefit)
2

 
(8
)
 
32

 
37

 
 
 
 
 
 
 
 
Net Income (Loss)
$
3

 
$
(11
)
 
$
59

 
$
68










DTE Energy Debt/Equity Calculation
As of September 30, 2012
($ millions)
Short-term borrowings
$
98

Current portion of long-term debt, including capital leases
633

Mortgage bonds, notes and other
6,526

Securitization bonds, excluding current portion
302

Capital lease obligations
12

Other adjustments
276

less Securitization bonds, including current portion
(479
)
50% Junior Subordinated Debentures
140

Total debt
7,508

 
 
50% Junior Subordinated Debentures
140

Total preferred/ other
140

 
 
Equity
7,389

 
 
Total capitalization
$
15,037

 
 
Debt
50
%
Junior Subordinated Debentures
1
%
Common shareholders' equity
49
%
 
 
Total
100
%




Sales Analysis - Q3 2012
 
 
 
Electric Sales - Detroit Edison Service Area (GWh)
 
Electric Billings - Detroit Edison Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2012
 
Q3 2011
 
% Change
 
 
Q3 2012
 
Q3 2011
 
% Change
Residential
4,893

 
4,863

 
1
 %
 
Residential
$
736,043

 
$
665,301

 
11
 %
Commercial
4,601

 
4,759

 
(3
)%
 
Commercial
515,457

 
478,457

 
8
 %
Industrial
2,707

 
2,606

 
4
 %
 
Industrial
206,142

 
186,946

 
10
 %
Other (a)
238

 
252

 
(6
)%
 
Other (b)
26,907

 
50,035

 
(46
)%
 
12,439

 
12,480

 
0
 %
 
 
$
1,484,549

 
$
1,380,739

 
8
 %
Choice
1,372

 
1,394

 
(2
)%
 
Choice
23,684

 
26,160

 
(9
)%
TOTAL SALES
13,811

 
13,874

 
0
 %
 
TOTAL
$
1,508,233

 
$
1,406,899

 
7
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 excludes 530 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $23,579k related to a wholesale contract terminated Dec 2011

Gas Sales - MichCon Service Area (MMcf)
 
Gas Billings - MichCon Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2012
 
Q3 2011
 
% Change
 
 
Q3 2012
 
Q3 2011
 
% Change
Residential
5,943

 
7,123

 
(17
)%
 
Residential
$
76,382

 
$
85,932

 
(11
)%
Commercial
1,250

 
1,531

 
(18
)%
 
Commercial
14,532

 
17,442

 
(17
)%
Industrial
90

 
110

 
(18
)%
 
Industrial
716

 
886

 
(19
)%
 
7,283

 
8,764

 
(17
)%
 
 
$
91,630

 
$
104,260

 
(12
)%
End User Transportation*
32,991

 
25,722

 
28
 %
 
End User Transportation*
33,733

 
30,332

 
11
 %
TOTAL SALES
40,274

 
34,486

 
17
 %
 
TOTAL
$
125,363

 
$
134,592

 
(7
)%
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
Detroit Edison service territory
 
 
 
 
 
 
MichCon service territory
 
 
 
 
 
 
Q3 2012
 
Q3 2011
 
% Change
 
 
Q3 2012
 
Q3 2011
 
% Change
Actuals
768
 
793
 
(3)%
 
Actuals
144
 
142
 
1%
Normal
537
 
537
 
 
 
Normal
125
 
128
 
 
Deviation from normal
43%
 
48%
 
 
 
Deviation from normal
15%
 
11%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
Q3 2012
 
Q3 2011
Detroit Edison*
$
40

 
$
—

MichCon
1

 
1

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




Sales Analysis - YTD September 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
12,180

 
12,358

 
(1
)%
 
Residential
$
1,823,316

 
$
1,679,205

 
9
 %
Commercial
12,734

 
12,750

 
0
 %
 
Commercial
1,435,902

 
1,283,431

 
12
 %
Industrial
7,645

 
7,353

 
4
 %
 
Industrial
596,550

 
520,634

 
15
 %
Other (a)
717

 
771

 
(7
)%
 
Other (b)
79,710

 
148,199

 
(46
)%
 
33,276

 
33,232

 
0
 %
 
 
$
3,935,478

 
$
3,631,469

 
8
 %
Choice
3,938

 
4,104

 
(4
)%
 
Choice
68,309

 
77,671

 
(12
)%
TOTAL SALES
37,214

 
37,336

 
0
 %
 
TOTAL
$
4,003,787

 
$
3,709,140

 
8
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 excludes 1,572 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $69,521k 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
54,005

 
68,913

 
(22
)%
 
Residential
$
516,496

 
$
677,691

 
(24
)%
Commercial
12,296

 
17,204

 
(29
)%
 
Commercial
110,741

 
162,262

 
(32
)%
Industrial
719

 
613

 
17
 %
 
Industrial
5,676

 
5,105

 
11
 %
 
67,020

 
86,730

 
(23
)%
 
 
$
632,913

 
$
845,058

 
(25
)%
End User Transportation*
114,808

 
104,788

 
10
 %
 
End User Transportation*
146,496

 
154,747

 
(5
)%
TOTAL SALES
181,828

 
191,518

 
(5
)%
 
TOTAL
$
779,409

 
$
999,805

 
(22
)%
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* 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
1,114
 
1,035
 
8%
 
Actuals
3,322
 
4,416
 
(25)%
Normal
730
 
730
 
 
 
Normal
4,131
 
4,144
 
 
Deviation from normal
53%
 
42%
 
 
 
Deviation from normal
(20)%
 
7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
YTD 2012
 
YTD 2011
Detroit Edison*
$
50

 
$
—

MichCon
(25
)
 
11

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




Detroit Edison Temperature Normal Sales Analysis - September 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
11,478

 
11,484

 
0
 %
 
Residential
11,479

 
11,485

 
0
 %
Commercial
12,331

 
12,431

 
(1
)%
 
Commercial
14,621

 
14,915

 
(2
)%
Industrial
7,603

 
7,320

 
4
 %
 
Industrial
9,163

 
8,872

 
3
 %
Other (a)
717

 
771

 
(7
)%
 
Other (a)
717

 
771

 
(7
)%
 
32,129

 
32,006

 
0
 %
 
 
35,980

 
36,043

 
0
 %
Choice
3,851

 
4,036

 
(5
)%
 
 
 
 
 
 
 
TOTAL SALES
35,980

 
36,042

 
0
 %
 
 


 


 
 
________________
 
 
 
 
 
 
 
 
 
 
 
 
(a) 2011 excludes 1,572 GWh related to a wholesale contract terminated Dec 2011