EX-99.2 3 exhibit992.htm EXHIBIT 99.2 Exhibit 99.2
EXHIBIT 99.2







DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
 
June 30,
 
December 31,
 
2013
 
2012
 
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
46

 
$
65

Restricted cash, principally Securitization
112

 
122

Accounts receivable (less allowance for doubtful accounts of $63 and $62, respectively)
 
 
 
Customer
1,314

 
1,336

Other
102

 
126

Inventories
 
 
 
Fuel and gas
378

 
527

Materials and supplies
249

 
234

Deferred income taxes
—

 
21

Derivative assets
90

 
108

Regulatory assets
90

 
182

Other
115

 
194

 
2,496

 
2,915

Investments
 
 
 
Nuclear decommissioning trust funds
1,080

 
1,037

Other
574

 
554

 
1,654

 
1,591

Property
 
 
 
Property, plant and equipment
24,356

 
23,631

Less accumulated depreciation, depletion and amortization
(9,166
)
 
(8,947
)
 
15,190

 
14,684

Other Assets
 
 
 
Goodwill
2,018

 
2,018

Regulatory assets
3,790

 
4,235

Securitized regulatory assets
326

 
413

Intangible assets
138

 
135

Notes receivable
106

 
112

Derivative assets
27

 
39

Other
199

 
197

 
6,604

 
7,149

Total Assets
$
25,944

 
$
26,339







DTE Energy Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)
 
June 30,
 
December 31,
 
2013
 
2012
 
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
808

 
$
848

Accrued interest
97

 
93

Dividends payable
229

 
107

Short-term borrowings
216

 
240

Current portion long-term debt, including capital leases
879

 
817

Derivative liabilities
90

 
125

Gas inventory equalization
73

 
—

Other
570

 
538

 
2,962

 
2,768

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,116

 
6,220

Securitization bonds
201

 
302

Junior subordinated debentures
480

 
480

Capital lease obligations
9

 
12

 
6,806

 
7,014

Other Liabilities
 

 
 

Deferred income taxes
3,280

 
3,191

Regulatory liabilities
954

 
1,031

Asset retirement obligations
1,784

 
1,719

Unamortized investment tax credit
51

 
56

Derivative liabilities
16

 
26

Accrued pension liability
1,355

 
1,498

Accrued postretirement liability
702

 
1,160

Nuclear decommissioning
164

 
159

Other
283

 
306

 
8,589

 
9,146

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 174,960,000 and 172,351,680 shares issued and outstanding, respectively
3,762

 
3,587

Retained earnings
3,945

 
3,944

Accumulated other comprehensive loss
(155
)
 
(158
)
Total DTE Energy Company Equity
7,552

 
7,373

Noncontrolling interests
35

 
38

Total Equity
7,587

 
7,411

Total Liabilities and Equity
$
25,944

 
$
26,339





DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
 
Six Months Ended June 30,
 
2013
 
2012
 
(In millions)
Operating Activities
 
 
 
Net income
$
342

 
$
305

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
Depreciation, depletion and amortization
527

 
482

Deferred income taxes
123

 
81

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

 
(7
)
Changes in assets and liabilities, exclusive of changes shown separately
275

 
300

Net cash from operating activities
1,267

 
1,161

Investing Activities
 
 
 
Plant and equipment expenditures — utility
(708
)
 
(708
)
Plant and equipment expenditures — non-utility
(197
)
 
(131
)
Proceeds from sale of assets
15

 
15

Restricted cash for debt redemption, principally Securitization
10

 
15

Proceeds from sale of nuclear decommissioning trust fund assets
27

 
36

Investment in nuclear decommissioning trust funds
(35
)
 
(44
)
Other
(23
)
 
(15
)
Net cash used for investing activities
(911
)
 
(832
)
Financing Activities
 
 
 
Issuance of long-term debt
371

 
496

Redemption of long-term debt
(515
)
 
(140
)
Short-term borrowings, net
(24
)
 
(380
)
Issuance of common stock
19

 
20

Dividends on common stock
(215
)
 
(199
)
Other
(11
)
 
(9
)
Net cash used for financing activities
(375
)
 
(212
)
Net Increase (Decrease) in Cash and Cash Equivalents
(19
)
 
117

Cash and Cash Equivalents at Beginning of Period
65

 
68

Cash and Cash Equivalents at End of Period
$
46

 
$
185







DTE Electric Company
Consolidated Statements of Operations (Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(In millions)
Operating Revenues
$
1,265

 
$
1,289

 
$
2,484

 
$
2,487

Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
435

 
428

 
807

 
805

Operation and maintenance
343

 
334

 
674

 
689

Depreciation and amortization
221

 
203

 
433

 
388

Taxes other than income
63

 
60

 
133

 
128

Asset (gains) losses and reserves, net
1

 
(1
)
 
—

 
(1
)
 
1,063

 
1,024

 
2,047

 
2,009

Operating Income
202

 
265

 
437

 
478

Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
68

 
65

 
134

 
134

Other income
(9
)
 
(11
)
 
(24
)
 
(27
)
Other expenses
6

 
9

 
12

 
15

 
65

 
63

 
122

 
122

Income Before Income Taxes
137

 
202

 
315

 
356

Income Tax Expense
47

 
75

 
109

 
132

Net Income
$
90

 
$
127

 
$
206

 
$
224






DTE Gas Company
Consolidated Statements of Operations (Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(In millions)
Operating Revenues
$
243

 
$
209

 
$
837

 
$
710

Operating Expenses
 
 
 
 
 
 
 
Cost of gas
78

 
59

 
370

 
330

Operation and maintenance
103

 
95

 
208

 
194

Depreciation and amortization
24

 
23

 
47

 
46

Taxes other than income
14

 
13

 
31

 
31

 
219

 
190

 
656

 
601

Operating Income
24

 
19

 
181

 
109

Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
14

 
14

 
29

 
29

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

 
1

 
1

 
2

 
11

 
11

 
23

 
23

Income Before Income Taxes
13

 
8

 
158

 
86

Income Tax Expense
5

 
3

 
56

 
30

Net Income
$
8

 
$
5

 
$
102

 
$
56







DTE Energy Debt/Equity Calculation
As of June 30, 2013
($ millions)

Short-term borrowings
$
216

Current portion of long-term debt, including capital leases
879

Mortgage bonds, notes and other
6,116

Securitization bonds, excluding current portion
201

Capital lease obligations
9

Other adjustments
294

less Securitization bonds, including current portion
(390
)
50% Junior Subordinated Debentures
240

Total debt
7,565

 
 
50% Junior Subordinated Debentures
240

Common equity
7,587

Total adjusted equity
7,827

 
 
Total capitalization
$
15,392

 
 
Debt
49.1
%
Adjusted equity
50.9
%
 
 
Total
100
%




Sales Analysis - Q2 2013
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2013
 
Q2 2012
 
% Change
 
 
Q2 2013
 
Q2 2012
 
% Change
Residential
3,345

 
3,587

 
(7
)%
 
Residential
$
532,433

 
$
523,858

 
2
 %
Commercial
4,158

 
4,247

 
(2
)%
 
Commercial
477,319

 
481,778

 
(1
)%
Industrial
2,675

 
2,563

 
4
 %
 
Industrial
210,984

 
202,742

 
4
 %
Other
216

 
221

 
(2
)%
 
Other
26,870

 
26,338

 
2
 %
 
10,394

 
10,618

 
(2
)%
 
 
$
1,247,606

 
$
1,234,716

 
1
 %
Choice
1,287

 
1,312

 
(2
)%
 
Choice
24,222

 
23,155

 
5
 %
TOTAL SALES
11,681

 
11,930

 
(2
)%
 
TOTAL REVENUES
$
1,271,828

 
$
1,257,871

 
1
 %

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2013
 
Q2 2012
 
% Change
 
 
Q2 2013
 
Q2 2012
 
% Change
Residential
14,192

 
11,269

 
26
 %
 
Residential
$
137,548

 
$
118,469

 
16
 %
Commercial
3,024

 
2,394

 
26
 %
 
Commercial
28,406

 
23,214

 
22
 %
Industrial
85

 
393

 
(78
)%
 
Industrial
637

 
3,155

 
(80
)%
 
17,301

 
14,056

 
23
 %
 
 
$
166,591

 
$
144,838

 
15
 %
End User Transportation*
32,043

 
33,804

 
(5
)%
 
End User Transportation*
44,637

 
39,587

 
13
 %
TOTAL SALES
49,344

 
47,860

 
3
 %
 
TOTAL REVENUES
$
211,228

 
$
184,425

 
15
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
Q2 2013
 
Q2 2012
 
% Change
 
 
Q2 2013
 
Q2 2012
 
% Change
Actuals**
205

 
331

 
(38
)%
 
Actuals
818

 
653

 
25
 %
Normal
215

 
215

 
—
 %
 
Normal
757

 
781

 
(3
)%
Deviation from normal
(5
)%
 
54
%
 
 
 
Deviation from normal
8
%
 
(16
)%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
Q2 2013
 
Q2 2012
DTE Electric
$
(2
)
 
$
21

DTE Gas
4

 
(2
)
________________
 
 
 
** 2013 CDDs adjusted/normalized to reflect actual customer response to weather; AMI usage data demonstrates non-linear response to weather variation










Sales Analysis - YTD June 30, 2013
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2013
 
YTD 2012
 
% Change
 
 
YTD 2013
 
YTD 2012
 
% Change
Residential
7,199

 
7,287

 
(1
)%
 
Residential
$
1,111,169

 
$
1,087,273

 
2
 %
Commercial
8,081

 
8,132

 
(1
)%
 
Commercial
918,748

 
920,445

 
—
 %
Industrial
5,111

 
4,938

 
4
 %
 
Industrial
397,238

 
390,408

 
2
 %
Other
468

 
479

 
(2
)%
 
Other
53,334

 
52,803

 
1
 %
 
20,859

 
20,836

 
—
 %
 
 
$
2,480,489

 
$
2,450,929

 
1
 %
Choice
2,547

 
2,567

 
(1
)%
 
Choice
47,242

 
44,625

 
6
 %
TOTAL SALES
23,406

 
23,403

 
—
 %
 
TOTAL REVENUES
$
2,527,731

 
$
2,495,554

 
1
 %

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2013
 
YTD 2012
 
% Change
 
 
YTD 2013
 
YTD 2012
 
% Change
Residential
59,749

 
48,062

 
24
 %
 
Residential
$
507,531

 
$
440,114

 
15
 %
Commercial
13,683

 
11,046

 
24
 %
 
Commercial
113,142

 
96,209

 
18
 %
Industrial
302

 
628

 
(52
)%
 
Industrial
2,274

 
4,960

 
(54
)%
 
73,734

 
59,736

 
23
 %
 
 
$
622,947

 
$
541,283

 
15
 %
End User Transportation*
87,607

 
81,818

 
7
 %
 
End User Transportation*
129,798

 
112,763

 
15
 %
TOTAL SALES
161,341

 
141,554

 
14
 %
 
TOTAL REVENUES
$
752,745

 
$
654,046

 
15
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
YTD 2013
 
YTD 2012
 
% Change
 
 
YTD 2013
 
YTD 2012
 
% Change
Actuals**
205

 
347

 
(41
)%
 
Actuals
4,046

 
3,178

 
27
 %
Normal
215

 
215

 
—
 %
 
Normal
3,898

 
4,006

 
(3
)%
Deviation from normal
(5
)%
 
61
%
 
 
 
Deviation from normal
4
%
 
(21
)%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
YTD 2013
 
YTD 2012
DTE Electric
$
(2
)
 
$
10

DTE Gas
7

 
(25
)
________________
 
 
 
** 2013 CDDs adjusted/normalized to reflect actual customer response to weather; AMI usage data demonstrates non-linear response to weather variation






DTE Electric Temperature Normal Sales Analysis - YTD June 30, 2013
 
 
 
Temperature Normal Electric Sales -
DTE Electric Service Area (GWh)
 
Temperature Normal Electric Sales - DTE Electric
Service Area (Includes Electric Choice) (GWh)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2013
 
YTD 2012
 
% Change
 
 
YTD 2013
 
YTD 2012
 
% Change
Residential
7,224

 
7,218

 
—
 %
 
Residential
7,224

 
7,218

 
—
 %
Commercial
8,091

 
7,974

 
1
 %
 
Commercial
9,576

 
9,465

 
1
 %
Industrial
5,111

 
4,920

 
4
 %
 
Industrial
6,173

 
5,961

 
4
 %
Other
469

 
479

 
(2
)%
 
Other
469

 
479

 
(2
)%
 
20,895

 
20,591

 
1
 %
 
TOTAL SALES
23,442

 
23,123

 
1
 %
Choice
2,547

 
2,532

 
1
 %
 
 
 
 
 
 
 
TOTAL SALES
23,442

 
23,123

 
1
 %