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,
 
2013
 
2012
 
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
71

 
$
65

Restricted cash, principally Securitization
64

 
122

Accounts receivable (less allowance for doubtful accounts of $67 and $62, respectively)
 
 
 
Customer
1,239

 
1,336

Other
81

 
126

Inventories
 
 
 
Fuel and gas
467

 
527

Materials and supplies
258

 
234

Deferred income taxes
—

 
21

Derivative assets
72

 
108

Regulatory assets
49

 
182

Other
248

 
194

 
2,549

 
2,915

Investments
 
 
 
Nuclear decommissioning trust funds
1,139

 
1,037

Other
584

 
554

 
1,723

 
1,591

Property
 
 
 
Property, plant and equipment
24,795

 
23,631

Less accumulated depreciation, depletion and amortization
(9,284
)
 
(8,947
)
 
15,511

 
14,684

Other Assets
 
 
 
Goodwill
2,018

 
2,018

Regulatory assets
3,700

 
4,235

Securitized regulatory assets
280

 
413

Intangible assets
122

 
135

Notes receivable
104

 
112

Derivative assets
26

 
39

Other
198

 
197

 
6,448

 
7,149

Total Assets
$
26,231

 
$
26,339







DTE Energy Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)
 
September 30,
 
December 31,
 
2013
 
2012
 
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
866

 
$
848

Accrued interest
114

 
93

Dividends payable
116

 
107

Short-term borrowings
271

 
240

Current portion long-term debt, including capital leases
896

 
817

Derivative liabilities
58

 
125

Regulatory liabilities
230

 
89

Other
457

 
449

 
3,008

 
2,768

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,253

 
6,220

Securitization bonds
105

 
302

Junior subordinated debentures
480

 
480

Capital lease obligations
8

 
12

 
6,846

 
7,014

Other Liabilities
 

 
 

Deferred income taxes
3,290

 
3,191

Regulatory liabilities
907

 
1,031

Asset retirement obligations
1,800

 
1,719

Unamortized investment tax credit
49

 
56

Derivative liabilities
21

 
26

Accrued pension liability
1,254

 
1,498

Accrued postretirement liability
684

 
1,160

Nuclear decommissioning
172

 
159

Other
290

 
306

 
8,467

 
9,146

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 176,797,248 and 172,351,680 shares issued and outstanding, respectively
3,885

 
3,587

Retained earnings
4,142

 
3,944

Accumulated other comprehensive loss
(151
)
 
(158
)
Total DTE Energy Company Equity
7,876

 
7,373

Noncontrolling interests
34

 
38

Total Equity
7,910

 
7,411

Total Liabilities and Equity
$
26,231

 
$
26,339





DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
 
Nine Months Ended September 30,
 
2013
 
2012
 
(In millions)
Operating Activities
 
 
 
Net income
$
542

 
$
535

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
Depreciation, depletion and amortization
811

 
747

Nuclear fuel amortization
25

 
25

Allowance for equity funds used during construction
(10
)
 
(10
)
Deferred income taxes
162

 
96

Asset (gains) and losses, reserves and impairments, net
(5
)
 
(7
)
Changes in assets and liabilities:
 
 
 
Accounts receivable, net
177

 
237

Inventories
35

 
5

Accounts payable
(16
)
 
(35
)
Derivative assets and liabilities
(23
)
 
38

Accrued pension obligation
(44
)
 
(3
)
Accrued postretirement obligation
(191
)
 
(143
)
Regulatory assets and liabilities
327

 
286

Other assets
(62
)
 
(2
)
Other liabilities
(13
)
 
(40
)
Net cash from operating activities
1,715

 
1,729

Investing Activities
 
 
 
Plant and equipment expenditures — utility
(1,101
)
 
(1,008
)
Plant and equipment expenditures — non-utility
(270
)
 
(214
)
Proceeds from sale of assets
20

 
20

Restricted cash for debt redemption, principally Securitization
58

 
55

Proceeds from sale of nuclear decommissioning trust fund assets
40

 
48

Investment in nuclear decommissioning trust funds
(52
)
 
(61
)
Other
(32
)
 
(24
)
Net cash used for investing activities
(1,337
)
 
(1,184
)
Financing Activities
 
 
 
Issuance of long-term debt
768

 
495

Redemption of long-term debt
(855
)
 
(447
)
Short-term borrowings, net
31

 
(321
)
Issuance of common stock
29

 
29

Dividends on common stock
(329
)
 
(300
)
Other
(16
)
 
(10
)
Net cash used for financing activities
(372
)
 
(554
)
Net Increase (Decrease) in Cash and Cash Equivalents
6

 
(9
)
Cash and Cash Equivalents at Beginning of Period
65

 
68

Cash and Cash Equivalents at End of Period
$
71

 
$
59







DTE Electric Company
Consolidated Statements of Operations (Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
 
(In millions)
Operating Revenues
$
1,457

 
$
1,542

 
$
3,941

 
$
4,029

Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
487

 
543

 
1,294

 
1,348

Operation and maintenance
335

 
337

 
1,009

 
1,026

Depreciation and amortization
233

 
219

 
666

 
607

Taxes other than income
67

 
65

 
200

 
193

Asset (gains) losses and reserves, net
(3
)
 
—

 
(3
)
 
(1
)
 
1,119

 
1,164

 
3,166

 
3,173

Operating Income
338

 
378

 
775

 
856

Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
68

 
70

 
202

 
204

Other income
(14
)
 
(14
)
 
(38
)
 
(41
)
Other expenses
7

 
12

 
19

 
27

 
61

 
68

 
183

 
190

Income Before Income Taxes
277

 
310

 
592

 
666

Income Tax Expense
97

 
115

 
206

 
247

Net Income
$
180

 
$
195

 
$
386

 
$
419






DTE Gas Company
Consolidated Statements of Operations (Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
 
(In millions)
Operating Revenues
$
158

 
$
157

 
$
995

 
$
867

Operating Expenses
 
 
 
 
 
 
 
Cost of gas
27

 
20

 
397

 
350

Operation and maintenance
104

 
88

 
312

 
282

Depreciation and amortization
23

 
23

 
70

 
69

Taxes other than income
12

 
10

 
43

 
41

 
166

 
141

 
822

 
742

Operating Income (Loss)
(8
)
 
16

 
173

 
125

Other (Income) and Deductions
 
 
 
 
 
 
 
Interest expense
14

 
14

 
43

 
43

Interest income
(2
)
 
(2
)
 
(5
)
 
(5
)
Other income
(2
)
 
(2
)
 
(6
)
 
(7
)
Other expenses
1

 
1

 
2

 
3

 
11

 
11

 
34

 
34

Income (Loss) Before Income Taxes
(19
)
 
5

 
139

 
91

Income Tax Expense (Benefit)
(7
)
 
2

 
49

 
32

Net Income (Loss)
$
(12
)
 
$
3

 
$
90

 
$
59







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

Short-term borrowings
$
271

Current portion of long-term debt, including capital leases
896

Mortgage bonds, notes and other
6,253

Securitization bonds, excluding current portion
105

Capital lease obligations
8

Other adjustments
99

less Securitization bonds, including current portion
(302
)
50% Junior Subordinated Debentures
240

Total debt
7,570

 
 
50% Junior Subordinated Debentures
240

Common equity
7,910

Total adjusted equity
8,150

 
 
Total capitalization
$
15,720

 
 
Debt
48.2
%
Adjusted equity
51.8
%
 
 
Total
100
%




Sales Analysis - Q3 2013
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2013
 
Q3 2012
 
% Change
 
 
Q3 2013
 
Q3 2012
 
% Change
Residential
4,401

 
4,893

 
(10
)%
 
Residential
$
672,902

 
$
736,043

 
(9
)%
Commercial
4,504

 
4,601

 
(2
)%
 
Commercial
508,522

 
515,457

 
(1
)%
Industrial
2,635

 
2,707

 
(3
)%
 
Industrial
203,606

 
206,142

 
(1
)%
Other
233

 
238

 
(2
)%
 
Other
27,685

 
26,907

 
3
 %
 
11,773

 
12,439

 
(5
)%
 
 
$
1,412,715

 
$
1,484,549

 
(5
)%
Choice
1,393

 
1,372

 
2
 %
 
Choice
25,789

 
23,684

 
9
 %
TOTAL SALES
13,166

 
13,811

 
(5
)%
 
TOTAL REVENUES
$
1,438,504

 
$
1,508,233

 
(5
)%

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2013
 
Q3 2012
 
% Change
 
 
Q3 2013
 
Q3 2012
 
% Change
Residential
8,671

 
5,943

 
46
 %
 
Residential
$
86,918

 
$
76,382

 
14
 %
Commercial
1,297

 
1,250

 
4
 %
 
Commercial
14,625

 
14,532

 
1
 %
Industrial
113

 
90

 
26
 %
 
Industrial
817

 
716

 
14
 %
 
10,081

 
7,283

 
38
 %
 
 
$
102,360

 
$
91,630

 
12
 %
End User Transportation*
23,924

 
32,991

 
(27
)%
 
End User Transportation*
31,865

 
33,733

 
(6
)%
TOTAL SALES
34,005

 
40,274

 
(16
)%
 
TOTAL REVENUES
$
134,225

 
$
125,363

 
7
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
Q3 2013
 
Q3 2012
 
% Change
 
 
Q3 2013
 
Q3 2012
 
% Change
Actuals
583

 
768

 
(24
)%
 
Actuals
143

 
144

 
(1
)%
Normal
580

 
537

 


 
Normal
122

 
125

 


Deviation from normal
1
%
 
43
%
 
 
 
Deviation from normal
17
%
 
15
%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
Q3 2013
 
Q3 2012
DTE Electric
$
—

 
$
40

DTE Gas
1

 
1

 
 
 
 
 










Sales Analysis - YTD September 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
11,600

 
12,180

 
(5
)%
 
Residential
$
1,784,071

 
$
1,823,316

 
(2
)%
Commercial
12,585

 
12,734

 
(1
)%
 
Commercial
1,427,270

 
1,435,902

 
(1
)%
Industrial
7,746

 
7,645

 
1
 %
 
Industrial
600,844

 
596,550

 
1
 %
Other
701

 
717

 
(2
)%
 
Other
81,019

 
79,710

 
2
 %
 
32,632

 
33,276

 
(2
)%
 
 
$
3,893,204

 
$
3,935,478

 
(1
)%
Choice
3,940

 
3,938

 
—
 %
 
Choice
73,031

 
68,309

 
7
 %
TOTAL SALES
36,572

 
37,214

 
(2
)%
 
TOTAL REVENUES
$
3,966,235

 
$
4,003,787

 
(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
68,420

 
54,005

 
27
 %
 
Residential
$
594,449

 
$
516,496

 
15
 %
Commercial
14,980

 
12,296

 
22
 %
 
Commercial
127,767

 
110,741

 
15
 %
Industrial
415

 
719

 
(42
)%
 
Industrial
3,092

 
5,676

 
(46
)%
 
83,815

 
67,020

 
25
 %
 
 
$
725,308

 
$
632,913

 
15
 %
End User Transportation*
111,531

 
114,808

 
(3
)%
 
End User Transportation*
161,663

 
146,496

 
10
 %
TOTAL SALES
195,346

 
181,828

 
7
 %
 
TOTAL REVENUES
$
886,971

 
$
779,409

 
14
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* 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
846

 
1,114

 
(24
)%
 
Actuals
4,189

 
3,322

 
26
%
Normal
795

 
730

 


 
Normal
4,020

 
4,131

 


Deviation from normal
6
%
 
53
%
 
 
 
Deviation from normal
4
%
 
(20
)%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
YTD 2013
 
YTD 2012
DTE Electric
$
(1
)
 
$
50

DTE Gas
8

 
(25
)
 
 
 
 
 






DTE Electric Temperature Normal Sales Analysis - YTD September 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
11,666

 
11,478

 
2
 %
 
Residential
11,666

 
11,479

 
2
 %
Commercial
12,610

 
12,331

 
2
 %
 
Commercial
14,945

 
14,621

 
2
 %
Industrial
7,747

 
7,603

 
2
 %
 
Industrial
9,355

 
9,163

 
2
 %
Other
702

 
717

 
(2
)%
 
Other
702

 
717

 
(2
)%
 
32,725

 
32,129

 
2
 %
 
TOTAL SALES
36,668

 
35,980

 
2
 %
Choice
3,943

 
3,851

 
2
 %
 
 
 
 
 
 
 
TOTAL SALES
36,668

 
35,980

 
2
 %