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






DTE Energy Company
Consolidated Statements of Financial Position
 
December 31,
 
2013
 
2012
 
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
52

 
$
65

Restricted cash, principally Securitization
123

 
122

Accounts receivable (less allowance for doubtful accounts of $55 and $62, respectively)
 
 
 
Customer
1,542

 
1,336

Other
127

 
126

Inventories
 
 
 
Fuel and gas
363

 
527

Materials and supplies
265

 
234

Derivative assets
99

 
108

Regulatory assets
26

 
182

Other
209

 
215

 
2,806

 
2,915

Investments
 
 
 
Nuclear decommissioning trust funds
1,191

 
1,037

Other
603

 
554

 
1,794

 
1,591

Property
 
 
 
Property, plant and equipment
25,123

 
23,631

Less accumulated depreciation, depletion and amortization
(9,323
)
 
(8,947
)
 
15,800

 
14,684

Other Assets
 
 
 
Goodwill
2,018

 
2,018

Regulatory assets
2,837

 
4,235

Securitized regulatory assets
231

 
413

Intangible assets
122

 
135

Notes receivable
102

 
112

Derivative assets
27

 
39

Other
198

 
197

 
5,535

 
7,149

Total Assets
$
25,935

 
$
26,339







DTE Energy Company
Consolidated Statements of Financial Position — (Continued)
 
December 31,
 
2013
 
2012
 
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
962

 
$
848

Accrued interest
90

 
93

Dividends payable
116

 
107

Short-term borrowings
131

 
240

Current portion long-term debt, including capital leases
898

 
817

Derivative liabilities
195

 
125

Regulatory liabilities
302

 
89

Other
495

 
449

 
3,189

 
2,768

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,618

 
6,220

Securitization bonds
105

 
302

Junior subordinated debentures
480

 
480

Capital lease obligations
11

 
12

 
7,214

 
7,014

Other Liabilities
 

 
 

Deferred income taxes
3,321

 
3,191

Regulatory liabilities
862

 
1,031

Asset retirement obligations
1,827

 
1,719

Unamortized investment tax credit
47

 
56

Derivative liabilities
43

 
26

Accrued pension liability
653

 
1,498

Accrued postretirement liability
350

 
1,160

Nuclear decommissioning
178

 
159

Other
297

 
306

 
7,578

 
9,146

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 177,087,230 and 172,351,680 shares issued and outstanding, respectively
3,907

 
3,587

Retained earnings
4,150

 
3,944

Accumulated other comprehensive loss
(136
)
 
(158
)
Total DTE Energy Company Equity
7,921

 
7,373

Noncontrolling interests
33

 
38

Total Equity
7,954

 
7,411

Total Liabilities and Equity
$
25,935

 
$
26,339





DTE Energy Company
Consolidated Statements of Cash Flows
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(In millions)
Operating Activities
 
 
 
 
 
Net income
$
668

 
$
618

 
$
720

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
 
 
Depreciation, depletion and amortization
1,094

 
1,018

 
995

Nuclear fuel amortization
38

 
29

 
46

Allowance for equity funds used during construction
(15
)
 
(13
)
 
(6
)
Deferred income taxes
164

 
47

 
220

Loss on sale of non-utility business
—

 
83

 
—

Asset (gains) and losses, reserves and impairments, net
(8
)
 
1

 
(21
)
Changes in assets and liabilities:
 
 
 
 
 
Accounts receivable, net
(154
)
 
52

 
71

Inventories
123

 
35

 
(129
)
Accounts payable
14

 
40

 
(23
)
Derivative assets and liabilities
107

 
53

 
(94
)
Accrued pension obligation
(644
)
 
280

 
432

Accrued postretirement obligation
(526
)
 
(323
)
 
209

Regulatory assets and liabilities
1,269

 
278

 
(662
)
Other assets
(24
)
 
55

 
44

Other liabilities
48

 
(44
)
 
206

Net cash from operating activities
2,154

 
2,209

 
2,008

Investing Activities
 
 
 
 
 
Plant and equipment expenditures — utility
(1,534
)
 
(1,451
)
 
(1,382
)
Plant and equipment expenditures — non-utility
(342
)
 
(369
)
 
(102
)
Proceeds from sale of non-utility business
—

 
255

 
—

Proceeds from sale of assets
36

 
38

 
18

Restricted cash for debt redemption, principally Securitization
(1
)
 
2

 
(5
)
Acquisition, net of cash acquired
—

 
(198
)
 
—

Proceeds from sale of nuclear decommissioning trust fund assets
1,118

 
759

 
833

Investment in nuclear decommissioning trust funds
(1,134
)
 
(764
)
 
(850
)
Other
(49
)
 
(41
)
 
(72
)
Net cash used for investing activities
(1,906
)
 
(1,769
)
 
(1,560
)
Financing Activities
 
 
 
 
 
Issuance of long-term debt, net of issuance costs
1,234

 
759

 
1,179

Redemption of long-term debt
(961
)
 
(639
)
 
(1,455
)
Short-term borrowings, net
(109
)
 
(179
)
 
269

Issuance of common stock
39

 
39

 
—

Repurchase of common stock
—

 
—

 
(18
)
Dividends on common stock
(445
)
 
(407
)
 
(389
)
Other
(19
)
 
(16
)
 
(31
)
Net cash used for financing activities
(261
)
 
(443
)
 
(445
)
Net Increase (Decrease) in Cash and Cash Equivalents
(13
)
 
(3
)
 
3

Cash and Cash Equivalents at Beginning of Period
65

 
68

 
65

Cash and Cash Equivalents at End of Period
$
52

 
$
65

 
$
68







DTE Electric Company
Consolidated Statements of Operations
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(In millions)
Operating Revenues
$
5,197

 
$
5,291

 
$
5,152

Operating Expenses
 
 
 
 
 
Fuel and purchased power
1,668

 
1,758

 
1,716

Operation and maintenance
1,376

 
1,429

 
1,369

Depreciation and amortization
896

 
822

 
813

Taxes other than income
260

 
256

 
240

Asset (gains) losses and reserves, net
(3
)
 
(2
)
 
12

 
4,197

 
4,263

 
4,150

Operating Income
1,000

 
1,028

 
1,002

Other (Income) and Deductions
 
 
 
 
 
Interest expense
268

 
272

 
289

Interest income
—

 
(1
)
 
—

Other income
(54
)
 
(53
)
 
(47
)
Other expenses
45

 
42

 
56

 
259

 
260

 
298

Income Before Income Taxes
741

 
768

 
704

Income Tax Expense
254

 
282

 
267

Net Income
$
487

 
$
486

 
$
437






DTE Gas Company
Consolidated Statements of Operations
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(In millions)
Operating Revenues
$
1,448

 
$
1,293

 
$
1,483

Operating Expenses
 
 
 
 
 
Cost of gas
607

 
536

 
729

Operation and maintenance
423

 
380

 
390

Depreciation and amortization
95

 
92

 
89

Taxes other than income
56

 
53

 
53

 
1,181

 
1,061

 
1,261

Operating Income
267

 
232

 
222

Other (Income) and Deductions
 
 
 
 
 
Interest expense
58

 
59

 
63

Interest income
(7
)
 
(7
)
 
(7
)
Other income
(9
)
 
(9
)
 
(7
)
Other expenses
7

 
25

 
5

 
49

 
68

 
54

Income Before Income Taxes
218

 
164

 
168

Income Tax Expense
77

 
50

 
59

Net Income
$
141

 
$
114

 
$
109







DTE Energy Debt/Equity Calculation
As of December 31, 2013
($ millions)

Short-term borrowings
$
131

Current portion of long-term debt, including capital leases
898

Mortgage bonds, notes and other
6,618

Securitization bonds, excluding current portion
105

Capital lease obligations
11

Other adjustments
192

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

Total debt
7,893

 
 
50% Junior Subordinated Debentures
240

Common equity
7,954

Total adjusted equity
8,194

 
 
Total capitalization
$
16,087

 
 
Debt
49.1
%
Adjusted equity
50.9
%
 
 
Total
100
%




Sales Analysis - Q4 2013
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2013
 
Q4 2012
 
% Change
 
 
Q4 2013
 
Q4 2012
 
% Change
Residential
3,673

 
3,486

 
5
 %
 
Residential
$
566,727

 
$
530,776

 
7
 %
Commercial
4,076

 
4,099

 
(1
)%
 
Commercial
455,874

 
461,966

 
(1
)%
Industrial
2,557

 
2,344

 
9
 %
 
Industrial
197,806

 
187,118

 
6
 %
Other
241

 
241

 
—
 %
 
Other
26,552

 
26,153

 
2
 %
 
10,547

 
10,170

 
4
 %
 
 
$
1,246,959

 
$
1,206,013

 
3
 %
Choice
1,260

 
1,258

 
—
 %
 
Choice
23,704

 
23,829

 
(1
)%
TOTAL SALES
11,807

 
11,428

 
3
 %
 
TOTAL REVENUES
$
1,270,663

 
$
1,229,842

 
3
 %

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2013
 
Q4 2012
 
% Change
 
 
Q4 2013
 
Q4 2012
 
% Change
Residential
33,756

 
28,985

 
16
 %
 
Residential
$
273,728

 
$
252,950

 
8
 %
Commercial
7,441

 
6,188

 
20
 %
 
Commercial
58,572

 
52,771

 
11
 %
Industrial
160

 
166

 
(4
)%
 
Industrial
1,163

 
1,290

 
(10
)%
 
41,357

 
35,339

 
17
 %
 
 
$
333,463

 
$
307,011

 
9
 %
End User Transportation*
45,791

 
41,829

 
9
 %
 
End User Transportation*
62,006

 
60,805

 
2
 %
TOTAL SALES
87,148

 
77,168

 
13
 %
 
TOTAL REVENUES
$
395,469

 
$
367,816

 
8
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
Q4 2013
 
Q4 2012
 
% Change
 
 
Q4 2013
 
Q4 2012
 
% Change
Actuals
—

 
—

 
—
%
 
Actuals
2,427

 
2,088

 
16
%
Normal
—

 
—

 


 
Normal
2,187

 
2,208

 


Deviation from normal
—
%
 
—
%
 
 
 
Deviation from normal
11
%
 
(5
)%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
Q4 2013
 
Q4 2012
DTE Electric
$
5

 
$
(5
)
DTE Gas
11

 
(3
)
 
 
 
 
 










Sales Analysis - YTD December 31, 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
15,273

 
15,666

 
(3
)%
 
Residential
$
2,350,798

 
$
2,354,092

 
—
 %
Commercial
16,661

 
16,832

 
(1
)%
 
Commercial
1,883,144

 
1,897,868

 
(1
)%
Industrial
10,303

 
9,989

 
3
 %
 
Industrial
798,650

 
783,668

 
2
 %
Other
942

 
958

 
(2
)%
 
Other
107,571

 
105,863

 
2
 %
 
43,179

 
43,445

 
(1
)%
 
 
$
5,140,163

 
$
5,141,491

 
—
 %
Choice
5,200

 
5,197

 
—
 %
 
Choice
96,735

 
92,138

 
5
 %
TOTAL SALES
48,379

 
48,642

 
(1
)%
 
TOTAL REVENUES
$
5,236,898

 
$
5,233,629

 
—
 %

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
102,176

 
82,990

 
23
 %
 
Residential
$
868,176

 
$
769,446

 
13
 %
Commercial
22,421

 
18,484

 
21
 %
 
Commercial
186,338

 
163,512

 
14
 %
Industrial
575

 
885

 
(35
)%
 
Industrial
4,254

 
6,966

 
(39
)%
 
125,172

 
102,359

 
22
 %
 
 
$
1,058,768

 
$
939,924

 
13
 %
End User Transportation*
157,322

 
156,637

 
—
 %
 
End User Transportation*
223,668

 
207,301

 
8
 %
TOTAL SALES
282,494

 
258,996

 
9
 %
 
TOTAL REVENUES
$
1,282,436

 
$
1,147,225

 
12
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* 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
865

 
1,123

 
(23
)%
 
Actuals
6,616

 
5,410

 
22
%
Normal
803

 
736

 


 
Normal
6,207

 
6,339

 


Deviation from normal
8
%
 
53
%
 
 
 
Deviation from normal
7
%
 
(15
)%
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather ($ millions, after-tax)
 
 
 
 
YTD 2013
 
YTD 2012
DTE Electric
$
4

 
$
45

DTE Gas
19

 
(28
)
 
 
 
 
 






DTE Electric Temperature Normal Sales Analysis - YTD December 31, 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
15,248

 
15,061

 
1
 %
 
Residential
15,249

 
15,062

 
1
 %
Commercial
16,682

 
16,428

 
2
 %
 
Commercial
19,800

 
19,573

 
1
 %
Industrial
10,305

 
9,946

 
4
 %
 
Industrial
12,388

 
11,909

 
4
 %
Other
942

 
958

 
(2
)%
 
Other
942

 
958

 
(2
)%
 
43,177

 
42,393

 
2
 %
 
TOTAL SALES
48,379

 
47,502

 
2
 %
Choice
5,202

 
5,109

 
2
 %
 
 
 
 
 
 
 
TOTAL SALES
48,379

 
47,502

 
2
 %