EX-99.2 3 c12045exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
(IMAGE)
Supplemental Financial Information

 

 


 

DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
                 
    December 31  
(in Millions)   2010     2009  
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 65     $ 52  
Restricted cash
    120       84  
Accounts receivable (less allowance for doubtful accounts of $196 and $262, respectively)
               
Customer
    1,393       1,438  
Other
    402       217  
Inventories
               
Fuel and gas
    460       309  
Materials and supplies
    202       200  
Deferred income taxes
    139       167  
Derivative assets
    131       209  
Other
    255       201  
 
           
 
    3,167       2,877  
 
           
Investments
               
Nuclear decommissioning trust funds
    939       817  
Other
    518       598  
 
           
 
    1,457       1,415  
 
           
Property
               
Property, plant and equipment
    21,574       20,588  
Less accumulated depreciation, depletion and amortization
    (8,582 )     (8,157 )
 
           
 
    12,992       12,431  
 
           
Other Assets
               
Goodwill
    2,020       2,024  
Regulatory assets
    4,058       4,110  
Securitized regulatory assets
    729       870  
Intangible assets
    67       54  
Notes receivable
    123       113  
Derivative assets
    77       116  
Other
    206       185  
 
           
 
    7,280       7,472  
 
           
Total Assets
  $ 24,896     $ 24,195  
 
           

 

 


 

DTE Energy Company
Consolidated Statements of Financial Position — (unaudited)
                 
    December 31  
(in Millions, except shares)   2010     2009  
LIABILITIES AND EQUITY
               
Current Liabilities
               
Accounts payable
  $ 729     $ 723  
Accrued interest
    111       114  
Dividends payable
    95       88  
Short-term borrowings
    150       327  
Current portion long-term debt, including capital leases
    925       671  
Derivative liabilities
    142       220  
Other
    597       502  
 
           
 
    2,749       2,645  
 
           
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    6,114       6,237  
Securitization bonds
    643       793  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    43       51  
 
           
 
    7,089       7,370  
 
           
Other Liabilities
               
Deferred income taxes
    2,632       2,096  
Regulatory liabilities
    1,328       1,337  
Asset retirement obligations
    1,498       1,420  
Unamortized investment tax credit
    75       85  
Derivative liabilities
    110       198  
Liabilities from transportation and storage contracts
    83       96  
Accrued pension liability
    866       881  
Accrued postretirement liability
    1,275       1,287  
Nuclear decommissioning
    149       136  
Other
    275       328  
 
           
 
    8,291       7,864  
 
           
Commitments and Contingencies
               
 
Equity
               
Common stock, without par value, 400,000,000 shares authorized, 169,428,406 and 165,400,045 shares issued and outstanding, respectively
    3,440       3,257  
Retained earnings
    3,431       3,168  
Accumulated other comprehensive loss
    (149 )     (147 )
 
           
Total DTE Energy Company Shareholders’ Equity
    6,722       6,278  
Noncontrolling interests
    45       38  
 
           
Total Equity
    6,767       6,316  
 
           
Total Liabilities and Equity
  $ 24,896     $ 24,195  
 
           

 

 


 

DTE Energy Company
Consolidated Statements of Cash Flows (unaudited)
                         
    Year Ended December 31  
    2010     2009     2008  
    (in Millions)  
Operating Activities
                       
Net income
  $ 639     $ 535     $ 553  
Adjustments to reconcile net income to net cash from operating activities:
                       
Depreciation, depletion and amortization
    1,027       1,020       899  
Deferred income taxes
    457       205       348  
Gain on sale of non-utility business
                (128 )
Other asset (gains), losses and reserves, net
    (5 )     (10 )     (4 )
Gain on sale of interests in synfuel projects
                (31 )
Contributions from synfuel partners
                14  
Changes in assets and liabilities, exclusive of changes shown separately
    (293 )     69       (92 )
 
                 
Net cash from operating activities
    1,825       1,819       1,559  
 
                 
Investing Activities
                       
Plant and equipment expenditures — utility
    (1,011 )     (960 )     (1,183 )
Plant and equipment expenditures — non-utility
    (88 )     (75 )     (190 )
Proceeds from sale of interests in synfuel projects
                84  
Refunds to synfuel partners
                (387 )
Proceeds from sale of non-utility business
                253  
Proceeds from sale of other assets, net
    56       83       25  
Restricted cash for debt redemption
    (32 )     2       54  
Proceeds from sale of nuclear decommissioning trust fund assets
    377       295       232  
Investment in nuclear decommissioning trust funds
    (410 )     (315 )     (255 )
Consolidation of VIEs
    19              
Investment in Millennium Pipeline Project
    (49 )     (15 )     (31 )
Other investments
    (88 )     (79 )     (125 )
 
                 
Net cash used for investing activities
    (1,226 )     (1,064 )     (1,523 )
 
                 
Financing Activities
                       
Issuance of long-term debt
    614       427       1,310  
Redemption of long-term debt
    (663 )     (486 )     (446 )
Repurchase of long-term debt
                (238 )
Short-term borrowings, net
    (177 )     (417 )     (340 )
Issuance of common stock
    36       35        
Repurchase of common stock
                (16 )
Dividends on common stock
    (360 )     (348 )     (344 )
Other
    (36 )           (10 )
 
                 
Net cash used for financing activities
    (586 )     (789 )     (84 )
 
                 
 
                       
Net Increase (Decrease) in Cash and Cash Equivalents
    13       (34 )     (48 )
Cash and Cash Equivalents Reclassified from Assets Held for Sale
                11  
Cash and Cash Equivalents at Beginning of Period
    52       86       123  
 
                 
Cash and Cash Equivalents at End of Period
  $ 65     $ 52     $ 86  
 
                 

 

 


 

The Detroit Edison Company
Consolidated Statements of Operations (unaudited)
                         
    Year Ended December 31  
(in Millions)   2010     2009     2008  
Operating Revenues
  $ 4,993     $ 4,714     $ 4,874  
 
                 
 
                       
Operating Expenses
                       
Fuel and purchased power
    1,580       1,491       1,778  
Operation and maintenance
    1,305       1,277       1,322  
Depreciation and amortization
    849       844       743  
Taxes other than income
    237       205       232  
Asset (gains) losses and reserves, net
    (6 )     (2 )     (1 )
 
                 
 
    3,965       3,815       4,074  
 
                 
 
                       
Operating Income
    1,028       899       800  
 
                 
 
                       
Other (Income) and Deductions
                       
Interest expense
    313       325       293  
Interest income
    (1 )     (2 )     (6 )
Other income
    (39 )     (39 )     (51 )
Other expenses
    44       11       47  
 
                 
 
    317       295       283  
 
                 
 
                       
Income Before Income Taxes
    711       604       517  
 
                       
Income Tax Provision
    270       228       186  
 
                 
 
                       
Net Income
  $ 441     $ 376     $ 331  
 
                 

 

 


 

MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                         
    Year Ended December 31  
(in Millions)   2010     2009     2008  
Operating Revenues
  $ 1,628     $ 1,765     $ 2,115  
 
                 
 
                       
Operating Expenses
                       
Cost of gas
    855       1,037       1,351  
Operation and maintenance
    373       411       464  
Depreciation and amortization
    92       109       102  
Taxes other than income
    54       48       47  
Asset gains, net
          (30 )     (26 )
 
                 
 
                       
 
    1,374       1,575       1,938  
 
                 
 
                       
Operating Income
    254       190       177  
 
                 
 
                       
Other (Income) and Deductions
                       
Interest expense
    66       67       65  
Interest income
    (9 )     (8 )     (8 )
Other income
    (6 )     (8 )     (11 )
Other expenses
    5       6       13  
 
                 
 
                       
 
    56       57       59  
 
                 
 
                       
Income Before Income Taxes
    198       133       118  
Income Tax Provision
    68       40       38  
 
                 
 
                       
Net Income
  $ 130     $ 93     $ 80  
 
                 

 

 


 

(DTE ENERGY LOGO)
DTE Energy Debt/Equity Calculation
As of December 31, 2010
($ millions)
         
Short-term borrowings
  $ 150  
Current portion of long-term debt, including capital leases
    925  
Mortgage bonds, notes and other
    6,114  
Securitization bonds, excluding current portion
    643  
Capital lease obligations
    43  
Other adjustments
    58  
less Securitization bonds, including current portion
    (793 )
50% Trust preferred-linked securities
    144  
 
     
Total debt
    7,284  
 
       
50% Trust preferred-linked securities
    144  
 
     
Total preferred/ other
    144  
 
       
Equity
    6,722  
 
     
 
       
Total capitalization
  $ 14,150  
 
     
 
       
Debt
    51 %
Preferred
    1 %
Common shareholders’ equity
    48 %
 
     
 
       
Total
    100 %
 
     

 

 


 

(DTE ENERGY LOGO)
Sales Analysis — Q4 2010
Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    3,425       3,633       -6 %
Commercial
    3,910       4,436       -12 %
Industrial
    2,757       2,339       18 %
Other
    812       829       -2 %
 
                 
 
    10,904       11,237       -3 %
Choice
    1,330       479       178 %
 
                 
TOTAL SALES
    12,234       11,716       4 %
 
                 
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    459,698       471,479       -2 %
Commercial
    389,259       423,775       -8 %
Industrial
    188,414       159,653       18 %
Other
    52,951       44,679       19 %
 
                 
 
    1,090,322       1,099,586       -1 %
Choice
    27,654       11,737       136 %
 
                 
TOTAL REVENUES
    1,117,976       1,111,323       1 %
 
                 
Gas Sales — MichCon Service Area (MMcf)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    31,083       31,877       -2 %
Commercial
    7,243       7,906       -8 %
Industrial
    230       752       -69 %
 
                 
 
    38,556       40,535       -5 %
End User Transportation*
    39,492       37,906       4 %
 
                 
TOTAL SALES
    78,048       78,441       -1 %
 
                 
     
*   Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    299,182       332,455       -10 %
Commercial
    67,998       82,616       -18 %
Industrial
    1,935       7,232       -73 %
 
                 
 
    369,115       422,304       -13 %
End User Transportation*
    54,075       43,091       25 %
 
                 
TOTAL REVENUES
    423,191       465,395       -9 %
 
                 
     
*   Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    Q4 2010     Q4 2009     % Change  
Actuals
    5       0       N/A  
Normal
    6       6          
 
                   
 
                       
Deviation from normal
    -25 %     -100 %        
Heating Degree Days
MichCon service territory
                         
    Q4 2010     Q4 2009     % Change  
Actuals
    2,249       2,265       -1 %
Normal*
    2,206       2,350          
 
                   
 
                       
Deviation from normal
    2 %     -4 %        
     
*   Normal is 15 year weather for 2010 and 30 year weather for 2009
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
                 
    Q4 2010     Q4 2009  
MichCon
          (3 )

 

 


 

(DTE ENERGY LOGO)
Sales Analysis — YTD December 31, 2010
Electric Sales — Detroit Edison Service Area (GWh)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    15,726       14,625       8 %
Commercial
    16,570       18,200       -9 %
Industrial
    10,195       9,922       3 %
Other
    3,210       3,229       -1 %
 
                 
 
    45,701       45,976       -1 %
Choice
    5,005       1,477       239 %
 
                 
TOTAL SALES
    50,706       47,453       7 %
 
                 
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    2,052,608       1,819,497       13 %
Commercial
    1,628,757       1,702,367       -4 %
Industrial
    687,960       729,987       -6 %
Other
    193,014       176,331       9 %
 
                 
 
    4,562,339       4,428,182       3 %
Choice
    106,552       39,556       169 %
 
                 
TOTAL REVENUES
    4,668,891       4,467,738       5 %
 
                 
Gas Sales — MichCon Service Area (MMcf)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    91,543       103,264       -11 %
Commercial
    23,490       29,830       -21 %
Industrial
    678       1,617       -58 %
 
                 
 
    115,711       134,711       -14 %
End User Transportation*
    139,605       124,472       12 %
 
                 
TOTAL SALES
    255,316       259,183       -1 %
 
                 
     
*   Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    992,342       1,072,679       -7 %
Commercial
    249,125       305,344       -18 %
Industrial
    6,412       14,756       -57 %
 
                 
 
    1,247,879       1,392,779       -10 %
End User Transportation*
    196,685       146,368       34 %
 
                 
TOTAL REVENUES
    1,444,564       1,539,147       -6 %
 
                 
     
*   Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    YTD 2010     YTD 2009     % Change  
Actuals
    1,071       575       86 %
Normal
    736       736          
 
                   
 
                       
Deviation from normal
    46 %     -22 %        
Heating Degree Days
MichCon service territory
                         
    YTD 2010     YTD 2009     % Change  
Actuals
    6,021       6,623       -9 %
Normal*
    6,403       6,696          
 
                   
 
                       
Deviation from normal
    -6 %     -1 %        
     
*   Normal is 15 year weather for 2010 and 30 year weather for 2009
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
                     
    YTD 2010     YTD 2009      
MichCon
    (17 )     (2 ) Milder weather reduced MichCon’s earnings by $17M during 2010.

 

 


 

(DTE ENERGY LOGO)
Detroit Edison Temperature Normal Sales Analysis -
December 31, 2010
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    3,449       3,691       -7 %
Commercial
    3,911       4,459       -12 %
Industrial
    2,757       2,346       18 %
Other
    812       829       -2 %
 
                 
 
    10,929       11,326       -4 %
Choice
    1,330       480       177 %
 
                 
TOTAL SALES
    12,259       11,806       4 %
 
                 
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    14,979       15,218       -2 %
Commercial
    16,293       18,381       -11 %
Industrial
    10,165       9,965       2 %
Other
    3,210       3,229       -1 %
 
                 
 
    44,647       46,793       -5 %
Choice
    4,944       1,488       232 %
 
                 
TOTAL SALES
    49,591       48,280       3 %
 
                 
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
                         
    Q4 2010     Q4 2009     % Change  
Residential
    3,449       3,692       -7 %
Commercial
    4,726       4,940       -4 %
Industrial
    3,272       2,345       40 %
Other
    812       829       -2 %
 
                 
TOTAL SALES
    12,259       11,806       4 %
 
                 
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
                         
    YTD 2010     YTD 2009     % Change  
Residential
    14,980       15,218       -2 %
Commercial
    19,469       19,941       -2 %
Industrial
    11,933       9,893       21 %
Other
    3,210       3,229       -1 %
 
                 
TOTAL SALES
    49,591       48,280       3 %