8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
May 2, 2003

Commission	Exact Name of Registrant	I.R.S. Employer
File Number	as Specified in its Charter	Identification No.
1-11607	DTE Energy Company
	(a Michigan corporation)	38-3217752
	2000 2nd Avenue
	Detroit, Michigan 48226-1279
	313-235-4000
1-2198	The Detroit Edison Company
	(a Michigan Corporation)	38-0478650
	2000 2nd Avenue
	Detroit, Michigan 48226-1279
	313-235-8000
1-7310	Michigan Consolidated Gas Company
	(a Michigan Corporation)	38-0478040
	500 Griswold Street
	Detroit, Michigan 48226
	313-965-2430

TABLE OF CONTENTS

Earnings Release of DTE Energy

Slide Presentation of DTE Energy Company, 5/2/03

Item 7.    Exhibits

99.1	Earnings Release of DTE Energy Company, dated May 2, 2003, including reconciliation and representations required by Regulation G.
99.2	Slide presentation of DTE Energy Company, dated May 2, 2003.

Item 9.    Information Provided Under Item 12 (Results of Operations and Financial Condition)

                 DTE Energy Company is furnishing the Securities and Exchange Commission (SEC) with its earnings release issued May 2, 2003 announcing financial results for the quarter ended March 31, 2003. This information is provided to the SEC under Item 12 of Form 8-K. A copy of the press release and slide presentation are furnished as Exhibits 99.1 and 99.2 to this report and contain the reconciliation and representations required by the SEC's Regulation G.

2

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Date: May 2, 2003	DTE ENERGY COMPANY
	(Registrant)
	/s/ Daniel G. Brudzynski
	Daniel G. Brudzynski
	Vice President and Controller
	THE DETROIT EDISON COMPANY
	(Registrant)
	/s/ Daniel G. Brudzynski
	Daniel G. Brudzynski
	Vice President and Controller
	MICHIGAN CONSOLIDATED GAS COMPANY
	(Registrant)
	/s/ Daniel G. Brudzynski
	Daniel G. Brudzynski
	Vice President and Controller

3

Exhibit Index

Exhibit
Number	Description
99.1	Earnings Release of DTE Energy Company, dated May 2, 2003, containing reconciliation and representations required by Regulation G
99.2	Slide presentation of DTE Energy Company, dated May 2, 2003.

4 EX-99.1 3 k76692exv99w1.htm EARNINGS RELEASE OF DTE ENERGY

Exhibit 99.1

May 2, 2003

DTE ENERGY REPORTS FIRST QUARTER EARNINGS

     DETROIT – DTE Energy Co. (NYSE: DTE) today reported first quarter 2003 earnings of $155 million, or $0.92 per diluted share, compared with $200 million, or $1.24 per diluted share last year. These earnings include several non-recurring items and accounting changes.

     Operating earnings (which exclude non-recurring items, tax credit driven normalization, discontinued operations, and cumulative effect of accounting changes) for the first quarter ended March 31, 2003 were $178 million, or $1.06 per diluted share, which is comparable with operating earnings of $181 million, or $1.12 per diluted share for the same period in 2002.

     DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings power from ongoing operations, and uses operating earnings as the primary performance measurement for external communications with analysts and investors regarding its earnings outlook and results. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the DTE Energy Board of Directors. The attached statements at the end of this release show, on an after tax-basis, the specific items included in DTE Energy’s reported earnings, but excluded from operating earnings.

     “DTE Energy posted reasonable first quarter operating earnings versus last year, given the uncertainties of the current market,” said Anthony F. Earley Jr., DTE Energy chairman and CEO. “This quarter’s performance clearly illustrates the benefits of our business portfolio approach.”

     “Our non-regulated businesses showed another period of strong earnings, led by our coal-based synthetic fuels business and energy trading,” he said. “This increase partially offset the year-over-year cost pressures at our regulated electric and gas utilities. As I indicated at our annual shareholders meeting, we will pursue a rate case to address these cost pressures with the Michigan Public Service Commission for both Detroit Edison and MichCon. We plan on filing the electric rate case this quarter and the gas rate case later this year.”

     Operating earnings results for the first quarter of 2003, by business unit, were as follows:

• DTE Energy Resources earnings were $0.62 per share versus $0.69 per share in the first quarter of 2002. The regulated operations of this business unit, which include the power generation services of Detroit Edison, decreased $0.23 per share versus 2002. Favorable weather impacts were offset by the cost of maintenance outages at several power plants during the quarter and higher associated replacement power costs. The company

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	typically schedules much of its plant maintenance in the first or fourth quarters in anticipation of the summer generating season. Higher employee pension and healthcare benefit costs also contributed to the year-over-year decline. The non-regulated operations of this business unit include the company’s energy services, energy marketing and trading, coal services and landfill gas recovery (biomass) businesses. Non-regulated operations contributed an incremental $0.16 per share versus 2002, largely due to higher synthetic fuel production in the energy services operations and increased margins in energy marketing and trading.
•	DTE Energy Distribution contributed $0.03 per share versus $0.15 per share for the same period last year. The regulated operations of this business unit include the electric distribution services of Detroit Edison. These regulated operations experienced a year-over-year decline of $0.12 per share, driven by increased costs for customer service process improvements, and increased employee pension and healthcare benefit costs. This was partially offset by lower maintenance expenses due to the absence of storms, which negatively impacted the first quarter 2002. The non-regulated operations of this business unit consist primarily of DTE Energy Technologies, which markets and distributes a broad portfolio of distributed generation products and services. Earnings decreased by $0.01 per share year-over-year for this business.
•	DTE Energy Gas earnings for the first quarter 2003 increased to $0.50 per share versus $0.37 per share the same period last year. The regulated operations include the gas distribution services provided by Michigan Consolidated Gas Co. (MichCon). Regulated operations were up $0.12 per share in the first quarter, driven by increased sales due to colder weather, and partially offset by increased employee pension and healthcare benefit costs. Non-regulated operations include the production of gas in northern Michigan and the gathering, processing and storing of gas. The earnings of these operations increased by $0.01 per share year-over-year.
•	Corporate & Other includes interest costs, as well as certain non-regulated investments, including assets held for sale, and in emerging energy technologies. For the first quarter 2003, Corporate & Other expenses were flat versus the same period last year.

     “This is a challenging year, with several key drivers of our earnings, such as summer weather and the pace of economic recovery, yet to play out,” Earley said. “Our business plan remains on track, although we expect a change in the mix of earnings contributions from DTE Energy’s businesses.”

     “We anticipate lower full-year earnings from our regulated electric business, based on first quarter results, as well as the costs associated with a catastrophic ice storm that hit our service area last month and left more than 400,000 customers without power,” he said. “Our non-regulated businesses, however, had a strong first quarter, and we believe that these operations, led by our synthetic fuels business and energy trading operations, are poised to outperform our original earnings expectations for the year.”

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     “Navigating the challenges of a soft economy and escalating cost pressures continues to be a priority for DTE Energy,” Earley continued. “We have a committed management team, dedicated employees, and a solid game plan in place to meet these challenges, and deliver positive results.”

     The company also clarified its 2003 operating earnings guidance. The previous 2003 operating earnings guidance, $3.90 — $4.10 per share, included the earnings from its transmission business, with a business as usual assumption. Now that the transmission business has been sold, it is classified as a discontinued operation and the associated 2003 earnings from this business will not be in operating earnings. The company is maintaining its earnings guidance on a comparable basis, but adjusting it to reflect the sale of the transmission business. As a result, 2003 operating earnings guidance is now $3.75 — $3.95 per share. The reconciliation of the company’s 2003 operating earnings guidance to reported earnings can be found at the end of this release.

     David E. Meador, DTE Energy senior vice president and chief financial officer, commented on other financial highlights of the quarter:

     “In these uncertain times, we continue our commitment to financial stability and responsible growth,” Meador said. “During the first quarter, we closed the sale of our transmission business, and used a portion of proceeds from the sale to further strengthen an already solid balance sheet. We also successfully issued $400 million in 30-year notes at extremely attractive interest rates, demonstrating our ready access to the capital markets.”

     “The company’s debt/equity ratio, at 51 percent, is well within our target range of 50 to 55 percent,” he continued. “DTE Energy remains a financially sound, well-positioned company.”

     This earnings announcement, as well as a package of detailed financial information, is available on the company’s website at www.dteenergy.com in the “Investors” page.

     DTE Energy will conduct a conference call with the investment community at 2:00 p.m. EDT on Friday, May 2, to discuss first quarter earnings results. Investors, the news media and the public may listen to a live Internet broadcast of the DTE Energy conference call at www.dteenergy.com.

     DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. DTE Energy’s largest operating subsidiaries are Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, and MichCon, a natural gas utility serving 1.2 million customers in Michigan. Information about DTE Energy is available at www.dteenergy.com.

The information contained in this document is as of the date of this news release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipate,” “believe,” “expect,” “projected” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and

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conditions but rather are subject to various assumptions, risks and uncertainties. This news release contains forward-looking statements about DTE Energy’s financial results and estimates of future prospects, and actual results may differ materially. Factors that may impact forward-looking statements include, but are not limited to, timing and extent of changes in interest rates; access to the capital markets and capital market conditions and other financing efforts which can be affected by credit agency ratings required; ability to utilize Section 29 tax credits or sell interest in facilities producing such credits; the level of borrowings; the effects of weather and other natural phenomena on operations and actual sales; economic climate and growth in the geographic areas in which DTE Energy does business; unplanned outages; the cost of protecting assets against or damage due to terrorism; nuclear regulations and risks associated with nuclear operations; changes in the cost of fuel, purchased power and natural gas; the effects of competition; the implementation of electric and gas customer choice programs; the implementation of electric and gas utility restructuring in Michigan; environmental issues, including changes in the climate, and regulations, and the contributions to earnings by non-regulated businesses. This news release should also be read in conjunction with the forward-looking statements in DTE Energy’s, MichCon’s and Detroit Edison’s 2002 Form 10-K Item 1, and in conjunction with other SEC reports filed by DTE Energy, MichCon and Detroit Edison.

Members of the Media – For Further Information:

Lorie N. Kessler	Len Singer
(313) 235-8807	(313) 235-8809

Analysts – For Further Information:

Investor Relations
(313) 235-8030

Reconciliation of DTE Energy 2003 Operating Earnings Guidance to Reported Earnings

2003 Operating Earnings Guidance		$	3.75-$3.95
	Net Impact of ITC Sale		0.44
	Reserve for disallowance of gas costs		(0.10	)
	Contribution to DTE Energy Foundation		(0.06	)
	Loss on Sale of Steam Heating Business		(0.08	)
	FAS 143 Asset Retirement Obligations		(0.07	)
	Other Non Strategic Asset Sales		0.07
	Total Adjustments		0.20
2003 Reported Earnings		$	3.95–$4.15*

* Diluted earnings per share calculation for US GAAP purposes is based on total net income.

DTE Energy Company
Segment Net Income (Unaudited)

			2003										2002
			Reported							Operating			Reported							Operating
(in Millions)			Earnings			Adjustments				Earnings			Earnings			Adjustments				Earnings
Energy Resources
	Regulated – Power Generation		$	25		$	—			$	25		$	61		$	—			$	61
	Non-regulated
		Energy Services		51			—				51			32			—				32
		Energy Marketing & Trading		44			(16	)	A		28			18			—				18
		Other		—			—				—			—			—				—
		Total Non-regulated		95			(16	)			79			50			—				50
				120			(16	)			104			111			—				111
Energy Distribution
	Regulated – Power Distribution			(4	)		14		B		10			27			—				27
	Non-regulated			(4	)		—				(4	)		(3	)		—				(3	)
				(8	)		14				6			24			—				24
Energy Gas
	Regulated – Gas Distribution			59			17		C		76			54			—				54
	Non-regulated			8			—				8			6			—				6
				67			17				84			60			—				60
							10		D
Corporate and Other				(71	)		45		E		(16	)		(3	)		(11	)	E		(14	)
				(71	)		55				(16	)		(3	)		(11	)			(14	)
Income from Continuing Operations
	Regulated			80			31				111			142			—				142
	Non-regulated			28			39				67			50			(11	)			39
				108			70				178			192			(11	)			181
Discontinued Operations — ITC
	Income from operations			5			(5	)	F		—			8			(8	)	F		—
	Gain on sale			69			(69	)	G		—			—			—				—
				74			(74	)			—			8			(8	)			—
Cumulative Effect of Accounting Changes
	Asset retirement obligations			(11	)		11		H		—			—			—				—
	Energy trading activities			(16	)		16		I		—			—			—				—
				(27	)		27				—			—			—				—
Net Income			$	155		$	23			$	178		$	200		$	(19	)		$	181

Adjustments Key
A) Adjustment of EITF 98-10 accounting change	Flowback of the cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10
B) Loss on sale of steam heating business	Sold Detroit Edison steam heating business
C) Disallowance of gas costs	Reserve for the potential disallowance of MichCon 2002 gas procurement costs
D) Contribution to DTE Energy Foundation	Used portion of ITC sale proceeds to fund the DTE Energy Foundation
E) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
F) Adjust for discontinued operations of ITC	Sold International Transmission Company
G) Gain on sale of ITC	Sold International Transmission Company
H) Asset retirement obligations	Cumulative effect of a change in accounting principle from adoption of SFAS 143
I) Adjustment of EITF 98-10 accounting change	Cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

						2003										2002
			Reported							Operating			Reported							Operating
			Earnings			Adjustments				Earnings			Earnings			Adjustments				Earnings
Energy Resources
	Regulated – Power Generation		$	0.15		$	—			$	0.15		$	0.38		$	—			$	0.38
	Non-regulated
		Energy Services		0.30			—				0.30			0.20			—				0.20
		Energy Marketing & Trading		0.26			(0.09	)	A		0.17			0.11			—				0.11
		Other		—			—				—			—			—				—
		Total Non-regulated		0.56			(0.09	)			0.47			0.31			—				0.31
				0.71			(0.09	)			0.62			0.69			—				0.69
Energy Distribution
	Regulated – Power Distribution			(0.02	)		0.08		B		0.06			0.17			—				0.17
	Non-regulated			(0.03	)		—				(0.03	)		(0.02	)		—				(0.02	)
				(0.05	)		0.08				0.03			0.15			—				0.15
Energy Gas
	Regulated – Gas Distribution			0.35			0.10		C		0.45			0.33			—				0.33
	Non-regulated			0.05			—				0.05			0.04			—				0.04
				0.40			0.10				0.50			0.37			—				0.37
							0.06		D
Corporate and Other				(0.42	)		0.27		E		(0.09	)		(0.02	)		(0.07	)	E		(0.09	)
				(0.42	)		0.33				(0.09	)		(0.02	)		(0.07	)			(0.09	)
Income from Continuing Operations
	Regulated			0.48			0.18				0.66			0.88			—				0.88
	Non-regulated			0.16			0.24				0.40			0.31			(0.07	)			0.24
				0.64			0.42				1.06			1.19			(0.07	)			1.12
Discontinued Operations — ITC
	Income from operations			0.03			(0.03	)	F		—			0.05			(0.05	)	F		—
	Gain on sale			0.41			(0.41	)	G		—			—			—				—
				0.44			(0.44	)			—			0.05			(0.05	)			—
Cumulative Effect of Accounting Changes
	Asset retirement obligations			(0.07	)		0.07		H		—			—			—				—
	Energy trading activities			(0.09	)		0.09		I		—			—			—				—
				(0.16	)		0.16				—			—			—				—
Total			$	0.92		$	0.14			$	1.06		$	1.24		$	(0.12	)		$	1.12

Adjustments Key
A) Adjustment of EITF 98-10 accounting change	Flowback of the cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10
B) Loss on sale of steam heating business	Sold Detroit Edison steam heating business
C) Disallowance of gas costs	Reserve for the potential disallowance of MichCon 2002 gas procurement costs
D) Contribution to DTE Energy Foundation	Used portion of ITC sale proceeds to fund the DTE Energy Foundation
E) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
F) Adjust for discontinued operations of ITC	Sold International Transmission Company
G) Gain on sale of ITC	Sold International Transmission Company
H) Asset retirement obligations	Cumulative effect of a change in accounting principle from adoption of SFAS 143
I) Adjustment of EITF 98-10 accounting change	Cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10

EX-99.2 4 k76692exv99w2.htm SLIDE PRESENTATION OF DTE ENERGY COMPANY, 5/2/03

Exhibit 99.2

First Quarter 2003 Financial Results May 2, 2003

Safe Harbor Statement The information contained in this document is as of the date of this press release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as "anticipate," "believe," "expect," "projected" and "goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This press release contains forward-looking statements about DTE Energy's financial results and estimates of future prospects, and actual results may differ materially. Factors that may impact forward- looking statements include, but are not limited to, timing and extent of changes in interest rates; access to the capital markets and capital market conditions and other financing efforts which can be affected by credit agency ratings required; ability to utilize Section 29 tax credits or sell interest in facilities producing such credits; the level of borrowings; the effects of weather and other natural phenomena on operations and actual sales; economic climate and growth in the geographic areas in which DTE Energy does business; unplanned outages; the cost of protecting assets against or damage due to terrorism; nuclear regulations and risks associated with nuclear operations; changes in the cost of fuel, purchased power and natural gas; the effects of competition; the implementation of electric and gas customer choice programs; the implementation of electric and gas utility restructuring in Michigan; environmental issues, including changes in the climate, and regulations, and the contributions to earnings by non- regulated businesses. This press release should also be read in conjunction with the forward- looking statements in DTE Energy's, MichCon's and Detroit Edison's 2002 Form 10-K Item 1, and in conjunction with other SEC reports filed by DTE Energy, MichCon and Detroit Edison

Participants Dave Meador Senior Vice President & Chief Financial Officer Dan Brudzynski Vice President & Controller Nick Khouri Vice President & Treasurer Peter Pintar Director of Investor Relations

Conference Call Objectives Explain first quarter results Be transparent by clearly explaining non-recurring transactions and FASB accounting changes Provide visibility on projected 2003 earnings outlook Regulated vs. non-regulated earnings Challenges and opportunities All other items will be covered by Tony Earley at the AGA Conference on Monday

Financial Highlights Normalized operating results adjusted for non-recurring transactions and accounting changes, were reasonable, when compared to the prior year period These one-time transactions and FASB accounting changes affected reported (GAAP basis) Q1 results Strong non-regulated performance partially offset weakness at Detroit Edison and continued cost pressure at MichCon Strong year-over-year Q1 cash flows 2003 remains on track, but will be a challenging year, with many earnings drivers yet to play out

Several One-Time Transactions and Accounting Changes Affected Q1 Reported Earnings Changes in accounting principle Divested unprofitable steam heating business Divested transmission business Used portion of proceeds from ITC divestiture to pre-fund the DTE Energy Foundation Quarterly adjustment to normalize effective tax rate. Annual results not impacted MPSC determined 2001 MichCon storage decrement was imprudent. Appeal in process EITF 98-10 - Accounting for contracts involved in energy trading and risk management and gas inventory accounting Thermal Divestiture Reserve for Potential GCR Disallowance Gain on Sale of ITC DTE Foundation Contribution Tax Credit Driven Normalization Accounting Non-Recurring Tax Accounting - Timing Discontinued Operations FAS 143 - Accounting for Asset Retirement Obligations

Q1 2003 Reported vs. Operating Earnings Results Q1 2003 Reported Earnings - GAAP Basis $0.92 Non-Recurring Items Thermal divestiture ( sale was NPV positive ) (0.08) O&M DTE Foundation contribution (0.06) O&M Reserve for potential GCR disallowance (0.10) MichCon Margins Energy Trading Activities (EITF 98-10 impact of change in gas inventory accounting) 0.09 Trading Margins Discontinued Operations ITC Gain on sale 0.41 Discontinued Ops ITC Income from operations 0.03 Discontinued Ops Tax Credit Driven Normalization (0.27) Tax Expense Cumulative Effect of Accounting Changes FAS 143 - Asset Retirement Obligations (0.07) Cum. Effect Adjust Energy Trading Activities (EITF 98-10 Cum. Effect Adjustment) (0.09) Cum. Effect Adjust Q1 2003 Operating Earnings $1.06 Income Statement Line Item

Q1 2003 Operating Earnings per Diluted Share 168 million average shares outstanding (fully diluted) Favorable winter heating season for gas and electric sales Higher pension and health care costs within regulated utilities Higher operating expenses due to customer service improvements and timing of fossil plant outages Lower gross margins due to higher wholesale power prices Higher synfuel production and credits retained Increased operating margins at Energy Trading Non-Regulated* Holding Company Regulated Electric $0.21 Regulated Gas $0.45 $0.47 $1.06 Q1 2003 Operating Earnings Legal Entity View * Includes Energy Technology Investments ($0.07)

Regulated Non Regulated Power Generation Energy Services Coal Services Biomass Energy Energy Trading & Marketing Energy Resources Power Distribution DTE Energy Technologies Energy Distribution Gas Distribution Non Reg Energy Gas Energy Gas Holding Company Energy Tech Investments Corporate & Other Earnings per Share $0.62 $0.50 $0.03 ($0.09) $0.15 $0.30 $0.45 $0.06 $0.02 $0.01 $0.17 ($0.03) $0.05 ($0.02) ($0.07) $1.06 First Quarter 2003 Operating Performance Business Unit View Overheads & Other ($0.03)

Q1 2003 vs. Q1 2002 Variance Analysis of Operating Results Q1 2002 Reported Earnings per Share $1.24 Adjust for Q1 2002 Quarterly Effective Tax Rate Adjustment (0.07) Adjust for discontinued operations - ITC earnings in Q1 2002 (0.05) Q1 2002 Operating Earnings per Share $1.12 Regulated Electric Gross Margin - wholesale prices (0.12) Positive weather impact offset by higher purchase power costs and margin lost to customer choice O&M Expense - benefits, outage costs (0.26) Higher benefits expenses, customer service improvements and timing-related scheduling of power plant maintenance work. Depreciation - regulatory asset deferrals 0.05 Other (0.01) Total Regulated Electric (0.34) Regulated Gas Gross Margin - weather related heating sales 0.09 O&M - higher benefit expenses (0.05) Other - depreciation, interest and taxes 0.08 Total Regulated Gas 0.12 Non Regulated Energy Services - primarily increase in synfuel production 0.11 Trading - increase in trading margins 0.05 Total Non-Regulated 0.16 Q1 2003 Operating Earnings per Share $1.06

Cash Flows Q1 2003 Q1 2002 Cash from Operations $127 $8 Capital Expenditures (218) (230) Dividends (86) (84) Asset Sales 631 7 Free Cash Flow $454 ($299) ($ millions) Cash Flow Strong first quarter cash performance Capital expenditures down Successful closing of the ITC sale For the full year, cash from operations depends on the timing of synfuel monetizations and working capital improvements

2003 Earnings Outlook We are maintaining 2003 guidance on a comparable basis and reflecting ITC's status as a discontinued operation The mix of operating earnings in 2003 will likely change 2003 remains a challenging year, with many earnings drivers yet to play out

Adjusted 2003 Earnings Guidance to Reflect Discontinued Operations $3.90 - $4.10 ($0.03) ($0.24) $0.05 $0.07 $3.75 - $3.95 2003 Guidance from Feb 12th 2 months ITC Net Income 10 months 2003 ITC Net Income Interest Savings Pension Expense Reduction Updated 2003 Guidance

2003 Operating Earnings Guidance vs. Reported Earnings Operating Earnings Guidance Impact of ITC Sale DTE Foundation Contribution $3.75- $3.95 $0.44 ($0.06) GCR Reserve Thermal Divestiture FAS 143 GAAP Reported Earnings Other Non- Strategic Asset Sales ($0.10) ($0.08) $0.07 ($0.07) $3.95- $4.15

Operating Earnings Guidance - Updated Mix Net Income ($ millions) Based on Q1 results and our updated projections, 2003 guidance is re-mixed for: Increased non-regulated earnings Capture higher contribution from synfuel and energy trading businesses Increased regulated gas earnings Weather upside as a result of first quarter 2003 heating season Decreased regulated electric earnings Reflects shortfalls in gross margins in Q1 and continued cost pressures $630-665 Non- Regulated Regulated Gas Regulated Electric $215-225 $70-75 $365-375* $630-665 * Revised to reflect impact of discontinued operations $3.75-$3.95 Corporate Earning per Share ($10-20)* $250-260 $75-80 $320-330 ($5-15) Previous Business Mix Updated Business Mix** ** Reconciliation to GAAP/Reported number included in appendix

Key Assumptions and Sensitivities for 2003 Assumption Update Currently in line with expectations Continued economic growth in our service territory (GDP of 3%) Continued movement to electric choice (10-13% of total load) Regulatory recovery of electric choice impact Normal weather Continued synfuel monetization Fermi 2 refueling outage Modest commodity exposure 9% currently moved to choice Booked $6M regulatory asset in Q1 Q1 slightly better than normal, significant Q2 storms Positive negotiations in progress Fermi 2 outage underway, slightly above budget 100% of expected peak summer electricity needs covered 86% of expected coal needs covered

Many Earnings Drivers Have Yet To Play Out Summer cooling season and plant performance Additional storms, after April catastrophic ice/snow storm Cost pressures and offsetting cost reduction efforts Pace and timing of economic recovery

Financial Objectives Maintain solid investment grade rating Stable outlook with BBB+ rating Targeted year end leverage of 51-53%, ended Q1 at 51% Generate strong cash flows from the core business Solid Q1 cash from operations Reduced Q1 capital expenditures Conservative and sound financial policies Contributed $222M to pension fund Reaffirmed dividend of $2.06 Transparent and simple balance sheet Disciplined approach to investments and risk management Disciplined approach to asset acquisitions Average Energy Trading counter-party rating of A-/BBB+

Summary First quarter included successful divestiture of ITC and Thermal operations in addition to accounting changes. Reported earnings must be adjusted to assess operating earnings The quarter compared reasonably to 2002 results on a comparable basis 2003 was always going to be a challenging year. Electric margins, cost pressures and early 2Q events including the catastrophic storm are making it more challenging Our balance sheet is stronger, helped by higher cash from operations and the sale of ITC We will provide an update at our mid-year analyst meeting in New York

Appendix

Non-regulated Businesses Operating Earnings Guidance FAS 143 asset retirement obligations Reported Earnings Guidance 250 - 260 (3) 247 - 257 Regulated Gas Operating Earnings Guidance Reserve for disallowance of gas costs FAS 143 asset retirement obligations Reported Earnings Guidance 75 - 80 (17) (1) 57- 62 Regulated Electric Operating Earnings Guidance Loss on Thermal divestiture FAS 143 asset retirement obligations Other non-strategic asset sales Discontinued operations - ITC Income from operations Gain on sale Reported Earnings Guidance 320 - 330 (14) (6) 13 5 69 387 - 397 Corporate Operating Earnings Guidance FAS 143 asset retirement obligations DTE Foundation Contribution Reported Earnings Guidance (5) - (15) (1) (10) (16) - (26) Reconciliation of Legal Entity Operating Earnings Guidance to Reported Guidance Net Income ($ millions)

EX-99.1

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EX-99.2

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