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): July 28, 2003

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

TABLE OF CONTENTS

Earnings Release dated July 28, 2003

Info. Distributed for Media & Investor Relations

Item 7. Exhibits

99.1	Earnings Release of DTE Energy Company, dated July 28, 2003, including reconciliation and representations required by Regulation G.
99.2	Information Distributed for Media and Investor Relations Communications dated July 28, 2003.

Item 9. Regulation FD Disclosure-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 July 28, 2003 announcing financial results for the quarter and six months ended June 30, 2003. This information is provided to the SEC under Item 12 of Form 8-K. A copy of the earnings release and the information distributed for media and investor relations communications 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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned, hereunto duly authorized.

Date: July 28, 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 July 28, 2003, containing reconciliation and representations required by Regulation G
99.2	Information Distributed for Media and Investor Relations Communications dated July 28, 2003.

4 EX-99.1 3 k78533exv99w1.htm EARNINGS RELEASE DATED JULY 28, 2003

Exhibit 99.1

July 28, 2003

DTE ENERGY REPORTS SECOND QUARTER EARNINGS

     DETROIT — DTE Energy (NYSE: DTE) today reported a loss of $23 million, or $0.13 per diluted share for the second quarter ended June 30, 2003, compared with reported earnings of $68 million, or $0.42 per diluted share for the same period last year. Operating earnings for the second quarter 2003 were $79 million, or $0.48 per diluted share, which is comparable to operating earnings of $86 million, or $0.53 per diluted share for the same period in 2002.

     Reported earnings for the six months ended June 30, 2003 were $132 million, or $0.79 per share versus $268 million or $1.66 per share in 2002. Year-to-date operating earnings were $257 million, or $1.53 per share, compared to $267 million, or $1.65 per share in 2002.

     A reconciliation of reported to operating earnings per share for both the quarter ended and six months ended June 30 can be found at the end of this release. 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.

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

• DTE Energy Resources earnings were $0.65 per share versus $0.48 per share in the second quarter of 2002. The regulated operations of this business unit, which include the power generation services of Detroit Edison, decreased $0.06 per share versus last year. The decrease in the regulated operations was driven by decreased cooling demand due to mild weather, lower margins resulting from the Customer Choice program, and continued pressure from higher pension and healthcare benefit costs. 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 $0.23 per share versus 2002, due to higher synthetic fuel production in the energy services operations, partially offset by unfavorable mark-to-market earnings at the energy marketing and trading business.

• DTE Energy Distribution posted a loss of $0.07 per share versus earnings of $0.09 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 $0.16 per share, driven by the impact of mild weather, the restoration costs from an April 2003 ice storm, increased costs for customer service process improvements, and increased pension and healthcare benefit costs. 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. Losses were flat year-over-year for this business at $0.02 per share.

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• DTE Energy Gas had a loss of $0.01 per share versus earnings of $0.04 per share for the same period last year. The regulated operations include the gas distribution services provided by Michigan Consolidated Gas Co. (MichCon). Regulated operations were down $0.04 per share in the second quarter, largely due to increased 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 decreased 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. Corporate & Other losses were $0.09 per share versus $0.08 per share for the same period last year.

     DTE Energy’s reported earnings for the second quarter include a negative $100 million effective tax rate adjustment. This quarterly adjustment is required by Generally Accepted Accounting Principles to maintain a quarterly effective tax rate consistent with the estimated annual rate and does not impact total year earnings. This adjustment is necessary because the company’s quarterly pre-tax income and Section 29 tax credits earned from its synthetic fuels business have different quarterly profiles. Typically, tax credits recognized are shifted from the first two quarters to the second half of the year. The company’s reduction in its synthetic fuel production levels in the second half of the year (announced June 17, 2003) magnifies this shift and subsequently produced a higher effective tax rate adjustment in the second quarter. In addition, this reduction causes the total year effective tax rate to increase.

     “Our weak second-quarter results demonstrate the continued cost pressures that hinder our two utilities, Detroit Edison and MichCon,” said Anthony F. Earley Jr., DTE Energy chairman and CEO. “We continue to face rising costs of pensions and healthcare benefits, and to make investments to improve our infrastructure and customer service. Neither Detroit Edison nor MichCon have had a rate increase in nearly a decade. It is critical that both utilities be granted rate relief by the Michigan Public Service Commission at the earliest possible date to ensure their continued financial health.

     “In addition, it is essential that structural changes to the state’s Customer Choice program be implemented in a timely fashion,” Earley said. “The program, as structured, sends incorrect pricing signals to program participants and places the cost burden of the program with Detroit Edison. This structure is neither competitive nor sustainable and further exacerbates the financial pressures facing the company.”

     Concerning the company’s non-regulated businesses, Earley said that while DTE Energy’s non-regulated businesses posted year-over-year growth, a business decision was announced June 17, 2003, to reduce the production levels at the company’s synthetic fuels business until there was more certainty regarding the timing and outcome of the IRS review of chemical change.

     “Lower production volumes will negatively impact the financial performance of this business this year but it was a prudent decision given the company’s inability to fully use the tax credits that this business generates and the uncertainty of the IRS review,” Earley said. “As we work with the IRS to resolve this issue, we continue our strategy of expanding our portfolio of non-regulated businesses to ensure future growth opportunities for DTE Energy.”

     David E. Meador, DTE Energy senior vice president and chief financial officer, commented on other financial issues.

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     “Our already strong cash flow, liquidity and leverage metrics remain on target for the year,” Meador said. “We continue to aggressively manage capital expenditures and costs within our control to improve our financial health. We believe that DTE Energy remains a financially sound, well-positioned company. We look forward to a favorable resolution to the uncertainties surrounding our pending rate cases and the IRS’ synthetic fuel review so that we may emerge an even stronger 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 provide an overview of its second quarter earnings and its financial outlook for 2003 as part of its webcast meeting with the investment community at 8:30 a.m. EDT Friday, Aug. 1. Investors, the news media and the public may listen to a live Internet broadcast of the DTE Energy webcast 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 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; resolution of the IRS review of chemical change at synthetic fuel facilities; 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; the grant of rate relief by the MPSC for the utilities; 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	Scott Simons
(313) 235-8807	(313) 235-8808

Analysts — For Further Information:

Investor Relations
(313) 235-8030

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

				Three Months Ended						Six Months Ended
				June 30						June 30
				2003			2002			2003			2002
(in Millions, Except per Share Amounts)
Operating Revenues				$	1,600		$	1,474		$	3,695		$	3,368
Operating Expenses
		Fuel, purchased power and gas			493			403			1,306			1,138
		Operation and maintenance			720			623			1,475			1,166
		Depreciation, depletion and amortization			180			180			377			369
		Taxes other than income			87			81			184			174
					1,480			1,287			3,342			2,847
Operating Income					120			187			353			521
Other (Income) and Deductions
		Interest expense			132			136			265			272
		Preferred stock dividends of subsidiaries			6			5			12			13
		Interest income			(7	)		(6	)		(15	)		(11	)
		Other income			(18	)		(28	)		(31	)		(37	)
		Other expenses			18			27			51			42
					131			134			282			279
Income (Loss) Before Income Taxes					(11	)		53			71			242
Income Tax Expense (Benefit)					10			(8	)		(16	)		(11	)
Income (Loss) from Continuing Operations					(21	)		61			87			253
Discontinued Operations — ITC:
	Income from operations				—			7			5			15
	Gain on sale				(2	)		—			67			—
					(2	)		7			72			15
Cumulative Effect of Accounting Changes:
	Asset retirement obligations				—			—			(11	)		—
	Energy trading activities				—			—			(16	)		—
					—			—			(27	)		—
Net Income (Loss)				$	(23	)	$	68		$	132		$	268
Basic Earnings (Loss) per Common Share
		Income from continuing operations		$	(.12	)	$	.38		$	.53		$	1.57
		Discontinued operations			(.01	)		.04			.43			.09
		Cumulative effect of accounting changes			—			—			(.17	)		—
			Total	$	(.13	)	$	.42		$	.79		$	1.66
Diluted Earnings (Loss) per Common Share
		Income from continuing operations		$	(.12	)	$	.38		$	.52		$	1.57
		Discontinued operations			(.01	)		.04			.43			.09
		Cumulative effect of accounting changes			—			—			(.16	)		—
			Total	$	(.13	)	$	.42		$	.79		$	1.66
Average Common Shares
		Basic			168			161			167			161
		Diluted			168			162			168			162
Dividends Declared per Common Share				$	.515		$	.515		$	1.03		$	1.03

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

			Three Months Ended June 30
			2003									2002
			Reported						Operating			Reported							Operating
			Earnings			Adjustments			Earnings			Earnings			Adjustments				Earnings
Energy Resources
	Regulated — Power Generation		$	0.28		$	—		$	0.28		$	0.34		$	—			$	0.34
	Non-regulated
		Energy Services		0.46			—			0.46			0.18			—				0.18
		Energy Marketing & Trading		(0.09	)		—			(0.09	)		(0.03	)		—				(0.03	)
		Other		—			—			—			(0.01	)		—				(0.01	)
		Total Non-regulated		0.37			—			0.37			0.14			—				0.14
				0.65			—			0.65			0.48			—				0.48
Energy Distribution
	Regulated — Power Distribution			(0.05	)		—			(0.05	)		0.11			—				0.11
	Non-regulated			(0.02	)		—			(0.02	)		(0.02	)		—				(0.02	)
				(0.07	)		—			(0.07	)		0.09			—				0.09
Energy Gas
	Regulated — Gas Distribution			(0.05	)		—			(0.05	)		(0.01	)		—				(0.01	)
	Non-regulated			0.04			—			0.04			0.05			—				0.05
				(0.01	)		—			(0.01	)		0.04			—				0.04
Corporate and Other				(0.69	)		0.60	E		(0.09	)		(0.23	)		0.15		E		(0.08	)
				(0.69	)		0.60			(0.09	)		(0.23	)		0.15				(0.08	)
Income (Loss) from Continuing
Operations
	Regulated			0.18			—			0.18			0.44			—				0.44
	Non-regulated			(0.30	)		0.60			0.30			(0.06	)		0.15				0.09
				(0.12	)		0.60			0.48			0.38			0.15				0.53
Discontinued Operations — ITC
	Income from operations			—			—			—			0.04			(0.04	)	F		—
	Gain on sale			(0.01	)		0.01	G		—			—			—				—
				(0.01	)		0.01			—			0.04			(0.04	)			—
Cumulative Effect of Accounting
Changes
	Asset retirement obligations			—			—			—			—			—				—
	Energy trading activities			—			—			—			—			—				—
				—			—			—			—			—				—
Net Income (Loss)			$	(0.13	)	$	0.61		$	0.48		$	0.42		$	0.11			$	0.53

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)

			Six Months Ended June 30
			2003										2002
			Reported							Operating			Reported							Operating
			Earnings			Adjustments				Earnings			Earnings			Adjustments				Earnings
Energy Resources
	Regulated — Power Generation		$	0.42		$	—			$	0.42		$	0.73		$	—			$	0.73
	Non-regulated
		Energy Services		0.76			—				0.76			0.38			—				0.38
		Energy Marketing & Trading		0.17			(0.09	)	A		0.08			0.08			—				0.08
		Other		0.01			—				0.01			(0.01	)		—				(0.01	)
		Total Non-regulated		0.94			(0.09	)			0.85			0.45			—				0.45
				1.36			(0.09	)			1.27			1.18			—				1.18
Energy Distribution
	Regulated — Power Distribution			(0.07	)		0.08		B		0.01			0.28			—				0.28
	Non-regulated			(0.05	)		—				(0.05	)		(0.04	)		—				(0.04	)
				(0.12	)		0.08				(0.04	)		0.24			—				0.24
Energy Gas
	Regulated — Gas Distribution			0.31			0.10		C		0.41			0.33			—				0.33
	Non-regulated			0.08			—				0.08			0.09			—				0.09
				0.39			0.10				0.49			0.42			—				0.42
							0.06		D
Corporate and Other				(1.11	)		0.86		E		(0.19	)		(0.27	)		0.08		E		(0.19	)
				(1.11	)		0.92				(0.19	)		(0.27	)		0.08				(0.19	)
Income (Loss) from Continuing
Operations
	Regulated			0.66			0.18				0.84			1.34			—				1.34
	Non-regulated			(0.14	)		0.83				0.69			0.23			0.08				0.31
				0.52			1.01				1.53			1.57			0.08				1.65
Discontinued Operations — ITC
	Income from operations			0.03			(0.03	)	F		—			0.09			(0.09	)	F		—
	Gain on sale			0.40			(0.40	)	G		—			—			—				—
				0.43			(0.43	)			—			0.09			(0.09	)			—
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				—			—			—				—
Net Income			$	0.79		$	0.74			$	1.53		$	1.66		$	(0.01	)		$	1.65

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-99.1

Earnings Release dated July 28, 2003

EX-99.2

Exhibit 99.2

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS (PRELIMINARY/UNAUDITED)
(in Millions, Except per Share Amounts)

			3 Months - June									6 Months - June
			2003			2002			% Change			2003			2002			% Change
Operating Revenues			$	1,600		$	1,474			9	%	$	3,695		$	3,368			10	%
Operating Expenses
	Fuel, purchased power and gas		$	493		$	403			22	%	$	1,306		$	1,138			15	%
	Operation and maintenance			720			623			16	%		1,475			1,166			27	%
	Depreciation, depletion and amortization			180			180			—			377			369			2	%
	Taxes other than income			87			81			7	%		184			174			6	%
			$	1,480		$	1,287			15	%	$	3,342		$	2,847			17	%
Operating Income			$	120		$	187			-36	%	$	353		$	521			-32	%
Other (Income) and Deductions
	Interest expense		$	132		$	136			-3	%	$	265		$	272			-3	%
	Preferred stock dividends of subsidiaries			6			5			20	%		12			13			-8	%
	Interest income			(7	)		(6	)		17	%		(15	)		(11	)		36	%
	Other income			(18	)		(28	)		-36	%		(31	)		(37	)		-16	%
	Other expenses			18			27			-33	%		51			42			21	%
			$	131		$	134			-2	%	$	282		$	279			1	%
Income (Loss) Before Income Taxes			$	(11	)	$	53			n/m		$	71		$	242			-71	%
Income Tax (Benefit) Expense				10			(8	)		n/m			(16	)		(11	)		-45	%
Income (Loss) from Continuing Operations			$	(21	)	$	61			n/m		$	87		$	253			-66	%
Discontinued Operations — ITC
	Income from operations		$	—		$	7			—		$	5		$	15			-67	%
	Gain on sale			(2	)		—			—			67			—			—
			$	(2	)	$	7			—		$	72		$	15			—
Cumulative Effect of Accounting Changes
	Asset retirement obligations		$	—		$	—			—		$	(11	)	$	—			—
	Energy trading activities			—			—			—			(16	)		—			—
			$	—		$	—			—		$	(27	)	$	—			—
Reported Net Income (Loss)			$	(23	)	$	68			n/m		$	132		$	268			-51	%
Reported Earnings per Diluted Share			$	(0.13	)	$	0.42			-55	%	$	0.79		$	1.66			-55	%
Significant Items Impacting Comparability
	Unusual Items
		Loss on Sale of Steam Heating Business	$	—			—			—			0.08			—			—
		Contribution to DTE Energy Foundation		—			—			—			0.06			—			—
		Disallowance of Gas Costs		—			—			—			0.10			—			—
		Energy Trading Activities (EITF 98-10 flowback)		—			—			—			(0.09	)		—			—
		Effective Tax Rate Adjustment		0.60			0.15			n/m			0.86			0.08			n/m
	Discontinued Operations
		Income from operations of ITC		—			(0.04	)		—			(0.03	)		(0.09	)		-67	%
		Gain on sale of ITC		0.01			—			—			(0.40	)		—			—
	Cumulative Effect of Accounting Changes
		Asset Retirement Obligations (FAS 143)		—			—			—			0.07			—			—
		Energy Trading Activities (EITF 98-10 implementation)		—			—			—			0.09			—			—
Operating Earnings per Diluted Share			$	0.48		$	0.53			-10	%	$	1.53		$	1.65			-7	%
Average Common Shares
	Basic			168			161			4	%		167			161			4	%
	Diluted			168			162			4	%		168			162			4	%
Dividends Declared per Common Share			$	0.515		$	0.515					$	1.03		$	1.03

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, 10K and 10Q.

n/m — not meaningful

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
Earnings Variance Analysis (Preliminary/Unaudited)

Q2 2002 Reported Earnings per Share					$	0.42
	Adjust for Q2 2002 Quarterly Effective Tax Rate Adjustment					0.15
	Adjust for discontinued operations (ITC)					(0.04	)
Q2 2002 Operating Earnings per Share					$	0.53
Regulated Electric
	Gross Margin		(0.28	)
		- lower cooling demand driven by mild weather ($0.17/share impact)
		- margin loss due to choice and higher power supply rates
	O&M Expense		(0.04	)
		- April storm restoration costs, increased plant maintenance and outage investments
		- higher pension and benefit costs
	Regulatory deferrals — environmental and customer choice		0.09
	Other		0.01
		Total Regulated Electric				(0.22	)
Regulated Gas						(0.04	)
Non Regulated
	Energy Services — primarily synfuel credits produced		0.28
	Trading — primarily timing related mark-to-market losses in CoEnergy Portfolio		(0.06	)
		Total Non-Regulated				0.22
Holding Company						(0.01	)
Q2 2003 Operating Earnings per Share					$	0.48

Net Income Summary
(Preliminary/Unaudited)

(in millions, except per share amounts)					Reported							Operating			Operating
					Q2 2003				Adjustments			Q2 2003			Q2 2002				Variance
Energy Resources
		Regulated — Power Generation			$	46						$	46		$	56			$	(10	)
		Non-Regulated
			Energy Services
				Coal Based Fuels		62		A				$	62		$	34			$	28
				On Site Energy Projects		1							1			2				(1	)
				Merchant Generation		16		B					16			(1	)			17
				Other		(3	)						(3	)		(5	)			2
			Coal Services			3							3			3				—
			Biomass Energy			1							1			1				—
			Energy Trading & CoEnergy Portfolio			(15	)						(15	)		(5	)			(10	)
			Energy Resources Overheads			(3	)						(3	)		(5	)			2
		Total Energy Resources Non-Regulated			$	62			$	—		$	62		$	24			$	38
			Total Energy Resources		$	108			$	—		$	108		$	80			$	28
Energy Distribution
		Regulated — Power Distribution			$	(7	)					$	(7	)	$	18			$	(25	)
		Non Regulated (Energy Technologies)				(5	)						(5	)		(4	)			(1	)
			Total Energy Distribution		$	(12	)		$	—		$	(12	)	$	14			$	(26	)
Energy Gas
		Regulated			$	(8	)					$	(8	)	$	(1	)		$	(7	)
		Non-Regulated				6							6			8				(2	)
			Total Energy Gas		$	(2	)		$	—		$	(2	)	$	7			$	(9	)
Holding Company & Other
		Energy Technology Investments			$	(4	)					$	(4	)	$	(2	)		$	(2	)
		Other				(111	)			100	C		(11	)		(13	)	D		2
			Total Holding Company & Other		$	(115	)		$	100		$	(15	)	$	(15	)		$	—
Total
		Regulated
				Electric	$	39						$	39		$	74			$	(35	)
				Gas		(8	)						(8	)		(1	)			(7	)
		Non-Regulated				59		E					59			26				33
		Holding Company/Other				(111	)			100			(11	)		(13	)			2
			Total		$	(21	)		$	100		$	79		$	86			$	(7	)
			Discontinued Operations
				ITC	$	(2	)		$	2	F	$	—		$	—			$	—
Total Net Income (Loss)					$	(23	)		$	102		$	79		$	86			$	(7	)
Total Diluted EPS					$	(0.13	)		$	0.61		$	0.48		$	0.53			$	(0.05	)
	Average Diluted Shares Outstanding					168							168			162

Key:

A — Coal based fuels includes a $9.6 million (net of tax) reserve for a potential uncollectible account
B — Merchant generation includes a $20 million (net of tax) gain associated with the termination of a long-term tolling contract
C — Effective tax rate adjustment
D — Reported was (38), which included a (25) effective tax rate adjustment
E — Includes energy technology investments
F — Gain on sale of International Transmission Company

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (PRELIMINARY/UNAUDITED)
(in Millions)

			June 30			Dec. 31			Percent
ASSETS			2003			2002			Change
Current Assets
	Cash and cash equivalents		$	103		$	133			-23	%
	Restricted cash			126			237			-47	%
	Accounts receivable
		Customer (less allow. for doubtful accounts of $123 and $82)		930			902			3	%
		Accrued unbilled revenues		190			296			-36	%
		Other		370			237			56	%
	Inventories
		Fuel and gas		367			413			-11	%
		Materials and supplies		159			163			-2	%
	Assets from risk management and trading activities			349			224			56	%
	Other			114			159			-28	%
			$	2,708		$	2,764			-2	%
Investments
		Nuclear decommissioning trust funds	$	466		$	417			12	%
		Other		484			487			-1	%
			$	950		$	904			5	%
Property
	Property, plant and equipment		$	17,534		$	17,862			-2	%
	Less accumulated depreciation and depletion			(7,856	)		(8,049	)		2	%
			$	9,678		$	9,813			-2	%
Other Assets
		Goodwill	$	2,086		$	2,119			-2	%
		Regulatory assets		2,066			1,197			72	%
		Securitized regulatory assets		1,571			1,613			-1	%
		Assets from risk management and trading activities		247			152			8	%
		Prepaid pension assets		177			172			2	%
		Other		539			504			2	%
			$	6,686		$	5,757			3	%
Total Assets			$	20,022		$	19,238			4	%

LIABILITIES AND			June 30			Dec. 31			Percent
SHAREHOLDERS' EQUITY			2003			2002			Change
Current Liabilities
	Accounts payable		$	839		$	647			30	%
	Accrued interest			114			115			-1	%
	Dividends payable			91			90			1	%
	Accrued payroll			41			49			-16	%
	Short-term borrowings			231			414			-44	%
	Current portion long-term debt, including capital leases			744			1,018			-27	%
	Liab. from risk mgmt. and trading activities			404			284			42	%
	Other			550			596			-8	%
			$	3,014		$	3,213			-6	%
Other Liabilities
	Deferred income taxes		$	1,154		$	916			26	%
	Regulatory liabilities			171			179			-4	%
	Asset retirement obligations			841			—			—
	Unamortized investment tax credit			162			168			-4	%
		Liab. from risk mgmt. and trading activities		345			208			66	%
		Liab. from transportation and storage contracts		497			523			-5	%
	Accrued pension liability			389			582			-33	%
	Nuclear decommissioning			59			416			-86	%
	Other			691			683			1	%
			$	4,309		$	3,675			17	%
Long-Term Debt
		Mortgage bonds, notes and other	$	5,671		$	5,656			—
		Securitization bonds		1,539			1,585			-3	%
		Equity-linked securities		188			191			-2	%
		Capital lease obligations		79			82			-4	%
			$	7,477		$	7,514			—
Preferred Securities of Subsidiaries			$	271		$	271			—
Shareholders’ Equity
	Common stock		$	3,076		$	3,052			1	%
	Retained earnings			2,096			2,132			-2	%
	Accumulated other comprehensive loss			(221	)		(619	)		-64	%
			$	4,951		$	4,565			8	%
Total Liabilities and Shareholders’ Equity			$	20,022		$	19,238			4	%

The Consolidated Statement of Financial Position (Preliminary/Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.

n/m — not meaningful

Detroit Edison Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - June									6 Months - June
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	870		$	962			-10	%	$	1,807		$	1,892			-4	%
Operating Expenses
	Fuel and purchased power	$	226		$	246			-8	%	$	474		$	455			4	%
	Operation and maintenance		330			321			3	%		696			597			17	%
	Depreciation and amortization		124			138			-10	%		259			285			-9	%
	Taxes other than income		65			65			—			137			137			—
		$	745		$	770			-3	%	$	1,566		$	1,474			6	%
Operating Income		$	125		$	192			-35	%	$	241		$	418			-42	%
Other (Income) and Deductions
	Interest expense	$	71		$	78			-9	%	$	146		$	156			-6	%
	Interest income		—			—			—			—			(1	)		—
	Other income		(22	)		(6	)		n/m			(33	)		(12	)		n/m
	Other expenses		17			7			n/m			37			24			54	%
		$	66		$	79			-16	%	$	150		$	167			-10	%
Income Before Income Taxes		$	59		$	113			-48	%	$	91		$	251			-64	%
Income Tax Provision		$	20		$	39			-49	%	$	31		$	84			-63	%
Income Before Accounting Change		$	39		$	74			-47	%	$	60		$	167			-64	%
Cumulative Effect of Accounting Change			—			—			—			(6	)		—			—
Reported Net Income		$	39		$	74			-47	%	$	54		$	167			-68	%
Cumulative Effect of Accounting Changes
	Asset Retirement Obligations (FAS 143)		—			—			—			6			—			—
Unusual Items
	Loss on Sale of Steam Heating Business		—			—			—			14			—			—
	Elimination of Intercompany Gain		—			—			—			—			(4	)		—
Operating Net Income		$	39		$	74			-47	%	$	74		$	163			-55	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in
conjunction with the Notes to Consolidated Financial Statements appearing in the
Annual Report to Shareholders, Form 10K and Form 10Q.

n/m — not meaningful

Michigan Consolidated Gas Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - June									6 Months - June
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	284		$	235			21	%	$	936		$	825			13	%
Operating Expenses
	Cost of gas	$	160		$	116			38	%	$	581		$	500			16	%
	Operation and maintenance		83			73			14	%		161			140			15	%
	Depreciation, depletion and amortization		28			27			4	%		53			53			—
	Taxes other than income		13			11			18	%		30			27			11	%
	Property write-down and contract losses		5			48			n/m			5			48			—
		$	289		$	275			5	%	$	830		$	768			8	%
Operating Income (Loss)		$	(5	)	$	(40	)		88	%	$	106		$	57			86	%
Other (Income) and Deductions
	Interest expense		14			16			-13	%		29			32			-9	%
	Interest income		(3	)		(2	)		50	%		(6	)		(6	)		—
	Other		(1	)		(2	)		-50	%		(2	)		(2	)		—
		$	10		$	12			17	%	$	21		$	24			13	%
Income (Loss) Before Income Taxes		$	(15	)	$	(52	)		71	%	$	85		$	33			n/m
Income Tax Provision (Benefit)			(4	)		(18	)		78	%		21			12			75	%
Reported Net Income (Loss)		$	(11	)	$	(34	)		68	%	$	64		$	21			n/m
Purchase Accounting and Other Adjustments			3			33			n/m			4			32			n/m
Operating Net Income (Loss) (A)		$	(8	)	$	(1	)		n/m		$	68		$	53			28	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be
read in conjunction with the Notes to Consolidated Financial Statements
appearing in the Annual Report to Shareholders, Form 10K and Form 10Q.

(A)	Represents MichCon’s results included in the DTE
	Energy Consolidated Statement of Operations.

n/m — not meaningful

Sales Analysis

Electric — Detroit Edison Service Area (MWh)

		Q2 2003		Q2 2002		% Change
Residential			3,242,646		3,527,434		-8.1	%
Commercial			3,961,682		4,718,237		-16.0	%
Industrial			3,134,495		3,536,682		-11.4	%
Other			639,050		634,854		0.7	%
TOTAL SYSTEM			10,977,873		12,417,207		-11.6	%
Choice Sales*			1,844,169		761,341		142.2	%
TOTAL SALES			12,822,042		13,178,548		-2.7	%
	Interconnection Sales		619,249		717,046		-13.6	%
	(not included above)

* Includes Dearborn Industrial Group sales

Gas — MichCon Service Area (Mcf)

	Q2 2003		Q2 2002		% Change
Residential		24,713,839		22,044,213		12.1	%
Commercial		6,647,296		7,122,666		-6.7	%
Industrial		238,568		306,361		-22.1	%
		31,599,703		29,473,240		7.2	%
End Use Transportation		25,578,325		37,908,012		-32.5	%
(includes choice customers)
TOTAL SALES		57,178,028		67,381,252		-15.1	%

Weather

Cooling Degree Days (Detroit Edison service area)

	Q2 2003			Q2 2002			% Change
Actuals		106			256			-59	%
Normal		187			187
Deviation from normal		-43.3	%		36.9	%

Heating Degree Days (MichCon service area)

	Q2 2003			Q2 2002			% Change
Actuals		909			884			3	%
Normal		882			876
Deviation from normal		3.1	%		0.9	%

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