8-K

UNITED STATES
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): April 27, 2005

	Exact Name of Registrant as Specified in its Charter,
Commission	State of Incorporation, Address of Principal Executive	IRS Employer
File Number	Offices and Telephone Number	Identification No.
1-11607	DTE Energy Company (a Michigan corporation) 2000 2nd Avenue Detroit, Michigan 48226-1279 313-235-4000	38-3217752
1-2198	The Detroit Edison Company (a Michigan corporation) 2000 2nd Avenue Detroit, Michigan 48226-1279 313-235-4000	38-0478650
1-7310	Michigan Consolidated Gas Company (a Michigan corporation) 2000 2nd Avenue Detroit, Michigan 48226-1279 313-235-4000	38-0478040

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02.     Results of Operations and Financial Condition.
	Item 9.01.     Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
Earnings Release of DTE Energy Company dated April 27, 2005
Financial Information dated April 27, 2005

Item 2.02.     Results of Operations and Financial Condition.

DTE Energy Company is furnishing the Securities and Exchange Commission (“SEC”) with its earnings release issued April 27, 2005, announcing financial results for the quarter ended March 31, 2005. Copies of the earnings release and the financial information distributed for media and investor relations communications are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

Item 9.01.     Financial Statements and Exhibits.

(c)   Exhibits

99.1	Earnings Release of DTE Energy Company dated April 27, 2005.
99.2	Financial Information Distributed for Media and Investor Relations Communications dated April 27, 2005.

Forward-Looking Statements:

This Form 8-K contains forward-looking statements that are subject to various assumptions, risks and uncertainties. It should be read in conjunction with the “Forward-Looking Statements” section in each of DTE Energy’s, The Detroit Edison Company’s (“Detroit Edison”) and Michigan Consolidated Gas Company’s (“MichCon”) 2004 Form 10-K (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy, Detroit Edison and MichCon that discuss important factors that could cause DTE Energy’s, Detroit Edison’s and MichCon’s actual results to differ materially. DTE Energy, Detroit Edison and MichCon expressly disclaim any current intention to update any forward-looking statements contained in this report as a result of new information or future events or developments.

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: April 27, 2005

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 

EXHIBIT INDEX

Exhibit Number	Description
99.1	Earnings Release of DTE Energy Company dated April 27, 2005.
99.2	Financial Information Distributed for Media and Investor Relations Communications dated April 27, 2005.

EX-99.1

EXHIBIT 99.1

April 27, 2005

DTE ENERGY REPORTS FIRST QUARTER EARNINGS;
MAINTAINS 2005 EARNINGS GUIDANCE

     DETROIT – DTE Energy (NYSE:DTE) today reported 2005 first quarter earnings of $149 million, or $0.85 per diluted share, compared with reported earnings of $190 million, or $1.11 per diluted share, in the first quarter of 2004. DTE Energy also reported that 2005 first quarter cash from operations increased to $413 million, up from $280 million in the first quarter of 2004.

     Operating earnings, which exclude non-recurring items and discontinued operations, for the 2005 first quarter were $153 million, or $0.88 per diluted share, compared with 2004 first quarter operating earnings of $152 million, or $0.89 per diluted share. Reconciliations of reported to operating earnings for the first quarters of 2005 and 2004 are at the end of this release.

     “While the quarter included two timing items that shift earnings to future periods, the underlying earnings power and strong cash performance show we are on track to meet our 2005 financial goals,” said Anthony F. Earley Jr., DTE Energy chairman and CEO. “We have made tremendous progress at Detroit Edison, and we expect to continue this progress with the resolution of our rate restructuring filing by the end of 2005. In addition, I am enthusiastic about opportunities at our non-utility businesses to continue their long track record of disciplined growth.”

     Operating earnings results for the first quarter of 2005, by business unit, were as follows:

•

DTE Energy Resources operating earnings were $0.33 per diluted share versus $0.32 per diluted share in first quarter 2004. The utility operations of this business unit, which are the power generation services of Detroit Edison, increased $0.02 per share during the 2005 first quarter. Gross margins increased primarily due to rate increases as a result of the Michigan Public Service Commission’s (MPSC) final rate order issued in November 2004. The first quarter of 2005 was higher due to the realignment of merger interest to the holding company and lower operation and maintenance expenses. Partially offsetting these improvements were increased depreciation and amortization expenses resulting from recording fewer regulatory assets in the first quarter of 2005.

The non-utility operations of this business unit include the company’s energy services, energy marketing and trading, coal services and biomass businesses. Operating earnings at these non-utility operations were $0.26 per diluted share, a decrease of $0.01 over first quarter 2004. Performance for the quarter was negatively affected by $0.15 per diluted share due to accounting deferrals of a portion of the gains received from the sale of interests in the company’s synfuel facilities. The value of tax credits generated from synfuel production is reduced if the “Reference Price” of oil within the year exceeds a threshold price and is eliminated entirely if the Reference Price exceeds a phase-out price. DTE Energy believes the probability of breaching this range is remote, but accounting guidance requires near total certainty that the first dollar will not be lost from breaching the threshold price in order to recognize the anticipated gains on the sale of interests in the company’s synfuel facilities. Until this

	conservative gain recognition criterion is met, these gains will be deferred. It is possible that gains will be deferred in the first, second and/or third quarters of each year until there is persuasive evidence that no tax credit devaluation will occur for the applicable calendar year. This could result in shifting earnings from earlier quarters to later quarters of a calendar year. As a means to partially mitigate the risk of tax credit devaluation and protect synfuel cash flow, the company entered into oil price derivatives, which are marked to market until the contracts settle later in 2005. Given the high oil prices in the first quarter of 2005, DTE Energy recognized mark to market gains of $0.18 per share. In the absence of revenue deferral and mark to market oil price derivative gains, operating earnings from synfuel operations would have been $0.11 per share higher in first quarter of 2005 than in first quarter 2004, primarily due to higher synfuel production.
	Based on positive economics, a $0.15 per diluted share decline in accounting earnings from the company’s CoEnergy Portfolio also affected non-utility earnings. During the first quarter of 2005, the company made the economically positive decision to defer the withdrawal of gas from storage due to an inversion in the forward price curve for natural gas. Since accounting rules require the gas inventory to be valued at its average cost, while the forward sales are marked to market, this decision resulted in an accounting loss during the first quarter. DTE Energy expects to reverse this loss when it withdraws the gas from storage in the next storage cycle.
•	DTE Energy Distribution reported operating earnings of $0.23 per diluted share versus $0.15 per diluted share in first quarter 2004. The utility operations of this business unit are the electric distribution services of Detroit Edison. These utility operations experienced a quarter-over-quarter increase of $0.08 per diluted share, driven primarily by a decrease in operation and maintenance expense due to the MPSC mandated reclassification of high voltage transmission costs to Detroit Edison’s power generation unit and other cost saving initiatives. The 2005 first quarter also benefited from lower uncollectible accounts receivable expense. These improvements were partially offset by higher costs for the funding of low-income customer assistance and increased pension and health care costs.
	The non-utility operations of this business unit consist primarily of DTE Energy Technologies, which markets and distributes a portfolio of distributed generation products and services. Quarter-over-quarter operating losses at this business were flat at $0.02 per diluted share.
•	DTE Energy Gas recorded operating earnings of $0.35 per diluted share versus $0.45 per diluted share in first quarter 2004. The Energy Gas utility operations include the gas distribution services provided by MichCon. Utility operations were down $0.13 per diluted share primarily due to a timing-related tax adjustment, higher reserves for uncollectible accounts receivables and increased pension and health care costs. The increase in uncollectible accounts expense reflects higher past due amounts attributable to an increase in gas prices, continued weak economic conditions and a lack of adequate public assistance for low-income customers. The impact of interim rate relief was not large enough to offset these cost increases, which highlights the need for the MPSC to issue an order for final rate relief at MichCon.
	Non-utility operations of this business unit include the production of gas in northern Michigan and the gathering, transporting, processing and storage of gas. Operating earnings

	from these businesses increased by $0.03 per diluted share quarter-over-quarter due primarily to increased revenue at the Gas Storage business.
•	Corporate & Other includes non-allocated interest costs, as well as certain non-utility investments, including assets held for sale and investments in emerging energy technologies. Corporate & Other operating losses were $0.03 per diluted share, which was flat compared with the first quarter 2004.

     Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.

2005 Outlook

DTE Energy reconfirmed its 2005 earnings guidance of $3.30 to $3.60 per diluted share.

     “While we are still awaiting a final order in our MichCon rate case, we anticipate resolution shortly, and we remain confident that we will hit our 2005 earnings target for DTE Energy,” said David E. Meador, DTE Energy executive vice president and chief financial officer.

Recent Events and Developments

Moody’s Upgrades Its Outlook for DTE Energy

     On April 22, 2005, Moody’s Investors Service changed its outlook on DTE Energy and Detroit Edison to stable from negative due to an expected improvement in financial performance over the next several years. Moody’s also affirmed the senior unsecured rating of DTE Energy at “Baa2” and the issuer rating of Detroit Edison at “Baa1.”

Detroit Edison Files 2004 Net Stranded Costs and 2004 Power Supply Cost Recovery Reconciliation Case

     On March 31, 2005, Detroit Edison filed a joint application and testimony (MPSC case U-14474) in its 2004 PSCR Reconciliation Case and its 2004 Net Stranded Cost Recovery Case in accordance with the MPSC’s direction in Detroit Edison’s Nov. 2004 final rate order. The conjoined proceeding will provide a comprehensive true-up of the 2004 PSCR and stranded cost, including treatment of Detroit Edison’s third party wholesale sale revenue. A prehearing conference is scheduled for May 17, 2005.

Detroit Edison Gains Agreement on Accounting for Business System Implementation Costs

     On March 28, 2005, Detroit Edison signed an agreement with the MPSC and other parties regarding the accounting treatment for its business computer system modernization project (MPSC case U-14201). The agreement allows Detroit Edison to defer up to $60 million of costs that would normally be expensed as regulatory assets, beginning Jan. 1, 2006. These regulatory assets will be recovered as part of a subsequent Detroit Edison general rate case order.

Detroit Edison Files to Implement Equalization Mechanism for Other Post Employment Benefits (OPEB)

     On Feb. 10, 2005, Detroit Edison filed for authority to institute a tracking mechanism for OPEB, which are principally retiree health care (MPSC case U-14428). This mechanism would

recognize differences between cost levels collected in rates and the actual costs under current accounting rules. If annual OPEB expense is greater than the net expense collected in rates, the difference would be recognized as a regulatory asset. Alternatively, if annual OPEB expense is less than the net expense collected in rates, the difference would be recognized as a regulatory liability. The regulatory asset or liability would be reconciled on an annual basis, and customers would either receive a credit or charge on their bill depending on whether OPEB was higher or lower than the amount in rates. The MPSC Staff is scheduled to file testimony in this case by July 28, 2005.

Detroit Edison Files Rate Restructuring Proposal

     On Feb. 4, 2005, Detroit Edison filed the rate restructuring proposal (MPSC case U-14399) mandated by the MPSC’s final order in Detroit Edison’s general rate case. The primary purpose of this filing is to ensure that all customers, including participants in the Customer Choice program, pay their fair and proportionate share of the cost of each element of service. This will be achieved through the creation of a fair, equitable and unbundled rate structure that is free of subsidization and based on actual cost of service. In addition, Detroit Edison’s proposed method will provide a rational transition period for the removal of existing rate subsidies. Detroit Edison is not requesting any incremental revenues from this rate restructuring proposal above those granted in the final rate order. The MPSC Staff is scheduled to file testimony in this case by June 9, 2005.

     This earnings announcement, as well as a package of detailed financial information, is available on the company’s website at www.dteenergy.com/investors.

     DTE Energy will conduct a conference call with the investment community at 8:30 a.m. EDT Thursday, April 28, to discuss first quarter 2005 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/investors. The internet broadcast will be archived on the company’s website.

     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 herein 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 press release 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: the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; economic climate and growth or decline in the geographic areas where we do business; environmental issues, laws and regulations, and the cost of remediation and compliance associated therewith; nuclear regulations and operations associated with nuclear facilities; the higher price of oil and its impact on the value of Section 29 tax credits, and the ability to utilize and/or sell interests in facilities producing such credits; implementation of electric and gas Customer Choice programs; impact of electric and gas utility restructuring in Michigan, including legislative amendments; employee relations and the impact of collective bargaining agreements; unplanned outages; access to capital markets and capital market conditions and the results of other financing efforts which can be affected by credit agency ratings; the timing and extent of changes in interest rates; the level of borrowings; changes

in the cost of coal and the availability of coal and other raw materials, purchased power and natural gas; effects of competition; impact of regulation by FERC, MPSC, NRC and other applicable governmental proceedings and regulations; contributions to earnings by non-utility businesses; changes in federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits; the ability to recover costs through rate increases; the availability, cost, coverage and terms of insurance; the cost of protecting assets against, or damage due to, terrorism; changes in accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues; and changes in the economic and financial viability of our suppliers, customers and trading counterparties, and the continued ability of such parties to perform their obligations to the company. This press release should also be read in conjunction with the “Forward-Looking Statements” section in each of DTE Energy’s, MichCon’s and Detroit Edison’s 2004 Form 10-K (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy, MichCon and Detroit Edison.

- 30 -

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
	March 31
(in Millions, Except per Share Amounts)	2005			2004
Operating Revenues	$	2,344		$	2,093
Operating Expenses
Fuel, purchased power and gas		969			741
Operation and maintenance		898			783
Depreciation, depletion and amortization		208			167
Taxes other than income		91			85
Asset gains and losses, net (1)		(80	)		(50	)
		2,086			1,726
Operating Income		258			367
Other (Income) and Deductions
Interest expense		126			131
Interest income		(13	)		(10	)
Other income		(12	)		(11	)
Other expense		11			15
		112			125
Income Before Income Taxes and Minority Interest		146			242
Income Tax Provision		50			75
Minority Interest (2)		(53	)		(30	)
Income from Continuing Operations		149			197
Income (Loss) from Discontinued Operations, net of tax		—			(7	)
Net Income	$	149		$	190
Basic Earnings per Common Share
Income from continuing operations	$	.86		$	1.16
Discontinued operations		—			(0.04	)
Total	$	.86		$	1.12
Diluted Earnings per Common Share
Income from continuing operations	$	.85		$	1.15
Discontinued operations		—			(0.04	)
Total	$	.85		$	1.11
Average Common Shares
Basic		174			170
Diluted		175			170
Dividends Declared per Common Share	$	.515		$	.515

(1)	Primarily represents gains on the sale of interests in synfuel projects.
(2)	Primarily represents our partners’ share of synfuel project losses.

DTE Energy Company
Segment Net Income (Unaudited)

	Three Months Ended March 31
	2005										2004
	Reported							Operating			Reported							Operating
(in Millions)	Earnings			Adjustments				Earnings			Earnings			Adjustments				Earnings
Energy Resources
Utility – Power Generation	$	12		$	—			$	12		$	16		$	1		B	$	10
															(7	)	D
Non-utility
Energy Services		72			(3	)	A		69			38			—				38
Energy Marketing & Trading		(22	)		—				(22	)		57			(48	)	E		9
Other		—			—				—			(2	)		—				(2	)
Total Non-utility		50			(3	)			47			93			(48	)			45
		62			(3	)			59			109			(54	)			55
Energy Distribution
Utility – Power Distribution		43			2		B		45			28			2		B		30
Non-utility		(4	)		—				(4	)		(3	)		—				(3	)
		39			2				41			25			2				27
Energy Gas
Utility – Gas Distribution		50			1		B		51			71			1		B		72
Non-utility		9			—				9			4			—				4
		59			1				60			75			1				76
Corporate and Other		(11	)		4		C		(7	)		(12	)		6		C		(6	)
		(11	)		4				(7	)		(12	)		6				(6	)
Income from Continuing Operations
Utility		105			3				108			115			(3	)			112
Non-utility		55			(3	)			52			94			(48	)			46
Corporate and Other		(11	)		4				(7	)		(12	)		6				(6	)
		149			4				153			197			(45	)			152
Discontinued Operations
Impairment loss/Gain on sale		—			—				—			(7	)		7		F		—
		—			—				—			(7	)		7				—
Net Income	$	149		$	4			$	153		$	190		$	(38	)		$	152

Adjustments key
A) 2006 oil price option	Mark to market adjustment on 2006 oil price option
B) DTE2 project costs	Incremental DTE2 project costs
C) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
D) Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
E) Adjustment for contract termination/modification	Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company
F) Impairment loss/Discontinued operations	Impairment charge relating to the expected loss on sale of Southern Missouri Gas Company

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

	Three Months Ended March 31
	2005										2004
	Reported							Operating			Reported							Operating
	Earnings			Adjustments				Earnings			Earnings			Adjustments				Earnings
Energy Resources
Utility – Power Generation	$	0.07		$	—			$	0.07		$	0.09		$	(0.04	)	D	$	0.05
Non-utility
Energy Services		0.41			(0.02	)	A		0.39			0.22			—				0.22
Energy Marketing & Trading		(0.13	)		—				(0.13	)		0.34			(0.28	)	E		0.06
Other		—			—				—			(0.01	)		—				(0.01	)
Total Non-utility		0.28			(0.02	)			0.26			0.55			(0.28	)			0.27
		0.35			(0.02	)			0.33			0.64			(0.32	)			0.32
Energy Distribution
Utility – Power Distribution		0.24			0.01		B		0.25			0.16			0.01		B		0.17
Non-utility		(0.02	)		—				(0.02	)		(0.02	)		—				(0.02	)
		0.22			0.01				0.23			0.14			0.01				0.15
Energy Gas
Utility – Gas Distribution		0.29			0.01		B		0.30			0.42			0.01		B		0.43
Non-utility		0.05			—				0.05			0.02			—				0.02
		0.34			0.01				0.35			0.44			0.01				0.45
Corporate and Other		(0.06	)		0.03		C		(0.03	)		(0.07	)		0.04		C		(0.03	)
		(0.06	)		0.03				(0.03	)		(0.07	)		0.04				(0.03	)
Income from Continuing Operations
Utility		0.60			0.02				0.62			0.67			(0.02	)			0.65
Non-utility		0.31			(0.02	)			0.29			0.55			(0.28	)			0.27
Corporate and Other		(0.06	)		0.03				(0.03	)		(0.07	)		0.04				(0.03	)
		0.85			0.03				0.88			1.15			(0.26	)			0.89
Discontinued Operations
Impairment loss/Gain on sale		—			—				—			(0.04	)		0.04		F		—
		—			—				—			(0.04	)		0.04				—
Net Income	$	0.85		$	0.03			$	0.88		$	1.11		$	(0.22	)		$	0.89

Adjustments key
A) 2006 oil price option	Mark to market adjustment on 2006 oil price option
B) DTE2 project costs	Incremental DTE2 project costs
C) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
D) Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
E) Adjustment for contract termination/modification	Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company
F) Impairment loss/Discontinued operations	Impairment charge relating to the expected loss on sale of Southern Missouri Gas Company

EX-99.2

Exhibit 99.2

DTE Energy Company
Net Income Summary (Preliminary/Unaudited)

	Three Months Ended March 31
	2005									2004
	Reported						Operating			Reported						Operating
(in Millions)	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Energy Resources
Utility — Power Generation	$	12		$	—		$	12		$	16		$	1	B	$	10
														(7	)D
Non-utility
Synfuels		67			(3	)A		64			40			—			40
Coke Batteries		11			—			11			4			—			4
On Site Energy Projects		5			—			5			3			—			3
Power Generation		(3	)		—			(3	)		(3	)		—			(3	)
Other Energy Services		(1	)		—			(1	)		(1	)		—			(1	)
Coal Services		5			—			5			3			—			3
Peptec		(1	)		—			(1	)		(2	)		—			(2	)
Biomass Energy		1			—			1			1			—			1
Energy Trading & CoEnergy Portfolio		(22	)		—			(22	)		57			(48	)E		9
Energy Resources Overheads/Development		(12	)		—			(12	)		(9	)		—			(9	)
Total Non-utility		50			(3	)		47			93			(48	)		45
		62			(3	)		59			109			(54	)		55
Energy Distribution
Utility — Power Distribution		43			2	B		45			28			2	B		30
Non-utility		(4	)		—			(4	)		(3	)		—			(3	)
		39			2			41			25			2			27
Energy Gas
Utility — Gas Distribution		50			1	B		51			71			1	B		72
Non-utility		9			—			9			4			—			4
		59			1			60			75			1			76
Corporate and Other
Energy Technology Investments		(1	)		—			(1	)		—			—			—
Other Holding Company		(10	)		4	C		(6	)		(12	)		6	C		(6	)
		(11	)		4			(7	)		(12	)		6			(6	)
Discontinued Operations
Impairment loss/Gain on sale.		—			—			—			(7	)		7	F		—
		—			—			—			(7	)		7			—
Net Income	$	149		$	4		$	153		$	190		$	(38	)	$	152

Adjustments key
A) 2006 oil price option	Mark to market adjustment on 2006 oil price option
B) DTE2 project costs	Incremental DTE2 project costs
C) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
D) Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
E) Adjustment for contract termination / modification	Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company
F) Impairment loss / Discontinued operations.	Impairment charge relating to the expected loss on sale of Southern Missouri Gas Company

1

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES

Earnings Variance Analysis (Preliminary/Unaudited)

Q1 2004 Reported Earnings per Share	$	1.11
Adjustment for contract termination / modification with a pipeline company		(0.28	)
Impairment charge for the expected loss on sale of Southern Missouri Gas Co.		0.04
Quarterly adjustment at DTE Energy to normalize its effective tax rate		0.04
Stranded cost adjustment made pursuant to Nov. 2004 MPSC order		(0.04	)
Incremental non-recurring DTE2 project costs		0.02
Q1 2004 Operating Earnings per Share	$	0.89
Electric Utility
Rate Relief		0.19
Economy		(0.04	)
Other Margins		(0.03	)
Regulatory Deferrals		(0.05	)
Merger Interest		0.06
Other		(0.03	)
Gas Utility
Rate Relief		0.05
Gas Margins		(0.03	)
Uncollectibles		(0.02	)
Pension/Health Care		(0.03	)
Tax Adjustments		(0.07	)
Other		(0.03	)
Non-Utility
Net Synfuel Impact		0.13
Gas Midstream		0.03
Coke Batteries		0.04
Energy Trading & CoEnergy Portfolio		(0.18	)
Holding Company & Share Dilution		—
Q1 2005 Operating Earnings per Share	$	0.88
Quarterly adjustment at DTE Energy to normalize its effective tax rate		(0.03	)
Incremental non-recurring DTE2 project costs		(0.02	)
Mark to market adjustment on 2006 oil price option		0.02
Q1 2005 Reported Earnings per Share	$	0.85

DTE Energy Company
Consolidated Statement of Financial Position (UNAUDITED)

	(Unaudited)
	March 31			December 31
	2005			2004
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents	$	60		$	56
Restricted cash		74			126
Accounts receivable
Customer (less allowance for doubtful accounts of $134 and $129, respectively)		1,157			880
Accrued unbilled revenues		294			378
Other		468			383
Inventories
Fuel and gas		362			509
Materials and supplies		152			159
Assets from risk management and trading activities		423			296
Other		259			209
		3,249			2,996
Investments
Nuclear decommissioning trust funds		593			590
Other		556			558
		1,149			1,148
Property
Property, plant and equipment		18,140			18,011
Less accumulated depreciation and depletion		(7,611	)		(7,520	)
		10,529			10,491
Other Assets
Goodwill		2,067			2,067
Regulatory assets		2,151			2,119
Securitized regulatory assets		1,414			1,438
Notes receivable		486			529
Assets from risk management and trading activities		192			125
Prepaid pension assets		184			184
Other		190			200
		6,684			6,662
Total Assets	$	21,611		$	21,297

     

3

DTE Energy Company
Consolidated Statement of Financial Position ( UNAUDITED )

	(Unaudited)
	March 31			December 31
	2005			2004
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	863		$	892
Accrued interest		116			111
Dividends payable		90			90
Accrued payroll		34			33
Income taxes		—			16
Short-term borrowings		439			403
Gas inventory equalization		278			—
Current portion long-term debt, including capital leases		347			514
Liabilities from risk management and trading activities		537			369
Other		527			581
		3,231			3,009
Other Liabilities
Deferred income taxes		1,177			1,124
Regulatory liabilities		828			817
Asset retirement obligations		930			916
Unamortized investment tax credit		140			143
Liabilities from risk management and trading activities		261			224
Liabilities from transportation and storage contracts		378			387
Accrued pension liability		289			265
Deferred gains from asset sales		386			414
Minority interest		128			132
Nuclear decommissioning		78			77
Other		688			635
		5,283			5,134
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,671			5,673
Securitization bonds		1,345			1,400
Equity-linked securities		173			178
Trust preferred-linked securities		289			289
Capital lease obligations		63			66
		7,541			7,606
Commitments and Contingencies
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized,174,175,040 and 174,209,034 shares issued and outstanding, respectively		3,309			3,323
Retained earnings		2,442			2,383
Accumulated other comprehensive loss		(195	)		(158	)
		5,556			5,548
Total Liabilities and Shareholders’ Equity	$	21,611		$	21,297

     

4

DTE Energy Company

Consolidated Statement of Cash Flows (UNAUDITED)

	Three Months Ended
	March 31
	2005			2004
(in Millions)
Operating Activities
Net income	$	149		$	190
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		208			167
Deferred income taxes		65			113
Gain on sale of interests in synfuel projects		(82	)		(49	)
Gain on sale of assets, net		(1	)		(3	)
Partners’ share of synfuel project losses		(71	)		(36	)
Contributions from synfuel partners		47			17
Changes in assets and liabilities, exclusive of changes shown separately		98			(119	)
Net cash from operating activities		413			280
Investing Activities
Plant and equipment expenditures — utility		(172	)		(161	)
Plant and equipment expenditures — non-utility		(26	)		(18	)
Proceeds from sale of interests in synfuel projects		63			26
Proceeds from sale other assets		2			31
Restricted cash for debt redemptions		52			54
Other investments		(31	)		(26	)
Net cash used for investing activities		(112	)		(94	)
Financing Activities
Issuance of long-term debt		395			—
Redemption of long-term debt		(628	)		(232	)
Short-term borrowings, net		36			134
Issuance of common stock		—			11
Repurchase of common stock		(9	)		—
Dividends on common stock		(90	)		(87	)
Other		(1	)		(2	)
Net cash used for financing activities		(297	)		(176	)
Net Increase (Decrease) in Cash and Cash Equivalents		4			10
Cash and Cash Equivalents at Beginning of Period		56			54
Cash and Cash Equivalents at End of Period	$	60		$	64

     

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)

	Three Months ended
	March 31
(in Millions)	2005			2004
Operating Revenues	$	990		$	886
Operating Expenses
Fuel and purchased power		301			216
Operation and maintenance		321			343
Depreciation and amortization		150			114
Taxes other than income		69			68
		841			741
Operating Income		149			145
Other (Income) and Deductions
Interest expense		64			72
Interest income		(1	)		—
Other income		(12	)		(15	)
Other expense		18			22
		69			79
Income Before Income Taxes		80			66
Income Tax Provision		25			22
Reported Earnings		55			44
Unusual Items
Stranded Cost adjustment		—			(7	)
DTE2 Capitalized costs		2			3
Operating Earnings	$	57		$	40
The Consolidated Statement of Operations (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

Michigan Consolidated Gas Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended
	March 31
(in Millions)	2005			2004
Operating Revenues	$	862		$	715
Operating Expenses
Cost of gas		627			488
Operation and maintenance		113			97
Depreciation, depletion and amortization		27			27
Taxes other than income		12			12
Asset gains and losses, net Taxes other than income		—			(2	)
		779			622
Operating Income		83			93
Other (Income) and Deductions
Interest expense		14			14
Interest income		(2	)		(2	)
Other, net		—			1
		12			13
Income Before Income Taxes		71			80
Income Tax Provision		19			10
Reported Earnings		52			70
DTE2 Capitalized Costs		1			1
Operating Earnings	$	53		$	71
The Consolidated Statement of Operations (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

DTE Energy Debt/Equity Calculation

As of March 31, 2005
($ millions)

short-term borrowings	439
current portion LTD + cap leases	347
long-term debt	5,671
securitization bonds	1,345
capital leases	63
less MichCon short-term debt	—
less securitization debt, including current portion	(1,446
Total debt	6,419
Trust preferred	289
Mandatory convertible	173
Total preferred/ other	462
Equity	5,556
Total capitalization	12,437
Debt	51.6
Preferred stock	3.7
Common shareholders’ equity	44.7
Total	100.0

Sales Analysis — Q1 2005

Electric Sales — Detroit Edison Service Area (GWh)

	Q1 2005		Q1 2004		% Change
Residential		4,051		4,068		0	%
Commercial		3,365		3,491		-4	%
Industrial		2,896		2,754		5	%
Other		666		666		0	%
		10,978		10,979		0	%
Interconnection		1,719		1,630		5	%
Choice*		1,914		2,142		-11	%
TOTAL SALES		14,611		14,751		-1	%

* Includes Dearborn Industrial Group sales

Electric Revenue — Detroit Edison Service Area ($000s)

	Q1 2005		Q1 2004		% Change
Residential		361,539		360,250		0	%
Commercial		286,344		290,216		-1	%
Industrial		154,662		133,413		16	%
Other		30,118		29,181		3	%
		832,663		813,060		2	%
Interconnection		79,273		61,704		28	%
Choice*		37,269		27,557		35	%	**
TOTAL REVENUES		949,205		902,321		5	%

* Distribution charge includes Dearborn Industrial Group revenues

** Reflects impact of interim rate order eliminating Choice
     transition credit & implementing transition charges

Gas Sales — MichCon Service Area (Mcf)

	Q1 2005		Q1 2004		% Change
Residential		61,048,508		60,701,689		1	%
Commercial		20,370,715		20,315,556		0	%
Industrial		542,713		1,761,162		-69	%
		81,961,936		82,778,407		-1	%
End User
Transportation*		49,593,455		49,878,340		-1	%
TOTAL SALES		131,555,391		132,656,747		-1	%

* Includes choice customers

Gas Revenue — MichCon Service Area ($000s)

	Q1 2005		Q1 2004		% Change
Residential		538,989,519		437,059,933		23%	*
Commercial		182,707,023		149,147,387		23%
Industrial		4,819,665		12,696,249		-62%
		726,516,207		598,903,569		21%
End User
Transportation**		45,422,133		42,316,720		7%
TOTAL REVENUES		771,938,340		641,220,289		20%

* Reflects impact of interim rate relief and a higher gas cost
    recovery factor
** Includes choice customers

Weather

Cooling Degree Days
Detroit Edison service territory

	Q1 2005		Q1 2004		% Change
Actuals		0		0		n/m
Normal		0		0
Deviation from normal		n/m		n/m

n/m: not meaningful

Heating Degree Days
MichCon service territory

	Q1 2005			Q1 2004			% Change
Actuals		3,388			3,358			1	%
Normal*		3,385			3,220
Deviation from normal		0	%		4	%

* 2005 data based on 30-year average, 2004 data based on 10-year
    average