-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E5XM7ft/t0SJ92q4olwAsxQnl9YTSse/O3V96Sk81bI38X8R6ybK6N+eLFg+HfAu nrJ+Y9TzZCgND2pvuOIUTg== 0000950137-07-013441.txt : 20070831 0000950137-07-013441.hdr.sgml : 20070831 20070831172634 ACCESSION NUMBER: 0000950137-07-013441 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070831 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070831 DATE AS OF CHANGE: 20070831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DTE ENERGY CO CENTRAL INDEX KEY: 0000936340 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 383217752 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11607 FILM NUMBER: 071095305 BUSINESS ADDRESS: STREET 1: 2000 2ND AVENUE STREET 2: 2343 WCB CITY: DETROIT STATE: MI ZIP: 48226 BUSINESS PHONE: 3132354000 MAIL ADDRESS: STREET 1: 2000 2ND AVENUE STREET 2: 2343 WCB CITY: DETROIT STATE: MI ZIP: 48226 FORMER COMPANY: FORMER CONFORMED NAME: DTE HOLDINGS INC DATE OF NAME CHANGE: 19950127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DETROIT EDISON CO CENTRAL INDEX KEY: 0000028385 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 380478650 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02198 FILM NUMBER: 071095306 BUSINESS ADDRESS: STREET 1: 2000 2ND AVENUE STREET 2: 2343 WCB CITY: DETROIT STATE: MI ZIP: 48226 BUSINESS PHONE: 3132354000 MAIL ADDRESS: STREET 1: 2000 2ND AVENUE STREET 2: 2343 WCB CITY: DETROIT STATE: MI ZIP: 48226 8-K 1 k18337e8vk.htm CURRENT REPORT DATED AUGUST 31, 2007 e8vk
Table of Contents

 
 
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): August 31, 2007
         
    Exact Name of Registrant as Specified in    
    its Charter, State of Incorporation,    
Commission   Address of Principal Executive Offices   I.R.S. Employer
File Number   and Telephone 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, Michigan 48226-1279    
 
  313-235-4000    
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 8.01. Other Events
Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Summary of Detroit Edison's Supplement to its General Rate Case Filing dated August 31, 2007


Table of Contents

Item 8.01. Other Events
     On August 31, 2007, The Detroit Edison Company (“Detroit Edison”) filed a supplement to its general rate case (filed on April 13, 2007) with the Michigan Public Service Commission (“MPSC”). A summary of key provisions of this filing can be found posted to the DTE Energy Company (“DTE Energy”) website at www.dteenergy.com and attached hereto as Exhibit 99.1. The full testimony of the filing (Case Number U-15244) will be available on the MPSC’s website (http://efile.mpsc.cis.state.mi.us/efile/).
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1   Summary of Detroit Edison’s Supplement to its General Rate Case Filing dated August 31, 2007.
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 DTE Energy’s and Detroit Edison’s 2006 Forms 10-K and their 2007 quarterly reports on Form 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison that discuss important factors that could cause DTE Energy’s and Detroit Edison’s actual results to differ materially. DTE Energy and Detroit Edison 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.

2


Table of Contents

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: August 31, 2007  DTE ENERGY COMPANY
(Registrant)
 
 
  /s/ N.A. Khouri    
  N.A. Khouri    
  Vice President and Treasurer   
 
  THE DETROIT EDISON COMPANY
(Registrant)
 
 
  /s/ N.A. Khouri    
  N.A. Khouri    
  Vice President and Treasurer   
 

3


Table of Contents

EXHIBIT INDEX
     
Exhibit    
Number   Description
 
   
99.1
  Summary of Detroit Edison’s Supplement to its General Rate Case Filing dated August 31, 2007.

 

EX-99.1 2 k18337exv99w1.htm SUMMARY OF DETROIT EDISON'S SUPPLEMENT TO ITS GENERAL RATE CASE FILING DATED AUGUST 31, 2007 exv99w1
 

Exhibit 99.1
(DTE Energy Logo)
Summary of Detroit Edison 2007 Supplemental Rate Case Filing1
August 31, 2007
The Detroit Edison Company today filed supplemental testimony and exhibits in its pending base rate case (case no. U-15244). The supplemental testimony addresses recovery of the Merger Control Premium and the change in Michigan’s tax law to the Michigan Business Tax from the Single Business Tax.
Merger Control Premium
On July 3, 2007, the Michigan Court of Appeals issued an opinion relative to Detroit Edison’s last general rate case (U-13808). The court ruled that Detroit Edison is entitled to recover Merger Control Premium costs incurred to realize substantial synergy savings associated with its 2001 merger with MCN Energy. Therefore, Detroit Edison is providing supplemental testimony on this issue and requesting that the Michigan Public Service Commission (MPSC) include the costs of the Merger Control Premium in its rate case.
The Merger Control Premium cost of approximately $893 million is computed as the difference between the total purchase value of MCN of $2,488 million and the market value of MCN immediately prior to the announcement of the merger of $1,595 million. Since approximately 66% of the merger synergies have been realized at Detroit Edison, that percentage was used to allocate the Merger Control Premium to Detroit Edison. This cost is then amortized over a 40 year period and results in a revenue requirement of approximately $61 million for 2008.
The Court of Appeals decision has been appealed to the Michigan Supreme Court by various parties, including the MPSC. The timing and outcome of this appeal are uncertain.
 
1   This document includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms “anticipate”, “believe”, “estimate”, and similar words. These statements should be read in conjunction with the “Forward-Looking Statements” section in DTE Energy Company’s “DTE Energy” and Detroit Edison’s 2006 Forms 10-K and their 2007 quarterly reports on Form 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison that discuss important factors that could cause DTE Energy’s and Detroit Edison’s actual results to differ materially, including, but not limited to, the speed and nature of regulatory approvals. DTE Energy and Detroit Edison expressly disclaim any current intention to update any forward-looking statements contained in this document as a result of new information or future events.

 


 

Michigan Business Tax
In early 2007, the Michigan State Legislature repealed the Michigan Single Business Tax (SBT) effective December 31, 2007. In July 2007, Michigan Governor Granholm signed into law the new Michigan Business Tax (MBT) effective January 1, 2008. In its April 13 rate case filing, Detroit Edison utilized the SBT as a placeholder until the Legislature enacted a replacement tax, and committed that it would update its case to reflect the financial impact of any new MBT. The supplemental testimony filed today increases Detroit Edison’s revenue requirement by approximately $5 million to reflect the financial impact of the new MBT. Additionally, since components of the new MBT are considered income taxes under generally accepted accounting principles, the Company is also requesting that the Commission confirm that the income tax policy authorized in a prior Order relative to federal income tax for ratemaking and accounting also applies to the new MBT. The Company proposes that the MPSC in this case grant the specific authority for the recovery and recording of the MBT and associated deferred income taxes.
In addition, Detroit Edison has included the financial impact of the new MBT related to its securitization bonds (Fermi nuclear plant assets) as part of its revenue requirements in this case. The financial impact in state taxes related to securitization is approximately $12 million. Because of the significant amount of this impact, Detroit Edison’s preferred method of recovery would be to include this MBT expense as part of the securitization tax surcharge filing, which is computed annually in Case No. U-12478. Detroit Edison would plan to reflect the impact of the MBT in the annual securitization true-up procedure.
If the MPSC agrees with this proposal to include the MBT expense related to securitization as part of Detroit Edison’s annual securitization true-up filing, then Detroit Edison would propose to remove this cost from the final revenue deficiency in this proceeding.
Incremental Impact on Revenue Deficiency and Customer Rates
The supplemental changes as described above, along with a reduction in O&M expense due to a minor correction, results in a net increase of approximately $76 million in Detroit Edison’s revenue requirement. Including this increase, Detroit Edison is now seeking MPSC approval to recover a total 2008 revenue deficiency of approximately $199 million.

 


 

The Detroit Edison Company
2008 Jurisdictional Electric Revenue Deficiency by Major Component
($ in millions)
             
        2008 Jurisdictional
Line   Description   Deficiency
1
  Economic Cost Pressures / Inflation   $ 58  
2
  Rate Base Additions     198  
3
  Net PEP Costs Reductions     (112 )
4
  Benefits     (6 )
5
  Revenues / Fuel and Purchased Power     (18 )
6
  Other Items (Inc. Taxes)     3
 
           
7
  Total Requested 2008 Rate Relief As-Filed April 13, 2007   $ 123  
 
           
 
           
 
  Supplemental Filing Adjustments        
 
           
8
  DTE / MCN Merger Control Premium     61  
9
  Revenue Conversion Factor Impact due to MBT Change     5  
10
  Securitization MBT     12  
11
  Environmental O&M Costs Correction     (2 )
 
           
12
  Total Supplemental Filing Adjustments     76  
 
           
13
  Adjusted Total Requested 2008 Rate Relief As-Filed August 31, 2007   $ 199  
 
           

 

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