EX-99.2 3 k47485exv99w2.htm EXHIBIT 99.2 EX-99.2
Exhibit 99.2
Full Year 2008 Supplemental Financial Information December 31, 2008


 

DTE Energy Company
Consolidated Statements of Financial Position
                 
    December 31  
(in Millions)   2008     2007  
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 86     $ 123  
Restricted cash
    86       140  
Accounts receivable (less allowance for doubtful accounts of $265 and $182, respectively)
               
Customer
    1,666       1,658  
Other
    166       514  
Accrued power and gas supply cost recovery revenue
    22       76  
Inventories
               
Fuel and gas
    333       429  
Materials and supplies
    206       204  
Deferred income taxes
    227       387  
Derivative assets
    316       181  
Other
    220       196  
Current assets held for sale
          83  
 
           
 
    3,328       3,991  
 
           
 
               
Investments
               
Nuclear decommissioning trust funds
    685       824  
Other
    595       446  
 
           
 
    1,280       1,270  
 
           
 
               
Property
               
Property, plant and equipment
    20,065       18,809  
Less accumulated depreciation and depletion
    (7,834 )     (7,401 )
 
           
 
    12,231       11,408  
 
           
 
               
Other Assets
               
Goodwill
    2,037       2,037  
Regulatory assets
    4,231       2,786  
Securitized regulatory assets
    1,001       1,124  
Intangible assets
    70       25  
Notes receivable
    115       87  
Derivative assets
    140       199  
Prepaid pension assets
          152  
Other
    157       116  
Noncurrent assets held for sale
          547  
 
           
 
    7,751       7,073  
 
           
 
               
Total Assets
  $ 24,590     $ 23,742  
 
           

 


 

DTE Energy Company
Consolidated Statements of Financial Position
                 
    December 31  
(in Millions, Except Shares)   2008     2007  
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 899     $ 1,189  
Accrued interest
    119       112  
Dividends payable
    86       87  
Short-term borrowings
    744       1,084  
Current portion long-term debt, including capital leases
    362       454  
Derivative liabilities
    285       281  
Deferred gains and reserves
    3       400  
Other
    515       566  
Current liabilities associated with assets held for sale
          48  
 
           
 
    3,013       4,221  
 
           
 
               
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    6,458       5,576  
Securitization bonds
    932       1,065  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    62       41  
 
           
 
    7,741       6,971  
 
           
 
               
Other Liabilities
               
Deferred income taxes
    1,958       1,824  
Regulatory liabilities
    1,202       1,168  
Asset retirement obligations
    1,340       1,277  
Unamortized investment tax credit
    96       108  
Derivative liabilities
    344       450  
Liabilities from transportation and storage contracts
    111       126  
Accrued pension liability
    871       68  
Accrued postretirement liability
    1,434       1,094  
Nuclear decommissioning
    114       134  
Other
    328       318  
Noncurrent liabilities associated with assets held for sale
          82  
 
           
 
    7,798       6,649  
 
           
 
               
Commitments and Contingencies
               
 
               
Minority Interest
    43       48  
 
           
 
               
Shareholders’ Equity
               
Common stock, without par value, 400,000,000 shares authorized, 163,019,596 and 163,232,095 shares issued and outstanding, respectively
    3,175       3,176  
Retained earnings
    2,985       2,790  
Accumulated other comprehensive loss
    (165 )     (113 )
 
           
 
    5,995       5,853  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 24,590     $ 23,742  
 
           

 


 

DTE Energy Company
Consolidated Statements of Cash Flows
                 
    Year Ended December 31  
(in Millions)   2008     2007  
Operating Activities
               
Net income
  $ 546     $ 971  
Adjustments to reconcile net income to net cash from operating activities:
               
Depreciation, depletion and amortization
    899       926  
Deferred income taxes
    348       144  
Gain on sale of non-utility business
    (128 )     (900 )
Other asset (gains), losses and reserves, net
    (4 )     (9 )
Gain on sale of interests in synfuel projects
    (31 )     (248 )
Impairment of synfuel projects
          4  
Partners’ share of synfuel project gains (losses)
    2       (188 )
Contributions from synfuel partners
    14       229  
Cumulative effect of accounting changes
           
Changes in assets and liabilities, exclusive of changes shown separately
    (87 )     196  
 
           
Net cash from operating activities
    1,559       1,125  
 
           
 
               
Investing Activities
               
Plant and equipment expenditures — utility
    (1,183 )     (1,035 )
Plant and equipment expenditures — non-utility
    (190 )     (264 )
Acquisitions, net of cash acquired
           
Proceeds from sale of interests in synfuel projects
    84       447  
Refunds to synfuel partners
    (387 )     (115 )
Proceeds from sale of non-utility business
     253       1,262  
Proceeds from sale of other assets, net
    25       85  
Restricted cash
    54       6  
Proceeds from sale of nuclear decommissioning trust fund assets
    232       286  
Investment in nuclear decommissioning trust funds
    (255 )     (323 )
Other investments
    (156 )     (19 )
 
           
Net cash from (used) for investing activities
    (1,523 )     330  
 
           
 
               
Financing Activities
               
Issuance of long-term debt
    1,310       50  
Redemption of long-term debt
    (446 )     (393 )
Repurchase of long-term debt
    (238 )      
Short-term borrowings, net
    (340 )     (47 )
Issuance of common stock
           
Repurchase of common stock
    (16 )     (708 )
Dividends on common stock
    (344 )     (364 )
Other
    (10 )     (6 )
 
           
Net cash used for financing activities
    (84 )     (1,468 )
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    (48 )     (13 )
Cash and Cash Equivalents Reclassified (to) from Assets Held for Sale
    11       (11 )
Cash and Cash Equivalents at Beginning of Period
    123       147  
 
           
Cash and Cash Equivalents at End of Period
  $ 86     $ 123  
 
           

 


 

The Detroit Edison Company
Consolidated Statements of Operations
                 
    Year Ended December 31  
(in Millions)   2008     2007  
Operating Revenues
  $ 4,874     $ 4,900  
 
           
 
               
Operating Expenses
               
Fuel and purchased power
    1,778       1,686  
Operation and maintenance
    1,322       1,422  
Depreciation and amortization
    743       764  
Taxes other than income
    232       277  
Asset (gains) and reserves, net
    (1 )     8  
 
           
 
    4,074       4,157  
 
           
 
               
Operating Income
    800       743  
 
           
 
               
Other (Income) and Deductions
               
Interest expense
    293       294  
Interest income
    (6 )     (7 )
Other income
    (51 )     (40 )
Other expenses
    47       30  
 
           
 
    283       277  
 
           
 
               
Income Before Income Taxes
    517       466  
 
               
Income Tax Provision
    186       149  
 
           
 
               
Reported Earnings
    331       317  
 
               
Adjustments
               
Detroit Thermal reserve
          17  
Regulatory asset surcharge
          6  
 
           
 
          23  
 
           
 
               
Operating Earnings
  $ 331     $ 340  
 
           

 


 

Michigan Consolidated Gas Company
Consolidated Statement of Operations
                 
    Year Ended December 31  
(in Millions)   2008     2007  
Operating Revenues
  $ 2,115     $ 1,842  
 
           
                 
Operating Expenses
               
Cost of gas
    1,351       1,139  
Operation and maintenance
    464       422  
Depreciation and amortization
    102       93  
Taxes other than income
    47       55  
Asset (gains), net
    (26 )     (3 )
 
           
 
    1,938       1,706  
 
           
Operating Income
    177       136  
 
           
 
               
Other (Income) and Deductions
               
Interest expense
    65       60  
Interest income
    (8 )     (10 )
Other income
    (11 )     (12 )
Other expenses
    13       4  
 
           
 
    59       42  
 
           
Income Before Income Taxes
    118       94  
 
               
Income Tax Provision
    38       23  
 
           
 
               
Reported Earnings
    80       71  
 
               
Adjustments
               
Performance Excellence Process
    4       6  
GCR disallowance
          6  
 
           
 
    4       12  
 
           
 
               
Operating Earnings
  $ 84     $ 83  
 
           

 


 

(DTE ENERGY LOGO)
DTE Energy Debt/Equity Calculation
As of December 31, 2008
($ millions)
         
Short-term borrowings
  $ 744  
Current portion of long-term debt, including capital leases
    362  
Mortgage bonds, notes and other
    6,458  
Securitization bonds
    932  
Capital lease obligations
    62  
less MichCon short-term debt
    (522 )
less Securitization bonds, including current portion
    (1,065 )
 
     
Total debt
    6,971  
 
       
Trust preferred-linked securities
    289  
 
     
Total preferred/ other
    289  
 
       
Equity
    6,010  
 
     
Total capitalization
  $ 13,270  
 
     
 
       
Debt
    52.5 %
Preferred
    2.2 %
Common shareholders’ equity
    45.3 %
 
     
 
       
Total
    100.0 %
 
     


 

(DTE ENERGY LOGO)
Sales Analysis — Q4 2008
Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q4 2008   Q4 2007   % Change
     
Residential
    3,537       3,806       -7 %
Commercial
    4,573       4,986       -8 %
Industrial
    3,012       3,364       -10 %
Other
    811       839       -3 %
     
 
    11,933       12,995       -8 %
Choice*
    377       629       -40 %
     
TOTAL SALES
    12,310       13,624       -10 %
     
* Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q4 2008   Q4 2007   % Change
     
Residential
    400,449       410,328       -2 %
Commercial
    431,144       446,154       -3 %
Industrial
    208,767       205,486       2 %
Other
    44,022       50,296       -12 %
 
    1,084,382       1,112,264       -3 %
Choice*
    10,622       12,149       -13 %
     
TOTAL REVENUES
    1,095,004       1,124,413       -3 %
     
* Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales — MichCon Service Area (Mcf)
                         
    Q4 2008   Q4 2007   % Change
     
Residential
    36,594       33,892       8 %
Commercial
    10,969       9,838       11 %
Industrial
    339       360       -6 %
     
 
    47,902       44,090       9 %
 
                       
End User Transportation*
    32,426       34,000       -5 %
     
TOTAL SALES
    80,328       78,090       3 %
     
* Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    Q4 2008   Q4 2007   % Change
     
Residential
    406,985       331,421       23 %
Commercial
    120,611       95,147       27 %
Industrial
    3,488       3,366       4 %
     
 
    531,084       429,934       24 %
 
                       
End User Transportation*
    39,166       38,205       3 %
     
TOTAL REVENUES
    570,250       468,139       22 %
     
* Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    Q4 2008   Q4 2007   % Change
     
Actuals
    0       54       -100 %
Normal
    6       6          
             
 
                       
Deviation from normal
    -100 %     800 %        
Heating Degree Days
MichCon service territory
                         
    Q4 2008   Q4 2007   % Change
     
Actuals
    2,466       2,149       15 %
Normal
    2,350       2,355          
             
 
                       
Deviation from normal
    5 %     -9 %        
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
                     
    Q4 2008   Q4 2007    
         
Detroit Edison
    1       3     Colder than normal weather increased Detroit Edison's earnings by $1M Q4 2008
MichCon
    3       (5 )   Colder than normal weather increased MichCon's earnings by $3M Q4 2008

 


 

(DTE ENERGY LOGO)
Sales Analysis — YTD December 31, 2008
Electric Sales — Detroit Edison Service Area (GWh)
                         
    2008   2007   % Change
     
Residential
    15,492       16,147       -4 %
Commercial
    18,921       19,332       -2 %
Industrial
    13,086       13,338       -2 %
Other
    3,217       3,300       -3 %
     
 
    50,716       52,117       -3 %
Choice*
    1,457       2,239       -35 %
     
TOTAL SALES
    52,173       54,356       -4 %
     
* Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    2008   2007   % Change
     
Residential
    1,726,154       1,739,309       -1 %
Commercial
    1,753,228       1,722,637       2 %
Industrial
    893,461       853,446       5 %
Other
    175,761       181,612       -3 %
     
 
    4,548,604       4,497,004       1 %
Choice*
    34,371       45,766       -25 %
     
TOTAL REVENUES
    4,582,975       4,542,770       1 %
     
* Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales — MichCon Service Area (Mcf)
                         
    2008   2007   % Change
     
Residential
    109,684       111,501       -2 %
Commercial
    35,231       32,315       9 %
Industrial
    1,015       1,369       -26 %
     
 
    145,930       145,185       1 %
 
                       
End User Transportation*
    122,224       131,793       -7 %
     
TOTAL SALES
    268,154       276,978       -3 %
     
* Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    2008   2007   % Change
     
Residential
    1,237,581       1,127,063       10 %
Commercial
    389,503       321,452       21 %
Industrial
    11,015       13,127       -16 %
     
 
    1,638,099       1,461,642       12 %
 
                       
End User Transportation*
    104,433       139,742       -25 %
     
TOTAL REVENUES
    1,742,532       1,601,384       9 %
     
* Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    2008   2007   % Change
     
Actuals
    759       944       -20 %
Normal
    736       736          
             
Deviation from normal
    3 %     28 %        
 
                       
Heating Degree Days
                       
MichCon service territory
                       
                         
    2008   2007   % Change
     
Actuals
    6,682       6,257       7 %
Normal
    6,724       6,667          
             
Deviation from normal
    -1 %     -6 %        
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
                     
    2008   2007    
         
Detroit Edison
    2       27     Warmer than normal weather added $2 million to Detroit Edison's earnings in 2008
MichCon
    0       (10 )   Normal weather at MichCon in 2008

 


 

(DTE ENERGY LOGO)
DTE Energy Company
Consolidated Statements of Operations (unaudited)
 
                         
    Q4 2008
    Q4 2008 Reported   Operating   Q4 2008 Operating
(in Millions)   Earnings   Adjustments   Earnings
Operating Revenues
    2,170           11       2,181  
 
                       
Operating Expenses
                       
Fuel, purchased power and gas
    974               974  
Operation and maintenance
    613       (9 )     604  
Depreciation, depletion and amortization
    224               224  
Taxes other than income
    75               75  
Gain on sale of non-utility business
                   
Other asset (gains) and losses, reserves and impairments, net
    (18 )             (18 )
 
                       
 
    1,868       (9 )     1,859  
 
                       
 
                       
Operating Income
    302       20       322  
 
                       
 
                       
Other (Income) and Deductions
                       
Interest expense
    132               132  
Interest income
    (6 )             (6 )
Other income
    (30 )             (30 )
Other expenses
    19               19  
 
                       
 
    115             115  
 
                       
Income Before Income Taxes and Minority Interest
    187       20       207  
 
                       
Income Tax Provision
    57       7       64  
 
                       
Minority Interest
    1               1  
 
                       
 
                       
Income from Continuing Operations
    129       13       142  
 
                       
Discontinued Operations
                       
Income (loss) from discontinued operations, net of tax
                   
Minority interest in discontinued operations
                   
 
                       
 
                   
 
                       
Net Income
    129       13       142  
 
                       

 


 

(DTE ENERGY LOGO)
DTE Energy Company
Consolidated Statements of Operations (unaudited)
 
                         
    December 31, 2008
    2008 Reported   Operating   2008 Operating
(in Millions)   Earnings   Adjustments   Earnings
Operating Revenues
    9,329       21       9,350  
 
                       
Operating Expenses
                       
Fuel, purchased power and gas
    4,306               4,306  
Operation and maintenance
    2,694       (18 )     2,676  
Depreciation, depletion and amortization
    901               901  
Taxes other than income
    304               304  
Gain on sale of non-utility business
    (128 )     126       (2 )
Other asset (gains) and losses, reserves and impairments, net
    (11 )             (11 )
 
                       
 
    8,066       108       8,174  
 
                       
 
                       
Operating Income
    1,263       (87 )     1,176  
 
                       
Other (Income) and Deductions
                       
Interest expense
    503               503  
Interest income
    (19 )             (19 )
Other income
    (104 )             (104 )
Other expenses
    64               64  
 
                       
 
    444             444  
 
                       
Income Before Income Taxes and Minority Interest
    819       (87 )     732  
 
                       
Income Tax Provision
    288       (32 )     256  
 
                       
Minority Interest
    5               5  
 
                       
 
                       
Income from Continuing Operations
    526       (55 )     471  
 
                       
Discontinued Operations
                       
Income (loss) from discontinued operations, net of tax
    22       (20 )     2  
Minority interest in discontinued operations
    2               2  
 
                       
 
    20       (20 )      
 
                       
Net Income
    546       (75 )     471