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): May 2, 2007

	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	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
1-7310	Michigan Consolidated Gas Company	38-0478040
	(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

Earnings Release dated May 2, 2007

Financial Information Distributed for Media and Investor Relations Communications dated May 2, 2007

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 May 2, 2007, announcing financial results for the quarter ended March 31, 2007. 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, under Item 2.02, 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.

(d) Exhibits

99.1	Earnings Release of DTE Energy Company dated May 2, 2007.
99.2	Financial Information Distributed for Media and Investor Relations Communications dated May 2, 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 each of DTE Energy’s, The Detroit Edison Company’s (“Detroit Edison”) and Michigan Consolidated Gas Company’s (“MichCon”) 2006 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: May 2, 2007

DTE ENERGY COMPANY
(Registrant)
 

/s/Peter B. Oleksiak  

Peter B. Oleksiak  

Vice President and Controller 

THE DETROIT EDISON COMPANY
(Registrant)
 

/s/Peter B. Oleksiak  

Peter B. Oleksiak  

Vice President and Controller 

MICHIGAN CONSOLIDATED GAS COMPANY
(Registrant)
 

/s/Peter B. Oleksiak  

Peter B. Oleksiak  

Vice President and Controller 

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Earnings Release of DTE Energy Company dated May 2, 2007.
99.2	Financial Information Distributed for Media and Investor Relations Communications dated May 2, 2007.

EX-99.1

Exhibit 99.1

May 2, 2007

DTE Energy announces first quarter 2007 earnings;
maintains 2007 earnings guidance

     DETROIT — DTE Energy (NYSE:DTE) today reported first quarter 2007 earnings of $134 million, or $0.76 per diluted share, compared with reported earnings of $136 million, or $0.76 per diluted share in the first quarter of 2006. Reported earnings declined primarily due to the impact of the temporary Detroit Edison rate reduction agreed to in August 2006 and the absence of mark-to-market gains at Energy Trading.

     Operating earnings for the first quarter 2007 were $149 million, or $0.85 per diluted share, compared with first quarter 2006 operating earnings of $171 million, or $0.96 per diluted share. Operating earnings exclude non-recurring items, certain timing-related items and discontinued operations. The primary drivers of the decline over the prior year were the temporary Detroit Edison rate reduction agreed to in August 2006 as part of the settlement of the show cause proceeding and increased costs due to a January 2007 ice storm. Reconciliations of reported to operating earnings are at the end of this news release.

     DTE Energy also reported cash flow from operations of approximately $632 million in the first quarter of 2007. Including synfuel production payments, adjusted cash from operations was $737 million, an 8 percent increase from the first quarter of 2006.

     “I am very pleased with our progress in building a foundation for strong, long-term earnings growth,” said Anthony F. Earley Jr., DTE Energy chairman and CEO. “The hard work of our utility employees on our comprehensive cost-reduction program enabled us to more than offset inflationary cost pressures in Detroit Edison’s recent rate filing. We have also started work on preparing a license application for a new nuclear plant at our existing Fermi site. This is the first step to providing additional clean, reliable and affordable energy for Michigan for decades to come. I am optimistic that the Michigan Legislature will take the necessary steps to repeal the state’s hybrid regulatory structure, which would enable us and others to build the plants necessary to power Michigan’s future.

     “Our non-utility restructuring plan is also proceeding very well,” said Gerard M. Anderson, DTE Energy president and chief operating officer. “We have created substantial value in our non-utility businesses, and we are pursuing the opportunity to return a significant portion of this value to our shareholders. Based upon the strong investor interest to date, I am confident that the previously disclosed $800 million of expected after-tax proceeds from the sale of a portion of our non-utility businesses is very conservative, and we remain committed to quickly applying the proceeds to buying back stock and reducing debt. We repurchased approximately 1 million shares of stock under this plan in the first quarter of 2007 in addition to the 1 million shares bought back in December 2006, and may continue to make opportunistic repurchases of stock as we work to close deals.”

First quarter 2007 operating earnings results, by segment:

     Electric Utility: Operating earnings for Detroit Edison were $0.27 per diluted share versus $0.37 in the first quarter of 2006. The key drivers of the variance were the temporary rate

reduction agreed to in August 2006 as part of the settlement of the show cause proceeding and increased storm costs, partially offset by more customers on full utility service compared with 2006.

     Gas Utility: MichCon had operating earnings of $0.36 per diluted share versus $0.26 in the first quarter of 2006. Driving the improvement was colder weather compared with 2006 and higher utility gas storage revenues.

     Coal and Gas Midstream: Operating earnings in this segment, which includes non-utility gas pipelines and storage as well as coal transportation and marketing, were $0.07 per diluted share, equal to earnings in the first quarter of 2006.

     Unconventional Gas Production: Operating earnings from Antrim and Barnett Shale operations were $0.01 per diluted share, up from breakeven results in the first quarter of 2006. Driving the improvement was increased production from the company’s Barnett Shale wells.

     Power and Industrial Projects: Improvements at the company’s industrial projects, biomass projects and peakers resulted in operating earnings of $0.02 per diluted share, a significant increase compared with a loss of $0.06 in the first quarter of 2006.

     Energy Trading: Energy Trading had operating earnings of $0.01 per diluted share versus $0.16 per diluted share in the first quarter of 2006. The year ago quarter included a $0.19 per diluted share flowback of timing-related losses from 2005, and the absence of this flowback was the primary driver of the quarter-over-quarter variance.

     Synthetic Fuels: Operating earnings from the synthetic fuel segment were $0.21 per diluted share compared with $0.24 per diluted share in the first quarter of 2006. Increased earnings from 8 percent higher production in the current quarter was offset by the absence of mark-to-market gains on the company’s oil hedges booked in the first quarter of 2006.

     Corporate and Other: The Corporate and Other segment had operating losses of $0.10 per diluted share compared with losses of $0.08 in the first quarter of 2006. Driving performance was higher interest expense.

Outlook for 2007

     DTE Energy reiterated its 2007 operating earnings guidance excluding synthetic fuel of $2.60 to $2.80 per diluted share. Synthetic fuel is expected to add operating earnings of $0.60 to $1.25 per diluted share in 2007.

     “In 2007 we expect to continue to earn our authorized returns at Detroit Edison and MichCon,” said David E. Meador, DTE Energy executive vice president and chief financial officer. “As we complete portions of our non-utility restructuring, we are committed to providing updates on our non-utility earnings outlook and our stock and debt buyback progress.”

Conference call and webcast information

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

     DTE Energy plans to conduct a conference call with the investment community hosted by Meador at 8:30 a.m. EDT Thursday, May 3, to discuss earnings results and provide a general business update. Investors, the news media and the public may listen to a live internet broadcast of the meeting at www.dteenergy.com/investors. The telephone dial-in numbers are (866) 564-7439 or (719) 785-9449. There is no passcode. The internet broadcast will be archived on the

company’s website. An audio replay of the call will be available from 1 p.m. May 3 to May 16. To access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode 5034767.

     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.

     Use of Adjusted Cash From Operations — DTE Energy management believes that adjusted cash from operations provide a more meaningful representation of the company’s cash from ongoing operations and uses adjusted cash from operations as a primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses adjusted cash from operations to measure performance against budget and to report to the Board of Directors.

     In this release, DTE Energy discusses 2007 operating earnings guidance. It is likely that certain items that impact the company’s 2007 reported results will be excluded from operating results. A reconciliation to the comparable 2007 reported earnings guidance is not provided because it is not possible to provide a reliable forecast of specific line items. These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.

     DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non-utility, energy businesses focused on gas pipelines and storage, coal transportation, unconventional gas production and power and industrial projects. Information about DTE Energy is available at dteenergy.com.

     The information contained herein 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 news 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 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: the higher price of oil and its impact on the value of production tax credits, or the potential requirement to refund proceeds received from synfuel partners; the uncertainties of successful exploration of gas shale resources and inability to estimate gas reserves with certainty; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; economic climate and population growth or decline in the geographic areas where we do business; environmental issues, laws, regulations, and the cost of remediation and compliance; nuclear regulations and operations associated with nuclear facilities; 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 and availability of coal and other raw materials, purchased power and natural gas; effects of competition; impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures; contributions to earnings by non-utility subsidiaries; changes in and application of 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 and application of 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; uncollectible accounts receivable; binding arbitration, litigation and related appeals; 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; and the timing, terms and proceeds from any asset sale or monetization. This news release should also be read in conjunction with the “Forward-Looking Statements” section in DTE Energy’s 2006 Form 10-K (which section is incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy.

# # #

     For further information, members of the media may contact:

Scott Simons	Lorie N. Kessler
(313) 235-8808	(313) 235-8807
Analysts — for further information:
Dan Miner	Lisa Muschong
(313) 235-5525	(313) 235-8505

DTE Energy Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended
	March 31
(in Millions, Except per Share Amounts)	2007			2006
Operating Revenues	$	2,730		$	2,635
Operating Expenses
Fuel, purchased power and gas		1,135			1,060
Operation and maintenance		1,058			1,021
Depreciation, depletion and amortization		225			225
Taxes other than income		94			92
Asset (gains) and losses, reserves and impairments, net		(26	)		(5	)
		2,486			2,393
Operating Income		244			242
Other (Income) and Deductions
Interest expense		137			133
Interest income		(10	)		(12	)
Other income		(18	)		(12	)
Other expenses		9			10
		118			119
Income Before Income Taxes and Minority Interest		126			123
Income Tax Provision		50			58
Minority Interest (1)		(58	)		(71	)
Income from Continuing Operations		134			136
Loss from Discontinued Operations, net of tax		—			(1	)
Cumulative Effect of Accounting Change, net of tax		—			1
Net Income	$	134		$	136
Basic Earnings per Common Share
Income from continuing operations	$	.76		$	.76
Discontinued operations		—			—
Cumulative effect of accounting change		—			.01
Total	$	.76		$	.77
Diluted Earnings per Common Share
Income from continuing operations	$	.76		$	.76
Discontinued operations		—			—
Cumulative effect of accounting change		—			—
Total	$	.76		$	.76
Average Common Shares
Basic		176			177
Diluted		177			178
Dividends Declared per Common Share	$	.53		$	.515

(1) Primarily represents our partners’ share of synfuel project losses.

DTE Energy Company
Segment Net Income (Unaudited)

	Three Months Ended March 31
	2007									2006
	Reported						Operating			Reported					Operating
(in Millions)	Earnings			Adjustments			Earnings			Earnings			Adjustments		Earnings
Electric Utility	$	40		$	2A		$	48		$	59		$	8C	$	67
					6B
Gas Utility		67			1C			62			50			2C		48
					(6)A									(4)A
Non-utility Operations
Coal & Gas Midstream		12			—			12			13			—		13
Unconventional Gas Production		2			—			2			1			—		1
Power and Industrial Projects		4			—			4			(23	)		1C		(11	)
														11G
Energy Trading		1			—			1			28			—		28
Synthetic Fuel		38			(1) D			37			21			(6)E		41
														26F
Total Non-utility Operations		57			(1	)		56			40			32		72
Corporate & Other		(30	)		13A			(17	)		(13	)		(3)A		(16	)
Income from Continuing Operations		134			15			149			136			35		171
Discontinued Operations		—			—			—			(1	)		1H		—
Cumulative Effect of Accounting Change		—			—			—			1			(1)I		—
Net Income	$	134		$	15		$	149		$	136		$	35	$	171

Adjustments key

A) Effective tax rate normalization	Quarterly adjustment to normalize effective tax rate. Annual results not impacted.
B) Detroit Thermal	Increase in loss reserves
C) Performance Excellence Process	Costs to achieve savings from Performance Excellence Process
D) 2007 oil hedges	Mark to market pertaining to 2005/2006
E) 2007 oil price option	Mark to market on 2007 synfuel oil hedges
F) 2006 oil price option rollback	Mark to market on 2006 synfuel oil hedges recognized in 2005
G) Impairment charge	Impairment charge PepTec operations
H) Impairment charge	Impairment charge and operating results relating to the discontinuance of Dtech operations
I) Cumulative effect of accounting change	Cumulative effect of a change in accounting principle from adoption of FASB No. 123-R

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

	Three Months Ended March 31
	2007								2006
	Reported					Operating			Reported					Operating
(in Millions)	Earnings			Adjustments		Earnings			Earnings			Adjustments		Earnings
Electric Utility	$	0.23		$	0.01A	$	0.27		$	0.33		$	0.04C	$	0.37
					0.03B
Gas Utility		0.38			0.01C		0.36			0.28			0.01C		0.26
					(0.03)A								(0.03)A
Non-utility Operations
Coal & Gas Midstream		0.07			—		0.07			0.07			—		0.07
Unconventional Gas Production		0.01			—		0.01			—			—		—
Power and Industrial Projects		0.02			—		0.02			(0.13	)		0.01C		(0.06	)
													0.06F
Energy Trading		0.01			—		0.01			0.16			—		0.16
Synthetic Fuel		0.21			—		0.21			0.12			(0.03)D		0.24
													0.15E
Total Non-utility Operations		0.32			—		0.32			0.22			0.19		0.41
Corporate & Other		(0.17	)		0.07A		(0.10	)		(0.07	)		(0.01)A		(0.08	)
Income from Continuing Operations		0.76			0.09		0.85			0.76			0.20		0.96
Discontinued Operations		—			—		—			—			—		—
Cumulative Effect of Accounting Change		—			—		—			—			—		—
Net Income	$	0.76		$	0.09	$	0.85		$	0.76		$	0.20	$	0.96

Adjustments key

A) Effective tax rate normalization	Quarterly adjustment to normalize effective tax rate. Annual results not impacted
B) Detroit Thermal	Increase in loss reserves
C) Performance Excellence Process	Costs to achieve savings from Performance Excellence Process
D) 2007 oil price option	Mark to market on 2007 synfuel oil hedges
E) 2006 oil price option rollback	Mark to market on 2006 synfuel oil hedges recognized in 2005
F) Impairment charge	Impairment charge PepTec operations

DTE Energy Company
Reconciliation of Cash from Operations to Adjusted Cash from Operations

(in Millions)	First Quarter 2007		First Quarter 2006
Cash from Operations	$	632	$	613
Synfuel Production Payment*		105		72
Adjusted Cash from Operations	$	737	$	685

* accounted for in the investing activities section of the statement of cash flows

EX-99.2

Exhibit 99.2

First Quarter 2007 Supplemental Financial Information May 2, 2007

DTE Energy Company
Consolidated Statement of Financial Position

	(Unaudited)
	March 31			December 31
	2007			2006
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents	$	144		$	147
Restricted cash		90			146
Accounts receivable (less allowance for doubtful accounts of $178 and $170, respectively
Customer		1,517			1,427
Collateral held by others		65			68
Other		255			442
Accrued power and gas supply cost recovery revenue		92			117
Inventories
Fuel and gas		410			562
Materials and supplies		159			153
Deferred income taxes		236			245
Assets from risk management and trading activities		395			461
Other		177			193
		3,540			3,961
Investments
Nuclear decommissioning trust funds		759			740
Other		503			505
		1,262			1,245
Property
Property, plant and equipment		19,490			19,224
Less accumulated depreciation and depletion		(7,869	)		(7,773	)
		11,621			11,451
Other Assets
Goodwill		2,057			2,057
Regulatory assets		3,194			3,226
Securitized regulatory assets		1,208			1,235
Intangible assets		89			72
Notes receivable		143			164
Assets from risk management and trading activities		119			164
Prepaid pension assets		72			71
Other		131			139
		7,013			7,128
Total Assets	$	23,436		$	23,785

The Consolidated Statement of Financial Position (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10K and 10Q.

DTE Energy Company
Consolidated Statement of Financial Position

	(Unaudited)
	March 31			December 31
	2007			2006
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	1,051		$	1,145
Accrued interest		97			115
Dividends payable		94			94
Short-term borrowings		946			1,131
Gas inventory equalization		278			—
Current portion of long-term debt, including capital leases		372			354
Liabilities from risk management and trading activities		392			437
Other		757			888
		3,987			4,164
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,885			5,918
Securitization bonds		1,124			1,185
Trust preferred-linked securities		289			289
Capital lease obligations		80			82
		7,378			7,474
Other Liabilities
Deferred income taxes		1,450			1,465
Regulatory liabilities		784			765
Asset retirement obligations		1,239			1,221
Unamortized investment tax credit		117			120
Liabilities from risk management and trading activities		200			259
Liabilities from transportation and storage contracts		142			157
Accrued pension liability		388			388
Accrued postretirement liability		1,420			1,414
Deferred gains from asset sales		18			36
Nuclear decommissioning		122			119
Other		331			312
		6,211			6,256
Commitments and Contingencies
Minority Interest		44			42
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized, 176,064,812 and 177,138,060 shares issued and outstanding, respectively		3,440			3,467
Retained earnings (less FIN 48 cumulative effect adjustment of $5 in 2007)		2,602			2,593
Accumulated other comprehensive loss		(226	)		(211	)
		5,816			5,849
Total Liabilities and Shareholders’ Equity	$	23,436		$	23,785

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)

	Three Months Ended
	March 31
(in Millions)	2007			2006
Operating Activities
Net Income	$	134		$	136
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		225			225
Deferred income taxes		(6	)		64
Gain on sale of interests in synfuel projects		(52	)		(21	)
Impairment of synfuel projects		16			—
Loss on sale of assets, net		11			—
Partners’ share of synfuel project losses		(59	)		(71	)
Contributions from synfuel partners		36			70
Cumulative effect of accounting changes		—			(1	)
Change in assets and liabilities, exclusive of changes shown separately		327			211
Net cash from operating activities		632			613
Investing Activities
Plant and equipment expenditures – utility		(306	)		(264	)
Plant and equipment expenditures – non-utility		(69	)		(71	)
Acquisitions, net of cash acquired		—			(23	)
Proceeds from sale of interests in synfuel projects		113			72
Refunds to synfuel partners		(8	)		—
Proceeds from sale of assets, net		5			29
Restricted cash for debt redemptions		57			23
Proceeds from sale of nuclear decommissioning trust fund assets		57			37
Investment in nuclear decommissioning trust funds		(66	)		(47	)
Other investments		(7	)		(16	)
Net cash used for investing activities		(224	)		(260	)
Financing Activities
Redemption of long-term debt		(77	)		(70	)
Short-term borrowings, net		(185	)		(193	)
Repurchase of common stock		(55	)		(8	)
Dividends on common stock		(94	)		(91	)
Other		—			(4	)
Net cash used for financing activities		(411	)		(366	)
Net Decrease in Cash and Cash Equivalents		(3	)		(13	)
Cash and Cash Equivalents at Beginning of the Period		147			88
Cash and Cash Equivalents at End of the Period	$	144		$	75

The Consolidated Statement of Cash Flows (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10K and 10Q.

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended
	March 31
(in Millions)	2007			2006
Operating Revenues	$	1,094		$	1,050
Operating Expenses
Fuel and purchased power		354			309
Operation and maintenance		348			344
Depreciation and amortization		182			167
Taxes other than income		72			69
Asset (gains) and losses, net		7			—
		963			889
Operating Income		131			161
Other (Income) and Deductions
Interest expense		74			72
Interest income		(1	)		—
Other income		(11	)		(7	)
Other expenses		9			10
		71			75
Income Before Income Taxes		60			86
Income Tax Provision		20			27
Reported Earnings	$	40		$	59
Adjustments
Effective tax rate normalization		2			—
Detroit Thermal reserve		6			—
Performance Excellence Process		—			8
		8			8
Operating Earnings	$	48		$	67

The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10K and 10Q.

Michigan Consolidated Gas Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended March 31
(in Millions)	2007			2006
Operating Revenues	$	861		$	863
Operating Expenses
Cost of gas		613			624
Operation and maintenance		109			119
Depreciation and amortization		21			23
Taxes other than income		15			15
Asset (gains) and losses, net		2			—
		760			781
Operating Income		101			82
Other (Income) and Deductions
Interest expense		15			17
Interest income		(2	)		(2	)
Other income		(3	)		(2	)
Other expenses		1			1
		11			14
Income Before Income Taxes		90			68
Income Tax Provision		23			18
Reported Earnings	$	67		$	50
Adjustments
Effective tax rate normalization		(6	)		(4	)
Performance Excellence Process		1			2
		(5	)		(2	)
Operating Earnings (Loss)	$	62		$	48

The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10K and 10Q.

DTE Energy Debt/Equity Calculation
As of March 31, 2007
($ millions)

Short-term borrowings	$	946
Current portion of long-term debt, including capital leases		372
Mortgage bonds, notes and other		5,885
Securitization bonds		1,124
Capital lease obligations		80
less MichCon short-term debt		(123	)
less Securitization bonds, including current portion		(1,238	)
Total debt		7,046
Trust preferred-linked securities		289
Total preferred/ other		289
Equity		5,816
Total capitalization	$	13,151
Debt		53.6	%
Preferred		2.2	%
Common shareholders’ equity		44.2	%
Total		100.0	%

Sales Analysis — Q1 2007

Electric Sales — Detroit Edison Service Area (GWh)

	Q1 2007		Q1 2006		% Change
Residential		3,786		3,836		-1	%
Commercial		4,309		4,008		8	%
Industrial		3,374		3,153		7	%
Other		845		782		8	%
		12,314		11,779		5	%
Choice*		518		1,363		-62	%
TOTAL SALES		12,832		13,142		-2	%

* Includes Dearborn Industrial Group sales

Gas Sales — MichCon Service Area (Mcf)

	Q1 2007		Q1 2006		% Change
Residential		52,728,330		48,165,971		9	%
Commercial		15,304,811		16,385,031		-7	%
Industrial		683,318		541,165		26	%
		68,716,459		65,092,167		6	%
End User Transportation*		48,771,743		43,453,449		12	%
TOTAL SALES		117,488,202		108,545,616		8	%

* Includes choice customers

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

	Q1 2007		Q1 2006		% Change
Residential		407,897		385,971		6	%
Commercial		390,519		344,029		14	%
Industrial		217,696		185,072		18	%
Other		43,580		37,902		15	%
		1,059,692		952,974		11	%
Choice*		12,610		30,072		-58	%
TOTAL REVENUES		1,072,302		983,046		9	%

* Distribution charge, includes Dearborn Industrial Group revenues

Gas Revenue — MichCon Service Area ($000s)

	Q1 2007		Q1 2006		% Change
Residential		497,036		607,843		-18	%
Commercial		145,043		206,061		-30	%
Industrial		6,449		6,675		-3	%
		648,528		820,579		-21	%
End User Transportation*		52,005		44,981		16	%
TOTAL REVENUES		700,533		865,560		-19	%

* Includes choice customers

Weather

Cooling Degree Days

Detroit Edison service territory

	Q1 2007		Q1 2006		% Change
Actuals		0		0		n/m
Normal		0		0		n/m
Deviation from normal		n/m		n/m

Heating Degree Days

MichCon service territory

	Q1 2007			Q1 2006			% Change
Actuals		3,217			2,851			13	%
Normal		3,291			3,288
Deviation from normal		-2	%		-13	%