EXHIBIT 99.2
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DTE Energy Company
Consolidated Statements of Financial Position
December 31 | |||||||
2012 | 2011 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 65 | $ | 68 | |||
Restricted cash, principally Securitization | 122 | 147 | |||||
Accounts receivable (less allowance for doubtful accounts of $62 and $162, respectively) | |||||||
Customer | 1,336 | 1,317 | |||||
Other | 126 | 90 | |||||
Inventories | |||||||
Fuel and gas | 527 | 572 | |||||
Materials and supplies | 234 | 219 | |||||
Deferred income taxes | 21 | 51 | |||||
Derivative assets | 108 | 222 | |||||
Regulatory assets | 182 | 314 | |||||
Other | 194 | 196 | |||||
2,915 | 3,196 | ||||||
Investments | |||||||
Nuclear decommissioning trust funds | 1,037 | 937 | |||||
Other | 554 | 525 | |||||
1,591 | 1,462 | ||||||
Property | |||||||
Property, plant and equipment | 23,631 | 22,541 | |||||
Less accumulated depreciation, depletion and amortization | (8,947 | ) | (8,795 | ) | |||
14,684 | 13,746 | ||||||
Other Assets | |||||||
Goodwill | 2,018 | 2,020 | |||||
Regulatory assets | 4,235 | 4,539 | |||||
Securitized regulatory assets | 413 | 577 | |||||
Intangible assets | 135 | 73 | |||||
Notes receivable | 112 | 123 | |||||
Derivative assets | 39 | 74 | |||||
Other | 197 | 199 | |||||
7,149 | 7,605 | ||||||
Total Assets | $ | 26,339 | $ | 26,009 |
DTE Energy Company
Consolidated Statements of Financial Position — (Continued)
December 31 | |||||||
2012 | 2011 | ||||||
(In millions, except shares) | |||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 848 | $ | 782 | |||
Accrued interest | 93 | 95 | |||||
Dividends payable | 107 | 99 | |||||
Short-term borrowings | 240 | 419 | |||||
Current portion long-term debt, including capital leases | 817 | 526 | |||||
Derivative liabilities | 125 | 158 | |||||
Other | 538 | 549 | |||||
2,768 | 2,628 | ||||||
Long-Term Debt (net of current portion) | |||||||
Mortgage bonds, notes and other | 6,220 | 6,405 | |||||
Securitization bonds | 302 | 479 | |||||
Junior subordinated debentures | 480 | 280 | |||||
Capital lease obligations | 12 | 23 | |||||
7,014 | 7,187 | ||||||
Other Liabilities | |||||||
Deferred income taxes | 3,191 | 3,116 | |||||
Regulatory liabilities | 1,031 | 1,019 | |||||
Asset retirement obligations | 1,719 | 1,591 | |||||
Unamortized investment tax credit | 56 | 65 | |||||
Derivative liabilities | 26 | 89 | |||||
Accrued pension liability | 1,498 | 1,298 | |||||
Accrued postretirement liability | 1,160 | 1,484 | |||||
Nuclear decommissioning | 159 | 148 | |||||
Other | 306 | 331 | |||||
9,146 | 9,141 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, without par value, 400,000,000 shares authorized, 172,351,680 and 169,247,282 shares issued and outstanding, respectively | 3,587 | 3,417 | |||||
Retained earnings | 3,944 | 3,750 | |||||
Accumulated other comprehensive loss | (158 | ) | (158 | ) | |||
Total DTE Energy Company Equity | 7,373 | 7,009 | |||||
Noncontrolling interests | 38 | 44 | |||||
Total Equity | 7,411 | 7,053 | |||||
Total Liabilities and Equity | $ | 26,339 | $ | 26,009 |
DTE Energy Company
Consolidated Statements of Cash Flows
Year Ended December 31 | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In millions) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 618 | $ | 720 | $ | 639 | |||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Depreciation, depletion and amortization | 1,018 | 995 | 1,027 | ||||||||
Deferred income taxes | 47 | 220 | 457 | ||||||||
Loss on sale of non-utility business | 83 | — | — | ||||||||
Asset (gains) and losses, reserves and impairments, net | 1 | (21 | ) | (5 | ) | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | 442 | 94 | (293 | ) | |||||||
Net cash from operating activities | 2,209 | 2,008 | 1,825 | ||||||||
Investing Activities | |||||||||||
Plant and equipment expenditures — utility | (1,451 | ) | (1,382 | ) | (1,011 | ) | |||||
Plant and equipment expenditures — non-utility | (369 | ) | (102 | ) | (88 | ) | |||||
Proceeds from sale of non-utility business | 255 | — | — | ||||||||
Proceeds from sale of assets | 38 | 18 | 56 | ||||||||
Restricted cash for debt redemption, principally Securitization | 2 | (5 | ) | (32 | ) | ||||||
Acquisition, net of cash acquired | (198 | ) | — | — | |||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 97 | 80 | 377 | ||||||||
Investment in nuclear decommissioning trust funds | (102 | ) | (97 | ) | (410 | ) | |||||
Consolidation of VIEs | — | — | 19 | ||||||||
Investment in Millennium Pipeline Project | — | (3 | ) | (49 | ) | ||||||
Other | (41 | ) | (69 | ) | (88 | ) | |||||
Net cash used for investing activities | (1,769 | ) | (1,560 | ) | (1,226 | ) | |||||
Financing Activities | |||||||||||
Issuance of long-term debt | 759 | 1,179 | 614 | ||||||||
Redemption of long-term debt | (639 | ) | (1,455 | ) | (663 | ) | |||||
Short-term borrowings, net | (179 | ) | 269 | (177 | ) | ||||||
Issuance of common stock | 39 | — | 36 | ||||||||
Repurchase of common stock | — | (18 | ) | — | |||||||
Dividends on common stock | (407 | ) | (389 | ) | (360 | ) | |||||
Other | (16 | ) | (31 | ) | (36 | ) | |||||
Net cash used for financing activities | (443 | ) | (445 | ) | (586 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | (3 | ) | 3 | 13 | |||||||
Cash and Cash Equivalents at Beginning of Period | 68 | 65 | 52 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 65 | $ | 68 | $ | 65 |
DTE Electric Company
Consolidated Statements of Operations
Year Ended December 31 | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In millions) | |||||||||||
Operating Revenues | $ | 5,291 | $ | 5,152 | $ | 4,993 | |||||
Operating Expenses | |||||||||||
Fuel and purchased power | 1,758 | 1,716 | 1,580 | ||||||||
Operation and maintenance | 1,429 | 1,369 | 1,305 | ||||||||
Depreciation and amortization | 822 | 813 | 849 | ||||||||
Taxes other than income | 256 | 240 | 237 | ||||||||
Asset (gains) losses and reserves, net | (2 | ) | 12 | (6 | ) | ||||||
4,263 | 4,150 | 3,965 | |||||||||
Operating Income | 1,028 | 1,002 | 1,028 | ||||||||
Other (Income) and Deductions | |||||||||||
Interest expense | 272 | 289 | 313 | ||||||||
Interest income | (1 | ) | — | (1 | ) | ||||||
Other income | (53 | ) | (47 | ) | (39 | ) | |||||
Other expenses | 42 | 56 | 44 | ||||||||
260 | 298 | 317 | |||||||||
Income Before Income Taxes | 768 | 704 | 711 | ||||||||
Income Tax Expense | 282 | 267 | 270 | ||||||||
Net Income | $ | 486 | $ | 437 | $ | 441 |
DTE Gas Company
Consolidated Statements of Operations
Year Ended December 31 | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In millions) | |||||||||||
Operating Revenues | $ | 1,293 | $ | 1,483 | $ | 1,628 | |||||
Operating Expenses | |||||||||||
Cost of gas | 536 | 729 | 855 | ||||||||
Operation and maintenance | 380 | 390 | 373 | ||||||||
Depreciation and amortization | 92 | 89 | 92 | ||||||||
Taxes other than income | 53 | 53 | 54 | ||||||||
1,061 | 1,261 | 1,374 | |||||||||
Operating Income | 232 | 222 | 254 | ||||||||
Other (Income) and Deductions | |||||||||||
Interest expense | 59 | 63 | 66 | ||||||||
Interest income | (7 | ) | (7 | ) | (9 | ) | |||||
Other income | (9 | ) | (7 | ) | (6 | ) | |||||
Other expenses | 25 | 5 | 5 | ||||||||
68 | 54 | 56 | |||||||||
Income Before Income Taxes | 164 | 168 | 198 | ||||||||
Income Tax Expense | 50 | 59 | 68 | ||||||||
Net Income | $ | 114 | $ | 109 | $ | 130 |
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DTE Energy Debt/Equity Calculation
As of December 31, 2012
($ millions)
Short-term borrowings | $ | 240 | |
Current portion of long-term debt, including capital leases | 817 | ||
Mortgage bonds, notes and other | 6,220 | ||
Securitization bonds, excluding current portion | 302 | ||
Capital lease obligations | 12 | ||
Other adjustments | 146 | ||
less Securitization bonds, including current portion | (479 | ) | |
50% Junior Subordinated Debentures | 240 | ||
Total debt | 7,498 | ||
50% Junior Subordinated Debentures | 240 | ||
Total preferred/ other | 240 | ||
Equity | 7,373 | ||
Total capitalization | $ | 15,111 | |
Debt | 49.6 | % | |
Junior Subordinated Debentures | 1.6 | % | |
Common shareholders' equity | 48.8 | % | |
Total | 100 | % |
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Sales Analysis - Q4 2012 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
Q4 2012 | Q4 2011 | % Change | Q4 2012 | Q4 2011 | % Change | |||||||||||||||
Residential | 3,486 | 3,549 | (2 | )% | Residential | $ | 530,776 | $ | 503,087 | 6 | % | |||||||||
Commercial | 4,099 | 4,029 | 2 | % | Commercial | 461,966 | 420,851 | 10 | % | |||||||||||
Industrial | 2,344 | 2,386 | (2 | )% | Industrial | 187,118 | 171,790 | 9 | % | |||||||||||
Other (a) | 241 | 263 | (8 | )% | Other (b) | 26,153 | 51,516 | (49 | )% | |||||||||||
10,170 | 10,227 | (1 | )% | $ | 1,206,013 | $ | 1,147,244 | 5 | % | |||||||||||
Choice | 1,258 | 1,341 | (6 | )% | Choice | 23,829 | 23,811 | — | % | |||||||||||
TOTAL SALES | 11,428 | 11,568 | (1 | )% | TOTAL | $ | 1,229,842 | $ | 1,171,055 | 5 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
(a) 2011 excludes 530 GWh related to a wholesale contract terminated Dec 2011 | (b) 2011 includes $23,588k related to a wholesale contract terminated Dec 2011 |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
Q4 2012 | Q4 2011 | % Change | Q4 2012 | Q4 2011 | % Change | |||||||||||||||
Residential | 28,985 | 27,022 | 7 | % | Residential | $ | 252,950 | $ | 241,667 | 5 | % | |||||||||
Commercial | 6,188 | 5,999 | 3 | % | Commercial | 52,771 | 51,817 | 2 | % | |||||||||||
Industrial | 166 | 198 | (16 | )% | Industrial | 1,290 | 1,548 | (17 | )% | |||||||||||
35,339 | 33,219 | 6 | % | $ | 307,011 | $ | 295,032 | 4 | % | |||||||||||
End User Transportation* | 41,829 | 36,446 | 15 | % | End User Transportation* | 60,805 | 52,343 | 16 | % | |||||||||||
TOTAL SALES | 77,168 | 69,665 | 11 | % | TOTAL | $ | 367,816 | $ | 347,375 | 6 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||
Q4 2012 | Q4 2011 | % Change | Q4 2012 | Q4 2011 | % Change | |||||||
Actuals | — | — | —% | Actuals | 2,088 | 1,905 | 10% | |||||
Normal | — | — | —% | Normal | 2,208 | 2,255 | (2)% | |||||
Deviation from normal | —% | —% | Deviation from normal | (5)% | (16)% | |||||||
Earnings Impact of Weather | |||||||
Variance from normal weather (millions, after-tax) | |||||||
Q4 2012 | Q4 2011 | ||||||
DTE Electric* | $ | (5 | ) | $ | — | ||
DTE Gas | (3 | ) | (12 | ) | |||
________________ | |||||||
* Pre Nov 2011, DTE Electric Company's earnings not significantly affected by weather due to the RDM mechanism. RDM was discontinued starting in Nov 2011. |
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Sales Analysis - YTD December 31, 2012 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||||
Residential | 15,666 | 15,907 | (2 | )% | Residential | $ | 2,354,092 | $ | 2,182,292 | 8 | % | |||||||||
Commercial | 16,832 | 16,778 | 0 | % | Commercial | 1,897,868 | 1,704,282 | 11 | % | |||||||||||
Industrial | 9,989 | 9,739 | 3 | % | Industrial | 783,668 | 692,424 | 13 | % | |||||||||||
Other (a) | 958 | 1,034 | (7 | )% | Other (b) | 105,863 | 199,715 | (47 | )% | |||||||||||
43,445 | 43,458 | 0 | % | $ | 5,141,491 | $ | 4,778,713 | 8 | % | |||||||||||
Choice | 5,197 | 5,445 | (5 | )% | Choice | 92,138 | 101,482 | (9 | )% | |||||||||||
TOTAL SALES | 48,642 | 48,903 | (1 | )% | TOTAL | $ | 5,233,629 | $ | 4,880,195 | 7 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
(a) 2011 excludes 2,102 GWh related to a wholesale contract terminated Dec 2011 | (b) 2011 includes $93,099k related to a wholesale contract terminated Dec 2011 |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||||
Residential | 82,990 | 95,935 | (13 | )% | Residential | $ | 769,446 | $ | 919,359 | (16 | )% | |||||||||
Commercial | 18,484 | 23,203 | (20 | )% | Commercial | 163,512 | 214,079 | (24 | )% | |||||||||||
Industrial | 885 | 812 | 9 | % | Industrial | 6,966 | 6,653 | 5 | % | |||||||||||
102,359 | 119,950 | (15 | )% | $ | 939,924 | $ | 1,140,091 | (18 | )% | |||||||||||
End User Transportation* | 156,637 | 141,233 | 11 | % | End User Transportation* | 207,301 | 207,090 | — | % | |||||||||||
TOTAL SALES | 258,996 | 261,183 | (1 | )% | TOTAL | $ | 1,147,225 | $ | 1,347,181 | (15 | )% | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||
Actuals | 1,123 | 1,039 | 8% | Actuals | 5,410 | 6,321 | (14)% | |||||
Normal | 736 | 736 | —% | Normal | 6,339 | 6,399 | (1)% | |||||
Deviation from normal | 53% | 41% | Deviation from normal | (15)% | (1)% | |||||||
Earnings Impact of Weather | |||||||
Variance from normal weather (millions, after-tax) | |||||||
YTD 2012 | YTD 2011 | ||||||
DTE Electric* | $ | 45 | $ | — | |||
DTE Gas | (28 | ) | (1 | ) | |||
________________ | |||||||
* Pre Nov 2011, DTE Electric Company's earnings not significantly affected by weather due to the RDM mechanism. RDM was discontinued starting in Nov 2011. |
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DTE Electric Temperature Normal Sales Analysis - YTD December 31, 2012 | ||||||||||||||||||
Temperature Normal Electric Sales - DTE Electric Service Area (GWh) | Temperature Normal Electric Sales - DTE Electric Service Area (Includes Electric Choice) (GWh) | |||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||
Residential | 15,061 | 15,213 | (1 | )% | Residential | 15,062 | 15,213 | (1 | )% | |||||||||
Commercial | 16,428 | 16,461 | 0 | % | Commercial | 19,573 | 19,799 | (1 | )% | |||||||||
Industrial | 9,946 | 9,706 | 2 | % | Industrial | 11,909 | 11,745 | 1 | % | |||||||||
Other (a) | 958 | 1,034 | (7 | )% | Other (a) | 958 | 1,034 | (7 | )% | |||||||||
42,393 | 42,414 | 0 | % | 47,502 | 47,791 | (1 | )% | |||||||||||
Choice | 5,109 | 5,377 | (5 | )% | ||||||||||||||
TOTAL SALES | 47,502 | 47,791 | (1 | )% | ||||||||||||||
________________ | ||||||||||||||||||
(a) 2011 excludes 2,102 GWh related to a wholesale contract terminated Dec 2011 |