EXHIBIT 99.2
DTE Energy Company
Consolidated Statements of Financial Position
December 31, | |||||||
2013 | 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 52 | $ | 65 | |||
Restricted cash, principally Securitization | 123 | 122 | |||||
Accounts receivable (less allowance for doubtful accounts of $55 and $62, respectively) | |||||||
Customer | 1,542 | 1,336 | |||||
Other | 127 | 126 | |||||
Inventories | |||||||
Fuel and gas | 363 | 527 | |||||
Materials and supplies | 265 | 234 | |||||
Derivative assets | 99 | 108 | |||||
Regulatory assets | 26 | 182 | |||||
Other | 209 | 215 | |||||
2,806 | 2,915 | ||||||
Investments | |||||||
Nuclear decommissioning trust funds | 1,191 | 1,037 | |||||
Other | 603 | 554 | |||||
1,794 | 1,591 | ||||||
Property | |||||||
Property, plant and equipment | 25,123 | 23,631 | |||||
Less accumulated depreciation, depletion and amortization | (9,323 | ) | (8,947 | ) | |||
15,800 | 14,684 | ||||||
Other Assets | |||||||
Goodwill | 2,018 | 2,018 | |||||
Regulatory assets | 2,837 | 4,235 | |||||
Securitized regulatory assets | 231 | 413 | |||||
Intangible assets | 122 | 135 | |||||
Notes receivable | 102 | 112 | |||||
Derivative assets | 27 | 39 | |||||
Other | 198 | 197 | |||||
5,535 | 7,149 | ||||||
Total Assets | $ | 25,935 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Financial Position — (Continued)
December 31, | |||||||
2013 | 2012 | ||||||
(In millions, except shares) | |||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 962 | $ | 848 | |||
Accrued interest | 90 | 93 | |||||
Dividends payable | 116 | 107 | |||||
Short-term borrowings | 131 | 240 | |||||
Current portion long-term debt, including capital leases | 898 | 817 | |||||
Derivative liabilities | 195 | 125 | |||||
Regulatory liabilities | 302 | 89 | |||||
Other | 495 | 449 | |||||
3,189 | 2,768 | ||||||
Long-Term Debt (net of current portion) | |||||||
Mortgage bonds, notes and other | 6,618 | 6,220 | |||||
Securitization bonds | 105 | 302 | |||||
Junior subordinated debentures | 480 | 480 | |||||
Capital lease obligations | 11 | 12 | |||||
7,214 | 7,014 | ||||||
Other Liabilities | |||||||
Deferred income taxes | 3,321 | 3,191 | |||||
Regulatory liabilities | 862 | 1,031 | |||||
Asset retirement obligations | 1,827 | 1,719 | |||||
Unamortized investment tax credit | 47 | 56 | |||||
Derivative liabilities | 43 | 26 | |||||
Accrued pension liability | 653 | 1,498 | |||||
Accrued postretirement liability | 350 | 1,160 | |||||
Nuclear decommissioning | 178 | 159 | |||||
Other | 297 | 306 | |||||
7,578 | 9,146 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, without par value, 400,000,000 shares authorized, 177,087,230 and 172,351,680 shares issued and outstanding, respectively | 3,907 | 3,587 | |||||
Retained earnings | 4,150 | 3,944 | |||||
Accumulated other comprehensive loss | (136 | ) | (158 | ) | |||
Total DTE Energy Company Equity | 7,921 | 7,373 | |||||
Noncontrolling interests | 33 | 38 | |||||
Total Equity | 7,954 | 7,411 | |||||
Total Liabilities and Equity | $ | 25,935 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Cash Flows
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 668 | $ | 618 | $ | 720 | |||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Depreciation, depletion and amortization | 1,094 | 1,018 | 995 | ||||||||
Nuclear fuel amortization | 38 | 29 | 46 | ||||||||
Allowance for equity funds used during construction | (15 | ) | (13 | ) | (6 | ) | |||||
Deferred income taxes | 164 | 47 | 220 | ||||||||
Loss on sale of non-utility business | — | 83 | — | ||||||||
Asset (gains) and losses, reserves and impairments, net | (8 | ) | 1 | (21 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | (154 | ) | 52 | 71 | |||||||
Inventories | 123 | 35 | (129 | ) | |||||||
Accounts payable | 14 | 40 | (23 | ) | |||||||
Derivative assets and liabilities | 107 | 53 | (94 | ) | |||||||
Accrued pension obligation | (644 | ) | 280 | 432 | |||||||
Accrued postretirement obligation | (526 | ) | (323 | ) | 209 | ||||||
Regulatory assets and liabilities | 1,269 | 278 | (662 | ) | |||||||
Other assets | (24 | ) | 55 | 44 | |||||||
Other liabilities | 48 | (44 | ) | 206 | |||||||
Net cash from operating activities | 2,154 | 2,209 | 2,008 | ||||||||
Investing Activities | |||||||||||
Plant and equipment expenditures — utility | (1,534 | ) | (1,451 | ) | (1,382 | ) | |||||
Plant and equipment expenditures — non-utility | (342 | ) | (369 | ) | (102 | ) | |||||
Proceeds from sale of non-utility business | — | 255 | — | ||||||||
Proceeds from sale of assets | 36 | 38 | 18 | ||||||||
Restricted cash for debt redemption, principally Securitization | (1 | ) | 2 | (5 | ) | ||||||
Acquisition, net of cash acquired | — | (198 | ) | — | |||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 1,118 | 759 | 833 | ||||||||
Investment in nuclear decommissioning trust funds | (1,134 | ) | (764 | ) | (850 | ) | |||||
Other | (49 | ) | (41 | ) | (72 | ) | |||||
Net cash used for investing activities | (1,906 | ) | (1,769 | ) | (1,560 | ) | |||||
Financing Activities | |||||||||||
Issuance of long-term debt, net of issuance costs | 1,234 | 759 | 1,179 | ||||||||
Redemption of long-term debt | (961 | ) | (639 | ) | (1,455 | ) | |||||
Short-term borrowings, net | (109 | ) | (179 | ) | 269 | ||||||
Issuance of common stock | 39 | 39 | — | ||||||||
Repurchase of common stock | — | — | (18 | ) | |||||||
Dividends on common stock | (445 | ) | (407 | ) | (389 | ) | |||||
Other | (19 | ) | (16 | ) | (31 | ) | |||||
Net cash used for financing activities | (261 | ) | (443 | ) | (445 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | (13 | ) | (3 | ) | 3 | ||||||
Cash and Cash Equivalents at Beginning of Period | 65 | 68 | 65 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 52 | $ | 65 | $ | 68 |
DTE Electric Company
Consolidated Statements of Operations
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
Operating Revenues | $ | 5,197 | $ | 5,291 | $ | 5,152 | |||||
Operating Expenses | |||||||||||
Fuel and purchased power | 1,668 | 1,758 | 1,716 | ||||||||
Operation and maintenance | 1,376 | 1,429 | 1,369 | ||||||||
Depreciation and amortization | 896 | 822 | 813 | ||||||||
Taxes other than income | 260 | 256 | 240 | ||||||||
Asset (gains) losses and reserves, net | (3 | ) | (2 | ) | 12 | ||||||
4,197 | 4,263 | 4,150 | |||||||||
Operating Income | 1,000 | 1,028 | 1,002 | ||||||||
Other (Income) and Deductions | |||||||||||
Interest expense | 268 | 272 | 289 | ||||||||
Interest income | — | (1 | ) | — | |||||||
Other income | (54 | ) | (53 | ) | (47 | ) | |||||
Other expenses | 45 | 42 | 56 | ||||||||
259 | 260 | 298 | |||||||||
Income Before Income Taxes | 741 | 768 | 704 | ||||||||
Income Tax Expense | 254 | 282 | 267 | ||||||||
Net Income | $ | 487 | $ | 486 | $ | 437 |
DTE Gas Company
Consolidated Statements of Operations
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
Operating Revenues | $ | 1,448 | $ | 1,293 | $ | 1,483 | |||||
Operating Expenses | |||||||||||
Cost of gas | 607 | 536 | 729 | ||||||||
Operation and maintenance | 423 | 380 | 390 | ||||||||
Depreciation and amortization | 95 | 92 | 89 | ||||||||
Taxes other than income | 56 | 53 | 53 | ||||||||
1,181 | 1,061 | 1,261 | |||||||||
Operating Income | 267 | 232 | 222 | ||||||||
Other (Income) and Deductions | |||||||||||
Interest expense | 58 | 59 | 63 | ||||||||
Interest income | (7 | ) | (7 | ) | (7 | ) | |||||
Other income | (9 | ) | (9 | ) | (7 | ) | |||||
Other expenses | 7 | 25 | 5 | ||||||||
49 | 68 | 54 | |||||||||
Income Before Income Taxes | 218 | 164 | 168 | ||||||||
Income Tax Expense | 77 | 50 | 59 | ||||||||
Net Income | $ | 141 | $ | 114 | $ | 109 |
DTE Energy Debt/Equity Calculation
As of December 31, 2013
($ millions)
Short-term borrowings | $ | 131 | |
Current portion of long-term debt, including capital leases | 898 | ||
Mortgage bonds, notes and other | 6,618 | ||
Securitization bonds, excluding current portion | 105 | ||
Capital lease obligations | 11 | ||
Other adjustments | 192 | ||
less Securitization bonds, including current portion | (302 | ) | |
50% Junior Subordinated Debentures | 240 | ||
Total debt | 7,893 | ||
50% Junior Subordinated Debentures | 240 | ||
Common equity | 7,954 | ||
Total adjusted equity | 8,194 | ||
Total capitalization | $ | 16,087 | |
Debt | 49.1 | % | |
Adjusted equity | 50.9 | % | |
Total | 100 | % |
Sales Analysis - Q4 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
Q4 2013 | Q4 2012 | % Change | Q4 2013 | Q4 2012 | % Change | |||||||||||||||
Residential | 3,673 | 3,486 | 5 | % | Residential | $ | 566,727 | $ | 530,776 | 7 | % | |||||||||
Commercial | 4,076 | 4,099 | (1 | )% | Commercial | 455,874 | 461,966 | (1 | )% | |||||||||||
Industrial | 2,557 | 2,344 | 9 | % | Industrial | 197,806 | 187,118 | 6 | % | |||||||||||
Other | 241 | 241 | — | % | Other | 26,552 | 26,153 | 2 | % | |||||||||||
10,547 | 10,170 | 4 | % | $ | 1,246,959 | $ | 1,206,013 | 3 | % | |||||||||||
Choice | 1,260 | 1,258 | — | % | Choice | 23,704 | 23,829 | (1 | )% | |||||||||||
TOTAL SALES | 11,807 | 11,428 | 3 | % | TOTAL REVENUES | $ | 1,270,663 | $ | 1,229,842 | 3 | % |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
Q4 2013 | Q4 2012 | % Change | Q4 2013 | Q4 2012 | % Change | |||||||||||||||
Residential | 33,756 | 28,985 | 16 | % | Residential | $ | 273,728 | $ | 252,950 | 8 | % | |||||||||
Commercial | 7,441 | 6,188 | 20 | % | Commercial | 58,572 | 52,771 | 11 | % | |||||||||||
Industrial | 160 | 166 | (4 | )% | Industrial | 1,163 | 1,290 | (10 | )% | |||||||||||
41,357 | 35,339 | 17 | % | $ | 333,463 | $ | 307,011 | 9 | % | |||||||||||
End User Transportation* | 45,791 | 41,829 | 9 | % | End User Transportation* | 62,006 | 60,805 | 2 | % | |||||||||||
TOTAL SALES | 87,148 | 77,168 | 13 | % | TOTAL REVENUES | $ | 395,469 | $ | 367,816 | 8 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
Q4 2013 | Q4 2012 | % Change | Q4 2013 | Q4 2012 | % Change | |||||||||||||
Actuals | — | — | — | % | Actuals | 2,427 | 2,088 | 16 | % | |||||||||
Normal | — | — | Normal | 2,187 | 2,208 | |||||||||||||
Deviation from normal | — | % | — | % | Deviation from normal | 11 | % | (5 | )% |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
Q4 2013 | Q4 2012 | ||||||
DTE Electric | $ | 5 | $ | (5 | ) | ||
DTE Gas | 11 | (3 | ) | ||||
Sales Analysis - YTD December 31, 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 15,273 | 15,666 | (3 | )% | Residential | $ | 2,350,798 | $ | 2,354,092 | — | % | |||||||||
Commercial | 16,661 | 16,832 | (1 | )% | Commercial | 1,883,144 | 1,897,868 | (1 | )% | |||||||||||
Industrial | 10,303 | 9,989 | 3 | % | Industrial | 798,650 | 783,668 | 2 | % | |||||||||||
Other | 942 | 958 | (2 | )% | Other | 107,571 | 105,863 | 2 | % | |||||||||||
43,179 | 43,445 | (1 | )% | $ | 5,140,163 | $ | 5,141,491 | — | % | |||||||||||
Choice | 5,200 | 5,197 | — | % | Choice | 96,735 | 92,138 | 5 | % | |||||||||||
TOTAL SALES | 48,379 | 48,642 | (1 | )% | TOTAL REVENUES | $ | 5,236,898 | $ | 5,233,629 | — | % |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 102,176 | 82,990 | 23 | % | Residential | $ | 868,176 | $ | 769,446 | 13 | % | |||||||||
Commercial | 22,421 | 18,484 | 21 | % | Commercial | 186,338 | 163,512 | 14 | % | |||||||||||
Industrial | 575 | 885 | (35 | )% | Industrial | 4,254 | 6,966 | (39 | )% | |||||||||||
125,172 | 102,359 | 22 | % | $ | 1,058,768 | $ | 939,924 | 13 | % | |||||||||||
End User Transportation* | 157,322 | 156,637 | — | % | End User Transportation* | 223,668 | 207,301 | 8 | % | |||||||||||
TOTAL SALES | 282,494 | 258,996 | 9 | % | TOTAL REVENUES | $ | 1,282,436 | $ | 1,147,225 | 12 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Actuals | 865 | 1,123 | (23 | )% | Actuals | 6,616 | 5,410 | 22 | % | |||||||||
Normal | 803 | 736 | Normal | 6,207 | 6,339 | |||||||||||||
Deviation from normal | 8 | % | 53 | % | Deviation from normal | 7 | % | (15 | )% |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
YTD 2013 | YTD 2012 | ||||||
DTE Electric | $ | 4 | $ | 45 | |||
DTE Gas | 19 | (28 | ) | ||||
DTE Electric Temperature Normal Sales Analysis - YTD December 31, 2013 | ||||||||||||||||||
Temperature Normal Electric Sales - DTE Electric Service Area (GWh) | Temperature Normal Electric Sales - DTE Electric Service Area (Includes Electric Choice) (GWh) | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Residential | 15,248 | 15,061 | 1 | % | Residential | 15,249 | 15,062 | 1 | % | |||||||||
Commercial | 16,682 | 16,428 | 2 | % | Commercial | 19,800 | 19,573 | 1 | % | |||||||||
Industrial | 10,305 | 9,946 | 4 | % | Industrial | 12,388 | 11,909 | 4 | % | |||||||||
Other | 942 | 958 | (2 | )% | Other | 942 | 958 | (2 | )% | |||||||||
43,177 | 42,393 | 2 | % | TOTAL SALES | 48,379 | 47,502 | 2 | % | ||||||||||
Choice | 5,202 | 5,109 | 2 | % | ||||||||||||||
TOTAL SALES | 48,379 | 47,502 | 2 | % |