Exhibit 99.2
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
September 30 | December 31 | |||||||
(in Millions) | 2010 | 2009 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 84 | $ | 52 | ||||
Restricted cash | 56 | 84 | ||||||
Accounts receivable (less allowance for doubtful accounts of $222 and $262, respectively) | ||||||||
Customer | 1,140 | 1,438 | ||||||
Other | 97 | 217 | ||||||
Inventories | ||||||||
Fuel and gas | 517 | 309 | ||||||
Materials and supplies | 215 | 200 | ||||||
Deferred income taxes | 150 | 167 | ||||||
Derivative assets | 177 | 209 | ||||||
Other | 305 | 201 | ||||||
2,741 | 2,877 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 890 | 817 | ||||||
Other | 467 | 598 | ||||||
1,357 | 1,415 | |||||||
Property | ||||||||
Property, plant and equipment | 21,370 | 20,588 | ||||||
Less accumulated depreciation, depletion and amortization | (8,548 | ) | (8,157 | ) | ||||
12,822 | 12,431 | |||||||
Other Assets | ||||||||
Goodwill | 2,024 | 2,024 | ||||||
Regulatory assets | 4,056 | 4,110 | ||||||
Securitized regulatory assets | 767 | 870 | ||||||
Intangible assets | 63 | 54 | ||||||
Notes receivable | 125 | 113 | ||||||
Derivative assets | 108 | 116 | ||||||
Other | 203 | 185 | ||||||
7,346 | 7,472 | |||||||
Total Assets | $ | 24,266 | $ | 24,195 | ||||
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
September 30 | December 31 | |||||||
(in Millions, Except Shares) | 2010 | 2009 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 641 | $ | 723 | ||||
Accrued interest | 135 | 114 | ||||||
Dividends payable | 95 | 88 | ||||||
Short-term borrowings | 20 | 327 | ||||||
Current portion long-term debt, including capital leases | 923 | 671 | ||||||
Derivative liabilities | 167 | 220 | ||||||
Other | 532 | 502 | ||||||
2,513 | 2,645 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 6,099 | 6,237 | ||||||
Securitization bonds | 643 | 793 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 43 | 51 | ||||||
7,074 | 7,370 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 2,307 | 2,096 | ||||||
Regulatory liabilities | 1,378 | 1,337 | ||||||
Asset retirement obligations | 1,499 | 1,420 | ||||||
Unamortized investment tax credit | 78 | 85 | ||||||
Derivative liabilities | 154 | 198 | ||||||
Liabilities from transportation and storage contracts | 86 | 96 | ||||||
Accrued pension liability | 700 | 881 | ||||||
Accrued postretirement liability | 1,318 | 1,287 | ||||||
Nuclear decommissioning | 147 | 136 | ||||||
Other | 323 | 328 | ||||||
7,990 | 7,864 | |||||||
Commitments and Contingencies | ||||||||
Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 169,117,259 and 165,400,045 shares issued and outstanding, respectively | 3,422 | 3,257 | ||||||
Retained earnings | 3,374 | 3,168 | ||||||
Accumulated other comprehensive loss | (150 | ) | (147 | ) | ||||
Total DTE Energy Company Equity | 6,646 | 6,278 | ||||||
Noncontrolling interests | 43 | 38 | ||||||
Total Equity | 6,689 | 6,316 | ||||||
Total Liabilities and Equity | $ | 24,266 | $ | 24,195 | ||||
DTEEnergy Company
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended | ||||||||
September 30 | ||||||||
(in Millions) | 2010 | 2009 | ||||||
Operating Activities | ||||||||
Net income | $ | 483 | $ | 414 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 775 | 738 | ||||||
Deferred income taxes | 173 | 141 | ||||||
Other asset (gains), losses and reserves, net | 5 | 4 | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | 73 | 377 | ||||||
Net cash from operating activities | 1,509 | 1,674 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (743 | ) | (772 | ) | ||||
Plant and equipment expenditures — non-utility | (75 | ) | (47 | ) | ||||
Proceeds from sale of other assets, net | 28 | 35 | ||||||
Restricted cash for debt redemption | 33 | 58 | ||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 179 | 237 | ||||||
Investment in nuclear decommissioning trust funds | (204 | ) | (251 | ) | ||||
Consolidation of VIEs | 19 | — | ||||||
Investment in Millennium Pipeline Project | (49 | ) | (15 | ) | ||||
Other | (22 | ) | (40 | ) | ||||
Net cash used for investing activities | (834 | ) | (795 | ) | ||||
Financing Activities | ||||||||
Issuance of long-term debt | 595 | 363 | ||||||
Redemption of long-term debt | (660 | ) | (420 | ) | ||||
Short-term borrowings, net | (307 | ) | (539 | ) | ||||
Issuance of common stock | 26 | 27 | ||||||
Dividends on common stock | (265 | ) | (260 | ) | ||||
Other | (32 | ) | (53 | ) | ||||
Net cash used for financing activities | (643 | ) | (882 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 32 | (3 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 52 | 86 | ||||||
Cash and Cash Equivalents at End of Period | $ | 84 | $ | 83 | ||||
The Detroit Edison Company
Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
(in Millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Operating Revenues | $ | 1,444 | $ | 1,289 | $ | 3,798 | $ | 3,515 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel and purchased power | 484 | 400 | 1,217 | 1,112 | ||||||||||||
Operation and maintenance | 325 | 306 | 960 | 928 | ||||||||||||
Depreciation and amortization | 230 | 222 | 644 | 607 | ||||||||||||
Taxes other than income | 54 | 43 | 180 | 147 | ||||||||||||
Asset gains, net | — | — | (1 | ) | — | |||||||||||
1,093 | 971 | 3,000 | 2,794 | |||||||||||||
Operating Income | 351 | 318 | 798 | 721 | ||||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 83 | 82 | 241 | 245 | ||||||||||||
Interest income | (1 | ) | — | (1 | ) | (1 | ) | |||||||||
Other income | (10 | ) | (12 | ) | (27 | ) | (29 | ) | ||||||||
Other expenses | 6 | 5 | 23 | 5 | ||||||||||||
78 | 75 | 236 | 220 | |||||||||||||
Income Before Income Taxes | 273 | 243 | 562 | 501 | ||||||||||||
Income Tax Provision | 108 | 94 | 219 | 195 | ||||||||||||
Net Income | $ | 165 | $ | 149 | $ | 343 | $ | 306 | ||||||||
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
(in Millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Operating Revenues | $ | 167 | $ | 189 | $ | 1,142 | $ | 1,237 | ||||||||
Operating Expenses | ||||||||||||||||
Cost of gas | 36 | 67 | 575 | 706 | ||||||||||||
Operation and maintenance | 96 | 94 | 271 | 326 | ||||||||||||
Depreciation and amortization | 20 | 27 | 68 | 80 | ||||||||||||
Taxes other than income | 11 | 12 | 42 | 38 | ||||||||||||
Asset gains | — | — | — | (1 | ) | |||||||||||
163 | 200 | 956 | 1,149 | |||||||||||||
Operating Income (Loss) | 4 | (11 | ) | 186 | 88 | |||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 17 | 19 | 50 | 51 | ||||||||||||
Interest income | (2 | ) | (2 | ) | (6 | ) | (6 | ) | ||||||||
Other income | (2 | ) | (1 | ) | (5 | ) | (6 | ) | ||||||||
Other expenses | — | — | 3 | 4 | ||||||||||||
13 | 16 | 42 | 43 | |||||||||||||
Income (Loss) Before Income Taxes | (9 | ) | (27 | ) | 144 | 45 | ||||||||||
Income Tax Provision (Benefit) | (4 | ) | (8 | ) | 51 | 13 | ||||||||||
Net Income (Loss) | $ | (5 | ) | $ | (19 | ) | $ | 93 | $ | 32 | ||||||
DTE Energy Debt/Equity Calculation
As of September 30, 2010
($ millions)
As of September 30, 2010
($ millions)
Short-term borrowings | $ | 20 | ||
Current portion of long-term debt, including capital leases | 923 | |||
Mortgage bonds, notes and other | 6,099 | |||
Securitization bonds, excluding current portion | 643 | |||
Capital lease obligations | 43 | |||
MichCon short-term debt adjustment | 120 | |||
less Securitization bonds, including current portion | (793 | ) | ||
50% Trust preferred-linked securities | 144 | |||
Total debt | 7,199 | |||
50% Trust preferred-linked securities | 144 | |||
Total preferred/ other | 144 | |||
Equity | 6,646 | |||
Total capitalization | $ | 13,989 | ||
Debt | 51.5 | % | ||
Preferred | 1.0 | % | ||
Common shareholders’ equity | 47.5 | % | ||
Total | 100.0 | % | ||
Sales Analysis — Q3 2010
Electric Sales — Detroit Edison Service Area (GWh)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 5,034 | 4,107 | 23 | % | ||||||||
Commercial | 4,730 | 4,805 | -2 | % | ||||||||
Industrial | 2,357 | 2,562 | -8 | % | ||||||||
Other | 798 | 800 | 0 | % | ||||||||
12,919 | 12,274 | 5 | % | |||||||||
Choice | 1,289 | 337 | 282 | % | ||||||||
TOTAL SALES | 14,208 | 12,611 | 13 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 653,756 | 517,052 | 26 | % | ||||||||
Commercial | 459,441 | 449,537 | 2 | % | ||||||||
Industrial | 164,850 | 190,103 | -13 | % | ||||||||
Other | 49,605 | 44,629 | 11 | % | ||||||||
1,327,652 | 1,201,321 | 11 | % | |||||||||
Choice | 28,167 | 8,040 | 250 | % | ||||||||
TOTAL REVENUES | 1,355,819 | 1,209,361 | 12 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 6,058 | 7,128 | -15 | % | ||||||||
Commercial | 1,491 | 1,825 | -18 | % | ||||||||
Industrial | 120 | 130 | -8 | % | ||||||||
7,669 | 9,083 | -16 | % | |||||||||
End User Transportation* | 27,691 | 23,525 | 18 | % | ||||||||
TOTAL SALES | 35,360 | 32,608 | 8 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 84,929 | 93,945 | -10 | % | ||||||||
Commercial | 18,719 | 22,135 | -15 | % | ||||||||
Industrial | 1,092 | 1,257 | -13 | % | ||||||||
104,740 | 117,338 | -11 | % | |||||||||
End User Transportation* | 29,494 | 24,024 | 23 | % | ||||||||
TOTAL REVENUES | 134,235 | 141,362 | -5 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
Q3 2010 | Q3 2009 | % Change | ||||||||||
Actuals | 758 | 421 | 80 | % | ||||||||
Normal | 537 | 537 | ||||||||||
Deviation from normal | 41 | % | -22 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
Q3 2010 | Q3 2009 | % Change | ||||||||||
Actuals | 136 | 134 | 1 | % | ||||||||
Normal* | 142 | 175 | ||||||||||
Deviation from normal | -4 | % | -23 | % |
* | Normal is 15 year weather for 2010 and 30 year weather for 2009 |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
Q3 2010 | Q3 2009 | |||||||
MichCon | — | (1 | ) Normal weather Q3 2010 |
Sales Analysis — YTD September 30, 2010
Electric Sales — Detroit Edison Service Area (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 12,301 | 10,992 | 12 | % | ||||||||
Commercial | 12,660 | 13,764 | -8 | % | ||||||||
Industrial | 7,438 | 7,584 | -2 | % | ||||||||
Other | 2,398 | 2,399 | 0 | % | ||||||||
34,797 | 34,739 | 0 | % | |||||||||
Choice | 3,675 | 998 | 268 | % | ||||||||
TOTAL SALES | 38,472 | 35,737 | 8 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 1,592,911 | 1,348,019 | 18 | % | ||||||||
Commercial | 1,239,498 | 1,278,592 | -3 | % | ||||||||
Industrial | 499,546 | 570,333 | -12 | % | ||||||||
Other | 140,062 | 131,652 | 6 | % | ||||||||
3,472,017 | 3,328,596 | 4 | % | |||||||||
Choice | 78,898 | 27,819 | 184 | % | ||||||||
TOTAL REVENUES | 3,550,915 | 3,356,415 | 6 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 60,460 | 71,387 | -15 | % | ||||||||
Commercial | 16,246 | 21,924 | -26 | % | ||||||||
Industrial | 449 | 865 | -48 | % | ||||||||
77,155 | 94,176 | -18 | % | |||||||||
End User Transportation* | 100,113 | 86,566 | 16 | % | ||||||||
TOTAL SALES | 177,268 | 180,742 | -2 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 693,160 | 740,224 | -6 | % | ||||||||
Commercial | 181,127 | 222,727 | -19 | % | ||||||||
Industrial | 4,477 | 7,524 | -40 | % | ||||||||
878,764 | 970,475 | -9 | % | |||||||||
End User Transportation* | 142,609 | 103,277 | 38 | % | ||||||||
TOTAL REVENUES | 1,021,373 | 1,073,752 | -5 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
YTD 2010 | YTD 2009 | % Change | ||||||||||
Actuals | 1,066 | 575 | 85 | % | ||||||||
Normal | 730 | 730 | ||||||||||
Deviation from normal | 46 | % | -21 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
YTD 2010 | YTD 2009 | % Change | ||||||||||
Actuals | 3,772 | 4,358 | -13 | % | ||||||||
Normal* | 4,197 | 4,346 | ||||||||||
Deviation from normal | -10 | % | 0 | % |
* | Normal is 15 year weather for 2010 and 30 year weather for 2009 |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
YTD 2010 | YTD 2009 | |||||||
MichCon | (11 | ) | 1 | Milder weather reduced MichCon’s earnings by $11M YTD 2010 |
Detroit Edison Temperature Normal Sales Analysis —
September 30, 2010
September 30, 2010
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
Service Area (GWh)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 4,379 | 4,473 | -2 | % | ||||||||
Commercial | 4,524 | 4,902 | -8 | % | ||||||||
Industrial | 2,337 | 2,573 | -9 | % | ||||||||
Other | 798 | 800 | 0 | % | ||||||||
12,038 | 12,748 | -6 | % | |||||||||
Choice | 1,245 | 343 | 263 | % | ||||||||
TOTAL SALES | 13,282 | 13,091 | 1 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
Service Area (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 11,531 | 11,526 | 0 | % | ||||||||
Commercial | 12,382 | 13,922 | -11 | % | ||||||||
Industrial | 7,408 | 7,620 | -3 | % | ||||||||
Other | 2,398 | 2,399 | 0 | % | ||||||||
33,718 | 35,467 | -5 | % | |||||||||
Choice | 3,614 | 1,008 | 259 | % | ||||||||
TOTAL SALES | 37,332 | 36,475 | 2 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
Service Area (Includes Electric Choice) (GWh)
Q3 2010 | Q3 2009 | % Change | ||||||||||
Residential | 4,379 | 4,473 | -2 | % | ||||||||
Commercial | 5,407 | 5,211 | 4 | % | ||||||||
Industrial | 2,698 | 2,608 | 3 | % | ||||||||
Other | 798 | 800 | 0 | % | ||||||||
TOTAL SALES | 13,282 | 13,091 | 1 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
Service Area (Includes Electric Choice) (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 11,531 | 11,527 | 0 | % | ||||||||
Commercial | 14,743 | 15,001 | -2 | % | ||||||||
Industrial | 8,660 | 7,548 | 15 | % | ||||||||
Other | 2,398 | 2,399 | 0 | % | ||||||||
TOTAL SALES | 37,332 | 36,475 | 2 | % | ||||||||