DTE Electric 8-K Dte Energy Reports Second Quarter Earnings

Exhibit 99.2

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS (PRELIMINARY/UNAUDITED)
(in Millions, Except per Share Amounts)

			3 Months - June									6 Months - June
			2003			2002			% Change			2003			2002			% Change
Operating Revenues			$	1,600		$	1,474			9	%	$	3,695		$	3,368			10	%
Operating Expenses
	Fuel, purchased power and gas		$	493		$	403			22	%	$	1,306		$	1,138			15	%
	Operation and maintenance			720			623			16	%		1,475			1,166			27	%
	Depreciation, depletion and amortization			180			180			—			377			369			2	%
	Taxes other than income			87			81			7	%		184			174			6	%
			$	1,480		$	1,287			15	%	$	3,342		$	2,847			17	%
Operating Income			$	120		$	187			-36	%	$	353		$	521			-32	%
Other (Income) and Deductions
	Interest expense		$	132		$	136			-3	%	$	265		$	272			-3	%
	Preferred stock dividends of subsidiaries			6			5			20	%		12			13			-8	%
	Interest income			(7	)		(6	)		17	%		(15	)		(11	)		36	%
	Other income			(18	)		(28	)		-36	%		(31	)		(37	)		-16	%
	Other expenses			18			27			-33	%		51			42			21	%
			$	131		$	134			-2	%	$	282		$	279			1	%
Income (Loss) Before Income Taxes			$	(11	)	$	53			n/m		$	71		$	242			-71	%
Income Tax (Benefit) Expense				10			(8	)		n/m			(16	)		(11	)		-45	%
Income (Loss) from Continuing Operations			$	(21	)	$	61			n/m		$	87		$	253			-66	%
Discontinued Operations — ITC
	Income from operations		$	—		$	7			—		$	5		$	15			-67	%
	Gain on sale			(2	)		—			—			67			—			—
			$	(2	)	$	7			—		$	72		$	15			—
Cumulative Effect of Accounting Changes
	Asset retirement obligations		$	—		$	—			—		$	(11	)	$	—			—
	Energy trading activities			—			—			—			(16	)		—			—
			$	—		$	—			—		$	(27	)	$	—			—
Reported Net Income (Loss)			$	(23	)	$	68			n/m		$	132		$	268			-51	%
Reported Earnings per Diluted Share			$	(0.13	)	$	0.42			-55	%	$	0.79		$	1.66			-55	%
Significant Items Impacting Comparability
	Unusual Items
		Loss on Sale of Steam Heating Business	$	—			—			—			0.08			—			—
		Contribution to DTE Energy Foundation		—			—			—			0.06			—			—
		Disallowance of Gas Costs		—			—			—			0.10			—			—
		Energy Trading Activities (EITF 98-10 flowback)		—			—			—			(0.09	)		—			—
		Effective Tax Rate Adjustment		0.60			0.15			n/m			0.86			0.08			n/m
	Discontinued Operations
		Income from operations of ITC		—			(0.04	)		—			(0.03	)		(0.09	)		-67	%
		Gain on sale of ITC		0.01			—			—			(0.40	)		—			—
	Cumulative Effect of Accounting Changes
		Asset Retirement Obligations (FAS 143)		—			—			—			0.07			—			—
		Energy Trading Activities (EITF 98-10 implementation)		—			—			—			0.09			—			—
Operating Earnings per Diluted Share			$	0.48		$	0.53			-10	%	$	1.53		$	1.65			-7	%
Average Common Shares
	Basic			168			161			4	%		167			161			4	%
	Diluted			168			162			4	%		168			162			4	%
Dividends Declared per Common Share			$	0.515		$	0.515					$	1.03		$	1.03

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, 10K and 10Q.

n/m — not meaningful

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
Earnings Variance Analysis (Preliminary/Unaudited)

Q2 2002 Reported Earnings per Share					$	0.42
	Adjust for Q2 2002 Quarterly Effective Tax Rate Adjustment					0.15
	Adjust for discontinued operations (ITC)					(0.04	)
Q2 2002 Operating Earnings per Share					$	0.53
Regulated Electric
	Gross Margin		(0.28	)
		- lower cooling demand driven by mild weather ($0.17/share impact)
		- margin loss due to choice and higher power supply rates
	O&M Expense		(0.04	)
		- April storm restoration costs, increased plant maintenance and outage investments
		- higher pension and benefit costs
	Regulatory deferrals — environmental and customer choice		0.09
	Other		0.01
		Total Regulated Electric				(0.22	)
Regulated Gas						(0.04	)
Non Regulated
	Energy Services — primarily synfuel credits produced		0.28
	Trading — primarily timing related mark-to-market losses in CoEnergy Portfolio		(0.06	)
		Total Non-Regulated				0.22
Holding Company						(0.01	)
Q2 2003 Operating Earnings per Share					$	0.48

Net Income Summary
(Preliminary/Unaudited)

(in millions, except per share amounts)					Reported							Operating			Operating
					Q2 2003				Adjustments			Q2 2003			Q2 2002				Variance
Energy Resources
		Regulated — Power Generation			$	46						$	46		$	56			$	(10	)
		Non-Regulated
			Energy Services
				Coal Based Fuels		62		A				$	62		$	34			$	28
				On Site Energy Projects		1							1			2				(1	)
				Merchant Generation		16		B					16			(1	)			17
				Other		(3	)						(3	)		(5	)			2
			Coal Services			3							3			3				—
			Biomass Energy			1							1			1				—
			Energy Trading & CoEnergy Portfolio			(15	)						(15	)		(5	)			(10	)
			Energy Resources Overheads			(3	)						(3	)		(5	)			2
		Total Energy Resources Non-Regulated			$	62			$	—		$	62		$	24			$	38
			Total Energy Resources		$	108			$	—		$	108		$	80			$	28
Energy Distribution
		Regulated — Power Distribution			$	(7	)					$	(7	)	$	18			$	(25	)
		Non Regulated (Energy Technologies)				(5	)						(5	)		(4	)			(1	)
			Total Energy Distribution		$	(12	)		$	—		$	(12	)	$	14			$	(26	)
Energy Gas
		Regulated			$	(8	)					$	(8	)	$	(1	)		$	(7	)
		Non-Regulated				6							6			8				(2	)
			Total Energy Gas		$	(2	)		$	—		$	(2	)	$	7			$	(9	)
Holding Company & Other
		Energy Technology Investments			$	(4	)					$	(4	)	$	(2	)		$	(2	)
		Other				(111	)			100	C		(11	)		(13	)	D		2
			Total Holding Company & Other		$	(115	)		$	100		$	(15	)	$	(15	)		$	—
Total
		Regulated
				Electric	$	39						$	39		$	74			$	(35	)
				Gas		(8	)						(8	)		(1	)			(7	)
		Non-Regulated				59		E					59			26				33
		Holding Company/Other				(111	)			100			(11	)		(13	)			2
			Total		$	(21	)		$	100		$	79		$	86			$	(7	)
			Discontinued Operations
				ITC	$	(2	)		$	2	F	$	—		$	—			$	—
Total Net Income (Loss)					$	(23	)		$	102		$	79		$	86			$	(7	)
Total Diluted EPS					$	(0.13	)		$	0.61		$	0.48		$	0.53			$	(0.05	)
	Average Diluted Shares Outstanding					168							168			162

Key:

A — Coal based fuels includes a $9.6 million (net of tax) reserve for a potential uncollectible account
B — Merchant generation includes a $20 million (net of tax) gain associated with the termination of a long-term tolling contract
C — Effective tax rate adjustment
D — Reported was (38), which included a (25) effective tax rate adjustment
E — Includes energy technology investments
F — Gain on sale of International Transmission Company

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (PRELIMINARY/UNAUDITED)
(in Millions)

			June 30			Dec. 31			Percent
ASSETS			2003			2002			Change
Current Assets
	Cash and cash equivalents		$	103		$	133			-23	%
	Restricted cash			126			237			-47	%
	Accounts receivable
		Customer (less allow. for doubtful accounts of $123 and $82)		930			902			3	%
		Accrued unbilled revenues		190			296			-36	%
		Other		370			237			56	%
	Inventories
		Fuel and gas		367			413			-11	%
		Materials and supplies		159			163			-2	%
	Assets from risk management and trading activities			349			224			56	%
	Other			114			159			-28	%
			$	2,708		$	2,764			-2	%
Investments
		Nuclear decommissioning trust funds	$	466		$	417			12	%
		Other		484			487			-1	%
			$	950		$	904			5	%
Property
	Property, plant and equipment		$	17,534		$	17,862			-2	%
	Less accumulated depreciation and depletion			(7,856	)		(8,049	)		2	%
			$	9,678		$	9,813			-2	%
Other Assets
		Goodwill	$	2,086		$	2,119			-2	%
		Regulatory assets		2,066			1,197			72	%
		Securitized regulatory assets		1,571			1,613			-1	%
		Assets from risk management and trading activities		247			152			8	%
		Prepaid pension assets		177			172			2	%
		Other		539			504			2	%
			$	6,686		$	5,757			3	%
Total Assets			$	20,022		$	19,238			4	%

LIABILITIES AND			June 30			Dec. 31			Percent
SHAREHOLDERS' EQUITY			2003			2002			Change
Current Liabilities
	Accounts payable		$	839		$	647			30	%
	Accrued interest			114			115			-1	%
	Dividends payable			91			90			1	%
	Accrued payroll			41			49			-16	%
	Short-term borrowings			231			414			-44	%
	Current portion long-term debt, including capital leases			744			1,018			-27	%
	Liab. from risk mgmt. and trading activities			404			284			42	%
	Other			550			596			-8	%
			$	3,014		$	3,213			-6	%
Other Liabilities
	Deferred income taxes		$	1,154		$	916			26	%
	Regulatory liabilities			171			179			-4	%
	Asset retirement obligations			841			—			—
	Unamortized investment tax credit			162			168			-4	%
		Liab. from risk mgmt. and trading activities		345			208			66	%
		Liab. from transportation and storage contracts		497			523			-5	%
	Accrued pension liability			389			582			-33	%
	Nuclear decommissioning			59			416			-86	%
	Other			691			683			1	%
			$	4,309		$	3,675			17	%
Long-Term Debt
		Mortgage bonds, notes and other	$	5,671		$	5,656			—
		Securitization bonds		1,539			1,585			-3	%
		Equity-linked securities		188			191			-2	%
		Capital lease obligations		79			82			-4	%
			$	7,477		$	7,514			—
Preferred Securities of Subsidiaries			$	271		$	271			—
Shareholders’ Equity
	Common stock		$	3,076		$	3,052			1	%
	Retained earnings			2,096			2,132			-2	%
	Accumulated other comprehensive loss			(221	)		(619	)		-64	%
			$	4,951		$	4,565			8	%
Total Liabilities and Shareholders’ Equity			$	20,022		$	19,238			4	%

The Consolidated Statement of Financial Position (Preliminary/Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.

n/m — not meaningful

Detroit Edison Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - June									6 Months - June
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	870		$	962			-10	%	$	1,807		$	1,892			-4	%
Operating Expenses
	Fuel and purchased power	$	226		$	246			-8	%	$	474		$	455			4	%
	Operation and maintenance		330			321			3	%		696			597			17	%
	Depreciation and amortization		124			138			-10	%		259			285			-9	%
	Taxes other than income		65			65			—			137			137			—
		$	745		$	770			-3	%	$	1,566		$	1,474			6	%
Operating Income		$	125		$	192			-35	%	$	241		$	418			-42	%
Other (Income) and Deductions
	Interest expense	$	71		$	78			-9	%	$	146		$	156			-6	%
	Interest income		—			—			—			—			(1	)		—
	Other income		(22	)		(6	)		n/m			(33	)		(12	)		n/m
	Other expenses		17			7			n/m			37			24			54	%
		$	66		$	79			-16	%	$	150		$	167			-10	%
Income Before Income Taxes		$	59		$	113			-48	%	$	91		$	251			-64	%
Income Tax Provision		$	20		$	39			-49	%	$	31		$	84			-63	%
Income Before Accounting Change		$	39		$	74			-47	%	$	60		$	167			-64	%
Cumulative Effect of Accounting Change			—			—			—			(6	)		—			—
Reported Net Income		$	39		$	74			-47	%	$	54		$	167			-68	%
Cumulative Effect of Accounting Changes
	Asset Retirement Obligations (FAS 143)		—			—			—			6			—			—
Unusual Items
	Loss on Sale of Steam Heating Business		—			—			—			14			—			—
	Elimination of Intercompany Gain		—			—			—			—			(4	)		—
Operating Net Income		$	39		$	74			-47	%	$	74		$	163			-55	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in
conjunction with the Notes to Consolidated Financial Statements appearing in the
Annual Report to Shareholders, Form 10K and Form 10Q.

n/m — not meaningful

Michigan Consolidated Gas Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - June									6 Months - June
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	284		$	235			21	%	$	936		$	825			13	%
Operating Expenses
	Cost of gas	$	160		$	116			38	%	$	581		$	500			16	%
	Operation and maintenance		83			73			14	%		161			140			15	%
	Depreciation, depletion and amortization		28			27			4	%		53			53			—
	Taxes other than income		13			11			18	%		30			27			11	%
	Property write-down and contract losses		5			48			n/m			5			48			—
		$	289		$	275			5	%	$	830		$	768			8	%
Operating Income (Loss)		$	(5	)	$	(40	)		88	%	$	106		$	57			86	%
Other (Income) and Deductions
	Interest expense		14			16			-13	%		29			32			-9	%
	Interest income		(3	)		(2	)		50	%		(6	)		(6	)		—
	Other		(1	)		(2	)		-50	%		(2	)		(2	)		—
		$	10		$	12			17	%	$	21		$	24			13	%
Income (Loss) Before Income Taxes		$	(15	)	$	(52	)		71	%	$	85		$	33			n/m
Income Tax Provision (Benefit)			(4	)		(18	)		78	%		21			12			75	%
Reported Net Income (Loss)		$	(11	)	$	(34	)		68	%	$	64		$	21			n/m
Purchase Accounting and Other Adjustments			3			33			n/m			4			32			n/m
Operating Net Income (Loss) (A)		$	(8	)	$	(1	)		n/m		$	68		$	53			28	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be
read in conjunction with the Notes to Consolidated Financial Statements
appearing in the Annual Report to Shareholders, Form 10K and Form 10Q.

(A)	Represents MichCon’s results included in the DTE
	Energy Consolidated Statement of Operations.

n/m — not meaningful

Sales Analysis

Electric — Detroit Edison Service Area (MWh)

		Q2 2003		Q2 2002		% Change
Residential			3,242,646		3,527,434		-8.1	%
Commercial			3,961,682		4,718,237		-16.0	%
Industrial			3,134,495		3,536,682		-11.4	%
Other			639,050		634,854		0.7	%
TOTAL SYSTEM			10,977,873		12,417,207		-11.6	%
Choice Sales*			1,844,169		761,341		142.2	%
TOTAL SALES			12,822,042		13,178,548		-2.7	%
	Interconnection Sales		619,249		717,046		-13.6	%
	(not included above)

* Includes Dearborn Industrial Group sales

Gas — MichCon Service Area (Mcf)

	Q2 2003		Q2 2002		% Change
Residential		24,713,839		22,044,213		12.1	%
Commercial		6,647,296		7,122,666		-6.7	%
Industrial		238,568		306,361		-22.1	%
		31,599,703		29,473,240		7.2	%
End Use Transportation		25,578,325		37,908,012		-32.5	%
(includes choice customers)
TOTAL SALES		57,178,028		67,381,252		-15.1	%

Weather

Cooling Degree Days (Detroit Edison service area)

	Q2 2003			Q2 2002			% Change
Actuals		106			256			-59	%
Normal		187			187
Deviation from normal		-43.3	%		36.9	%

Heating Degree Days(MichCon service area)

	Q2 2003			Q2 2002			% Change
Actuals		909			884			3	%
Normal		882			876
Deviation from normal		3.1	%		0.9	%