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
	2004			2003			% Change			2004			2003			% Change
Operating Revenues	$	1,501		$	1,600			-6	%	$	3,594		$	3,695			-3	%
Operating Expenses
Fuel, purchased power and gas		377			493			-24	%		1,118			1,306			-14	%
Operation and maintenance		851			792			7	%		1,633			1,556			5	%
Depreciation, depletion and amortization		179			180			-1	%		346			377			-8	%
Taxes other than income		60			87			-31	%		145			184			-21	%
Gains on sale of assets, net		(83	)		(23	)		n/m			(133	)		(16	)		n/m
		1,384			1,529			-9	%		3,109			3,407			-9	%
Operating Income		117			71			65	%		485			288			68	%
Other (Income) and Deductions
Interest expense		129			138			-7	%		260			277			-6	%
Interest income		(17	)		(7	)		143	%		(27	)		(15	)		80	%
Minority interest		(51	)		(36	)		42	%		(81	)		(52	)		56	%
Other income		(20	)		(18	)		11	%		(37	)		(31	)		19	%
Other expenses		23			18			28	%		45			51			-12	%
		64			95			-33	%		160			230			-30	%
Income Before Income Taxes		53			(24	)		n/m			325			58			n/m
Income Tax Provision (Benefit)		18			13			38	%		93			(13	)		n/m
Income from Continuing Operations		35			(37	)		n/m			232			71			n/m
Income (Loss) from Discontinued Operations		—			(2	)		—			(7	)		72			n/m
Cumulative Effect of Accounting Changes		—			—			—			—			(27	)		—
Reported Net Income (Loss)	$	35		$	(39	)		n/m		$	225		$	116			n/m
Basic Earnings (Loss) per Common Share
Income (Loss) from Continuing Operations	$	0.20		$	(0.22	)				$	1.35		$	0.43
Discontinued Operations		—			(0.01	)					(0.04	)		0.43
Cumulative Effect of Accounting Changes		—			—						—			(0.17	)
Total	$	0.20		$	(0.23	)		n/m		$	1.31		$	0.69			n/m
Diluted Earnings (Loss) per Common Share
Income (Loss) from Continuing Operations	$	0.20		$	(0.22	)				$	1.35		$	0.42
Discontinued Operations		—			(0.01	)					(0.04	)		0.43
Cumulative Effect of Accounting Changes		—			—						—			(0.16	)
Total	$	0.20		$	(0.23	)		n/m		$	1.31		$	0.69			n/m
Significant Items Impacting Comparability
Unusual Items
Pipeline Contract Modification/Termination		—			—			—			(0.28	)		—			—
Tax credit driven normalization		0.03			0.64			—			0.06			0.90			—
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	)		—
Discontinued Operations
Southern Missouri Gas Company		—			—			—			0.04			—			—
International Transmission Company		—			0.01			—			—			(0.43	)		—
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	$	0.23		$	0.42			-45	%	$	1.13		$	1.47			-23	%
Average Common Shares
Basic		173			168			3	%		172			167			3	%
Diluted		174			168			4	%		172			168			2	%
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 2003 Reported Earnings per Share				($0.23	)
Adjust for Q2 2003 Quarterly Effective Tax Rate Adjustment				0.64
Adjust for discontinued operations (ITC)				0.01
Q2 2003 Operating Earnings per Share			$	0.42
Regulated Electric				(0.13	)
Regulatory Assets	0.03
Weather	0.04
Choice Lost Margin	(0.12	)
Net Interim Rate Relief Impact	0.06
Other Margin Changes	(0.05	)
Pension/Health Care	(0.06	)
Storm Costs	0.06
Other O&M Expenses	(0.09	)
Regulated Gas				($0.17	)
Weather	(0.02	)
Other Margin Changes	(0.03	)
Pension/Health Care	(0.04	)
Uncollectables	(0.03	)
Other Costs	(0.05	)
Non-Regulated				(0.02	)
Synfuels	(0.08	)
Power Generation	(0.11	)
Other Energy Resources Non-Regulated	0.10
Technology Investments (Primarily Plug Power)	0.09
DTE Energy Technologies	(0.02	)
Holding Company & Share Dilution				0.13
Q2 2004 Operating Earnings per Share			$	0.23
Effective tax rate adjustment				(0.03	)
Q2 2004 Reported Earnings per Share			$	0.20

Net Income Summary
(Preliminary/Unaudited)

(in millions, except per share amounts)	Reported					Operating			Operating
	Q2 2004			Adjustments		Q2 2004			Q2 2003			Variance
Energy Resources
Regulated — Power Generation	$	1		$	—	$	1		$	46		$	(45	)
Non-Regulated
Energy Services
Coal Based Fuels
Synfuels		56			—		56			70			(14	)
Coke Batteries		—			—		—			(8	)		8
On Site Energy Projects		9			—		9			2			7
Merchant Generation		(4	)		—		(4	)		16			(20	)
Coal Services		2			—		2			3			(1	)
Biomass Energy		1			—		1			1			—
Energy Trading & CoEnergy Portfolio		(7	)		—		(7	)		(15	)		8
Energy Resources Overheads		(8	)		—		(8	)		(7	)		(1	)
Total Energy Resources Non-Regulated	$	49		$	—		49		$	62		$	(13	)
Total Energy Resources	$	50		$	—		50		$	108		$	(58	)
Energy Distribution
Regulated — Power Distribution		7		$	—		7		$	(16	)	$	23
Non Regulated (Energy Technologies)		(8	)		—		(8	)		(5	)		(3	)
Total Energy Distribution	$	(1	)	$	—		(1	)	$	(21	)	$	20
Energy Gas
Regulated		(38	)	$	—		(38	)	$	(8	)	$	(30	)
Non-Regulated		5			—		5			6			(1	)
Total Energy Gas	$	(33	)	$	—		(33	)	$	(2	)	$	(31	)
Holding Company & Other
DTE Energy Ventures	$	10					10		$	(5	)	$	15
Other		9			4 A		13			(10	)		23
Total Holding Company & Other	$	19			4	$	23		$	(15	)	$	38
Total Net Income		35		$	4	$	39		$	70		$	(31	)
Total Diluted EPS	$	0.20		$	0.03	$	0.23		$	0.42		$	(0.19	)
Average Diluted Shares Outstanding		174			174		174			168

Key:

A -Quarterly Effective Tax Rate Adjustment $4M

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

	June 30			Dec. 31			Percent
ASSETS	2004			2003			Change
Current Assets
Cash and cash equivalents	$	75		$	54			39	%
Restricted cash		121			131			-8	%
Accounts receivable
Customer (less allow. for doubtful accounts of $129 and $99)		859			877			-2	%
Accrued unbilled revenues		212			316			-33	%
Other		464			338			37	%
Inventories
Fuel and gas		390			467			-16	%
Materials and supplies		161			162			-1	%
Assets from risk management and trading activities		238			186			28	%
Other		207			181			14	%
		2,727			2,712			1	%
Investments
Nuclear decommissioning trust funds		544			518			5	%
Other		574			601			-4	%
		1,118			1,119			—
Property
Property, plant and equipment		17,966			17,679			2	%
Less accumulated depreciation and depletion		(7,590	)		(7,355	)		3	%
		10,376			10,324			1	%
Other Assets
Goodwill		2,063			2,067			—
Regulatory assets		2,109			2,063			2	%
Securitized regulatory assets		1,484			1,527			-3	%
Notes receivable		552			469			18	%
Assets from risk management and trading activities		196			88			123	%
Prepaid pension assets		182			181			1	%
Other		204			203			1	%
		6,790			6,598			3	%
Total Assets	$	21,011		$	20,753			1	%

LIABILITIES AND	June 30			Dec. 31			Percent
SHAREHOLDERS’ EQUITY	2004			2003			Change
Current Liabilities
Accounts payable	$	701		$	625			12	%
Accrued interest		106			110			-4	%
Dividends payable		90			87			3	%
Accrued payroll		43			51			-16	%
Income taxes		—			185			—
Short-term borrowings		490			370			32	%
Current portion long-term debt, including capital leases		340			477			-29	%
Liabilities from risk management and trading activities		387			326			19	%
Other		610			593			3	%
		2,767			2,824			-2	%
Other Liabilities
Deferred income taxes		1,093			988			11	%
Regulatory liabilities		816			817			—
Asset retirement obligations		892			866			3	%
Unamortized investment tax credit		150			156			-4	%
Liab. from risk mgmt. and trading activities		306			173			77	%
Liab. from transportation and storage contracts		407			495			-18	%
Accrued pension liability		216			345			-37	%
Deferred gains from asset sales		412			311			32	%
Minority interest		145			156			-7	%
Nuclear decommissioning		70			67			4	%
Other		589			599			-2	%
		5,096			4,973			2	%
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,672			5,624			1	%
Securitization bonds		1,446			1,496			-3	%
Equity-linked securities		181			185			-2	%
Trust preferred-linked securities		289			289			—
Capital lease obligations		71			75			-5	%
		7,659			7,669			—
Contingencies
Shareholders’ Equity
Common stock		3,300			3,109			6	%
Retained earnings		2,356			2,308			2	%
Accumulated other comprehensive loss		(167	)		(130	)		-28	%
		5,489			5,287			4	%
Total Liabilities and Shareholders’ Equity	$	21,011		$	20,753			1	%

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.

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (PRELIMINARY/UNAUDITED)

	6 Months - June
	2004			2003
(in Millions)
Operating Activities
Net Income	$	225		$	116
Adjustments to reconcile net income to net cash from
operating activities:
Depreciation, depletion, and amortization		346			381
Deferred income taxes		112			61
Gain on sale of interests in synfuel projects		(106	)		(33	)
Gain on sale of ITC and other assets, net		(24	)		(118	)
Partners’ share of synfuel project losses		(87	)		(38	)
Contributions from synfuel partners		36			29
Cumulative effect of accounting changes		—			27
Changes in assets and liabilities, exclusive of changes
shown separately		17			(97	)
Net cash from operating activities	$	519		$	328
Investing Activities
Plant and equipment expenditures — regulated		(363	)		(356	)
Plant and equipment expenditures — non-regulated		(33	)		(44	)
Investment in joint ventures		(36	)		(4	)
Proceeds from sale of interests in synfuel projects		88			43
Proceeds from sale of ITC and other assets		59			604
Restricted cash for debt redemptions		10			110
Other investments		(38	)		(49	)
Net cash from (used for) investing activities	$	(313	)	$	304
Financing Activities
Issuance of long-term debt		418			480
Redemption of long-term debt		(565	)		(800	)
Short-term borrowings, net		120			(184	)
Issuance of common stock		21			21
Dividends on common stock		(176	)		(173	)
Other		(3	)		(6	)
Net cash used for financing activities	$	(185	)	$	(662	)
Net Increase (Decrease) in Cash and Cash Equivalents		21			(30	)
Cash and Cash Equivalents at Beginning of the Period		54			133
Cash and Cash Equivalents at End of the Period	$	75		$	103

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

	3 Months - June									6 Months - June
	2004			2003			% Change			2004			2003			% Change
Operating Revenues	$	835		$	870			-4	%	$	1,721		$	1,807			-5	%
Operating Expenses
Fuel and purchased power		200			226			-12	%		416			474			-12	%
Operation and maintenance		359			343			5	%		702			709			-1	%
Depreciation and amortization		122			124			-2	%		236			259			-9	%
Taxes other than income		62			65			-5	%		130			137			-5	%
		743			758			-2	%		1,484			1,579			-6	%
Operating Income		92			112			-18	%		237			228			4	%
Other (Income) and Deductions
Interest expense		71			71			—			143			146			-2	%
Other income		(15	)		(22	)		-32	%		(30	)		(33	)		-9	%
Other expense		23			17			35	%		45			37			22	%
		79			66			20	%		158			150			5	%
Income Before Income Taxes		13			46			-72	%		79			78			1	%
Income Tax Provision		5			16			-69	%		27			27			—
Income Before Accounting Change		8			30			-73	%		52			51			2	%
Cumulative Effect of Accounting Change		—			—			—			—			(6	)		—
Reported Earnings	$	8		$	30			-73	%	$	52		$	45			16	%
Cumulative Effect of Accounting Changes
Asset Retirement Obligations (FAS 143)		—			—			—			—			6			—
Unusual Items
Loss on Sale of Steam Heating Business		—			—			—			—			14			—
Operating Earnings	$	8		$	30			-73	%	$	52		$	65			-20	%

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
	2004			2003			% Change			2004			2003			% Change
Operating Revenues	$	271		$	284			-5	%	$	986		$	936			5	%
Operating Expenses
Cost of gas		161			160			1	%		649			581			12	%
Operation and maintenance		108			83			30	%		203			161			26	%
Depreciation, depletion and amortization		26			28			-7	%		53			53			—
Taxes other than income		13			13			—			25			30			-17	%
Property write-down		—			5			—			—			5			—
		308			289			7	%		930			830			12	%
Operating Income (Loss)		(37	)		(5	)		—			56			106			-47	%
Other (Income) and Deductions
Interest expense		13			14			-7	%		27			29			-7	%
Interest income		(3	)		(3	)		—			(5	)		(6	)		-17	%
Other		—			(1	)		—			1			(2	)		-150	%
		10			10			—			23			21			10	%
Income (Loss) Before Income Taxes		(47	)		(15	)		-213	%		33			85			-61	%
Income Tax Provision (Benefit)		(10	)		(4	)		-150	%		—			21			—
Reported Earnings (Loss) (A)		(37	)		(11	)		-236	%		33			64			-48	%
Operating Earnings	$	(37	)	$	(11	)		-236	%	$	33		$	64			-48	%

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) Excludes $26 million ($17 million after-tax) of 2002 gas disallowance costs that were previously reflected in 2003 earnings. 2002 earnings have been restated to account for these gas disallowance costs.

n/m — not meaningful

DTE Energy Debt/Equity Calculation
As of June 30, 2004
($ millions)

short-term borrowings	$	490
current portion LTD + cap leases		340
long-term debt		5,672
securitization bonds		1,446
capital leases		71
less QUIDS		(385	)
less MichCon short-term debt		—
less securitization debt, including current portion		(1,539	)
Total debt	$	6,095
Trust preferred	$	289
QUIDS		385
Mandatory convertible		181
Total preferred/other	$	855
Equity	$	5,489
Total cap	$	12,439
Debt		49.0	%
Preferred stock		6.9	%
Common shareholders’ equity		44.1	%
Total		100.0	%

Sales Analysis

Electric Sales - Detroit Edison Service Area (000’s of GWh)								Electric Revenue - Detroit Edison Service Area ($000s)
	Q2 2004		Q2 2003		% Change				Q2 2004		Q2 2003		% Change
Residential		3,473		3,243		7.1	%	Residential		309,485		287,350		7.7	%
Commercial		3,049		3,962		-23.0	%	Commercial		257,378		329,040		-21.8	%
Industrial		2,810		3,134		-10.4	%	Industrial		135,628		164,043		-17.3	%
Other		656		639		2.6	%	Other		30,531		28,634		6.6	%
TOTAL SYSTEM		9,987		10,978		-9.0	%	TOTAL SYSTEM		733,022		809,067		-9.4	%
Interconnection Sales		1026		619				Interconnection Sales		39,614		27,298
Choice Sales*		2,480		1,844		34.5	%	Choice Sales*		46,937		8,643,778		-99.5	%
TOTAL SALES		13,493		13,440		0.4	%	TOTAL SALES		819,572		9,480,143		-91.4	%
* Includes Dearborn Industrial Group sales								* Includes Dearborn Industrial Group sales

Gas Sales - MichCon									Gas Revenue - MichCon
	Q2 2004			Q2 2003		% Change				Q2 2004			Q2 2003		% Change
Residential		17,721,665			24,713,839		-28.3	%	Residential		146,783,207			168,597,970		-12.9	%
Commercial		5,666,174			6,647,296		-14.8	%	Commercial		44,811,717			46,225,700		-3.1	%
Industrial		(947,171	)		238,568		-497.0	%	Industrial		(6,674,363	)		1,550,787		-530.4	%
		22,440,668			31,599,703		-29.0	%			184,920,561			216,374,457		-14.5	%
End User Transportation*		29,160,337			25,578,325		14.0	%	End User Transportation*		25,135,891			27,947,928		-10.1	%
TOTAL SALES		51,601,005			57,178,028		-9.8	%	TOTAL SALES		210,056,452			244,322,385		-14.0	%
* Includes choice customers									* Includes choice customers

Weather

Cooling Degree Days										Heating Degree Days
	Q1 2004			Q1 2003			% Change				Q2 2004			Q2 2003			% Change
Actuals		171			114			50	%	Actuals		766			909		-16%
Normal		193			193			n/m		Normal		888			882
Deviation from normal		-11.4	%		-40.9	%				Deviation from normal		-13.7	%		3.1	%