DTE Electric 8-K Dte Energy Reports First Quarter Earnings; Maintains 2005 Earnings Guidance

Exhibit 99.2

DTE Energy Company
Net Income Summary (Preliminary/Unaudited)

	Three Months Ended March 31
	2005									2004
	Reported						Operating			Reported						Operating
(in Millions)	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Energy Resources
Utility — Power Generation	$	12		$	—		$	12		$	16		$	1	B	$	10
														(7	)D
Non-utility
Synfuels		67			(3	)A		64			40			—			40
Coke Batteries		11			—			11			4			—			4
On Site Energy Projects		5			—			5			3			—			3
Power Generation		(3	)		—			(3	)		(3	)		—			(3	)
Other Energy Services		(1	)		—			(1	)		(1	)		—			(1	)
Coal Services		5			—			5			3			—			3
Peptec		(1	)		—			(1	)		(2	)		—			(2	)
Biomass Energy		1			—			1			1			—			1
Energy Trading & CoEnergy Portfolio		(22	)		—			(22	)		57			(48	)E		9
Energy Resources Overheads/Development		(12	)		—			(12	)		(9	)		—			(9	)
Total Non-utility		50			(3	)		47			93			(48	)		45
		62			(3	)		59			109			(54	)		55
Energy Distribution
Utility — Power Distribution		43			2	B		45			28			2	B		30
Non-utility		(4	)		—			(4	)		(3	)		—			(3	)
		39			2			41			25			2			27
Energy Gas
Utility — Gas Distribution		50			1	B		51			71			1	B		72
Non-utility		9			—			9			4			—			4
		59			1			60			75			1			76
Corporate and Other
Energy Technology Investments		(1	)		—			(1	)		—			—			—
Other Holding Company		(10	)		4	C		(6	)		(12	)		6	C		(6	)
		(11	)		4			(7	)		(12	)		6			(6	)
Discontinued Operations
Impairment loss/Gain on sale.		—			—			—			(7	)		7	F		—
		—			—			—			(7	)		7			—
Net Income	$	149		$	4		$	153		$	190		$	(38	)	$	152

Adjustments key
A) 2006 oil price option	Mark to market adjustment on 2006 oil price option
B) DTE2 project costs	Incremental DTE2 project costs
C) Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
D) Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
E) Adjustment for contract termination / modification	Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company
F) Impairment loss / Discontinued operations.	Impairment charge relating to the expected loss on sale of Southern Missouri Gas Company

1

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES

Earnings Variance Analysis (Preliminary/Unaudited)

Q1 2004 Reported Earnings per Share	$	1.11
Adjustment for contract termination / modification with a pipeline company		(0.28	)
Impairment charge for the expected loss on sale of Southern Missouri Gas Co.		0.04
Quarterly adjustment at DTE Energy to normalize its effective tax rate		0.04
Stranded cost adjustment made pursuant to Nov. 2004 MPSC order		(0.04	)
Incremental non-recurring DTE2 project costs		0.02
Q1 2004 Operating Earnings per Share	$	0.89
Electric Utility
Rate Relief		0.19
Economy		(0.04	)
Other Margins		(0.03	)
Regulatory Deferrals		(0.05	)
Merger Interest		0.06
Other		(0.03	)
Gas Utility
Rate Relief		0.05
Gas Margins		(0.03	)
Uncollectibles		(0.02	)
Pension/Health Care		(0.03	)
Tax Adjustments		(0.07	)
Other		(0.03	)
Non-Utility
Net Synfuel Impact		0.13
Gas Midstream		0.03
Coke Batteries		0.04
Energy Trading & CoEnergy Portfolio		(0.18	)
Holding Company & Share Dilution		—
Q1 2005 Operating Earnings per Share	$	0.88
Quarterly adjustment at DTE Energy to normalize its effective tax rate		(0.03	)
Incremental non-recurring DTE2 project costs		(0.02	)
Mark to market adjustment on 2006 oil price option		0.02
Q1 2005 Reported Earnings per Share	$	0.85

DTE Energy Company
Consolidated Statement of Financial Position (UNAUDITED)

	(Unaudited)
	March 31			December 31
	2005			2004
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents	$	60		$	56
Restricted cash		74			126
Accounts receivable
Customer (less allowance for doubtful accounts of $134 and $129, respectively)		1,157			880
Accrued unbilled revenues		294			378
Other		468			383
Inventories
Fuel and gas		362			509
Materials and supplies		152			159
Assets from risk management and trading activities		423			296
Other		259			209
		3,249			2,996
Investments
Nuclear decommissioning trust funds		593			590
Other		556			558
		1,149			1,148
Property
Property, plant and equipment		18,140			18,011
Less accumulated depreciation and depletion		(7,611	)		(7,520	)
		10,529			10,491
Other Assets
Goodwill		2,067			2,067
Regulatory assets		2,151			2,119
Securitized regulatory assets		1,414			1,438
Notes receivable		486			529
Assets from risk management and trading activities		192			125
Prepaid pension assets		184			184
Other		190			200
		6,684			6,662
Total Assets	$	21,611		$	21,297

     

3

DTE Energy Company
Consolidated Statement of Financial Position ( UNAUDITED )

	(Unaudited)
	March 31			December 31
	2005			2004
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	863		$	892
Accrued interest		116			111
Dividends payable		90			90
Accrued payroll		34			33
Income taxes		—			16
Short-term borrowings		439			403
Gas inventory equalization		278			—
Current portion long-term debt, including capital leases		347			514
Liabilities from risk management and trading activities		537			369
Other		527			581
		3,231			3,009
Other Liabilities
Deferred income taxes		1,177			1,124
Regulatory liabilities		828			817
Asset retirement obligations		930			916
Unamortized investment tax credit		140			143
Liabilities from risk management and trading activities		261			224
Liabilities from transportation and storage contracts		378			387
Accrued pension liability		289			265
Deferred gains from asset sales		386			414
Minority interest		128			132
Nuclear decommissioning		78			77
Other		688			635
		5,283			5,134
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,671			5,673
Securitization bonds		1,345			1,400
Equity-linked securities		173			178
Trust preferred-linked securities		289			289
Capital lease obligations		63			66
		7,541			7,606
Commitments and Contingencies
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized,174,175,040 and 174,209,034 shares issued and outstanding, respectively		3,309			3,323
Retained earnings		2,442			2,383
Accumulated other comprehensive loss		(195	)		(158	)
		5,556			5,548
Total Liabilities and Shareholders’ Equity	$	21,611		$	21,297

     

4

DTEEnergy Company

Consolidated Statement of Cash Flows (UNAUDITED)

	Three Months Ended
	March 31
	2005			2004
(in Millions)
Operating Activities
Net income	$	149		$	190
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		208			167
Deferred income taxes		65			113
Gain on sale of interests in synfuel projects		(82	)		(49	)
Gain on sale of assets, net		(1	)		(3	)
Partners’ share of synfuel project losses		(71	)		(36	)
Contributions from synfuel partners		47			17
Changes in assets and liabilities, exclusive of changes shown separately		98			(119	)
Net cash from operating activities		413			280
Investing Activities
Plant and equipment expenditures — utility		(172	)		(161	)
Plant and equipment expenditures — non-utility		(26	)		(18	)
Proceeds from sale of interests in synfuel projects		63			26
Proceeds from sale other assets		2			31
Restricted cash for debt redemptions		52			54
Other investments		(31	)		(26	)
Net cash used for investing activities		(112	)		(94	)
Financing Activities
Issuance of long-term debt		395			—
Redemption of long-term debt		(628	)		(232	)
Short-term borrowings, net		36			134
Issuance of common stock		—			11
Repurchase of common stock		(9	)		—
Dividends on common stock		(90	)		(87	)
Other		(1	)		(2	)
Net cash used for financing activities		(297	)		(176	)
Net Increase (Decrease) in Cash and Cash Equivalents		4			10
Cash and Cash Equivalents at Beginning of Period		56			54
Cash and Cash Equivalents at End of Period	$	60		$	64

     

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)

	Three Months ended
	March 31
(in Millions)	2005			2004
Operating Revenues	$	990		$	886
Operating Expenses
Fuel and purchased power		301			216
Operation and maintenance		321			343
Depreciation and amortization		150			114
Taxes other than income		69			68
		841			741
Operating Income		149			145
Other (Income) and Deductions
Interest expense		64			72
Interest income		(1	)		—
Other income		(12	)		(15	)
Other expense		18			22
		69			79
Income Before Income Taxes		80			66
Income Tax Provision		25			22
Reported Earnings		55			44
Unusual Items
Stranded Cost adjustment		—			(7	)
DTE2 Capitalized costs		2			3
Operating Earnings	$	57		$	40
The Consolidated Statement of Operations (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

Michigan Consolidated Gas Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended
	March 31
(in Millions)	2005			2004
Operating Revenues	$	862		$	715
Operating Expenses
Cost of gas		627			488
Operation and maintenance		113			97
Depreciation, depletion and amortization		27			27
Taxes other than income		12			12
Asset gains and losses, net Taxes other than income		—			(2	)
		779			622
Operating Income		83			93
Other (Income) and Deductions
Interest expense		14			14
Interest income		(2	)		(2	)
Other, net		—			1
		12			13
Income Before Income Taxes		71			80
Income Tax Provision		19			10
Reported Earnings		52			70
DTE2 Capitalized Costs		1			1
Operating Earnings	$	53		$	71
The Consolidated Statement of Operations (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

DTE Energy Debt/Equity Calculation

As of March 31, 2005
($ millions)

short-term borrowings	439
current portion LTD + cap leases	347
long-term debt	5,671
securitization bonds	1,345
capital leases	63
less MichCon short-term debt	—
less securitization debt, including current portion	(1,446
Total debt	6,419
Trust preferred	289
Mandatory convertible	173
Total preferred/ other	462
Equity	5,556
Total capitalization	12,437
Debt	51.6
Preferred stock	3.7
Common shareholders’ equity	44.7
Total	100.0

Sales Analysis — Q1 2005

Electric Sales — Detroit Edison Service Area (GWh)

	Q1 2005		Q1 2004		% Change
Residential		4,051		4,068		0	%
Commercial		3,365		3,491		-4	%
Industrial		2,896		2,754		5	%
Other		666		666		0	%
		10,978		10,979		0	%
Interconnection		1,719		1,630		5	%
Choice*		1,914		2,142		-11	%
TOTAL SALES		14,611		14,751		-1	%

* Includes Dearborn Industrial Group sales

Electric Revenue — Detroit Edison Service Area ($000s)

	Q1 2005		Q1 2004		% Change
Residential		361,539		360,250		0	%
Commercial		286,344		290,216		-1	%
Industrial		154,662		133,413		16	%
Other		30,118		29,181		3	%
		832,663		813,060		2	%
Interconnection		79,273		61,704		28	%
Choice*		37,269		27,557		35	%	**
TOTAL REVENUES		949,205		902,321		5	%

* Distribution charge includes Dearborn Industrial Group revenues

** Reflects impact of interim rate order eliminating Choice
     transition credit & implementing transition charges

Gas Sales — MichCon Service Area (Mcf)

	Q1 2005		Q1 2004		% Change
Residential		61,048,508		60,701,689		1	%
Commercial		20,370,715		20,315,556		0	%
Industrial		542,713		1,761,162		-69	%
		81,961,936		82,778,407		-1	%
End User
Transportation*		49,593,455		49,878,340		-1	%
TOTAL SALES		131,555,391		132,656,747		-1	%

* Includes choice customers

Gas Revenue — MichCon Service Area ($000s)

	Q1 2005		Q1 2004		% Change
Residential		538,989,519		437,059,933		23%	*
Commercial		182,707,023		149,147,387		23%
Industrial		4,819,665		12,696,249		-62%
		726,516,207		598,903,569		21%
End User
Transportation**		45,422,133		42,316,720		7%
TOTAL REVENUES		771,938,340		641,220,289		20%

* Reflects impact of interim rate relief and a higher gas cost
    recovery factor
** Includes choice customers

Weather

Cooling Degree Days
Detroit Edison service territory

	Q1 2005		Q1 2004		% Change
Actuals		0		0		n/m
Normal		0		0
Deviation from normal		n/m		n/m

n/m: not meaningful

Heating Degree Days
MichCon service territory

	Q1 2005			Q1 2004			% Change
Actuals		3,388			3,358			1	%
Normal*		3,385			3,220
Deviation from normal		0	%		4	%

* 2005 data based on 30-year average, 2004 data based on 10-year
    average