DTE Electric 8-K Dte Energy Reports Second Quarter Earnings; Reaffirms 2005 Earnings Guidance

Exhibit 99.2

DTE Energy Company
Historical Operating Net Income

(Preliminary/Unaudited)

(in millions, except per share amounts)

	2004															2005
	Q1			Q2			Q3			Q4			Total			Q1			Q2
Electric Utility		38			10			62			68			178			57			46
Gas Utility		57			(28	)		(31	)		26			24			58			(2	)
Total Utilities		95			(18	)		31			94			202			115			44
Power & Industrial Projects
Synfuels		41			54			51			47			193			65			18
Power Generation		(4	)		(4	)		(6	)		(3	)		(17	)		(4	)		(3	)
All Other Projects		1			6			6			(1	)		12			5			8
Corporate Overheads		(2	)		(3	)		(2	)		(2	)		(9	)		—			(3	)
Total Power & Industrial Projects		36			53			49			41			179			66			20
Fuel Transportation & Marketing
Coal Services		3			5			5			7			20			5			6
Midstream		3			4			4			6			17			8			5
Energy Trading and CoEnergy Portfolio		9			(7	)		12			30			44			(22	)		(7	)
Corporate Overheads		(3	)		(3	)		(3	)		(3	)		(12	)		(1	)		(4	)
Total Fuel Transportation & Marketing		12			(1	)		18			40			69			(10	)		—
Unconventional Gas Production		1			2			2			1			6			1			—
Corporate & Other		(10	)		16			(8	)		(27	)		(29	)		(11	)		(27	)
Total Net Income		134			52			92			149			427			161			37
Earnings Per Diluted Share	$	0.79		$	0.30		$	0.53		$	0.85		$	2.46		$	0.92		$	0.21
Average Diluted Shares Outstanding		170			174			174			175			173			175			175

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DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES

Earnings Variance Analysis (Preliminary/Unaudited)

Q2 2004 Reported Earnings per Share	$	0.20
Quarterly adjustment normalize the effective tax rate		0.08
Incremental non-recurring DTE2 project costs		0.02
Q2 2004 Operating Earnings per Share	$	0.30
Electric Utility
Rate Relief		0.13
Weather		0.11
Economy		(0.03	)
Electric Choice		0.03
Regulatory Deferrals		(0.07	)
Merger Interest		0.06
Benefits		(0.05	)
Other		0.02
Gas Utility
Rate Relief		0.04
Gas Margins		0.03
Merger Interest		0.03
Other		0.05
Non-Utility
Synfuel production		0.14
Mark-to-market loss on oil price hedges		(0.10	)
Q2 deferred synfuel variable note payment		(0.26	)
Power & Industrial projects (excl. synfuels)		0.03
Other
Holding Company(merger interest, gain on Plug Power in 2004)		(0.25	)
Q2 2005 Operating Earnings per Share	$	0.21
Quarterly adjustment normalize the effective tax rate		(0.05	)
Incremental non-recurring DTE2 project costs		(0.03	)
Mark to market adjustment on 2006 oil price options		0.06
Impact of disallowances from April 2005 MPSC gas order		(0.02	)
Discontinued operations — gain on sale of Southern Missouri Gas Company		(0.01	)
Discontinued operations — adjustment from the sale of Int’l Transmission Co.		0.01
Q2 2005 Reported Earnings per Share	$	0.17

2

DTE Energy Company
Consolidated Statement of Financial Position (Unaudited)

	(Unaudited)
	June 30			December 31
	2005			2004
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents	$	86		$	56
Restricted cash		107			126
Accounts receivable Customer (less allowance for doubtful accounts of $138 and $129, respectively)		1,103			880
Accrued unbilled revenues		232			378
Other		470			383
Inventories
Fuel and gas		517			509
Materials and supplies		153			159
Assets from risk management and trading activities		361			296
Other		237			209
		3,266			2,996
Investments
Nuclear decommissioning trust funds		613			590
Other		563			558
		1,176			1,148
Property
Property, plant and equipment		18,118			18,011
Less accumulated depreciation and depletion		(7,619	)		(7,520	)
		10,499			10,491
Other Assets
Goodwill		2,064			2,067
Regulatory assets		2,132			2,119
Securitized regulatory assets		1,391			1,438
Notes receivable		488			529
Assets from risk management and trading activities		328			125
Prepaid pension assets		185			184
Other		212			200
		6,800			6,662
Total Assets	$	21,741		$	21,297

3

DTE Energy Company
Consolidated Statement of Financial Position (Unaudited)

	(Unaudited)
	June 30			December 31
	2005			2004
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	979		$	892
Accrued interest		117			111
Dividends payable		90			90
Accrued payroll		24			33
Income taxes		—			16
Short-term borrowings		494			403
Gas inventory equalization		116			—
Current portion of long-term debt, including capital leases		885			514
Liabilities from risk management and trading activities		460			369
Other		601			581
		3,766			3,009
Other Liabilities
Deferred income taxes		1,169			1,124
Regulatory liabilities		831			817
Asset retirement obligations		943			916
Unamortized investment tax credit		137			143
Liabilities from risk management and trading activities		450			224
Liabilities from transportation and storage contracts		368			387
Accrued pension liability		313			265
Deferred gains from asset sales		357			414
Minority interest		120			132
Nuclear decommissioning		80			77
Other		774			635
		5,542			5,134
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,122			5,673
Securitization bonds		1,345			1,400
Equity-linked securities		172			178
Trust preferred-linked securities		289			289
Capital lease obligations		61			66
		6,989			7,606
Commitments and Contingencies
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized, 174,159,338 and 174,209,034 shares issued and outstanding, respectively		3,307			3,323
Retained earnings		2,355			2,383
Accumulated other comprehensive loss		(218	)		(158	)
		5,444			5,548
Total Liabilities and Shareholders’ Equity	$	21,741		$	21,297

4

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)

	Six Months Ended
	June 30
	2005			2004
(in Millions)
Operating Activities
Net Income	$	151		$	225
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		424			346
Deferred income taxes		65			112
Gain on sale of interests in synfuel projects		(100	)		(106	)
Loss (gain) on sale of assets, net		3			(24	)
Partners’ share of synfuel project losses		(149	)		(87	)
Contributions from synfuel partners		113			36
Changes in assets and liabilities, exclusive of changes shown separately		172			17
Net cash from operating activities		679			519
Investing Activities
Plant and equipment expenditures — utility		(372	)		(363	)
Plant and equipment expenditures — non-utility		(58	)		(33	)
Proceeds from sale of interests in synfuel projects		145			88
Proceeds from sale of other assets		18			59
Restricted cash for debt redemptions		19			10
Other investments		(56	)		(74	)
Net cash used for investing activities		(304	)		(313	)
Financing Activities
Issuance of long-term debt		395			418
Redemption of long-term debt		(639	)		(565	)
Short-term borrowings, net		91			120
Issuance of common stock		—			21
Repurchase of common stock		(11	)		—
Dividends on common stock		(179	)		(176	)
Other		(2	)		(3	)
Net cash used for financing activities		(345	)		(185	)
Net Increase in Cash and Cash Equivalents		30			21
Cash and Cash Equivalents at Beginning of the Period		56			54
Cash and Cash Equivalents at End of the Period	$	86		$	75

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The Detroit Edison Company
Consolidated Statement of Operations (unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
(in Millions)	2005			2004			2005			2004
Operating Revenues	$	1,035		$	835		$	2,025		$	1,721
Operating Expenses
Fuel and purchased power		343			200			644			416
Operation and maintenance		330			359			651			702
Depreciation and amortization		160			122			310			236
Taxes other than income		63			62			132			130
		896			743			1,737			1,484
Operating Income		139			92			288			237
Other (Income) and Deductions
Interest expense		69			71			133			143
Interest income		—			—			(1	)		—
Other income		(18	)		(15	)		(30	)		(30	)
Other expenses		24			23			42			45
		75			79			144			158
Income Before Income Taxes		64			13			144			79
Income Tax Provision		21			5			46			27
Reported Earnings		43			8			98			52
Adjustments
Stranded Cost adjustment		—			—			—			(7	)
Incremental non-recurring DTE2 project costs		3			2			5			4
Effective tax rate normalization		—			—			—			(1	)
Operating Earnings	$	46		$	10		$	103		$	48

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 10Q.

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Michigan Consolidated Gas Company
Consolidated Statement of Operations (Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
(in Millions)	2005			2004			2005			2004
Operating Revenues	$	261		$	271		$	1,095		$	986
Operating Expenses
Cost of gas		131			161			758			649
Operation and maintenance		96			108			215			205
Depreciation, depletion and amortization		24			26			50			53
Taxes other than income		13			13			26			25
Asset (gains) and losses, net		—			—			48			(2	)
		264			308			1,097			930
Operating Income (Loss)		(3	)		(37	)		(2	)		56
Other (Income) and Deductions
Interest expense		13			13			28			27
Interest income		(3	)		(3	)		(5	)		(5	)
Other		—			—			—			(1	)
		10			10			23			23
Income (Loss) Before Income Taxes		(13	)		(47	)		(25	)		33
Income Tax Provision (Benefit)		37			(10	)		38			—
Reported Earnings		(50	)		(37	)		(63	)		33
Adjustments
Incremental non-recurring DTE2 project costs		2			1			2			3
April 2005 MPSC gas orders		4			—			65			—
Effective tax rate normalization		43			9			51			(7	)
Operating Earnings	$	(1	)	$	(27	)	$	55		$	29

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 10Q.

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DTE Energy Debt/Equity Calculation
As of June 30, 2005
($ millions)

short-term borrowings	$	494
current portion LTD & cap leases		885
long-term debt		5,122
securitization bonds		1,345
capital leases		61
less MichCon short-term debt		—
less securitization debt, including current portion		(1,446	)
Total debt	$	6,461
Trust preferred	$	289
Mandatory convertible		172
Total preferred/ other	$	461
Equity	$	5,444
Total capitalization	$	12,366
Debt		52.3	%
Preferred stock		3.7	%
Common shareholders’ equity		44.0	%
Total		100.0	%

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Sales Analysis — Q2 2005

Electric Sales — Detroit Edison Service Area (GWh)

	Q2 2005			Q2 2004		% Change
Residential		3,766			3,472		8	%
Commercial		3,820			3,049		25	%
Industrial		3,024			2,810		8	%
Other		646			656		-2	%
		11,256			9,987		13	%
Interconnection		1,142	*		1,026		11	%
Choice**		1,996			2,480		-20	%
TOTAL SALES		14,393			13,493		7	%

*	Estimated due to MISO startup
**	Includes Dearborn Industrial Group sales

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

	Q2 2005		Q2 2004		% Change
Residential		338,297		309,485		9	%
Commercial		326,309		257,378		27	%
Industrial		166,384		135,628		23	%
Other		30,730		30,531		1	%
		861,720		733,022		18	%
Interconnection		76,490		39,614		93	%
Choice*		39,180		46,937		-17	%
TOTAL REVENUES		977,390		819,573		19	%

* Distribution charge, includes Dearborn Industrial Group revenues

Gas Sales — MichCon Service Area (Mcf)

	Q2 2005		Q2 2004			% Change
Residential		16,509,131		17,721,665			-7	%
Commercial		5,017,774		5,666,174			-11	%
Industrial		306,601		(947,171	)		n/m
		21,833,506		22,440,668			-3	%
End User Transportation*		32,628,790		29,160,337			12	%
TOTAL SALES		54,462,296		51,601,005			6	%

* Includes choice customers

Gas Revenue — MichCon Service Area ($000s)

	Q2 2005		Q2 2004			% Change
Residential		185,175		146,783			26	%
Commercial		54,235		44,812			21	%
Industrial		3,082		(6,674	)		n/m
		242,492		184,921			31	%
End User Transportation*		27,861		25,136			11	%
TOTAL REVENUES		270,353		210,057			29	%

* Includes choice customers

Weather

Cooling Degree Days

Detroit Edison service area

		Q2 2005			Q2 2004			% Change
Actuals			301			171			76	%
Normal			193			193
Deviation from normal	��		56	%		-11	%

Heating Degree Days

MichCon service area

	Q2 2005			Q2 2004			% Change
Actuals		757			766			-1	%
Normal*		860			888
Deviation from normal		-12	%		-14	%

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

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