EXHIBIT 99.2
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 71 | $ | 65 | |||
Restricted cash, principally Securitization | 64 | 122 | |||||
Accounts receivable (less allowance for doubtful accounts of $67 and $62, respectively) | |||||||
Customer | 1,239 | 1,336 | |||||
Other | 81 | 126 | |||||
Inventories | |||||||
Fuel and gas | 467 | 527 | |||||
Materials and supplies | 258 | 234 | |||||
Deferred income taxes | — | 21 | |||||
Derivative assets | 72 | 108 | |||||
Regulatory assets | 49 | 182 | |||||
Other | 248 | 194 | |||||
2,549 | 2,915 | ||||||
Investments | |||||||
Nuclear decommissioning trust funds | 1,139 | 1,037 | |||||
Other | 584 | 554 | |||||
1,723 | 1,591 | ||||||
Property | |||||||
Property, plant and equipment | 24,795 | 23,631 | |||||
Less accumulated depreciation, depletion and amortization | (9,284 | ) | (8,947 | ) | |||
15,511 | 14,684 | ||||||
Other Assets | |||||||
Goodwill | 2,018 | 2,018 | |||||
Regulatory assets | 3,700 | 4,235 | |||||
Securitized regulatory assets | 280 | 413 | |||||
Intangible assets | 122 | 135 | |||||
Notes receivable | 104 | 112 | |||||
Derivative assets | 26 | 39 | |||||
Other | 198 | 197 | |||||
6,448 | 7,149 | ||||||
Total Assets | $ | 26,231 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions, except shares) | |||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 866 | $ | 848 | |||
Accrued interest | 114 | 93 | |||||
Dividends payable | 116 | 107 | |||||
Short-term borrowings | 271 | 240 | |||||
Current portion long-term debt, including capital leases | 896 | 817 | |||||
Derivative liabilities | 58 | 125 | |||||
Regulatory liabilities | 230 | 89 | |||||
Other | 457 | 449 | |||||
3,008 | 2,768 | ||||||
Long-Term Debt (net of current portion) | |||||||
Mortgage bonds, notes and other | 6,253 | 6,220 | |||||
Securitization bonds | 105 | 302 | |||||
Junior subordinated debentures | 480 | 480 | |||||
Capital lease obligations | 8 | 12 | |||||
6,846 | 7,014 | ||||||
Other Liabilities | |||||||
Deferred income taxes | 3,290 | 3,191 | |||||
Regulatory liabilities | 907 | 1,031 | |||||
Asset retirement obligations | 1,800 | 1,719 | |||||
Unamortized investment tax credit | 49 | 56 | |||||
Derivative liabilities | 21 | 26 | |||||
Accrued pension liability | 1,254 | 1,498 | |||||
Accrued postretirement liability | 684 | 1,160 | |||||
Nuclear decommissioning | 172 | 159 | |||||
Other | 290 | 306 | |||||
8,467 | 9,146 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, without par value, 400,000,000 shares authorized, 176,797,248 and 172,351,680 shares issued and outstanding, respectively | 3,885 | 3,587 | |||||
Retained earnings | 4,142 | 3,944 | |||||
Accumulated other comprehensive loss | (151 | ) | (158 | ) | |||
Total DTE Energy Company Equity | 7,876 | 7,373 | |||||
Noncontrolling interests | 34 | 38 | |||||
Total Equity | 7,910 | 7,411 | |||||
Total Liabilities and Equity | $ | 26,231 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
(In millions) | |||||||
Operating Activities | |||||||
Net income | $ | 542 | $ | 535 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation, depletion and amortization | 811 | 747 | |||||
Nuclear fuel amortization | 25 | 25 | |||||
Allowance for equity funds used during construction | (10 | ) | (10 | ) | |||
Deferred income taxes | 162 | 96 | |||||
Asset (gains) and losses, reserves and impairments, net | (5 | ) | (7 | ) | |||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 177 | 237 | |||||
Inventories | 35 | 5 | |||||
Accounts payable | (16 | ) | (35 | ) | |||
Derivative assets and liabilities | (23 | ) | 38 | ||||
Accrued pension obligation | (44 | ) | (3 | ) | |||
Accrued postretirement obligation | (191 | ) | (143 | ) | |||
Regulatory assets and liabilities | 327 | 286 | |||||
Other assets | (62 | ) | (2 | ) | |||
Other liabilities | (13 | ) | (40 | ) | |||
Net cash from operating activities | 1,715 | 1,729 | |||||
Investing Activities | |||||||
Plant and equipment expenditures — utility | (1,101 | ) | (1,008 | ) | |||
Plant and equipment expenditures — non-utility | (270 | ) | (214 | ) | |||
Proceeds from sale of assets | 20 | 20 | |||||
Restricted cash for debt redemption, principally Securitization | 58 | 55 | |||||
Proceeds from sale of nuclear decommissioning trust fund assets | 40 | 48 | |||||
Investment in nuclear decommissioning trust funds | (52 | ) | (61 | ) | |||
Other | (32 | ) | (24 | ) | |||
Net cash used for investing activities | (1,337 | ) | (1,184 | ) | |||
Financing Activities | |||||||
Issuance of long-term debt | 768 | 495 | |||||
Redemption of long-term debt | (855 | ) | (447 | ) | |||
Short-term borrowings, net | 31 | (321 | ) | ||||
Issuance of common stock | 29 | 29 | |||||
Dividends on common stock | (329 | ) | (300 | ) | |||
Other | (16 | ) | (10 | ) | |||
Net cash used for financing activities | (372 | ) | (554 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 6 | (9 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 65 | 68 | |||||
Cash and Cash Equivalents at End of Period | $ | 71 | $ | 59 |
DTE Electric Company
Consolidated Statements of Operations (Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | $ | 1,457 | $ | 1,542 | $ | 3,941 | $ | 4,029 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 487 | 543 | 1,294 | 1,348 | |||||||||||
Operation and maintenance | 335 | 337 | 1,009 | 1,026 | |||||||||||
Depreciation and amortization | 233 | 219 | 666 | 607 | |||||||||||
Taxes other than income | 67 | 65 | 200 | 193 | |||||||||||
Asset (gains) losses and reserves, net | (3 | ) | — | (3 | ) | (1 | ) | ||||||||
1,119 | 1,164 | 3,166 | 3,173 | ||||||||||||
Operating Income | 338 | 378 | 775 | 856 | |||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 68 | 70 | 202 | 204 | |||||||||||
Other income | (14 | ) | (14 | ) | (38 | ) | (41 | ) | |||||||
Other expenses | 7 | 12 | 19 | 27 | |||||||||||
61 | 68 | 183 | 190 | ||||||||||||
Income Before Income Taxes | 277 | 310 | 592 | 666 | |||||||||||
Income Tax Expense | 97 | 115 | 206 | 247 | |||||||||||
Net Income | $ | 180 | $ | 195 | $ | 386 | $ | 419 |
DTE Gas Company
Consolidated Statements of Operations (Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | $ | 158 | $ | 157 | $ | 995 | $ | 867 | |||||||
Operating Expenses | |||||||||||||||
Cost of gas | 27 | 20 | 397 | 350 | |||||||||||
Operation and maintenance | 104 | 88 | 312 | 282 | |||||||||||
Depreciation and amortization | 23 | 23 | 70 | 69 | |||||||||||
Taxes other than income | 12 | 10 | 43 | 41 | |||||||||||
166 | 141 | 822 | 742 | ||||||||||||
Operating Income (Loss) | (8 | ) | 16 | 173 | 125 | ||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 14 | 14 | 43 | 43 | |||||||||||
Interest income | (2 | ) | (2 | ) | (5 | ) | (5 | ) | |||||||
Other income | (2 | ) | (2 | ) | (6 | ) | (7 | ) | |||||||
Other expenses | 1 | 1 | 2 | 3 | |||||||||||
11 | 11 | 34 | 34 | ||||||||||||
Income (Loss) Before Income Taxes | (19 | ) | 5 | 139 | 91 | ||||||||||
Income Tax Expense (Benefit) | (7 | ) | 2 | 49 | 32 | ||||||||||
Net Income (Loss) | $ | (12 | ) | $ | 3 | $ | 90 | $ | 59 |
DTE Energy Debt/Equity Calculation
As of September 30, 2013
($ millions)
Short-term borrowings | $ | 271 | |
Current portion of long-term debt, including capital leases | 896 | ||
Mortgage bonds, notes and other | 6,253 | ||
Securitization bonds, excluding current portion | 105 | ||
Capital lease obligations | 8 | ||
Other adjustments | 99 | ||
less Securitization bonds, including current portion | (302 | ) | |
50% Junior Subordinated Debentures | 240 | ||
Total debt | 7,570 | ||
50% Junior Subordinated Debentures | 240 | ||
Common equity | 7,910 | ||
Total adjusted equity | 8,150 | ||
Total capitalization | $ | 15,720 | |
Debt | 48.2 | % | |
Adjusted equity | 51.8 | % | |
Total | 100 | % |
Sales Analysis - Q3 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
Q3 2013 | Q3 2012 | % Change | Q3 2013 | Q3 2012 | % Change | |||||||||||||||
Residential | 4,401 | 4,893 | (10 | )% | Residential | $ | 672,902 | $ | 736,043 | (9 | )% | |||||||||
Commercial | 4,504 | 4,601 | (2 | )% | Commercial | 508,522 | 515,457 | (1 | )% | |||||||||||
Industrial | 2,635 | 2,707 | (3 | )% | Industrial | 203,606 | 206,142 | (1 | )% | |||||||||||
Other | 233 | 238 | (2 | )% | Other | 27,685 | 26,907 | 3 | % | |||||||||||
11,773 | 12,439 | (5 | )% | $ | 1,412,715 | $ | 1,484,549 | (5 | )% | |||||||||||
Choice | 1,393 | 1,372 | 2 | % | Choice | 25,789 | 23,684 | 9 | % | |||||||||||
TOTAL SALES | 13,166 | 13,811 | (5 | )% | TOTAL REVENUES | $ | 1,438,504 | $ | 1,508,233 | (5 | )% |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
Q3 2013 | Q3 2012 | % Change | Q3 2013 | Q3 2012 | % Change | |||||||||||||||
Residential | 8,671 | 5,943 | 46 | % | Residential | $ | 86,918 | $ | 76,382 | 14 | % | |||||||||
Commercial | 1,297 | 1,250 | 4 | % | Commercial | 14,625 | 14,532 | 1 | % | |||||||||||
Industrial | 113 | 90 | 26 | % | Industrial | 817 | 716 | 14 | % | |||||||||||
10,081 | 7,283 | 38 | % | $ | 102,360 | $ | 91,630 | 12 | % | |||||||||||
End User Transportation* | 23,924 | 32,991 | (27 | )% | End User Transportation* | 31,865 | 33,733 | (6 | )% | |||||||||||
TOTAL SALES | 34,005 | 40,274 | (16 | )% | TOTAL REVENUES | $ | 134,225 | $ | 125,363 | 7 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
Q3 2013 | Q3 2012 | % Change | Q3 2013 | Q3 2012 | % Change | |||||||||||||
Actuals | 583 | 768 | (24 | )% | Actuals | 143 | 144 | (1 | )% | |||||||||
Normal | 580 | 537 | Normal | 122 | 125 | |||||||||||||
Deviation from normal | 1 | % | 43 | % | Deviation from normal | 17 | % | 15 | % |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
Q3 2013 | Q3 2012 | ||||||
DTE Electric | $ | — | $ | 40 | |||
DTE Gas | 1 | 1 | |||||
Sales Analysis - YTD September 30, 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 11,600 | 12,180 | (5 | )% | Residential | $ | 1,784,071 | $ | 1,823,316 | (2 | )% | |||||||||
Commercial | 12,585 | 12,734 | (1 | )% | Commercial | 1,427,270 | 1,435,902 | (1 | )% | |||||||||||
Industrial | 7,746 | 7,645 | 1 | % | Industrial | 600,844 | 596,550 | 1 | % | |||||||||||
Other | 701 | 717 | (2 | )% | Other | 81,019 | 79,710 | 2 | % | |||||||||||
32,632 | 33,276 | (2 | )% | $ | 3,893,204 | $ | 3,935,478 | (1 | )% | |||||||||||
Choice | 3,940 | 3,938 | — | % | Choice | 73,031 | 68,309 | 7 | % | |||||||||||
TOTAL SALES | 36,572 | 37,214 | (2 | )% | TOTAL REVENUES | $ | 3,966,235 | $ | 4,003,787 | (1 | )% |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 68,420 | 54,005 | 27 | % | Residential | $ | 594,449 | $ | 516,496 | 15 | % | |||||||||
Commercial | 14,980 | 12,296 | 22 | % | Commercial | 127,767 | 110,741 | 15 | % | |||||||||||
Industrial | 415 | 719 | (42 | )% | Industrial | 3,092 | 5,676 | (46 | )% | |||||||||||
83,815 | 67,020 | 25 | % | $ | 725,308 | $ | 632,913 | 15 | % | |||||||||||
End User Transportation* | 111,531 | 114,808 | (3 | )% | End User Transportation* | 161,663 | 146,496 | 10 | % | |||||||||||
TOTAL SALES | 195,346 | 181,828 | 7 | % | TOTAL REVENUES | $ | 886,971 | $ | 779,409 | 14 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Actuals | 846 | 1,114 | (24 | )% | Actuals | 4,189 | 3,322 | 26 | % | |||||||||
Normal | 795 | 730 | Normal | 4,020 | 4,131 | |||||||||||||
Deviation from normal | 6 | % | 53 | % | Deviation from normal | 4 | % | (20 | )% |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
YTD 2013 | YTD 2012 | ||||||
DTE Electric | $ | (1 | ) | $ | 50 | ||
DTE Gas | 8 | (25 | ) | ||||
DTE Electric Temperature Normal Sales Analysis - YTD September 30, 2013 | ||||||||||||||||||
Temperature Normal Electric Sales - DTE Electric Service Area (GWh) | Temperature Normal Electric Sales - DTE Electric Service Area (Includes Electric Choice) (GWh) | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Residential | 11,666 | 11,478 | 2 | % | Residential | 11,666 | 11,479 | 2 | % | |||||||||
Commercial | 12,610 | 12,331 | 2 | % | Commercial | 14,945 | 14,621 | 2 | % | |||||||||
Industrial | 7,747 | 7,603 | 2 | % | Industrial | 9,355 | 9,163 | 2 | % | |||||||||
Other | 702 | 717 | (2 | )% | Other | 702 | 717 | (2 | )% | |||||||||
32,725 | 32,129 | 2 | % | TOTAL SALES | 36,668 | 35,980 | 2 | % | ||||||||||
Choice | 3,943 | 3,851 | 2 | % | ||||||||||||||
TOTAL SALES | 36,668 | 35,980 | 2 | % |