DTE Energy (DTE) 10-Q 29 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	DTE ENERGY CO
Entity Central Index Key	0000936340
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$7,483,638,580
Entity Common Stock, Shares Outstanding	167,794,587

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Consolidated Statement of Operations (Unaudited) [Abstract]
Operating Revenues	$2,453	$2,255
Operating Expenses
Fuel, purchased power and gas	995	960
Operation and maintenance	652	591
Depreciation, depletion and amortization	251	232
Taxes other than income	82	80
Other asset (gains) and losses, reserves and impairments, net	1	(3)
Total operating expenses	1,981	1,860
Operating Income	472	395
Other (Income) and Deductions
Interest expense	140	132
Interest income	(3)	(3)
Other income	(19)	(24)
Other expenses	8	14
Total Other (Income) and Deductions	126	119
Income Before Income Taxes	346	276
Income Tax Provision	116	97
Net income	230	179
Less: Net Income Attributable to Noncontrolling Interests	1	1
Net Income Attributable to DTE Energy Company	$229	$178
Basic Earnings per Common Share
Net Income Attributable to DTE Energy Company	1.38	1.09
Diluted Earnings Per Common Share
Net Income Attributable to DTE Energy Company	1.38	1.09
Weighted Average Common Shares Outstanding
Basic	166	163
Diluted	166	163
Dividends Declared per Common Share	0.53	0.53

Consolidated Statements of Fina

Consolidated Statements of Financial Position (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current Assets
Cash and cash equivalents	$193	$52
Restricted cash	39	84
Accounts receivable (less allowance for doubtful accounts of $263 and $262, respectively)
Customer	1,403	1,438
Other	60	217
Inventories
Fuel and gas	233	309
Materials and supplies	210	200
Deferred income taxes	163	167
Derivative assets	265	209
Other	167	201
Total Current Assets	2,733	2,877
Investments
Nuclear decommissioning trust funds	859	817
Other	477	598
Total Investments	1,336	1,415
Property
Property, plant and equipment	20,924	20,588
Less accumulated depreciation, depletion and amortization	(8,270)	(8,157)
Property, plant and equipment, net	12,654	12,431
Other Assets
Goodwill	2,024	2,024
Regulatory assets	4,099	4,110
Securitized regulatory assets	835	870
Intangible assets	54	54
Notes receivable	130	113
Derivative assets	150	116
Other	188	185
Total Noncurrent Assets	7,480	7,472
Total Assets	24,203	24,195
Current Liabilities
Accounts payable	637	723
Accrued interest	148	114
Dividends payable	88	88
Short-term borrowings	0	327
Gas inventory equalization	190	0
Current portion long-term debt, including capital leases	677	671
Derivative liabilities	239	220
Other	503	502
Total Current Liabilities	2,482	2,645
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other	6,242	6,237
Securitization bonds	717	793
Trust preferred-linked securities	289	289
Capital lease obligations	47	51
Total Long-Term Debt (net of current portion)	7,295	7,370
Other Liabilities
Deferred income taxes	2,191	2,096
Regulatory liabilities	1,362	1,337
Asset retirement obligations	1,456	1,420
Unamortized investment tax credit	82	85
Derivative liabilities	184	198
Liabilities from transportation and storage contracts	92	96
Accrued pension liability	699	881
Accrued postretirement liability	1,338	1,287
Nuclear decommissioning	142	136
Other	285	328
Total Noncurrent Liabilities	7,831	7,864
Commitments and Contingencies (Notes 7 and 12)
Equity
Common stock, without par value, 400,000,000 shares authorized, 168,409,616 and 165,400,045 shares issued and outstanding, respectively	3,388	3,257
Retained earnings	3,309	3,168
Accumulated other comprehensive loss	(146)	(147)
Total DTE Energy Company Equity	6,551	6,278
Noncontrolling interests	44	38
Total Equity	6,595	6,316
Total Liabilities and Equity	$24,203	$24,195

1_Consolidated Statements of Fi

Consolidated Statements of Financial Position (Unaudited) (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Current Assets
Allowance for doubtful accounts	$263	$262
Equity
Common stock, without par value	0	0
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	168,409,616	165,400,045
Common stock, shares outstanding	168,409,616	165,400,045

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating Activities
Net income	$230	$179
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization	251	232
Deferred income taxes	36	66
Other asset (gains), losses and reserves, net	1	(3)
Changes in assets and liabilities, exclusive of changes shown separately (Note 15)	299	365
Net cash from operating activities	817	839
Investing Activities
Plant and equipment expenditures - utility	(209)	(303)
Plant and equipment expenditures - non-utility	(30)	(23)
Proceeds from sale of other assets, net	13	30
Restricted cash for debt redemption	49	64
Proceeds from sale of nuclear decommissioning trust fund assets	59	113
Investment in nuclear decommissioning trust funds	(68)	(113)
Consolidation of VIEs	19
Other	(4)	(24)
Net cash from (used) for investing activities	(171)	(256)
Financing Activities
Redemption of long-term debt	(90)	(86)
Short-term borrowings, net	(327)	(414)
Issuance of common stock	9	9
Dividends on common stock	(88)	(86)
Other	(9)	(4)
Net cash used for financing activities	(505)	(581)
Net Increase in Cash and Cash Equivalents	141	2
Cash and Cash Equivalents at Beginning of Period	52	86
Cash and Cash Equivalents at End of Period	$193	$88

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders Equity and Comprehensive Income (Unaudited) (USD $)
In Millions, except Share data	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interest	Total
Beginning Balance, shares at Dec. 31, 2009	165,400,000				165,400,045
Beginning Balance at Dec. 31, 2009	$3,257	$3,168	($147)	$38	$6,316
Net income		229		1	230
Benefit obligations, net of tax			12		12
Dividends declared on common stock		(88)			(88)
Issuance of common stock	9				9
Issuance of common stock, shares	204,000
Contribution of common stock to pension plan	100				100
Contribution of common stock to pension plan, shares	2,224,000
Net change in unrealized losses on derivatives, net of tax			2		2
Net change in unrealized losses on investments, net of tax			(13)		(13)
Stock-based compensation and other	22			5	27
Stock-based compensation and other, shares	582,000
Ending Balance at Mar. 31, 2010	$3,388	$3,309	($146)	$44	$6,595
Ending Balance, shares at Mar. 31, 2010	168,410,000				168,409,616

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net income	$230	$179
Benefit obligations:
Benefit obligation, net of taxes of $1 and $1	2	3
Amounts reclassified to benefit obligations related to consolidation of VIEs (Note 1), net of taxes of $5 and $-	10
Total Benefit obligations	12	3
Net unrealized gains (losses) on derivatives:
Gains (losses) during the period, net of taxes of $- and $2	1	3
Amounts reclassified to income, net of taxes of $- and $-	1	(1)
Net unrealized gains (losses) on derivatives	2	2
Net unrealized gains (losses) on investments:
Gains (losses) during the period, net of taxes of $(1) and $1	(3)	3
Amounts reclassified to benefit obligations related to consolidation of VIEs (Note 1), net of taxes of $(5) and $-	(10)
Net unrealized gains (losses) on investments	(13)	3
Comprehensive income	231	187
Less: Comprehensive income (loss) attributable to noncontrolling interests	1	1
Comprehensive income attributable to DTE Energy Company	$230	$186

2_Consolidated Statements of Co

Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Benefit obligations:
Tax effect on benefit obligation	$1	$1
Amounts reclassified to benefit obligations related to consolidation of VIEs	5
Net unrealized gains (losses) on derivatives:
Tax effect on gains (losses) during the period		2
Net unrealized gains (losses) on investments:
Tax effect on gains (losses) during the period	(1)	1
Amounts reclassified to benefit obligations related to consolidation of VIEs	($5)

Organization and Basis of Prese

Organization and Basis of Presentation
	3 Months Ended Mar. 31, 2010
Organization and Basis of Presentation [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1 ORGANIZATION AND BASIS OF PRESENTATION Corporate Structure DTE Energy owns the following businesses: Detroit Edison, an electric utility engaged in the generation, purchase, distribution and sale of electric energy to approximately 2.1million customers in southeast Michigan; MichCon, a natural gas utility engaged in the purchase, storage, transmission, distribution and sale of natural gas to approximately 1.2million customers throughout Michigan; and Other segments involved in (1)natural gas pipelines and storage; (2)unconventional gas project development and production; (3)power and industrial projects and coal transportation and marketing; and (4)energy marketing and trading operations. Detroit Edison and MichCon are regulated by the MPSC. Certain activities of Detroit Edison and MichCon, as well as various other aspects of businesses under DTE Energy are regulated by the FERC. In addition, the Company is regulated by other federal and state regulatory agencies including the NRC, the EPA and MDEQ. References in this report to Company or DTE are to DTE Energy and its subsidiaries, collectively. Basis of Presentation These Consolidated Financial Statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the 2009 Annual Report on Form 10-K. The accompanying Consolidated Financial Statements are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Companys estimates. The Consolidated Financial Statements are unaudited, but in our opinion include all adjustments necessary for a fair presentation of such financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December31, 2010. Principles of Consolidation Variable Interest Entity (VIE) As discussed in Note 3, effective January1, 2010, we adopted the provisions of ASU 2009-17, Amendments to FASB Interpretation 46(R). ASU 2009-17 changed the methodology for determining the primary beneficiary of a VIE from a quantitative risk and rewards-based model to a qualitative determination. There is no grandfathering of previous consolidation conclusions. As a result, the Company re-evaluated all prior VIE and primary beneficiary determinations. The requirements of ASU 2009-17 were adopted on a prospective basis. The Company evaluates whether an entity is a VIE whenever reconsideration events occur. We consolidate VIEs for which we are the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing th

Significant Accounting Policies

Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Intangible Assets The Company has certain intangible assets relating to emission allowances and non-utility contracts. Emission allowances are charged to fuel expense as the allowances are consumed in the operation of the business. Our intangible assets related to emission allowances were $9million at March31, 2010 and December31, 2009. The gross carrying amount and accumulated amortization of contract intangible assets at March31, 2010 were $65million and $20million, respectively. The gross carrying amount and accumulated amortization of intangible assets at December31, 2009 were $64million and $19million, respectively. Income Taxes The Companys effective tax rate from continuing operations for the three months ended March31, 2010 was 34percent as compared to 35percent for the three months ended March31, 2009. The Company had $7million of unrecognized tax benefits at March31, 2010 and at December31, 2009 that, if recognized, would favorably impact its effective tax rate. The Company believes that it is reasonably possible that there will be a decrease in unrecognized tax benefits of up to $2 million within the next twelve months. Offsetting Amounts Related to Certain Contracts The Company offsets the fair value of derivative instruments with cash collateral received or paid for those derivative instruments executed with the same counterparty under a master netting agreement, which reduces both the Companys total assets and total liabilities. As of March31, 2010, the total cash collateral posted, net of cash collateral received, was $125million. Derivative assets and derivative liabilities are shown net of collateral of $35million and $161 million, respectively. At March31, 2010, $1million of cash collateral received not related to unrealized derivative positions was included in accounts payable.

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
New Accounting Pronouncements [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NOTE 3 NEW ACCOUNTING PRONOUNCEMENTS Variable Interest Entity In June2009, the FASB issued ASU 2009-17, Amendments to FASB Interpretation 46(R). This standard amends the consolidation guidance that applies to VIEs and affects the overall consolidation analysis under ASC 810-10, Consolidation. The amendments to the consolidation guidance affect all entities and enterprises currently within the scope of ASC 810-10, as well as qualifying special purpose entities that are currently outside the scope of ASC 810-10. Accordingly, the Company reconsidered its previous ASC 810-10 conclusions, including (1)whether an entity is a VIE, (2)whether the enterprise is the VIEs primary beneficiary, and (3)what type of financial statement disclosures are required. ASU 2009-17 is effective as of the beginning of the first fiscal year that begins after November15, 2009. The Company adopted the standard as of January1, 2010. The adoption of the standard resulted in the consolidation of certain entities within the Power and Industrial Projects segment where the investments in such entities were previously accounted for under the equity method. See Note 1. Fair Value Measurements and Disclosures In January2010, the FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 requires details of transfers in and out of Level 1 and 2 fair value measurements and the gross presentation of activity within the Level 3 fair value measurement roll forward. The new disclosures are required of all entities that are required to provide disclosures about recurring and nonrecurring fair value measurements. The Company adopted ASU 2010-06 effective January1, 2010, except for the gross presentation of the Level 3 fair value measurement roll forward which is effective for annual reporting periods beginning after December15, 2010 and for interim reporting periods within those years.

Fair Value

Fair Value
	3 Months Ended Mar. 31, 2010
Fair Value [Abstract]
FAIR VALUE	NOTE 4 FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Company and its counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which is immaterial for the three months ended March31, 2010 and the year ended December31, 2009. The Company believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Company classifies fair value balances based on the fair value hierarchy defined as follows: Level 1 Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Level 2 Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints. The following table presents assets and liabilities measured and recorded at fair value on a recurring basis as of March31, 2010: Netting Net Balance at Level 1 Level 2 Level 3 Adjustments(2)

Financial and Other Derivative

Financial and Other Derivative Instruments
	3 Months Ended Mar. 31, 2010
Financial and Other Derivative Instruments [Abstract]
FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS	NOTE 5 FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS The Company recognizes all derivatives on the Consolidated Statements of Financial Position at their fair value unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge), or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in Accumulated other comprehensive income and later reclassified into earnings when the underlying transaction occurs. For fair value hedges, changes in fair values for the derivative are recognized in earnings each period. Gains and losses from the ineffective portion of any hedge are recognized in earnings immediately. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period. The Companys primary market risk exposure is associated with commodity prices, credit, interest rates and foreign currency exchange. The Company has risk management policies to monitor and manage market risks. The Company uses derivative instruments to manage some of the exposure. The Company uses derivative instruments for trading purposes in its Energy Trading segment and the coal marketing activities of its Power and Industrial Projects segment. Contracts classified as derivative instruments include power, gas, oil and certain coal forwards, futures, options and swaps, and foreign currency exchange contracts. Items not classified as derivatives include proprietary gas inventory, gas storage and transportation arrangements, and gas and oil reserves. Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities on the Consolidated Statements of Financial Position. Electric Utility Detroit Edison generates, purchases, distributes and sells electricity. Detroit Edison uses forward energy and capacity contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and sales exemption and are therefore accounted for under the accrual method. Other derivative contracts are recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities, until realized. Gas Utility MichCon purchases, stores, transports and distributes natural gas and sells storage and transportation capacity. MichCon has fixed-priced contracts for portions of its expected gas supply requirements through 2013. These gas-supply contracts are designated and qualify for the normal purchases and sales exemption and are therefore accounted for under the accrual method. MichCon may also sell forward transportation and storage capacity contra

Asset Retirement Obligations

Asset Retirement Obligations
	3 Months Ended Mar. 31, 2010
Asset Retirement Obligations [Abstract]
ASSET RETIREMENT OBLIGATIONS	NOTE 6 ASSET RETIREMENT OBLIGATIONS A reconciliation of the asset retirement obligations for the three months ended March31, 2010 follows: (in Millions) Asset retirement obligations at January1, 2010 $ 1,439 Accretion 23 Liabilities incurred 9 Liabilities settled (1 ) Consolidation of VIEs 4 Asset retirement obligations at March31, 2010 1,474 Less amount included in current liabilities (18 ) $ 1,456 Substantially all of the asset retirement obligations represent nuclear decommissioning liabilities that are funded through a surcharge to electric customers over the life of the Fermi 2 nuclear plant.

Regulatory Matters

Regulatory Matters
	3 Months Ended Mar. 31, 2010
Regulatory Matters [Abstract]
REGULATORY MATTERS	NOTE 7 REGULATORY MATTERS Energy Optimization Plans In March2009, Detroit Edison and MichCon filed Energy Optimization Plans with the MPSC as required under 2008 PA 295. The Energy Optimization Plan applications are designed to help each customer class reduce their electric and gas usage by: (1)building customer awareness of energy efficiency options and (2)offering a diverse set of programs and participation options that result in energy savings for each customer class. In March2010, Detroit Edison and MichCon filed amended Energy Optimization Plans with the MPSC. Detroit Edisons amended Energy Optimization Plan application proposed the recovery of energy optimization expenditures for the period 2010-2015 of $406million and further requests approval of surcharges that are designed to recover these costs. MichCons Energy Optimization Plan proposed energy optimization expenditures for the period 2010-2015 of $150 million and further requests approval of surcharges that are designed to recover these costs. In April2010, Detroit Edison and MichCon filed their 2009 Energy Optimization reconciliations. These filings reconcile 2009 actual Energy Optimization billed revenues with 2009 actual Energy Optimization costs by rate class. Any 2009 over/under recovery of costs have been carried forward and reflected as part of each utilitys March2010 amended Energy Optimization filing. Also addressed in these filings is the effectiveness of the 2009 Energy Optimization programs relative to legislative targets for energy savings and the calculation of the 2009 performance incentive for each utility based on meeting or exceeding legislative targets. Detroit Edison Uncollectible Expense True-Up Mechanism (UETM) In March2010, Detroit Edison filed an application with the MPSC for approval of its UETM for 2009 requesting recovery of approximately $4.5million consisting of costs related to 2009 uncollectible expense and associated carrying charges. Power Supply Cost Recovery Proceedings The PSCR process is designed to allow us to recover all of our power supply costs if incurred under reasonable and prudent policies and practices. Our power supply costs include fuel costs, purchased and net interchange power costs, nitrogen oxide and sulfur dioxide emission allowances costs, transmission costs and MISO costs. The MPSC reviews these costs, policies and practices for prudence in annual plan and reconciliation filings. The following table summarizes Detroit Edisons PSCR reconciliation filing currently pending with the MPSC: PSCR Cost of Description of Net PSCR Year Date Filed Net Over-recovery Power Sold Over-recovery 2009 March2010 $15.6million $1.1billion The total amount reflects an over-recovery of $10.9million, plus $4.7million in accrued interest due to customers 2009 Gas Rate Case Filing MichCon filed a general rate case on June9, 2009 based on a 2008 historical test year. The filing with the MPSC requested a $193million, or 11.5percent average increase in MichCons annual revenues for a 2010 projected test year. The requested $193million increase in revenues is

Common Stock

Common Stock
	3 Months Ended Mar. 31, 2010
Common Stock [Abstract]
COMMON STOCK	NOTE 8 COMMON STOCK In March2010, the Company contributed $100million of DTE Energy common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust. The common stock was contributed over four business days from March26, 2010 through March31, 2010 and was valued using the closing market prices of DTE Energy common stock on each of those days in accordance with fair value measurement and accounting requirements.

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 9 EARNINGS PER SHARE The Company reports both basic and diluted earnings per share. The calculation of diluted earnings per share assumes the issuance of potentially dilutive common shares outstanding during the period from the exercise of stock options. A reconciliation of both calculations is presented in the following table as of March31: (in Millions, except per share amounts) 2010 2009 Basic Earnings per Share Net income attributable to DTE Energy $ 229 $ 178 Average number of common shares outstanding 166 163 Weighted average net restricted shares outstanding 1 1 Dividends declared common shares $ 88 $ 86 Dividends declared net restricted shares Total distributed earnings $ 88 $ 86 Net income less distributed earnings $ 141 $ 92 Distributed (dividends per common share) $ .53 $ .53 Undistributed $ .85 $ .56 Total Basic Earnings per Common Share $ 1.38 $ 1.09 Diluted Earnings per Share Net income attributable to DTE Energy $ 229 $ 178 Average number of common shares outstanding 166 163 Average incremental shares from assumed exercise of options Common shares for dilutive calculation 166 163 Weighted average net restricted shares outstanding 1 1 Dividends declared common shares $ 88 $ 86 Dividends declared net restricted shares Total distributed earnings $ 88 $ 86 Net income less distributed earnings $ 141 $ 92 Distributed (dividends per common share) $ .53 $ .53 Undistributed $ .85 $ .56 Total Diluted Earnings per Common Share $ 1.38 $ 1.09 Options to purchase approximately 2million and 4million shares of common stock as of March31, 2010 and 2009, respectively, were not included in the computation of diluted earnings per share because the options exercise price was greater than the average market price of the common shares, thus making these options anti-dilutive.

Long-Term Debt

Long-Term Debt
	3 Months Ended Mar. 31, 2010
Long-Term Debt [Abstract]
LONG-TERM DEBT	NOTE 10 LONG-TERM DEBT In March2010, Detroit Edison agreed to issue and sell $300million of 4.89%, 10-year Senior Notes to a group of institutional investors in a private placement transaction. The notes are expected to close and fund in September2010 with proceeds used to repay a portion of Detroit Edisons 6.125% Senior Notes due October2010.

Short-Term Credit Arrangements

Short-Term Credit Arrangements and Borrowings
	3 Months Ended Mar. 31, 2010
Short-Term Credit Arrangements and Borrowings [Abstract]
SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS	NOTE 11 SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS DTE Energy and its wholly owned subsidiaries, Detroit Edison and MichCon, have entered into revolving credit facilities with similar terms. The five-year and two-year revolving credit facilities are with a syndicate of 22 banks and may be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies commercial paper programs. No one bank provides more than 8.5% of the commitment in any facility. Borrowings under the facilities are available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance. The above agreements require the Company to maintain a total funded debt to capitalization ratio, as defined in the agreements, of no more than 0.65 to 1. At March31, 2010, the debt to total capitalization ratios for DTE Energy, Detroit Edison and MichCon are 0.50 to 1, 0.51 to 1 and 0.47 to 1, respectively, and are in compliance with this financial covenant. The availability under these combined facilities at March31, 2010 is shown in the following table: (in Millions) DTE Energy Detroit Edison MichCon Total One-year unsecured letter of credit facility, expiring June2010 $ 70 $ $ $ 70 Five-year unsecured revolving facility, expiring October2010 675 69 181 925 Two-year unsecured revolving facility, expiring April2011 538 212 250 1,000 Two-year unsecured letter of credit facility, expiring in May 2011 50 50 Total credit facilities at March31, 2010 $ 1,333 $ 281 $ 431 $ 2,045 Amounts outstanding at March31, 2010: Commercial paper issuances Letters of credit 269 269 269 269 Net availability at March31, 2010 $ 1,064 $ 281 $ 431 $ 1,776 The Company has other outstanding letters of credit which are not included in the above described facilities totaling approximately $18million which are used for various corporate purposes. In conjunction with maintaining certain exchange traded risk management positions, the Company may be required to post cash collateral with its clearing agent. The Company has a demand financing agreement for up to $120million with its clearing agent. The amount outstanding under this agreement was $81million and $1million at March31, 2010 and December31, 2009, respectively.

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 COMMITMENTS AND CONTINGENCIES Environmental Electric Utility Air Detroit Edison is subject to EPA ozone transport and acid rain regulations that limit power plant emissions of sulfur dioxide and nitrogen oxides. Since 2005, EPA and the State of Michigan have issued additional emission reduction regulations relating to ozone, fine particulate, regional haze and mercury air pollution. The new rules will lead to additional controls on fossil-fueled power plants to reduce nitrogen oxide, sulfur dioxide and mercury emissions. To comply with these requirements, Detroit Edison has spent approximately $1.5billion through 2009. The Company estimates Detroit Edison will make future undiscounted capital expenditures of up to $73million in 2010 and up to $2.2billion of additional capital expenditures through 2019 based on current regulations. Further, additional rulemakings are expected over the next few years which could require additional controls for sulfur dioxide, nitrogen oxides and hazardous air pollutants. It is not possible to quantify the impact of those expected rulemakings at this time. In July2009, DTE Energy received a Notice of Violation/Finding of Violation (NOV/FOV) from the EPA alleging, among other things, that five Detroit Edison power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and Title V operating permit requirements under the Clean Air Act. We believe that the plants identified by the EPA have complied with applicable regulations. Depending upon the outcome of our discussions with the EPA regarding the NOV/FOV, the EPA could bring legal action against Detroit Edison. We could also be required to install additional pollution control equipment at some or all of the power plants in question, engage in Supplemental Environmental Programs, and/or pay fines. We cannot predict the financial impact or outcome of this matter, or the timing of its resolution. Water In response to an EPA regulation, Detroit Edison is required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. Based on the results of completed studies and expected future studies, Detroit Edison may be required to install additional control technologies to reduce the impacts of the water intakes. Initially, it was estimated that Detroit Edison could incur up to approximately $55million over the four to six years subsequent to 2008 in additional capital expenditures to comply with these requirements. However, a January2007 circuit court decision remanded back to the EPA several provisions of the federal regulation that has resulted in a delay in compliance dates. The decision also raised the possibility that Detroit Edison may have to install cooling towers at some facilities at a cost substantially greater than was initially estimated for other mitigative technologies. In 2008, the Supreme Court agreed to review the remanded cost-benefit analysis provision of the rule and in April2009 upheld EPAs use of this provision in determining best technology available for reducing environmental impacts. Concurrently,

Retirement Benefits and Trustee

Retirement Benefits and Trusteed Assets
	3 Months Ended Mar. 31, 2010
Retirement Benefits and Trusteed Assets [Abstract]
RETIREMENT BENEFITS AND TRUSTEED ASSETS	NOTE 13 RETIREMENT BENEFITS AND TRUSTEED ASSETS The following details the components of net periodic benefit costs for pension benefits and other postretirement benefits: Other Postretirement (in Millions) Pension Benefits Benefits Three Months Ended March 31 2010 2009 2010 2009 Service cost $ 16 $ 13 $ 16 $ 16 Interest cost 50 51 31 34 Expected return on plan assets (64 ) (64 ) (18 ) (14 ) Amortization of: Net actuarial loss 25 13 13 17 Prior service cost 1 1 (1 ) (2 ) Net transition liability 1 1 Net periodic benefit cost $ 28 $ 14 $ 42 $ 52 Pension and other Postretirement Contributions The Company contributed $200million to its pension plans during the first quarter of 2010, including a contribution of DTE Energy stock of $100million (consisting of approximately 2.2 million shares valued at an average price of $44.97 per share). The Company expects to contribute $150million to its postretirement medical and life insurance benefit plans during 2010. No contributions were made to the plans in the first quarter of 2010. Healthcare Legislation In March2010, the Patient Protection and Affordable Care Act (PPACA)and the Health Care and Education Reconciliation Act (HCERA)were enacted into law (collectively, the Act). The Act is a comprehensive health care reform bill. A provision of the PPACA repeals the current rule permitting deduction of the portion of the drug coverage expense that is offset by the Medicare PartD subsidy, effective for taxable years beginning after December31, 2012. DTE Energys retiree healthcare plan includes the provision of postretirement prescription drug coverage (coverage) which is included in the calculation of the recorded other postemployment benefit (OPEB)obligation. Because the Companys coverage meets certain criteria, DTE Energy is eligible to receive the Medicare PartD subsidy. With the enactment of the Act, the subsidy will continue to not be subject to tax, but an equal amount of prescription drug coverage expenditures will not be deductible. Income tax accounting rules require the impact of a change in tax law be recognized in continuing operations in the Consolidated Statements of Operations in the period that the tax law change is enacted. For DTE Energy and its utilities this change in tax law required a remeasurement of the Deferred Tax Asset related to the OPEB obligation and the Deferred Tax Liability related to the OPEB Regulatory Asset. The net impact of the remeasurement is $23million, $18million and $4million for DTE Energy, Detroit Edison and MichCon, respectively. The Detroit Edison and MichCon amounts have been deferred as Regulatory Assets as the traditional rate setting process allows for the recovery of income tax costs. Income tax expense of $1million is being recognized related to Corporate entities in the three months ended March31, 2010.

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended Mar. 31, 2010
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	NOTE 14 STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense of $15million and $1million, with an associated tax benefit of $6million and $0.4million for the three months ended March31, 2010 and 2009, respectively. Stock-based compensation cost capitalized in property, plant and equipment was $1million and $0.2million during the three months ended March31, 2010 and 2009, respectively. Stock Options The following table summarizes our stock option activity for the three months ended March31, 2010: (in Millions) Weighted Aggregate Number of Average Intrinsic Options Exercise Price Value Options outstanding at January1, 2010 5,593,392 $ 40.50 Granted 611,500 $ 43.95 Exercised (315,483 ) $ 35.97 Forfeited or expired (84,437 ) $ 43.95 Options outstanding at March31, 2010 5,804,972 $ 36.43 $ 18.5 Options exercisable at March31, 2010 4,390,513 $ 42.24 $ 9.4 As of March31, 2010, the weighted average remaining contractual life for the exercisable shares was 4.57years. As of March31, 2010, 1,414,459 options were non-vested. During the three months ended March31, 2010, 600,256 options vested. The weighted average grant date fair value of options granted during the three months ended March 31, 2010 was $5.62 per share. The intrinsic value of options exercised for the three months ended March31, 2010 was $2.77million. Total option expense recognized was $1.7million and $1.5million for the three months ended March31, 2010 and 2009, respectively. The Company determined the fair value for these options at the date of grant using a Black-Scholes based option pricing model and the following assumptions: Three Months Ended March 31, 2010 March 31, 2009 Risk-free interest rate 2.91 % 2.04 % Dividend yield 5.08 % 4.98 % Expected volatility 22.96 % 27.88 % Expected life 6 years 6 years Restricted Stock Awards The following summarizes stock awards activity for the three months ended March31, 2010: Weighted Average Restricted Grant Date Stock Fair Value Balance at January1, 2010 1,024,765 $ 37.11 Grants 225,955 $ 43.95 Forfeitures (2,467 ) $ 35.45 Vested and issued (354,619 ) $ 36.93 Balance at March31, 2010 893,634 $ 38.91 Performance Share Awards The following summarizes performance share activity for the three months ended March31, 2010: Performance Shares Balance at January1, 2010 1,455,042 Grants 560,273 Forfeitures (12,562 ) Payouts (406,821 ) Balance at March31, 2010 1,595,932 Unrecognized Compensation Cost As of March31, 2010, the Company had $69million of total unrecognized compensation cost related to non-vested stock incentive plan arrange

3_Consolidated Statements of Ca

Consolidated Statements of Cash Flows
	3 Months Ended Mar. 31, 2010
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 15 SUPPLEMENTAL CASH FLOW INFORMATION The following provides detail of the changes in assets and liabilities that are reported in the Consolidated Statements of Cash Flows, and supplementary non-cash information: Three Months Ended March 31 (in Millions) 2010 2009 Changes in Assets and Liabilities, Exclusive of Changes Shown Separately Accounts receivable, net $ 114 $ 119 Accrued GCR revenue (18 ) 7 Inventories 88 106 Accrued/prepaid pensions (100 ) (52 ) Accounts payable (47 ) (113 ) Accrued PSCR refund (3 ) 75 Income taxes payable 79 31 Derivative assets and liabilities (86 ) (18 ) Gas inventory equalization 190 220 Postretirement obligation 39 (28 ) Other assets 54 124 Other liabilities (11 ) (106 ) $ 299 $ 365 Noncash financing activities: Common stock issued for employee benefit plans $ 124 $ 7

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information [Abstract]
SEGMENT INFORMATION	NOTE 16 SEGMENT INFORMATION The Company sets strategic goals, allocates resources and evaluates performance based on the following structure: Electric Utility segment consists of Detroit Edison, which is engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1million residential, commercial and industrial customers in southeastern Michigan. Gas Utility segment consists of MichCon and Citizens. MichCon is engaged in the purchase, storage, transmission, gathering, distribution and sale of natural gas to approximately 1.2million residential, commercial and industrial customers throughout Michigan. Citizens distributes natural gas in Adrian, Michigan to approximately 17,000 customers. Gas Storage and Pipelines consists of natural gas pipelines and storage businesses. Unconventional Gas Production is engaged in unconventional gas project development and production. Power and Industrial Projects is comprised of coke batteries and pulverized coal projects, reduced emission fuel and steel industry fuel-related projects, on-site energy services, power generation and coal transportation and marketing. Energy Trading consists of energy marketing and trading operations. Corporate Other, includes various holding company activities, holds certain non-utility debt and energy-related investments. The federal income tax provisions or benefits of DTE Energys subsidiaries are determined on an individual company basis and recognize the tax benefit of production tax credits and net operating losses if applicable. The Michigan Business Tax provision of the utility subsidiaries is determined on an individual company basis and recognizes the tax benefit of various tax credits and net operating losses if applicable. The subsidiaries record federal and state income taxes payable to or receivable from DTE Energy based on the federal and state tax provisions of each company. Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of power sales, gas sales and coal transportation services in the following segments: Three Months Ended March 31 (in Millions) 2010 2009 Electric Utility $ 6 $ 6 Gas Utility 1 1 Gas Storage and Pipelines 2 2 Power and Industrial Projects 1 4 Energy Trading 26 32 Corporate Other (21 ) (23 ) $ 15 $ 22 Financial data of the business segments follows: Three Months Ended March 31 (in Millions) 2010 2009 Operating Revenues Electric Utility $ 1,146 $ 1,118 Gas Utility 755 771 Gas Storage and Pipelines 21 22 Unconventional Gas Production 8 7 Power and Industrial Projects 252 155 Energy Trading 286 204 Corporate Other Reconciliation Eliminations (15 ) (22 ) Total $ 2,453 $ 2,255 Net Income (Loss) Attributable to