Exhibit 99.2
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DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
June 30 | December 31 | |||||||
(in Millions) | 2010 | 2009 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 124 | $ | 52 | ||||
Restricted cash | 87 | 84 | ||||||
Accounts receivable (less allowance for doubtful accounts of $246 and $262, respectively) | ||||||||
Customer | 1,219 | 1,438 | ||||||
Other | 95 | 217 | ||||||
Inventories | ||||||||
Fuel and gas | 353 | 309 | ||||||
Materials and supplies | 212 | 200 | ||||||
Deferred income taxes | 151 | 167 | ||||||
Derivative assets | 175 | 209 | ||||||
Other | 165 | 201 | ||||||
2,581 | 2,877 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 824 | 817 | ||||||
Other | 428 | 598 | ||||||
1,252 | 1,415 | |||||||
Property | ||||||||
Property, plant and equipment | 21,137 | 20,588 | ||||||
Less accumulated depreciation, depletion and amortization | (8,366 | ) | (8,157 | ) | ||||
12,771 | 12,431 | |||||||
Other Assets | ||||||||
Goodwill | 2,024 | 2,024 | ||||||
Regulatory assets | 4,128 | 4,110 | ||||||
Securitized regulatory assets | 802 | 870 | ||||||
Intangible assets | 58 | 54 | ||||||
Notes receivable | 127 | 113 | ||||||
Derivative assets | 108 | 116 | ||||||
Other | 182 | 185 | ||||||
7,429 | 7,472 | |||||||
Total Assets | $ | 24,033 | $ | 24,195 | ||||
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
June 30 | December 31 | |||||||
(in Millions, Except Shares) | 2010 | 2009 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 684 | $ | 723 | ||||
Accrued interest | 114 | 114 | ||||||
Dividends payable | 89 | 88 | ||||||
Short-term borrowings | — | 327 | ||||||
Current portion long-term debt, including capital leases | 1,335 | 671 | ||||||
Derivative liabilities | 170 | 220 | ||||||
Other | 539 | 502 | ||||||
2,931 | 2,645 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 5,584 | 6,237 | ||||||
Securitization bonds | 717 | 793 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 43 | 51 | ||||||
6,633 | 7,370 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 2,209 | 2,096 | ||||||
Regulatory liabilities | 1,397 | 1,337 | ||||||
Asset retirement obligations | 1,480 | 1,420 | ||||||
Unamortized investment tax credit | 80 | 85 | ||||||
Derivative liabilities | 145 | 198 | ||||||
Liabilities from transportation and storage contracts | 89 | 96 | ||||||
Accrued pension liability | 700 | 881 | ||||||
Accrued postretirement liability | 1,316 | 1,287 | ||||||
Nuclear decommissioning | 138 | 136 | ||||||
Other | 315 | 328 | ||||||
7,869 | 7,864 | |||||||
Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 168,791,973 and 165,400,045 shares issued and outstanding, respectively | 3,405 | 3,257 | ||||||
Retained earnings | 3,305 | 3,168 | ||||||
Accumulated other comprehensive loss | (153 | ) | (147 | ) | ||||
Total DTE Energy Company Equity | 6,557 | 6,278 | ||||||
Noncontrolling interests | 43 | 38 | ||||||
Total Equity | 6,600 | 6,316 | ||||||
Total Liabilities and Equity | $ | 24,033 | $ | 24,195 | ||||
DTEEnergy Company
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended | ||||||||
June 30 | ||||||||
(in Millions) | 2010 | 2009 | ||||||
Operating Activities | ||||||||
Net income | $ | 317 | $ | 263 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 504 | 472 | ||||||
Deferred income taxes | 72 | 88 | ||||||
Other asset (gains), losses and reserves, net | 1 | 3 | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | 257 | 475 | ||||||
Net cash from operating activities | 1,151 | 1,301 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (463 | ) | (581 | ) | ||||
Plant and equipment expenditures — non-utility | (52 | ) | (32 | ) | ||||
Proceeds from sale of other assets, net | 24 | 32 | ||||||
Restricted cash for debt redemption | 1 | 17 | ||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 128 | 182 | ||||||
Investment in nuclear decommissioning trust funds | (145 | ) | (190 | ) | ||||
Consolidation of VIEs | 19 | — | ||||||
Other | (4 | ) | (38 | ) | ||||
Net cash used for investing activities | (492 | ) | (610 | ) | ||||
Financing Activities | ||||||||
Issuance of long-term debt | — | 363 | ||||||
Redemption of long-term debt | (91 | ) | (355 | ) | ||||
Short-term borrowings, net | (327 | ) | (543 | ) | ||||
Issuance of common stock | 23 | 18 | ||||||
Dividends on common stock | (176 | ) | (173 | ) | ||||
Other | (16 | ) | (45 | ) | ||||
Net cash used for financing activities | (587 | ) | (735 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 72 | (44 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 52 | 86 | ||||||
Cash and Cash Equivalents at End of Period | $ | 124 | $ | 42 | ||||
Detroit Edison Company
Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(in Millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Operating Revenues | $ | 1,208 | $ | 1,108 | $ | 2,354 | $ | 2,226 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel and purchased power | 390 | 372 | 733 | 712 | ||||||||||||
Operation and maintenance | 326 | 306 | 635 | 622 | ||||||||||||
Depreciation and amortization | 210 | 197 | 414 | 385 | ||||||||||||
Taxes other than income | 61 | 44 | 126 | 104 | ||||||||||||
Asset gains, net | — | — | (1 | ) | — | |||||||||||
987 | 919 | 1,907 | 1,823 | |||||||||||||
Operating Income | 221 | 189 | 447 | 403 | ||||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 77 | 84 | 158 | 163 | ||||||||||||
Interest income | — | (1 | ) | — | (1 | ) | ||||||||||
Other income | (9 | ) | (10 | ) | (17 | ) | (17 | ) | ||||||||
Other expenses | 11 | (12 | ) | 17 | — | |||||||||||
79 | 61 | 158 | 145 | |||||||||||||
Income Before Income Taxes | 142 | 128 | 289 | 258 | ||||||||||||
Income Tax Provision | 55 | 49 | 111 | 101 | ||||||||||||
Net Income | $ | 87 | $ | 79 | $ | 178 | $ | 157 | ||||||||
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(in Millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Operating Revenues | $ | 230 | $ | 289 | $ | 975 | $ | 1,048 | ||||||||
Operating Expenses | ||||||||||||||||
Cost of gas | 81 | 136 | 539 | 639 | ||||||||||||
Operation and maintenance | 67 | 118 | 175 | 232 | ||||||||||||
Depreciation and amortization | 22 | 27 | 48 | 53 | ||||||||||||
Taxes other than income | 15 | 13 | 31 | 26 | ||||||||||||
Asset gains | — | (1 | ) | — | (1 | ) | ||||||||||
185 | 293 | 793 | 949 | |||||||||||||
Operating Income (Loss) | 45 | (4 | ) | 182 | 99 | |||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 16 | 16 | 33 | 32 | ||||||||||||
Interest income | (2 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Other income | (1 | ) | (2 | ) | (3 | ) | (5 | ) | ||||||||
Other expenses | 2 | 1 | 3 | 4 | ||||||||||||
15 | 13 | 29 | 27 | |||||||||||||
Income (Loss) Before Income Taxes | 30 | (17 | ) | 153 | 72 | |||||||||||
Income Tax Provision (Benefit) | 11 | (5 | ) | 55 | 21 | |||||||||||
Net Income (Loss) | $ | 19 | $ | (12 | ) | $ | 98 | $ | 51 | |||||||
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DTE Energy Debt/Equity Calculation
As of June 30, 2010
($ millions)
As of June 30, 2010
($ millions)
Short-term borrowings | $ | — | ||
Current portion of long-term debt, including capital leases | 1,335 | |||
Mortgage bonds, notes and other | 5,584 | |||
Securitization bonds, excluding current portion | 717 | |||
Capital lease obligations | 43 | |||
less MichCon short-term debt | — | |||
less Securitization bonds, including current portion | (861 | ) | ||
Total debt | 6,818 | |||
Trust preferred-linked securities | 289 | |||
Total preferred/ other | 289 | |||
Equity | 6,557 | |||
Total capitalization | $ | 13,664 | ||
Debt | 49.9 | % | ||
Preferred | 2.1 | % | ||
Common shareholders’ equity | 48.0 | % | ||
Total | 100.0 | % | ||
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Sales Analysis — Q2 2010
Electric Sales — Detroit Edison Service Area (GWh)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 3,602 | 3,147 | 14 | % | ||||||||
Commercial | 3,988 | 4,536 | -12 | % | ||||||||
Industrial | 2,605 | 2,385 | 9 | % | ||||||||
Other | 799 | 782 | 2 | % | ||||||||
10,994 | 10,850 | 1 | % | |||||||||
Choice | 1,283 | 344 | 273 | % | ||||||||
TOTAL SALES | 12,277 | 11,194 | 10 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 471,181 | 383,943 | 23 | % | ||||||||
Commercial | 394,886 | 419,027 | -6 | % | ||||||||
Industrial | 174,018 | 183,181 | -5 | % | ||||||||
Other | 44,701 | 38,109 | 17 | % | ||||||||
1,084,786 | 1,024,260 | 6 | % | |||||||||
Choice | 25,002 | 8,662 | 189 | % | ||||||||
TOTAL REVENUES | 1,109,788 | 1,032,922 | 7 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 11,245 | 14,068 | -20 | % | ||||||||
Commercial | 2,681 | 3,672 | -27 | % | ||||||||
Industrial | 112 | 140 | -20 | % | ||||||||
14,038 | 17,880 | -21 | % | |||||||||
End User Transportation* | 27,691 | 21,436 | 29 | % | ||||||||
TOTAL SALES | 41,729 | 39,316 | 6 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 133,968 | 159,471 | -16 | % | ||||||||
Commercial | 30,511 | 40,820 | -25 | % | ||||||||
Industrial | 1,026 | 1,173 | -13 | % | ||||||||
165,505 | 201,464 | -18 | % | |||||||||
End User Transportation* | 36,122 | 26,897 | 34 | % | ||||||||
TOTAL REVENUES | 201,627 | 228,361 | -12 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
Q2 2010 | Q2 2009 | % Change | ||||||||||
Actuals | 308 | 154 | 100 | % | ||||||||
Normal | 193 | 193 | ||||||||||
Deviation from normal | 60 | % | -20 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
Q2 2010 | Q2 2009 | % Change | ||||||||||
Actuals | 596 | 827 | -28 | % | ||||||||
Normal* | 826 | 865 | ||||||||||
Deviation from normal | -28 | % | -4 | % |
* | Normal is 15 year weather for 2010 and 30 year weather for 2009 |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
Q2 2010 | Q2 2009 | |||||||||
MichCon | (8 | ) | (1 | ) | Milder weather reduced MichCon’s earnings by $8M Q2 2010 |
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Sales Analysis — YTD June 30, 2010
Electric Sales — Detroit Edison Service Area (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 7,268 | 6,885 | 6 | % | ||||||||
Commercial | 7,930 | 8,959 | -11 | % | ||||||||
Industrial | 5,080 | 5,022 | 1 | % | ||||||||
Other | 1,600 | 1,599 | 0 | % | ||||||||
21,878 | 22,465 | -3 | % | |||||||||
Choice | 2,386 | 661 | 261 | % | ||||||||
TOTAL SALES | 24,264 | 23,126 | 5 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 939,154 | 830,966 | 13 | % | ||||||||
Commercial | 780,056 | 829,055 | -6 | % | ||||||||
Industrial | 334,697 | 380,231 | -12 | % | ||||||||
Other | 90,458 | 87,023 | 4 | % | ||||||||
2,144,365 | 2,127,275 | 1 | % | |||||||||
Choice | 50,731 | 19,778 | 157 | % | ||||||||
TOTAL REVENUES | 2,195,096 | 2,147,053 | 2 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 54,402 | 64,259 | -15 | % | ||||||||
Commercial | 14,755 | 20,099 | -27 | % | ||||||||
Industrial | 329 | 735 | -55 | % | ||||||||
69,486 | 85,093 | -18 | % | |||||||||
End User Transportation* | 71,644 | 63,041 | 14 | % | ||||||||
TOTAL SALES | 141,130 | 148,134 | -5 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 608,231 | 646,279 | -6 | % | ||||||||
Commercial | 162,408 | 200,592 | -19 | % | ||||||||
Industrial | 3,385 | 6,266 | 54 | % | ||||||||
774,024 | 853,137 | -9 | % | |||||||||
End User Transportation* | 113,115 | 79,253 | 43 | % | ||||||||
TOTAL REVENUES | 887,139 | 932,390 | -5 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
YTD 2010 | YTD 2009 | % Change | ||||||||||
Actuals | 308 | 154 | 100 | % | ||||||||
Normal | 193 | 193 | ||||||||||
Deviation from normal | 60 | % | -20 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
YTD 2010 | YTD 2009 | % Change | ||||||||||
Actuals | 3,636 | 4,224 | -14 | % | ||||||||
Normal* | 4,055 | 4,171 | ||||||||||
Deviation from normal | -10 | % | 1 | % |
* | Normal is 15 year weather for 2010 and 30 year weather for 2009 |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
YTD 2010 | YTD 2009 | |||||||||
MichCon | (16 | ) | 2 | Milder weather reduced MichCon’s earnings by $16M YTD 2010 |
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Detroit Edison Temperature Normal Sales Analysis -
June 30, 2010
June 30, 2010
Temperature Normal Electric Sales — Detroit Edison Service Area (GWh)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 3,390 | 3,346 | 1 | % | ||||||||
Commercial | 3,909 | 4,606 | -15 | % | ||||||||
Industrial | 2,596 | 2,417 | 7 | % | ||||||||
Other | 799 | 783 | 2 | % | ||||||||
10,693 | 11,153 | -4 | % | |||||||||
Choice | 1,265 | 348 | 264 | % | ||||||||
TOTAL SALES | 11,959 | 11,501 | 4 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison Service Area (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 7,152 | 7,053 | 1 | % | ||||||||
Commercial | 7,858 | 9,019 | -13 | % | ||||||||
Industrial | 5,071 | 5,046 | 0 | % | ||||||||
Other | 1,600 | 1,600 | 0 | % | ||||||||
21,681 | 22,719 | -5 | % | |||||||||
Choice | 2,369 | 665 | 256 | % | ||||||||
TOTAL SALES | 24,050 | 23,384 | 3 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison Service Area (Includes Electric Choice) (GWh)
Q2 2010 | Q2 2009 | % Change | ||||||||||
Residential | 3,390 | 3,346 | 1 | % | ||||||||
Commercial | 4,617 | 4,932 | -6 | % | ||||||||
Industrial | 3,153 | 2,440 | 29 | % | ||||||||
Other | 799 | 783 | 2 | % | ||||||||
TOTAL SALES | 11,959 | 11,501 | 4 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison Service Area (Includes Electric Choice) (GWh)
YTD 2010 | YTD 2009 | % Change | ||||||||||
Residential | 7,152 | 7,053 | 1 | % | ||||||||
Commercial | 9,336 | 9,790 | -5 | % | ||||||||
Industrial | 5,962 | 4,940 | 21 | % | ||||||||
Other | 1,600 | 1,600 | 0 | % | ||||||||
TOTAL SALES | 24,050 | 23,384 | 3 | % | ||||||||
DTE Energy Company
Consolidated Statements of Operations (Unaudited)
(Reconciliation of Reported to Operating Earnings)
Consolidated Statements of Operations (Unaudited)
(Reconciliation of Reported to Operating Earnings)
Three Months Ended June 30, 2010 | ||||||||||||
Reported | Operating | Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | $ | 1,792 | $ | — | $ | 1,792 | ||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 608 | 608 | ||||||||||
Operation and maintenance | 597 | 32 | 629 | |||||||||
Depreciation, depletion and amortization | 253 | 253 | ||||||||||
Taxes other than income | 80 | 80 | ||||||||||
Gain on sale of non-utility assets | — | — | ||||||||||
Other asset (gains) and losses, reserves and impairments, net | (2 | ) | (2 | ) | ||||||||
1,536 | 32 | 1,568 | ||||||||||
Operating Income | 256 | (32 | ) | 224 | ||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 136 | 136 | ||||||||||
Interest income | (3 | ) | (3 | ) | ||||||||
Other income | (23 | ) | (23 | ) | ||||||||
Other expenses | 15 | 15 | ||||||||||
125 | — | 125 | ||||||||||
Income Before Income Taxes | 131 | (32 | ) | 99 | ||||||||
Income Tax Provision | 44 | (12 | ) | 32 | ||||||||
Income from Continuing Operations | 87 | (20 | ) | 67 | ||||||||
Discontinued Operations Income, net of tax | — | — | ||||||||||
Net Income | 87 | (20 | ) | 67 | ||||||||
Less: Net Income Attributable to the Noncontrolling Interests | 1 | 1 | ||||||||||
Net Income Attributable to DTE Energy Company | $ | 86 | $ | (20 | ) | $ | 66 | |||||
DTE Energy Company
Consolidated Statements of Operations (Unaudited)
(Reconciliation of Reported to Operating Earnings)
Consolidated Statements of Operations (Unaudited)
(Reconciliation of Reported to Operating Earnings)
Six Months Ended June 30, 2010 | ||||||||||||
Reported | Operating | Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | $ | 4,245 | $ | — | $ | 4,245 | ||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 1,603 | 1,603 | ||||||||||
Operation and maintenance | 1,249 | 32 | 1,281 | |||||||||
Depreciation, depletion and amortization | 504 | 504 | ||||||||||
Taxes other than income | 162 | 162 | ||||||||||
Gain on sale of non-utility assets | — | — | ||||||||||
Other asset (gains) and losses, reserves and impairments, net | (1 | ) | (1 | ) | ||||||||
3,517 | 32 | 3,549 | ||||||||||
Operating Income | 728 | (32 | ) | 696 | ||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 276 | 276 | ||||||||||
Interest income | (6 | ) | (6 | ) | ||||||||
Other income | (42 | ) | (42 | ) | ||||||||
Other expenses | 23 | 23 | ||||||||||
251 | — | 251 | ||||||||||
Income Before Income Taxes | 477 | (32 | ) | 445 | ||||||||
Income Tax Provision | 160 | (12 | ) | 148 | ||||||||
Income from Continuing Operations | 317 | (20 | ) | 297 | ||||||||
Discontinued Operations Income, net of tax | — | — | ||||||||||
Net Income | 317 | (20 | ) | 297 | ||||||||
Less: Net Income Attributable to the Noncontrolling Interests | 2 | 2 | ||||||||||
Net Income Attributable to DTE Energy Company | $ | 315 | $ | (20 | ) | $ | 295 | |||||