Exhibit 99.2
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DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
September 30 | December 31 | |||||||
(in Millions) | 2011 | 2010 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 46 | $ | 65 | ||||
Restricted cash, principally Securitization | 73 | 120 | ||||||
Accounts receivable (less allowance for doubtful accounts of $168 and $196, respectively) | ||||||||
Customer | 1,206 | 1,393 | ||||||
Other | 121 | 402 | ||||||
Inventories | ||||||||
Fuel and gas | 567 | 460 | ||||||
Materials and supplies | 209 | 202 | ||||||
Deferred income taxes | 130 | 139 | ||||||
Derivative assets | 109 | 131 | ||||||
Regulatory assets | 201 | 58 | ||||||
Other | 249 | 197 | ||||||
2,911 | 3,167 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 893 | 939 | ||||||
Other | 527 | 518 | ||||||
1,420 | 1,457 | |||||||
Property | ||||||||
Property, plant and equipment | 22,312 | 21,574 | ||||||
Less accumulated depreciation, depletion and amortization | (8,890 | ) | (8,582 | ) | ||||
13,422 | 12,992 | |||||||
Other Assets | ||||||||
Goodwill | 2,020 | 2,020 | ||||||
Regulatory assets | 3,940 | 4,058 | ||||||
Securitized regulatory assets | 618 | 729 | ||||||
Intangible assets | 74 | 67 | ||||||
Notes receivable | 124 | 123 | ||||||
Derivative assets | 59 | 77 | ||||||
Other | 192 | 206 | ||||||
7,027 | 7,280 | |||||||
Total Assets | $ | 24,780 | $ | 24,896 | ||||
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
September 30 | December 31 | |||||||
(in Millions, Except Shares) | 2011 | 2010 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 708 | $ | 729 | ||||
Accrued interest | 121 | 111 | ||||||
Dividends payable | 99 | 95 | ||||||
Short-term borrowings | 275 | 150 | ||||||
Current portion long-term debt, including capital leases | 247 | 925 | ||||||
Derivative liabilities | 114 | 142 | ||||||
Other | 536 | 597 | ||||||
2,100 | 2,749 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 6,702 | 6,114 | ||||||
Securitization bonds | 479 | 643 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 27 | 43 | ||||||
7,497 | 7,089 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 3,076 | 2,632 | ||||||
Regulatory liabilities | 1,040 | 1,328 | ||||||
Asset retirement obligations | 1,560 | 1,498 | ||||||
Unamortized investment tax credit | 68 | 75 | ||||||
Derivative liabilities | 62 | 110 | ||||||
Liabilities from transportation and storage contracts | 73 | 83 | ||||||
Accrued pension liability | 680 | 866 | ||||||
Accrued postretirement liability | 1,216 | 1,275 | ||||||
Nuclear decommissioning | 141 | 149 | ||||||
Other | 258 | 275 | ||||||
8,174 | 8,291 | |||||||
Commitments and Contingencies | ||||||||
Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 169,250,934 and 169,428,406 shares issued and outstanding, respectively | 3,418 | 3,440 | ||||||
Retained earnings | 3,698 | 3,431 | ||||||
Accumulated other comprehensive loss | (146 | ) | (149 | ) | ||||
Total DTE Energy Company Equity | 6,970 | 6,722 | ||||||
Noncontrolling interests | 39 | 45 | ||||||
Total Equity | 7,009 | 6,767 | ||||||
Total Liabilities and Equity | $ | 24,780 | $ | 24,896 | ||||
DTEEnergy Company
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended | ||||||||
September 30 | ||||||||
(in Millions) | 2011 | 2010 | ||||||
Operating Activities | ||||||||
Net income | $ | 563 | $ | 483 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 752 | 775 | ||||||
Deferred income taxes | 123 | 173 | ||||||
Asset losses, reserves and impairments, net | — | 5 | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | 48 | 73 | ||||||
Net cash from operating activities | 1,486 | 1,509 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (968 | ) | (743 | ) | ||||
Plant and equipment expenditures — non-utility | (61 | ) | (75 | ) | ||||
Proceeds from sale of assets, net | 13 | 28 | ||||||
Restricted cash for debt redemption, principally Securitization | 47 | 33 | ||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 69 | 179 | ||||||
Investment in nuclear decommissioning trust funds | (97 | ) | (204 | ) | ||||
Consolidation of VIEs | — | 19 | ||||||
Investment in Millennium Pipeline Project | — | (49 | ) | |||||
Other | (55 | ) | (22 | ) | ||||
Net cash used for investing activities | (1,052 | ) | (834 | ) | ||||
Financing Activities | ||||||||
Issuance of long-term debt | 908 | 595 | ||||||
Redemption of long-term debt | (1,161 | ) | (660 | ) | ||||
Short-term borrowings, net | 126 | (307 | ) | |||||
Issuance of common stock | — | 26 | ||||||
Repurchase of common stock | (18 | ) | — | |||||
Dividends on common stock | (289 | ) | (265 | ) | ||||
Other | (19 | ) | (32 | ) | ||||
Net cash used for financing activities | (453 | ) | (643 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (19 | ) | 32 | |||||
Cash and Cash Equivalents at Beginning of Period | 65 | 52 | ||||||
Cash and Cash Equivalents at End of Period | $ | 46 | $ | 84 | ||||
The Detroit Edison Company
Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
(in Millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Operating Revenues | $ | 1,517 | $ | 1,444 | $ | 3,949 | $ | 3,798 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel and purchased power | 553 | 484 | 1,348 | 1,217 | ||||||||||||
Operation and maintenance | 352 | 325 | 1,012 | 960 | ||||||||||||
Depreciation and amortization | 215 | 230 | 619 | 644 | ||||||||||||
Taxes other than income | 63 | 54 | 182 | 180 | ||||||||||||
Asset (gains) and losses, net | (1 | ) | — | 13 | (1 | ) | ||||||||||
1,182 | 1,093 | 3,174 | 3,000 | |||||||||||||
Operating Income | 335 | 351 | 775 | 798 | ||||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 74 | 83 | 218 | 241 | ||||||||||||
Interest income | — | (1 | ) | — | (1 | ) | ||||||||||
Other income | (9 | ) | (10 | ) | (30 | ) | (27 | ) | ||||||||
Other expenses | 14 | 6 | 26 | 23 | ||||||||||||
79 | 78 | 214 | 236 | |||||||||||||
Income Before Income Taxes | 256 | 273 | 561 | 562 | ||||||||||||
Income Tax Expense | 98 | 108 | 214 | 219 | ||||||||||||
Net Income | $ | 158 | $ | 165 | $ | 347 | $ | 343 | ||||||||
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
(in Millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Operating Revenues | $ | 156 | $ | 167 | $ | 1,074 | $ | 1,142 | ||||||||
Operating Expenses | ||||||||||||||||
Cost of gas | 35 | 36 | 526 | 575 | ||||||||||||
Operation and maintenance | 91 | 96 | 294 | 271 | ||||||||||||
Depreciation and amortization | 22 | 20 | 66 | 68 | ||||||||||||
Taxes other than income | 11 | 11 | 42 | 42 | ||||||||||||
159 | 163 | 928 | 956 | |||||||||||||
Operating Income (Loss) | (3 | ) | 4 | 146 | 186 | |||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 16 | 17 | 47 | 50 | ||||||||||||
Interest income | (1 | ) | (2 | ) | (5 | ) | (6 | ) | ||||||||
Other income | (2 | ) | (2 | ) | (5 | ) | (5 | ) | ||||||||
Other expenses | 3 | — | 4 | 3 | ||||||||||||
16 | 13 | 41 | 42 | |||||||||||||
Income (Loss) Before Income Taxes | (19 | ) | (9 | ) | 105 | 144 | ||||||||||
Income Tax Expense (Benefit) | (8 | ) | (4 | ) | 37 | 51 | ||||||||||
Net Income (Loss) | $ | (11 | ) | $ | (5 | ) | $ | 68 | $ | 93 | ||||||
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DTE Energy Debt/Equity Calculation
As of September 30, 2011
($ millions)
As of September 30, 2011
($ millions)
Short-term borrowings | $ | 275 | ||
Current portion of long-term debt, including capital leases | 247 | |||
Mortgage bonds, notes and other | 6,702 | |||
Securitization bonds, excluding current portion | 479 | |||
Capital lease obligations | 27 | |||
Other adjustments | 305 | |||
less Securitization bonds, including current portion | (643 | ) | ||
50% Trust preferred-linked securities | 144 | |||
Total debt | 7,536 | |||
50% Trust preferred-linked securities | 144 | |||
Total preferred/ other | 144 | |||
Equity | 6,970 | |||
Total capitalization | $ | 14,650 | ||
Debt | 51 | % | ||
Preferred | 1 | % | ||
Common shareholders’ equity | 48 | % | ||
Total | 100 | % | ||
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Sales Analysis — 3Q 2011
Electric Sales — Detroit Edison Service Area (GWh)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 4,863 | 5,034 | -3 | % | ||||||||
Commercial | 4,759 | 4,730 | 1 | % | ||||||||
Industrial | 2,606 | 2,357 | 11 | % | ||||||||
Other | 782 | 798 | -2 | % | ||||||||
13,010 | 12,919 | 1 | % | |||||||||
Choice | 1,393 | 1,289 | 8 | % | ||||||||
TOTAL SALES | 14,403 | 14,208 | 1 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 665,301 | 653,756 | 2 | % | ||||||||
Commercial | 478,457 | 459,441 | 4 | % | ||||||||
Industrial | 186,946 | 164,850 | 13 | % | ||||||||
Other | 50,035 | 49,605 | 1 | % | ||||||||
1,380,739 | 1,327,652 | 4 | % | |||||||||
Choice | 26,160 | 28,167 | -7 | % | ||||||||
TOTAL REVENUES | 1,406,899 | 1,355,819 | 4 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 7,123 | 6,058 | 18 | % | ||||||||
Commercial | 1,531 | 1,491 | 3 | % | ||||||||
Industrial | 110 | 120 | -8 | % | ||||||||
8,764 | 7,669 | 14 | % | |||||||||
End User Transportation* | 25,722 | 28,469 | -10 | % | ||||||||
TOTAL SALES | 34,486 | 36,138 | -5 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 85,932 | 84,929 | 1 | % | ||||||||
Commercial | 17,442 | 18,719 | -7 | % | ||||||||
Industrial | 886 | 1,092 | -19 | % | ||||||||
104,261 | 104,740 | 0 | % | |||||||||
End User Transportation* | 30,332 | 29,494 | 3 | % | ||||||||
TOTAL REVENUES | 134,593 | 134,235 | 0 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Actuals | 793 | 758 | 5 | % | ||||||||
Normal | 537 | 537 | ||||||||||
Deviation from normal | 48 | % | 41 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Actuals | 142 | 136 | 4 | % | ||||||||
Normal | 128 | 129 | ||||||||||
Deviation from normal | 11 | % | 5 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
3Q 2011 | 3Q 2010 | |||||||
MichCon | 1 | — |
Colder weather increased MichCon’s earnings by $1M Q3 2011
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Sales Analysis — YTD September 30, 2011
Electric Sales — Detroit Edison Service Area (GWh)
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 12,358 | 12,301 | 0 | % | ||||||||
Commercial | 12,750 | 12,660 | 1 | % | ||||||||
Industrial | 7,353 | 7,438 | -1 | % | ||||||||
Other | 2,343 | 2,398 | -2 | % | ||||||||
34,804 | 34,797 | 0 | % | |||||||||
Choice | 4,104 | 3,675 | 12 | % | ||||||||
TOTAL SALES | 38,908 | 38,472 | 1 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 1,679,205 | 1,592,910 | 5 | % | ||||||||
Commercial | 1,283,431 | 1,239,498 | 4 | % | ||||||||
Industrial | 520,634 | 499,546 | 4 | % | ||||||||
Other | 148,199 | 140,063 | 6 | % | ||||||||
3,631,469 | 3,472,017 | 5 | % | |||||||||
Choice | 77,671 | 78,898 | -2 | % | ||||||||
TOTAL REVENUES | 3,709,140 | 3,550,915 | 4 | % | ||||||||
Gas Sales — MichCon Service Area (MMcf)
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 68,913 | 60,460 | 14 | % | ||||||||
Commercial | 17,204 | 16,246 | 6 | % | ||||||||
Industrial | 613 | 449 | 37 | % | ||||||||
86,730 | 77,155 | 12 | % | |||||||||
End User Transportation* | 104,788 | 100,113 | 5 | % | ||||||||
TOTAL SALES | 191,518 | 177,268 | 8 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
�� | ||||||||||||
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 677,691 | 693,160 | -2 | % | ||||||||
Commercial | 162,262 | 181,127 | -10 | % | ||||||||
Industrial | 5,105 | 4,477 | 14 | % | ||||||||
845,058 | 878,764 | -4 | % | |||||||||
End User Transportation* | 154,747 | 142,609 | 9 | % | ||||||||
TOTAL REVENUES | 999,805 | 1,021,373 | -2 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
YTD 2011 | YTD 2010 | % Change | ||||||||||
Actuals | 1,035 | 1,066 | -3 | % | ||||||||
Normal | 730 | 730 | ||||||||||
Deviation from normal | 42 | % | 46 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
YTD 2011 | YTD 2010 | % Change | ||||||||||
Actuals | 4,416 | 3,772 | 17 | % | ||||||||
Normal | 4,144 | 4,197 | ||||||||||
Deviation from normal | 7 | % | -10 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
YTD 2011 | YTD 2010 | |||||||
MichCon | 11 | (11 | ) |
Colder weather increased MichCon’s earnings by $11M YTD 2011
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Detroit Edison Temperature Normal Sales Analysis -
September 30, 2011
September 30, 2011
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
Service Area (GWh)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 4,183 | 4,379 | -4 | % | ||||||||
Commercial | 4,484 | 4,524 | -1 | % | ||||||||
Industrial | 2,577 | 2,337 | 10 | % | ||||||||
Other | 782 | 798 | -2 | % | ||||||||
12,026 | 12,038 | 0 | % | |||||||||
Choice | 1,336 | 1,245 | 7 | % | ||||||||
TOTAL SALES | 13,362 | 13,282 | 1 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (GWh)
Service Area (GWh)
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 11,484 | 11,531 | 0 | % | ||||||||
Commercial | 12,431 | 12,382 | 0 | % | ||||||||
Industrial | 7,320 | 7,408 | -1 | % | ||||||||
Other | 2,343 | 2,398 | -2 | % | ||||||||
33,578 | 33,718 | 0 | % | |||||||||
Choice | 4,036 | 3,614 | 12 | % | ||||||||
TOTAL SALES | 37,614 | 37,332 | 1 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
Service Area (Includes Electric Choice) (GWh)
3Q 2011 | 3Q 2010 | % Change | ||||||||||
Residential | 4,183 | 4,379 | -4 | % | ||||||||
Commercial | 5,364 | 5,407 | -1 | % | ||||||||
Industrial | 3,033 | 2,698 | 12 | % | ||||||||
Other | 782 | 798 | -2 | % | ||||||||
TOTAL SALES | 13,362 | 13,282 | 1 | % | ||||||||
Temperature Normal Electric Sales — Detroit Edison
Service Area (Includes Electric Choice) (GWh)
Service Area (Includes Electric Choice) (GWh)
YTD 2011 | YTD 2010 | % Change | ||||||||||
Residential | 11,485 | 11,531 | 0 | % | ||||||||
Commercial | 14,915 | 14,743 | 1 | % | ||||||||
Industrial | 8,872 | 8,660 | 2 | % | ||||||||
Other | 2,343 | 2,398 | -2 | % | ||||||||
TOTAL SALES | 37,614 | 37,332 | 1 | % | ||||||||