DTE Energy (DTE) 8-K Dte Energy Reports 2004 Earnings, Maintains Earnings Guidance for 2005

EXHIBIT 99.2

DTE Energy Company
Net Income Summary (Preliminary/Unaudited)

	Three Months Ended December 31
	2004									2003
	Reported						Operating			Reported						Operating
(in Millions)	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Energy Resources
Utility – Power Generation	$	11		$	28	A	$	39		$	103		$	(21	)A	$	82
Non-utility
Synfuels		48			—			48			48			—			48
Coke Batteries		1			—			1			2			—			2
On Site Energy Projects		5			—			5			3			—			3
Power Generation		(3	)		—			(3	)		(4	)		—			(4	)
Coal Services		5			—			5			1			—			1
Biomass Energy		2			—			2			2			—			2
Energy Trading & CoEnergy Portfolio		30			—			30			(7	)		—			(7	)
Energy Resources Overheads/Development		(13	)		—			(13	)		(5	)		—			(5	)
Total Non-utility		75			—			75			40			—			40
		86			28			114			143			(21	)		122
Energy Distribution
Utility – Power Distribution.		25			1	B		26			2			—			2
Non-utility		(4	)		—			(4	)		(3	)		—			(3	)
		21			1			22			(1	)		—			(1	)
Energy Gas
Utility – Gas Distribution		42			1	B		43			22			—			22
Non-utility		7			—			7			4			—			4
		49			1			50			26			—			26
Corporate and Other
Energy Technology Investments		(3	)		—			(3	)		—			—			—
Other Holding Company		(35	)		14	C		(21	)		61			(70	)C		(9	)
		(38	)		14			(24	)		61			(70	)		(9	)
Discontinued Operations
Income from operations		—			—			—			—			—			—
Impairment loss/Gain on sale.		(5	)		5	D		—			—			—			—
		(5	)		5			—			—			—			—
Cumulative Effect of Accounting Changes
Asset retirement obligations.		—			—			—			—			—			—
Energy trading activities		—			—			—			—			—			—
		—			—			—			—			—			—
Net Income	$	113		$	49		$	162		$	229		$	(91	)	$	138

Adjustments key
A)	Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
B)	DTE2 project costs	Incremental DTE2 project costs
C)	Tax credit driven normalization	Quarterly adjustment at DTE Energy to normalize its effective tax rate. Annual results not impacted
D)	Gain on sale of ITC	Gain or a related adjustment from the sale of International Transmission Company

Page 1

DTE Energy Company
Net Income Summary (Preliminary/Unaudited)

	Twelve Months Ended December 31
	2004									2003
	Reported						Operating			Reported						Operating
(in Millions)	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Energy Resources
Utility — Power Generation	$	62		$	21	A	$	85		$	235		$	(21	)A	$	230
					2	B								16	F
Non-utility
Synfuels		198			—			198			197			—			197
Coke Batteries		9			—			9			(7	)		—			(7	)
On Site Energy Projects		23			—			23			9			—			9
Power Generation		(18	)		—			(18	)		4			—			4
Coal Services		12			—			12			8			—			8
Biomass Energy		5			—			5			6			—			6
Energy Trading & CoEnergy Portfolio		92			(48	)C		44			45			(16	)G		29
Energy Resources Overheads/Development		(40	)		—			(40	)		(20	)		—			(20	)
Total Non-utility		281			(48	)		233			242			(16	)		226
		343			(25	)		318			477			(21	)		456
Energy Distribution
Utility — Power Distribution.		88			5	B		93			17			14	H		31
Non-utility		(19	)		—			(19	)		(15	)		—			(15	)
		69			5			74			2			14			16
Energy Gas
Utility — Gas Distribution		20			4	B		24			29			17	I		46
Non-utility		21			—			21			29			—			29
		41			4			45			58			17			75
Corporate and Other
Energy Technology Investments		6			—			6			(9	)		—			(9	)
Other Holding Company		(16	)		—			(16	)		(48	)		10	J		(38	)
		(10	)					(10	)		(57	)		10			(47	)
Discontinued Operations
Income from operations		—			—			—			5			(5	)K		—
Impairment loss/Gain on sale		(7	)		7	D	—			—			—			—
		(5	)		5	E		—			63			(63	)E		—
		(12	)		12			—			68			(68	)		—
Cumulative Effect of Accounting Changes
Asset retirement obligations		—			—			—			(11	)		11	L		—
Energy trading activities		—			—			—			(16	)		16	M		—
		—			—			—			(27	)		27			—
Net Income	$	431		$	(4	)	$	427		$	521		$	(21	)	$	500

Adjustments key
A)	Stranded cost adjustment	Stranded costs adjustment made pursuant to November 2004 MPSC order
B)	DTE2 project costs	Incremental DTE2 project costs
C)	Adjustment for contract termination / modification	Terminated a long-term gas exchange agreement and modified a related transportation agreement with a pipeline company
D)	Impairment loss / Discontinued operations	Impairment charge relating to the expected loss on sale of Southern Missouri Gas Company
E)	Gain on sale of ITC	Gain or a related adjustment from the sale of International Transmission Company
F)	Blackout Costs	Costs associated with the August 2003 Blackout
G)	Adjustment of EITF 98-10 accounting change	Flowback of the cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10
H)	Loss on sale of steam heating business	Sold Detroit Edison steam heating business
I)	Disallowance of gas costs	Reserve for the potential disallowance of MichCon 2002 gas procurement costs
J)	Contribution to DTE Energy Foundation	Used a portion of International Transmission Company sale proceeds to fund the DTE Energy Foundation
K)	Adjustment for discontinued operations	Sold International Transmission Company
L)	Asset retirement obligations	Cumulative effect of a change in accounting principle from adoption of SFAS 143
M)	Adjustment of EITF 98-10 accounting change	Cumulative effect of a change in accounting principle from rescission of EITF Issue No. 98-10

Page 2

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
Earnings Variance Analysis (Preliminary/Unaudited)

2003 Reported Earnings per Share	$	3.09
Stranded costs pursuant to Nov. 2004 MPSC order		(0.12	)
Costs associated with August 2003 blackout		0.10
Accounting change related to rescission of EITF 98-10		(0.10	)
Loss on sale of Detroit Edison steam heating business		0.08
Reserve for potential disallowance of MichCon 2002 gas costs		0.10
Contribution to DTE Energy Foundation		0.06
Discontinuted operations — International Transmission Company (ITC)		(0.03	)
Gain or related adjustment from the sale of ITC		(0.37	)
Cumulative effect of accounting change — SFAS 143		0.07
Cumulative effect of accounting change — rescission of EITF 98-10		0.09
2003 Operating Earnings per Share	$	2.97
Regulated Electric
Weather		(0.09	)
Choice Lost Margin		(0.51	)
Net Rate Relief		0.14
Regulatory Deferrals		0.18
Pension/Health Care		(0.16	)
Other		(0.03	)
Regulated Gas
Weather		(0.06	)
Uncollectables		(0.08	)
Interim rate relief		0.03
Pension/Health Care		(0.03	)
Other		0.01
Non-Regulated
Synfuels		0.01
Coke Batteries		0.09
On-Site Projects		0.08
Power Generation		(0.14	)
Energy Trading & CoEnergy Portfolio		0.09
Energy Technology Investments		0.09
Overheads and other		(0.14	)
Holding Company & Share Dilution		0.01
2004 Operating Earnings per Share	$	2.46
Stranded costs pursuant to Nov. 2004 MPSC order		(0.12	)
Incremental DTE2 project costs		(0.06	)
Terminated a long-term gas exchange agreement with a pipeline company		0.27
Impairment charge related to expected loss on sale of So. Missouri Gas Co.		(0.04	)
Gain or related adjustment from the sale of ITC		(0.02	)
2004 Reported Earnings per Share	$	2.49

Page 3

DTE Energy Company
Consolidated Statement of Financial Position (UNAUDITED)

	December 31
	2004			2003
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents	$	56		$	54
Restricted cash		126			131
Accounts receivable Customer (less allowance for doubtful accounts of $129 and $99, respectively)		880			877
Accrued unbilled revenues		378			316
Other		383			338
Inventories
Fuel and gas		509			467
Materials and supplies		159			162
Assets from risk management and trading activities		296			186
Other		209			181
		2,996			2,712
Investments
Nuclear decommissioning trust funds		590			518
Other		558			601
		1,148			1,119
Property
Property, plant and equipment		18,011			17,679
Less accumulated depreciation and depletion		(7,520	)		(7,355	)
		10,491			10,324
Other Assets
Goodwill		2,067			2,067
Regulatory assets		2,119			2,063
Securitized regulatory assets		1,438			1,527
Notes receivable		529			469
Assets from risk management and trading activities		125			88
Prepaid pension assets		184			181
Other		200			203
		6,662			6,598
Total Assets	$	21,297		$	20,753

     

Page 4

DTE Energy Company
Consolidated Statement of Financial Position (UNAUDITED)

	December 31
	2004			2003
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	836		$	625
Accrued interest		111			110
Dividends payable		90			87
Accrued payroll		33			51
Income taxes		16			185
Short-term borrowings		403			370
Current portion long-term debt, including capital leases		692			477
Liabilities from risk management and trading activities		369			326
Other		637			593
		3,187			2,824
Other Liabilities
Deferred income taxes		1,124			988
Regulatory liabilities		817			817
Asset retirement obligations		916			866
Unamortized investment tax credit		143			156
Liabilities from risk management and trading activities		224			173
Liabilities from transportation and storage contracts		387			495
Accrued pension liability		265			345
Deferred gains from asset sales		414			311
Minority interest		132			156
Nuclear decommissioning		78			67
Other		634			599
		5,134			4,973
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other		5,495			5,624
Securitization bonds		1,400			1,496
Equity-linked securities		178			185
Trust preferred-linked securities		289			289
Capital lease obligations		66			75
		7,428			7,669
Commitments and Contingencies
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized,174,209,034 and 168,606,522 shares issued and outstanding, respectively		3,323			3,109
Retained earnings		2,383			2,308
Accumulated other comprehensive loss		(158	)		(130	)
		5,548			5,287
Total Liabilities and Shareholders’ Equity	$	21,297		$	20,753

     

Page 5

DTEEnergy Company
Consolidated Statement of Cash Flows (UNAUDITED)

	Year Ended December 31
	2004			2003
(in Millions)
Operating Activities
Net income	$	431		$	521
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization		744			691
Deferred income taxes		129			(220	)
Gain on sale of interests in synfuel projects		(219	)		(83	)
Gain on sale of ITC and other assets, net		(17	)		(145	)
Partners’ share of synfuel project losses		(223	)		(78	)
Contributions from synfuel partners		141			65
Cumulative effect of accounting changes		—			27
Changes in assets and liabilities, exclusive of changes shown separately		9			172
Net cash from operating activities		995			950
Investing Activities
Plant and equipment expenditures — utility		(815	)		(679	)
Plant and equipment expenditures — non-utility		(89	)		(72	)
Investment in joint ventures		(36	)		(34	)
Proceeds from sale of interests in synfuel projects		221			89
Proceeds from sale of ITC and other assets		104			669
Restricted cash for debt redemptions		5			106
Other investments		(71	)		(69	)
Net cash from (used for) investing activities		(681	)		10
Financing Activities
Issuance of long-term debt		736			527
Redemption of long-term debt		(759	)		(1,208	)
Short-term borrowings, net		33			(44	)
Issuance of common stock		41			44
Dividends on common stock		(354	)		(346	)
Other		(9	)		(12	)
Net cash used for financing activities		(312	)		(1,039	)
Net Increase (Decrease) in Cash and Cash Equivalents		2			(79	)
Cash and Cash Equivalents at Beginning of Period		54			133
Cash and Cash Equivalents at End of Period	$	56		$	54

     

Page 6

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)

	Year ended
	December 31
(in Millions)	2004			2003
Operating Revenues	$	3,568		$	3,695
Operating Expenses
Fuel and purchased power		885			939
Operation and maintenance		1,395			1,332
Depreciation and amortization		523			473
Taxes other than income		249			257
Asset gains and losses, net		(1	)		20
		3,051			3,021
Operating Income		517			674
Other (Income) and Deductions
Interest expense		280			284
Interest income		—			(7	)
Other, net		23			—
		303			277
Income Before Income Taxes		214			397
Income Tax Provision		64			145
Income Before Accounting Change		150			252
Cumulative Effect of Accounting Change		—			(6	)
Reported Earnings		150			246
Cumulative Effect of Accounting Changes
Asset Retirement Obligations (FAS 143)		—			6
Unusual Items
Stranded Cost adjustment		21			(21	)
DTE2 Capitalized costs		7			—
August 2003 Blackout Costs		—			16
Loss on Sale of Steam Heating Business		—			14
Operating Earnings	$	178		$	261
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and Form 10Q

Page 7

Michigan Consolidated Gas Company
Consolidated Statement of Operations (unaudited)

	Year ended
	December 31
(in Millions)	2004			2003
Operating Revenues	$	1,645		$	1,492
Operating Expenses
Cost of gas		1,044			888
Operation and maintenance		387			349
Depreciation, depletion and amortization		108			105
Taxes other than income		48			52
Asset gains and losses, net		(2	)		8
		1,585			1,402
Operating Income		60			90
Other (Income) and Deductions
Interest expense		57			57
Interest income		(9	)		(10	)
Other, net		(2	)		(11	)
		46			36
Income Before Income Taxes		14			54
Income Tax Provision (Benefit)		(8	)		9
Reported Earnings		22			45
Purchase Accounting and Other Adjustments		(3	)		(6	)
Disallowance of Gas Costs		—			(17	)
DTE2 Capitalized Costs		4			—
Operating Earnings	$	23		$	22
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and Form 10Q

Page 8

DTE Energy Debt/Equity Calculation

As of December 31, 2004
($ millions)

short-term borrowings	403
current portion LTD + cap leases	692
long-term debt	5,495
securitization bonds	1,400
capital leases	66
less QUIDS	(385	)
less MichCon short-term debt	(232	)
less securitization debt, including current portion	(1,496	)
Total debt	5,943
Trust preferred	289
QUIDS	385
Mandatory convertible	178
Total preferred/ other	852
Equity	5,548
Total capitalization	12,343
Debt	48.2	%
Preferred stock	6.9	%
Common shareholders’ equity	44.9	%
Total	100.0	%

Sales Analysis — Q4

Electric Sales — Detroit Edison Service Area
(GWh)

	Q4 2004		Q4 2003		% Change
Residential		3,426		3,519		-3	%
Commercial		3,328		3,691		-10	%
Industrial		3,054		2,990		2	%
Other		648		667		-3	%
		10,456		10,867		-4	%
Interconnection		2,274		992		129	%
Choice*		2,563		2,089		23	%
TOTAL SALES		15,293		13,948		10	%

*   Includes Dearborn Industrial Group sales

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

	Q4 2004		Q4 2003		% Change
Residential		305,966		314,120		-3	%
Commercial		281,008		305,971		-8	%
Industrial		150,646		150,968		0	%
Other		27,871		27,947		0	%
		765,491		799,006		-4	%
Interconnection		84,797		30,814		175	%
Choice*		48,734		10,439		367	%**
TOTAL REVENUES		899,022		840,259		7	%

*	Distribution charge includes Dearborn Industrial Group revenues
**	Reflects impact of interim rate order eliminating Choice transition credit & implementing transition charges

Gas Sales — MichCon Service Area (Mcf)

	Q4 2004		Q4 2003		% Change
Residential		39,621,965		40,307,846		-2	%
Commercial		12,070,676		12,102,969		0	%
Industrial		335,373		466,728		-28	%
		52,028,014		52,877,543		-2	%
End User Transportation*		38,386,908		38,042,355		1	%
TOTAL SALES		90,414,922		90,919,898		-1	%

*   includes choice customers

Gas Revenue — MichCon Service Area ($000s)

	Q4 2004		Q4 2003		% Change
Residential		348,149		304,168		14	%
Commercial		106,907		91,702		17	%
Industrial		2,919		3,503		-17	%
		457,975		399,373		15	%
End User Transportation*		30,499		31,389		-3	%
TOTAL REVENUES		488,474		430,762		13	%

*   includes choice customers

Weather

Cooling Degree Days
Detroit Edison service territory

	Q4 2004			Q4 2003		% Change
Actuals		1			0		n/m
Normal		6			6		n/m
Deviation from normal		-83	%		n/m

Heating Degree Days
MichCon service territory

	Q4 2004			Q4 2003			% Change
Actuals		2,216			2,177			2	%
Normal*		2,252			2,396			-6	%
Deviation from normal		-2	%		-9	%

*   2004 data based on 10-year average, 2003 data based on 30 year average

Sales Analysis — 2004

Electric Sales — Detroit Edison Service Area
(GWh)

	2004		2003		% Change
Residential		15,082		15,074		0	%
Commercial		13,425		15,942		-16	%
Industrial		11,472		12,254		-6	%
Other		2,598		2,643		-2	%
TOTAL SYSTEM		42,577		45,913		-7	%
Interconnection		6,372		3,359		90	%
Choice*		9,840		7,281		35	%
TOTAL SALES		58,789		56,553		4	%

*   Includes Dearborn Industrial Group sales

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

	2004		2003		% Change
Residential		1,344,761		1,350,882		0	%
Commercial		1,122,902		1,308,501		-14	%
Industrial		557,098		633,551		-12	%
Other		116,793		115,975		1	%
TOTAL SYSTEM		3,141,554		3,408,909		-8	%
Interconnection		244,206		134,352		82	%
Choice*		173,734		35,443		390	%**
TOTAL REVENUES		3,559,494		3,578,704		-1	%

*	Distribution charge includes Dearborn Industrial Group revenues
**	Reflects impact of interim rate order eliminating Choice transition credit & implementing transition charges

Gas Sales — MichCon Service Area (Mcf)

	2004		2003		% Change
Residential		127,225,642		134,401,892		-5	%
Commercial		40,748,332		41,135,858		-1	%
Industrial		1,337,622		1,526,112		-12	%
		169,311,596		177,063,862		-4	%
End User Transportation*		144,867,269		151,089,646		-4	%
TOTAL SALES		314,178,865		328,153,508		-4	%

*   includes choice customers

Gas Revenue — MichCon Service Area ($000s)

	2004		2003		% Change
Residential		1,028,514		939,980		9	%
Commercial		327,245		289,521		13	%
Industrial		10,592		10,547		0	%
		1,366,351		1,240,048		10	%
End User Transportation*		118,770		135,438		-12	%
TOTAL REVENUES		1,485,121		1,375,486		8	%

*   includes choice customers

Weather

Cooling Degree Days
Detroit Edison service territory

	2004			2003			% Change
Actuals		642			662			-3	%
Normal		736			736			n/m
Deviation from normal		-13	%		-10	%

Heating Degree Days
MichCon service territory

	2004			2003			% Change
Actuals		6,474			6,802			-5	%
Normal*		6,469			6,850			-6	%
Deviation from normal		0	%		-1	%

*   2004 data based on 10-year average, 2003 data based on 30 year average

Page 11