Exhibit 99.2
Full Year 2008 Supplemental Financial Information December 31, 2008 |
DTE Energy Company
Consolidated Statements of Financial Position
Consolidated Statements of Financial Position
December 31 | ||||||||
(in Millions) | 2008 | 2007 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 86 | $ | 123 | ||||
Restricted cash | 86 | 140 | ||||||
Accounts receivable (less allowance for doubtful accounts of $265 and $182, respectively) | ||||||||
Customer | 1,666 | 1,658 | ||||||
Other | 166 | 514 | ||||||
Accrued power and gas supply cost recovery revenue | 22 | 76 | ||||||
Inventories | ||||||||
Fuel and gas | 333 | 429 | ||||||
Materials and supplies | 206 | 204 | ||||||
Deferred income taxes | 227 | 387 | ||||||
Derivative assets | 316 | 181 | ||||||
Other | 220 | 196 | ||||||
Current assets held for sale | — | 83 | ||||||
3,328 | 3,991 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 685 | 824 | ||||||
Other | 595 | 446 | ||||||
1,280 | 1,270 | |||||||
Property | ||||||||
Property, plant and equipment | 20,065 | 18,809 | ||||||
Less accumulated depreciation and depletion | (7,834 | ) | (7,401 | ) | ||||
12,231 | 11,408 | |||||||
Other Assets | ||||||||
Goodwill | 2,037 | 2,037 | ||||||
Regulatory assets | 4,231 | 2,786 | ||||||
Securitized regulatory assets | 1,001 | 1,124 | ||||||
Intangible assets | 70 | 25 | ||||||
Notes receivable | 115 | 87 | ||||||
Derivative assets | 140 | 199 | ||||||
Prepaid pension assets | — | 152 | ||||||
Other | 157 | 116 | ||||||
Noncurrent assets held for sale | — | 547 | ||||||
7,751 | 7,073 | |||||||
Total Assets | $ | 24,590 | $ | 23,742 | ||||
DTE Energy Company
Consolidated Statements of Financial Position
Consolidated Statements of Financial Position
December 31 | ||||||||
(in Millions, Except Shares) | 2008 | 2007 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 899 | $ | 1,189 | ||||
Accrued interest | 119 | 112 | ||||||
Dividends payable | 86 | 87 | ||||||
Short-term borrowings | 744 | 1,084 | ||||||
Current portion long-term debt, including capital leases | 362 | 454 | ||||||
Derivative liabilities | 285 | 281 | ||||||
Deferred gains and reserves | 3 | 400 | ||||||
Other | 515 | 566 | ||||||
Current liabilities associated with assets held for sale | — | 48 | ||||||
3,013 | 4,221 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 6,458 | 5,576 | ||||||
Securitization bonds | 932 | 1,065 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 62 | 41 | ||||||
7,741 | 6,971 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 1,958 | 1,824 | ||||||
Regulatory liabilities | 1,202 | 1,168 | ||||||
Asset retirement obligations | 1,340 | 1,277 | ||||||
Unamortized investment tax credit | 96 | 108 | ||||||
Derivative liabilities | 344 | 450 | ||||||
Liabilities from transportation and storage contracts | 111 | 126 | ||||||
Accrued pension liability | 871 | 68 | ||||||
Accrued postretirement liability | 1,434 | 1,094 | ||||||
Nuclear decommissioning | 114 | 134 | ||||||
Other | 328 | 318 | ||||||
Noncurrent liabilities associated with assets held for sale | — | 82 | ||||||
7,798 | 6,649 | |||||||
Commitments and Contingencies | ||||||||
Minority Interest | 43 | 48 | ||||||
Shareholders’ Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 163,019,596 and 163,232,095 shares issued and outstanding, respectively | 3,175 | 3,176 | ||||||
Retained earnings | 2,985 | 2,790 | ||||||
Accumulated other comprehensive loss | (165 | ) | (113 | ) | ||||
5,995 | 5,853 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 24,590 | $ | 23,742 | ||||
DTEEnergy Company
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
Year Ended December 31 | ||||||||
(in Millions) | 2008 | 2007 | ||||||
Operating Activities | ||||||||
Net income | $ | 546 | $ | 971 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 899 | 926 | ||||||
Deferred income taxes | 348 | 144 | ||||||
Gain on sale of non-utility business | (128 | ) | (900 | ) | ||||
Other asset (gains), losses and reserves, net | (4 | ) | (9 | ) | ||||
Gain on sale of interests in synfuel projects | (31 | ) | (248 | ) | ||||
Impairment of synfuel projects | — | 4 | ||||||
Partners’ share of synfuel project gains (losses) | 2 | (188 | ) | |||||
Contributions from synfuel partners | 14 | 229 | ||||||
Cumulative effect of accounting changes | — | — | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | (87 | ) | 196 | |||||
Net cash from operating activities | 1,559 | 1,125 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (1,183 | ) | (1,035 | ) | ||||
Plant and equipment expenditures — non-utility | (190 | ) | (264 | ) | ||||
Acquisitions, net of cash acquired | — | — | ||||||
Proceeds from sale of interests in synfuel projects | 84 | 447 | ||||||
Refunds to synfuel partners | (387 | ) | (115 | ) | ||||
Proceeds from sale of non-utility business | 253 | 1,262 | ||||||
Proceeds from sale of other assets, net | 25 | 85 | ||||||
Restricted cash | 54 | 6 | ||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 232 | 286 | ||||||
Investment in nuclear decommissioning trust funds | (255 | ) | (323 | ) | ||||
Other investments | (156 | ) | (19 | ) | ||||
Net cash from (used) for investing activities | (1,523 | ) | 330 | |||||
Financing Activities | ||||||||
Issuance of long-term debt | 1,310 | 50 | ||||||
Redemption of long-term debt | (446 | ) | (393 | ) | ||||
Repurchase of long-term debt | (238 | ) | — | |||||
Short-term borrowings, net | (340 | ) | (47 | ) | ||||
Issuance of common stock | — | — | ||||||
Repurchase of common stock | (16 | ) | (708 | ) | ||||
Dividends on common stock | (344 | ) | (364 | ) | ||||
Other | (10 | ) | (6 | ) | ||||
Net cash used for financing activities | (84 | ) | (1,468 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (48 | ) | (13 | ) | ||||
Cash and Cash Equivalents Reclassified (to) from Assets Held for Sale | 11 | (11 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 123 | 147 | ||||||
Cash and Cash Equivalents at End of Period | $ | 86 | $ | 123 | ||||
The Detroit Edison Company
Consolidated Statements of Operations
Consolidated Statements of Operations
Year Ended December 31 | ||||||||
(in Millions) | 2008 | 2007 | ||||||
Operating Revenues | $ | 4,874 | $ | 4,900 | ||||
Operating Expenses | ||||||||
Fuel and purchased power | 1,778 | 1,686 | ||||||
Operation and maintenance | 1,322 | 1,422 | ||||||
Depreciation and amortization | 743 | 764 | ||||||
Taxes other than income | 232 | 277 | ||||||
Asset (gains) and reserves, net | (1 | ) | 8 | |||||
4,074 | 4,157 | |||||||
Operating Income | 800 | 743 | ||||||
Other (Income) and Deductions | ||||||||
Interest expense | 293 | 294 | ||||||
Interest income | (6 | ) | (7 | ) | ||||
Other income | (51 | ) | (40 | ) | ||||
Other expenses | 47 | 30 | ||||||
283 | 277 | |||||||
Income Before Income Taxes | 517 | 466 | ||||||
Income Tax Provision | 186 | 149 | ||||||
Reported Earnings | 331 | 317 | ||||||
Adjustments | ||||||||
Detroit Thermal reserve | — | 17 | ||||||
Regulatory asset surcharge | — | 6 | ||||||
— | 23 | |||||||
Operating Earnings | $ | 331 | $ | 340 | ||||
Michigan Consolidated Gas Company
Consolidated Statement of Operations
Consolidated Statement of Operations
Year Ended December 31 | ||||||||
(in Millions) | 2008 | 2007 | ||||||
Operating Revenues | $ | 2,115 | $ | 1,842 | ||||
Operating Expenses | ||||||||
Cost of gas | 1,351 | 1,139 | ||||||
Operation and maintenance | 464 | 422 | ||||||
Depreciation and amortization | 102 | 93 | ||||||
Taxes other than income | 47 | 55 | ||||||
Asset (gains), net | (26 | ) | (3 | ) | ||||
1,938 | 1,706 | |||||||
Operating Income | 177 | 136 | ||||||
Other (Income) and Deductions | ||||||||
Interest expense | 65 | 60 | ||||||
Interest income | (8 | ) | (10 | ) | ||||
Other income | (11 | ) | (12 | ) | ||||
Other expenses | 13 | 4 | ||||||
59 | 42 | |||||||
Income Before Income Taxes | 118 | 94 | ||||||
Income Tax Provision | 38 | 23 | ||||||
Reported Earnings | 80 | 71 | ||||||
Adjustments | ||||||||
Performance Excellence Process | 4 | 6 | ||||||
GCR disallowance | — | 6 | ||||||
4 | 12 | |||||||
Operating Earnings | $ | 84 | $ | 83 | ||||
DTE Energy Debt/Equity Calculation
As of December 31, 2008
($ millions)
As of December 31, 2008
($ millions)
Short-term borrowings | $ | 744 | ||
Current portion of long-term debt, including capital leases | 362 | |||
Mortgage bonds, notes and other | 6,458 | |||
Securitization bonds | 932 | |||
Capital lease obligations | 62 | |||
less MichCon short-term debt | (522 | ) | ||
less Securitization bonds, including current portion | (1,065 | ) | ||
Total debt | 6,971 | |||
Trust preferred-linked securities | 289 | |||
Total preferred/ other | 289 | |||
Equity | 6,010 | |||
Total capitalization | $ | 13,270 | ||
Debt | 52.5 | % | ||
Preferred | 2.2 | % | ||
Common shareholders’ equity | 45.3 | % | ||
Total | 100.0 | % | ||
Sales Analysis — Q4 2008
Electric Sales — Detroit Edison Service Area (GWh)
Q4 2008 | Q4 2007 | % Change | ||||||||||
Residential | 3,537 | 3,806 | -7 | % | ||||||||
Commercial | 4,573 | 4,986 | -8 | % | ||||||||
Industrial | 3,012 | 3,364 | -10 | % | ||||||||
Other | 811 | 839 | -3 | % | ||||||||
11,933 | 12,995 | -8 | % | |||||||||
Choice* | 377 | 629 | -40 | % | ||||||||
TOTAL SALES | 12,310 | 13,624 | -10 | % | ||||||||
* Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
Q4 2008 | Q4 2007 | % Change | ||||||||||
Residential | 400,449 | 410,328 | -2 | % | ||||||||
Commercial | 431,144 | 446,154 | -3 | % | ||||||||
Industrial | 208,767 | 205,486 | 2 | % | ||||||||
Other | 44,022 | 50,296 | -12 | % | ||||||||
1,084,382 | 1,112,264 | -3 | % | |||||||||
Choice* | 10,622 | 12,149 | -13 | % | ||||||||
TOTAL REVENUES | 1,095,004 | 1,124,413 | -3 | % | ||||||||
* Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales — MichCon Service Area (Mcf)
Q4 2008 | Q4 2007 | % Change | ||||||||||
Residential | 36,594 | 33,892 | 8 | % | ||||||||
Commercial | 10,969 | 9,838 | 11 | % | ||||||||
Industrial | 339 | 360 | -6 | % | ||||||||
47,902 | 44,090 | 9 | % | |||||||||
End User Transportation* | 32,426 | 34,000 | -5 | % | ||||||||
TOTAL SALES | 80,328 | 78,090 | 3 | % | ||||||||
* Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
Q4 2008 | Q4 2007 | % Change | ||||||||||
Residential | 406,985 | 331,421 | 23 | % | ||||||||
Commercial | 120,611 | 95,147 | 27 | % | ||||||||
Industrial | 3,488 | 3,366 | 4 | % | ||||||||
531,084 | 429,934 | 24 | % | |||||||||
End User Transportation* | 39,166 | 38,205 | 3 | % | ||||||||
TOTAL REVENUES | 570,250 | 468,139 | 22 | % | ||||||||
* Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
Q4 2008 | Q4 2007 | % Change | ||||||||||
Actuals | 0 | 54 | -100 | % | ||||||||
Normal | 6 | 6 | ||||||||||
Deviation from normal | -100 | % | 800 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
Q4 2008 | Q4 2007 | % Change | ||||||||||
Actuals | 2,466 | 2,149 | 15 | % | ||||||||
Normal | 2,350 | 2,355 | ||||||||||
Deviation from normal | 5 | % | -9 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
Q4 2008 | Q4 2007 | |||||||||
Detroit Edison | 1 | 3 | Colder than normal weather increased Detroit Edison's earnings by $1M Q4 2008 | |||||||
MichCon | 3 | (5 | ) | Colder than normal weather increased MichCon's earnings by $3M Q4 2008 |
Sales Analysis — YTD December 31, 2008
Electric Sales — Detroit Edison Service Area (GWh)
2008 | 2007 | % Change | ||||||||||
Residential | 15,492 | 16,147 | -4 | % | ||||||||
Commercial | 18,921 | 19,332 | -2 | % | ||||||||
Industrial | 13,086 | 13,338 | -2 | % | ||||||||
Other | 3,217 | 3,300 | -3 | % | ||||||||
50,716 | 52,117 | -3 | % | |||||||||
Choice* | 1,457 | 2,239 | -35 | % | ||||||||
TOTAL SALES | 52,173 | 54,356 | -4 | % | ||||||||
* Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
2008 | 2007 | % Change | ||||||||||
Residential | 1,726,154 | 1,739,309 | -1 | % | ||||||||
Commercial | 1,753,228 | 1,722,637 | 2 | % | ||||||||
Industrial | 893,461 | 853,446 | 5 | % | ||||||||
Other | 175,761 | 181,612 | -3 | % | ||||||||
4,548,604 | 4,497,004 | 1 | % | |||||||||
Choice* | 34,371 | 45,766 | -25 | % | ||||||||
TOTAL REVENUES | 4,582,975 | 4,542,770 | 1 | % | ||||||||
* Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales — MichCon Service Area (Mcf)
2008 | 2007 | % Change | ||||||||||
Residential | 109,684 | 111,501 | -2 | % | ||||||||
Commercial | 35,231 | 32,315 | 9 | % | ||||||||
Industrial | 1,015 | 1,369 | -26 | % | ||||||||
145,930 | 145,185 | 1 | % | |||||||||
End User Transportation* | 122,224 | 131,793 | -7 | % | ||||||||
TOTAL SALES | 268,154 | 276,978 | -3 | % | ||||||||
* Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
2008 | 2007 | % Change | ||||||||||
Residential | 1,237,581 | 1,127,063 | 10 | % | ||||||||
Commercial | 389,503 | 321,452 | 21 | % | ||||||||
Industrial | 11,015 | 13,127 | -16 | % | ||||||||
1,638,099 | 1,461,642 | 12 | % | |||||||||
End User Transportation* | 104,433 | 139,742 | -25 | % | ||||||||
TOTAL REVENUES | 1,742,532 | 1,601,384 | 9 | % | ||||||||
* Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
2008 | 2007 | % Change | ||||||||||
Actuals | 759 | 944 | -20 | % | ||||||||
Normal | 736 | 736 | ||||||||||
Deviation from normal | 3 | % | 28 | % | ||||||||
Heating Degree Days | ||||||||||||
MichCon service territory |
2008 | 2007 | % Change | ||||||||||
Actuals | 6,682 | 6,257 | 7 | % | ||||||||
Normal | 6,724 | 6,667 | ||||||||||
Deviation from normal | -1 | % | -6 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
2008 | 2007 | |||||||||
Detroit Edison | 2 | 27 | Warmer than normal weather added $2 million to Detroit Edison's earnings in 2008 | |||||||
MichCon | 0 | (10 | ) | Normal weather at MichCon in 2008 |
DTE Energy Company
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
Q4 2008 | ||||||||||||
Q4 2008 Reported | Operating | Q4 2008 Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | 2,170 | 11 | 2,181 | |||||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 974 | 974 | ||||||||||
Operation and maintenance | 613 | (9 | ) | 604 | ||||||||
Depreciation, depletion and amortization | 224 | 224 | ||||||||||
Taxes other than income | 75 | 75 | ||||||||||
Gain on sale of non-utility business | — | — | ||||||||||
Other asset (gains) and losses, reserves and impairments, net | (18 | ) | (18 | ) | ||||||||
1,868 | (9 | ) | 1,859 | |||||||||
Operating Income | 302 | 20 | 322 | |||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 132 | 132 | ||||||||||
Interest income | (6 | ) | (6 | ) | ||||||||
Other income | (30 | ) | (30 | ) | ||||||||
Other expenses | 19 | 19 | ||||||||||
115 | — | 115 | ||||||||||
Income Before Income Taxes and Minority Interest | 187 | 20 | 207 | |||||||||
Income Tax Provision | 57 | 7 | 64 | |||||||||
Minority Interest | 1 | 1 | ||||||||||
Income from Continuing Operations | 129 | 13 | 142 | |||||||||
Discontinued Operations | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | ||||||||||
Minority interest in discontinued operations | — | — | ||||||||||
— | — | |||||||||||
Net Income | 129 | 13 | 142 | |||||||||
DTE Energy Company
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
December 31, 2008 | ||||||||||||
2008 Reported | Operating | 2008 Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | 9,329 | 21 | 9,350 | |||||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 4,306 | 4,306 | ||||||||||
Operation and maintenance | 2,694 | (18 | ) | 2,676 | ||||||||
Depreciation, depletion and amortization | 901 | 901 | ||||||||||
Taxes other than income | 304 | 304 | ||||||||||
Gain on sale of non-utility business | (128 | ) | 126 | (2 | ) | |||||||
Other asset (gains) and losses, reserves and impairments, net | (11 | ) | (11 | ) | ||||||||
8,066 | 108 | 8,174 | ||||||||||
Operating Income | 1,263 | (87 | ) | 1,176 | ||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 503 | 503 | ||||||||||
Interest income | (19 | ) | (19 | ) | ||||||||
Other income | (104 | ) | (104 | ) | ||||||||
Other expenses | 64 | 64 | ||||||||||
444 | — | 444 | ||||||||||
Income Before Income Taxes and Minority Interest | 819 | (87 | ) | 732 | ||||||||
Income Tax Provision | 288 | (32 | ) | 256 | ||||||||
Minority Interest | 5 | 5 | ||||||||||
Income from Continuing Operations | 526 | (55 | ) | 471 | ||||||||
Discontinued Operations | ||||||||||||
Income (loss) from discontinued operations, net of tax | 22 | (20 | ) | 2 | ||||||||
Minority interest in discontinued operations | 2 | 2 | ||||||||||
20 | (20 | ) | — | |||||||||
Net Income | 546 | (75 | ) | 471 | ||||||||