Exhibit 99.1
EEI Financial Conference
Gerry Anderson - Chairman, President and CEO
Dave Meador - Executive Vice President and CFO
November 7 - 8, 2011
Safe Harbor Statement
The information contained herein is as of the date of this presentation. Many factors may impact forward-looking statements including, but not limited to, the following: economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, increased thefts of electricity and gas and high levels of uncollectible accounts receivable; changes in the economic and financial viability of suppliers and trading counterparties, and the continued ability of such parties to perform their obligations to the Company; access to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings; the potential for increased costs or delays in completion of significant construction projects; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements; health, safety, financial, environmental and regulatory risks associated with ownership and operation of nuclear facilities; impact of electric and gas utility restructuring in Michigan, including legislative amendments and Customer Choice programs; employee relations and the impact of collective bargaining agreements; unplanned outages; changes in the cost and availability of coal and other raw materials, purchased power and natural gas; volatility in the short-term natural gas storage markets impacting third-party storage revenues; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; the uncertainties of successful exploration of unconventional gas resources and challenges in estimating gas and oil reserves with certainty; changes in and application of federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits, related appeals or new legislation; the cost of protecting assets against, or damage due to, terrorism or cyber attacks; the availability, cost, coverage and terms of insurance and stability of insurance providers; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues; binding arbitration, litigation and related appeals; and risks discussed in public filings with the SEC. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause our results to differ materially from those contained in any forward-looking statement. Any forward-looking statements refer only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also be read in conjunction with the “Forward-Looking Statements” sections in each of DTE Energy’s and Detroit Edison’s 2010 Forms 10-K and 2011 Forms 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison.
Cautionary Note – The Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation such as “probable reserves” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. You are urged to consider closely the disclosure in DTE Energy’s 2010 Form 10-K and 2011 Forms 10-Q, File No. 1-11607, available from our offices or from our website at www.dteenergy.com. You can also obtain these Forms from the SEC by accessing its website at www.sec.gov or by calling 1-800-SEC-0330.
2
Overview
Utility Growth
Non - Utility Growth
Financial Outlook
3
Investment Thesis
DTE Energy has a plan it believes will provide 5% - 6% long-term operating EPS growth, an attractive dividend yield and a strong balance sheet
– Utility growth plan driven by mandated investments
– Constructive regulatory structure and continued cost savings enable utilities to earn their authorized returns
– Plans in place to achieve operational excellence and customer satisfaction that are distinctive in our industry, with a focus on customer affordability
– Meaningful, low-risk growth opportunities in non-utility businesses continue to provide diversity in earnings and geography
5%-6% Average Annual EPS Growth
Attractive Dividend
DTE Energy is an Integrated Energy Company
Strong, Stable and Growing Utilities
~80% of DTE Energy’s 2010 Earnings
Detroit Edison
• Electric generation and distribution
• 2.1 million customers
• Fully regulated by Michigan Public Service Commission (MPSC)
MichCon
• Natural gas distribution
• 1.2 million customers
• Fully regulated by MPSC
Complementary Non-Utility Businesses
~20% of DTE Energy’s 2010 Earnings
Gas Storage & Pipelines
Power & Industrial Projects
Unconventional Gas Production
Energy Trading
5
Growth and Value Creation
Targeting 5% - 6% Long-Term Operating EPS Growth
DTE Energy Operating Earnings Per Share*
$2.89
$3.60**
Early Outlook
$3.75**
2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E
CAGR = ~7%
* Reconciliation to GAAP reported earnings included in the appendix
** Midpoint of range
6
Dividend is Well Supported
Dividend Yield (as of October 2011)
4.6%
6% 5% 4% 3% 2% 1% 0%
TEG VVC AEP WR PGN
TE PNW SCG DTE
SO DPL PCG
NI LNT
ED CMS GXP XEL CNP NST NVE WEC
NU
DTE Energy Annualized Dividend
$2.35 $2.24 $2.12
5.3% CAGR
2009 2010 2011
Payout ratio in-line with 60% - 70% target
Future increases supported by targeted 5% - 6% EPS growth
Constructive Regulatory Environment
2008 Legislation Supports Utility Investment
File & Use Rates with 6 month self-implementation Final order in 12 months Forward-looking test year Electric Choice cap Renewable Portfolio Standard / Energy Optimization with fixed surcharge Certificate of Need for large capital projects
Recent 2011 Detroit Edison Rate Order
$175 million rate increase Full recovery/return on projected capital investments
10.5% authorized ROE
Modified revenue decoupling Choice fully recovered in base rates
Economics support DTE Energy’s 2012 Early Outlook
We remain focused on continuous improvement and customer satisfaction to support our constructive regulation
8
Continuous Improvement Efforts Offsetting Inflation and Other Costs
Utility Operations and Maintenance Expense*
($ millions)
Inflation-adjusted O&M expense
$1,635
$1,550 ~$1,575**
~$1,900
Target
$1,550
~$350
2005 2006 2007 2008 2009 2010 2011E 2012E
Utility O&M reduction of $60 million since 2005
*Excludes bad debt expense, energy efficiency and renewable energy
**Includes $25 million of higher storm costs vs. 2010
9
Continuous Improvement Initiatives Driving Customer Satisfaction
MichCon Customer Complaints to the MPSC
578
150
2008 2009 2010 2011 Target
J.D. Power and Associates
2007 Gas Utility Residential Customer Satisfaction Study
High
Ranking
Low
MichCon
J.D. Power and Associates
2011 Gas Utility Residential Customer Satisfaction Study
High
Ranking
Low
MichCon
Key Initiatives
Implemented 4 hour appointment blocks for service calls (97% on-time)
Focus on reducing errors in customer orders
Increased outreach to assist low-income customers
Targeting 250,000 customer callbacks in 2011
10
Overview
Utility Growth
Non - Utility Growth
Financial Outlook
11
Detroit Edison
Investment Profile, 2011 – 2016
Near term growth driven by mandated renewable energy and environmental investments Potential longer term investments in additional environmental or new generation
(millions)
~$850
~$1,300
~$1,300
~$1,400
~$1,500
~$1,250
~$1,250
620 650 550 580 531 520
2007-2010 2011E 2012E 2013E 2014E 2015E 2016E Average
Rate
$10.4B
Base
$14.2B
2012 – 2016
New Environmental/
Generation ~$550
Other Projects* ~$600
Renewables / EE ~$900
Environmental ~$1,300
Base ~$3,350
Depreciation
* Includes AMI, Ludington expansion and other investments
12
Detroit Edison
Strategic Options for EGU MACT*
Dry Sorbent Injection (DSI)
Testing of DSI is ongoing; expect to complete by year-end 2011
Flue Gas Desulfurization (FGD)
If DSI is not effective/economical, FGD may be economical at larger units Retire unit if control technology is uneconomical
Reduced Emissions Fuel (REF)
Reduces Mercury and NOx
Expect to have facilities at 3 Detroit Edison plants
Belle River Power Plant
*Electric Generating Unit Maximum Achievable Control Technology
13
Detroit Edison
Coal Fleet Assessment
Assessment* of Detroit Edison Coal-Fired Capacity MW
1,000 MW (14%)
313 MW (4%)
3,095 MW (43%)
Monroe
1,500 MW (21%)
1,260 MW (18%)
Belle River
*Based on preliminary testing
Monroe - largest plant comprising ~40% of the coal fleet - is deploying FGDs and SCRs
Belle River (18% of capacity) - may deploy either FGDs or DSI
Additional 21% of capacity – based on early testing DSI appears to work; retirement unlikely
Future viability of 14% of our fleet is highly dependent on success with DSI
– Potential for combined cycle gas turbine generation to backfill possible retirements
– Retirements beginning as early as 2015 4% of fleet will be retired
14
Detroit Edison
Renewable Energy Portfolio
17 MW Biomass
26 MW Wind
120 MW Wind
Gratiot Wind Energy
212 MW Wind
~$250M Capital Investment On-Line Late 2011/Early 2012
(102 MW Owned/110 MW Contracted)
Detroit Edison Owned
Contracted
Thumb Wind Farms
~110 MW Wind
~$250M Capital Investment
On-Line 2012 / 2013
6 MW Landfill Gas
SolarCurrents Pilot:
7 MW Contracted
Projected Operating Earnings*
(millions, after-tax)
~$55
$30 - $35
$10 - $15
2011E 2012E 2013E 2014E 2015E 2016E
* Reconciliation to GAAP reported earnings included in the appendix
15
MichCon
Investment Profile, 2011 – 2016
Growth driven by investments in cast iron main renewal and meter move out program
(millions)
~$180
~$215
~$210
~$210
~$210
~$195
99 102 105
91 95 88
2011E 2012E 2013E 2014E 2015E 2016E
Rate $2.5B Base
$3.0B
2012 – 2016
Meter Move Out ~$115
Main Renewal ~$250
Base ~$675
Depreciation
16
MichCon
Main Renewal Program
Program Overview
10-year Main Replacement 670 miles
Capital Investment ~$500 million
Projected Impact on Leaks
Number of Leaks
50% Reduction
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Benefits
Improved safety and reliability
Accelerated replacement and retirement of poor performing mains
Reduction in operating costs through lower leak repair costs and lost gas
Fewer customer reported leaks, improving overall customer satisfaction
17
Overview
Utility Growth
Non - Utility Growth
Financial Outlook
18
Gas Storage and Pipeline Operating Earnings*
Growth projects provide earnings potential of $100 million by 2016
($millions)
~$100
~$75
$53 $55
2011E 2012E 2013E 2014E 2015E 2016E
Bluestone base
Millennium expansions
Existing asset base
* Reconciliation to GAAP reported earnings included in the appendix
• Bluestone expansions (laterals and gathering)
• Additional millennium expansions and laterals
• Other Marcellus midstream development or partnering opportunities
19
Gas Storage and Pipeline
Strong Growth Potential in the Marcellus Shale
Bluestone
180K Acres Within
5 Miles of Bluestone
Southwestern Acreage
Bluestone Growth Opportunities
Initial investment (~$280 million) will serve Southwestern Energy production
Anticipated in-service beginning Q2 2012 Significant expansion opportunities Potential to expand Bluestone north into NY Looking for additional “Bluestone-like” opportunities
Millennium Mainline Expansions
Expect first two expansions to be on-line late 2012 and 2013
– Expands capacity by ~50% to 0.8 Bcf/d Can be economically expanded to 1.5 Bcf/d
20
Power & Industrial Projects Operating Earnings*
Earnings potential of $125 million by 2016
($millions)
~$125
$45 - $55
$30 - $40
2011E 2012E 2013E 2014E 2015E 2016E
2016 Target
New Project
~$25
Development
Renewable
~$35
Energy
Reduced
~$60
Emissions Fuel
Industrial Energy
~$75
Services
Corporate allocations, ~($70) interest and overheads
*Reconciliation to GAAP reported earnings included in the appendix
21
Power & Industrial Projects
Reduced Emissions Fuel (REF) Overview
REF facility at St. Clair Power Plant
REF facility at Monroe Power Plant
Program Overview
Facilities blend proprietary additives with coal, resulting in reduced mercury and NOx emissions
Demonstrated emissions reductions in excess of 40% mercury and 20% NOx
Qualifies for federal income tax credit* of ~$6.33 per ton in 2011
Host utility retains environmental benefits
*Section 45 (adjusts each year with inflation)
22
Power & Industrial Projects REF Development Update
Utility Host
(# of units)
Detroit Edison (3)
In Service Date
Annual Tons
(millions)
Monetization Partnership Status
Midwest Utility (1)
Midwest Utility (1)
To Be Relocated (4)
2009 (2) 2 - 5 Executed one agreement
2011 (1) 7 - 9 Late-stage negotiations
Partner search in 2011 4 - 5 progress
Partner search in 2011 1 - 2 progress
2009 (3) Search to commence TBD
2011 (1) following relocation
Key Development Activities
Achieve facility in-service by 12/31/11 for new units
Complete test burns and commercial agreements with host utilities Attract tax credit monetization partners (price & structure)
Achieve targeted production volumes
23
Power & Industrial Projects REF Operating Earnings* Outlook
Potential for significant value and strong earnings for 10 years
(millions)
$100 $75 $50 $25 $0
2012E 2013E 2014E 2015E 2016E
Upside results from additional tons produced
Based on current agreements and late-stage negotiations, production ramps up to ~35 million tons Downside reflects operational issues and/or fewer facilities in service
* Reconciliation to GAAP reported earnings included in the appendix
24
Energy Trading Overview
Operating Earnings*
(millions)
$30 - $50
$44 $35 - $45
2007 – 2010 2011E 2012E Average
Solid earnings and cash contributor; helps offset equity needs
2011 earnings returning to historical levels
Provides significant strategic value
• Market intelligence
• Execution capability for other segments to support hedging and risk management
* Reconciliation to GAAP reported earnings included in the appendix
25
Unconventional Gas Monetization Update
Divestitures to be timed with oil play maturation
Targeting small monetization in 2011
Planning full monetization in 2012/2013
26
Overview
Utility Growth
Non - Utility Growth
Financial Outlook
27
Track Record of Strong Earnings Growth
Operating Earnings Per Share*
$2.89
$3.30
$3.60
$3.60**
$3.75**
~7% CAGR at Midpoint
2008A 2009A 2010A 2011 2012 Current Early Guidance Outlook
2011 remains on track
Outlook for 2012 is for 5.6% growth over 2011 original guidance
Confident in 5% - 6% long-term EPS growth
* Reconciliation to GAAP reported earnings included in the appendix
** Midpoint of range
28
2011 Operating Earnings* Guidance
YTD
(millions, except EPS) 9/30/11 Prior Revised
Actual Guidance Guidance
Detroit Edison $354 $435 - $445 $430 - $440
MichCon 69 110 - 115 110 - 115
Gas Storage & Pipelines 42 53 53
Unconventional Gas (5) 0 (3)
Production
Power & Industrial 27 30 - 40 30 - 40
Projects
Energy Trading 36 10 - 40 35 - 45
Corporate & Other (41) (62) (62)
DTE Energy $482 $576 - $631 $593 - $628
Operating EPS $2.83 $3.40 - $3.70 $3.50 - $3.70
Avg. Shares Outstanding 170 170 170
Drivers
Recently raised lower end of guidance range; increasing midpoint to $3.60
Lower authorized ROE at Detroit Edison
Strong YTD economic performance at Energy Trading
* Reconciliation to GAAP reported earnings included in the appendix
29
2012 Operating Earnings* Early Outlook
2011 Revised 2012 Early
(millions, except EPS) Guidance Outlook
Detroit Edison $430 - $440 $438 - $448
MichCon 110 - 115 115 - 120
Gas Storage & Pipelines 53 55
Unconventional Gas
(3) 0 Production Power & Industrial
30 - 40 45 - 55 Projects
Energy Trading 35 - 45 30 - 50
Corporate & Other (62) (62)
DTE Energy $593 - $628 $621 - $666
Operating EPS $3.50 - $3.70 $3.60 - $3.90
Avg. Shares Outstanding 170 171
2012 Drivers
Resolution of rate case, environmental and renewable projects placed into service, continued cost control
Continued cost control
Modest incremental earnings from existing projects; more significant growth begins in 2013 from new projects
Higher oil production in 2012, additional monetizations
Incremental earnings from new REF and renewable energy projects
Expect performance to be at historical levels
* Reconciliation to GAAP reported earnings included in the appendix
30
2012 – 2014 Cash Flow Summary*
($billions)
Sources
Cash From Operations $5.1
Equity / Asset Sales 1.2
Debt 1.0
Total Sources $7.3
Uses
Capital Spending $5.9
Dividends 1.4
Total Uses $7.3
Cash from operations, equity issuances and monetizations support utility capital spend and a strong balance sheet
– Over $5 billion in cash from operations
– Equity issuances to average ~$300 million per year; focus on internal mechanisms
– Planning full Barnett monetization in 2012/2013
5% - 6% EPS growth target includes impact of new equity
*Excludes securitization
31
Strong Balance Sheet Supports Growth
Leverage*
Target 50% - 52%
53%
51% 51%
2009 2010 2011E
Funds from Operations / Debt*
Target 22% - 24%
28%
22% 23%
2009 2010 2011E
A strong balance sheet continues to be a key priority
Leverage and cash flow metrics within targeted ranges, without new equity in 2011
Issued over $1 billion of new or refinanced debt this year, generating annual interest savings of nearly $25 million
Closed on $1.8 billion 5-year credit facilities in
October 2011
– $1.6 billion of available liquidity at end of
3Q 2011
*Debt excludes securitization, a portion of MichCon’s short-term debt, and considers 50% of the trust preferreds as equity
32
Summary
On track to achieve solid 2011 financial results
2012 outlook supports 5.6% growth over 2011 original guidance
Constructive regulatory structure and focus on operational excellence and customer satisfaction enable meaningful growth at utilities
Continue to see attractive/premium return on non-utility investments
Long-term plan supports 5% - 6% operating EPS growth
33
Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030
34
Appendix
Michigan Public Service Commission (MPSC)
The Michigan Public Service Commission is composed of three members appointed by the Governor with the advice and consent of the Senate.
Commissioners are appointed to serve staggered six-year terms.
No more than two Commissioners may represent the same political party.
One commissioner is designated as chairman by the Governor.
John Quackenbush
Chairman
Appointed: 9/15/11
Term Ends: 7/2/17 (Republican)
Orjiakor Isiogu
Commissioner
Appointed: 9/9/07
Term Ends: 7/2/13 (Democrat)
Greg White
Commissioner
Appointed: 12/4/09
Term Ends: 7/2/15 (Independent)
Source: MPSC website - www.michigan.gov/mpsc - Jan. 2010
36
2011 Capital Expenditures & Cash Flow Guidance
Cash Flow Summary*
(billions)
2011
Guidance
Cash From Operations $1.9
Capital Spending (1.7)
Free Cash Flow $0.2
Asset Sales $0.1
Dividends (0.4)
Net Cash ($0.1)
Debt $0.1
Capital Expenditures
(millions)
2011
Guidance
Detroit Edison
Operational $720
Environmental 230
Renewables / EE 350
$1,300
MichCon
Operational $155
Expansion 25
$180
Non-Utility / Corporate & $250
Other
Total $1,730
* Includes securitization
37
Gas Storage & Pipeline: Overview
Storage Assets
Pipeline Interests
Vector Pipeline – 40%
Fully contracted (6 year avg. term)
348 miles of pipe; 120,000 H.P. of compression at five stations
Millennium Pipeline – 26.25%
100% contracted (> 10 year avg. term) 222 miles of pipe; 15,000 H.P. of compression
DTE Gas Storage
Fully contracted (6 year avg. term)
90 Bcf of storage capacity in Michigan
26,200 H.P. of compression
Michigan Gathering Assets
Comprised of MichCon Lateral and
MichCon Gathering Companies
Two systems: One designed to handle liquid rich gas and the other for dry production gas
38
Barnett Shale Operating Metrics
Reserves (Bcfe)
555 489
201 Proven 234
354
255 Probable
(Unaudited)
YE2009 YE2010
Acreage Position (000’s Acres)
86 70 17 16
69 54
YE2010 3Q 2011
Net Developed Acres Net Undeveloped Acres
Gross Producing Wells
194 209
YE2010 3Q 2011
Net Production (Bcfe)
5.5 4.8
YE2010 YE 2011 Est.
2011 YTD Results
15 new wells on-line, 4 in progress Production of 3.8 Bcfe 56% increase in oil sales volume year-over-year Capital expenditures $23 million Acquired 16k acres, net
2011 Goals
Continue to prudently manage and develop Barnett assets
Invest $25 - $30 million
Drill 20 - 25 wells
Produce 5.5 Bcfe net, increase oil production
Develop oil reserves
39
DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income
(millions)
$36
$10
$46
YTD 2011 Operating Earnings*
Accounting
Adjustments**
YTD 2011 Economic Net Income
Economic net income equals economic gross margin*** minus O&M expenses and taxes. DTE Energy management uses economic net income as one of the performance measures for external communications with analysts and investors. Internally, DTE Energy uses economic net income as one of the measures to review performance against financial targets and budget.
$0
$23
$23
YTD 2010 Operating Earnings*
Accounting
Adjustments**
YTD 2010 Economic Net Income
* Reconciliation to GAAP reported earnings included in the appendix
** Consists of the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not MTM, instead are recognized for accounting purposes on an accrual basis.
*** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts including certain non-derivative contract costs
Energy Trading Operating Earnings*
($ millions, after-tax)
YTD 2011 YTD 2010
Realized $51 $30
Unrealized 24 11
O&M / Other (39) (41)
$36 $0
40
Reconciliation of YTD September 30, 2011 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
YTD 2011 Net Income (millions)
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $561 $345 $69 $42 ($5) $27 $36 $47
Michigan Corporate Income Tax
Adjustment (88) - - - - (88)
Fermi 1 Asset Retirement Obligation 9 9 - - - -
Operating Earnings $482 $354 $69 $42 ($5) $27 $36 ($41)
YTD 2011 EPS
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $3.30 $2.03 $0.41 $0.25 ($0.03) $0.16 $0.21 $0.27
Michigan Corporate Income Tax
Adjustment (0.52) - - - - (0.52)
Fermi 1 Asset Retirement Obligation 0.05 0.05 - - - -
Operating Earnings $2.83 $2.08 $0.41 $0.25 ($0.03) $0.16 $0.21 ($0.25)
41
Reconciliation of 2010 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
2010 Net Income ($millions)
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $630 $441 $127 $51 ($11) $85 $6 ($69)
Performance Excellence Process -
Cost to Achieve Deferral* (20) - (20) - - - -
Settlement with Detroit Thermal (3) (3) - - - -
Operating Earnings $607 $438 $107 $51 ($11) $85 $6 ($69)
2010 $EPS
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $3.74 $2.62 $0.75 $0.30 ($0.06) $0.50 $0.04 ($0.41)
Performance Excellence Process -
Cost to Achieve Deferral* (0.12) - (0.12) - - - -
Settlement with Detroit Thermal (0.02) (0.02) - - - -
Operating Earnings $3.60 $2.60 $0.63 $0.30 ($0.06) $0.50 $0.04 ($0.41)
* Deferral of previously expensed cost to achieve as allowed for in June 3, 2010 MPSC order (case - U-15985)
42
Reconciliation of 2009 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
FY 2009 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $532 $376 $80 $49 ($9) $31 $75 ($70)
Gain on Sale - gathering and treating
assets (before goodwill allocation) (13) - (13) - - - -
Goodwill allocation - gathering and
treating assets 13 - 13 - - - -
Chrysler Bad Debt 5 4 - - 1 - -
General Motors Bad Debt 3 - - - 3 - -
Antrim Hedge 3 - - - - 3
Operating Earnings $543 $380 $80 $49 ($9) $35 $75 ($67)
FY 2009 $EPS
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $3.24 $2.28 $0.49 $0.30 ($0.05) $0.19 $0.46 ($0.43)
Gain on Sale - gathering and treating
assets (before goodwill allocation) (0.08) - (0.08) - - - -
Goodwill allocation - gathering and
treating assets 0.08 - 0.08 - - - -
Chrysler Bad Debt 0.03 0.02 - - 0.01 - -
General Motors Bad Debt 0.02 - - - 0.02 - -
Antrim Hedge 0.01 - - - - 0.01
Operating Earnings $3.30 $2.30 $0.49 $0.30 ($0.05) $0.22 $0.46 ($0.42)
43
Reconciliation of 2008 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
FY 2008 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other Synfuel
Reported Earnings $546 $331 $85 $38 $84 $40 $42 ($94) $20
Performance Excellence Process 6 - 4 - - 1 1 - -
Core Barnett Sale (81) - - (81) - - -
Antrim hedge 13 - - - - 13 -
Barnett Lease impairment 5 - - 5 - - -
Crete Sale - Tax True up 2 - - - - 2 -
Synfuel Discontinued Operations (20) - - - - - (20)
Operating Earnings $471 $331 $89 $38 $8 $41 $43 ($79) $0
FY 2008 $EPS
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other Synfuel
Reported Earnings $3.34 $2.03 $0.52 $0.23 $0.52 $0.25 $0.26 ($0.59) $0.12
Performance Excellence Process 0.05 - 0.03 - - 0.01 0.01 - -
Core Barnett Sale (0.50) - - (0.50) - - -
Antrim hedge 0.08 - - - - 0.08 -
Barnett Lease impairment 0.03 - - 0.03 - - -
Crete Sale - Tax True up 0.01 - - - - 0.01 -
Synfuel Discontinued Operations (0.12) - - - - - (0.12)
Operating Earnings $2.89 $2.03 $0.55 $0.23 $0.05 $0.26 $0.27 ($0.50) $0.00
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Reconciliation of 2007 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
FY 2007 Net Income ($ millions)
Gas Power & Uncov.
DTE Electric Gas Storage & Indust. Gas Energy Corporate
Energy Utility Utility Pipelines Projects Prod. Trading & Other Synfuel
Reported Earnings $971 $317 $70 $34 $49 ($217) $32 $481 $205
Performance Excellence Process (CTA) 7 - 6 - 1 - - -
GCR Disallowance 6 - 6 - - - -
Detroit Thermal 17 17 - - - - -
Regulatory Asset Surcharge 6 6 - - - - -
Antrim Sale (334) - - - 211 21 (566) -
Lease Impairment 17 - - - 17 - -
Synfuel Discontinued Operations (205) - - - - - (205)
Crete Sale (5) - - (5) - - -
Operating Earnings $480 $340 $82 $34 $45 $11 $53 ($85) $0
FY 2007 $EPS
Gas Power & Uncov.
DTE Electric Gas Storage & Indust. Gas Energy Corporate
Energy Utility Utility Pipelines Projects Prod. Trading & Other Synfuel
Reported Earnings $5.70 $1.86 $0.41 $0.20 $0.29 ($1.27) $0.19 $2.82 $1.20
Performance Excellence Process (CTA) 0.04 - 0.04 - - - -
GCR Disallowance 0.03 - 0.03 - - - -
Detroit Thermal 0.10 0.10 - - - - -
Regulatory Asset Surcharge 0.04 0.04 - - - - -
Antrim Sale (1.96) - - - 1.23 0.12 (3.31) -
Lease Impairment 0.10 - - - 0.10 - -
Synfuel Discontinued Operations (1.20) - - - - - (1.20)
Crete Sale (0.03) - - (0.03) - - -
Operating Earnings $2.82 $2.00 $0.48 $0.20 $0.26 $0.06 $0.31 ($0.49) $0.00
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Reconciliation of Other Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
In this presentation, DTE Energy provides guidance and early outlook for future period operating earnings. It is likely that certain items that impact the company’s future period reported results will be excluded from operating results. A reconciliation to the comparable future period reported earnings is not provided because it is not possible to provide a reliable forecast of specific line items. These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.
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