EX-99.2 3 exhibit992.htm EXHIBIT 99.2 Exhibit 99.2
EXHIBIT 99.2




DTE Energy Company
Consolidated Statements of Financial Position
 
December 31
 
2012
 
2011
 
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
65

 
$
68

Restricted cash, principally Securitization
122

 
147

Accounts receivable (less allowance for doubtful accounts of $62 and $162, respectively)
 
 
 
Customer
1,336

 
1,317

Other
126

 
90

Inventories
 
 
 
Fuel and gas
527

 
572

Materials and supplies
234

 
219

Deferred income taxes
21

 
51

Derivative assets
108

 
222

Regulatory assets
182

 
314

Other
194

 
196

 
2,915

 
3,196

Investments
 
 
 
Nuclear decommissioning trust funds
1,037

 
937

Other
554

 
525

 
1,591

 
1,462

Property
 
 
 
Property, plant and equipment
23,631

 
22,541

Less accumulated depreciation, depletion and amortization
(8,947
)
 
(8,795
)
 
14,684

 
13,746

Other Assets
 
 
 
Goodwill
2,018

 
2,020

Regulatory assets
4,235

 
4,539

Securitized regulatory assets
413

 
577

Intangible assets
135

 
73

Notes receivable
112

 
123

Derivative assets
39

 
74

Other
197

 
199

 
7,149

 
7,605

Total Assets
$
26,339

 
$
26,009







DTE Energy Company
Consolidated Statements of Financial Position — (Continued)
 
December 31
 
2012
 
2011
 
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable
$
848

 
$
782

Accrued interest
93

 
95

Dividends payable
107

 
99

Short-term borrowings
240

 
419

Current portion long-term debt, including capital leases
817

 
526

Derivative liabilities
125

 
158

Other
538

 
549

 
2,768

 
2,628

Long-Term Debt (net of current portion)
 
 
 
Mortgage bonds, notes and other
6,220

 
6,405

Securitization bonds
302

 
479

Junior subordinated debentures
480

 
280

Capital lease obligations
12

 
23

 
7,014

 
7,187

Other Liabilities
 

 
 

Deferred income taxes
3,191

 
3,116

Regulatory liabilities
1,031

 
1,019

Asset retirement obligations
1,719

 
1,591

Unamortized investment tax credit
56

 
65

Derivative liabilities
26

 
89

Accrued pension liability
1,498

 
1,298

Accrued postretirement liability
1,160

 
1,484

Nuclear decommissioning
159

 
148

Other
306

 
331

 
9,146

 
9,141

Commitments and Contingencies
 
 
 
Equity
 
 
 
Common stock, without par value, 400,000,000 shares authorized, 172,351,680 and 169,247,282 shares issued and outstanding, respectively
3,587

 
3,417

Retained earnings
3,944

 
3,750

Accumulated other comprehensive loss
(158
)
 
(158
)
Total DTE Energy Company Equity
7,373

 
7,009

Noncontrolling interests
38

 
44

Total Equity
7,411

 
7,053

Total Liabilities and Equity
$
26,339

 
$
26,009





DTE Energy Company
Consolidated Statements of Cash Flows
 
Year Ended December 31
 
2012
 
2011
 
2010
 
(In millions)
Operating Activities
 
 
 
 
 
Net income
$
618

 
$
720

 
$
639

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
 
 
Depreciation, depletion and amortization
1,018

 
995

 
1,027

Deferred income taxes
47

 
220

 
457

Loss on sale of non-utility business
83

 
—

 
—

Asset (gains) and losses, reserves and impairments, net
1

 
(21
)
 
(5
)
Changes in assets and liabilities, exclusive of changes shown separately
442

 
94

 
(293
)
Net cash from operating activities
2,209

 
2,008

 
1,825

Investing Activities
 
 
 
 
 
Plant and equipment expenditures — utility
(1,451
)
 
(1,382
)
 
(1,011
)
Plant and equipment expenditures — non-utility
(369
)
 
(102
)
 
(88
)
Proceeds from sale of non-utility business
255

 
—

 
—

Proceeds from sale of assets
38

 
18

 
56

Restricted cash for debt redemption, principally Securitization
2

 
(5
)
 
(32
)
Acquisition, net of cash acquired
(198
)
 
—

 
—

Proceeds from sale of nuclear decommissioning trust fund assets
97

 
80

 
377

Investment in nuclear decommissioning trust funds
(102
)
 
(97
)
 
(410
)
Consolidation of VIEs
—

 
—

 
19

Investment in Millennium Pipeline Project
—

 
(3
)
 
(49
)
Other
(41
)
 
(69
)
 
(88
)
Net cash used for investing activities
(1,769
)
 
(1,560
)
 
(1,226
)
Financing Activities
 
 
 
 
 
Issuance of long-term debt
759

 
1,179

 
614

Redemption of long-term debt
(639
)
 
(1,455
)
 
(663
)
Short-term borrowings, net
(179
)
 
269

 
(177
)
Issuance of common stock
39

 
—

 
36

Repurchase of common stock
—

 
(18
)
 
—

Dividends on common stock
(407
)
 
(389
)
 
(360
)
Other
(16
)
 
(31
)
 
(36
)
Net cash used for financing activities
(443
)
 
(445
)
 
(586
)
Net Increase (Decrease) in Cash and Cash Equivalents
(3
)
 
3

 
13

Cash and Cash Equivalents at Beginning of Period
68

 
65

 
52

Cash and Cash Equivalents at End of Period
$
65

 
$
68

 
$
65







DTE Electric Company
Consolidated Statements of Operations
 
Year Ended December 31
 
2012
 
2011
 
2010
 
(In millions)
Operating Revenues
$
5,291

 
$
5,152

 
$
4,993

Operating Expenses
 
 
 
 
 
Fuel and purchased power
1,758

 
1,716

 
1,580

Operation and maintenance
1,429

 
1,369

 
1,305

Depreciation and amortization
822

 
813

 
849

Taxes other than income
256

 
240

 
237

Asset (gains) losses and reserves, net
(2
)
 
12

 
(6
)
 
4,263

 
4,150

 
3,965

Operating Income
1,028

 
1,002

 
1,028

Other (Income) and Deductions
 
 
 
 
 
Interest expense
272

 
289

 
313

Interest income
(1
)
 
—

 
(1
)
Other income
(53
)
 
(47
)
 
(39
)
Other expenses
42

 
56

 
44

 
260

 
298

 
317

Income Before Income Taxes
768

 
704

 
711

Income Tax Expense
282

 
267

 
270

Net Income
$
486

 
$
437

 
$
441






DTE Gas Company
Consolidated Statements of Operations
 
Year Ended December 31
 
2012
 
2011
 
2010
 
(In millions)
Operating Revenues
$
1,293

 
$
1,483

 
$
1,628

Operating Expenses
 
 
 
 
 
Cost of gas
536

 
729

 
855

Operation and maintenance
380

 
390

 
373

Depreciation and amortization
92

 
89

 
92

Taxes other than income
53

 
53

 
54

 
1,061

 
1,261

 
1,374

Operating Income
232

 
222

 
254

Other (Income) and Deductions
 
 
 
 
 
Interest expense
59

 
63

 
66

Interest income
(7
)
 
(7
)
 
(9
)
Other income
(9
)
 
(7
)
 
(6
)
Other expenses
25

 
5

 
5

 
68

 
54

 
56

Income Before Income Taxes
164

 
168

 
198

Income Tax Expense
50

 
59

 
68

Net Income
$
114

 
$
109

 
$
130








DTE Energy Debt/Equity Calculation
As of December 31, 2012
($ millions)

Short-term borrowings
$
240

Current portion of long-term debt, including capital leases
817

Mortgage bonds, notes and other
6,220

Securitization bonds, excluding current portion
302

Capital lease obligations
12

Other adjustments
146

less Securitization bonds, including current portion
(479
)
50% Junior Subordinated Debentures
240

Total debt
7,498

 
 
50% Junior Subordinated Debentures
240

Total preferred/ other
240

 
 
Equity
7,373

 
 
Total capitalization
$
15,111

 
 
Debt
49.6
%
Junior Subordinated Debentures
1.6
%
Common shareholders' equity
48.8
%
 
 
Total
100
%






Sales Analysis - Q4 2012
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2012
 
Q4 2011
 
% Change
 
 
Q4 2012
 
Q4 2011
 
% Change
Residential
3,486

 
3,549

 
(2
)%
 
Residential
$
530,776

 
$
503,087

 
6
 %
Commercial
4,099

 
4,029

 
2
 %
 
Commercial
461,966

 
420,851

 
10
 %
Industrial
2,344

 
2,386

 
(2
)%
 
Industrial
187,118

 
171,790

 
9
 %
Other (a)
241

 
263

 
(8
)%
 
Other (b)
26,153

 
51,516

 
(49
)%
 
10,170

 
10,227

 
(1
)%
 
 
$
1,206,013

 
$
1,147,244

 
5
 %
Choice
1,258

 
1,341

 
(6
)%
 
Choice
23,829

 
23,811

 
—
 %
TOTAL SALES
11,428

 
11,568

 
(1
)%
 
TOTAL
$
1,229,842

 
$
1,171,055

 
5
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 excludes 530 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $23,588k related to a wholesale contract terminated Dec 2011

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2012
 
Q4 2011
 
% Change
 
 
Q4 2012
 
Q4 2011
 
% Change
Residential
28,985

 
27,022

 
7
 %
 
Residential
$
252,950

 
$
241,667

 
5
 %
Commercial
6,188

 
5,999

 
3
 %
 
Commercial
52,771

 
51,817

 
2
 %
Industrial
166

 
198

 
(16
)%
 
Industrial
1,290

 
1,548

 
(17
)%
 
35,339

 
33,219

 
6
 %
 
 
$
307,011

 
$
295,032

 
4
 %
End User Transportation*
41,829

 
36,446

 
15
 %
 
End User Transportation*
60,805

 
52,343

 
16
 %
TOTAL SALES
77,168

 
69,665

 
11
 %
 
TOTAL
$
367,816

 
$
347,375

 
6
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
Q4 2012
 
Q4 2011
 
% Change
 
 
Q4 2012
 
Q4 2011
 
% Change
Actuals
—
 
—
 
—%
 
Actuals
2,088
 
1,905
 
10%
Normal
—
 
—
 
—%
 
Normal
2,208
 
2,255
 
(2)%
Deviation from normal
—%
 
—%
 
 
 
Deviation from normal
(5)%
 
(16)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
Q4 2012
 
Q4 2011
DTE Electric*
$
(5
)
 
$
—

DTE Gas
(3
)
 
(12
)
________________
 
 
 
* Pre Nov 2011, DTE Electric Company's earnings not significantly affected by weather due to the RDM mechanism. RDM was discontinued starting in Nov 2011.
 
 
 








Sales Analysis - YTD December 31, 2012
 
 
 
Electric Sales - DTE Electric Service Area (GWh)
 
Electric Billings - DTE Electric Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
15,666

 
15,907

 
(2
)%
 
Residential
$
2,354,092

 
$
2,182,292

 
8
 %
Commercial
16,832

 
16,778

 
0
 %
 
Commercial
1,897,868

 
1,704,282

 
11
 %
Industrial
9,989

 
9,739

 
3
 %
 
Industrial
783,668

 
692,424

 
13
 %
Other (a)
958

 
1,034

 
(7
)%
 
Other (b)
105,863

 
199,715

 
(47
)%
 
43,445

 
43,458

 
0
 %
 
 
$
5,141,491

 
$
4,778,713

 
8
 %
Choice
5,197

 
5,445

 
(5
)%
 
Choice
92,138

 
101,482

 
(9
)%
TOTAL SALES
48,642

 
48,903

 
(1
)%
 
TOTAL
$
5,233,629

 
$
4,880,195

 
7
 %
________________
 
 
 
 
 
 
________________
 
 
 
 
 
(a) 2011 excludes 2,102 GWh related to a wholesale contract terminated Dec 2011
 
(b) 2011 includes $93,099k related to a wholesale contract terminated Dec 2011

Gas Sales - DTE Gas Service Area (MMcf)
 
Gas Billings - DTE Gas Service Area (000s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
82,990

 
95,935

 
(13
)%
 
Residential
$
769,446

 
$
919,359

 
(16
)%
Commercial
18,484

 
23,203

 
(20
)%
 
Commercial
163,512

 
214,079

 
(24
)%
Industrial
885

 
812

 
9
 %
 
Industrial
6,966

 
6,653

 
5
 %
 
102,359

 
119,950

 
(15
)%
 
 
$
939,924

 
$
1,140,091

 
(18
)%
End User Transportation*
156,637

 
141,233

 
11
 %
 
End User Transportation*
207,301

 
207,090

 
—
 %
TOTAL SALES
258,996

 
261,183

 
(1
)%
 
TOTAL
$
1,147,225

 
$
1,347,181

 
(15
)%
________________
 
 
 
 
 
 
________________
 
 
 
 
 
* Includes choice customers
 
 
 
 
 
 
* Includes choice customers
 
 
 
 
 

Weather
 
 
 
 
 
 
 
 
 
 
 
 
 
Cooling Degree Days
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
DTE Electric service territory
 
 
 
 
 
 
DTE Gas service territory
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Actuals
1,123
 
1,039
 
8%
 
Actuals
5,410
 
6,321
 
(14)%
Normal
736
 
736
 
—%
 
Normal
6,339
 
6,399
 
(1)%
Deviation from normal
53%
 
41%
 
 
 
Deviation from normal
(15)%
 
(1)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings Impact of Weather
 
 
 
Variance from normal weather (millions, after-tax)
 
 
 
 
YTD 2012
 
YTD 2011
DTE Electric*
$
45

 
$
—

DTE Gas
(28
)
 
(1
)
________________
 
 
 
* Pre Nov 2011, DTE Electric Company's earnings not significantly affected by weather due to the RDM mechanism. RDM was discontinued starting in Nov 2011.
 
 
 






DTE Electric Temperature Normal Sales Analysis - YTD December 31, 2012
 
 
 
Temperature Normal Electric Sales -
DTE Electric Service Area (GWh)
 
Temperature Normal Electric Sales - DTE Electric
Service Area (Includes Electric Choice) (GWh)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012
 
YTD 2011
 
% Change
 
 
YTD 2012
 
YTD 2011
 
% Change
Residential
15,061

 
15,213

 
(1
)%
 
Residential
15,062

 
15,213

 
(1
)%
Commercial
16,428

 
16,461

 
0
 %
 
Commercial
19,573

 
19,799

 
(1
)%
Industrial
9,946

 
9,706

 
2
 %
 
Industrial
11,909

 
11,745

 
1
 %
Other (a)
958

 
1,034

 
(7
)%
 
Other (a)
958

 
1,034

 
(7
)%
 
42,393

 
42,414

 
0
 %
 
 
47,502

 
47,791

 
(1
)%
Choice
5,109

 
5,377

 
(5
)%
 
 
 
 
 
 
 
TOTAL SALES
47,502

 
47,791

 
(1
)%
 
 
 
 
 
 
 
________________
 
 
 
 
 
 
 
 
 
 
 
 
(a) 2011 excludes 2,102 GWh related to a wholesale contract terminated Dec 2011