Segment Information

6 Months Ended

Jun. 30, 2011

NOTE 14 — SEGMENT INFORMATION

The Company sets strategic goals, allocates resources and evaluates performance based on the following structure:

Electric Utility segment consists principally of Detroit Edison, which is engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1 million customers in southeastern Michigan.

Gas Utility segment consists of MichCon and Citizens. MichCon is engaged in the purchase, storage, transportation, distribution and sale of natural gas to approximately 1.2 million customers throughout Michigan and the sale of storage and transportation capacity. Citizens distributes natural gas in Adrian, Michigan to approximately 17,000 customers.

Gas Storage and Pipelines consists of natural gas pipeline, gathering and storage businesses.

Unconventional Gas Production is engaged in unconventional gas and oil project development and production.

Power and Industrial Projects is comprised of coke batteries and pulverized coal projects, reduced emission fuel and steel industry fuel-related projects, on-site energy services, renewable power generation, landfill gas recovery and coal transportation, marketing and trading.

Energy Trading consists of energy marketing and trading operations.

Corporate & Other, includes various holding company activities, holds certain non-utility debt and energy-related investments.

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of production tax credits and net operating losses if applicable. The MBT provision of the utility subsidiaries is determined on an individual company basis and recognizes the tax benefit of various tax credits and net operating losses if applicable. See Note 2 for a discussion of the MCIT, which replaces the MBT effective January 1, 2012. The subsidiaries record federal and state income taxes payable to or receivable from DTE Energy based on the federal and state tax provisions of each company.

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of power sales, gas sales and coal transportation services in the following segments:


	Three Months Ended						Six Months Ended
	June 30						June 30
(in Millions)	2011			2010			2011			2010
Electric Utility	$	9		$	9		$	18		$	15
Gas Utility		1			(1	)		1			—
Gas Storage and Pipelines		4			1			6			2
Power and Industrial Projects		63			70			89			72
Energy Trading		15			18			37			44
Corporate & Other		(11	)		(12	)		(28	)		(33	)

	$	81		$	85		$	123		$	100

Financial data of the business segments follows:


	Three Months Ended						Six Months Ended
	June 30						June 30
(in Millions)	2011			2010			2011			2010
Operating Revenues
Electric Utility	$	1,240		$	1,208		$	2,433		$	2,354
Gas Utility		242			232			931			987
Gas Storage and Pipelines		23			21			48			42
Unconventional Gas Production		10			8			18			16
Power and Industrial Projects		287			291			522			543
Energy Trading		306			117			628			403
Corporate & Other		1			—			2			—
Reconciliation & Eliminations		(81	)		(85	)		(123	)		(100	)

Total	$	2,028		$	1,792		$	4,459		$	4,245


Net Income (Loss) Attributable to DTE Energy by Segment:
Electric Utility	$	103		$	87		$	188		$	178
Gas Utility		(3	)		19			80			98
Gas Storage and Pipelines		14			10			29			24
Unconventional Gas Production		(1	)		(2	)		(3	)		(5	)
Power and Industrial Projects		5			22			15			40
Energy Trading		12			(26	)		14			12
Corporate & Other (1)		72			(24	)		55			(32	)

Net Income Attributable to DTE Energy	$	202		$	86		$	378		$	315


(1)		The 2011 net income for Corporate & Other includes an income tax benefit of $88 million related to the enactment of the MCIT in the second quarter of 2011. See Note 2.