2. DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
December
September
(in Millions) 31
30
2006
2007
ASSETS
Current Assets
Cash and cash equivalents $ 147
$ 156
Restricted cash 146
93
Accounts receivable (less allowance for doubtful accounts of $180 and $170,
respectively)
Customer 1,427
1,192
Collateral held by others 68
73
Other 442
292
Accrued power and gas supply cost recovery revenue 117
116
Inventories
Fuel and gas 562
570
Materials and supplies 153
186
Deferred income taxes 245
366
Assets from risk management and trading activities 461
372
Other 193
239
Current assets held for sale 74 —
3,961
3,729
Investments
Nuclear decommissioning trust funds 740
826
Other 505
453
1,245
1,279
Property
Property, plant and equipment 19,224
18,834
Less accumulated depreciation and depletion (7,773)
(7,496)
11,451
11,338
Other Assets
Goodwill 2,057
2,042
Regulatory assets 3,226
3,389
Securitized regulatory assets 1,235
1,154
Intangible assets 72
28
Notes receivable 164
107
Assets from risk management and trading activities 164
156
Prepaid pension assets 71
77
Other 139
116
Noncurrent assets held for sale 411 —
7,128
7,480
$ 23,785
Total Assets $ 23,826
The Consolidated Statements of Financial Position (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
3. DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
December
September
(in Millions, Except Shares) 31
30
2006
2007
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable $ 1,145
$ 952
Accrued interest 115
126
Dividends payable 94
87
Short-term borrowings 1,131
1,069
Current portion of long-term debt, including capital leases 354
466
Liabilities from risk management and trading activities 437
267
Deferred gains and reserves 208
347
Other 680
602
Current liabilities associated with assets held for sale 49 —
4,164
3,965
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other 5,918
5,563
Securitization bonds 1,185
1,065
Trust preferred-linked securities 289
289
Capital lease obligations 82
44
7,474
6,961
Other Liabilities
Deferred income taxes 1,465
1,739
Regulatory liabilities 765
1,185
Asset retirement obligations 1,221
1,225
Unamortized investment tax credit 120
111
Liabilities from risk management and trading activities 259
414
Liabilities from transportation and storage contracts 157
131
Accrued pension liability 388
397
Accrued postretirement liability 1,414
1,424
Deferred gains from asset sales 36
15
Nuclear decommissioning 119
129
Other 312
324
Noncurrent liabilities associated with assets held for sale 71 —
6,256
7,165
Commitments and Contingencies
42
Minority Interest 38
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized,
163,713,691 and 177,138,060 shares issued and outstanding, respectively 3,467
3,181
Retained earnings (less FIN 48 cumulative effect adjustment of $5 in 2007) 2,593
2,634
Accumulated other comprehensive loss (211)
(118)
5,849
5,697
$ 23,785
Total Liabilities and Shareholders’ Equity $ 23,826
The Consolidated Statements of Financial Position (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
4. DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months
Ended
September 30
(in Millions) 2006
2007
Operating Activities
Net Income $ 291
$ 716
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization 801
716
Deferred income taxes 24
90
Gain on sale of interests in synfuel projects (72)
(144)
Gain on sale of non-utility business —
(897)
Other asset (gains), losses and reserves, net (1)
14
Impairment of synfuel projects 124
—
Partners’ share of synfuel project losses (191)
(161)
Contributions from synfuel partners 155
177
Cumulative effect of accounting change (1)
—
Changes in assets and liabilities, exclusive of changes shown separately 53
281
Net cash from operating activities 1,183
792
Investing Activities
Plant and equipment expenditures – utility (830)
(750)
Plant and equipment expenditures – non-utility (214)
(206)
Acquisitions, net of cash acquired (27)
—
Proceeds from sale of interests in synfuel projects 203
329
Refunds to synfuel partners —
(81)
Proceeds from sale of non-utility business —
1,258
Proceeds from sale of other assets, net 44
39
Restricted cash for debt redemptions 29
52
Proceeds from sale of nuclear decommissioning trust fund assets 136
227
Investment in nuclear decommissioning trust funds (163)
(254)
Other investments (18)
(22)
Net cash from (used for) investing activities (840)
592
Financing Activities
Issuance of long-term debt 545
—
Redemption of long-term debt (672)
(340)
Short-term borrowings, net 44
(62)
Issuance of common stock 9
—
Repurchase of common stock (10)
(686)
Dividends on common stock (274)
(278)
Other (8)
(2)
Net cash used for financing activities (366)
(1,386)
(23)
Net Increase (Decrease) in Cash and Cash Equivalents 16
-
Cash and Cash Equivalents Reclassified to Assets Held for Sale (7)
88
Cash and Cash Equivalents at Beginning of the Period 147
156 $ 65
Cash and Cash Equivalents at End of the Period $
The Consolidated Statements of Cash Flows (Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
5. THE DETROIT EDISON COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Nine Months
Ended Ended
September 30 September 30
(in Millions) 2006 2006
2007 2007
$ 1,460 $ 3,685
Operating Revenues $ 1,403 $ 3,707
Operating Expenses
Fuel and purchased power 539 1,257
518 1,274
Operation and maintenance 277 991
386 1,114
Depreciation and amortization 311 646
203 583
Taxes other than income 64 198
63 204
Asset (gains) and reserves, net (1 ) (1 )
6 12
1,190 3,091
1,176 3,187
270 594
Operating Income 227 520
Other (Income) and Deductions
Interest expense 60 208
73 222
Interest income (1 ) (2 )
(2 ) (5 )
Other income (9 ) (22 )
(8 ) (26 )
Other expenses 9 29
7 22
59 213
70 213
211 381
Income Before Income Taxes 157 307
73 128
Income Tax Provision 50 100
138 253
Income Before Accounting Change 107 207
- 1
Cumulative Effect of Accounting Change - -
138 254
Reported Earnings 107 207
Adjustments
Effective tax rate normalization (3 ) (2 )
(1 ) 1
Detroit Thermal reserve - -
8 14
Regulatory asset surcharge - -
- 6
Performance Excellence Process (31 ) -
- -
September 2006 MPSC electric 38 38
- -
4 36
7 21
$ 142 $ $ 290
Operating Earnings $ 114 228
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
6. MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Nine Months
Ended Ended
September 30 September 30
(in Millions) 2006 2006
2007 2007
$ 167 $ 1,259
Operating Revenues $ 169 $ 1,335
Operating Expenses
Cost of gas 56 768
56 827
Operation and maintenance 91 320
104 324
Depreciation and amortization 24 71
25 70
Taxes other than income 13 41
13 42
Asset (gains) and losses, net (3) -
(1) 2
181 1,200
197 1,265
Operating Income (Loss) (14) 59
(28) 70
Other (Income) and Deductions
Interest expense 17 49
16 43
Interest income (2) (6)
(5) (12)
Other income (2) (6)
(2) (7)
Other expenses - 1
1 3
13 38
10 27
(27) 21
Income (Loss) Before Income Taxes (38) 43
(8) 3
Income Tax Provision (Benefit) (10) 11
(19) 18
Reported Earnings (Loss) (28) 32
Adjustments
Effective tax rate normalization 5 3
6 4
Performance Excellence Process 7 11
1 3
12 14
7 7
$ (7) $ 32
Operating Earnings (Loss) $ (21) $ 39
The Consolidated Statements of Operations (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
7. DTE Energy Debt/Equity Calculation
As of September 30, 2007
($ millions)
Short-term borrowings $ 1,069
Current portion of long-term debt, including capital leases 469
Mortgage bonds, notes and other 5,584
Securitization bonds 1,065
Capital lease obligations 74
less MichCon short-term debt (318)
less Securitization bonds, including current portion (1,185)
Total debt 6,759
Trust preferred-linked securities 289
Total preferred/ other 289
Equity 5,697
Total capitalization $ 12,744
Debt 53.0%
Preferred 2.3%
Common shareholders' equity 44.7%
Total 100.0%
8. Sales Analysis - Q3 2007
Electric Sales - Detroit Edison Service Area (GWh) Electric Revenue - Detroit Edison Service Area ($000s)
Q3 2007 Q3 2006 Q3 2007 Q3 2006
% Change % Change
Residential 4,836 4,883 -1% Residential 522,327 529,454 -1%
Commercial 5,166 4,927 5% Commercial 445,809 444,828 0%
Industrial 3,278 3,695 -11% Industrial 214,994 240,019 -10%
Other 812 814 0% Other 44,822 44,448 1%
14,092 14,319 -2% 1,227,952 1,258,749 -2%
Choice* Choice*
569 534 7% 11,595 15,355 -24%
TOTAL SALES 14,661 14,853 -1% TOTAL REVENUES 1,239,547 1,274,104 -3%
* Includes Dearborn Industrial Group sales * Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales - MichCon Service Area (Mcf) Gas Revenue - MichCon Service Area ($000s)
Q3 2007 Q3 2006 Q3 2007 Q3 2006
% Change % Change
Residential 8,620,009 7,814,094 10% Residential 109,477 104,066 5%
Commercial 2,302,481 2,171,363 6% Commercial 27,198 26,294 3%
Industrial 185,436 230,837 -20% Industrial 1,867 2,322 -20%
11,107,926 10,216,294 9% 138,542 132,682 4%
End User End User
Transportation* Transportation*
25,189,350 27,815,723 -9% 21,308 24,149 -12%
TOTAL SALES 36,297,276 38,032,017 -5% TOTAL REVENUES 159,850 156,831 2%
* Includes choice customers * Includes choice customers
Weather
Cooling Degree Days Heating Degree Days
Detroit Edison service territory MichCon service territory
Q3 2007 Q3 2006 Q3 2007 Q3 2006
% Change % Change
Actuals 613 640 -4% Actuals 107 148 -28%
Normal 537 537 n/m Normal 181 177
14% 19% -41% -16%
Deviation from normal Deviation from normal
9. 2007 Common Shares Outstanding
(millions)
Projected
Q1 Q2 Q3 FYE 2007
Weighted Average Shares Outstanding For The Period 177 175 166 171
Outstanding Shares At End Of Period 176 171 164 160
