Business Update Dave Meador, Executive Vice President and CFO F b February 7, 7 2012
Overview y Growth Utility Non - Utility Growth 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…
DTE Energy is an Integrated Energy Company Strong, Stable and Complementary Non-Utility Growing Utilities Businesses 80% 80% of DTE Energys Energy s 2010 Earnings 20% 20% of DTE Energys Energy s 2010 Earnings Detroit Edison Gas…
Growth and Value Creation Targeting g g 5% - 6% Long-Term g Operating p g EPS Growth DTE Energy Operating Earnings Per Share* 2.89 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E CAGR = 7% 6 * Reconciliation to GAAP…
Dividend is Well Supported Dividend Yield (as of January 2012) DTE Energy Annualized Dividend 6% 2.35 5% 4.4% 2.24 4% 2.12 3% 2% 1% 0% MS NP WR EP TE TE XP VE EG CG CG NT SO NI ST EL…
Constructive Regulatory Environment 2008 Legislation Supports Recent 2011 Detroit Edison Utility Investment Rate Order File & Use Rates with 6 month self 175 million rate increase implementation p e e tat o Full recovery/return…
Continuous Improvement Efforts Offsetting I fl ti and Inflation d Other Oth Costs C t Utility Operations and Maintenance Expense* ( millions) 1,900 350 1,635 Target 1,550 1,575** 1,550 2005 2006 2007 2008 2009 2010…
Continuous Improvement Initiatives Driving C t Customer S Satisfaction ti f ti MichCon Customer Complaints to the MPSC Key Initiatives 578 IImplemented 4 hour appointment blocks for l t d4h i t t bl k f service calls (97% ontime)…
Overview Utility Growth y Growth Non - Utility 11
Detroit Edison Investment Profile Profile, 2011 2016 Near term growth driven by mandated renewable energy and environmental investments Potential longer term investments in additional environmental or new generation P t ti l l t i…
Detroit Edison St t i O Strategic Options ti for f 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…
Detroit Edison C Coall Fl Fleett A Assessmentt Assessment* of Detroit Edison Coal-Fired Coal Fired Capacity MW Monroe largest plant comprising 40% of the M l t l t i i 40% f th coal fleet is deploying FGDs and SCRs 313 MW…
Detroit Edison R bl E Renewable Energy P tf li Portfolio Projected Operating Earnings* 55 (millions after-tax) (millions, after tax) 17 MW Biomass 30 - 35 10 - 15 120 MW Wind 2011E 2012E 2013E 2014E 2015E 2016E 26…
MichCon IInvestment t tP fil 2011 2016 Profile, Growth driven by investments in cast iron main renewal and meter move out program y p g (millions) 215 210 210 210 195 2012 2016 180 Meter Move Out 115 Main Renewal 250…
MichCon M i Renewal Main R l Program P Benefits P Program O Overview i Improved safety and reliability 10year Main Replacement 670 miles Capital Investment 500 million Accelerated replacement and retirement of poor performing…
Overview Utility Growth Non - Utility Growth 18
Gas Storage and Pipeline St Strong G Growth th Potential P t ti l in i the th Marcellus M ll Shale Sh l Bluestone Growth Opportunities Initial investment (280 million) will serve Southwestern Energy production Anticipated…
Power & Industrial Projects Reduced Emissions Fuel (REF) Overview REF facility at St. Clair Power Plant Program Overview Facilities blend proprietary additives with coal, resulting in reduced mercury and NOx emissions…
Power & Industrial Projects REF D l Development tU d t Update Utility In Annual T Credit Tax C dit Monetization Host Sites Service Tons Monetization Partnership Status Status ( of units) Date (millions) Detroit 2009 (2) 2-5…
Summary Constructive regulatory structure and focus on operational excellence and customer satisfaction enable meaningful growth at utilities and customer satisfaction enable meaningful growth at utilities Continue to see…
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030 23
Appendix
Mi hi Michigan Public P bli Service S i Commission C i i (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…
Gas Storage & Pipeline: Overview Vector Pipeline 40% Fully contracted (6 year avg avg. term) 348 miles of pipe; 120,000 H.P. of compression at five stations Millennium Pipeline 26.25% Storage 100% contracted ( 10 year avg. term)…
Barnett Shale Operating Metrics Reserves (Bcfe) Acreage Position (000s Acres) YTD September 30, 2011 Results 555 86 15 new wells on-line, 4 in progress 489 70 17 Net Production of 3.8 Bcfe 201 Proven Developed 16 234 Acres 56%…
DTE Energy Trading Reconciliation of Operating Earnings* Earnings to Economic Net Income (millions) 10 46 Energy Trading Operating 36 E Earnings* i * ( millions, after-tax) Economic net income YTD YTD equals economic gross…
Reconciliation of YTD September 30, 2011 R Reported t d to t Operating O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the…
Reconciliation of 2010 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of 2009 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of 2008 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
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