DTE ENERGY CO

DTE ENERGY CO

Previous company name
DTE HOLDINGS INC
Name change date
1/27/1995
Company Overview
DTE Energy Company is a diversified energy company involved in the development and management of energy-related businesses and services nationwide. As of December 2006, the company operated into three business units: Electric Utility, Gas Utility, and Non-Utility Operations. The company’s largest operating subsidiaries are Detroit Edison and MichCon. Detroit Edison generates, transmits and distributes electricity to 2.2 million customers in southeastern Michigan. With an 11,080 megawatt system capacity, the company uses coal, nuclear fuel, natural gas and hydroelectric pumped storage to generate its electrical output. MichCon is involved in the purchase, storage, transmission, distribution and sale of natural gas to approximately 1.3 million customers in Michigan.
DTE Energy Company was formerly known as DTE Holdings Inc. The company has registered business office in Detroit, Unites States of America. The company is also active in Bermuda represented by its subsidiary, Oil Insurance Limited.
Business Summary
DTE Energy Company (DTE Energy) is engaged in energy business. The Company’s utility operations consist of The Detroit Edison Company (Detroit Edison) and Michigan Consolidated Gas Company (MichCon). The Company also have four segments that are engaged in a variety of energy-related business. Detroit Edison is engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1 million customers in south-eastern Michigan. MichCon is engaged in the purchase, storage, transmission, gathering, distribution and sale of natural gas to approximately 1.2 million customers throughout Michigan. The other segments are involved in gas pipelines and storage; unconventional gas exploration, development and production; power and industrial projects and coal transportation and marketing, and energy marketing and trading operations.
Description and history
DTE Energy Company (DTE Energy), incorporated in 1995, is engaged in energy business. The Company’s utility operations consist of The Detroit Edison Company (Detroit Edison) and Michigan Consolidated Gas Company (MichCon). The Company also have four segments that are engaged in a variety of energy-related business. Detroit Edison is engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1 million customers in south-eastern Michigan. MichCon is engaged in the purchase, storage, transmission, gathering, distribution and sale of natural gas to approximately 1.2 million customers throughout Michigan. The other segments are involved in gas pipelines and storage; unconventional gas exploration, development and production; power and industrial projects and coal transportation and marketing, and energy marketing and trading operations.

Electric Utility

The electric utility segment consists of Detroit Edison. The generating plants are regulated by numerous federal and state governmental agencies. Electricity is generated is generated from several fossil plants, a hydroelectric pumped storage plant and a nuclear plant, and is purchased from electricity generators, suppliers and wholesalers. The electricity produced and purchased is sold to three classes of customers: residential, commercial and industrial, principally throughout south-eastern Michigan. Detroit Edison owns generating plants and facilities that are located in the State of Michigan.

Gas Utility

The gas utility segment consists of the MichCon and Citizens. The gas distribution system has a planned maximum daily send-out capacity of 2.6 billion cubic feet of gas (Bcf), with approximately 67% of the volume coming from underground storage for the year ended December 31, 2009. The Company owns distribution, transmission and storage properties that are located in the State of Michigan. The distribution system includes approximately 19,000 miles of distribution mains, approximately 1,177,000 service lines and approximately 1,312,000 active meters. The Company owns approximately 2,100 miles of transmission lines that deliver natural gas to the distribution districts and interconnect the storage fields with the sources of supply and the market areas. The Company owns 666 miles of transportation and gathering (non-utility) pipelines in the northern lower peninsula of Michigan.

Gas Storage and Pipelines

Gas Storage and Pipelines owns partnership interests in two interstate transmission pipelines and two natural gas storage fields. The pipeline and storage assets are primarily supported by long-term, fixed-price revenue contracts. The Company has a partnership interest in the Vector Pipeline (Vector), an interstate transmission pipeline, which connects Michigan to Chicago and Ontario. It also holds partnership interests in Millennium Pipeline Company, which indirectly connects southern New York State to Upper Midwest/Canadian supply, while providing transportation service into the New York City markets. The Company has storage assets in Michigan capable of storing up to 90 Bcf in natural gas storage fields located in Southeast Michigan. The Washington 10 and 28 storage facilities are storage fields having bi-directional interconnections with Vector Pipeline and MichCon providing the customers access to the Chicago, Michigan, other Midwest and Ontario markets. The customers include various utilities, pipelines, producers and marketers.

Unconventional Gas Production

The unconventional gas production business is engaged in natural gas exploration, development and production within the Barnett shale in north Texas. During the year ended December 31, 2009, the Company added proved reserves of 67 Bcfe resulting in year-end total proved reserves of 234 Bcfe. The Barnett shale wells yielded 5 Bcfe of production in 2009. Barnett shale leasehold acres increased to 69,272 gross acres (63,367 net of interest of others) excluding impairments. The Company drilled a total of 11 wells in the Barnett shale acreage. The Barnett Shale gas production requires processing to extract natural gas liquids.

Power and Industrial Projects

The power and industrial projects are comprised of projects that deliver energy products and services to industrial, commercial and institutional customers; provide coal transportation and marketing; and sell electricity from biomass-fired energy projects. This business segment provides services using project assets usually located on or near the customers’ premises in the steel, automotive, pulp and paper, airport and other industries.

The services include pulverized coal, petroleum coke supply, metallurgical coke supply, power generation, steam production, chilled water production, wastewater treatment, compressed air supply and reduced emission fuel. The Company owns and operates one gas-fired peaking electric generating plant, two biomass-fired electric generating plants and owns one coal-fired power plant.

The Company also provide coal transportation services including fuel, transportation, storage, blending and rail equipment management services. The external customers include electric utilities, merchant power producers, integrated steel mills and industrial companies with energy requirements. Additionally, the Company participate in coal marketing and the purchase and sale of emissions credits. The Company owns and operates a coal transloading terminal in South Chicago, Illinois.

The Company develops, owns and operates landfill gas recovery systems throughout the United States. Landfill gas, a byproduct of solid waste decomposition, is composed of approximately equal portions of methane and carbon dioxide. The Company develops landfill gas recovery systems that capture the gas and provide local utilities, industry and consumers with an opportunity to use a competitive, renewable source of energy, in addition to providing environmental benefits by reducing greenhouse gas emissions. This business segment performs coal mine methane extraction, in which the Company recover methane gas from mine voids for processing and delivery to natural gas pipelines.

Energy Trading

Energy Trading focuses on physical power and gas marketing and trading, structured transactions, improvement of returns from DTE Energy’s asset portfolio, optimization of contracted natural gas pipeline transportation and storage, and power transmission and generating capacity positions. The customer base is utilities, local distribution companies, pipelines, and other marketing and trading companies.

Corporate and Other

The corporate and other includes various holding company activities and holds certain non-utility debt and energy-related investments. During the year ended December 31, 2007, the Company ceased its Synthetic Fuel business operations.

Formerly known as DTE Holdings Inc

Business Line
A diversified energy company involved in the development and management of energy-related businesses and services nationwide
Subsidiary
CITIZENS GAS FUEL COMPANY
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
11/16/1949
US SIC Code
4911
Company Address
1, Energy Plaza

City province or state postal code
48226, DETROIT, MI
Phone: +1 313 235 4000
Fax: +1 313 235 6743
Country address: UNITED STATES OF AMERICA
Website url: www.dteenergy.com