DTE Energy Reports Third Quarter 2009 Results; Maintains Updated 2009 Earnings Guidance

DTE Energy Reports Third Quarter 2009 Results; Maintains Updated 2009 Earnings
Guidance

DETROIT, Oct. 29 /PRNewswire-FirstCall/ -- DTE Energy (NYSE: DTE) today
reported third quarter 2009 earnings of $158 million, or $0.96 per diluted
share, compared with $177 million, or $1.08 per diluted share, in the third
quarter of 2008.

Operating earnings for the third quarter 2009 were $157 million, or $0.95 per
diluted share, compared with third quarter 2008 operating earnings of $173
million, or $1.06 per diluted share. Operating earnings exclude non-recurring
items, certain timing-related items and discontinued operations.
Reconciliations of reported earnings to operating earnings are at the end of
this news release.

Reported earnings for the nine months ended Sept. 30, 2009, were $419 million
or $2.55 per diluted share, versus $417 million or $2.55 per diluted share in
2008. Reported earnings in 2008 included $0.50 per share related to the sale
of a portion of the company's Barnett Shale natural gas property. Year-to-date
operating earnings were $427 million or $2.61 per diluted share, compared with
$329 million or $2.00 per diluted share in 2008.

"We are very proud of what we accomplished this year," said Anthony F. Earley
Jr., DTE Energy chairman and CEO. "Our balance sheet and liquidity remain
solid, operational metrics have improved across the board and we successfully
executed key regulatory proceedings, including implementing renewable energy
and energy optimization plans, and filing rate cases at both utilities.
Continued focus on these priorities, as well as expanding our continuous
improvement efforts, has allowed DTE Energy to remain financially healthy
during these turbulent times.

"We still have work to do, however," Earley added. "Neither of our utilities
will earn their allowed rate of return this year, although continuous
improvement initiatives have allowed them to perform very well in a difficult
environment. Solid performance from the utilities, coupled with non-utility
performance that is ahead of plan, allowed us to increase our earnings
guidance earlier this month."

As previously announced, the company updated earnings guidance from $2.75 to
$3.05 per share to $3.20 to $3.40 per share at its Oct. 19, 2009, analyst
meeting.

Third quarter 2009 operating earnings results, by segment:

Utilities
Electric Utility: Operating earnings for Detroit Edison were $0.95 per
diluted share versus $0.98 in 2008. Drivers of the variance were a 7 percent
reduction in sales volume due to the economy and an additional 4 percent lower
sales volume due to cooler weather; partially offset by December 2008 and July
2009 rate increases, as well as continuous improvement and one-time cost
reductions.

Gas Utility: MichCon had a seasonal operating loss of $0.14 per diluted
share, compared with an operating loss of $0.08 per diluted share in 2008. The
quarter-over-quarter variance is primarily due to increased benefits, interest
and depreciation expenses in 2009 and a tax refund in 2008.

Non-Utilities
Gas Midstream: Operating earnings of $0.08 per diluted share were greater
than 2008 operating earnings of $0.07 per diluted share, primarily due to
increased pipeline revenues.

Unconventional Gas Production: This segment had an operating loss of $0.01
per diluted share, down from third quarter 2008 operating earnings of $0.02
per diluted share. Lower commodity prices in 2009 were the primary driver of
this variance.

Power and Industrial Projects: Operating earnings were $0.04 per diluted
share, compared with operating earnings of $0.15 per diluted share in 2008.
Earnings in 2008 were higher than normal due to higher coke production and an
intercompany interest true-up with Corporate and Other.

Energy Trading: Energy Trading had operating earnings of $0.04 per diluted
share versus operating earnings of $0.10 per diluted share in the third
quarter of 2008. Lower realized gains were the primary driver of the
quarter-over-quarter variance.

Corporate and Other: The Corporate and Other segment had an operating loss of
$0.01 per diluted share compared to the operating loss of $0.18 per diluted
share in the third quarter of 2008. Driving performance was lower interest and
a 2008 intercompany interest true-up with Power and Industrial Projects.

Outlook for 2009

"Continuous improvement efforts at DTE Energy continue to evolve, mature and
accelerate," said David E. Meador, DTE Energy executive vice-president and
chief financial officer. "I am pleased to report that our continuous
improvement initiatives are yielding substantial and sustainable results.
These successful efforts, coupled with strong earnings from our non-utilities
and one-time tax benefits, resulted in solid year-to-date earnings.

"I am also happy to report that these earnings results were achieved without
compromising on customer service, safety or system reliability," Meador added.
"The dedicated efforts of our employees toward maintaining and improving these
standards has resulted in increased reliability at our power plants, safety
results that are top decile in the industry and customer satisfaction that has
remained consistent in tough economic times. Continued focus on these metrics
remains a priority for DTE Energy."

Conference call and webcast information

This earnings announcement, as well as a package of slides and supplemental
information, is available at www.dteenergy.com.

DTE Energy plans to conduct a conference call with the investment community
hosted by Meador at 9 a.m. EDT Friday, Oct. 30, to discuss third quarter
earnings results. Investors, the news media and the public may listen to a
live internet broadcast of the meeting at www.dteenergy.com. The telephone
dial-in numbers are (877) 419-6593 or (719) 325-4887. There is no passcode.
The internet broadcast will be archived on the company's website. An audio
replay of the call will be available from 11 a.m. Oct. 30 to Nov. 13. To
access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode
7542853.

DTE Energy is a Detroit-based diversified energy company involved in the
development and management of energy-related businesses and services
nationwide. Its operating units include Detroit Edison, an electric utility
serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas
utility serving 1.2 million customers in Michigan and other non-utility,
energy businesses focused on gas pipelines and storage, coal transportation,
unconventional gas production, and power and industrial projects. Information
about DTE Energy is available at dteenergy.com.

Use of Operating Earnings Information - In this release, DTE Energy discusses
2009 operating earnings guidance. It is likely that certain items that impact
the company's 2009 reported results will be excluded from operating results.
Reconciliations to the comparable 2009 reported earnings guidance is not
provided because it is not possible to provide a reliable forecast of specific
line items. These items may fluctuate significantly from period to period and
may have a significant impact on reported earnings.

DTE Energy management believes that operating earnings provide a more
meaningful representation of the company's earnings from ongoing operations
and uses operating earnings as the primary performance measurement for
external communications with analysts and investors. Internally, DTE Energy
uses operating earnings to measure performance against budget and to report to
the Board of Directors.

The information contained herein is as of the date of this release. DTE
Energy expressly disclaims any current intention to update any forward-looking
statements contained in this release as a result of new information or future
events or developments. Words such as "anticipate," "believe," "expect,"
"projected" and "goals" signify forward-looking statements. Forward-looking
statements are not guarantees of future results and conditions but rather are
subject to various assumptions, risks and uncertainties. This release
contains forward-looking statements about DTE Energy's financial results and
estimates of future prospects, and actual results may differ materially.

Many factors may impact forward-looking statements including, but not limited
to, the following: the length and severity of ongoing economic decline
resulting in lower demand, customer conservation and increased thefts of
electricity and gas; changes in the economic and financial viability of our
customers, suppliers, and trading counterparties, and the continued ability of
such parties to perform their obligations to the Company; high levels of
uncollectible accounts receivable; access to capital markets and capital
market conditions and the results of other financing efforts which can be
affected by credit agency ratings; instability in capital markets which could
impact availability of short and long-term financing; potential for continued
loss on investments, including nuclear decommissioning and benefit plan assets
and the related increases in future expense and contributions; the timing and
extent of changes in interest rates; the level of borrowings; the
availability, cost, coverage and terms of insurance and stability of insurance
providers; the effects of weather and other natural phenomena on operations
and sales to customers, and purchases from suppliers; economic climate and
population growth or decline in the geographic areas where we do business;
environmental issues, laws, regulations, and the increasing costs of
remediation and compliance, including actual and potential new federal and
state requirements that could include carbon and more stringent mercury
emission controls, a renewable portfolio standard, energy efficiency mandates,
and a carbon tax or cap and trade structure; nuclear regulations and
operations associated with nuclear facilities; impact of electric and gas
utility restructuring in Michigan, including legislative amendments and
Customer Choice programs; employee relations and the impact of collective
bargaining agreements; unplanned outages; changes in the cost and availability
of coal and other raw materials, purchased power and natural gas; volatility
in the short-term natural gas storage markets impacting third-party storage
revenues; cost reduction efforts and the maximization of plant and
distribution system performance; the effects of competition; the uncertainties
of successful exploration of gas shale resources and challenges in estimating
gas reserves with certainty; impact of regulation by the FERC, MPSC, NRC and
other applicable governmental proceedings and regulations, including any
associated impact on rate structures; changes in and application of federal,
state and local tax laws and their interpretations, including the Internal
Revenue Code, regulations, rulings, court proceedings and audits; the amount
and timing of cost recovery allowed as a result of regulatory proceedings,
related appeals or new legislation; the cost of protecting assets against, or
damage due to, terrorism; changes in and application of accounting standards
and financial reporting regulations; changes in federal or state laws and
their interpretation with respect to regulation, energy policy and other
business issues; and binding arbitration, litigation and related appeals. New
factors emerge from time to time. We cannot predict what factors may arise or
how such factors may cause our results to differ materially from those
contained in any forward-looking statement. Any forward-looking statements
refer only as of the date on which such statements are made. We undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. This presentation should also be read in
conjunction with the "Forward-Looking Statements" section in each of DTE
Energy's and Detroit Edison's 2008 Forms 10-K and 2009 Forms 10-Q (which
sections are incorporated herein by reference), and in conjunction with other
SEC reports filed by DTE Energy and Detroit Edison.

DTE Energy Company
Consolidated Statements of Operations (Unaudited)

Three Months Nine Months
Ended Ended
September 30 September 30
------------- -------------
(in Millions, Except per Share Amounts) 2009 2008 2009 2008
---- ---- ---- ----
Operating Revenues $1,961 $2,338 $5,904 $7,159
------ ------ ------ ------

Operating Expenses
Fuel, purchased power and gas 735 1,034 2,272 3,332
Operation and maintenance 554 628 1,740 2,081
Depreciation, depletion and
amortization 266 235 738 677
Taxes other than income 63 71 204 229
Gain on sale of non-utility assets - - - (128)
Other asset (gains) and losses,
reserves and impairments, net - (5) (3) 7
--- -- -- -
1,618 1,963 4,951 6,198
----- ----- ----- -----

Operating Income 343 375 953 961
--- --- --- ---

Other (Income) and Deductions
Interest expense 143 125 409 371
Interest income (11) (5) (17) (13)
Other income (28) (34) (74) (74)
Other expenses 8 22 17 45
- -- -- --
112 108 335 329
--- --- --- ---
Income Before Income Taxes 231 267 618 632

Income Tax Provision 73 97 197 231
-- -- --- ---

Income from Continuing Operations 158 170 421 401

Discontinued Operations Income, net of
tax - 8 - 22
--- - --- --

Net Income 158 178 421 423

Less: Net Income Attributable to the
Noncontrolling Interests From
Continuing operations - 1 2 4
Discontinued operations - - - 2
--- - - -
- 1 2 6

Net Income Attributable to DTE Energy
Company $158 $177 $419 $417
==== ==== ==== ====

Basic Earnings per Common Share
Income from continuing operations $0.96 $1.03 $2.55 $2.43
Discontinued operations - 0.05 - 0.12
--- ---- --- ----
Total $0.96 $1.08 $2.55 $2.55
===== ===== ===== =====

Diluted Earnings per Common Share
Income from continuing operations $0.96 $1.03 $2.55 $2.43
Discontinued operations - 0.05 - 0.12
--- ---- --- ----
Total $0.96 $1.08 $2.55 $2.55
===== ===== ===== =====

Weighted Average Common Shares
Outstanding
Basic 165 163 164 163
Diluted 165 163 164 163

Dividends Declared per Common Share $0.53 $0.53 $1.59 $1.59

DTE Energy Company
Segment Net Income (Unaudited)

Three Months Ended September 30
--------------------------------------------------------
2009 2008
--------------------------- ---------------------------
Reported Adjust- Operating Reported Adjust- Operating
(in Millions) Earnings ments Earnings Earnings ments Earnings
-------- ------- --------- -------- ------- --------

Electric Utility $156 $- $156 $159 $- 159

Gas Utility (23) - (23) (15) 2 B (13)

Non-utility
Operations
Gas Midstream 13 - 13 11 - 11

Unconventional Gas
Production (2) - (2) 3 - 3

Power and Industrial
Projects 10 (1) A 9 26 - 26

Energy Trading 6 - 6 19 (2) C 17

-- -- -- -- -- --
Total
Non-utility
operations 27 (1) 26 59 (2) 57
-- -- -- -- -- --

Corporate and Other (2) - (2) (34) 4 C (30)

Income from
Continuing
Operations 158 (1) 157 169 4 173
--- -- --- --- - ---

Discontinued
Operations - - - 8 (8) D -

---- --- ---- ---- --- ----
Net Income $158 $(1) $157 $177 $(4) $173
==== === ==== ==== === ====

Adjustments key
A) General Motors accounts receivable bad debt reserve.
B) Costs to achieve savings from Performance Excellence Process.
C) Residual hedge impact from Antrim sale.
D) Results relating to discontinuance of synfuel operations.

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

Three Months Ended September 30
--------------------------------------------------------
2009 2008
--------------------------- ---------------------------
Reported Adjust- Operating Reported Adjust- Operating
Earnings ments Earnings Earnings ments Earnings
------- ------ -------- -------- ------- --------

Electric Utility $0.95 $- $0.95 $0.98 $- $0.98

Gas Utility (0.14) - (0.14) (0.09) 0.01 B (0.08)

Non-utility
Operations
Gas Midstream 0.08 - 0.08 0.07 - 0.07

Unconventional Gas
Production (0.01) - (0.01) 0.02 - 0.02

Power and
Industrial
Projects 0.05 (0.01) A 0.04 0.15 - 0.15

Energy Trading 0.04 - 0.04 0.11 (0.01) C 0.10

---- ----- ---- ---- ----- ----
Total
Non-utility
operations 0.16 (0.01) 0.15 0.35 (0.01) 0.34
---- ----- ---- ---- ----- ----

Corporate and
Other (0.01) - (0.01) (0.21) 0.03 C (0.18)

Income from
Continuing
Operations 0.96 (0.01) 0.95 1.03 0.03 1.06
---- ----- ---- ---- ---- ----

Discontinued
Operations - - - 0.05 (0.05) D -

----- ------ ----- ----- ------ -----
Net Income $0.96 $(0.01) $0.95 $1.08 $(0.02) $1.06
===== ====== ===== ===== ====== =====

Adjustments key
A) General Motors accounts receivable bad debt reserve.
B) Costs to achieve savings from Performance Excellence Process.
C) Residual hedge impact from Antrim sale.
D) Results relating to discontinuance of synfuel operations.

DTE Energy Company
Segment Net Income (Unaudited)

Nine Months Ended September 30
--------------------------------------------------------
2009 2008
--------------------------- ---------------------------
Reported Adjust- Operating Reported Adjust- Operating
(in Millions) Earnings ments Earnings Earnings ments Earnings
------- ------- --------- -------- ------- ---------

Electric Utility $313 $4 E $317 $251 $- $251

Gas Utility 23 - 23 33 3 B 36

Non-utility
Operations
Gas Midstream 37 - 37 27 - 27

Unconventional Gas
Production (6) - (6) 89 (81) F 8

Power and
Industrial
Projects 8 1 E 12 30 1 B 31
3 A

Energy Trading 73 - 73 36 1 B 37

--- - --- --- --- ---
Total
Non-utility
operations 112 4 116 182 (79) 103
--- - --- --- --- ---

Corporate and
Other (29) - (29) (69) 6 C (61)
2 G

Income from
Continuing
Operations 419 8 427 397 (68) 329
--- - --- --- --- ---

Discontinued
Operations - - - 20 (20) D -

---- -- ---- ---- ---- ----
Net Income $419 $8 $427 $417 $(88) $329
==== == ==== ==== ==== ====

Adjustments key
A) General Motors accounts receivable bad debt reserve.
B) Costs to achieve savings from Performance Excellence Process.
C) Residual hedge impact from Antrim sale.
D) Results relating to discontinuance of synfuel operations.
E) Chrysler accounts receivable bad debt reserve.
F) Gain on sale of Barnett Core.
G) Residual impact from Crete sale.

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)

Nine Months Ended September 30
--------------------------------------------------------
2009 2008
--------------------------- ---------------------------
Reported Adjust- Operating Reported Adjust- Operating
Earnings ments Earnings Earnings ments Earnings
-------- ------ -------- -------- ------- ---------

Electric Utility $1.91 $0.03 E $1.94 $1.54 $- $1.54

Gas Utility 0.14 - 0.14 0.20 0.02 B 0.22

Non-utility
Operations
Gas Midstream 0.23 - 0.23 0.17 - 0.17

Unconventional Gas
Production (0.04) - (0.04) 0.55 (0.50) F 0.05

Power and
Industrial
Projects 0.04 0.01 E 0.07 0.18 - 0.18
0.02 A

Energy Trading 0.45 - 0.45 0.22 - 0.22

---- ---- ---- ---- ----- ----
Total
Non-utility
operations 0.68 0.03 0.71 1.12 (0.50) 0.62
---- ---- ---- ---- ----- ----

Corporate and
Other (0.18) - (0.18) (0.43) 0.04 C (0.38)
0.01 G

Income from
Continuing
Operations 2.55 0.06 2.61 2.43 (0.43) 2.00
---- ---- ---- ---- ----- ----

Discontinued
Operations - - - 0.12 (0.12) D -

----- ----- ----- ----- ------ -----
Net Income $2.55 $0.06 $2.61 $2.55 $(0.55) $2.00
===== ===== ===== ===== ====== =====

Adjustments key
A) General Motors accounts receivable bad debt reserve.
B) Costs to achieve savings from Performance Excellence Process.
C) Residual hedge impact from Antrim sale.
D) Results relating to discontinuance of synfuel operations.
E) Chrysler accounts receivable bad debt reserve.
F) Gain on sale of Barnett Core.
G) Residual impact from Crete sale.

SOURCE DTE Energy

Media, Scott Simons, +1-313-235-8808, or Lorie N. Kessler, +1-313-235-8807,
Analysts, Dan Miner, +1-313-235-5525, or Lisa Muschong, +1-313-235-8505