Profile: DTE Energy Co (DTE.N)
7 Mar 2014
DTE Energy Company (DTE Energy), incorporated in 1995, is a diversified energy company. The Company is engaged in utility operations consist primarily of Detroit Edison and MichCon. The Electric Utility segment consists principally of Detroit Edison. The Gas Utility segment consists of MichCon and Citizens. Its non-utility operations include Gas Storage and Pipelines. Unconventional Gas Production is engaged in unconventional gas and oil project development and production. Power and Industrial Projects consists of projects that deliver energy and utility-type products and services to industrial, commercial and institutional customers; provide coal transportation and marketing, and sell electricity from biomass-fired energy projects. Energy Trading consists of energy marketing and trading operations. Corporate and Other includes various holding company activities and holds certain non-utility debt and energy-related investments.
Electric Utility segment is engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1 million residential, commercial and industrial customers in southeastern Michigan. Its generating plants are regulated by federal and state governmental agencies, including, but not limited to, the Michigan Public Service Commission (MPSC), the Federal Energy Regulatory Commission (FERC), the United States Nuclear Regulatory Commission (NRC), the United States Environmental Protection Agency (EPA) and the Michigan Department of Environmental Quality (MDEQ). Electricity is generated from its fossil-fuel plants, a hydroelectric pumped storage plant and a nuclear plant, and is purchased from electricity generators, suppliers and wholesalers. The electricity the Company produces and purchases is sold to three major classes of customers: residential, commercial and industrial, principally throughout southeastern Michigan. Detroit Edison owns generating plants and facilities that are located in the State of Michigan. Substantially all of its property is subject to the lien of a mortgage. In December 2011, the Connors Creek (239 megawatts) and Marysville (84 megawatts) generating plants and Unit No. 5 at the St. Clair generating plant (250 megawatts) were retired consistent with Detroit Edison's operational plan. Detroit Edison has approximately 500 megatts of owned or contracted renewable energy at December 31, 2011 representing approximately 6% of electricity sold to retail customers. Approximately120 megawatts is in commercial operation at December 31, 2011. Detroit Edison owns and operates 671 distribution substations with a capacity of approximately 33,516,000 kilovolt-amperes and approximately 428,300 line transformers with a capacity of approximately 24,421,000 kVA.
MichCon is engaged in the purchase, storage, transportation, distribution and sale of natural gas to approximately 1.2 million residential, commercial and industrial customers throughout Michigan and the sale of storage and transportation capacity. Citizens distributes natural gas in Adrian, Michigan to approximately 17,000 customers. Revenue is generated by providing the classes of service, such as gas sales, end user transportation, intermediate transportation, and gas storage. Gas sales includes the sale and delivery of natural gas primarily to residential and small-volume commercial and industrial customers. End user transportation include gas delivery service provided primarily to large-volume commercial and industrial customers. Additionally, the service is provided to residential customers, and small-volume commercial and industrial customers who have elected to participate in its Customer Choice program. End user transportation customers purchase natural gas directly from producers or brokers and utilize our pipeline network to transport the gas to their facilities or homes. Intermediate transportation include gas delivery service is provided to producers, brokers and other gas companies that own the natural gas, but are not the ultimate consumers. Intermediate transportation customers utilize its gathering and high-pressure transportation system to transport the natural gas to storage fields, processing plants, pipeline interconnections or other locations. Storage and other includes revenues from natural gas storage, appliance maintenance, facility development and other energy-related services.
The Company owns distribution, storage and transportation properties that are located in the State of Michigan. Its distribution system includes approximately 19,000 miles of distribution mains, approximately 1,175,000 service pipelines and approximately 1,309,000 active meters. The Company owns approximately 2,000 miles of transmission pipelines that deliver natural gas to the distribution districts and interconnect its storage fields with the sources of supply and the market areas. The Company owns storage properties relating to four underground natural gas storage fields with an aggregate working gas storage capacity of approximately 138 billion cubic feet of gas. In addition, the Company sells storage services to third parties. It owns 67 miles of transportation and gathering (non-utility) pipelines in the northern lower peninsula of Michigan.
GAS STORAGE AND PIPELINES
Gas Storage and Pipelines consists of natural gas pipelines, gathering and storage businesses. Gas Storage and Pipelines controls two natural gas storage fields and has ownership interests in two interstate pipelines serving the Midwest, Ontario and Northeast markets. The pipeline and storage assets are primarily supported by long-term, fixed-price revenue contracts. The Pipelines business holds 40% owned Vector Pipeline; 26% owned Millennium Pipeline, and 100% owned MichCon Pipeline. The Gas Storage business holds 100% owned Washington 10, and 50% owned Washington 28.
UNCONVENTIONAL GAS PRODUCTION
The Company’s Unconventional Gas Production business is engaged in natural gas and oil exploration, development and production primarily within the Barnett shale in north Texas. Its acreage covers an area that produces high Btu gas, which provides a contribution to revenues from the value of natural gas liquids extracted from the gas stream.
POWER AND INDUSTRIAL PROJECTS
The business segment provides services using project assets usually located on or near the customers' premises in the steel, automotive, pulp and paper and airport. The Company produces metallurgical coke from two coke batteries with a capacity of 1.4 million tons per year. It has an investment in a third coke battery with a capacity of 1.2 million tons per year. The Company is an investor in entities, which sell steel industry fuel at three coke battery sites. Steel industry fuels facilities recycle tar decanter sludge, a byproduct of the coking process. It provides power generation, steam production, chilled water production, wastewater treatment and compressed air supply to industrial customers. It provides utility-type services using project assets usually located on or near the customers' premises in the automotive, airport, chemical and other industries. The Company owns and operates four biomass-fired electric generating plants with a capacity of 183 megawatts. The electric output is sold under long-term power purchase agreements. The Company owns and operates nine reduced emissions fuel facilities. The business provides coal transportation and related services, including fuel to its customers with energy requirements, which include electric utilities, merchant power producers, integrated steel mills and industrial companies. It owns and operates a coal transloading terminal which provides storage and blending services for its customers. TheCompany is also engaged in coal marketing, which includes the marketing and trading of physical coal and coal financial instruments, and forward contracts for the purchase and sale of emission allowances.
Energy Trading focuses on physical and financial power and gas marketing and trading, structured transactions, enhancement of returns from DTE Energy’s asset portfolio, and optimization of contracted natural gas pipeline transportation and storage, and power transmission and generating capacity positions. Energy Trading also provides natural gas, power and ancillary services to various utilities and producers which may include the management of associated storage and transportation contracts on the customers’ behalf under FERC Asset Management Arrangements. Its customer base is predominantly utilities, local distribution companies, pipelines, and other marketing and trading companies. The Company enters into derivative financial instruments as part of its marketing and hedging activities. Energy Trading also provides commodity risk management services to the other businesses within DTE Energy.
DTE Energy Co
One Energy Plaza
DETROIT MI 48226