DTE Energy 2011 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2011 DTE Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 38

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38

35
Consolidated Statements of Operations in the period that the tax law change is enacted.
This change in tax law required a remeasurement of the Deferred Tax Asset related to the OPEB obligation and the Deferred
Tax Liability related to the OPEB Regulatory Asset in 2010. The net impact of the remeasurement was $3 million and has been
deferred as a Regulatory Asset as the traditional rate setting process allows for the recovery of income tax costs.
In December 2003, the Medicare Act was signed into law which provides for a non-taxable federal subsidy to sponsors of
retiree health care benefit plans that provide a benefit that is at least “actuarially equivalent” to the benefit established by law.
The effects of the subsidy reduced net periodic postretirement benefit costs by $1 million in 2011, $2 million in 2010, and $4
million in 2009. At December 31, 2011, the gross amount of federal subsidies expected to be received in 2012 is estimated to
be $1 million.
Grantor Trust
MichCon maintains a Grantor Trust to fund other postretirement benefit obligations that invests in life insurance contracts and
income securities. Employees and retirees have no right, title or interest in the assets of the Grantor Trust, and the Company can
revoke the trust subject to providing the MPSC with prior notification. MichCon accounts for its investment at fair value,
approximately $13 million at December 31, 2011, with unrealized gains and losses recorded to earnings.
NOTE 15 — RELATED PARTY TRANSACTIONS
The Company has agreements with affiliated companies to provide storage and transportation services and for the purchase of
natural gas. The Company also has an agreement with a DTE Energy affiliate where it is charged for its use of their shared
capital assets. A shared services company accumulates various corporate support services expenses and charges various
subsidiaries of DTE Energy, including MichCon. MichCon participates in a defined benefit retirement plan sponsored by
another affiliate of DTE Energy.
The following is a summary of transactions with affiliated companies:
(in Millions)
Revenues
Storage and transportation services
Other services
Costs
Gas purchases
Other services and interest
Customer service and administrative and general expenses
Other
Dividends declared
Dividends paid
Transfer of subsidiaries to an affiliate
Capital contribution
2011
$ 2
3
3
17
118
80
80
12
—
2010
$ 2
3
2
20
118
70
70
—
25
2009
$ 2
5
3
20
123
50
50
—
—