DTE Energy 2012 Annual Report Download - page 10

Table of Contents
Choice on our financial performance and full service customer rates. We expect that in 2013 customers choosing to purchase power from alternative electric
suppliers will represent approximately 10% of retail sales.
Competition in the regulated electric distribution business is primarily from the on-site generation of industrial customers and from distributed
generation applications by industrial and commercial customers. We do not expect significant competition for distribution to any group of customers in the
near term.
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Description
Our Gas segment consists of DTE Gas and Citizens. DTE Gas is a natural gas utility 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 following major classes of service: gas sales, end user transportation, intermediate transportation, and gas storage.
Revenue by Service
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


Gas sales 
$1,150
$1,281
End user transportation 
194
185
Intermediate transportation 
58
69
Storage and other 
103
113
Total Revenue 
$1,505
$1,648
•Gas sales — Includes the sale and delivery of natural gas primarily to residential and small-volume commercial and industrial customers.
•End user transportation — 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 our
Customer Choice program. End user transportation customers purchase natural gas directly from marketers, producers or brokers and utilize our
pipeline network to transport the gas to their facilities or homes.
•Intermediate transportation — 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 our 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.
Our gas sales, end user transportation and intermediate transportation volumes, revenues and net income are impacted by weather. Given the seasonal
nature of our business, revenues and net income are concentrated in the first and fourth quarters of the calendar year. By the end of the first quarter, the
heating season is largely over, and we typically realize substantially reduced revenues and earnings in the second quarter and losses in the third quarter. The
impacts of changes in average customer usage are minimized by the RDM. Effective with the self implementation of rates on November 1, 2012, the RDM was
terminated. The DTE Gas partial rate case settlement agreement approved by the MPSC in December 2012 creates a new RDM effective November 1, 2013
which decouples weather normalized distribution revenue inside caps. The caps are tied to expected customer conservation attributable to DTE Gas' energy
efficiency program. or 1.125% in year one, increasing to 2.25% for the second and future periods.
Our operations are not dependent upon a limited number of customers, and the loss of any one or a few customers would not have a material adverse
effect on our Gas segment.
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