DTE Energy 2012 Annual Report Download - page 11

Table of Contents
Natural Gas Supply
Our gas distribution system has a planned maximum daily send-out capacity of 2.4 Bcf, with approximately 64% of the volume coming from
underground storage for 2012. Peak-use requirements are met through utilization of our storage facilities, pipeline transportation capacity, and purchased gas
supplies. Because of our geographic diversity of supply and our pipeline transportation and storage capacity, we are able to reliably meet our supply
requirements. We believe natural gas supply and pipeline capacity will be sufficiently available to meet market demands in the foreseeable future.
We purchase natural gas supplies in the open market by contracting with producers and marketers, and we maintain a diversified portfolio of natural
gas supply contracts. Supplier, producing region, quantity, and available transportation diversify our natural gas supply base. We obtain our natural gas
supply from various sources in different geographic areas (Gulf Coast, Mid-Continent, Canada and Michigan) under agreements that vary in both pricing and
terms. Gas supply pricing is generally tied to the New York Mercantile Exchange and published price indices to approximate current market prices combined
with MPSC approved fixed price supplies with varying terms and volumes through 2015.
We are directly connected to interstate pipelines, providing access to most of the major natural gas supply producing regions in the Gulf Coast, Mid-
Continent and Canadian regions. Our primary long-term transportation supply contracts are as follows:




Great Lakes Gas Transmission L.P. 80
2013
Viking Gas Transmission Company 51
2013
Vector Pipeline L.P. 50
2015
ANR Pipeline Company 195
2017
Panhandle Eastern Pipeline Company 75
2029
Properties
We own distribution, storage and transportation properties that are located in the State of Michigan. Our distribution system includes approximately
19,000 miles of distribution mains, approximately 1,173,000 service pipelines and approximately 1,309,000 active meters. We own approximately 2,000 miles
of transmission pipelines that deliver natural gas to the distribution districts and interconnect our storage fields with the sources of supply and the market
areas.
We own storage properties relating to four underground natural gas storage fields with an aggregate working gas storage capacity of approximately
139 Bcf. These facilities are important in providing reliable and cost-effective service to our customers. In addition, we sell storage services to third parties.
Most of our distribution and transportation property is located on property owned by others and used by us through easements, permits or licenses.
Substantially all of our property is subject to the lien of a mortgage.
We own 68 miles of transportation and gathering (non-utility) pipelines in the northern lower peninsula of Michigan. We lease a portion of our pipeline
system to the Vector Pipeline Partnership (an affiliate) through a capital lease arrangement. See Note 18 of the Notes to Consolidated Financial Statements in
Item 8 of the Report.
Regulation
DTE Gas' business is subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs, including the
costs of regulatory assets, conditions of service, accounting and operating-related matters. DTE Gas' MPSC-approved rates charged to customers have
historically been designed to allow for the recovery of costs, plus an authorized rate of return on our investments. DTE Gas operates natural gas storage and
transportation facilities in Michigan as intrastate facilities regulated by the MPSC and provides intrastate storage and transportation services pursuant to an
MPSC-approved tariff.
DTE Gas also provides interstate storage and transportation services in accordance with an Operating Statement on file with the FERC. The FERC's
jurisdiction is limited and extends to the rates, non-discriminatory requirements, and the terms and conditions applicable to storage and transportation
provided by DTE Gas in interstate markets. FERC granted DTE Gas
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