DTE Energy 2012 Annual Report Download - page 12

Table of Contents
authority to provide storage and related services in interstate commerce at market-based rates. DTE Gas provides transportation services in interstate commerce
at cost-based rates approved by the MPSC and filed with the FERC.
We are subject to the requirements of other regulatory agencies with respect to safety, the environment and health.
See Note 11 of the Notes to the Consolidated Financial Statements in Item 8 of this Report.
Energy Assistance Program
Energy assistance programs, funded by the federal government and the State of Michigan, remain critical to DTE Gas’ ability to control its uncollectible
accounts receivable and collections expenses. DTE Gas’ uncollectible accounts receivable expense is directly affected by the level of government-funded
assistance its qualifying customers receive. We work continuously with the State of Michigan and others to determine whether the share of funding allocated to
our customers is representative of the number of low-income individuals in our service territory. We also partner with federal, state and local officials to
attempt to increase the share of low-income funding allocated to our customers. Changes in the level of funding provided to our low-income customers will
affect the level of uncollectible expense.
Strategy and Competition
Our strategy is to be the preferred provider of natural gas services in Michigan. We expect future sales volumes to decline due to reduced natural gas
usage by customers due to more efficient furnaces and appliances, and an increased emphasis on conservation of energy usage. We continue to provide energy-
related services that capitalize on our expertise, capabilities and efficient systems. We continue to focus on lowering our operating costs by improving operating
efficiencies.
Competition in the gas business primarily involves other natural gas transportation providers, as well as providers of alternative fuels and energy
sources. The primary focus of competition for end user transportation is cost and reliability. Some large commercial and industrial customers have the ability
to switch to alternative fuel sources such as coal, electricity, oil and steam. If these customers were to choose an alternative fuel source, they would not have a
need for our end-user transportation service. In addition, some of these customers could bypass our pipeline system and have their gas delivered directly from
an interstate pipeline. We compete against alternative fuel sources by providing competitive pricing and reliable service, supported by our storage capacity.
Our extensive transportation pipeline system has enabled us to market 400 to 500 Bcf annually for intermediate storage and transportation services for
Michigan gas producers, marketers, distribution companies and other pipeline companies. We operate in a central geographic location with connections to
major Midwestern interstate pipelines that extend throughout the Midwest, eastern United States and eastern Canada.
DTE Gas’ storage capacity is used to store natural gas for delivery to DTE Gas' customers as well as sold to third parties, under a variety of
arrangements for periods up to three years. Prices for storage arrangements for shorter periods are generally higher, but more volatile than for longer periods.
Prices are influenced primarily by market conditions, weather and natural gas pricing.

Description
Gas Storage and Pipelines controls two natural gas storage fields, intrastate lateral and intrastate gathering pipeline systems, 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.
10