DTE Energy 2012 Annual Report Download - page 13

Table of Contents
Properties
The Gas Storage and Pipelines business holds the following property:
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
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Vector Pipeline
40%
348-mile pipeline with 1,300 MMcf per day capacity
IL, IN, MI & Ontario
Millennium Pipeline
26%
182-mile pipeline with 525 MMcf per day capacity
NY
Bluestone Lateral
100%
44-mile pipeline designed to flow over 275 MMcf per day
PA & NY
Susquehanna gathering system
100%
Gathering system to transport gas to Bluestone Lateral
PA
Michigan gathering systems
100%
Gathers production gas in northern Michigan
MI
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Washington 10
100%
75 Bcf of storage capacity
MI
Washington 28
50%
16 Bcf of storage capacity
MI
The assets of these businesses are well integrated with other DTE Energy operations. Pursuant to an operating agreement, DTE Gas provides physical
operations, maintenance, and technical support for the Washington 10 and 28 storage facilities and for the DTE Gas pipeline.
Regulation
The Gas Storage and Pipelines business operates natural gas storage facilities in Michigan as intrastate facilities regulated by the MPSC and provides
intrastate storage and related services pursuant to an MPSC-approved tariff. We also provide interstate services in accordance with an Operating Statement on
file with the FERC. Vector and Millennium Pipelines provide interstate transportation services in accordance with their FERC-approved tariffs. Bluestone
Lateral is regulated as an intrastate pipeline by applicable agencies in the states of New York and Pennsylvania.
Strategy and Competition
Our Gas Storage and Pipelines business expects to continue its steady growth plan by expanding existing assets and developing new assets that are
typically supported with long−term customer commitments. We have competition from other pipelines and storage providers. The Gas Storage and Pipelines
business focuses on asset development opportunities in the Midwest−to−Northeast region to supply natural gas to meet growing demand. Much of the growth
in demand for natural gas is expected to occur in the Eastern Canada and the Northeast U.S. regions. We believe that the Vector and Millennium Pipelines are
well positioned to provide access routes and low−cost expansion options to these markets. In addition, we believe that Millennium Pipeline is well positioned
for growth in production from the Marcellus shale, especially with respect to Marcellus production in Northern Pennsylvania and along the southern tier of
New York. Gas Storage and Pipelines has executed an agreement with Southwestern Energy Services Company to support its Bluestone Lateral and
Susquehanna gathering system. Bluestone Lateral is a 44-mile pipeline in Susquehanna County, Pennsylvania and Broome County, New York with the
southern portion of the pipeline placed in service in 2012 and the northern portion scheduled to be in service in the first quarter of 2013. We expect to continue
steady growth in the Gas Storage and Pipelines business and are evaluating new pipeline and storage investment opportunities that could include additional
Millennium expansions and laterals, Bluestone laterals and gathering expansions and other Marcellus midstream development or partnering opportunities.
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Description
Power and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial and
institutional customers; produce reduced emissions fuel and sell electricity from biomass-fired energy projects. This business segment provides services using
project assets usually located on or near the customers' premises in the steel, automotive, pulp and paper, airport and other industries as follows:
Steel, Steel Industry Fuel, and Petroleum Coke: We produce metallurgical coke from two coke batteries with a capacity of 1.4 million tons per year.
We have an investment in a third coke battery with a capacity of 1.2 million tons per year. We are investors in entities which sell steel industry fuel at three
coke battery sites. Steel industry fuel facilities recycle tar decanter sludge, a byproduct of the coking process. We also provide pulverized coal and petroleum
coke to the steel, pulp and paper, and other industries.
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