DTE Energy 2012 Annual Report Download - page 17

Table of Contents
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Description
Corporate and Other includes various holding company activities and holds certain non-utility debt and energy-related investments.
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We are subject to extensive environmental regulation. We expect to continue recovering environmental costs related to utility operations through rates
charged to our customers. The following table summarizes our estimated significant future environmental expenditures based upon current regulations. Actual
costs to comply could vary substantially. Additional costs may result as the effects of various substances on the environment are studied and governmental
regulations are developed and implemented.
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Air $1,784
$ —
$ —
$1,784
Water 80
—
23
103
Contaminated and other sites 13
30
—
43
Estimated total future expenditures through 2020 $1,877
$30
$ 23
$1,930
Estimated 2013 expenditures $ 336
$10
$21
$ 367
Estimated 2014 expenditures $ 324
$ 6
$ 2
$ 332
Air - DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of sulfur dioxide
and nitrogen oxides. Since 2005, the EPA and the State of Michigan have issued additional emission reduction regulations relating to ozone, fine particulate,
regional haze, mercury and other air pollution. These rules have led to additional emission controls on fossil-fueled power plants to reduce nitrogen oxide and
sulfur dioxide, with further emission controls planned for reductions of mercury and other emissions. Future rulemakings could require additional controls for
sulfur dioxide, nitrogen oxides and hazardous air pollutants over the next few years.
Water - In response to an EPA regulation, DTE Electric is required to examine alternatives for reducing the environmental impacts of the cooling water
intake structures at several of its facilities. Based on the results of completed studies and expected future studies, DTE Electric may be required to install
technologies to reduce the impacts of the water intakes. However, the types of technologies are unknown at this time. The EPA has also issued an information
collection request to begin a review of steam electric effluent guidelines.
Contaminated and Other Sites - Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured
locally from processes involving coal, coke or oil. The facilities, which produced gas, have been designated as manufactured gas plant (MGP) sites. Gas
segment owns, or previously owned, fifteen such former MGP sites. DTE Electric owns, or previously owned, three former MGP sites. The Company
anticipates the cost amortization methodology approved by the MPSC for DTE Gas, which allows DTE Gas to amortize the MGP costs over a ten-year period
beginning with the year subsequent to the year the MGP costs were incurred, and the cost deferral and rate recovery mechanism for Citizens Fuel Gas
approved by the City of Adrian, will prevent MGP environmental costs from having a material adverse impact on the Company's results of operations.
We are also in the process of cleaning up other sites where contamination is present as a result of historical and ongoing utility operations. These other
sites include an engineered ash storage facility, electrical distribution substations, gas pipelines, electric generating power plants, and underground and
aboveground storage tank locations. Cleanup activities associated with these sites will be conducted over the next several years. Any significant change in
assumptions, such as remediation techniques, nature and extent of contamination and regulatory requirements, could impact the estimate of remedial action
costs for these sites and affect the Company's financial position and cash flows and the rates we charge our customers.
The EPA has published proposed rules to regulate coal ash, which may result in a designation as a hazardous waste. The EPA could apply some, or all,
of the disposal and reuse standards that have been applied to other existing hazardous wastes. Some of the regulatory actions currently being contemplated
could have a significant impact on our operations and financial position and the rates we charge our customers. It is not possible to quantify the impact of
those expected rulemakings at this time.
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