DTE Energy 2012 Annual Report Download - page 32
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Table of Contents
Gross margin increased $4 million in 2012 and decreased $17 million in 2011. Revenues associated with certain tracking mechanisms and surcharges
are offset by related expenses elsewhere in the Consolidated Statement of Operations. The following table details changes in various gross margin components
relative to the comparable prior period:
Weather
$ 25
Uncollectible expenses tracking mechanism
(27)
Lost and stolen gas
—
Self-implementation and rate orders
(4)
Revenue decoupling mechanism
5
Energy optimization performance incentive
7
Energy optimization revenue
10
Midstream storage and transportation revenues
(12)
Subsidiaries transferred to Gas Storage and Pipelines segment
(17)
Lower average consumption
—
Other
(4)
Increase (decrease) in gross margin
$(17)
Gas sales
123
118
End user transportation
141
140
264
258
Intermediate transportation
273
391
537
649
Operation and maintenance expense decreased $9 million in 2012 and increased $16 million in 2011. The decrease in 2012 is primarily due to
reduced uncollectible expenses of $9 million, lower legal liability expenses of $4 million and lower customer service expenses of $3 million, partially offset by
increased energy optimization expenses of $6 million and higher employee benefit-related expenses of $3 million. The increase in 2011 is primarily due to the
2010 deferral of $32 million of previously expensed costs to achieve restructuring expenses and increased energy optimization expenses of $10 million,
partially offset by reduced uncollectible expenses of $13 million, reduced expenses for subsidiaries transferred to Gas Storage and Pipelines segment of $6
million, lower customer service expenses of $5 million, and lower gas operations expenses of $4 million.
Other (income) and deductions were higher by $14 million in 2012 and lower by $5 million in 2011. The increase in 2012 was due primarily to
higher contributions to the DTE Foundation of $21 million, partially offset by lower interest expenses of $5 million. The decrease in 2011 was due primarily
to lower interest expense of $3 million.
Income tax expense was lower by $10 million in 2012. The decrease is principally due to adjustments to deferred taxes.
Outlook — We continue to move forward in our efforts to achieve operational excellence, sustained strong cash flows and earn our authorized return on
equity. We expect that our planned significant infrastructure capital expenditures will result in earnings growth. Looking forward, additional factors may
impact earnings such as weather, the outcome of regulatory proceedings, investment returns and changes in discount rate assumptions in benefit plans and
health care costs. We expect to continue our efforts to improve productivity and decrease our costs while improving customer satisfaction with consideration of
customer rate affordability.
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