DTE Energy 2012 Annual Report Download - page 33

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Table of Contents
GAS STORAGE AND PIPELINES
Our Gas Storage and Pipelines segment consists of our non-utility gas pipelines and storage businesses.
Gas Storage and Pipelines results are discussed below:




Operating Revenues  
$91
$83
Operation and Maintenance 
16
14
Depreciation and Amortization
6
5
Taxes Other Than Income
3
2
Asset (Gains) and Losses and Reserves, Net
—
—
Operating Income 
66
62
Other (Income) and Deductions 
(28)
(25)
Income Tax Expense 
35
32
Net Income 
59
55
Noncontrolling interest
2
4
Net Income Attributable to DTE Energy 
$ 57
$51
Net income attributable to DTE Energy increased $4 million and $6 million in 2012 and 2011, respectively. The 2012 increase was primarily driven
by higher earnings from our pipeline equity investments. The 2011 increase was primarily driven by earnings from subsidiaries that were transferred from
Gas segment, increased earnings from our pipeline equity investments, and a settlement for customer gas treating services performed in prior years.
Outlook — Our Gas Storage and Pipelines business expects to continue its steady growth plan and is evaluating new pipeline and storage investment
opportunities. Millennium Pipeline has secured customers for its Phase 1 & 2 expansions, which are scheduled to be in service in 2013. Millennium's total
capacity with the Phase 1 & 2 expansion will increase from 525,000 dth/d to over 800,000 dth/d. In addition, the Company has executed an agreement with
Southwestern Energy Services Company to support its Bluestone lateral and Susquehanna gathering system. Bluestone is a 44-mile pipeline in Susquehanna
County, Pennsylvania and Broome County, New York designed to initially flow over 275,000 dth/d to both Millennium Pipeline and Tennessee Pipeline. The
southern portion of Bluestone was placed in service in the fourth quarter of 2012 and the northern portion is scheduled to be placed in service in the first
quarter of 2013. A portion of the Susquehanna gathering system was placed in service in the fourth quarter of 2012 and additional segments will be placed in
service periodically over the next few years.
POWER AND INDUSTRIAL PROJECTS
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 (REF) and sell electricity from biomass-fired energy projects.
Power and Industrial Projects results are discussed below:
31