DTE Energy 2012 Annual Report Download - page 8

Table of Contents
Fuel Supply and Purchased Power
Our power is generated from a variety of fuels and is supplemented with purchased power. We expect to have an adequate supply of fuel and purchased
power to meet our obligation to serve customers. Our generating capability is heavily dependent upon the availability of coal. Coal is purchased from various
sources in different geographic areas under agreements that vary in both pricing and terms. We expect to obtain the majority of our coal requirements through
long-term contracts, with the balance to be obtained through short-term agreements and spot purchases. We have long-term and short-term contracts for the
purchase of approximately 22.1 million tons of low-sulfur western coal to be delivered from 2013 through 2015 and approximately 3.5 million tons of
Appalachian coal to be delivered from 2013 through 2014. All of these contracts have pricing schedules. We have approximately 81% of our 2013 expected coal
requirements under contract. Given the geographic diversity of supply, we believe we can meet our expected generation requirements. We lease a fleet of rail cars
and have our expected western coal rail requirements under contract through 2015. All of our expected eastern coal rail requirements are under contract through
2013. Our expected vessel transportation requirements for delivery of purchased coal to our generating facilities are under contract through 2014.
DTE Electric participates in the energy market through MISO. We offer our generation in the market on a day-ahead and real-time basis and bid for
power in the market to serve our load. We are a net purchaser of power that supplements our generation capability to meet customer demand during peak cycles
or during major plant outages.
Properties
DTE Electric owns generating plants and facilities that are located in the State of Michigan. Substantially all of our property is subject to the lien of a
mortgage.
Generating plants owned and in service as of December 31, 2012 are as follows:
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Fossil-fueled Steam-Electric
Belle River (b)
St. Clair
1,036
9.8
1984 and 1985
Greenwood
St. Clair
793
7.5
1979
Harbor Beach
Huron
95
0.9
1968
Monroe (c)
Monroe
3,047
28.9
1971, 1973 and 1974
River Rouge
Wayne
524
5.0
1957 and 1958
St. Clair
St. Clair
1,379
13.0
1953, 1954, 1959, 1961 and 1969
Trenton Channel
Wayne
675
6.4
1949 and 1968
7,549
71.5
Oil or Gas-fueled Peaking Units
Various
1,018
9.6
1966-1971, 1981 and 1999
Nuclear-fueled Steam-Electric Fermi 2 (d)
Monroe
1,086
10.3
1988
Hydroelectric Pumped Storage
Ludington (e)
Mason
917
8.6
1973
10,570
100.0
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(a) Summer net rated capabilities of generating plants in service are based on periodic load tests and are changed depending on operating experience, the physical condition of units,
environmental control limitations and customer requirements for steam, which otherwise would be used for electric generation.
(b) The Belle River capability represents DTE Electric’s entitlement to 81% of the capacity and energy of the plant. See Note 9 of the Notes to the Consolidated Financial Statements
in Item 8 of this Report.
(c) The Monroe generating plant provided 37% of DTE Electric’s total 2012 power generation.
(d) Fermi 2 has a design electrical rating (net) of 1,150 MW.
(e) Represents DTE Electric’s 49% interest in Ludington with a total capability of 1,872 MW. See Note 9 of the Notes to the Consolidated Financial Statements in Item 8 of this
Report.
In 2008, a renewable portfolio standard was established for Michigan electric providers targeting 10% of electricity sold to retail customers from
renewable energy by 2015. DTE Electric has approximately 720 MW of owned or contracted renewable energy, principally wind turbines located in Gratiot,
Tuscola, Huron and Sanilac counties in Michigan, at December 31, 2012 representing approximately 8% of electricity sold to retail customers. Approximately
510 MW is in commercial operation at December 31, 2012 with an additional 210 MW expected in commercial operation in 2013 or early 2014.
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