DTE Energy 2014 Annual Report Download - page 10

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Our electrical generation operations seek to provide the energy needs of our customers in a cost effective manner. With potential capacity constraints in
our MISO region, there will be increased dependency on our generation to provide reliable service and price stability for our customers. This generation will
require a large investment driven by our aging coal fleet along with increased environmental regulations.
Our distribution operations focus is on distributing energy in a safe, cost effective, and reliable manner to our customers. We seek to increase
operational efficiencies to increase our customer satisfaction at an affordable rate.
The electric Customer Choice program in Michigan gives our electric customers the option of retail access to alternative electric suppliers, subject to
limits. Customers with retail access to alternative electric suppliers represented approximately 10% of retail sales in 2014, 2013 and 2012 and consisted
primarily of industrial and commercial customers. MPSC rate orders and 2008 energy legislation enacted by the State of Michigan have placed a 10% cap on
the total retail access related migration, mitigating some of the unfavorable effects of electric retail access on our financial performance and full service
customer rates. We expect that in 2015 customers with retail access to alternative electric suppliers will represent approximately 10% of retail sales.
Competition in the regulated electric distribution business is primarily from the on-site generation of industrial customers and from distributed
generation applications by industrial and commercial customers. We do not expect significant competition for distribution to any group of customers in the
near term.
Revenues from year to year will vary due to weather conditions, economic factors, regulatory events and other risk factors as discussed in the “Risk
Factors” in Item 1A. of this Report.
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Our Gas segment consists principally of DTE Gas which is a natural gas utility engaged in the purchase, storage, transportation, distribution and sale of
natural gas to approximately 1.2 million residential, commercial and industrial customers throughout Michigan and the sale of storage and transportation
capacity.
Revenue is generated by providing the following major classes of service: gas sales, end user transportation, intermediate transportation, and gas
storage.
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Gas sales  
$ 1,093
$ 957
End user transportation 
212
198
Intermediate transportation 
59
58
Storage and other 
110
102
Total Revenue  
$ 1,474
$ 1,315
•Gas sales — Includes the sale and delivery of natural gas primarily to residential and small-volume commercial and industrial customers.
•End user transportation — Gas delivery service provided primarily to large-volume commercial and industrial customers. Additionally, the
service is provided to residential customers, and small-volume commercial and industrial customers who have elected to participate in our gas
retail access program. End user transportation customers purchase natural gas directly from marketers, producers or brokers and utilize our pipeline
network to transport the gas to their facilities or homes.
•Intermediate transportation — Gas delivery service is provided to producers, brokers and other gas companies that own the natural gas, but are
not the ultimate consumers. Intermediate transportation customers use our high-pressure transportation system to transport the natural gas to
storage fields, pipeline interconnections or other locations.
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