DTE Energy 2014 Annual Report Download - page 26

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DTE Energy is a diversified energy company with 2014 operating revenues of approximately $12.3 billion and approximately $28.0 billion in assets.
We are the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing
electricity and natural gas sales, distribution and storage services throughout Michigan. We operate three energy-related non-utility segments with operations
throughout the United States.
The following table summarizes our financial results:
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Income from continuing operations attributable to DTE Energy Company  
$ 661
$ 666
Diluted earnings per common share from continuing operations  
$ 3.76
$ 3.88
The increase in 2014 income from continuing operations attributable to DTE Energy Company is primarily due to higher earnings in the Energy
Trading, Electric, Power and Industrial Projects, and Gas Storage and Pipelines segments. The decrease in 2013 income from continuing operations
attributable to DTE Energy Company is primarily due to lower earnings in the Energy Trading segment, partially offset by higher earnings in the Gas and
Power and Industrial Projects segments.
Please see detailed explanations of segment performance in the following Results of Operations section.
DTE Energy's strategy is to achieve long-term earnings growth, a strong balance sheet and an attractive dividend yield.
Our utilities' growth will be driven by base infrastructure, new generation and environmental compliance capital investments. We are focused on
executing plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. We operate in a constructive regulatory
environment and have solid relationships with our regulators.
We have significant investments in our non-utility businesses. We employ disciplined investment criteria when assessing growth opportunities that
leverage our assets, skills and expertise and provide diversity in earnings and geography. Specifically, we invest in targeted energy markets with attractive
competitive dynamics where meaningful scale is in alignment with our risk profile. We expect growth opportunities in the Gas Storage and Pipelines and
Power and Industrial Projects segments.
A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced short-term and
long-term financing. Near-term growth will be funded through internally generated cash flows and the issuance of debt. We have an enterprise risk
management program that, among other things, is designed to monitor and manage our exposure to earnings and cash flow volatility related to commodity
price changes, interest rates and counterparty credit risk.
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Our utility businesses require significant base capital investments each year in order to maintain and improve the reliability of asset bases, including
power generation plants, distribution systems, storage fields and other facilities and fleets. DTE Electric's capital investments over the 2015-2019 period are
estimated at $5.7 billion for base infrastructure, $1.4 billion for new generation and $400 million for environmental compliance. DTE Electric plans to seek
regulatory approval in general rate case filings and renewable energy plan filings for capital expenditures consistent with prior ratemaking treatment.
DTE Gas's capital investments over the 2015-2019 period are estimated at $1 billion for base infrastructure and $600 million for gas main renewal,
meter move out, and pipeline integrity programs. In April 2013, the MPSC issued an order approving an infrastructure recovery mechanism for DTE Gas and
authorized the recovery of the cost of service related to $77 million of annual investment in its gas main renewal, meter move out, and pipeline integrity
programs. In November 2014, DTE Gas filed an application with the MPSC for approval of an increased infrastructure recovery mechanism surcharge to
recover an additional $47 million of annual capital expenditures for its gas main renewal program. DTE Gas plans to seek regulatory approval in general rate
case filings for base infrastructure capital expenditures consistent with prior ratemaking treatment.
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