Dte Energy Co
In 1995, DTE Energy incorporated in the state of Michigan. Our regulated operations
consist primarily of Detroit Edison and MichCon. We also have numerous non-regulated
subsidiaries engaged in energy marketing and trading, energy services, and various
other electricity, coal and gas related businesses. DTE Energy is an exempt holding
company under the Public Utility Holding Company Act (PUHCA) of 1935.
Power Generation comprises our regulated power generation business and plants
within Detroit Edison. These plants are regulated by numerous federal and state
governmental agencies, including the MPSC, the NRC and the EPA. Electricity
is generated from Detroit Edison’s numerous fossil plants, its hydroelectric
pumped storage plant and its nuclear plant, and purchased from electricity generators,
suppliers and wholesalers. The electricity we produce and purchase is sold to
four major classes of customers: residential, commercial, industrial and wholesale,
principally throughout Michigan, the Midwest and Ontario, Canada.
Weather, economic factors and electricity prices affect sales levels to customers.
Our peak load and highest total system sales generally occur during the third
quarter of the year driven by air conditioning and other cooling-related demands.
Power generation sales are made to a diverse base of customers in both type
and number; sales levels are not dependent on any small market segment. However,
due to residential rate subsidization, less than 1% of the customers constitute
approximately 80% of the power generation margin. Additionally, business customers
who have elected to participate in the electric Customer Choice program are
having a significant unfavorable effect on our financial performance.
We purchase power from other electricity generators, suppliers and wholesalers.
These purchases supplement our generation capability to meet customer demand
during peak cycles. For example, when high temperatures occur during the summer
we require additional electricity to meet demand. This access to additional
power is an efficient and economical way to meet our obligation to customers
without increasing capital expenditures to build additional base-load power
facilities.
We continue to strive to be the preferred electricity supplier in southeast
Michigan. We believe that we can accomplish our goal by working with our customers,
communities and regulatory agencies to be a reliable low cost supplier of electricity.
To control expenses, we optimize our fuel blends thereby taking maximum advantage
of low cost, environmentally friendly low-sulfur western coals. To ensure generation
reliability we will continue to make investments in our generating plants that
will improve plant availability and improve operating efficiencies.