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Previous: LPT VARIABLE INSURANCE SERIES TRUST, NSAR-B, 1998-02-27 |
Next: MUNI INVEST TR FD INV GR PORT BBB OR BET LNG INT TRM SE DAF, 24F-2NT, 1998-02-27 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from
the Provisions of the Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
DTE ENERGY COMPANY
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business
of claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
DTE Energy Company ("Claimant") is a Michigan corporation,
incorporated on January 26, 1995. From the date of its incorporation through
December 31, 1995, Claimant was a wholly owned subsidiary of The Detroit Edison
Company, a Michigan public utility. On January 1, 1996, pursuant to a share
exchange accomplished in accordance with the provisions of the Michigan
Business Corporation Act, all outstanding Common Stock of The Detroit Edison
Company was exchanged on a one-for-one basis for the Common Stock of Claimant.
Thus, as of January 1, 1996, Claimant became a publicly held corporation with
the purpose of holding the outstanding stock of its subsidiaries. Claimant's
address is 2000 2nd Avenue, Detroit, Michigan 48226-1279.
The Detroit Edison Company ("Detroit Edison"), incorporated in
Michigan since 1967, is a Michigan public utility engaged in the generation,
purchase, transmission, distribution and sale of electric energy in a 7,600
square-mile area in southeastern Michigan. It also owns and operates a steam
heating system in Detroit, Michigan. On January 1, 1996, Detroit Edison
became a wholly owned subsidiary of Claimant. Detroit Edison's address is 2000
2nd Avenue, Detroit, Michigan 48226-1279.
Midwest Energy Resources Company ("MERC") is a Michigan
corporation established on June 5, 1974. MERC is a wholly owned subsidiary
of Detroit Edison and is engaged in operating a coal-transshipment facility in
Superior, Wisconsin.
The Edison Illuminating Company of Detroit ("EIC") is a
Michigan corporation established on May 28, 1886. EIC is a wholly owned
subsidiary of Detroit Edison and holds real estate.
St. Clair Energy Corporation ("St. Clair") is a Michigan
corporation established on August 27, 1906. St. Clair is a wholly owned
subsidiary of Detroit Edison and is engaged in fuel procurement.
MERC, EIC and St. Clair have offices at 2000 2nd Avenue,
Detroit, Michigan 48226-1279.
<PAGE> 2
DE Energy Services, Inc. ("DE ES") is a Michigan
corporation established on August 29, 1994. This corporation became a
wholly owned subsidiary of Claimant on January 1, 1996. DE ES has offices
at 425 S. Main, Ann Arbor, Michigan 48107 and it is engaged in energy services
and landfill gas projects.
DTE Biomass Energy, Inc., formerly Biomass Energy Systems,
Inc., ("DTE Biomass") is a Michigan corporation established on July 15, 1993,
with offices at 425 S. Main, Ann Arbor, Michigan 48107. On January 1, 1995
Biomass became a wholly owned subsidiary of DE ES and it is engaged in landfill
gas projects.
RES Power, Inc. ("RES") is a Michigan corporation established
on January 6, 1983, with offices at 425 S. Main, Ann Arbor, Michigan 48107. RES
is a wholly owned subsidiary of DTE Biomass and it is engaged in landfill gas
projects.
Sonoma Energy Systems, Inc. ("Sonoma") is a Michigan
corporation established on January 24, 1994, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. Sonoma is a wholly owned subsidiary of DTE Biomass and
it is engaged in landfill gas projects.
Riverview Gas Producers, Inc. ("Riverview") is a Michigan
corporation established on August 16, 1993, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. Riverview is a wholly owned subsidiary of DTE Biomass
and it is engaged in landfill gas projects.
DTE Arbor Gas Producers, Inc. ("DTE Arbor") is a Michigan
corporation established on July 10, 1996, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. DTE Arbor is a wholly owned subsidiary of DTE Biomass and
it is engaged in landfill gas projects.
Plainville Gas Producers, Inc., formerly Sumpter Gas
Producers, Inc., ("Plainville") is a Michigan corporation established on June 2,
1994, with offices at 425 S. Main, Ann Arbor, Michigan 48107. Plainville is a
wholly owned subsidiary of DTE Biomass and it is engaged in landfill gas
projects.
Belleville Gas Producers, Inc. ("Belleville") is a Michigan
corporation established November 8, 1996 with offices at 425 S. Main, Ann
Arbor, Michigan, 48107. Belleville is a wholly owned subsidiary of DTE Biomass
and it is engaged in landfill gas projects.
Escambia Gas Producers, Inc., formerly ESCA Gas Producers,
Inc., ("Escambia") is a Michigan corporation established November 18, 1996, with
offices at 425 S. Main, Ann Arbor, Michigan 48107. Escambia is a wholly owned
subsidiary of DTE Biomass and it is engaged in landfill gas projects.
Fayetteville Gas Company, L.L.C. ("Fayetteville") is a North
Carolina company formed October 20, 1994. DTE Biomass purchased an 100%
interest in Fayetteville on December 1, 1997. Offices are located at 425 S.
Main, Ann Arbor, Michigan 48107. Fayetteville is a wholly owned subsidiary of
DTE Biomass and it is engaged in landfill gas projects.
Lycoming Gas Producers, Inc. ("Lycoming") is a Michigan
corporation established August 18, 1997, with offices at 425 S. Main, Ann Arbor,
Michigan 48107. Lycoming is a wholly owned subsidiary of DTE Biomass and it is
engaged in landfill gas projects.
Roxana Gas Producers, Inc. ("Roxana") is a Michigan
corporation established August 18, 1997, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. Roxana is a wholly owned subsidiary of DTE Biomass and
it is engaged in landfill gas projects.
DTE Energy Services, Inc., formerly Edison Energy Services,
Inc., ("DTE ES") is a Michigan corporation established on June 29, 1994, with
offices at 425 S. Main, Ann Arbor, Michigan 48107. DTE ES is a wholly owned
subsidiary of DE ES and it is engaged in energy services activities.
PCI Enterprises Company ("PCI") is a Michigan corporation
established on August 1, 1995, with offices at 425 S. Main, Ann Arbor,
Michigan 48107. PCI is a wholly owned subsidiary of DTE ES and it operates a
pulverized coal facility.
EES Coke Battery Company, Inc. ("EES Coke") is a Michigan
corporation established on October 29, 1996, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. EES Coke is a wholly owned subsidiary of DTE ES and it
operates a coke battery facility.
DTE Coal Services, Inc. ("DTE Coal") is a Michigan corporation
established on July 10, 1996, with offices at 425 S. Main, Ann Arbor, Michigan
48107. DTE Coal is a wholly owned subsidiary of DE ES and it is engaged in
selling and transporting coal to third parties.
DTE CS Rail Services, Inc. ("DTE CS") is a Michigan
Corporation established November 18, 1997, with offices at 425 S. Main, Ann
Arbor, Michigan 48107. DTE CS is a wholly owned subsidiary of DTE Coal and it
is engaged in rail car repair and maintenance.
DTE Capital Corporation ("DTE Capital") is a Michigan
corporation established on September 6, 1995. This corporation became a wholly
owned subsidiary of Claimant on January 1, 1996. DTE Capital has offices
at 2000 2nd Avenue, Detroit, Michigan 48226-1279, and it provides financial
services for the non-utility affiliates of Claimant.
Syndeco Realty Corporation ("Syndeco") is a Michigan
corporation established on August 22, 1986. This corporation became a
wholly owned subsidiary of Claimant on January 1, 1996. Syndeco has offices
at 2000 2nd Avenue, Detroit, Michigan 48226-1279, and it is engaged in real
estate projects.
Edison Development Corporation ("EDC") is a Michigan
corporation established on May 24, 1994. This corporation became a
wholly owned subsidiary of Claimant on January 1, 1996. EDC has offices at
2000 2nd Avenue, Detroit, Michigan 48226-1279 and it is engaged in business
development.
EdVenture Capital Corp. ("EdVenture") is a Michigan
Corporation established on May 24, 1994, with offices at 2000 2nd Avenue,
Detroit, Michigan 48226-1279. EdVenture is a wholly owned subsidiary of EDC
and it is engaged in equity investment.
DTE Energy Trading, Inc., formerly Huron Energy Services,
Inc., ("DTE Energy Trading") is a Michigan corporation established on September
6, 1995. DTE Energy Trading has offices at 101 N. Main, Ann Arbor,
Michigan 48104 and it is engaged in wholesale and retail energy marketing.
DTE Engineering Services, Inc., formerly UTS Systems, Inc.,
("DTE Engineering Services") is a Michigan corporation established on April 23,
1985. This corporation became a wholly owned subsidiary of Claimant on January
1, 1996. DTE Engineering Services has offices at 2000 2nd Avenue, Detroit,
Michigan 48226-1279 and it is engaged in professional engineering services.
Great Lakes Energy Products, Inc. ("Great Lakes") is a
Michigan corporation established December 30, 1996, with offices at 2000 2nd
Avenue, Detroit, Michigan 48226-1279. Great Lakes is a wholly owned subsidiary
of Claimant and it is engaged in Equity Investment.
DTE Edison America, Inc., ("EA") is a Michigan corporation
established on October 16, 1996, with offices at 2000 2nd Avenue, Detroit,
Michigan 48226-1279. EA is a wholly owned subsidiary of Claimant and it is
engaged in the retail marketing of energy and non-energy related products.
2. A brief description of the properties of Claimant and each of
its subsidiary public utility companies used for the generation, transmission,
and distribution of electric energy for sale, or for the production,
transmission, and distribution of natural or manufactured gas, indicating the
location of principal generating plants, transmission lines, producing fields,
gas manufacturing plants, and electric and gas distribution facilities,
including all such properties which are outside the State in which Claimant and
its subsidiaries are organized and all transmission or pipelines which deliver
or receive electric energy or gas at the borders of such State.
Claimant - none
The Detroit Edison Company maintains the following generating facilities which
are located in the State of Michigan, as follows:
2
<PAGE> 3
<TABLE>
<CAPTION>
Location By Summer Net
Michigan Rated Capability (1)(2)
Plant Name County Megawatts (MW) %
- -------------------------------- ------- -------------- ---
<S> <C> <C> <C>
Fossil-fuel and Steam-Electric
Belle River (3) St. Clair 1,026 10.0%
Greenwood St. Clair 785 7.7
Harbor Beach Huron 103 1.0
Marysville St. Clair 167 1.6
Monroe (4) Monroe 3,000 29.3
River Rouge Wayne 500 4.9
St. Clair St. Clair 1,379 13.5
Trenton Channel Wayne 725 7.1
------ ------
7,685 75.1%
Oil or Gas-fueled Peaking
Units Various 525 5.1
Nuclear-fueled Steam-
Electric-Fermi 2 (5) Monroe 1,098 10.7
Hydroelectric Pumped Storage
Ludington (6) Mason 917 9.1
------ ------
10,225 100.0%
====== ======
</TABLE>
===============
(1) Summer net rated capabilities of generating units 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.
(2) Excludes two oil-fueled units, River Rouge Unit No. 1 (206 MW) and St.
Clair Unit No. 5 (250 MW), and one coal-fueled power plant, Conners Creek (236
MW), all in economy reserve status.
(3) The Belle River capability represents Detroit Edison's entitlement to
81.39% of the capacity and energy of the plant.
(4) The Monroe Power Plant provided approximately 43% of Detroit Edison's
total 1997 power plant generation.
(5) Fermi 2 has a design electrical rating (net) of 1,139 MW.
(6) Represents Detroit Edison's 49% interest in Ludington with a total
capability of 1,872 MW. Detroit Edison is leasing 312 MW to The Toledo Edison
Company for the six-year period June 1, 1996 through May 31, 2002.
Detroit Edison and Consumers Power Company are parties to an Electric
Coordination Agreement providing for emergency assistance, coordination of
operations and planning for bulk power supply, with energy interchanged at nine
interconnections. Detroit Edison and Consumers Power Company also have
interchange agreements to exchange electric energy through 12 interconnections
with The Toledo Edison Company, Indiana Michigan Power Company, Northern Indiana
Public Service Company and Ontario Hydro. In addition, Detroit Edison has
interchange agreements for the exchange of electric energy with Michigan South
Central Power Agency, Rouge Steel Company and the City of Wyandotte.
Transmission and Distribution. Detroit Edison owns and operates
within the State of Michigan 583 distribution substations with a capacity of
17,395,300 kilovolt amperes and 406,233 line transformers with a capacity of
19,078,363 kilovolt amperes. Electric transmission and distribution lines
owned and in service as of December 31, 1997 are as follows:
<TABLE>
<CAPTION>
Overhead Lines Underground Lines
-------------------- ------------------
Conduit
Pole Circuit Bank Cable
Design Line Voltage-KV Miles Miles Miles Miles
- ---------------------- ------ ------- ------- -----
<S> <C> <C> <C> <C>
Transmission-
Under 24 KV - - 63 274
24 KV 105 105 257 1,043
40 KV 2,776 2,776 91 331
120 KV 1,148 1,663 - 179
140 KV 31 31 - -
230 KV 77 87 - -
345 KV 525 954 - 7
------ ----- ----- ------
4,662 5,616 411 1,834
=====
Distribution-
4.8 KV and 13.2 KV 31,353 437 12,728
------ ----- ------
Grand Total 36,015 848 14,562
====== ===== ======
</TABLE>
3. The following information for the last calendar year with
respect to Claimant and each of its subsidiary public utility companies:
3
<PAGE> 4
(a) Number of kwh. of electric energy sold (at retail or
wholesale), and Mcf. of natural or manufactured gas distributed at retail.
Claimant - None
Detroit Edison - 50,642,290,000 Kwh.
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which each such
company is organized.
Claimant - None
Detroit Edison - None
(c) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each such company
is organized, or at the State line.
Claimant - None
Detroit Edison - 1,319,418,000 Kwh. delivered under
interchange power agreements for the year
ended December 31, 1997.
(d) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which each such company is
organized or at the State line.
Claimant - None
Detroit Edison - 4,474,723,000 Kwh. purchased under
interchange power agreements for the year
ended December 31, 1997.
4. The following information for the reporting period with
respect to Claimant and each interest it holds directly or indirectly in an EWG
or a foreign utility company, stating monetary amounts in United States
dollars:
Not applicable.
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for the
distribution at retail of natural or manufactured gas.
(b) Name of each system company that holds an interest in such EWG
or foreign utility company; and description of the interest held.
(c) Type and amount of capital invested, directly or indirectly,
by the holding company claiming exemption; any direct or indirect guarantee of
the security of the EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial obligation for which there
is recourse, directly or indirectly, to the holding
4
<PAGE> 5
company claiming exemption or another system company, other than the EWG or
foreign utility company.
(d) Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
(e) Identify any service, sales or construction contract(s)
between the EWG or foreign utility company and a system company, and describe
the services to be rendered or goods sold and fees or revenues under such
agreement(s).
EXHIBIT A
A consolidating statement of income and surplus of the Claimant and its
subsidiary companies for the calendar year 1997, together with a consolidating
balance sheet of Claimant and its subsidiary companies as of the close of
such calendar year follows.
EXHIBIT B
A Financial Data Schedule for the Claimant follows as Exhibit B.
EXHIBIT C
Not applicable.
The above-named Claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 27th day of February, 1998.
DTE Energy Company
--------------------------
(Name of Claimant)
By /s/ David E. Meador
------------------------
Vice President
and Controller
CORPORATE SEAL
Attest:
/s/ Susan M. Beale
- --------------------------
Susan M. Beale
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Susan M. Beale, Vice President and Corporate Secretary
- ------------------------------------------------------
(Name) (Title)
2000 2nd Avenue, Detroit, Michigan 48226-1279
- ---------------------------------------------
(Address)
5
<PAGE> 6
EXHIBIT A
DTE ENERGY COMPANY
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
THE DETROIT DE ENERGY DTE EDISON
DTE EDISON SERVICES, AMERICA DTE
ENERGY COMPANY INC. INC. CAPITAL
COMPANY CONSOLIDATED CONSOLIDATED CORPORATION CORPORATION
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $ - $ 3,657,018 $ 104,839 $ - $ -
OPERATING EXPENSES
Fuel and purchased power - 836,620 - - -
Operation and maintenance 3,589 872,773 97,525 1,370 313
Depreciation and amortization - 657,935 2,156 - -
Taxes other than income - 264,486 216 - 13
Other - 22,114 - - -
-----------------------------------------------------------------------
Total operating expenses 3,589 2,653,928 99,897 1,370 326
-----------------------------------------------------------------------
OPERATING INCOME (LOSS) (3,589) 1,003,090 4,942 (1,370) (326)
-----------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense (3,552) (281,924) (15,872) (70) (1,597)
Preferred stock dividends of subsidiary - - - - -
Other - net 433,043 (15,555) 1,432 - 6,441
-----------------------------------------------------------------------
Total interest expense and other 429,491 (297,479) (14,440) (70) 4,844
-----------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES 425,902 705,611 (9,498) (1,440) 4,518
INCOME TAXES (2,640) 288,604 (27,044) (313) 1,580
-----------------------------------------------------------------------
NET INCOME (LOSS) $ 428,542 $ 417,007 $ 17,546 $ (1,127) $ 2,938
=======================================================================
Common Shares Outstanding - Average (Thousands)
Earnings Per Share of Common Stock
<CAPTION>
EDISON GREAT LAKES DTE
DEVELOPMENT DTE ENERGY ENERGY SYNDECO ENGINEERING
CORPORATION TRADING, PRODUCTS, REALTY SERVICES,
CONSOLIDATED INC. INC. CORPORATION INC.
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 614 $ 125 $ - $ 1,500 $ 381
OPERATING EXPENSES
Fuel and purchased power - 199 - - -
Operation and maintenance 906 1,542 - 516 381
Depreciation and amortization - 80 - - -
Taxes other than income - 179 - 26 -
Other - - - - -
---------------------------------------------------------------------------
Total operating expenses 906 2,000 - 542 381
---------------------------------------------------------------------------
OPERATING INCOME (LOSS) (292) (1,875) - 958 -
---------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense - (43) - - -
Preferred stock dividends of subsidiary - - - - -
Other - net (4,989) 1 (241) 102 55
---------------------------------------------------------------------------
Total interest expense and other (4,989) (42) (241) 102 55
---------------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES (5,281) (1,917) (241) 1,060 55
INCOME TAXES (2,004) (671) - 311 22
---------------------------------------------------------------------------
NET INCOME (LOSS) $ (3,277) $ (1,246) $ (241) $ 749 $ 33
===========================================================================
Common Shares Outstanding - Average (Thousands)
Earnings Per Share of Common Stock
<CAPTION>
INTER-COMPANY
ELIMINATIONS DTE
AND ENERGY
RECLASS- COMPANY
IFICATIONS CONSOLIDATED
-----------------------------
<S> <C> <C>
OPERATING REVENUES $ - $ 3,764,477
OPERATING EXPENSES
Fuel and purchased power 28 836,847
Operation and maintenance (29) 978,886
Depreciation and amortization - 660,171
Taxes other than income - 264,920
Other - 22,114
------------------------------
Total operating expenses (1) 2,762,938
------------------------------
OPERATING INCOME (LOSS) 1 1,001,539
------------------------------
INTEREST EXPENSE AND OTHER
Interest expense 6,381 (296,677)
Preferred stock dividends of subsidiary (11,629) (11,629)
Other - net (438,346) (18,057)
------------------------------
Total interest expense and other (443,594) (326,363)
------------------------------
INCOME (LOSS) BEFORE TAXES (443,593) 675,176
INCOME TAXES 257,845
------------------------------
NET INCOME (LOSS) $ (443,593) $ 417,331
==============================
Common Shares Outstanding - Average (Thousands) 145,098
Earnings Per Share of Common Stock $ 2.88
</TABLE>
1
<PAGE> 7
DTE ENERGY COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
THE DETROIT DE ENERGY DTE EDISON
DTE EDISON SERVICES, AMERICA
ENERGY COMPANY INC. INC.
COMPANY CONSOLIDATED CONSOLIDATED CORPORATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 1,622 $ 14,710 $ 72,639 $ -
Accounts receivable
Customer - 299,706 5,008 -
Accrued unbilled revenues - 137,222 - -
Other - 62,936 13,180 -
Inventories
Fuel - 130,211 - -
Materials and supplies - 150,163 22,321 -
Other - 11,698 1,368 -
--------------------------------------------------------------------------
Total current assets 1,622 806,646 114,516 -
--------------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - 239,062 - -
Other 3,663,071 37,974 (20,638) (534)
--------------------------------------------------------------------------
Total investments 3,663,071 277,036 (20,638) (534)
--------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment - 14,203,504 284,330 -
Property under capital leases - 254,539 - -
Nuclear fuel under capital lease - 607,067 - -
Construction work in progress - 13,469 3,066 -
Less: accumulated depreciation and amortization - (6,431,342) (8,778) -
--------------------------------------------------------------------------
Total property, plant and equipment - 8,647,237 278,618 -
--------------------------------------------------------------------------
Other Assets
Regulatory assets - 855,220 - -
Other - 158,689 44,257 -
--------------------------------------------------------------------------
Total other assets - 1,013,909 44,257 -
--------------------------------------------------------------------------
TOTAL ASSETS $3,664,693 $10,744,828 $ 416,753 $ (534)
==========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ 169,214 $ 36,235 $ -
Capital leases - 109,763 - -
Accounts payable - 150,302 10,260 -
Accrued interest - 56,088 - -
Dividends payable 74,725 82,723 - -
Accrued payroll - 80,156 640 -
Accumulated deferred income taxes - 63,502 - -
Other 15,980 217,969 6,986 -
--------------------------------------------------------------------------
Total current liabilities 90,705 929,717 54,121 -
--------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes (1,750) 1,972,757 12,607 -
Accumulated deferred investment tax credit - 300,948 - -
Capital leases - 136,814 - -
Other 31 300,759 912 1,106
--------------------------------------------------------------------------
Total other liabilities (1,719) 2,711,278 13,519 1,106
--------------------------------------------------------------------------
Long-Term Debt - 3,530,774 245,841 -
--------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - 144,405 - -
Common stock 1,951,140 1,951,437 87,685 -
Retained earnings (deficit) 1,624,567 1,477,217 15,587 (1,640)
--------------------------------------------------------------------------
Total shareholder's equity 3,575,707 3,573,059 103,272 (1,640)
--------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,664,693 $10,744,828 $ 416,753 $ (534)
==========================================================================
<CAPTION>
EDISON GREAT LAKES
DTE DEVELOPMENT DTE ENERGY ENERGY
CAPITAL CORPORATION TRADING, PRODUCTS,
CORPORATION CONSOLIDATED INC. INC.
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 7,390 $ 66 $ - $ -
Accounts receivable
Customer - - - -
Accrued unbilled revenues - - - -
Other 20 - 125 2
Inventories
Fuel - - - -
Materials and supplies - - - -
Other - - 5 -
---------------------------------------------------------------------------
Total current assets 7,410 66 130 2
---------------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - -
Other 91,151 19,048 - 418
---------------------------------------------------------------------------
Total investments 91,151 19,048 - 418
---------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment - - 117 -
Property under capital leases - - 1,225 -
Nuclear fuel under capital lease - - - -
Construction work in progress - - - -
Less: accumulated depreciation and amortization - - (80) -
---------------------------------------------------------------------------
Total property, plant and equipment - - 1,262 -
---------------------------------------------------------------------------
Other Assets
Regulatory assets - - - -
Other 168 - (1,842) -
---------------------------------------------------------------------------
Total other assets 168 - (1,842) -
---------------------------------------------------------------------------
TOTAL ASSETS $ 98,729 $19,114 $ (450) $ 420
===========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ -
Capital leases - - - -
Accounts payable - - 39 -
Accrued interest 461 - - 1
Dividends payable - - - -
Accrued payroll - - 11 -
Accumulated deferred income taxes - - - -
Other 42,033 - 449 -
---------------------------------------------------------------------------
Total current liabilities 42,494 - 499 1
---------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes - - (322) -
Accumulated deferred investment tax credit - - - -
Capital leases - - - -
Other 1,740 - 619 -
---------------------------------------------------------------------------
Total other liabilities 1,740 - 297 -
---------------------------------------------------------------------------
Long-Term Debt - - - -
---------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - -
Common stock 50,000 22,500 - 660
Retained earnings (deficit) 4,495 (3,386) (1,246) (241)
---------------------------------------------------------------------------
Total shareholder's equity 54,495 19,114 (1,246) 419
---------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 98,729 $19,114 $ (450) $ 420
===========================================================================
<CAPTION>
INTER-COMPANY
DTE ELIMINATIONS DTE
SYNDECO ENGINEERING AND ENERGY
REALTY SERVICES, RECLASS- COMPANY
CORPORATION INC. IFICATIONS CONSOLIDATED
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 734 $1,448 $ - $ 98,609
Accounts receivable
Customer - - - 304,714
Accrued unbilled revenues - - - 137,222
Other 1,838 176 - 78,277
Inventories
Fuel - - - 130,211
Materials and supplies - - - 172,484
Other 15 - - 13,086
---------------------------------------------------------------------------
Total current assets 2,587 1,624 - 934,603
---------------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - 239,062
Other 291 (228) (3,732,025) 58,528
---------------------------------------------------------------------------
Total investments 291 (228) (3,732,025) 297,590
---------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment 7,190 - - 14,495,141
Property under capital leases - - - 255,764
Nuclear fuel under capital lease - - - 607,067
Construction work in progress - - - 16,535
Less: accumulated depreciation and amortization (208) - - (6,440,408)
---------------------------------------------------------------------------
Total property, plant and equipment 6,982 - - 8,934,099
---------------------------------------------------------------------------
Other Assets
Regulatory assets - - - 855,220
Other 154 - - 201,426
---------------------------------------------------------------------------
Total other assets 154 - - 1,056,646
---------------------------------------------------------------------------
TOTAL ASSETS $ 10,014 $1,396 $(3,732,025) $11,222,938
===========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ 205,449
Capital leases - - - 109,763
Accounts payable 4 - - 160,605
Accrued interest - - - 56,550
Dividends payable - - (79,816) 77,632
Accrued payroll - - - 80,807
Accumulated deferred income taxes - - - 63,502
Other 169 - (21,162) 262,424
---------------------------------------------------------------------------
Total current liabilities 173 - (100,978) 1,016,732
---------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes - - - 1,983,292
Accumulated deferred investment tax credit - - - 300,948
Capital leases - - - 136,814
Other - - (2,638) 302,529
---------------------------------------------------------------------------
Total other liabilities - - (2,638) 2,723,583
---------------------------------------------------------------------------
Long-Term Debt - - - 3,776,615
---------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - 144,405
Common stock 7,613 50 (2,119,945) 1,951,140
Retained earnings (deficit) 2,228 1,346 (1,508,464) 1,610,463
---------------------------------------------------------------------------
Total shareholder's equity 9,841 1,396 (3,628,409) 3,706,008
---------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,014 $1,396 $(3,732,025) $11,222,938
===========================================================================
</TABLE>
2
<PAGE> 8
DTE ENERGY COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
THE DETROIT DE ENERGY DTE EDISON
DTE EDISON SERVICES, AMERICA
ENERGY COMPANY INC. INC.
COMPANY CONSOLIDATED CONSOLIDATED CORPORATION
----------------------------------------------------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ 1,511,325 $ 1,391,104 $ (1,959) $ (513)
Net income (loss) 428,542 417,007 17,546 (1,127)
Retirement of common stock (379) - - -
Reclassification of prior period preferred dividends (16,015) - - -
Deduct:
Cash dividends on common stock (298,906) (319,265) - -
Cash dividends on cumulative
preferred stock - (11,629) - -
----------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ 1,624,567 $ 1,477,217 $ 15,587 $ (1,640)
==========================================================
<CAPTION>
EDISON GREAT LAKES
DTE DEVELOPMENT DTE ENERGY ENERGY
CAPITAL CORPORATION TRADING, PRODUCTS,
CORPORATION CONSOLIDATED INC. INC.
----------------------------------------------------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ 1,557 $ (109) $ - $ -
Net income (loss) 2,938 (3,277) (1,246) (241)
Retirement of common stock - - - -
Reclassification of prior period preferred dividends - - - -
Deduct:
Cash dividends on common stock - - - -
Cash dividends on cumulative
preferred stock - - - -
----------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ 4,495 $ (3,386) $ (1,246) $ (241)
==========================================================
<CAPTION>
INTER-COMPANY
DTE ELIMINATIONS DTE
SYNDECO ENGINEERING AND ENERGY
REALTY SERVICES, RECLASS- COMPANY
CORPORATION INC. IFICATIONS CONSOLIDATED
----------------------------------------------------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ 1,479 $ 1,313 $(1,411,780) $ 1,492,417
Net income (loss) 749 33 (443,593) 417,331
Retirement of common stock - - - (379)
Reclassification of prior period preferred dividends - - 16,015 -
Deduct:
Cash dividends on common stock - - 319,265 (298,906)
Cash dividends on cumulative
preferred stock - - 11,629 -
----------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ 2,228 $ 1,346 $(1,508,464) $ 1,610,463
==========================================================
</TABLE>
3
<PAGE> 9
THE DETROIT EDISON COMPANY
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
MIDWEST THE EDISON ELIMINATIONS THE DETROIT
THE DETROIT ENERGY ST. CLAIR ILLUMINATING AND EDISON
EDISON RESOURCES ENERGY COMPANY RECLASS- COMPANY
COMPANY COMPANY CORPORATION OF DETROIT IFICATIONS CONSOLIDATED
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 3,646,065 $ 10,953 $ - $ - $ - $ 3,657,018
OPERATING EXPENSES
Fuel and purchased power 833,715 2,905 - - - 836,620
Operation and maintenance 870,504 2,269 - - - 872,773
Depreciation and amortization 656,012 1,923 - - - 657,935
Taxes other than income 263,071 1,403 - 12 - 264,486
Other 22,114 - - - - 22,114
----------------------------------------------------------------------------------------
Total operating expenses 2,645,416 8,500 - 12 - 2,653,928
----------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 1,000,649 2,453 - (12) - 1,003,090
----------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense (279,269) (2,655) - - - (281,924)
Preferred stock dividends of subsidiary - - - - - 0
Other - net (15,602) 30 - 15 2 (15,555)
----------------------------------------------------------------------------------------
Total interest expense and other (294,871) (2,625) - 15 2 (297,479)
----------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES 705,778 (172) - 3 2 705,611
INCOME TAXES 288,775 (172) - 1 - 288,604
----------------------------------------------------------------------------------------
NET INCOME (LOSS) $ 417,003 $ - $ - $ 2 $ 2 $ 417,007
========================================================================================
</TABLE>
4
<PAGE> 10
THE DETROIT EDISON COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
MIDWEST
THE DETROIT ENERGY ST. CLAIR
EDISON RESOURCES ENERGY
COMPANY COMPANY CORPORATION
---------------------------------------------
<S> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 14,142 $ 568 $ -
Accounts receivable
Customer 299,706 - -
Accrued unbilled revenues 137,222 - -
Other 57,099 5,834 -
Inventories
Fuel 130,211 - -
Materials and supplies 146,994 3,169 -
Other 11,384 314 -
---------------------------------------------
Total current assets 796,758 9,885 -
---------------------------------------------
Investments
Nuclear decommissioning trust funds 239,062 - -
Other 26,475 11,700 9
---------------------------------------------
Total investments 265,537 11,700 9
---------------------------------------------
Property, Plant and Equipment
Property and equipment 14,146,287 56,994 -
Property under capital leases 254,539 - -
Nuclear fuel under capital lease 607,067 - -
Construction work in progress 12,131 1,338 -
Less: accumulated depreciation and amortization (6,404,206) (27,136) -
---------------------------------------------
Total property, plant and equipment 8,615,818 31,196 -
---------------------------------------------
Other Assets
Regulatory assets 855,958 (738) -
Other 156,557 2,132 -
--------------------------------------------
Total other assets 1,012,515 1,394 -
---------------------------------------------
TOTAL ASSETS $ 10,690,628 $ 54,175 $ 9
=============================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ 169,214 $ - $ -
Capital leases 109,763 - -
Accounts payable 145,449 4,853 -
Accrued interest 55,007 1,081 -
Dividends payable 82,723 - -
Accrued payroll 80,156 - -
Accumulated deferred income taxes 63,502 - -
Other 215,679 2,267 -
---------------------------------------------
Total current liabilities 921,493 8,201 -
---------------------------------------------
Other Liabilities
Accumulated deferred income taxes 1,964,385 8,372 -
Accumulated deferred investment tax credit 300,948 - -
Capital leases 136,814 - -
Other 300,759 - -
---------------------------------------------
Total other liabilities 2,702,906 8,372 -
---------------------------------------------
Long-Term Debt 3,493,174 37,600 -
---------------------------------------------
Shareholders' Equity
Preferred stock 144,405 - -
Common stock 1,951,437 1 10
Retained earnings (deficit) 1,477,213 1 (1)
---------------------------------------------
Total shareholder's equity 3,573,055 2 9
---------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,690,628 $ 54,175 $ 9
=============================================
<CAPTION>
INTER-COMPANY
THE EDISON ELIMINATIONS THE DETROIT
ILLUMINATING AND EDISON
COMPANY RECLASS- COMPANY
OF DETROIT IFICATIONS CONSOLIDATED
-----------------------------------------------
<S> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ - $ - $ 14,710
Accounts receivable
Customer - - 299,706
Accrued unbilled revenues - - 137,222
Other 3 - 62,936
Inventories
Fuel - - 130,211
Materials and supplies - - 150,163
Other - - 11,698
---------------------------------------------
Total current assets 3 - 806,646
---------------------------------------------
Investments
Nuclear decommissioning trust funds - - 239,062
Other 227 (437) 37,974
---------------------------------------------
Total investments 227 (437) 277,036
---------------------------------------------
Property, Plant and Equipment
Property and equipment 223 - 14,203,504
Property under capital leases - - 254,539
Nuclear fuel under capital lease - - 607,067
Construction work in progress - - 13,469
Less: accumulated depreciation and amortization - - (6,431,342)
---------------------------------------------
Total property, plant and equipment 223 - 8,647,237
---------------------------------------------
Other Assets
Regulatory assets - - 855,220
Other - - 158,689
---------------------------------------------
Total other assets - - 1,013,909
---------------------------------------------
TOTAL ASSETS $ 453 $ (437) $ 10,744,828
=============================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ 169,214
Capital leases - - 109,763
Accounts payable - - 150,302
Accrued interest - - 56,088
Dividends payable - - 82,723
Accrued payroll - - 80,156
Accumulated deferred income taxes - - 63,502
Other 23 - 217,969
---------------------------------------------
Total current liabilities 23 - 929,717
---------------------------------------------
Other Liabilities
Accumulated deferred income taxes - - 1,972,757
Accumulated deferred investment tax cred - - 300,948
Capital leases - - 136,814
Other - - 300,759
---------------------------------------------
Total other liabilities - - 2,711,278
---------------------------------------------
Long-Term Debt - - 3,530,774
---------------------------------------------
Shareholders' Equity
Preferred stock - - 144,405
Common stock 50 (61) 1,951,437
Retained earnings (deficit) 380 (376) 1,477,217
---------------------------------------------
Total shareholder's equity 430 (437) 3,573,059
---------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 453 $ (437) $10,744,828
=============================================
</TABLE>
5
<PAGE> 11
THE DETROIT EDISON COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
MIDWEST THE EDISON ELIMINATIONS THE DETROIT
THE DETROIT ENERGY ST. CLAIR ILLUMINATING AND EDISON
EDISON RESOURCES ENERGY COMPANY RECLASS- COMPANY
COMPANY COMPANY CORPORATION OF DETROIT IFICATIONS CONSOLIDATED
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ 1,391,104 $ 1 $ (1) $ 378 $ (378) $ 1,391,104
Net income (loss) 417,003 - - 2 2 417,007
Deduct:
Cash dividends on common stock (319,265) - - - - (319,265)
Cash dividends on cumulative
preferred stock (11,629) - - - - (11,629)
---------------------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ 1,477,213 $ 1 $ (1) $ 380 $ (376) $ 1,477,217
=======================================================================================
</TABLE>
6
<PAGE> 12
DE ENERGY SERVICES, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE DTE DTE INTER-COMPANY
BIOMASS ENERGY COAL ELIMINATIONS DE ENERGY
DE ENERGY ENERGY, SERVICES, SERVICES, AND SERVICES,
SERVICES, INC. INC. INC. RECLASS- INC.
INC. CONSOLIDATED CONSOLIDATED CONSOLIDATED IFICATIONS CONSOLIDATED
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ - $ 851 $ 89,688 $ 54,231 $ (39,931) $ 104,839
OPERATING EXPENSES
Fuel and purchased power - - - - - -
Operation and maintenance 172 2,243 72,285 52,287 (29,462) 97,525
Depreciation and amortization 112 1,328 8,991 - (8,275) 2,156
Taxes other than income 9 120 2,184 96 (2,193) 216
Other - - - - - -
---------------------------------------------------------------------------------
Total operating expenses 293 3,691 83,460 52,383 (39,930) 99,897
---------------------------------------------------------------------------------
OPERATING INCOME (LOSS) (293) (2,840) 6,228 1,848 (1) 4,942
---------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense - - (14,312) (779) (781) (15,872)
Preferred stock dividends of subsidiary - - - - - -
Other - net 14 (334) 1,716 36 - 1,432
---------------------------------------------------------------------------------
Total interest expense and other 14 (334) (12,596) (743) (781) (14,440)
---------------------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES (279) (3,174) (6,368) 1,105 (782) (9,498)
INCOME TAXES (94) (5,274) (22,139) 387 76 (27,044)
---------------------------------------------------------------------------------
NET INCOME (LOSS) $ (185) $ 2,100 $ 15,771 $ 718 $ (858) $ 17,546
=================================================================================
</TABLE>
7
<PAGE> 13
DE ENERGY SERVICES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE DTE DTE INTER-COMPANY
BIOMASS ENERGY COAL ELIMINATIONS DE ENERGY
DE ENERGY ENERGY, SERVICES, SERVICES, AND SERVICES,
SERVICES, INC. INC. INC. RECLASS- INC.
INC. CONSOLIDATED CONSOLIDATED CONSOLIDATED IFICATIONS CONSOLIDATED
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 2,213 $ 2,235 $ 65,106 $ 3,085 $ - $ 72,639
Accounts receivable
Customer - 237 1,943 14,892 (12,064) 5,008
Accrued unbilled revenues - - - - - -
Other - 63 13,046 71 - 13,180
Inventories
Fuel - - - - - -
Materials and supplies - - 564 21,757 - 22,321
Other 42 98 1,140 88 - 1,368
------------------------------------------------------------------------------
Total current assets 2,255 2,633 81,799 39,893 (12,064) 114,516
------------------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - - - -
Other 86,034 9,578 14,132 - (130,382) (20,638)
------------------------------------------------------------------------------
Total investments 86,034 9,578 14,132 - (130,382) (20,638)
------------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment 867 12,686 268,712 2,538 (473) 284,330
Property under capital leases - - - - - -
Nuclear fuel under capital lease - - - - - -
Construction work in progress - 2,420 460 186 - 3,066
Less: accumulated depreciation and amortization (197) (1,699) (6,882) - - (8,778)
------------------------------------------------------------------------------
Total property, plant and equipment 670 13,407 262,290 2,724 (473) 278,618
------------------------------------------------------------------------------
Other Assets
Regulatory assets - - - - - -
Other 472 3,134 36,580 4,378 (307) 44,257
------------------------------------------------------------------------------
Total other assets 472 3,134 36,580 4,378 (307) 44,257
------------------------------------------------------------------------------
TOTAL ASSETS $ 89,431 $ 28,752 $ 394,801 $ 46,995 $(143,226) $ 416,753
==============================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ 36,235 $ - $ - $ 36,235
Capital leases - - - - - -
Accounts payable 3 1,270 824 8,163 - 10,260
Accrued interest - - - - - -
Dividends payable - - - - - -
Accrued payroll - 160 337 149 (6) 640
Accumulated deferred income taxes - - - - - -
Other - - 7,095 2 (111) 6,986
------------------------------------------------------------------------------
Total current liabilities 3 1,430 44,491 8,314 (117) 54,121
------------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes 52 1,525 11,037 - (7) 12,607
Accumulated deferred investment tax credit - - - - - -
Capital leases - - - - - -
Other 2,293 1,298 21,397 33,184 (57,260) 912
------------------------------------------------------------------------------
Total other liabilities 2,345 2,823 32,434 33,184 (57,267) 13,519
------------------------------------------------------------------------------
Long-Term Debt - - 245,840 - 1 245,841
------------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - - - -
Common stock 87,685 20,435 59,800 4,750 (84,985) 87,685
Retained earnings (deficit) (602) 4,064 12,236 747 (858) 15,587
------------------------------------------------------------------------------
Total shareholder's equity 87,083 24,499 72,036 5,497 (85,843) 103,272
------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 89,431 $ 28,752 $ 394,801 $ 46,995 $(143,226) $ 416,753
==============================================================================
</TABLE>
8
<PAGE> 14
DE ENERGY SERVICES, INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE DTE DTE INTER-COMPANY
BIOMASS ENERGY COAL ELIMINATIONS DE ENERGY
DE ENERGY ENERGY, SERVICES, SERVICES, AND SERVICES,
SERVICES, INC. INC. INC. RECLASS- INC.
INC. CONSOLIDATED CONSOLIDATED CONSOLIDATED IFICATIONS CONSOLIDATED
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ (417) $ 1,964 $ (3,535) $ 29 $ - $ (1,959)
Net income (loss) (185) 2,100 15,771 718 (858) 17,546
Deduct:
Cash dividends on common stock - - - - - -
Cash dividends on cumulative
preferred stock - - - - - -
---------------------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ (602) $ 4,064 $ 12,236 $ 747 $ (858) $ 15,587
=======================================================================================
</TABLE>
9
<PAGE> 15
EDISON DEVELOPMENT CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
ELIMINATIONS EDISON
EDISON EDVENTURE AND DEVELOPMENT
DEVELOPMENT CAPITAL RECLASS- CORPORATION
CORPORATION CORPORATION IFICATIONS CONSOLIDATED
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ - $ 614 $ - $ 614
OPERATING EXPENSES
Fuel and purchased power - - - -
Operation and maintenance 865 41 - 906
Depreciation and amortization - - - -
Taxes other than income - - - -
Other - - - -
----------------------------------------------------------------------
Total operating expenses 865 41 - 906
----------------------------------------------------------------------
OPERATING INCOME (LOSS) (865) 573 - (292)
----------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense - - - -
Preferred stock dividends of subsidiary - - - -
Other - net (4,465) (4,993) 4,469 (4,989)
----------------------------------------------------------------------
Total interest expense and other (4,465) (4,993) 4,469 (4,989)
----------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES (5,330) (4,420) 4,469 (5,281)
INCOME TAXES (303) (1,701) - (2,004)
----------------------------------------------------------------------
NET INCOME (LOSS) $(5,027) $(2,719) $4,469 $(3,277)
======================================================================
</TABLE>
10
<PAGE> 16
EDISON DEVELOPMENT CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
ELIMINATIONS EDISON
EDISON EDVENTURE AND DEVELOPMENT
DEVELOPMENT CAPITAL RECLASS- CORPORATION
CORPORATION CORPORATION IFICATIONS CONSOLIDATED
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 130 $ (64) $ - $ 66
Accounts receivable
Customer - - - -
Accrued unbilled revenues - - - -
Other - - - -
Inventories
Fuel - - - -
Materials and supplies - - - -
Other - - - -
-------------------------------------------------------------------------
Total current assets 130 (64) - 66
-------------------------------------------------------------------------
Investments -
Nuclear decommissioning trust funds - - - -
Other 17,234 14,005 (12,191) 19,048
-------------------------------------------------------------------------
Total investments 17,234 14,005 (12,191) 19,048
-------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment - - - -
Property under capital leases - - - -
Nuclear fuel under capital lease - - - -
Construction work in progress - - - -
Less: accumulated depreciation and
amortization - - - -
Total property, plant and equipment - - - -
Other Assets
Regulatory assets - - - -
Other - - - -
-------------------------------------------------------------------------
Total other assets - - - -
-------------------------------------------------------------------------
TOTAL ASSETS $17,364 $13,941 $(12,191) $19,114
=========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ -
Capital leases - - - -
Accounts payable - - - -
Accrued interest - - - -
Dividends payable - - - -
Accrued payroll - - - -
Accumulated deferred income taxes - - - -
Other - - - -
-------------------------------------------------------------------------
Total current liabilities - - - -
-------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes - - - -
Accumulated deferred investment
tax credit - - - -
Capital leases - - - -
Other - - - -
-------------------------------------------------------------------------
Total other liabilities - - - -
-------------------------------------------------------------------------
Long-Term Debt - - - -
-------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - -
Common stock 22,500 16,400 (16,400) 22,500
Retained earnings (deficit) (5,136) (2,459) 4,209 (3,386)
-------------------------------------------------------------------------
Total shareholder's equity 17,364 13,941 (12,191) 19,114
-------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $17,364 $13,941 $(12,191) $19,114
=========================================================================
</TABLE>
11
<PAGE> 17
EDISON DEVELOPMENT CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
ELIMINATIONS EDISON
EDISON EDVENTURE AND DEVELOPMENT
DEVELOPMENT CAPITAL RECLASS- CORPORATION
CORPORATION CORPORATION IFICATIONS CONSOLIDATED
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ (77) $ 260 $ (292) $ (109)
Net income (loss) (5,027) (2,719) 4,469 (3,277)
Equity earnings from prior periods (32) - 32 -
Deduct:
Cash dividends on common stock - - - -
Cash dividends on cumulative
preferred stock - - - -
-------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $(5,136) $(2,459) $ 4,209 $(3,386)
=========================================================================
</TABLE>
12
<PAGE> 18
DTE BIOMASS ENERGY, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE RIVERVIEW SONOMA DTE PLAINVILLE BELLEVILLE
BIOMASS GAS ENERGY RES ARBOR GAS GAS GAS
ENERGY, PRODUCERS, SYSTEMS, POWER PRODUCERS, PRODUCERS, PRODUCERS,
INC. INC. INC. INC. INC. INC. INC.
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ (253) $ 90 $ 139 $ 295 $ 20 $ 109 $ 3
OPERATING EXPENSES
Fuel and purchased power - - - - - - -
Operation and maintenance 1,541 24 431 - 82 221 74
Depreciation and amortization 23 305 105 - 106 345 117
Taxes other than income 82 5 18 - 2 12 1
Other - - - - - - -
----------------------------------------------------------------------------------
Total operating expenses 1,646 334 554 - 190 578 192
----------------------------------------------------------------------------------
OPERATING INCOME (LOSS) (1,899) (244) (415) 295 (170) (469) (189)
----------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense - - - - - - -
Preferred stock dividends of subsidiary - - - - - - -
Other - net 1,923 24 28 5 9 3 -
----------------------------------------------------------------------------------
Total interest expense and other 1,923 24 28 5 9 3 -
----------------------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES 24 (220) (387) 300 (161) (466) (189)
INCOME TAXES (1,922) (799) (793) 105 (198) (1,106) (137)
----------------------------------------------------------------------------------
NET INCOME (LOSS) $ 1,946 $ 579 $ 406 $195 $ 37 $ 640 $ (52)
==================================================================================
<CAPTION>
INTER-COMPANY DTE
ESCAMBIA FAYETTEVILLE LYCOMING ROXANA ELIMINATIONS BIOMASS
GAS GAS GAS GAS AND ENERGY,
PRODUCERS, COMPANY, PRODUCERS, PRODUCERS, RECLASS- INC.
INC. L.L.C. INC. INC. IFICATIONS CONSOLIDATED
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 14 $ - $ 9 $ 5 $ 420 $ 851
OPERATING EXPENSES
Fuel and purchased power - - - - - -
Operation and maintenance 21 2 - 17 (170) 2,243
Depreciation and amortization 26 11 100 37 153 1,328
Taxes other than income - - - - - 120
Other - - - - - -
-----------------------------------------------------------------------
Total operating expenses 47 13 100 54 (17) 3,691
-----------------------------------------------------------------------
OPERATING INCOME (LOSS) (33) (13) (91) (49) 437 (2,840)
-----------------------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense - - - - - -
Preferred stock dividends of subsidiary - - - - - -
Other - net - - - - (2,326) (334)
-----------------------------------------------------------------------
Total interest expense and other - - - - (2,326) (334)
-----------------------------------------------------------------------
INCOME (LOSS) BEFORE TAXES (33) (13) (91) (49) (1,889) (3,174)
INCOME TAXES 3 - (307) (120) - (5,274)
-----------------------------------------------------------------------
NET INCOME (LOSS) $ (36) $ (13) $ 216 $ 71 $(1,889) $ 2,100
========================================================================
</TABLE>
13
<PAGE> 19
DTE BIOMASS ENERGY, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE RIVERVIEW SONOMA DTE PLAINVILLE BELLEVILLE
BIOMASS GAS ENERGY RES ARBOR GAS GAS GAS
ENERGY, PRODUCERS, SYSTEMS, POWER PRODUCERS, PRODUCERS, PRODUCERS,
INC. INC. INC. INC. INC. INC. INC.
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 206 $ 401 $ 544 $ 371 $ 417 $ 266 $ 30
Accounts receivable
Customer 78 12 12 - 6 120 2
Accrued unbilled revenues - - - - - - -
Other 2 7 14 - 3 17 1
Inventories
Fuel - - - - - - -
Materials and supplies - - - - - - -
Other 17 - 23 - - - 15
----------------------------------------------------------------------------------
Total current assets 303 420 593 371 426 403 48
----------------------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - - - - -
Other 22,165 445 211 1,935 61 304 77
----------------------------------------------------------------------------------
Total investments 22,165 445 211 1,935 61 304 77
----------------------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment 121 2,333 842 - 1,080 1,824 640
Property under capital leases - - - - - - -
Nuclear fuel under capital lease - - - - - - -
Construction work in progress 1,751 261 - - 4 387 -
Less: accumulated depreciation
and amortization (49) (951) (317) - (138) (157) (42)
----------------------------------------------------------------------------------
Total property, plant and equipment 1,823 1,643 525 - 946 2,054 598
----------------------------------------------------------------------------------
Other Assets
Regulatory assets - - - - - - -
Other 3,089 - - - - 16 14
----------------------------------------------------------------------------------
Total other assets 3,089 - - - - 16 14
----------------------------------------------------------------------------------
TOTAL ASSETS $27,380 $2,508 $1,329 $2,306 $1,433 $2,777 $737
==================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ - $ - $ - $ -
Capital leases - - - - - - -
Accounts payable 1,223 (2) 23 - 4 7 1
Accrued interest - - - - - - -
Dividends payable - - - - - - -
Accrued payroll 160 - - - - - -
Accumulated deferred income taxes - - - - - - -
Other - - - - - - -
----------------------------------------------------------------------------------
Total current liabilities 1,383 (2) 23 - 4 7 1
----------------------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes 525 186 40 408 88 99 27
Accumulated deferred investment tax credit - - - - - - -
Capital leases - - - - - - -
Other 3,263 11 - 13 25 183 211
----------------------------------------------------------------------------------
Total other liabilities 3,788 197 40 421 113 282 238
----------------------------------------------------------------------------------
Long-Term Debt - - - - - - -
----------------------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - - - - -
Common stock 20,435 2,000 1,050 1,000 1,300 1,800 550
Retained earnings (deficit) 1,774 313 216 885 16 688 (52)
----------------------------------------------------------------------------------
Total shareholder's equity 22,209 2,313 1,266 1,885 1,316 2,488 498
----------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $27,380 $2,508 $1,329 $2,306 $1,433 $2,777 $737
==================================================================================
<CAPTION>
INTER-COMPANY DTE
ESCAMBIA FAYETTEVILLE LYCOMING ROXANA ELIMINATIONS BIOMASS
GAS GAS GAS GAS AND ENERGY,
PRODUCERS, COMPANY, PRODUCERS, PRODUCERS, RECLASS- INC.
INC. L.L.C. INC. INC. IFICATIONS CONSOLIDATED
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ - $ - $ - $ - $ - $ 2,235
Accounts receivable
Customer - - 5 45 (43) 237
Accrued unbilled revenues - - - - - -
Other 14 - 4 1 - 63
Inventories
Fuel - - - - - -
Materials and supplies - - - - - -
Other - - - 41 2 98
-----------------------------------------------------------------------
Total current assets 14 - 9 87 (41) 2,633
-----------------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - - - -
Other 142 - 307 127 (16,196) 9,578
-----------------------------------------------------------------------
Total investments 142 - 307 127 (16,196) 9,578
-----------------------------------------------------------------------
Property, Plant and Equipment
Property and equipment 3,807 1,840 - 200 (1) 12,686
Property under capital leases - - - - - -
Nuclear fuel under capital lease - - - - - -
Construction work in progress - - - 15 2 2,420
Less: accumulated depreciation and amortization (26) (11) - (8) - (1,699)
-----------------------------------------------------------------------
Total property, plant and equipment 3,781 1,829 - 207 1 13,407
-----------------------------------------------------------------------
Other Assets
Regulatory assets - - - - - -
Other - 13 1 - 1 3,134
-----------------------------------------------------------------------
Total other assets - 13 1 - 1 3,134
-----------------------------------------------------------------------
TOTAL ASSETS $ 3,937 $1,842 $317 $421 $(16,235) $28,752
=======================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ - $ - $ -
Capital leases - - - - - -
Accounts payable 1 13 - - - 1,270
Accrued interest - - - - - -
Dividends payable - - - - - -
Accrued payroll - - - - - 160
Accumulated deferred income taxes - - - - - -
Other - - - - - -
-----------------------------------------------------------------------
Total current liabilities 1 13 - - - 1,430
-----------------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes 145 - - 7 - 1,525
Accumulated deferred investment tax credit - - - - - -
Capital leases - - - - - -
Other 3,827 1 101 43 (6,380) 1,298
-----------------------------------------------------------------------
Total other liabilities 3,972 1 101 50 (6,380) 2,823
-----------------------------------------------------------------------
Long-Term Debt - - - - - -
-----------------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - - - -
Common stock - 1,841 - 300 (9,841) 20,435
Retained earnings (deficit) (36) (13) 216 71 (14) 4,064
-----------------------------------------------------------------------
Total shareholder's equity (36) 1,828 216 371 (9,855) 24,499
-----------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,937 $1,842 $317 $421 $(16,235) $28,752
========================================================================
</TABLE>
14
<PAGE> 20
DTE BIOMASS ENERGY, INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
DTE RIVERVIEW SONOMA DTE PLAINVILLE BELLEVILLE
BIOMASS GAS ENERGY RES ARBOR GAS GAS GAS
ENERGY, PRODUCERS, SYSTEMS, POWER PRODUCERS, PRODUCERS, PRODUCERS,
INC. INC. INC. INC. INC. INC. INC.
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ (172) $ 729 $ 460 $ 690 $ 9 $248 $ -
Net income (loss) 1,946 579 406 195 37 640 (52)
Deduct:
Cash dividends on common stock - (995) (650) - (30) (200) -
Cash dividends on cumulative
preferred stock - - - - - - -
-------------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $1,774 $ 313 $ 216 $ 885 $ 16 $688 $(52)
===============================================================================
<CAPTION>
INTER-COMPANY DTE
ESCAMBIA FAYETTEVILLE LYCOMING ROXANA ELIMINATIONS BIOMASS
GAS GAS GAS GAS AND ENERGY,
PRODUCERS, COMPANY, PRODUCERS, PRODUCERS, RECLASS- INC.
INC. L.L.C. INC. INC. IFICATIONS CONSOLIDATED
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ - $ - $ - $ - $ - $1,964
Net income (loss) (36) (13) 216 71 (1,889) 2,100
Deduct:
Cash dividends on common stock - - - - 1,875 -
Cash dividends on cumulative
preferred stock - - - - - -
---------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ (36) $(13) $ 216 $ 71 $ (14) $4,064
======================================================================
</TABLE>
15
<PAGE> 21
DTE ENERGY SERVICES, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE EES COKE ELIMINATIONS DTE ENERGY
ENERGY PCI BATTERY AND SERVICES,
SERVICES, ENTERPRISES COMPANY, RECLASS- INC.
INC. COMPANY INC. IFICATIONS CONSOLIDATED
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 2,582 $ 9,122 $ 77,984 $ - $ 89,688
OPERATING EXPENSES
Fuel and purchased power - - - - -
Operation and maintenance 4,048 2,238 65,999 - 72,285
Depreciation and amortization - 2,184 6,807 - 8,991
Taxes other than income (9) - 2,193 - 2,184
Other - - - - -
-----------------------------------------------------------
Total operating expenses 4,039 4,422 74,999 - 83,460
-----------------------------------------------------------
OPERATING INCOME (LOSS) (1,457) 4,700 2,985 - 6,228
-----------------------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense (753) (3,288) (10,271) - (14,312)
Preferred stock dividends of subsidiary - - - - -
Other - net 101 185 1,430 - 1,716
-----------------------------------------------------------
Total interest expense and other (652) (3,103) (8,841) - (12,596)
-----------------------------------------------------------
INCOME (LOSS) BEFORE TAXES (2,109) 1,597 (5,856) - (6,368)
INCOME TAXES (686) 559 (22,012) - (22,139)
-----------------------------------------------------------
NET INCOME (LOSS) $(1,423) $ 1,038 $16,156 $ - $ 15,771
===========================================================
</TABLE>
16
<PAGE> 22
DTE ENERGY SERVICES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE EES COKE ELIMINATIONS DTE ENERGY
ENERGY PCI BATTERY AND SERVICES,
SERVICES, ENTERPRISES COMPANY, RECLASS- INC.
INC. COMPANY INC. IFICATIONS CONSOLIDATED
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 2,546 $ 8,306 $ 54,254 $ - $ 65,106
Accounts receivable
Customer 331 966 646 - 1,943
Accrued unbilled revenues - - - - -
Other 565 39 12,442 - 13,046
Inventories
Fuel - - - - -
Materials and supplies - - 564 - 564
Other 34 38 1,068 - 1,140
------------------------------------------------------------
Total current assets 3,476 9,349 68,974 - 81,799
------------------------------------------------------------
Investments
Nuclear decommissioning trust funds - - - - -
Other 63,813 - 13,887 (63,568) 14,132
------------------------------------------------------------
Total investments 63,813 - 13,887 (63,568) 14,132
------------------------------------------------------------
Property, Plant and Equipment
Property and equipment 937 57,100 210,675 - 268,712
Property under capital leases - - - - -
Nuclear fuel under capital lease - - - - -
Construction work in progress 460 - - - 460
Less: accumulated depreciation and amortization (75) (2,145) (4,662) - (6,882)
------------------------------------------------------------
Total property, plant and equipment 1,322 54,955 206,013 - 262,290
------------------------------------------------------------
Other Assets
Regulatory assets - - - - -
Other 136 1,891 34,553 - 36,580
------------------------------------------------------------
Total other assets 136 1,891 34,553 - 36,580
------------------------------------------------------------
TOTAL ASSETS $68,747 $66,195 $323,427 $(63,568) $394,801
============================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ 3,643 $ 32,592 $ - $ 36,235
Capital leases - - - - -
Accounts payable 646 97 81 - 824
Accrued interest - - - - -
Dividends payable - - - - -
Accrued payroll 337 - - - 337
Accumulated deferred income taxes - - - - -
Other 66 421 6,490 118 7,095
------------------------------------------------------------
Total current liabilities 1,049 4,161 39,163 118 44,491
------------------------------------------------------------
Other Liabilities
Accumulated deferred income taxes 27 2,104 8,906 - 11,037
Accumulated deferred investment tax credit - - - - -
Capital leases - - - - -
Other 8,835 294 12,454 (186) 21,397
------------------------------------------------------------
Total other liabilities 8,862 2,398 21,360 (186) 32,434
------------------------------------------------------------
Long-Term Debt - 45,092 200,748 - 245,840
------------------------------------------------------------
Shareholders' Equity
Preferred stock - - - -
Common stock 59,800 13,500 50,000 (63,500) 59,800
Retained earnings (deficit) (964) 1,044 12,156 - 12,236
------------------------------------------------------------
Total shareholder's equity 58,836 14,544 62,156 (63,500) 72,036
------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $68,747 $66,195 $323,427 $(63,568) $394,801
============================================================
</TABLE>
17
<PAGE> 23
DTE ENERGY SERVICES, INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE EES COKE ELIMINATIONS DTE ENERGY
ENERGY PCI BATTERY AND SERVICES,
SERVICES, ENTERPRISES COMPANY, RECLASS- INC.
INC. COMPANY INC. IFICATIONS CONSOLIDATED
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $(3,541) $ 6 $ - $ - $(3,535)
Net income (loss) (1,423) 1,038 16,156 - 15,771
Deduct:
Cash dividends on common stock 4,000 - (4,000) - -
Cash dividends on cumulative
preferred stock - - - - -
------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $ (964) $1,044 $12,156 $ - $12,236
============================================================
</TABLE>
18
<PAGE> 24
DTE COAL SERVICES, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE CS ELIMINATIONS DTE COAL
DTE COAL RAIL AND SERVICES
SERVICES SERVICES, RECLASS- INC.
INC. INC. IFICATIONS CONSOLIDATED
--------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $54,231 $ - $ - $54,231
OPERATING EXPENSES
Fuel and purchased power - - - -
Operation and maintenance 52,287 - - 52,287
Depreciation and amortization - - - -
Taxes other than income 96 - - 96
Other - - - -
----------------------------------------------
Total operating expenses 52,383 - - 52,383
----------------------------------------------
OPERATING INCOME (LOSS) 1,848 - - 1,848
----------------------------------------------
INTEREST EXPENSE AND OTHER
Interest expense (779) - - (779)
Preferred stock dividends of subsidiary - - - -
Other - net 36 - - 36
----------------------------------------------
Total interest expense and other (743) - - (743)
----------------------------------------------
INCOME (LOSS) BEFORE TAXES 1,105 - - 1,105
INCOME TAXES 387 - - 387
----------------------------------------------
NET INCOME (LOSS) $ 718 $ - $ - $ 718
==============================================
</TABLE>
19
<PAGE> 25
DTE COAL SERVICES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE CS ELIMINATIONS DTE COAL
DTE COAL RAIL AND SERVICES
SERVICES SERVICES, RECLASS- INC.
INC. INC. IFICATIONS CONSOLIDATED
---------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 3,002 $ 83 $ - $ 3,085
Accounts receivable
Customer 13,541 1,351 - 14,892
Accrued unbilled revenues - - - -
Other 71 - - 71
Inventories
Fuel - - - -
Materials and supplies 20,890 867 - 21,757
Other 30 58 - 88
-----------------------------------------------
Total current assets 37,534 2,359 - 39,893
-----------------------------------------------
Investments
Nuclear decommissioning trust funds - - - -
Other 7,500 - (7,500) -
-----------------------------------------------
Total investments 7,500 - (7,500) -
-----------------------------------------------
Property, Plant and Equipment
Property and equipment - 2,538 - 2,538
Property under capital leases - - - -
Nuclear fuel under capital lease - - - -
Construction work in progress - 186 - 186
Less: accumulated depreciation and amortization - - - -
-----------------------------------------------
Total property, plant and equipment - 2,724 - 2,724
-----------------------------------------------
Other Assets
Regulatory assets - - - -
Other - 4,378 - 4,378
-----------------------------------------------
Total other assets - 4,378 - 4,378
-----------------------------------------------
TOTAL ASSETS $45,034 $9,461 $(7,500) $46,995
===============================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Long-term debt $ - $ - $ - $ -
Capital leases - - - -
Accounts payable 6,282 1,881 - 8,163
Accrued interest - - - -
Dividends payable - - - -
Accrued payroll 69 80 - 149
Accumulated deferred income taxes - - - -
Other 2 - - 2
-----------------------------------------------
Total current liabilities 6,353 1,961 - 8,314
-----------------------------------------------
Other Liabilities
Accumulated deferred income taxes - - - -
Accumulated deferred investment tax credit - - - -
Capital leases - - - -
Other 33,184 3,750 (3,750) 33,184
-----------------------------------------------
Total other liabilities 33,184 3,750 (3,750) 33,184
-----------------------------------------------
Long-Term Debt - - - -
-----------------------------------------------
Shareholders' Equity
Preferred stock - - - -
Common stock 4,750 3,750 (3,750) 4,750
Retained earnings (deficit) 747 - - 747
-----------------------------------------------
Total shareholder's equity 5,497 3,750 (3,750) 5,497
-----------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $45,034 $9,461 $(7,500) $46,995
===============================================
</TABLE>
20
<PAGE> 26
DTE COAL SERVICES, INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Thousands of Dollars
<TABLE>
<CAPTION>
INTER-COMPANY
DTE CS ELIMINATIONS DTE COAL
DTE COAL RAIL AND SERVICES
SERVICES SERVICES, RECLASS- INC.
INC. INC. IFICATIONS CONSOLIDATED
---------------------------------------------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1996 $ 29 $ - $ - $ 29
Net income (loss) 718 - - 718
Deduct:
Cash dividends on common stock - - - -
Cash dividends on cumulative
preferred stock - - - -
---------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT
DECEMBER 31, 1997 $747 $ - $ - $747
===================================================
</TABLE>
21
<PAGE> 27
DTE ENERGY COMPANY
NOTES TO CONSOLIDATING FINANCIAL STATEMENTS
Entities for which financial statements are not presented.
The following affiliates of the Claimant have had no financial activity during
the calendar year 1997. Accordingly, financial information for these companies
is not provided.
DTE Center Point, Inc.
Great Lakes Energy Producers, Inc.
Great Lakes Energy Services, Inc.
Superior Energy Services, Inc.
Wolverine Energy Services, Inc.
Alabama Energy Systems, Inc.
FW Gas Producers, Inc.
Orlando Gas Producers, Inc., (formerly DEFO, Inc.)
Winston Gas Producers, Inc.
Fayetteville Gas Producers, Inc.
This report does not contain information for affiliates of the Claimant which
are accounted for using the equity method.
22
<PAGE> 28
EXHIBIT B
Financial Data Schedule
This schedule contains summary financial information extracted from DTE Energy
Company's consolidated balance sheet and statement of income as of December 31,
1997 contained herein and is qualified in its entirety by reference to such
financial statements.
Multiplier 1,000
Period Type Year
Fiscal Year End December 31, 1997
Period End December 31, 1997
Total Assets $11,222,938
Total Operating Revenues $ 3,764,477
Net Income $ 417,331
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
Not Applicable
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