The ratings on DTE Energy Co. are a function of its regulated utility subsidiaries, Detroit Edison Co. and Michigan Consolidated Gas Co. (MichCon), and a growing portfolio of higher-risk nonregulated activities. DTE Energy will derive the majority, but a decreasing percentage, of its credit quality from its regulated utility units, Detroit Edison and MichCon, which currently contribute approximately 70% of DTE Energy's consolidated funds from operations (FFO). The utility units' FFO contribution is expected to trend down to 60% over the next couple years as the nonregulated operations gain more emphasis. Providing ratings support is Detroit Edison's favorable restructuring legislation, which resulted in the issuance of $1.75 billion in securitized bonds to fully recover its stranded costs, most notably the
