The ratings on DTE Energy Co. and its affiliates remain pressured pending the resolution of several regulatory issues in 2004. An interim rate order in subsidiary Detroit Edison Co.'s rate proceeding has provided some clarity, but uncertainty regarding the final level of recovery is still reflected in the negative outlook on the DTE Energy companies. In addition, DTE Energy has requested regulatory approval for an increase in distribution and service charges at its Michigan Consolidated Gas Co. (MichCon) unit. Standard&Poor's is concerned that the final orders in these matters may not stem the cash flow deterioration at the regulated operations sufficiently enough to maintain the current ratings. Credit quality for the DTE Energy companies results from its regulated
