The ratings on DTE Energy Co. reflect its consolidated credit quality, which includes its regulated electric utility, Detroit Edison Co., regulated gas utility, Michigan Consolidated Gas Co. (MichCon), and other affiliates. The credit quality of DTE Energy and its affiliates remains pressured following the resolution of several regulatory issues in 2004 and early 2005. Detroit Edison's competitive position and cash flow eroded throughout 2004 with the introduction of deregulation in Michigan, but the Michigan Public Service Commission's (MPSC) decision in November 2004 attempted to rectify the landscape. Still, sustained financial improvement from depressed levels for the consolidated entity is not likely until the 2006-2007 time frame. Importantly, the ratings on DTE Energy and its affiliates reflect the expected successful resolution
