The ratings on DTE Energy Co. reflect its consolidated credit quality, which includes 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 over the past two years. Detroit Edison's competitive position and cash flow eroded throughout 2004 with the introduction of deregulation in Michigan, but the Michigan Public Service Commission (MPSC) attempted to rectify the landscape in November 2004 with a rate order. Still, sustained financial improvement from depressed levels for the consolidated entity is not likely until 2006-2007. The ratings on DTE Energy and its affiliates reflect the expected successful resolution of future
