The ratings on DTE Energy Co. reflect a satisfactory ('6') business risk profile consisting of two regulated utilities, Detroit Edison Co. and Michigan Consolidated Gas Co. (MichCon), and the significant influence of unregulated, higher-risk activities. (Utility business risk profiles are categorized from '1' (excellent) to '10' (vulnerable)). Ratings are pressured due to several regulatory issues over the past two years. Detroit Edison's competitive position and cash flow eroded after the introduction of deregulation in Michigan, but the Michigan Public Service Commission (MPSC) attempted to rectify its effects with a November 2004 rate order. Sustained financial improvement from depressed levels for the consolidated entity is not likely until 2006 to 2007. The ratings on DTE Energy and its affiliates reflect constructive
