European Investor Update Background Material JuneJuly 2004 Safe

European Investor Update Background Material June/July 2004

Safe Harbor Statement DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipate, ” “believe, ” “expect, ” “projected” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This press release contains forward-looking statements about DTE Energy’s financial results and estimates of future prospects, and actual results may differ materially. Factors that may impact forwardlooking statements include, but are not limited to, timing and extent of changes in interest rates; access to the capital markets and capital market conditions and other financing efforts which can be affected by credit agency ratings requirements; ability to utilize Section 29 tax credits or sell interest in facilities producing such credits; the level of borrowings; the effects of weather and other natural phenomena on operations and actual sales; economic climate and growth in the geographic areas in which DTE Energy does business; unplanned outages; the cost of protecting assets against or damage due to terrorism; nuclear regulations and risks associated with nuclear operations; the grant of rate relief by the MPSC for the utilities; changes in the cost of fuel, purchased power and natural gas; the effects of competition; the implementation of electric and gas customer choice programs; the implementation of electric and gas utility restructuring in Michigan; environmental issues, including changes in the climate, and regulations, and the contributions to earnings by non-regulated businesses. This press release should also be read in conjunction with the forward-looking statements in DTE Energy’s, Mich. Con’s and Detroit Edison’s 2003 Form 10 -K Item 1, and in conjunction with other SEC reports filed by DTE Energy, Mich. Con and Detroit Edison. 2

DTE Energy Geography Regional Area of Focus Synfuels On-Site Energy Projects Coke Batteries Biomass 3

DTE Energy Overview Utility Platform Non-Regulated Platform Power and Industrial Projects • • Non-conventional Gas Production • Michigan Gas Production • Shale and Coalbed Methane • Landfill Gas Fuel Transportation and Marketing • Coal Transportation and Marketing • Gas Pipelines and Storage • Energy Trading and Marketing Generates and distributes electricity throughout Southeastern Michigan Produces, gathers, transmits, stores and distributes natural gas throughout Michigan On-site Energy Projects Steel-Related Projects Power Generation with Services Waste Coal Recovery 4

DTE Energy Business Segments Regulated Energy Resources Energy Distribution Energy Gas Detroit Edison Power Generation Detroit Edison Power Distribution Mich. Con Gas Distribution Energy Services Non Regulated Coal Services DTE Energy Technologies Non Reg Energy Gas Corporate & Other Energy Tech Investments Holding Company Biomass Energy Trading & Co-Energy Portfolio 5

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 6

Profile of Detroit Edison and Mich. Con Detroit Edison • Ninth largest electric utility in the U. S. with 2. 1 million customers • Over 11, 000 MW of power generation, primarily coal fired • Fermi 2 nuclear plant is a top industry performer • 54, 000 GWh in electric sales • ~$3. 7 billion in revenue Detroit Edison Distribution Services Mich. Con • Fifth largest natural gas utility in the U. S. with 1. 2 million customers Mich. Con Distribution Services Overlapping Distribution Services • 170 Bcf of gas sales Detroit • 12% of national gas storage capacity with 124 Bcf of regulated gas storage • ~$1. 5 billion in revenue 7

Profile of Detroit Edison and Mich. Con • Detroit Edison has a balanced customer mix • Mich. Con’s customers are largely stable residential users • While important, the automobile sector accounts for only 14% of electric load and 10% of revenue at Detroit Edison 2003 Total System Sales - 45, 890 GWh Detroit Edison 2003 Customer Volumes – 172 Bcf Industrial 1% Other 6% Residential 33% Commercial 24% Industrial 26% Residential 75% Commercial 35% 8 Excludes End User Transportation

Detroit Edison Generation Fleet • Detroit Edison has a diversified generation portfolio anchored by lower cost, base load coal and nuclear generation • With a focus on coal, Detroit Edison generally has limited exposure to more volatile natural gas prices Summer Net Rated Capacity 2003 Generation Fuel Mix ~11, 000 MW Total ~46, 000 GWh Gross Generation Gas/Oil 1% Pumped Storage 8% Nuclear 18% Peakers 10% Gas/Oil 9% Nuclear 10% Coal 81% Coal 63% 9

Detroit Edison Power Plant Portfolio MW % Fossil-Fueled Steam-Electric Belle River Conners Creek Greenwood Harbor Beach Marysville Monroe River Rouge St. Clair Trenton Channel 1, 026 215 785 103 84 3, 045 510 1, 415 730 9. 3 1. 9 7. 1 0. 9 0. 8 27. 6 4. 6 12. 8 6. 6 Nuclear - Fermi 2 1, 111 10. 1 Hydroelectric Pumped Storage 917 8. 3 9, 941 90% Oil or Gas-fueled Peaking Units 1, 102 10. 0 Total 11, 043 100% 10

Detroit Edison Plants are Well. Positioned on the Regional Supply Curve ECAR Dispatch Curve - Summer 2005 $80. 00 $/MWh $60. 00 Summer Peak Demand (104, 000 MW) $40. 00 $20. 00 Min Annual Demand (44, 000 MW) $0. 00 0 25, 000 50, 000 Avg. Annual Demand (67, 000 MW) 75, 000 100, 000 125, 000 Cumulative MW Hydro & Nuclear Coal Combined-Cycle & Steam (Gas) Detroit Edison Power Plant All costs include emissions ( NOx and SO 2) CT - Gas/Oil 11

Detroit Edison Residential Electric Rates 1992 - 2003 Residential Electric Rates ¢/KWh 10 CPI 1992 = 100 CPI 1992– 2003 Percent Change 150 125 +31% 9. 5 100 9 75 50 8. 5 25 8 -11% 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 12 Source: EEI Summer Typical Bill Survey

Detroit Edison Commercial Electric Rates 1992 -2003 Commercial Electric Rates ¢/KWh 11. 781 CPI 1992 = 100 CPI 1992– 2003 Percent Change 150 125 +31% 100 9. 8175 75 50 25 7. 854 -12% 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 13 Source: EEI Summer Typical Bill Survey

Detroit Edison Industrial Electric Rates 1992 -2003 Industrial Electric Rates ¢/KWh CPI 1992 = 100 CPI 8. 5 150 125 8 1992– 2003 Percent Change +31% 100 7. 5 75 7 50 6. 5 25 6 -16% 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 14 Source: EEI Summer Typical Bill Survey

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 15

DTE Energy’s Approach to Non-Regulated Businesses • Build around unique DTE Energy strengths Non-Regulated Net Income ($ millions) • Focus where competition is manageable $228 $205 • Focus on value added/profit first, scale second $162 • Pursue closely inter-linked business lines $84 $68 • Build outward from regional base of strength $42 • Build around broad portfolio, not a single platform 1998 1999 2000 2001 2002 CAGR: ~40% 2003 16

Non-Regulated Business Segments Energy Services Develops and manages energy-related assets and services, including coke production, synfuel production, independent power plants, on-site energy projects and cogeneration services Energy Marketing & Trading Physical power marketing and structured transactions as well as enhancing returns from DTE’s power plant, pipeline and storage assets Coal Services & Biomass Coal marketing and transportation, waste coal recovery and landfill gas recovery Gas Production & Storage, Pipelines and Processing Develops and produces natural gas in Northern Michigan, transports and stores natural gas 17

Using This Approach, DTE Energy Avoided Recent Industry Pitfalls • Did not overpay for auctioned generation assets • Avoided international investments • Did not overemphasize trading business • Predicted overbuild of merchant generation • Did not pursue growth at the expense of the balance sheet • Do not use overly complex and non-transparent financial structures • Do not promote unrealistic earnings growth expectations 18

Profile of DTE Energy Services Synfuels Power Generation On-Site Energy Projects Coke Batteries NY MI PA OH IL IN WV KY NC Business Profile • Leverages DTE’s expertise with large energy users, coal-based fuels and power generation • Business lines include − Coal based fuels (coke batteries and synfuels) − On-site energy projects − Power generation AL * Synfuel facility in Price, Utah not shown 19

Profile of DTE Energy Trading Regions where 95% of DTE’s trading activity is concentrated Business Profile • Fundamental role of energy trading and marketing at DTE: – Add value to the company’s assets and contractual positions, and to help manage the risks tied to these assets and positions – Provide products and services to customers that lack required capabilities e. g. munis, co-ops • Commodities marketed and traded include power, gas, coal and emissions credits • 2003 combined net income for Energy Trading and Co. Energy Portfolio was $29 M 20

Profile of DTE Coal Services Business Profile • Leverages DTE’s scale as a coal user and its expertise in coal transportation and marketing • Business lines include: – Coal marketing – Rail / water transportation – Railcar maintenance – Coal and emissions trading – Coal tolling – Waste coal recovery • 2003 net income of $8 M Detroit Edison Plants Utility Customers / Tolling Sites Industrial or DTE Energy Services’ Sites DTE Transportation Services Customer DTE Dock 21

Profile of DTE Biomass Energy Current Projects Gas Sales Power Sales Steam Sales Pipeline Quality Gas Business Profile • DTE Biomass is a leading landfill gas to energy producer – A niche business for DTE, with modest competition, and opportunities for high and medium Btu production driven by high natural gas prices – Owns and operates 34 projects in 13 states – Extracts 28 Bcf of landfill gas annually – Helped reduce DTE Energy’s overall CO 2 emissions by 10% • 2003 net income of $6 M 22

Profile of Upstream and Midstream Gas Business Profile Gas Production, Gathering & Processing Gas Storage r to c Ve Coalbed Methane Focus Areas Cherokee Basin Arkoma Basin • Upstream Gas – Leverages DTE’s leading position in Michigan gas production and our strong technical expertise and operating skills – 25 Bcf of annual production from 1700 wells in northern Michigan – DTE Gas Resources, which develops coalbed methane projects • Midstream Gas – Value and returns enhanced by marketing and trading opportunities, economic expansion of assets, and structuring/partnership opportunities • 55 Bcf of unregulated gas storage in Michigan • 40% equity interest in Vector pipeline • 2003 net income of $29 M 23

Historical Non-Regulated Business Returns Average 2001 - 2003 $ Millions Energy Services 2003 Invested Capital, $MM Unlevered After. Tax Return on Capital After-Tax ROE $810 21% 28% Coal Services $60 23% >30% Biomass Energy $40 14% 16% $440 7% 7% $10 N/A Gas Production & Midstream Gas Energy Trading* * Return on capital is not generally used as a metric for trading operations 24

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 25

2003 Financial Summary Operating Earnings per Share* $2. 84 Energy Resources Energy $0. 09 Distribution Power Generation $1. 50 Power Distribution Energy Services $1. 18 DTE Energy ($0. 09) Technologies Coal Services $0. 05 Biomass Energy $0. 03 Regulated Non Regulated $3. 09 Trading & Co-Energy Portfolio Overheads & Other $0. 18 Energy Gas $0. 44 Gas Distribution $0. 27 Non Reg Energy Gas $0. 17 Corporate ($0. 28) & Other Holding Company ($0. 23) Energy Tech Investments ($0. 05) $0. 17 ($0. 09) 26 * Reconciliation to GAAP reported earnings included in the appendix

DTE Energy 2002 vs. 2003 Variance ($ millions) Operating Earnings* 2002 2003 $586 $521 Key Drivers: • Weather demand Regulated Electric $352 $282 • Electric Choice impact / regulatory deferrals • Storm restoration costs Regulated Gas Non. Regulated** Holding Company Earnings Per Share* $66 $207 ($39) $3. 55*** $46 • Benefit cost escalation • Uncollectable expenses $228 ($35) $3. 09 • Non-regulated growth * Reconciliation to GAAP reported earnings included in the appendix ** Includes Energy Technology Investment *** Excludes earnings from discontinued operations (International Transmission Company) 27

Non-Regulated 2003 Review Operating Earnings (after tax)* ($ millions) Synfuels Coke Batteries On Site Energy Projects Power Generation Coal Services Biomass Energy Trading & Co. Energy Portfolio Energy Resources overheads & interest Upstream & Midstream Gas DTE Energy Technologies Energy Technology Investments** Other Total 2002 2003 $ 136 52 9 (5) 13 7 25 (22) 26 (16) (10) (8) $ 197 (7) 9 4 8 6 29 (23) 29 (15) (9) - $ 207 $ 228 * Reconciliation to reported earnings included in the appendix ** Primarily Plug Power losses • Higher year-over year synfuel production, partially offset by the absence in 2003 of coke battery tax credits • Power Generation gains from contract restructuring of $20 M • Gain on the sale of the Portland pipeline of $10 M • Solid growth in realized earnings at Energy Trading • Discontinued equity accounting at Plug Power in November 2003 28

2004 Outlook • Detroit Edison net income is highly dependent on: – Timing and amount of rate relief – Implementation of Power Supply Cost Recovery Factor (PSCR) – Resolution of customer choice • Mich. Con net income is highly dependent on the timing and amount of rate relief • Non-regulated net income will be driven by: – Timing and number of synfuel interests sold and synfuel production levels – Growth in coal bed methane, waste coal recovery and onsite energy projects 29

Non-Regulated 2004 Outlook Operating Earnings (after tax)* ($ millions) Synfuels Coke Batteries On Site Energy Projects Power Generation Coal Services Biomass Energy Trading & Co. Energy Portfolio Energy Resources overhead & interest Upstream & Midstream Gas DTE Energy Technologies Energy Technology Investments & Other Total * Reconciliation to reported earnings included in the appendix 2003 A 2004 E $ 197 (7) 9 4 8 6 29 (23) 29 (15) (9) $150 -190 6 -8 18 -22 (16) 14 -16 6 35 -40 (33) 18 -20 (4) - $ 228 $194 -249 • Timing of synfuel sales • Restructured coke battery contracts • Closing the utility outsourcing deal • Continued weakness in generation pricing • Drive to profitability in Energy Technologies • Discontinued equity accounting at Plug Power 30

Financial Objectives • Maintain strong balance sheet and solid investment grade rating – 2003 year-end leverage declined to 49%* • Generate strong cash flows – Solid 2003 adjusted cash from operations of over $1 billion – Synfuels turns from cash negative in 2003 to cash positive in 2004 – Capital expenditures declined $233 M in 2003, mostly due to lower NOx spending • Conservative and sound financial policies • Continue dividend of $2. 06 per share, with a current yield of 5. 2% 31 * Excludes securitization debt, Mich. Con short-term debt and quasi-equity instruments

DTE Energy Leverage* 60% 55% • Despite the problems that have plagued the industry, DTE Energy has been able to maintain a strong balance sheet • This was achieved without having to resort to a ‘back-tobasics’ strategy 50% 45% 40% 1999 2000 2001 2002 2003 • Despite the current challenges, DTE Energy’s leverage has not been negatively impacted 32 * Excludes securitization debt, Mich. Con short-term debt and quasi-equity instruments

DTE Energy 2004 Cash Flows 2004 E ($ millions) Cash from Operations Synfuel Production Payment* Adjusted Cash from Operations Capital Expenditures 2003 A Low High $950 $800 $1, 050 89 175 225 $1, 039 $975 $1, 275 (751) (750) (1, 060) Cash Improvement Initiative 100 669 40 40 Dividends (346) (353) Cash Flow $611 $12 $2 Asset Sales * Accounted for as ‘investing activity’ • Cash flows in 2004, similar to net income, are uncertain. Final results depend on: – Timing and amount of rate relief – Electric Choice – Timing of synfuel sales • The cash initiative successfully implemented in 2003 will continue this year, with a minimum goal of internally funding the dividend • Leverage is expected to remain at the low end of our range 33

DTE Energy Capital Expenditures (2004 Based on Rate Case Filings) ($ millions) 2003 A 2004 E $516 $672 NOx 64 38 Mich. Con 98 139 73 211 Detroit Edison Non Regulated & Corporate* Total $751 * 2004 includes $55 M of corporate capital $1, 060 • Based on utility rate case filings, 2004 capital expenditures will be approximately $1 B • These capital expenditures are largely incurred at the two regulated utilities • We intend to match actual 2004 capital spending with available cash flows. Until utility rate cases are resolved, capital spending will remain at 2003 levels 34

DTE Energy Current Credit Ratings Current Ratings DTE Energy Detroit Edison Mich. Con Last action S&P Moody's Fitch BBB+A, B Baa 2 B BBB A- B A 3 B A- BBB+ B A 2 C A 11/7/2003 1/28/2004 11/10/2003 A) Corporate Credit Rating B) Negative Outlook C) Under review for possible downgrade • Negative outlook from Moody’s and S&P reflects concerns over: – Rate case outcomes – Electric choice program and need for change • Cash flow metrics should start improving with impact of rate cases and synfuel monetization 35

DTE Energy’s Commitment to the Dividend Yield 6. 5% 5. 3% 4. 8% 4. 9% 5. 2% 4. 4% • Management is committed to maintaining dividend at current level $2. 06 Dividend 1998 1999 2000 2001 2002 • Despite recent earnings pressure to date the dividend has remained stable at $2. 06 per share 2003 • As cash flows improve DTE intends, in the absence of new investments that meet our return requirements, to return excess cash to shareholders or pay down debt 36

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 37

Status of Multi-Emission Legislation in the U. S. • Lack of consensus from the industry and political challenges prevented multi-emission legislation from being passed in 2003 – Presidential politics in 2004 continue to block its consideration • DTE Energy played a leadership role in attempting to create consensus between companies taking a “just say no” position and those with more aggressive positions (primarily Eastern and nuclear utilities) • Although legislation is stalled, the Administration has proposed regulations to control sulfur dioxide (SO 2), nitrogen oxides (NOx), and mercury (Hg) with similar reductions and timeframes as legislation DTE Energy supported 38

DTE Energy Estimated Cost of Environmental Compliance Total Estimated Capital: $2. 4 Billion ($millions) 1, 200 1, 011 1, 000 870 800 600 536 • DTE Energy will seek to gain agreement with the Michigan Public Service Commission on the mechanism by which these environmental investments will be recovered: – Another rate case that gives clear path for recovery 400 – Securitization of environmental capital 200 Previous NOx 2005 -2010 2011 -2015 SO 2 Mercury – Environmental wires charge (social benefit) 39

Air Issues Dominate DTE Energy’s Focus Changes in Detroit Edison Power Plant Emissions and Generation (1974– 2003) 39% 40% 20% 0% 12% 16% CO 2 PM SO 2 NOx Hg -12% -20% MWh Fossil MWh System -40% -63% -60% -88% -100% Landfill Methane Recovery and Carbon Sequestration Projects offset much of the CO 2 increase 40

DTE Energy has Taken Significant Action on Climate Change and will Continue its Efforts • DTE Energy’s carbon dioxide emissions continue below its 1990 level of 44. 2 million tons. The company’s emissions for SO 2, CO 2 and NOx are 50 -60% below the regional average • DTE Biomass landfill gas projects eliminate substantial volumes of greenhouse gas (equivalent to approximately 10% of DTE’s fossilfired carbon dioxide emissions) • We have planted more than 20 million trees in Michigan since 1995. These trees will absorb about 6. 6 million tons of carbon dioxide and produce 4. 6 million tons of oxygen over a 50 -year timeframe • We continue to invest in high efficiency turbines at several of our plants which will reduce emissions by approximately 2% 41

DTE Energy’s Environmental Stewardship is Well-Recognized DTE Energy’s relative environmental performance, as rated by Innovest Strategic Value Advisors, an internationally recognized investment research and advisory firm specializing in analyzing companies' performance on environmental, social, and strategic governance issues 42

DTE Energy is Actively Involved in Waste Coal Recovery Efforts Washed Coal Raw Coal Mine Prep Plant Waste Coal Fines Coal Buyer Refuse Pond • DTE Energy has sole rights to a proprietary waste coal recovery technology, “Pep. Tec” • The technology uses a chemical and mechanical process to separate clay from waste coal, thereby increasing Btu content of the coal • Builds upon DTE Energy’s strong knowledge of coal markets and relationships with coal companies • The large market potential for the recovery technology makes it a significant opportunity for DTE – Amount of coal in U. S. waste coal pond is estimated to be over 1 billion tons with 30 million tons added each year • Reclamation of coal fines from waste coal ponds also provides a significant environmental benefit 43 • Our first plant is operational and producing at a rate of ~250, 000 tons per year

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 44

Michigan’s Economy has Diversified Michigan Gross State Product (GSP) by Sector Other 2% Services 44% Other 1% Industrial 54% 1980 Source: U. S. Department of Commerce, Bureau of Economic Analysis, “Regional Economic Accounts” Services 53% Industrial 46% 2001 45

Diversification Assures a Steady Base, Countering the Cycles of Michigan's Manufacturing Industry Traditional Industries • Automotive, plastics, engineering and R&D, wood products, agribusiness and tourism 2001 Michigan Industries Agriculture, forest. , fish 1% Services 21% Finance / Insurance / Real Estate 16% Construction 5% Manufacturing 23% Transportation & utilities 6% Government Retail trade Wholesale 11% 10% trade 7% High-Tech Industries • Life sciences – Nearly $2 billion industry – Main sectors: • Pharmaceuticals • Medical devices, instrumentation and diagnostics • Research and ancillary services – Over 540 firms including Pfizer, Lumigen and Pharmacia • Information Technology – Home to major technologyfocused companies including Compuware, Dow Chemical, and EDS • Alternative energy • Advanced automotive technology 46 Source: U. S. Dept. of Commerce, Michigan Economic Development Corporation

Michigan Is Emerging As a Hotbed of Technology-focused Industry • Michigan ranked fifth in the 2003 annual national ranking of corporate expansions and locations • Michigan ranks fourth nationally for total employment in high tech industries – Employment in high tech industries accounts for 5. 3% of Michigan’s total workforce, exceeding the national average of 4. 4% • The University of Michigan is #1 in the nation for life sciences research, with $591 million in research expenditures in 2001 • Venture capital investment up in Michigan – More than $2. 4 billion is under management by Michigan venture capital firms – Software, Industrial, and Biotechnology firms continued to attract the most investment capital Source: Michigan Economic Development Corporation 47

Michigan’s Unemployment Tracks National Rate Historical Comparison of Unemployment Michigan v. United States 18. 0 16. 0 • Michigan’s economy and unemployment was once thought to be more severely impacted than the nation as a whole by downturns in the economy. 12. 0 10. 0 8. 0 6. 0 4. 0 Jan-2004 Jan-2003 Jan-2002 Jan-2001 Jan-2000 Jan-1999 Jan-1998 Jan-1997 Jan-1996 Jan-1995 Jan-1994 Jan-1993 Jan-1992 Jan-1991 Jan-1990 Jan-1989 Jan-1988 Jan-1986 Michigan Jan-1985 Jan-1984 Jan-1983 Jan-1982 Jan-1981 Jan-1980 - U. S. Jan-1987 2. 0 Jan-1979 Unemployment Rate (%) 14. 0 • While once true, the correlation no longer exists as Michigan’s unemployment now tracks with the national rate 48 Source: U. S. Bureau of Labor Statistics

Michigan’s Automobile Industry • The automobile sector accounts for 14% of Detroit Edison’s sales and 10% of revenue • Within Detroit Edison’s service territory, the Big 3 automakers generally produce more popular and higher margin vehicles • Over the past 15 years, area auto production volume has remained relatively constant while Detroit Edison’s electric load has increased by ~25% • In the next five years, Big 3 auto production in Detroit Edison’s service territory is expected to remain relatively stable Millions of Vehicles Produced Detroit Area Light Vehicle Production 1. 2 1 0. 8 0. 6 0. 4 0. 2 0 2003 2004 2005 2006 General Motors Daimler. Chrysler Ford 2007 2008 49

Light Vehicle Production Forecast 2003 to 2008: Detroit Area versus Rest of U. S. • Daimler. Chrysler’s forecasted Detroit area light vehicle production should match overall US production levels Change in Production Level 40% 35% • While General Motors is forecasting a decrease in US production, Detroitarea production will remain flat 30% 25% 20% 15% 10% 5% 6% 6% -5% 0% 0% -5% General Motors -10% Daimler. Chrysler U. S. Detroit -3% 34% Ford • Ford Motor Company’s latest forecast indicates a sharp increase in production at Detroit-area plants, driven by : – new product offerings in the sport utility and pick-up truck lines – production of the Ford Focus (best selling car in the world) will move from Mexico to Wayne, Michigan 50

Outline • Regulated Business Overview • Non-Regulated Business Overview • Financial Information • Topical Issues – Environmental – Michigan Economy – Energy Technology 51

Alternative Energy Technologies Will Play a Role As the Energy System Evolves • Increasing Demand • Need for Economic Growth • Environmental Pressure • Energy Security Needs Current Energy System • Supply and Infrastructure Constraints • The current energy system is under pressure • Incumbent fuels and technologies(oil, gas, coal, internal combustion engines) will likely still dominate • Alternative technologies (renewables, fuel cells, distributed power, hydrogen) will become increasingly important as performance improves 52

DTE Energy Has Taken a Pragmatic Approach to New Energy Technologies Basic Philosophy • New energy technologies and approaches will play an increasing role in our energy system • Need to be active in these markets to build expertise Business Approach • Invest limited capital • Leverage existing skills and customer relationships • Look for profitable market segments to build new businesses or expand existing businesses • Exit when business opportunities don’t develop 53

DTE Energy Has a Long History of Technology Innovation in Conventional and Alternative Technologies Electrostatic Precipitators (1970 s) DTE Biomass Energy (1989) Low Sulfur Coal (1970 s) Plug Power (1997) Solar Currents (1996) DTE Energy Technologies (1998) High Temperature Superconductors (1998) Peptec Waste Coal Technology (2002) DTE Solar of California (1999) Hydrogen Power. Park (2003) 54

Today, DTE Energy Is a Leader in Alternative and Clean Energy Technologies DTE Biomass Energy DTE Energy Ventures DTE Hydrogen Project DTE Energy Technologies DTE Solar Projects 55

Appendix 56

Reconciliation of Operating Earnings to Reported Earnings Reconciliation Earnings Per Share Net Income ($ millions) DTE Energy Consolidated 3. 09 521 282 Blackout Costs (0. 10) Adjustment of EITF 98 -10 accounting change (Flowback) 0. 10 Loss on sale of steam heating business (0. 08) Disallowance of gas costs (0. 10) Contribution to DTE Energy Foundation (0. 06) Adjustment for discontinued operations of ITC 0. 03 Gain on sale of ITC 0. 37 Asset retirement obligations (SFAS 143) (0. 07) Adjustment of EITF 98 -10 accounting change (cumulative effect) (0. 09) (16) 16 (14) (17) (10) 5 63 (11) (16) Full Year 2003 Operating Reported 3. 09 Regulated Electric Regulated Gas 46 228 Holding Company (35) 16 (14) (17) (10) 5 63 (6) (1) (16) 521 Non. Regulated (4) (16) 314 28 224 (45) 57

Reconciliation of Operating Earnings to Reported Earnings Reconciliation Earnings Per Share Full Year 2002 Operating Adjustment for discontinued operations of ITC Intercompany Gain Reported Q 4 2003 Operating Tax credit driven normalization Reported Net Income ($ millions) DTE Energy Consolidated 3. 55 Net Income ($ millions) 586 Regulated Electric 352 Regulated Gas 66 Non. Regulated 207 Holding Company (39) 0. 28 46 - 4 - - 3. 83 632 356 Earnings Per Share Net Income DTE Energy Consolidated 0. 94 159 0. 42 70 1. 36 229 66 207 (39) 58