DTE Energy’s reported earnings were declined primarily due to asset sales in the first quarter of 2008 that did not recur in 2009.

DTE Energy is well positioned in these unprecedented economic times, said Anthony F. Earley Jr., DTE Energy chairman and chief executive officer. The Michigan economy remains very weak and we recognize many uncertainties may challenge us going forward, especially those tied to automotive restructuring and the steel industry. We believe that our 2009 plan adequately addresses the financial pressures we’ll face this year, and we remain committed to our planned cost reductions to minimize rate impacts to our customers. Our focus remains on continuous improvement initiatives, disciplined capital investments and improving customer satisfaction.

The company’s operating earnings increased primarily due to the rate orders at Detroit Edison, company-wide O&M cost reduction efforts and an increase in mark-to-market gains at Energy Trading; partially offset by lower sales at Detroit Edison and lower coke demand at Power & Industrial Projects. The operating earnings do not include non-recurring items, certain timing-related items and discontinued operations.

The company has also reported cash flow from operations of around $840 million in the first quarter of 2009, compared with about $890 million in the year-ago quarter.

First quarter 2009 operating earnings results, by segment:

Electric Utility:

The operating earnings for Detroit Edison were $0.48 per diluted share against $0.25 in 2008. A constructive December 2008 rate order, the expiration of the temporary rate decreased in April 2008 and O&M cost reductions were partially offset by lower sales volumes.

Gas Utility

MichCon had operating earnings of $0.37 per diluted share, against operating earnings in the year-ago quarter of $0.36 per diluted share. O&M cost reductions offset increased depreciation expense and lower customer usage.

Gas Midstream:

The operating earnings in this segment were $0.09 per diluted share, against $0.05 in 2008. Increased storage revenues and the December 2008 completion of the Millennium Pipeline were the primary drivers of the positive variance.

Unconventional Gas Production:

The segment has an operating loss of $0.01 per diluted share, down from first quarter 2008 operating earnings of $0.01 per diluted share. Lower gas prices partially offset by higher production resulted in decreased operating earnings.

Power and Industrial Projects:

The segment has operating earnings of $0.02 per diluted share, compared with $0.06 in the first quarter of 2008. The primary drivers of the decrease were depreciation deferral in the first quarter 2008 as assets were held for sale and lower coke and pulverized coal production in 2009.

Energy Trading:

The company’s Energy Trading segment had operating earnings of $0.24 per diluted share against $0.18 per diluted share in the year-ago quarter. This increase in operating earnings was primarily driven by mark-to-market gains in gas trading.

Corporate and Other: The Corporate and Other segment had an operating loss of $0.09 per diluted share compared with a loss of $0.14 in the first quarter of 2008 primarily due to lower interest and tax expense.

Outlook for 2009

DTE Energy has restated its 2009 operating earnings guidance of $2.75 to $3.05 per diluted share.

We are benefiting from our disciplined execution of continuous improvement initiatives that are reducing our costs, said David E. Meador, DTE Energy executive vice president and chief financial officer. The savings realized from these efforts during the first quarter keep us on track to achieve the $100 million of cost reductions included in our 2009 guidance. These savings will allow us to continue to provide affordable, reliable service to customers, preserve our financial strength and position our company to resume growth when economic conditions improve.

Presently, the company as successfully renewed $1 billion of its credit facility well ahead of its October 2009 maturity. This renewed credit facility, plus the $925 million credit facility which expires in October 2010, provides DTE Energy with total short-term credit capacity of $1.9 billion. As on March 31, 2009, the company had available liquidity of around $1.5 billion.