Bringing On The Gas Developing Liquefacation and Gasification Resources Overseas and Domestically to Serve a Growing Nat

1. Bringing On The Gas Developing Liquefacation and Gasification Resources Overseas and Domestically to Serve a Growing Natural Gas Demand Mark Stiers Vice President, Gas Sales & Supply DTE Energy July 17, 2007

2. Discussion Topics • Background Information • North American Natural Gas Supply & Demand • MichCon’s Perspective on LNG • New Opportunities in a Global Natural Gas Market

3. Background Information • MichCon: 1.3 Million Customers(10th Largest U.S. Gas Utility) • 2.6 Bcf Peak Day • 125 Bcf Storage Capacity • 600 Bcf Throughput • Detroit Edison: 2.1 Million Customers(7th Largest U.S. Electric Utility) • 42,000 Miles of Power Lines • 11,300 MW of Generation • 10 Power Plants (9 coal-fired & 1 nuclear) • 25 Peaking Units • 60% Overlap of Customers

4. Background Information • DTE Storage Capacity • Utility: • 2007 Total: 125 Bcf • 2008 Total: 129 Bcf • Non-Utility • Current Total : 75 Bcf • Potential Future Total: ~90 Bcf • DTE is Interconnected to Multiple Large Interstate/Intrastate Pipelines • Great Lakes (Canada) • ANR (Midcontinent, Gulf, Canada, Rockies) • PEPL/Trunkline (Midcontinent, Gulf,Rockies) • Union/TCPL (Canada) • Vector (Midcontinent, Gulf,Rockies) • CMS (Midcontinent, Gulf,Rockies, Canada)

5. Background Information Alaska Gas Michigan Storage Hub AECO Hub LNG LNG

6. North American Natural Gas Supply & Demand Source: EIA 2006 Annual Energy Outlook

7. MichCon’s Supply and Transport Portfolio

8. MichCon’s LNG Perspective • Very supportive of increased imports of LNG to meet projected increase in demand and offset decline in North American supplies • Would consider long term supply commitment for deliveries of LNG under the following conditions: • Agreement with Regulator (MPSC) regarding purchase being reasonable and prudent – especially so if fixed price contract • Either index, basis purchase at major pooling point • Potential fixed price, if regasification risk is incorporated at an appropriate ‘single source discount’ • Acceptable NAESB force majeure provision • Agreed upon participation in diversion opportunities • At present it appears that financial markets have provided the required price certainty associated with the majors’ capital commitment to regasification facilities.

9. MichCon’s LNG Perspective Foreign Gas Field Liquefacation Facilities Regasification Facilities Pipeline Delivery Shipping Contract Requirements Discount associated with single source gas supplies In exchange for long term purchase commitment Control or participation in all diversion related opportunities to other markets Rationale Similar to diversion and secondary points provided when contracting for transport services Similar to local production discounts Compensation for increased delivery interruptions

10. Settled and Forward Price Differentials Source: WoodMac

11. Global Storage Opportunities • Does the North American storage market become a global storage market ? • Is there a LNG transaction structure that takes advantage of both outright price movements and price spreads between North America and Europe? • Is there an ability to provide ‘synthetic storage’ to European utilities using North American assets? • As additional LNG regasification facilities are added in North American, do the NBP and NYMEX winter / summer spreads start to converge • DTE is well positioned to provide storage services to the U.S Midwest and Northeast and would welcome the possibility of additional storage value NBP Additional $2.00/Mcf NYMEX $2.00/Mcf Winter / Summer Spread 2007 / 2008