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2009 operating earnings were $543 million, or $3.30 per diluted share, compared with 2008 operating earnings of $471 million, or $2.89 per diluted share. Operating earnings exclude certain non-recurring items and discontinued operations. Reconciliations of reported to operating earnings for both the quarter ended and 12 months ended Dec. 31, 2009 and 2008, are at the end of this news release.

"I'm proud to report that our employees all pulled together during the recession this past year to not only produce solid earnings results, but also sharply improve our operational and reliability metrics," said Tony Earley, chairman and CEO. "However, while our continuous improvement program and one-time cost savings helped to preserve our financial health, neither of our utilities earned their authorized return. Our non-utility businesses also overcame the weak economy to deliver solid earnings and maintain their growth momentum.

"Our 2009 performance enables DTE Energy to continue to be a leader in Michigan's economic rebound," Earley added. "During 2010 our focus on continuous improvement will allow us to efficiently invest capital to meet renewable and environmental regulations. These investments will be a catalyst for bringing new jobs to Michigan while ensuring clean, reliable and affordable energy for our customers."

For the fourth quarter of 2009, DTE Energy had reported earnings of $120 million, or $0.72 per diluted share, compared with $129 million, or $0.79 per diluted share in 2008. Operating earnings for the fourth quarter 2009 were $120 million, or $0.72 per diluted share, compared with $142 million, or $0.87 per diluted share in 2008. The operating earnings per share reduction is primarily a result of lower sales volumes at Detroit Edison due to economy and weather, coupled with the timing of maintenance activities and higher benefit expenses. For complete earnings details, see the press release.

Sebastien Cournoyer, Operating System project lead at our Belle River Power Plant in China Township, Mich., knows more than a little French. Cournoyer is a native of Quebec, Canada, where French is the official language.

French also is one of the two official languages of Haiti, with Haitian Creole the other. Following the Haitian earthquake, many English-speaking disaster-relief organizations such as the Red Cross and U.S. Coast Guard found a need for help in translating to and from French and Haitian Creole. Cournoyer's fluency in both French and English proved to be invaluable.

"Four days after the earthquake, I put my name on an Internet list indicating I could help translate between French and English," Cournoyer said. "Within minutes, I received my first e-mail with a message that needed to be translated."

Cournoyer became part of a team of volunteers from around the world who worked from their computers to translate text messages sent from people on the ground in Haiti who needed assistance into English. The messages were translated within moments for relief organizations and, in many cases using the global positioning system, relief teams in Haiti were able to respond to the situations immediately.

"We were able to provide an unbelievable amount of information," Cournoyer said. "Some of the information resulted in rescues."

Over about a week and a half, Cournoyer said he spent as many as 16 to 18 hours a day helping with the efforts. During that time, his team helped translate more than 15,000 messages.

After the rescue efforts were called off, his team started taking steps to transfer the electronic platform they created to the Haitian government. It's expected that the platform now can be used to help people connect with friends or relatives they lost contact with after the earthquake.

"It was a good way to get involved, and quite an experience," Cournoyer said. "And I want to thank John Dau (Belle River plant manager) for the support he gave me."

While other employees were not able to provide direct help to the relief efforts, they found another way to contribute - through our DTE Energy Foundation's offer in January to match employee donations to Haitian disaster relief.

The program resulted in $60,463 in donations from 664 employees and retirees. Our foundation agreed to match up to $50,000 in donations but is considering whether to match the full amount. The money will be contributed to public charities involved in the disaster-relief efforts in Haiti.

Our company responded well to the economic crisis of 2009; Michigan, not so good. Nearly 50 percent of U.S. job losses since 2000 have been in Michigan. And while Michigan has been severely impacted by the loss of automotive jobs, it also has underperformed the rest of the country in most other job categories.

"What is our call to duty?" asked Granholm in her speech last week. "For me, it comes down to this: To fight every day for the jobs the people of Michigan want and need. And to help them make the difficult, often painful, transition from an old economy that's disappearing to a new economy that's only just beginning to emerge."

So who's working on turning the talk about a new economy into something tangible?

Business Leaders for Michigan (BLM), a think tank of 70 CEOs from companies employing more than 300,000 people and generating nearly $1 trillion annually in Michigan, proposed a five-step plan to transform our economy and create good jobs. Dubbed the "Michigan Turnaround Plan," the treatise contains concrete steps to get our state into the "Top Ten" for economic growth.

Both Chairman and CEO Tony Earley, and President and Chief Operating Officer Gerry Anderson sit on the BLM board.

According to the BLM's plan: "Setting a goal for becoming a Top Ten state for job and economic growth can instill a new philosophy and culture in Michigan that renews our sense of hope and provides a path to prosperity for all."

Changing the way our state manages its finances is step one. CEOs and site location consultants view Michigan's business climate as the worst in the country.

"Michigan and California literally need to do a 180 if they are ever to become competitive again…," noted one CEO surveyed by BLM.

According to the survey, an uncompetitive business climate has caused new businesses to stay away from Michigan.

"Companies pay on average 3 to 4 percent more on state and local taxes than the states we most often compete against for manufacturing or knowledge jobs," the survey said. "In today's global economy, that's the difference between making a profit or not for many businesses."

The philosophy is that a vibrant economy and sound fiscal management are mutually dependent upon each other, which leads to step two - stronger financial management practices and right-sizing spending through structural budget reforms.

Being fiscally fit means being competitive, step three of the turnaround plan. For the short term, the plan is to make Michigan's business tax system competitive - and for the long term - make the overall cost of doing business here competitive. It's the only way our state will attract and retain jobs.

"Where the old Michigan economy was all about autos and manufacturing," Granholm said, "the new Michigan economy is much broader - clean energy, life sciences - like bio, medical devices, homeland security and defense, advanced manufacturing, film and tourism."

Step four of the BLM plan involves making investments that create a great job environment - investments with the greatest long-term economic impact. Investments that leverage key state assets and build on existing strengths can give Michigan distinctive advantages in the global economy. Future investments should focus on higher education to ensure a strong talent pool, infrastructure for airports and freeways that connect our peninsulas to the global economy, and the Great Lakes and cities that make Michigan a good place to live.

Finally, the plan supports collaborative regional growth strategies, innovation and entrepreneurship across all business sectors. This includes growing the pool of venture capital in Michigan, as our DTE Energy Ventures does, and expanding business incubation and acceleration services. Leveraging Michigan's talent pool in energy and engineering also ensures a path forward.

"Job providers," Granholm said, "are the critical architects and builders of the new Michigan."

In our company, the architecture and building of the economy are evident throughout our enterprise. Many organizations - such as Community and Governmental Affairs, Retail Marketing and Major Enterprise Projects - play a role in our state's new economy.

At a recent leader meeting Gerry Anderson said, "This state needs leaders and companies who can turn the tables on Michigan's economic situation - and I believe we are one of the companies in a position to do that. I also believe that being part of that is something that our people can aspire to and connect to."

Look for the upcoming "DTE Energy will help turn Michigan's economy around - part 2" at a later date.

"It's been an El Nino winter for us," said company meteorologist Rick Foltman. "Typically, that means temperatures are either milder or colder. There's been lots of snow and rain out west and down south. Here in Michigan, we've been cooler than normal - and dryer, with below-average snowfall."

The cooler-than-normal temperatures, coupled with the economic crisis in Michigan, have taken a toll on many of our customers.

"We know that utility bills present a hardship for many households that are struggling to make ends meet," said Joyce Hayes-Giles, senior vice president, Customer Service, in a guest column published in the Michigan Chronicle. "But even in these incredibly difficult times, there are assistance options available that can help people stay safe and warm."

DTE Energy has created strong partnerships with a number of community agencies that can help individuals and families who are having trouble paying their utility bills. Last year, we were able to connect these agencies to more than 200,000 of our customers, who received almost $120 million in state and federal energy assistance.

Working with the faith-based community, we've also hosted a number of energy assistance forums in churches and neighborhood centers so those struggling with energy bills can find solutions in one place.

"Agencies such as THAW (The Heat And Warmth fund), the United Way - 2-1-1, the Salvation Army and the Department of Human Services have come together at these events to answer questions and provide assistance to our customers in need," Hayes-Giles said.

The largest of these community-based events took place last fall at the Michigan State Fairgrounds, where in just one day more than 5,000 people were able to obtain help paying their energy bills.

DTE Energy is also making a special effort to reach out to our most vulnerable customers - senior citizens and families living on limited incomes. Through community-based efforts, we have helped thousands of customers file for and receive the Michigan Home Heating Credit, a statewide program that helps offset energy costs.

Fifty-seven nonprofit agencies throughout the state partnered with our DTE Energy Foundation to help even more customers in need. Foundation grants supported programs such as United Way for Southeastern Michigan's 2-1-1 On the Go! homeless outreach program, connecting the homeless with the services and support necessary to fulfill basic needs. Our foundation also awarded a grant to Forgotten Harvest, in support of operations of a new hybrid diesel/electric truck that will be used to rescue fresh food from grocery stores and other donors and then delivered to 155 food pantries, soup kitchens and shelters throughout metropolitan Detroit.

Employees stepped up to help their neighbors in need through a number of volunteer efforts, including our holiday fund drive. Employees donated more than $100,000, which was double matched by our foundation. That $300,000 was then distributed by the Community Foundation for Southeast Michigan to organizations that directly help our most vulnerable citizens.

"In this time of unprecedented need in our state," Hayes-Giles said, "DTE Energy is committed more than ever to help our customers manage their energy bills and keep their service on. We share this commitment with our many local partners because no company, no individual, no church or social service agency can tackle this problem alone. It must be a community effort."

There's eight weeks to go till spring arrives. So, while we wait for the thaw, we can help by encouraging customers to contact us at 1.800.477.4747 as soon as possible if they are having trouble paying their energy bills.

"We vow to continue our many outreach efforts to bring information and assistance options to the communities where our customers live and work," Hayes-Giles said.

President Barack Obama tours laboratories at the Massachusetts Institute of Technology for demonstrations of cutting-edge clean energy technologies. PowerPoint slide provided by DTE Energy Ventures.

"QD Vision's Quantum Light platform will help lighting and display manufacturers reduce the carbon footprint of their products even as they continue delivering higher quality, better efficiency and lower costs for customers," said Knut Simonsen, senior vice president, Energy Resources. "This technology promises to set a new standard for these types of multi-billion-dollar global industries," he said.

Nanotechnology is the engineering of functional systems at the molecular scale. In its original sense, nanotechnology refers to the projected ability to construct items from the bottom up, using techniques and tools being developed today to make complete, high-performance products. When K. Eric Drexler popularized the word in the 1980s, he was talking about building machines on the scale of molecules, a few nanometers wide - motors, robot arms and even whole computers, far smaller than a cell.

QD Vision says its products can lower energy use and improve light quality by combining light-emitting diodes (LEDs) with tiny synthetic crystals or quantum dots. Measuring just 5-billionths of a meter wide, the crystals glow when excited by a trickle of electricity. QD Vision and its partners plan on coming out with a $100 bulb that uses 12 watts, matches the output of a 75-watt incandescent bulb and can last 50 times longer.

"The Quantum Dot technology used by QD Vision," says Jeff Crusey, senior business analyst, DTE Energy Ventures, "can convert ultra violet and blue light - as with a standard LED light - to red and green light, giving the light a warmer hue, while providing higher energy efficiency."

QD's technology with LEDs has promise as an efficient replacement of incandescent light, with less than one-tenth of the energy usage. Basically, this technology uses a plastic lamp containing an array of LEDs that screws into a standard recessed ceiling socket. The yellow-tinted optic on the surface contains quantum dots that convert the light into a better white hue. QD Vision's technology also is expected to be used in flat panel displays to improve their efficiency, color sharpness and battery life, while helping to reduce costs.

In October of last year, President Barack Obama toured laboratories at the Massachusetts Institute of Technology for demonstrations of cutting-edge clean energy technologies being developed with government research funding. Among the technologies, a low-power, long-life Array Lighting LED lamp with Quantum Light optic technology was demonstrated. The visit was part of this administration's commitment to energy research and development of new, efficient and clean energy technologies.

"We look forward to creating more LED lighting options for our customers with QD Vision products," said Mike McNalley, director of Energy Efficiency and Business Energy Services. "We plan to encourage QD Vision to team up with Michigan-based LED lighting companies and broaden their market reach."

DTE Energy's Smart Garage display at the North American International Auto Show in Detroit. Photo by Mark Houston.

Electric vehicles on Electric Avenue were the clear theme of this year's NAIAS, which was held in January at Detroit's Cobo Center. And DTE Energy played a prominent role in promoting their potential.

"Electric vehicles have been around for more than a century," said Tony Earley, chairman and chief executive officer, during an auto show panel discussion on electric vehicles sponsored by Inforum, a professional women's alliance. "At the beginning of the 20th century, electric cars outnumbered gas engines by two-to-one. Detroit even had a fleet of electric taxicabs.”

But with the refinement of the internal combustion engine and the creation of a highway infrastructure, electric vehicles went by the wayside.

"Now," Earley said, "this is an idea whose time has come."

In its Jan. 11 edition, Time magazine reported: "After decades of failed promise, 2010 could finally be the year of the electric car, with at least two major models, the plug-in hybrid Chevrolet Volt and the all-electric Nissan Leaf, set to hit dealers' lots by the end of the year."

In fact, nearly every major automaker plans to introduce an electric car over the next three years, although questions about the costs, the technology and the consequent demand on the electric infrastructure remain.

Most plug-in electric vehicles are expected to be priced at $40,000 or more.

"We can pretty much guess what neighborhoods are going to buy these vehicles," Earley said. "It's going to be upper end neighborhoods, and so the local infrastructure will really be challenged."

Our nation's power plants and major power lines are capable of providing adequate electricity to meet the additional demand of plug-in electric vehicles for the foreseeable future but, in many cases, power lines in certain neighborhoods will need to be upgraded.

To help make electric transportation a success, we, along with other Edison Electric Institute utilities, are signatory to an industry-wide plug-in electric vehicle market readiness pledge. The pledge was created to support the electrification of the transportation sector with a focus on the following areas of infrastructure: customer support, customer and stakeholder education, vehicle infrastructure incentives and utility fleets.

"Marketing created the role of program manager of Electric Transportation and Infrastructure to understand what business model makes sense for the company to follow based on our service territory and the penetration of electric cars we will see in our area," said Ana Medina, who is heading up this position.

Energy companies around the country are following different models, including installing public and workplace infrastructure on their own or partnering with other entities. Some utilities are installing charging infrastructure at customers' homes.

"We have to make sure we have competitive rates for electric vehicles," Medina said, "which will allow customers to charge their car at a low price with incentives offered for nighttime, or off-peak, charging.

"Off-peak charging is critical because we want customers to charge their vehicle at night, when we have existing system capacity."

A goal is to "understand what the customer is expecting from us as a utility," said Medina, "and to make sure we work with key stakeholders such as dealers and local municipalities in order for the customer to have a seamless experience when they go to the dealership to buy an electric vehicle, and when they take it home and charge it."

To help build better understanding of electric vehicles, our company participated in the NAIAS with a Smart Garage display at the Michigan Economic Development Corporation's EcoXperience in the Michigan Hall. The display included a quarter-mile indoor ride-and-drive test track surrounded by landscaped and forested terrain. More than 50,000 NAIAS visitors were expected to visit our Smart Garage.

"The Smart Garage display was made up of five key parts," Medina said. "There was a plug-in hybrid electric vehicle (PHEV) Ford Escape that plugged into a standard 120-volt outlet; a 240-volt charging option; a smart meter or intelligent charging option; and, finally, a solar panel. If our customer has a 120-volt outlet where they park, they're plug-in ready and can drive home a PHEV and charge it."

Charging time is approximately six to eight hours for a fully-depleted battery. For customers who want "a faster charging experience," Medina said, "they can get a 240-volt charge option, which takes approximately three to four hours. The smart meter featured at the Smart garage illustrated how customers were able to plug in and charge during off-peak times."

The smart meter at the garage also "is capable of sending price signals to our customer, and some of the plug-in electric vehicles will allow you to set charge controls on the vehicle display," said Medina.

Finally, the Smart Garage display at the auto show had a solar panel demonstration for those customers "who want to use renewable energy sources to charge their car," Medina said.

"In the early stages of electric vehicles we should, in general, be able to handle the load electric vehicles will bring," says Haukur Asgeirsson, manager, Engineering. "However, there may be localized problems in neighborhoods where electric vehicles are clustered, so to minimize loading problems, customers will be able to participate in our electric vehicle rate that's attractive for charging during off-peak hours."

Other organizations in the company working on electric transportation include Distribution Operations, which analyzes the impact of additional load to the grid, and DTE Energy Ventures, investing in and working with high potential energy technology companies to develop products and nurture businesses.

"People are much more open to electric vehicles," said Axel Krieger, a partner in McKinsey and Company, which led a study on automotive and assembly practice in the Americas. "This is a big chance for car companies to start out new."

And a chance for our company to participate in demonstration projects to test this not-so-new technology in the real world.

Customer Service's Chris Reliuga is the Gatekeeper Employee of the Month for June. Photo by Dave Mitchell.

The Gatekeeper program provides a way for employees to help older adult customers to get the help they need while maintaining their independence and dignity.

Under the program, employees and retirees aware of seniors in need are encouraged to contact our Consumers Affairs group, 866.262.9683 or e-mail gatekeeper. The referrals are passed along to the local Area Agency on Aging, which connects the seniors with the services for which they may be eligible.

The Michigan Office and Commission on Services to the Aging recognizes one DTE Energy employee each month for making a referral through the Gatekeeper program. Reliuga was recognized for referring a senior who was having a hard time getting around after being released from the hospital following a heart attack and stroke.

Reliuga received a $50 gift card at an Oct. 9 surprise visit by Customer Service Senior Vice President Joyce Hayes-Giles. She will be eligible for a year-end drawing for a $1,000 prize and the Gatekeeper of the Year honor.

"I am in contact with so many seniors a day that I can't remember them all," Reliuga said. "These seniors can be bedridden or homebound, and might not have relatives or friends who can help them out. They're often afraid and don't know where to go."

Reliuga said she hears from these seniors after they receive a notice that Detroit Edison or MichCon will be disconnecting service for non-payment.

"We run into a lot of these cases, and we all have made a lot of referrals through the Gatekeeper program," Reliuga said. "Through the program, they not only may get help with their bills, they also may find they're eligible for other services, like Meals on Wheels or housekeeping.

"It's nice that our company is directing us to help these customers. But it's sad because there's still a lot of these people out there."