The ratings on regulated gas utility Michigan Consolidated Gas Co. (MichCon) reflect the consolidated credit quality of its parent, DTE Energy Co. MichCon represents about 10% of DTE Energy's cash flow. MichCon's stand-alone business profile is deemed a '1' (strong) and its financial profile modest. (Utility business profiles are categorized from '1' (excellent) to '10' (vulnerable).) DTE Energy's financial health has rebounded in recent years due to the realization of regulatory relief at electric unit Detroit Edison Co. MichCon's strong business profile is bolstered by its favorable gas supply and storage position, supportive regulation, and moderate customer growth. Declining gas usage per customer and competition from other gas utilities, gas pipelines, and alternative fuel sources offset these positive factors. Access...
Companies mentioned in this report are:
- DTE Gas Co.
- DTE Electric Co.
- DTE Energy Co.
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