8-KOther Events

DTE ENERGY CO 8-K Report (Dec 4, 2002)

Filed December 4, 2002For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company (DTE) announced on December 3, 2002, its definitive agreement to sell its wholly-owned subsidiary, International Transmission Company (ITC), to affiliates of Kohlberg Kravis Roberts & Co. and Trimaran Capital Partners LLC for approximately $610 million in cash. ITC is responsible for DTE's high-voltage electric transmission lines and related infrastructure, which are utilized by DTE's subsidiary, The Detroit Edison Company (Detroit Edison). The sale, expected to close in the first quarter of 2003 pending regulatory approvals, is a significant strategic move for DTE, divesting a key infrastructure asset. Importantly, Detroit Edison will maintain fair and open access to Michigan's electric transmission network under FERC regulations. The ITC transmission system will continue to be operated by the Midwest Independent System Operator, and under the agreement, ITC will seek FERC approval to cap transmission rates charged to Detroit Edison customers at current levels until the end of 2005.

Key Highlights

  • 1DTE Energy to sell its transmission subsidiary, International Transmission Company (ITC), for approximately $610 million in cash.
  • 2The buyer consists of affiliates of Kohlberg Kravis Roberts & Co. and Trimaran Capital Partners LLC.
  • 3The transaction is expected to close in the first quarter of 2003, subject to regulatory approvals.
  • 4Detroit Edison, a DTE subsidiary, will retain fair and open access to the transmission network post-sale.
  • 5The ITC transmission system will continue to be operated by the Midwest Independent System Operator.
  • 6ITC plans to seek FERC approval to cap transmission rates for Detroit Edison customers until December 31, 2005.

Frequently Asked Questions

DTE Energy is selling its wholly-owned subsidiary, International Transmission Company (ITC), which owns the company's high-voltage electric transmission lines and associated facilities.

The sale is for approximately $610 million in cash, and the transaction is anticipated to close in the first quarter of 2003, pending regulatory approvals.

Yes, Detroit Edison will continue to have fair and open access to Michigan's electric transmission network following the sale, as required by FERC regulations.

Under the terms of the agreement, ITC will seek FERC approval to cap the transmission rates charged to Detroit Edison's customers at current levels until December 31, 2005. After that date, rates will be subject to FERC adjustment.