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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2010
Commission file number 1-11607
MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
(Full title of the plan and the address of the plan,
if different from that of the issuer named below)
DTE ENERGY COMPANY
One Energy Plaza
Detroit, Michigan 48226-1279
(Name of issuer of the common stock issued pursuant to the
plan and the address of its principal executive office)
 
 

 


 

MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
June 27, 2011
To the Participants, Benefit Plan Administration Committee, and Investment Committee
MichCon Investment and Stock Ownership Plan
Detroit, Michigan
We have audited the accompanying statements of net assets available for benefits of the MichCon Investment and Stock Ownership Plan (the “Plan”) as of December 31, 2010 and 2009, and the related statement of changes in net assets available for benefits for the year ended December 31, 2010. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the aforementioned financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2010 and 2009, and the changes in net assets available for benefits for the year ended December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2010 is presented for purposes of complying with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended, and is not a required part of the basic financial statements. This schedule has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
/S/ GEORGE JOHNSON & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
Detroit, Michigan

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MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
                 
    December 31  
(Thousands)   2010     2009  
ASSETS
               
Investment in DTE Energy Master Plan Trust (Note 4)
  $ 43,192     $ 37,807  
Notes receivable from Participants
    2,016       1,814  
 
           
NET ASSETS AVAILABLE FOR BENEFITS
  $ 45,208     $ 39,621  
 
           
See accompanying Notes to Financial Statements

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MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2010
         
(Thousands)        
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
       
Investment Income:
       
Net appreciation in fair value of investment in the DTE Energy Master Plan Trust
  $ 3,805  
Dividends and interest
    396  
Interest on loans to Participants
    115  
 
     
 
    4,316  
 
     
Contributions:
       
Employer
    1,131  
Participants
    2,076  
 
     
 
    3,207  
 
     
Total Additions
    7,523  
 
     
 
       
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
       
Distributions and withdrawals
    (1,860 )
Administrative and brokerage fees
    (35 )
Other
    (41 )
 
     
Total Deductions
    (1,936 )
 
     
 
       
NET INCREASE
    5,587  
 
       
NET ASSETS AVAILABLE FOR BENEFITS
       
Beginning of year
    39,621  
 
     
End of year
  $ 45,208  
 
     
See accompanying Notes to Financial Statements

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MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — PLAN DESCRIPTION
The following description of the MichCon Investment and Stock Ownership Plan (Plan) provides only general information. Participants should refer to the Summary Plan Description and the Plan document for a more complete description of the Plan’s provisions.
General
The Plan is a voluntary, defined contribution plan for regular full-time or part-time employees of Michigan Consolidated Gas Company (MichCon or the Company) and are represented by:
  Local #799C Transmission and Storage Operations (T&SO), International Chemical Workers Union Council, United Food and Commercial Workers;
  Local #799C Northern, International Chemical Workers Union Council, United Food and Commercial Workers;
  Local #70C, International Chemical Workers Union Council, United Food and Commercial Workers; or
  Local #132C, International Chemical Workers Union Council, United Food and Commercial Workers
Employees are eligible to participate as soon as administratively practicable upon hire (Participant).
The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Plan is sponsored solely by DTE Corporate Services, LLC.
DTE Energy Corporate Services, LLC (DTE LLC), as the Plan sponsor, has delegated responsibility for the financial and investment aspects of the Plan to the DTE Energy Investment Committee and for the administration of the Plan to the DTE Energy Benefit Plan Administration Committee (BPAC).
Investment management fees, brokerage fees, transfer taxes and other expenses incidental to the purchase or sale of securities are paid from investment assets. These expenses are reflected as a reduction in the fair value of the Funds.
Contributions
A Participant may contribute to the Plan on a pre-tax (Tax Deferred Contributions), post-tax (Employee Contributions), Roth 401(k) Contributions, and, if applicable, a catch-up contribution basis (Catch-Up Contributions and Roth 401(k) Catch-Up Contributions). Participants age 50 or older in the Plan year are eligible to make Catch-Up Contributions and Roth 401(k) Catch-Up Contributions in accordance with, and subject to the limitations of, Section 414(v) of the Internal Revenue Code of 1986, as amended (IRC). Participants may contribute up to 100 percent of eligible compensation (as defined in the Plan) on a combined Tax Deferred Contributions, Employee Contributions, and Catch-Up Contributions (if applicable) basis, after required tax withholdings and mandatory and voluntary payroll deductions. Tax Deferred Contributions, Employee Contributions and Catch-Up Contributions are automatically adjusted downward if the full deferral amounts elected cannot be taken. Participants may also directly roll over into the Plan distributions of certain assets from a tax-qualified plan of a prior employer, including Roth 401(k) Rollover (Direct Rollover Contributions).
The IRC limits the amount of Tax Deferred Contributions, Roth 401(k) Contributions, Catch-Up Contributions and Roth 401(k) Catch-Up Contributions which may be contributed to the Plan annually. These amounts are indexed for inflation annually. In the event a Plan Participant’s Tax Deferred Contributions reach the maximum amount permitted by the IRC, further contributions for the remainder of the Plan year will automatically be deemed to be Employee Contributions. If a Participant’s total annual additions (Tax Deferred

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Contributions, Employee Contributions, Roth 401(k) Contributions and Company Contributions) reach the IRC limit for the Plan year, the Participant’s contributions will be stopped or refunded, as applicable.
    For Local #799C T&SO Participants hired prior to November 1, 2004 and for Local #70C, #132C and #799C Northern Participants hired prior to September 1, 2005, the Company Contributions are 100 percent of the first 5 percent of the aggregate of a Participant’s Tax Deferred Contributions and Employee Contributions for Participants with six months but less than twenty-three years of service. For Participants who have completed at least twenty-three years of service, the Company Contributions are increased to 6 percent as long as the aggregate of the Participant’s Tax Deferred Contributions and Employee Contributions are at least 6 percent. The Company also provides a longevity award, equal to $600 in DTE Energy common stock, which is contributed annually in March of each year to the DTE Energy Stock Fund accounts of employees with 30 years of service or more as of March 1 and who do not meet the IRC definition of a highly compensated employee.
 
    For Local #799C T&SO Participants hired on or after November 1, 2004 and for Local #70C, #132C and #799C Northern Participants hired on or after September 1, 2005, the Company Contributions for Participants with at least six months of service are 75 percent of the first 4 percent of a Participant’s Tax Deferred Contributions and Employee Contributions and 50 percent of the next 4 percent of the aggregate of Tax Deferred Contributions and Employee Contributions. There are no Company Contributions for Tax Deferred Contributions and Employee Contributions, which in the aggregate exceed 8 percent of basic compensation.
Catch-Up Contributions, Roth 401(k) Contributions and Roth 401(k) Catch-Up Contributions are not eligible for Company Contributions.
While the Company has made its contributions to the trustee with respect to a Plan year on a current basis, the Plan permits the Company to make Company Contributions for a Plan year no later than the due date (including extensions of time) for filing DTE Energy Company’s consolidated federal income tax return for such year. Employee Contributions and Tax Deferred Contributions are paid to the Plan when amounts can be reasonably segregated. The Company expects to continue to make Plan contributions on a current basis.
Participant Accounts
Each Participant’s account is credited with the Participant’s contributions, including eligible Direct Rollover Contributions, Company Contributions and investment earnings. Forfeited balances of terminated Participants’ non-vested accounts are used to reduce future Company Contributions. The benefit to which a Participant is entitled is the benefit that can be provided from the Participant’s vested account.
Vesting
Tax Deferred Contributions, Employee Contributions, Roth 401(k) Contributions, Catch-Up Contributions, Roth 401(k) Catch-Up Contributions and Direct Rollover Contributions are fully vested at all times. A Participant vests in all Company Contributions according to the following schedule:
     
    Percent Vested
    Effective 9/1/05
Years of Service*   and 11/1/04
1   0%
2   20%
3   40%
4   60%
5   80%** or 100%***
6   100%

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*   For this purpose, any Years of Service completed before the Participant attains age 18 will be disregarded.
 
**   80% for Participants who hired before September 1, 2005 (November 1, 2004 for Local #799C T&SO participants).
 
***   100% for Participants who hired on or after September 1, 2005 (November 1, 2004 for Local #799C T&SO participants).
In addition, a Participant will have a fully vested interest in Company Contributions upon (a) attainment of age 65, (b) termination due to total disability, if entitled to benefits under the Company’s Long Term Disability Benefits Plan, (c) death, or (d) termination of the Plan.
Investment Options
Participants may elect to have their Tax Deferred Contributions, Employee Contributions, Roth 401(k) Contributions, Catch-Up Contributions, Roth 401(k) Catch-Up Contributions and Direct Rollover Contributions invested entirely in any one of the investment funds or in any combination of the investment funds. Participants may transfer existing account balances in the investment funds on a daily basis. Participants may change their investment direction and amount of future contributions effective with the next payroll period.
The Company Contribution will be initially invested in the DTE Energy Stock Fund. The Company Contribution will be made either in cash or in shares of DTE Energy common stock at the option of DTE LLC. If the Company Contribution is made in cash, the DTE Energy Stock Fund will immediately purchase shares of DTE Energy common stock on the open market. Participants can elect to transfer Company Contributions from the stock fund to one or more investments at any time.
The entire DTE Energy Stock Fund is considered to be the Employee Stock Ownership Plan (ESOP) portion of the Plan. Quarterly dividends from DTE Energy common stock are automatically reinvested in DTE Energy common stock. DTE Energy common stock dividends may be paid out in cash on a quarterly basis, at the participant’s election.
Contributions received by the trustee for the DTE Energy Stock Fund are invested in DTE Energy common stock. The trustee currently purchases and sells shares of DTE Energy common stock in open market transactions at prevailing market prices. However, the trustee may purchase or sell DTE Energy common stock from or to DTE Energy if the purchase or sale price is for adequate consideration. Brokerage commissions are charged against the DTE Energy Stock Fund.
A Participant’s interest in the DTE Energy Stock Fund is measured by share trading. A share-traded investment is traded and valued on a share basis.
Other
Includes loan repayments, loan issuances and other miscellaneous adjustments.
Administrative and Brokerage Fees
Expenses in connection with the purchase or sale of stock or other securities are charged to the Participant for whom the purchases or sales are made. Participants pay 100 percent of the investment management and other related expenses of the funds. The trustee and the Company pay all costs of administering the Plan.
Forfeited Accounts
At December 31, 2010 there was no balance in the forfeited accounts and at December 31, 2009 forfeited accounts totaled $8,000. During 2010, approximately $14,000 of forfeited non-vested accounts were used to reduce Company Contributions.

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Distributions, Withdrawals and Loans
Distributions of Tax Deferred Contributions (including Direct Rollover Contributions) will be made only upon retirement or disability, as defined under the Plan, termination of employment, death, attainment of age 59 1/2, or hardship. A hardship distribution is permitted only for (a) medical expenses, (b) tuition expenses, (c) expenditures to purchase a principal residence, (d) payments to prevent eviction or foreclosure on a principal residence, (e) payment of funeral expenses, or (f) payment of expenses for the repair of damage to the Participant’s principal residence due to casualty loss. Participants may borrow funds from their account attributable to Tax Deferred Contributions, Employee Contributions, Catch-Up Contributions, Direct Rollover Contributions, Roth 401(k) Contributions and Roth 401(k) Catch-Up Contributions not more than once during any calendar year. The number of loans outstanding at one time is limited to two, only one of which may be a principal residence loan.
Subject to certain terms and conditions, a Participant may initiate a general purpose loan for a period of one to five years, and a principal residence loan for a period up to 25 years, at a fixed rate equal to the prime interest rate plus 1 percent, updated monthly, at a minimum of $1,000 up to the lesser of:
    $50,000 reduced by (a) the highest outstanding balance of loans from the Plan during the one-year period ending on the day before the loan was made, over (b) the outstanding balance of loans from the Plan on the date the loan is made, or
 
    50 percent of the Participant’s Account at the time the loan is made.
Proceeds for any loan are obtained through the pro rata liquidation of the Participant’s account, then transferred to the Participant’s loan account and paid in cash to the Participant by the trustee. Loan repayments of principal and interest are invested as received according to the Participant’s current investment direction. Prepayment of loans can be made without penalty provided such prepayment is made in full.
Notes receivable from Participants are valued at cost plus accrued interest and are secured by a portion of the Participant’s account balance as collateral.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA, except as otherwise agreed to pursuant to collective bargaining. In the event of Plan termination, Participants will become 100 percent vested in their accounts.
Plan Amendments and Restatements
The Plan was restated and amended effective January 1, 2010 and amended three times during 2010.
During 2010, the Plan changed Trustees from Fidelity Management Trust Company to JPMorgan Chase Bank, N.A.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements of the Plan are prepared on the accrual basis of accounting.
Change in Accounting Principle
In September 2010, the Financial Accounting Standards Board issued Accounting Standards Update No. 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans. This standard revises the classification of participant loans receivable from investments to loans receivable, and revises the method of valuing these loans receivable from fair value to cost plus accrued interest. The Plan has adopted the provisions of this standard, effective January 1, 2010, and has retroactively applied the provisions

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of this standard to the 2009 financial statements. The adoption of this standard did not impact the Plan’s net assets available for plan benefits.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates.
Valuation of Investments and Income Recognition
Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.
The DTE Energy Stock Fund recognizes gains or losses on stock distributed to terminated Participants in settlement of their accounts equal to the difference between the cost and the fair value of the shares distributed.
Payment of Benefits
Benefits are recorded when paid.
Risks and Uncertainties
The DTE Energy Master Plan Trust (Master Trust) invests in various securities, including short-term investments, index funds, equity funds, fixed income funds, lifecycle funds and Company common stock. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect participants’ account balances and the amounts reported in the financial statements.
Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Plan makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Plan believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.
A fair value hierarchy has been established, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy.

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The Plan classifies fair value balances based on the fair value hierarchy defined as follows:
    Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Plan has the ability to access as of the reporting date.
 
    Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
 
    Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.
NOTE 3 — FEDERAL INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company by a favorable determination letter dated May 8, 2003, that the Plan and related Trust are designed in accordance with applicable sections of the IRC. The favorable determination letter indicates that the terms of the Plan conform to the requirements of Sections 401(a) and 401(k) of the IRC. The Company, therefore, has a basis for deducting contributions to the Plan. The Participants are not taxed currently on Tax Deferred Contributions, Catch-Up Contributions and Company Contributions to the Plan or on Plan earnings (including appreciation) allocated to their accounts. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan’s legal counsel believe that the Plan and related Trust are currently designed and being operated in compliance with the applicable requirements of the IRC. In addition, the Plan administrator is not aware of any unrecognized tax benefits as of December 31, 2010 or 2009. Accordingly, no provision for income taxes has been included in the accompanying financial statements. The Plan is no longer subject to federal income tax examinations by the IRS for years prior to 2007.
The Plan requires distributions under IRC Section 415 for contributions in excess of the annual IRC Section 415(c) limits. There were no excess contributions in 2010 and 2009.
On February 1, 2010, the Plan requested a new determination letter from the IRS for the Plan as amended and restated effective January 1, 2010.
NOTE 4 — THE DTE ENERGY MASTER PLAN TRUST
The Master Trust consists of certain commingled assets of the Plan, the DTE Energy Company Savings and Stock Ownership Plan, the Detroit Edison Company Savings & Stock Ownership Plan for Employees Represented by Local 17 of the International Brotherhood of Electrical Workers, and the Detroit Edison Company Savings & Stock Ownership Plan for Employees Represented by Local 223 of the Utility Workers Union of America.
The Plan’s investment in the Master Trust in the Statement of Net Assets Available for Benefits represents the Plan’s allocated portion (approximately 3 percent in both December 31, 2010 and 2009). The Plan’s allocated portion of the investments is equal to the fair value of the Plan’s assets contributed, adjusted by the Plan’s allocated share of the Master Trust investment income and expenses, Employee and Company Contributions and distributions and withdrawals paid to Participants.
A summary of the Master Trust assets as of December 31, 2010 and 2009 is as follows:
                 
(Thousands)   2010     2009  
Investments, at fair value
               
Short-term investments
  $ 136,268     $ 158,618  
Index funds
    447,330       224,394  
Equity funds
    441,654       477,341  
Fixed income funds
    89,832       82,910  

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(Thousands)   2010     2009  
Lifecycle funds
    102,363       113,734  
Company common stock
    251,844       300,034  
Other
    10,602       6,715  
 
           
Assets held in Master Trust
  $ 1,479,893     $ 1,363,746  
 
           
The following is a summary of investment gain in the Master Trust for the year ended December 31, 2010:
         
(Thousands)        
Interest, dividend and other income on investments
  $ 22,273  
Net appreciation in index funds
    48,400  
Net appreciation in equity funds
    66,998  
Net appreciation in fixed income funds
    2,223  
Net appreciation in lifecycle funds
    12,868  
Net appreciation in company common stock
    13,301  
Net appreciation in other
    314  
 
     
Total investment gain
  $ 166,377  
 
     
The following table presents investments of the Master Trust measured at fair value as of December 31, 2010:
                         
(Thousands)   Level 1     Level 2     Total  
Interest bearing cash:
                       
Short-term investments
  $ 136,268     $     $ 136,268  
Registered investment companies:
                       
Index funds
    145,089             145,089  
Equity funds
    409,563             409,563  
Fixed income funds
    89,832             89,832  
Other
    10,602             10,602  
Common collective trusts:
                       
Index funds
          302,241       302,241  
Equity funds
          32,091       32,091  
Lifecycle funds
          102,363       102,363  
Company common stock
    251,844             251,844  
 
                 
Total Investments at fair value
  $ 1,043,198     $ 436,695     $ 1,479,893  
 
                 
The following table presents investments of the Master Trust measured at fair value as of December 31, 2009:
                         
(Thousands)   Level 1     Level 2     Total  
Interest bearing cash:
                       
Short-term investments
  $ 158,618     $     $ 158,618  
Registered investment companies:
                       
Index funds
    73,152             73,152  
Equity funds
    444,441             444,441  
Fixed income funds
    17,749             17,749  
Other
    6,715             6,715  
Common collective trusts:
                       
Index funds
          151,242       151,242  
Equity funds
          32,900       32,900  
Fixed income funds
          65,161       65,161  
Lifecycle funds
          113,734       113,734  
Company common stock
    300,034             300,034  
 
                 
Total Investments at fair value
  $ 1,000,709     $ 363,037     $ 1,363,746  
 
                 
Level 2 assets are valued at the underlying investments’ net asset value at the close of the day multiplied by the number of shares in the fund. Level 2 assets do not have any unfunded commitments at December 31, 2010 and 2009 and there are not any restrictions on redemption.
Short-Term Investments
This category represents certain short-term fixed income securities and money market investments that are managed in a mutual fund. Pricing for the mutual fund is obtained from quoted prices in actively traded markets, and the fund is classified as a Level 1 asset.

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Index Funds
This category includes equity and fixed income investments based upon financial market indexes. An index mutual or commingled fund principally holds the securities that comprise the index at any point in time. Index funds are priced based upon the individual securities held in the mutual or commingled fund. Mutual funds are Level 1 assets and Commingled funds are Level 2 assets.
Equity funds
This category consists of actively managed mutual and commingled funds primarily holding large, mid and small capitalization domestic equities and non-U.S. developed and emerging market equities. Mutual and Commingled funds are priced based upon the individual securities held in the mutual or commingled fund. Mutual funds are Level 1 assets and Commingled funds are Level 2 assets.
Fixed Income
This category consists of actively managed mutual and commingled funds primarily holding corporate bonds from various industries, government bonds of the U.S. and other governmental entities, and mortgage backed securities. Mutual and Commingled funds are priced based upon the individual securities held in the mutual or commingled fund. Mutual funds are Level 1 assets and Commingled funds are Level 2 assets.
Lifecycle
This category consists of commingled funds that modify their stock, bond, and money market asset allocations consistent with previously disclosed asset allocations intended to support retirement at a specified target date. Commingled funds are priced based upon the individual securities held in the commingled fund. Commingled funds are classified as Level 2 assets.
Company Common Stock
DTE Energy common stock is obtained from quoted prices in actively traded markets and valued at the composite opening or closing price as reported on the New York Stock Exchange. The stock is classified as a Level 1 asset.
Other
This category consists of a mutual fund that invests directly or indirectly in equity, fixed income, money market and derivative security assets and is classified as a Level 1 asset.
NOTE 5 — DTE ENERGY STOCK FUND
Significant components of the changes in net assets available for plan benefits in 2010 relating to the Plan’s portion of the DTE Energy Stock Fund are as follows:
         
(Thousands)        
Additions to Net Assets Attributed to:
       
Net appreciation in fair value of investment in the Master Trust
  $ 338  
Dividends and interest
    118  
Interest on loans to Participants
    14  
Employer contributions
    1,145  
Participant contributions
    172  
 
     
Total Additions
    1,787  
 
     
Deductions from Net Assets Attributed to:
       
Distributions and withdrawals
    (321 )
Net transfers to other plan investments
    (1,041 )
Net transfers to other sponsored plans
    (58 )
Other deductions
    (5 )
 
     
Total Deductions
    (1,425 )
 
     
Net Increase
    362  
Net Assets Available for Benefits
       

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(Thousands)        
Beginning of year
    8,512  
 
     
End of year
  $ 8,874  
 
     
NOTE 6 — RELATED PARTY TRANSACTIONS
Certain Master Trust investments are shares of mutual funds managed by the Plan’s trustee. Therefore, these transactions qualify as party-in-interest transactions.

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SUPPLEMENTAL SCHEDULE

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MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN
(Federal Employer Identification Number: 20-5898509; Plan Number: 006)
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
(Form 5500, Schedule H, Item 4i)
December 31, 2010
(in Thousands)
                         
        Description of Investment            
    Identity of Issue   (Including Rate of            
Party- in-   Borrower, Lessor   Interest, Collateral and           Current
Interest   or Similar Party   Par or Maturity Value)   Cost   Value
*
  Participant loans   Loan receivable, interest rates ranged from 4.25 percent to 10.75 percent during 2010   $ -0-     $ 2,016  

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Table of Contents

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
         
 
  MICHCON INVESTMENT AND STOCK OWNERSHIP PLAN    
 
       
 
  /S/ LARRY E. STEWARD
 
Larry E. Steward
   
 
  Vice President Human Resources and    
 
  Chair of Benefit Plan Administration Committee    
June 27, 2011

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