Slide 1: EEI Financial Conference November 11-13, 2014
EEI Financial Conference November 11 - 13, 2014 EXHIBIT 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 The information contained herein is as of the date of this presentation. Many factors may impact forward-looking statements including, but not limited to, the following: impact of regulation by the FERC, MPSC, NRC, CFTC and other applicable governmental proceedings and regula
Slide 3: Overview, Long-Term Growth Update, Summary
3 • Overview • Long-Term Growth Update ̶ Utilities ̶ Non-utility businesses • Summary
Slide 4: DTE Energy's growth is driven by strong, stable utilities and complementary non-utility businesses
DTE Energy’s growth is driven by strong, stable utilities and complementary non-utility businesses 4 DTE Electric Electric generation and distribution DTE Gas Natural gas transmission, storage and distribution Complementary Non-Utility Businesses Strong, Stable and Growing Utilities Fully Regulated
Slide 5: Our system of priorities is fundamental to how we create value
5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet Our system of priorities is fundamental to how we create value for our investors 5
Slide 6: Our utilities continue to move toward best in class in customer satisfaction
Our utilities continue to move toward best in class in customer satisfaction Source: JD Power JD Power Gas Utility Residential Gas Customer Satisfaction Ranking Midwest Region: Large Segment #1 2006 2012 2013 2014 G a s JD Power Electric Utility Residential Electric Customer Satisfaction Ranking Mid
Slide 7: DTE's continuous improvement capability has enabled us to lead the industry in cost management
DTE’s continuous improvement capability has enabled us to lead the industry in cost management * Source: SNL Financial, FERC Form 1; major US Electric Utilities with O&M > $800 million; excluding fuel and purchased power ** Source: SNL Financial, FERC Form 2; gas distribution companies with greater
Slide 8: Michigan's regulatory environment is viewed as very constructive
Michigan’s regulatory environment is viewed as very constructive; we work hard to earn this every day Source: Standard & Poor’s, January 2014 MI 8
Slide 9: We remain committed to our operating earnings and dividend per share growth targets
* Reconciliation to GAAP reported earnings included in the appendix (dollars per share) We remain committed to our operating earnings* and dividend per share growth targets; our 2015 early outlook midpoint of $4.55 EPS is 5.8% above our original 2014 guidance midpoint $2.83 $3.33 $3.64 $3.75 $3.94 $
Slide 10: Strong earnings growth opportunities give confidence in delivering 5%-6% operating EPS growth
Our strong earnings growth opportunities coupled with our contingency planning gives us confidence in our ability to deliver 5% – 6% operating EPS* growth Utility Earnings Growth Non-Utility Earnings Growth DTE Earnings Growth Share Dilution Contingency DTE EPS Growth Non-Utilities 5% - 7% 5% - 6% U
Slide 11: DTE has consistently delivered total shareholder return above the peer average
DTE has consistently delivered total shareholder return above the peer average * As of October 31, 2014 Source: Thomson Reuters DTE Energy’s Total Shareholder Return Percentile Ranking Among S&P 500 Utilities 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile 70% 67% 90% 93% YTD 1 YR 3 YR 5 YR 11
Slide 12: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update ̶ Utilities ̶ Non-utility businesses • Summary 12
Slide 13: DTE will be transforming its generation mix by replacing coal with natural gas and renewables
DTE will be transforming its generation mix by replacing coal with natural gas and renewables Generation Capacity (GW) 2014 2030 Scenario* Gas / Renewables Coal Nuclear / other ~70% ~30% ~50% ~20% ~20% ~10% ~11.3 ~12.5 * Ultimate timing and mix of generation impacted by MISO capacity requirements an
Slide 14: Our electric utility is investing $7.5 billion in three key areas through 2019
Our electric utility is investing $7.5 billion in three key areas through 2019 $5.7 billion Distribution infrastructure renewal Power plant reliability Compliance Gas plant acquisition Generation asset base renewal $1.4 billion $400 million $7.5 billion Targeting 5% - 6% growth Base Infrastructure N
Slide 15: Generation replacement will significantly increase DTE Electric's average annual investment
Generation replacement will significantly increase DTE Electric’s average annual investment over the next 10 years DTE Electric Average Annual Investment ~$1.5 ~$1.8 2015-2019 2020-2024 ~$1.2 2010-2014 New generation investment (billions) 15
Slide 16: Working collaboratively with the state on regulation and energy policy
We are working collaboratively with the state on regulation and energy policy to support future investment Revised business cost of service rates 2Q 2015 General rate case self-implementation 3Q 2015 Michigan Energy Policy Throughout 2015 Resulted from industrial rate design workgroup; accurately re
Slide 17: Structural rate reduction opportunities provide headroom for needed investments
Structural rate reduction* opportunities provide headroom for needed investments in generation and infrastructure 6% Renewable and other surcharge reductions (2014) 8% Nuclear bond securitization roll off (2015) Potential change to retail access * Represents estimated average rate changes across all
Slide 18: Our gas utility is making $1.6 billion of reliability and infrastructure investments through 2019
Our gas utility is making $1.6 billion of reliability and infrastructure investments through 2019 Strengthen and expand infrastructure Main renewal, meter move-out and pipeline integrity Compression Targeting 7% - 8% growth Base Infrastructure Infrastructure Renewal Nexus Related Total $825 million
Slide 19: Expanding main replacement would reduce replacement cycle by approximately half
Expanding to 160 miles per year by 2018 would reduce our planned main replacement cycle by approximately half ~$80 Investment* (millions) Miles ~80 miles ~$130 ~160 miles Key Components of Expanded Infrastructure Recovery Mechanism (IRM) Filing Increase annual investment ~$50 million beginning Jan
Slide 20: Recovery of DTE Gas capital investments will require periodic rate cases
Recovery of DTE Gas capital investments will require periodic rate cases • Expect next general rate case filing in 2016/2017 • Target to keep annualized rate increases in low single digits Capital Investment and Recovery 2015 - 2019 Infrastructure recovery mechanism Base rates (depreciation) Custome
Slide 21: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update ̶ Utilities ̶ Non-utility businesses • Summary 21
Slide 22: Gas Storage & Pipelines growth strategy leverages existing and new assets
The Gas Storage & Pipelines business growth strategy leverages existing and new assets Understand and anticipate opportunities in new resource plays Pipeline Platform Gathering Platform Storage Platform 22 Leverage existing foundational assets and build out incremental projects Develop greenfield pi
Slide 23: Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms
Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms DTE Gas DTE Storage Proposed NEXUS Pipeline Marcellus Shale Bluestone Gathering System Bluestone Pipeline Utica Shale Michigan Gathering 23
Slide 24: Bluestone and Millennium investments increase takeaway capacity in the Marcellus region
Bluestone and Millennium investments increase takeaway capacity in the Marcellus region • Aggressively building out Bluestone gathering and exploring opportunities in expanded geography • Bluestone lateral expansions of 0.4 Bcf/d in 2014-2016 to bring total capacity to 1.0 Bcf/d • In discussions on
Slide 25: NEXUS continues to move forward
NEXUS continues to move forward to bring Utica and Southwest Marcellus gas to Michigan, Chicago and Ontario markets • Agreements executed with LDC’s and several key shippers; balance expected by year end • Capacity 1.5 Bcf/day; scalable up to 2 Bcf/d • DTE’s expected investment is $700 million to $1
Slide 26: Vector's open season is underway for an expansion
Vector’s open season is underway for an expansion to provide increased capacity • Extended binding open season to November 21, 2014 ‒ Discussions with key shippers are progressing • Goal of open season: ‒ Recontracting current capacity ‒ Incremental expansion opportunities • Expected in-service date
Slide 27: Gas Storage & Pipelines' operating earnings potential is $145 million by 2019
Gas Storage & Pipelines’ operating earnings* potential is $145 million by 2019 2013A 2014E 2015E 2016E 2017E 2018E 2019E * Reconciliation to GAAP reported earnings included in the appendix Pipeline Platform** Gathering Platform Storage Platform New Project Development (Other gathering and pipeline e
Slide 28: Power & Industrial Projects is focused in three key business lines
Power & Industrial Projects (P&I) is focused in three key business lines across the country Industrial Energy Services Renewable Energy Reduced Emissions Fuel 28
Slide 29: Each business line is pursuing new opportunities contributing to growth aspirations
Each business line is pursuing new opportunities contributing to P&I’s growth aspirations • On-site energy and utility services for industrial, commercial and institutional customers • Long-term growth from existing expansions, greenfield projects and acquisitions • Wood-fired power plants and landf
Slide 30: Power & Industrial Projects is targeting $145 million of operating earnings by 2019
Power & Industrial Projects is targeting $145 million of operating earnings* by 2019 through growth in each of its business lines 2013A 2014E 2015E 2016E 2017E 2018E 2019E ~$145 $35 $70 $85 ($65) $20 $70 New Project Development / Acquisitions Renewable Energy Reduced Emissions Fuel Industrial Energy
Slide 31: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update ̶ Utilities ̶ Non-utility businesses • Summary 31
Slide 32: Summary
Summary • Proven track record of premium returns • Targeting 5% to 6% operating EPS* growth and parallel dividend growth ‒ 2015 operating EPS outlook of $4.55 provides 5.8% growth over 2014 original guidance midpoint ‒ Generation replacement drives long-term rate base growth • Constructive regulatio
Slide 33: Contact Us
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 33
Slide 34: Appendix
Appendix oe DTE Energy:
Slide 35: 2015 early outlook has a midpoint of $4.55 per share
2015 early outlook has a midpoint of $4.55 per share; growth from original 2014 guidance midpoint is consistent with our 5% to 6% target * Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading 2014 Revised Guidance 2015 Early Outlook Anticipat
Slide 36: 2014 cash flow guidance
2014 cash flow guidance Cash Flow Summary Capital Expenditures Summary 2013 2014 Actual Guidance Cash From Operations* $2.2 $1.6 Capital Spending (1.9) (2.2) Free Cash Flow $0.3 ($0.6) Asset Sales - - Dividends (0.4) (0.5) Net Cash ($0.1) ($1.1) Debt Financing: Issuances $1.2 $2.3 Redemptions (1.1)
Slide 37: 2015-2017 cash from operations and equity issuances plan supports utility capital spend
2015 – 2017 cash from operations and equity issuances plan supports utility capital spend and a strong balance sheet * Excludes securitization ** Debt excludes securitization, a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity Equity $0.9 Debt** $2.6
Slide 38: DTE Electric plans $7.5 billion of investments over the next 5 years
DTE Electric plans $7.5 billion of investments over the next 5 years 2014E 2015E 2016E 2017E 2018E 2019E Base New Generation Other Projects* Environmental Distribution Reliability 2015E - 2019E Total ~$13.1B ~$17.1B YE Rate Base** $600M $800M Depreciation * Includes AMI, Ludington expansion and othe
Slide 39: DTE Gas plans nearly $1.6 billion of investments over the next 5 years
DTE Gas plans nearly $1.6 billion of investments over the next 5 years 2014E 2015E 2016E 2017E 2018E 2019E 2015E - 2019E Total Base Gas Renewal NEXUS related $240 $300 $340 $360 $275 $275 $1,550 $125 $600 $825 ~$3.2B ~$4.6B YE Rate Base* $96M $119M Depreciation * Includes working capital (millions)
Slide 40: Gas Storage & Pipelines assets have expansion opportunities
Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Pipeline Assets Capacity Bcf/ d In-Service Millennium Pipeline 0.8 Future Expansion (planning phase) 0.2 - 0.5 2017 + Total Planned Capacity 1.0 - 1.3 Bluestone Pipeline (bi-directional) 0.6 Expansion #1 0.2
Slide 41: The Michigan Public Service Commission is the state regulator for electric and gas utilities
The Michigan Public Service Commission (MPSC) is the state regulator for electric and gas utilities Source: MPSC website - www.michigan.gov/mpsc 41 Sally Talberg Commissioner Appointed: 7/3/13 Term Ends: 7/2/19 Greg White Commissioner Appointed: 12/4/09 Term Ends: 7/2/15 • The MPSC establishes fair
Slide 42: Michigan economy continues to improve
Michigan economy continues to improve Michigan most improved Pro-Business state AMERICAN ECONOMIC DEVELOPMENT INSTITUTE with Pollina Corp. Real Estate Michigan leads nation in manufacturing job growth Michigan is moving up in ranking of competitive states… …and continues to receive positive recognit
Slide 43: Michigan economic indicators highlight continued growth
Michigan economic indicators highlight continued growth over the next few years 43 7.1% 13.4% 8.8% 7.4% 7.0% 6.8% 6.5% 2007 2009 2013 2014E 2015E 2016E 2017E 420 366 408 414 423 430 438 2007 2009 2013 2014E 2015E 2016E 2017E (billons) 2,295 1,144 2,433 2,256 2,446 2,573 2,760 2007 2009 2013 2014E 20
Slide 44: 2008-2013 Full Year Reconciliation of Reported to Operating Earnings
2008 – 2013 Full Year Reconciliation of Reported to Operating Earnings Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary
Slide 45: Reconciliation of Other Reported to Operating Earnings
Reconciliation of Other Reported to Operating Earnings Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance meas