Dte Energy Company · NYSE:DTE
Dte Energy — EEI Financial Conference 2023
26 slides from Dte Energy's conference presentation, Nov 12, 2023
Slide 1: EEI Financial Conference
EEI Financial Conference November 12 - 14, 2023
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipa
Slide 3: Progressing on utility focused investment plan
Progressing on utility focused investment plan • Opportunity to invest ~$50 billion over the next ten years on customer-focused capital to support building the grid of the future and clean energy transition − Investment for reliability improvement and preparing the grid for increased demand at DTE E
Slide 4: Executing on ~$50 billion, 10-year customer-focused capital investment plan
Executing on ~$50 billion, 10-year customer-focused capital investment plan while maintaining affordability Investing in customer-focused initiatives… …while maintaining affordability ✓ Distinctive continuous improvement culture drives cost Modernizing electric grid management Preparing for impacts
Slide 5: DTE Electric: transformational investments in distribution and generation
DTE Electric: transformational investments in distribution and generation Capital investment plan focused on building the grid of the future and transition to cleaner generation • Distribution infrastructure investment drives further reliability improvements − Continue accelerated tree trimming − Co
Slide 6: Distribution Grid Plan outlines path to significantly improve reliability
Distribution Grid Plan outlines path to significantly improve reliability DGP outlines detailed roadmap to increase reliability by over 60% over the next 5 years • Investing $9 billion in electric infrastructure; targeting reliability improvements of 60% • Continuing preventative maintenance by upgr
Slide 7: IRP supports transition to cleaner energy future while focusing on reliability and affordability
IRP supports transition to cleaner energy future while focusing on reliability and affordability Accelerating path to cleaner generation… …while continuing to focus on customer affordability and economic development • Transforming generation by targeting carbon emission reductions • Investing over $
Slide 8: Energy legislation drives Michigan's clean energy future and supports our IRP
Energy legislation drives Michigan’s clean energy future and supports our IRP • Legislation pushes the pace of decarbonization and deployment of renewables − Renewable compliance standards of 50% by 2030 and 60% by 2035 − Clean energy standard of 80% by 2035 and 100% by 2040 − Allows MPSC to approve
Slide 9: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions Capital investment opportunities focus on infrastructure improvements and decarbonization • Significant investment recovered through Infrastructure Recovery Mechanism − Renewed 1,700 miles since progra
Slide 10: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Capitalizing on a growing preference for cleaner, more efficient energy • Advanced discussions on custom energy solutions and RNG projects, both expected to be operational in 2024 • Strong development pipeline with opportunities
Slide 11: Appendix
Appendix 11
Slide 12: ESG efforts are key priorities
Environmental, social and governance (ESG) efforts are key priorities; aspiring to be the best in the industry Award-winning commitment to ESG priorities Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural
Slide 13: IRP outlines accelerated path to cleaner energy
IRP outlines accelerated path to cleaner energy First 5 years (2023 - 2027) Generation mix1 (MWh %) • Ceasing coal use at one Belle River unit in 2025 and remaining unit in 2026; converting to 1,300 MW natural gas peaking resource 1% 3% 2% 14% • Adding 1,200 MW of solar 22% 17% 3% 32% • Adding 350 M
Slide 14: Progressing on EV initiatives
Progressing on EV initiatives Charging Forward Program 2019 • Promoting EV education, infrastructure and adoption program inception • Providing residential and commercial rebates, infrastructure support and fleet advisory services • Offering unique solutions such as home charger installation financi
Slide 15: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 1,600 • Allows customers to attribute up to 100% of electricity use to business customers renewable sources • Recognized by National Renewable Energy Laboratory as having the largest Green Tariff program in the country, fulfilling more load under con
Slide 16: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 program inception • Offering an affordable way to balance 25% to 100% of customers’ GHG emissions • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into usable gas 12,700 • Carbon offset program
Slide 17: Building on the momentum of the last decade
Building on the momentum of the last decade, committed to Michigan investments and supplier diversity 2022 Michigan spend (millions) $2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $20 $900m invested with Detroit suppliers in 2022 $19 invested with suppliers owned by wom
Slide 18: Economic development fuels Michigan's growth
Economic development fuels Michigan’s growth ✓ Michigan ranked in the top 10 by CNBC for America’s Top States for Business in 2023 ✓ $4 billion General Motors investment to convert an assembly plant to produce full-size electric pickup trucks, creating 2,300 jobs ✓ $1.6 billion Our Next Energy inves
Slide 19: Committed to Diversity, Equity and Inclusion
Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment Employee groups create an inclusive environment where differences Health and safety of our people is a priority are celebrated and a sense of belonging exists for all employees • Multiple safety committees
Slide 20: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Composition of DTE Board of Directors1 Best-in-class governance practices • Lead Independent Director 1 7 • All board committees are composed exclusively of independent Directors 91% 36% gender or independent eth
Slide 21: Executive management compensation plan is aligned with stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Annual or long-term incentive metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Customer satisfaction Our communities • Customer
Slide 22: Headwinds
Overcame a significant portion of the ~$370 million of unprecedented operating earnings1 headwinds through one-time cost management initiatives and opportunities throughout the portfolio 4Q 2022 1H 2023 3Q 2023 Total impact $100 million headwind $165 million headwinds $106 million headwinds = ~$370
Slide 23: Overcoming majority of unprecedented headwinds
Overcoming majority of unprecedented headwinds; additional storm and unfavorable weather in 3Q exceed considerable one-time cost saving effort (millions, except EPS) 2023 original 2023 revised Primary drivers guidance guidance Headwinds from lower-than-expected rate order, higher DTE Electric $1,010
Slide 24: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Strong balance sheet supports robust customer-focused investment agenda, building the grid of the future and transition to cleaner generation • Consistently generating healthy cash flows • Maintaining solid investment-grade credit rating
Slide 25: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2023 2023 guidance guidance Cash from operations1 $3.2 DTE Electric Capital expenditures (4.2) Base infrastructure $1,200 Free cash flow ($1.0) Cleaner generation 500 Dividends (0.8) Distribution in
Slide 26: Reconciliation of reported to operating earnings
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management believes that operating earnings provide a meaningful representati