Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (January 2022)
39 slides from Dte Energy's corporate update, Jan 11, 2022
Slide 1: DTE Energy Business Update January 10-12, 2022
DTE E NERGY B U S I N E S S U P D AT E JANUARY 10-12, 2022
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: Overview
Overview Business Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: Focusing on our team, customers and communities while delivering for investors
Focusing on our team, customers and communities while delivering for investors Ensuring the health and safety of our employees Recognized as a Gallup Great Workplace for the ninth consecutive year Our Team Addressing our customers’ most vital needs Investing an additional $90 million to combat extre
Slide 5: Solidifying future growth with updated plan; continuing 5%-7% operating EPS growth through 2026
Solidifying future growth with updated plan; continuing 5% - 7% operating EPS1 growth through 2026 ✓ Targeting higher end of 5% - 7% operating EPS growth from 2021 original guidance midpoint to 2022 early outlook ✓ 7% dividend growth extended to 2022, consistent with high end of operating EPS growth
Slide 6: Operating in a highly constructive regulatory environment
Operating in a highly constructive regulatory environment MPSC members MPSC key objectives Ranking of U.S. regulatory jurisdictions1 (Michigan in tier 1) Dan Scripps Chair • Empower customers to make informed Tier 1 7 Term ending July 2, 2023 utility choices • Assure safe, secure and reliable utilit
Slide 7: Distinctive continuous improvement culture drives strong track record of cost management vs. peer average
Distinctive continuous improvement culture drives strong track record of cost management vs. peer average All 10,000+ employees engaged in CI to Average annual percentage change in O&M costs surface and solve problems 2008 - 2020 Electric utility1 • Controlling costs while improving the customer exp
Slide 8: Business Update
Overview Business Update Environmental, Social & Governance (ESG) Appendix 8
Slide 9: Increased utility investment in 5-year plan supports 5%-7% operating EPS growth through 2026
Increased utility investment in 5-year plan supports 5% - 7% operating EPS1 growth through 2026 (billions) Capital investment increased in 5-year plan DTE 5-year investment plan 2022 - 2026 $18 $17 $3.1 DTE Gas DTE Electric $3.0 $15 ~$19.5 billion $14 $15 DTE Electric DTE Gas $3.1 DTE Vantage 2021 -
Slide 10: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy Cleaner generation • Accelerating carbon reduction plan DTE Electric investment plan − Ceasing coal use at Belle River Power Plant and reducing carbon emissions (billions) by 50%
Slide 11: Clean energy transformation creates $35 billion of investment opportunity over 10 years
Clean energy transformation and building the grid of the future creates $35 billion of investment opportunity over the next 10 years DTE Electric 10-year investment plan (billions) • Future investments could accelerate net zero emissions target from ~$35 2050 • Accelerating the cessation of coal use
Slide 12: Investment opportunities exist over the next 10 years due to need for modern, reliable grid
Investment opportunities exist over the next 10 years due to the need for a modern, reliable grid and clean, affordable generation Upper Midwest climate extremes index (CEI) DTE Electric load from vehicle electrification 3 and wind 1960 - 2020 (GWh) 70 6,000 60 50 4,000 40 30 2,000 20 10 0 0 1960 19
Slide 13: Robust investment opportunities for the grid of the future
Robust investment opportunities for the grid of the future; driving capital opportunity in 10-year investment plan Infrastructure hardening and resilience Technology and automation Hardening the system, enhancing pole top maintenance and Advanced Distribution Management System will provide a increas
Slide 14: Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan
Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan River St. Trenton Belle Belle Monroe Rouge Clair Channel River River 2021 2022 2028 2030 2040 Accelerating Evaluating cessation of coal cessation of use from 2030 coal use earlier to 2028 than 2040 • Stakehol
Slide 15: DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions
DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions DTE Gas investment plan Main renewal (billions) • Minimizes leaks, both reducing costs and improving customer satisfaction $3.1+ Base infrastructure Additional $3.0 opportunity • Enhances transmission, compression, distributi
Slide 16: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Renewable natural gas (RNG) DTE Vantage operating earnings1 (millions) • Commenced construction on new Wisconsin RNG project and secured additional project in New York • One of the largest dairy RNG suppliers based on installed
Slide 17: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile; minimal equity issuances outside of convertible equity units Planned equity issuances • Strong investment-grade credit rating 2022 - 2024 (billions) − Targeting ~16% FFO1 / Debt2 • Increased 2022 annualized dividend 7% to $3.54 per shar
Slide 18: Environmental, Social & Governance (ESG)
Overview Business Update Environmental, Social & Governance (ESG) Appendix 18
Slide 19: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environment Social Governance • Transitioning towards net zero • Focusing on the diversity, safety, • Focusing on the oversight of emissions at both utilities well-being and success of environmen
Slide 20: DTE Electric targeting net zero carbon emissions by 2050
DTE Electric targeting net zero carbon emissions by 2050 • Advancing our clean energy investments and plan to accelerate the modernization of our electric grid • Retiring coal-fired power plants • Accelerating voluntary renewables program, one of the largest in the nation • Adding thousands of megaw
Slide 21: DTE Gas targeting net zero greenhouse gas emissions by 2050
DTE Gas targeting net zero greenhouse gas (GHG) emissions by 2050 • Advancing our clean energy investments and upgrading and replacing aging infrastructure • Growing CleanVision Natural Gas Balance program, the nation’s first program to include both carbon offsets and RNG • Progressing on major tran
Slide 22: MIGreenPower program providing affordable renewable energy solutions
MIGreenPower program providing affordable renewable energy solutions • One of the largest voluntary renewable programs in the nation 2017 • Average net cost to residential customer program inception − Wind & solar program: 2.7 cents/kWh − Wind program: 1.9 cents/kWh • An average business customer us
Slide 23: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 • Offering a way to affordably offset 25% to 100% of customers’ greenhouse gas emissions from an program inception average home’s natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-product
Slide 24: Marching toward net zero carbon emissions with an accelerated plan
Marching toward net zero carbon emissions with an accelerated plan Cleaner generation mix1 (MWh %) 3% 4% 4% Storage 2% 1% 17% 16% 25% - 30% Renewables 22% 20% - 25% Natural gas 20% 77% 20% Nuclear 38% 25% - 30% Coal 2005 2023E 2028E 1. Generation mix represents one potential pathway and is subject t
Slide 25: Robust renewables energy portfolio
Robust renewables energy portfolio Renewable energy portfolio 1,860 MW capacity 1,694 MW wind 144 MW solar 6 MW landfill 17 MW biomass DTE owned renewables 1,301 MW and PPAs 560 MW 25
Slide 26: Progressing on EV initiatives
Progressing on EV initiatives 2019 Charging Forward Program program inception • Promoting EV education, infrastructure and adoption • Offering residential charger rebates and infrastructure incentives 2021 major milestones 140,000 • 930 residential rebates approved and installed gallons of gasoline
Slide 27: Environmental sustainability is critical to creating long-term shareholder value
Environmental sustainability is critical to creating long-term shareholder value Driving collaboration in the fight against climate change Protecting our natural resources • Leading by example with aggressive goal to achieve net zero • Targeting a 25% reduction of energy, water and waste at our carb
Slide 28: Committed to diversity, equity and inclusion; creating a safe and welcoming environment
Committed to diversity, equity and inclusion; creating a safe and welcoming environment Health and safety of our people is a priority Employee resource groups promote a safe and welcoming environment and offer professional development, networking, • Multiple safety committees spanning all levels of
Slide 29: Leader in volunteerism and strengthening ties with our communities
Leader in volunteerism and strengthening ties with our communities 2,900 volunteers 47,000 hours volunteered 779 nonprofits helped $90m awarded for energy assistance 1,400 students employed at DTE through programs statewide 16,000 customers enrolled in low-income self-sufficiency plans 29
Slide 30: Building on the momentum of the last decade, DTE is committed to Michigan investments
Building on the momentum of the last decade, DTE is committed to Michigan investments and supplier diversity 2020 Michigan spend (millions) $2.2b invested in Michigan businesses in 2020 44,000 jobs created since 2010 $10 $969m invested with Detroit suppliers in 2020 $67 invested with diverse women a
Slide 31: Award-winning commitment to being a top ESG employer in the country
Award-winning commitment to being a top ESG employer in the country Corporate citizenship awards Veteran friendly Gallup Great Ambassadors Championing Overall excellence America’s Most employer Workplace Award 9 Excellence Award for in diversity Responsible consecutive years commitment to supporting
Slide 32: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices 2 8 • Lead Independent Director • All board committees are composed exclusively of independent 83% 33% Directors gender or independent ethnically • Stock ownership guidelines fo
Slide 33: Executive management compensation plan is aligned with our core priorities
Executive management compensation plan is aligned with our core priorities Priorities Performance-based compensation elements Annual incentive metrics Long-term metrics • Employee engagement Highly engaged employees • Employee safety Top decile customer • Customer satisfaction satisfaction • Custome
Slide 34: Visit us: DTE Investor Relations 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 35: Appendix
Overview Business Update Environmental, Social & Governance (ESG) Appendix 35
Slide 36: Targeting higher end of 5%-7% operating EPS growth from 2021 original guidance
Targeting higher end of 5% - 7% operating EPS1 growth from 2021 original guidance midpoint to 2022 early outlook (millions, except EPS) 2022 early outlook DTE Electric $915 - $929 DTE Gas 227 - 237 DTE Vantage 85 - 95 Energy Trading 15 - 25 Corporate & Other (127) - (117) DTE Energy $1,115 - $1,169
Slide 37: DTE Electric and DTE Gas regulatory update
DTE Electric and DTE Gas regulatory update Capital General rate order Received order Effective Rate recovery ROE Rate base structure December January 1, 51% equity DTE Gas General rate order (U-20940) $84 million 9.9% $5.5 billion 2021 2022 49% debt Order Received order Additional details Renewable
Slide 38: Utilities have provided solid rate base growth
Utilities have provided solid rate base growth DTE Electric rate base1 DTE Electric authorized ROE (billions) $18.9 $20.4 $16.5 $17.7 10.3% 10.1% 10.0% 10.0% 9.9% $15.6 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 DTE Gas rate base1 DTE Gas authorized ROE (billions) $4.8 $5.2 10.1% 10.1% 10.0%
Slide 39: Reconciliation of reported to operating earnings (non-GAAP)
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 more meaningful represe