Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (January 2018)
29 slides from Dte Energy's corporate update, Jan 10, 2018
Slide 1: Business Update January 11-12, 2018
Business Update January 11-12, 2018 EXHIBIT 99.1
Slide 2: Forward-looking statements
2 Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate str
Slide 3: Overview / Long-Term Growth Update
3 • Overview • Long-Term Growth Update
Slide 4: Growth plan continues to deliver significant shareholder value
4 • Tax reform provides benefits for customers and is accretive for DTE • Capital investment at utilities driven by investments focused on improving reliability and the customer experience • Strategic and sustainable growth in non-utility businesses • Strong BBB balance sheet • Targeting annualized
Slide 5: Along with its customers, DTE is a winner with tax reform
5 Along with its customers, DTE is a winner with tax reform Tax reform is operating EPS* accretive Higher earnings and cash at non-utilities outweigh impact of lower cash at utilities Increased earnings − Drive operating EPS accretion to growth plan presented at EEI − Outweigh impact of addition
Slide 6: DTE Energy overview
6 ~$20B market cap Top quartile in residential customer satisfaction for both DTE Electric & DTE Gas DTE operations DTE headquarters Michigan’s largest investor in and producer of renewable energy Winner of 5 consecutive Gallup Great Workplace Awards 100+ years of continuous dividend payments Fortun
Slide 7: Growth driven by strong, stable utilities and complementary non-utility businesses
7 Natural gas transmission, storage and distribution 75% - 80% Utility Growth driven by investments aimed at improving reliability Electric generation and distribution DTE Electric DTE Gas Power & Industrial Projects (P&I) Gas Storage & Pipelines (GSP) Transport, store and gather natural gas Own and
Slide 8: Employee and customer focus provides a solid framework for success
8 Safety Customer Satisfaction Employee Engagement AGA’s Safety Achievement Award ...2nd consecutive year Employee and customer focus provides a solid framework for success National Safety Council’s top 2% of companies surveyed in safety culture Gallup’s Great Workplace Award …5th consecutive year …
Slide 9: Strong track record of cost management
9 Average annual percentage change in O&M costs 2008 – 2016 Strong track record of cost management is a direct result of our focus on continuous improvement Electric utility* Gas utility** DTE Peers DTE Peers 1% 3% -1% 2% * Source: SNL Financial, FERC Form 1; major US electric utilities with O&M gre
Slide 10: Maintaining customer affordability while investing in our utilities
10 2012A 2017E 2012A 2017E 9%$1,223 $910 DTE Electric Average annual residential electric bill DTE Gas Average annual residential gas bill Maintaining customer affordability while investing in our utilities $1,165 $826 $7.6 billion capital investment while reducing customer bills $1.5 billion capita
Slide 11: Michigan's regulatory environment continues to be constructive
11 Tier 5 Tier 4 Tier 3 Tier 2 Tier 1 2017 ranking of state utility regulatory environments* (Michigan in Tier 1) 5 States 13 States 15 States 12 States 5 States Michigan’s regulatory environment continues to be constructive Solid regulatory climate driven by Constructive and consistent regulatory
Slide 12: Overview / Long-Term Growth Update
12 • Overview • Long-Term Growth Update
Slide 13: Growth fueled by investment in utility infrastructure and generation
13 Growth fueled by investment in utility infrastructure and generation along with midstream opportunities Distribution infrastructure, maintenance, new generation Electric $10.4 billion Base infrastructure, main renewal, NEXUS related Gas $2.1 billion Expansions, NEXUS GSP $2.8 - $3.4 billion Indus
Slide 14: DTE Electric overview
14 Transitioning to cleaner energy Founded 1886 $10.4B 5-year capital plan (2018-2022) Upgrading distribution lines DTE Electric service territory DTE Electric overview ~11,000 megawatt system capacity $16.6B 2017 rate base2.2M customers
Slide 15: DTE Electric Investment
15 DTE Electric Investment Transitioning generation portfolio to more sustainable energy New generation Progress to best in class in reliability Distribution infrastructure Reduce costs through productivity and efficiency investments Base infrastructure Generation and distribution infrastructure rep
Slide 16: Increasing reliability and customer satisfaction with distribution investments
16 Improves circuit reliability up to 70% Addresses substation load growth and aging infrastructure Targets 100% remote monitoring Improves distribution reliability Increasing reliability and customer satisfaction with distribution investments Infrastructure resilience Infrastructure redesign Techno
Slide 17: DTE Gas overview
17 1.3M customers 139 Bcf storage capacity 19,000 miles distribution main Founded 1849 DTE Gas service territory $2.1B 5-year capital plan (2018-2022) $4.0B 2017 rate base DTE Gas overview Renewing 4,000 miles of cast iron and unprotected distribution main
Slide 18: DTE Gas Investment
18 DTE Gas Investment Improving service to customers through infrastructure renewal and replacement 2013 - 2017 2018 - 2022 (billions) $1.5 $2.1 Proposing accelerated 15 year main renewal cycle Infrastructure renewal Compression NEXUS related Transmission, compression, distribution, storage Base inf
Slide 19: Replacing aging infrastructure achieves a fundamental shift in performance
19 Minimizes leaks - reducing costs and improving customer satisfaction Reduces manual meter reading – improving operational efficiencies and customer satisfaction Strengthens the system - decreasing the potential for system issues Replacing aging infrastructure achieves a fundamental shift in perfo
Slide 20: GSP overview
20 Serves markets in Midwest, Northeast, Mid-Atlantic, and Southeast ??? Transport, store and gather natural gas $2.8B – $3.4B 5-year capital plan (2018-2022) 91 Bcf of storage 5 pipelines, 1,600 miles of pipe and gathering lines GSP overview
Slide 21: Expanding strategic footprint in the most prolific dry gas geology
21 Expanding strategic footprint in the most prolific dry gas geology in the country Link Lateral & Gathering Bluestone Mid-Atlantic & LNG Southeast Northeast Midwest Michigan Gathering Birdsboro Ontario Market Gulf
Slide 22: Focusing on expanding NEXUS and Link over the next five years
22 Focusing on expanding NEXUS and Link over the next five years NEXUS • FERC certificate August 25th • Construction underway • Targeting in-service 3Q 2018 • Market interest increased significantly since receiving FERC certificate • Active discussions with 1 bcf/d of demand against 0.6 bcf/d of ava
Slide 23: P&I overview
23 Leading developer of energy related businesses in North America $0.8B – $1.2B 5-year capital plan (2018-2022) Geographic diversity 191 MW renewable plant capacity Industrial energy services, renewable energy, and reduced emissions fuel P&I overview
Slide 24: Capitalizing on growth opportunities in our key business areas
24 Industrial energy services Renewable energy Reduced emissions fuel Finalized new large industrial project and continuing to develop strong queue of opportunities Integrating two Renewable Natural Gas (RNG) acquisitions and in advanced discussions on several others Maximizing performance and value
Slide 25: Appendix
25 Appendix
Slide 26: DTE Electric and DTE Gas regulatory update
26 DTE GasDTE Electric • General rate case - November 2017 (U-18999) – Requested rate recovery: $85 million; 10.5% ROE – Final order by September 2018 • Rate cases 2-3 years • General rate case - April 2017 (U-18255) – Requested rate recovery: $231 million; 10.5% ROE Self implementation $125 milli
Slide 27: A steady march toward zero-emitting and low-emitting resources
27 Transitioning portfolio to cleaner more sustainable generation by reducing CO2 emissions River Rouge Trenton Channel Belle River MonroePlanned Retiremen ts* * 2020 2030 2040 2050 Planned ad d iti o ns** * St. Clair CO2 reduction plan* 30% by ~2022 45% by 2030 75% by 2040 > 80% by 2050 ** ~3,300 M
Slide 28: Positive trends continue with Michigan's economy
28 15.4 16.3 20.9 23.4 24.9 2014 2015 2016 2017 2018E Housing Start Ups (000s) Lowest unemployment in Michigan since 2000 7th top state for business* $412 $424 $434 $447 $458 2014 2015 2016 2017 2018E Gross State Product (billions) 7th best state to make a living in 2016*** * Source: CNBC ** Source:
Slide 29: Use of Operating Earnings Information
29 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 representation of the company’s earnings from ongoing operation