Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (September 2022)
36 slides from Dte Energy's corporate update, Sep 30, 2022
Slide 1: DTE Energy Business Update
DTE E NERGY B U S I N E S S U P D AT E September 30, 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: Business Update
Business Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: DTE is delivering another successful year
DTE is delivering another successful year ✓ Continuing to deliver for our team, customers, communities and investors ✓ Announced 650 MW voluntary renewable supply deal with Ford, the largest renewable energy purchase from a utility in U.S. history ✓ Significant milestones in electric generation tran
Slide 5: 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 Received Best Employers Award for outstanding commitment to advancing employee well-being through comprehensive and innovative benefits and Our Team initiatives Addressing o
Slide 6: Operational and financial achievements across all business lines; raised 2022 operating EPS guidance
Operational and financial achievements across all business lines; raised 2022 operating EPS1 guidance Progress across all businesses Operating EPS guidance • DTE Electric: Began commercial operations at Blue Water Energy Center $6.00 • DTE Gas: Continued progress on main renewal, targeting another 2
Slide 7: Distinctive continuous improvement culture drives strong cost management vs. peers
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 - 2021 Electric utility1 • Controlling costs while improving the customer exp
Slide 8: 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 8 Term ending July 2, 2023 utility choices • Assure safe, secure and reliable utilit
Slide 9: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy DTE Electric investment plan Achieved operational successes (billions) • Accelerated carbon reduction plan − Ceasing coal use at Belle River Power Plant and reducing $15 greenhou
Slide 10: DTE Electric: advancing on environmental initiatives to provide cleaner energy
DTE Electric: advancing on environmental initiatives to provide cleaner energy to our customers Cleaner generation mix1 (MWh %) Significant clean energy milestones in 2022 3% 4% 4% Storage • Placed Blue Water Energy Center, DTE Electric’s 1,100 MW state- 2% 1% of-the-art natural gas plant, in servic
Slide 11: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth • One of the largest voluntary renewable programs in the nation − 60 large business customers; over 65,000 residential customers − 1,700 MW subscribed − 1,300 MW approved • Major contract announced with Ford Motor Company − 650 MW project to be compl
Slide 12: DTE Gas: replacing aging infrastructure to reduce GHG emissions
DTE Gas: replacing aging infrastructure to reduce GHG emissions DTE Gas investment plan (billions) Achieved operational successes • Reached over 8,700 customers enrolled in CleanVision Natural Gas $3.1+ Balance Program Additional opportunity • Finished first and second phases of major transmission r
Slide 13: DTE Vantage: strategic opportunities in renewables and industrial energy services
DTE Vantage: strategic opportunities in renewables and industrial energy services Renewables • Processing agricultural waste into pipeline-quality renewable natural gas (RNG) using anaerobic digestion • Utilizing landfill sites to provide both RNG and renewable electricity Industrial energy services
Slide 14: DTE Vantage: operating earnings underpinned by highly contracted assets
DTE Vantage: operating earnings1 are underpinned by highly contracted assets Strong growth agenda DTE Vantage operating earnings • Multiple new on-site energy and RNG projects online in 2H 2022 (millions) • Robust pipeline of projects in development $160 - $170 • $1.0 - $1.5 billion 5-year capital i
Slide 15: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile • Expect minimal equity issuances outside of convertible equity units Planned equity issuances • Strong investment-grade credit rating 2022 - 2024 (billions) − Targeting ~16% FFO1 / Debt2 $1.3 • Increased 2022 annualized dividend 7% to $
Slide 16: Environmental, Social & Governance (ESG)
Business Update Environmental, Social & Governance (ESG) Appendix 16
Slide 17: ESG 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 zero1 • Focusing on the diversity, safety, • Focusing on the oversight of emissions at both utilities well-being and success of environme
Slide 18: DTE Electric targeting net zero emissions by 2050
DTE Electric targeting net zero 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 megawatts of
Slide 19: DTE Gas targeting net zero emissions by 2050
DTE Gas targeting net zero emissions by 2050 • Advancing our clean energy investments and upgrading and replacing aging infrastructure • Progressing on major transmission renewal project • Continuing main renewal upgrades and operational improvements • Growing CleanVision Natural Gas Balance program
Slide 20: 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’ GHG emissions from an average home’s program inception natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into usab
Slide 21: Continuing to evaluate the cessation of coal use
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 22: Progressing on EV initiatives
Progressing on EV initiatives 2019 Charging Forward Program program inception • Promoting EV education, infrastructure and adoption • Offering residential charger rebates, infrastructure incentives and fleet advisory services Program-to-date major milestones 490,000 • Over 1,800 residential rebates
Slide 23: 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 ~50% reduction of energy, water and waste at our emiss
Slide 24: Committed to diversity, equity and inclusion
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 25: Leader in volunteerism and strengthening ties with our communities
Leader in volunteerism and strengthening ties with our communities 3,620 volunteers 70,000 hours volunteered 944 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 25
Slide 26: DTE is committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, DTE is committed to Michigan investments and supplier diversity 2021 Michigan spend (millions) $2.2b invested in Michigan businesses in 2021 54,000 jobs created since 2010 $10 $820m invested with Detroit suppliers in 2021 $17 invested with suppliers owned
Slide 27: Award-winning commitment to being a top ESG employer
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 10 Excellence Award for in diversity Responsible consecutive years commitment to supportin
Slide 28: 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 1 7 • Lead Independent Director • All board committees are composed exclusively of independent 91% 36% Directors gender or independent ethnically • Stock ownership guidelines fo
Slide 29: Executive management compensation plan aligned with stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Performance-based compensation elements Annual incentive metrics Long-term metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Cus
Slide 30: Visit us: DTE Investor Relations
VISIT US: DTE INVESTOR RELATIONS
Slide 31: Appendix
Business Update Environmental, Social & Governance (ESG) Appendix 31
Slide 32: Raised 2022 operating EPS guidance
Raised 2022 operating EPS1 guidance (millions, except EPS) Original guidance Current guidance DTE Electric $915 - $929 $927 - $937 DTE Gas 227 - 237 237 - 241 DTE Vantage 85 - 95 90 - 95 Energy Trading 15 - 25 20 - 35 Corporate & Other (127) - (117) (120) - (115) DTE Energy $1,115 - $1,169 $1,154 -
Slide 33: 2022 cash flow and capital expenditures guidance
2022 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) 2022 (millions) 2022 guidance guidance Cash from operations1 $2.6 DTE Electric Capital expenditures (3.7) Base infrastructure $1,170 Free cash flow ($1.1) New generation 210 Dividends (0.7) Distribution infras
Slide 34: DTE Electric and DTE Gas regulatory update
DTE Electric and DTE Gas regulatory update Capital Description Case filed Received order Effective Rate recovery ROE Rate base structure General rate order 51% equity DTE Gas December 2021 January 2022 $84 million 9.9% $5.5 billion (U-20940) 49% debt General rate case 50% equity DTE Electric January
Slide 35: Utilities have provided solid rate base growth
Utilities have provided solid rate base growth DTE Electric rate base1 DTE Electric authorized ROE (billions) $20.4 $22.4 $17.7 $18.9 10.1% 10.0% 10.0% 9.9% 9.9% $16.5 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 DTE Gas rate base1 DTE Gas authorized ROE (billions) $5.2 $5.6 10.1% 10.0% 10.0% $
Slide 36: 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