Slide 1: DTE Energy Business Update March 23, 2022
DTE E NERGY B U S I N E S S U P D AT E MARCH 23, 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 / ESG / Appendix
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 Named to the Best and Brightest Companies to Work For in Metropolitan Our Team Detroit for 16 consecutive years Addressing our customers’ most vital needs Ranked first by J.
Slide 5: Delivered strong financial results in 2021 and well-positioned for growth
Delivered strong financial results in 2021 and well-positioned for growth in 2022 and beyond Operating EPS guidance ✓ Strong 2021 operating EPS1 exceeded high end of guidance ✓ Successful spin of DTM $5.90 ✓ Raised 2022 operating EPS guidance range to $5.80 - $6.00; revised guidance midpoint of $5.9
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 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: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy Achieved operational successes in 2021 DTE Electric investment plan • Announced accelerated carbon reduction plan (billions) − Ceasing coal use at Belle River Power Plant and red
Slide 9: Building the grid of the future creates $35 billion investment opportunity
Building the grid of the future and clean energy transformation creates $35 billion of investment opportunity over the next 10 years DTE Electric 10-year investment plan Robust investment opportunities for the grid of the future to improve (billions) reliability and provide additional capacity ~$35
Slide 10: 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 11: 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 in 2021 • Announced CleanVision Natural Gas Balance Program and reached $3.1+ 5,300 customers within the first year Additional opportunity • Finished first phase of major
Slide 12: DTE Vantage: operating earnings derived from cleaner energy-related projects
DTE Vantage: operating earnings1 derived from cleaner energy-related projects Renewable natural gas (RNG) • Commenced construction on new South Dakota RNG project, new Wisconsin DTE Vantage operating earnings RNG project and secured additional project in New York (millions) • Converting Michigan-bas
Slide 13: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Planned equity issuances • Expect minimal equity issuances outside of convertible equity units 2022 - 2024 • Strong investment-grade credit rating (billions) $1.3 − Targeting ~16% FFO1 / Debt2 • Increased 2022 annualized dividend 7% to $
Slide 14: Environmental, Social & Governance (ESG)
Business Update Environmental, Social & Governance (ESG) Appendix 14
Slide 15: 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 zero1 • Focusing on the diversity, safety, • Focusing on the oversight of emissions at both utilities well-being and success of environme
Slide 16: DTE Electric targeting net zero GHG emissions by 2050
DTE Electric targeting net zero GHG 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 megawatt
Slide 17: DTE Gas targeting net zero GHG emissions by 2050
DTE Gas targeting net zero GHG 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 pro
Slide 18: 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 19: 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 20: Marching toward net zero emissions with an accelerated plan
Marching toward net zero 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 to chang
Slide 21: 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 21
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 and infrastructure incentives 2021 major milestones 140,000 • 930 residential rebates approved and installed gallons of gasoline
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 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 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 9 Excellence Award for in diversity Responsible consecutive years commitment to supporting
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 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 29: Executive management compensation plan is 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 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 31: Appendix
Business Update Environmental, Social & Governance (ESG) Appendix 31
Slide 32: Raised 2022 guidance midpoint to $5.90 per share
Raised 2022 guidance midpoint to $5.90 per share; 7% growth from 2021 original guidance midpoint (millions, except EPS) 2022 original guidance 2022 revised guidance DTE Electric $915 - $929 $918 - $932 DTE Gas 227 - 237 232 - 238 DTE Vantage 85 - 95 90 - 95 Energy Trading 15 - 25 15 - 25 Corporate &
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 Rate Capital Description Case filed PFD expected Received order Effective ROE Rate base recovery 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 Ele
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) $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 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