DTE - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the DTE Energy Third Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After these speakers' remarks, there will be a question-and-answer session. Barbara you, Thank Instructions] Tuckfield. [Operator

your You may begin call

Barbara Tuckfield

you, good everyone. and morning, Thank

the like started, statement everyone of reference get we to forward-looking on including statements. to I X harbor Before safe would remind the the to Page presentation, read

to also Ruud, reconciliation are is the a earnings, presentation Vice Appendix. morning to Dave earnings GAAP CEO; Norcia, and measure. Our President turn I'll start to morning. provided operating refer With in this the financial the Please which and President CFO. Jerry and references this call includes now, Senior to of non-GAAP operating over earnings and us And it Jerry

Jerry Norcia

you and our on our us. morning, lot provide long-term updates and a XXXX today. thanks, and thanks then details giving on with financials. performance we'll of your positive good you Then an I'll I Barbara, our an be update have plan. for joining questions. overview of take will Well, share Dave everyone, to

Slide on start let's X. So

communities us This for On growth. Award. and to team, in XXXX the by progress I Gallup positions the engagement we start XXXX with mark, quarters our three our for is on a And continues behind to the said deliver consecutive were ninth well Workplace Great customers, future our of having recognized for investors. DTE to be with our still second as that that year. strong description we continue quarter us, call,

inclusion. addition, over In to committed customers. focus equity we remain Switching diversity, our to our on and

is really incredible history. our like seen having over thank we entire would some something storms. these events. It summer, five XX ways territory to team had storms experienced service our historic outages. never I with in for in we have know, responding for major you As DTE's XXX,XXX This

We making into future. improvements and hours provide of to as committed our to our service it how am that, for I for countless customers. continuous our very are work to the reliable and to power power now And excellence understand efforts restore grateful. important crews Our is part customers,

our Oakland workforce counties. have line overhead to over to X,XXX two-thirds maintenance, an our the X,XXX million increasing invest in trim the our over tree impacted workforce from outages from to most and Washtenaw accelerate We XXXX, program in effort the made preventative as XXXX almost including to to are additional Wayne, We people, our In from X,XXX. accelerated we efforts tree communities, XXX are an trimming of decision related. our tree our $XX and

making on been increasing grid focus significant and Additionally, investments our we reliability. have

off excellence our our are efforts deliver our get strategy while prepares grid we seen plan We Service long-term Commission with focusing all safe to the plan reliable addresses for on transportation the trees advancing severe electrification in clean, Public addresses in the investment filed territory. that of service service distribution grid We the The and for the patterns Michigan and that customers. have our wires increasingly eventual and energy, the September. weather

communities. our to on Moving

more our provide energy. commitment We are cleaner, continuing to reliable

first our to The community with in MIGreenPower facility of We have be area. largest project. kind build will partnered the Washtenaw County XX-megawatt the solar its

investor financial well growth. strong a are positioned the continue On to and to we year front, deliver have

our and to line and As our see on X% dividend with our X% to you track in outlook EPS in deliver growth will growth EPS growth. plan, are XXXX five-year XXXX we through

Slide up XXXX a Now is let's to successful X. to be year. turn very shaping

electric a share. base that to while operating our you'll And XX% $X.XX the in able We are results to XXXX we EPS I am I keep guidance throughout range. flat our of that This per proud EPS at confident is feel number the $X.XX but deliver rates midpoint end our final operating most raising guidance from these new of from we're higher continue XXXX. guidance. of original EPS to see is growth our XXXX very

increased not have case our our May XXXX, early next until since file rates base electric We year. don't of next electric rate plan and to we

are $X.XX Even to original of end from operating we midpoint. we of an per EPS XXXX X% RFE deliver early the providing the rolling outlook XXXX, with this at to For continue range share. the off guidance year, earnings $X.XX growth

increase the We that dividend XXXX line annualized Today, will done of are announcing top past. we a growth work operating end the of towards end in in the have higher target. with X% range as to also hitting our EPS we our

expect X,XXX of megawatts or state-of-the-art of planned, retired cycle and River of megawatts updated St. built combined gas and is made megawatts an for than year, coal in In look coal turbine plant almost of In on be ceasing earlier order another of and gas to we plan goal be further in and reliability and retire ensure of to for we XX% also call, our plant continue toward we power plants clean, for Clair reliable X,XXX-megawatt forward We plan the customers, earlier planned. coal last or step natural to working our wind contracted ways mentioned XXXX, quarter the have we'll running with quarter, with and use accelerate coal coincide solar the decarbonization, energy carbon our power always one this plants to affordable Rouge address nearly River reducing X,XXX emissions. fleet. X,XXX while and XXXX generation this new to integrated to originally announced up retirements maintaining power fall to I our our significant of and in by This file XXXX, We all year we preparing retirements. stakeholders peaker years Channel have purchased that two of our to resource affordability than As Trenton XXXX. customers. Belle

unique their an is customers. innovative, solutions Through point, and are Now cleaner over and managed transform way DTE substantially Vantage. our are more efficient. bringing better in renaming be Vantage helping nonutility the we cleaner to reflects our to our moving energy vantage to segment produced Industrial The name energy customers and our position DTE to we side, Power the

Now let's to plan. to five-year capital turn our X review Slide

Over and continue improve agenda, our to the focus customer five-year generation cleaner the reliability investment to and infrastructure investments investments on especially experience. plan, our utilities in

Our while strategically investment our updated in customers' two five-year business Over Investments utility at plan is needs plan. our the to $XX always, is will billion, higher total and on Vision the which than five-year billion align affordability. more Overall, billion for $XX.X be for agenda further we investment years. non-utility we next to the maintaining our into bring look initiatives. to ways Plan aggressive and utilities. advance of of continue over our are our focused ESG our a plan prior our five capital with robust $X XX% reliability plan And have as improve customers Clean

our X. zero XX%, turn goal carbon step At XXXX, than coal we announced plan two years the originally Power Electric, at Plant use DTE to emissions. let's carbon planned. by emissions by to decarbonization Now our of net toward Slide This ceasing another by earlier reducing accelerate Belle River is

investments, our five-year is customers plan the that and our The toward generation integrated Additionally, earlier we file planned. our than our electrification accelerate affordable journey DTE our increased generation driven expectations. in infrastructure is an this grid our and serve. Electric decision initiatives investment and one high billion exceeding cleaner $X continues we preparing renewable XXXX, program, distribution cleaner due communities by important to which increase year expect resource making fall plan energy energy for in of the is DTE By to now, for hardening to voluntary reliable still

This nation, at first MIGreenPower which impressive continues project. Washtenaw to grow largest have with an MIGreenPower rate. quarter, is County, the to build of program, partnered one the in we Overall, our solar the

have residential business megawatts and commitments over So voluntary of reached we with renewable customers. far, XX,XXX customers over XXX large

advanced additional stages We discussion of customers. have an with future in XXX megawatts

Gas, the of offset opportunity supports At the for to natural operating we $XX over track discuss gas renewal, renewable gas Balance a both customers electrification times next and load supporting electric the we provides grid to zero to program. X% This up automation. This and advanced improving circuit carbon opportunity carbon from program with Earlier to the smarter are offsets we let's this And emissions enabling infrastructure utility distribution growth of years our and X% Natural gas Slide infrastructure redesign, reducing them company. on investment purchase greenhouse our to and usage. by five of long-term restoration year, to reliability on enable with achieve net earnings now billion XXXX. DTE announced Gas system our hardening X. For and technology our with are at growth their natural the new XXX% gas

$XXX it forward DTE Overall, voluntary next is growing. program and We how as and replacement the over as over become are customers our planning successful years billion replace look $X Electric. DTE we be infrastructure will we with our and to integrity emissions for operating company. to earnings Gas. that of at carbon methane the our aging reduce our investments, and innovative footprint plan an long-term million. of five this are seeing subscribed, at we program Along to upside we the X,XXX potential and investing X% with main fast we on pipeline proud DTE are investing Earlier, technology Gas, have Overall, expect upgrade to products at growth renewable

to X. Slide turn Now let's

Vantage. DTE earlier, As renamed P&I to business I we mentioned our

on are billion planning this five between over segment investing $X at We next billion $X.X to years. the

XXXX, earnings are from of million $XX decarbonization-related in million million to approximately business earnings We XXXX, in operating this growing coming to with in $XX million XX% $XXX $XXX the operating of targeting to projects.

Low and BTUs XXX% the for projects first supported RNG XXX,XXX you project another will offtake the end production slated million of agreement on with opportunities and term. quarter RNG industrial market natural additional construction start business REF entered over aggregate, into about this told sunsets and growth, our year, in in see Standard. in by the second California's project vehicle contracted As There Federal next construction, market the year. we gas long serve South to third strong we fuel year, three York. Fuel Carbon quarter of been additional which In We RNG these Earlier RNG project, now is a to Fuel this services. Renewable has of RNG up energy producing New Standard in an project under new be the an renewable and continue at Wisconsin the year, commenced Dakota, in will of the which per

decarbonization position Dave it financial turn you very I'll to a manufacturing Dave, that, a with over the positioned And puts continue growing on to carbon us opportunities, good you. as are nationwide. efficient We a uniquely with energy, over capitalize storage. implement explore especially additional coal also give and plants, to including preference This in to capture to to to update. systems, generation for up open opportunity

Dave Ruud

Thanks, Jerry, morning, everyone. and good

Let XX quarter me start share. for per quarter on financial were operating a into million. Slide our translates third $XXX the results. $X.XX to This earnings Total review

You earnings quarter breakdown quarter. the at for of were in in storm top can $XXX the our find a by due start XXXX, I'll primarily offset Utilities. reconciliation detailed lower XXXX partially third including segment, million to review the a the than higher was our cost, weather the GAAP Electric DTE with Appendix. reported commercial the This earnings sales. and cooler of by page higher EPS on to

and were DTE expenses The rate decrease earnings partially third last offset Operating was growth earnings the implementation. $XX driven costs, Moving year. than on rate quarter Gas. million based primarily higher by lower the O&M by to

on and Let's projects. third third This the primarily down of new the keep is $XX million row. Operating XXXX, Vantage earnings million. earnings to quarter driven were than the higher RNG by REF DTE page moving $XX

row, next can had solid the relatively flat quarter, operating with energy you On see quarter-over-quarter. another earnings trading

The & the of is Other a in main the There will fourth of timing Corporate variance. reverse for largest this taxes, $X million which unfavorable Finally, are quarter-over-quarter. quarter. drivers was driver couple

true-up We the onetime also item DTE of to a spin tax had subsequent Midstream.

fourth timing the three favorable As quarter. result quarters for the the reversal we approximately balance the look a first will to million of tax adjustments the $XX year, forward in

of at put our Corporate expected in year. & represents DTE our from XXXX. that year-to-date for the guidance very our continuing position us This year quarter earned $X.XX the in XXXX full Other operations Overall, a share a for So within great has per quarter to fall strong and third results is results third segment.

to turn XX. Let's Slide

$X.XX As raising the XXXX EPS $X.XX midpoint guidance per our to of Jerry are we mentioned, operating share. from

the end to Our reflects million $XX the this $X.XX we bias revised higher higher EPS end combat range. extreme impact And full range $X.XX guidance also power investing for the with to performance, investment we EPS towards biased weather-related strong per no with share. our customer operating additional to are XXXX to be outages of in expect year-to-date year is This our bills. reliability as to operating

further businesses some our future for opportunities well positions in Additionally, which years. we've in success contemplated invest during XXXX, DTE

on move discuss to Let's outlook. to XXXX our Slide XX

We long-term are growth through operating continuing EPS strong some to milestones. X% X% significant

of Through X% XXXX We at the achieve this, billion are business $X.X XXXX. will and mandatory 'XX, equity from converting sunset of growth the original end will REF guidance. we in

main Gas and generation Group operating Our to renewal Electric other cleaner will early $X.XX and DTE and support work capital of $X.XX investments In EPS to XXXX, toward plan. by in see will investments. DTE distribution improvements growth customer-focused be $X.XX infrastructure XXXX midpoint driven will the continued our our share. higher per per we outlook hitting at is share, range end of

of future driver XXXX will opportunistically leveraging services lower energy we $XX provide growth Other, earnings REF remarket driven is the expense. strength As million business associated at This project DTE result Vantage, & a continued At emission biggest forward. cash is by will is XXXX going reduced in off improvement some for of This industrial fuels that and This savings for Corporate this the the of largely earnings serve debt. year earnings to XXXX year. the our of are costs in as at interest offset and earnings in XXXX. RNG our end year-over-year final base approximately higher-priced of discussed, XXXX interest new and segment earnings at by rolls the net years. is projects in

Let's wrap balance equity discuss our to questions. plan turn up to issuance Slide XX sheet and taking and before your

solid maintaining cash increasing in sheet to plan on also focus issuances by units plan equity the investment DTE beyond billion. our has capital minimal our balance strong Due while to our continue in metrics. XXXX, We $X five-year convertible equity flows,

FFO have of a credit strong We to investment-grade debt target rating an XX%. and

fees increasing are spin management third of million the billion repurchased our the X% Additionally, our Midstream to was liability Other. Using $X.X the funds debt growth. our quarter, won't plan In the breakage business we XXXX debt Corporate decrease debt previous financial associated debt issuance, debt the of is statements, a NPV you raised accretive, to supports and of DTMs retirement the debt. $XXX per following & a we Since management This share. midstream see of EPS with at little from by over we in incurred completed positive, allocated early $X.XX corporate in our and large this liability further the dividend long-term plan Business. level approximately our

for be the long-term we from XXXX this X% in great is X% well our summary, in returns supports confident good increased decade and to have generation about With growth so you looking far growth guidance EPS. X% in I guidance. investors to and original past dividend increased can come success growth achieving delivering plan for So line EPS to joining we over and that are our cleaner our capital for year strong total to DTE XXXX a shareholder increased XXXX positioned reliability and with premium the five-year and our our utility our expect with while continues feel thank open questions. us line growing customers. with today, deliver the that,

Operator

from [Operator Your Instructions] with Guggenheim first Pourreza Partners. Shar question comes

line is Your open.

Shar Pourreza

are spending schedule. at the you Belle I of cease CapEx would the how operations looking plan, ahead River Just announced coal on plan? you mean in generation currently

you XXXX, more spending proposals looking of you incremental We've to can peer. constructs embedded of by look in year's I'm So And be of of opportunity may of Any early asking, all of out get you your into an the for, do guess questions. especially EEI time -- that kind IRP the light I a Jerry? couple sort coal aggressive there are is filing. So 'XX at from next frame? Michigan an seen sort specific for And ahead opportunities IRP some filing? provide there generation, of the

Jerry Norcia

Sure.

coal Shar, fuel Plant like or accelerated we've other potentially Belle RNG hydrogen. as and the natural from So sources you've conversion to Power River seen, gas

certainly So by XXXX. that's works that

going we're to IRP to going lot the of and an and fall to mentioned, file year, coal really interested get from in the of acceleration you a an parties we're commission in our year use the other As next stakeholders next of feedback that have will like interest retirements.

to XXXX, the but we pull scenarios As Monroe you know, in at looking forward, retire that slated Shar. many is plant to are coal

and IRP, that So will -- generation. baseload how over to we baseload replace exactly megawatts that we're details X,XXX that the be of more when do of generation. also much become It's transparent file going the

going reliability and and to have we're do through good affordability carefully, get feedback to very how stakeholders. So think we our from maintain

$X five-year driven see investments you generation on hydrogen investments as in in what an is increase that primarily facility pilot outlook Energy well billion of [Omtydro] our our cleaner and small perhaps Blue really the we current have some So as in about Center. that's our a voluntary at renewables by Water

Shar Pourreza

And And and 'XX? of Jerry, guess 'XX that kind discretionary any were differ sorts XQ from into in of flex of the maybe in and you how headwinds to you're do plan, offset flex using about that So you guidance on does some anything plan of contingency not spending right? storm just and I'm kind then, What I 'XX. question and of have? if that other a sort of asking

Jerry Norcia

XXXX. deliver going We're to

in storm XXXX. of current our our are for reflected guidance casts those already in All results and

that high we'll that. extremely of tell our can in we likely being mentioned and Dave as deliver And confident description I'm -- in end I the delivering at XXXX. you speaker So in I

speak XXXX, for have a about feeling strong I really about to moment. XXXX, delivering just no that 'XX. concerns and So we're about

that year we'll to then of delivery XXXX. the end of the towards spent the higher in we as As you've past, And all trend levels usual, of building consume ensure we if seen contingency don't the guidance. of contingency,

'XX in point feeling and again, is really towards strong is locked 'XX really at good this that end the in and of So trending guidance, higher and time.

a matter for As plan we're XXXX. fact, 'XX of a build on to busy working strong

Shar Pourreza

for the what we're the is right? get side. is winter. step Perfect. energy little a for to seeing on commodities, run How trying me, lastly gas And $X And -- now at. That's Obviously, trading just was the I how with I over portfolio on counterparties conversely. in there risks we there this guess, there? is opportunity Jerry, are year kind with Is of to any as gas? to of And terms the volatility an positioned kind saw exceed of Texas

Jerry Norcia

-- long as We Shar. gas, slightly natural our is relates it portfolio to

anything, upside prices have in up. if bias commodity there's So as gas for business the gone

say, level of So biased that for would, some certainly upside.

Operator

Your comes with of the Tonet Jeremy from next JPMorgan. line question

open. Your line is

Unidentified Analyst

It's Jeremy. actually Ryan for on

XXXX. of to kind Vantage out laid $XXX Just start $XXX on wanted million, that in DTE the in million

you been projects, capture if you on And of much And current through capital kind number? think legislative you talk has much the of of XXQ those that? the economic? you make with growth know carbon side, term? kind that Or you there line to how the side you then more wonder near might projects kind need how could support through of to of been kind support deploy that but much how very and can trending that with Just the successful thinking the the RNG I well, have sight have environment in

Jerry Norcia

two DTE we five-year underpinned start projects what selective are about growth that for we lines. being we projects really Those guidance is continue And RNG business income to get and what year. I'll of our that's do. Advantage net we us million major the per guidance, very by by So cogeneration to do deliver our $XX saying way

Plains And that a XXXX. addition, service facility And in will And the feel or for we XXXX we'll So Wisconsin into it, we construction have will online in XXXX. as that in of goes a got a in just you in to service cogen York we've complete well. early third then placed one New project 'XX give be a 'XX. project that in likely got in Dakota go

we a growth in pipeline our that well the space for and builds XXXX into $XX that that as million $XX handful net years. keep new and is opportunities for every reasonable something year RNG year. income a beyond of million how Again, that's we've along. strong got million of achieve really is we XXXX feel space and marching in $XX the in All five to cogen as we'll off got And for each by our to knocking

deliver to for So we're just you continue going on trend and all. that

Unidentified Analyst

Carbon makes sense. capture... That

Jerry Norcia

to California The good, to makes I fuel in carbon it Yes. early carbon low the very interesting. us. was standard for even but more capture. XXQ That's is going speak

that So this continue make we but opportunities, looking extremely are point we'll at it's as you, carbon at time. But early arena. tell update potential we capture you in progress I'd to in

Unidentified Analyst

I embedded follow That sense. in program? opportunity what much on I voluntary is opportunity? said like a of kind is megawatts kind how bit to CapEx further of like that at currently about and the assume it in upside then wanted of it. through megawatts of Is voluntary kind DTE capital the and just is XXX plan? further renewables XXX advanced be through Got fair makes you the we another thinking kind Electric And the XXX a then Electric current thinking think just is negotiations. up little How should renewables, to megawatts

Jerry Norcia

up XXX billion to to go we got five-year the the filling a way megawatts $X in our plan. Well, long

see gives we update X. coal Slide of -- line about item as you'll cleaner confidence we'll retirements as on think we generation there that is great $X continue us increased So upside? we generation clean renewables. voluntary that we Every and think Yes, billion year, that to the that And potentially. about in deliver on

our cleaner growth future investments generation. towards in All of that points in

Operator

comes question America. Bank from the of of Dumoulin-Smith Julien line next with Your

Your is open. line

Julien Dumoulin-Smith

the are summer. reliability this are expanding, A much just last Obviously, know the resiliency importance. question around Are planning and all all of are already paramount you you for talking around done storms so capital from But Well opportunities thinking think about about quick how guys latest baking you 'XX. to out for I these Thank here. contemplating responding way to storms the here. about your opportunity. to We've heard responding you potentially 'XX your, incremental instance, peers here? some here? of as of other sort OpEx of PSC well into for opportunities plan incremental the any and some as undergrounding reinforcement in there rounds instance, as of

Jerry Norcia

me Well, take time, at so those one let a Julien.

So at seen we're million we of the made you to it some have take least of in million, favorability that -- and that filing $XX regulatory into XXXX XXXX $XX experiencing a rolling incremental tree trim.

immediate fund So get trees going tree and response, XXX the people, to that's trim the to that's coming to trimmers off XXX incremental the wires. to state trees, our

So that's the response. immediate

good so for the our next and and we the And tracker to that summer tree improve get that will run a subsequent summer. will have, to customers trim be reliability that our through thing for

be forward. -- tree So And again, accelerating will a trim between to million that that in pull source investment. $XX favorability 'XX $XX with of program be really we're experiencing. looking be million we're that our sized at will the And incremental our that will that somewhere of

second grown decade. you'll we've resiliency we're and of is the last over Currently, distribution electrification the connections patterns in to EVs, in we've our our plan, put going weather as to also detailed it grid the of see second $X deal capital infrastructure starting worsening and of eventuality $X billion. billion our the from that's response raised this planning see commission to to accommodate that investment accommodate our a The the from big a thing front for to transportation In to us to relates from be year. fleet. That's half couple hundred of X,XXX in to of

and towards $X a that creating grid. that is efficient towards creating resilient, of reliable all So pointed billion more more

Julien Dumoulin-Smith

much I And off Excellent. my off last it have like of it you've I -- could I certainly, the million sight 'XX, accelerating seems remember if question, at rehash little If come XX% is already at the if can, And like trend. a off year. better if backdrop, just placeholder to not bit of to like relative slightly than versus what a I least $XXX to I minimum, again, baseline you seems you and that's the that million. was million with think today, numbers a million but picked about $XX remember, too fixed line even cadence. there, talked good a here to the but that an $XX can All to almost at a righty. back $XX good seems right,

You that there's more would think even potentially there. opportunity

So a may ago, push much cogens. how that spoken bit the versus further have a you incremental have you $XXX already second do mentioning this just clarity you against to to trying on I'm little But million incremental?

Jerry Norcia

Dave, let I'll you in as then well. start, jump I'll and

Dave Ruud

like pipeline right we said, have business I'd say projects Yes. our Jerry Vantage within really good now. DTE a of

staying within of being Julien, gone through this And so is as our XX% that year getting keys, the business our a $XX million is within before, nonutility. right sight. of And one we've

of we growth as limiters us more kind our And look that's also if that so that that always other one one too did from of some ways drivers keeps that's at for also we that pushing There's can of the find much. growth, well. but the

Jerry Norcia

now, how and and originating, the and seeing paybacks Julien, seeing they're simple the still really team, greenfield. greatest to to teams. IRRs and us all levered that were we're some Right we're value. three- be gives projects opportunity amount We're cash IRRs that five-year selective. of And, creating And RNG that's the

utility nonutility. like keeping the our strategic between goals split said, Dave it with and like we we meets XX-XX approach have, of, a So also and that

Julien Dumoulin-Smith

coming I like to was year. didn't I just And back that. to was seems nitpick. that a No, I XX% just mean it's the suggesting Right. XXXX than even better

there. it I it. leave I Sorry. much appreciate you Thank guys very and

Jerry Norcia

Thanks, Julien.

Operator

Insoo Your from next question Kim comes from Goldman the line of Sachs.

line open. Your is

Insoo Kim

roll questions this additional five-year more when of 'XX out And $X insight asked you'll the needs. the XXXX equity any been this have plan. my in terms for financing billion on side half Any we forward, the plan. in 'XX, But the equity things, least about of whether laid of plan lot base back into answered. now, need at that you've period, just think whether and of over minimum now through A

Dave Ruud

through cash really we flow five-year Yes, plan. generation our see good

needs And within additional capital the bringing so minimal equity now billion in plan, this that of $X like consistent into our right that's even plan.

Insoo Kim

-- XXXX Okay. given up highlighted for pretty annual not from the there What had Understood. whatnot, second the of of your And in year-over-year then a earnings like to cost -- growth a whether your cadence operational on time and from for track forward you're my so question this that question that year record constraint that always as this that year, an sense. guidance smoother. is, kind conservative many the you've are it's The this basis are being a that more has Jerry, perspective into follow bit X% the exceeding opportunities it's raising or company next make does outperforming guidance. pull just is, or

wondering Just and I and always investors earnings the are predictably used to stability that guidance. street guys some more track people or despite your having outperforming the of you think of on annual for looking record given of growth

any color just there. So

Jerry Norcia

Sure.

at CAGR in I of And we would this our track think So last growth saying include you if I'll tracking in the basis well over that EPS this by see start the probably on highest if point year. X% that over to record the one industry. it's a at our is look were decade, time, you

growth EPS So record. we're proud pretty track of our

to do any anticipate contingencies weather our that potential biggest two utilities. variations which load in or at producers, income in sense our either in the are put conservative are planning in We we

of guidance. I we So our good level higher the feel tracking again, contingency, consume gone we're be as mentioned, do towards end And that's XXXX, into if really XXXX. planning about that not we'll I for the

we're year that and 'XX will decade as and nicely 'XX just the putting come XXXX, For as expect I that, and together last had. that together,

Operator

Your line Travis from next Miller question comes the of with Morningstar.

Your is line open.

Travis Miller

I give you gas some the wonder the latest if filings thoughts in case rate on developments could the there? various

Jerry Norcia

Sure.

we'll the rate filed take outcome needs get expect administrative good had consideration, judge that we needs. the we've about the our multiple their pretty positions. that EG We investors' into and and and including meet productive we now the from a So lodge all case. we'll believe feel of we staff gas and outcome our the When interveners really that

Travis Miller

is the what XXXX Is the on there be final might that that sensitivity outcome in Okay. there that sensitivity case? of in gas is terms -- around guidance,

Jerry Norcia

has commission has made gradual accommodate fair business. plans Well, that that productive deployment also I try certainly, the important say see and to on a is is really part you'll scenarios. contingency our ROE, a gas various of taken investors. investments of But stance on we've in a which would to capital and taken outcome our pretty past practice the and planning our to The ROE approaches

help So I get our really us going that we're a think deliver outcome productive targets. will to XXXX

Travis Miller

few that's right? And supportive you of all numbers there were putting that next the the years, for out CapEx

Jerry Norcia

XX,XXX and home gas support is we've our correct. year the from That's every got also about replacing the gas and about program CapEx to meters the miles piping inside of And about staff on renewal. at main outside cast from moving with company, strong it new the commissioners We're of PVC from replacing home. really the infrastructure iron XXX

all reliable infrastructure. that of future is operation our and safe So, pointed gas of at

support from of support the only built administration So but commission, strong the not also in the that, state. renewal for from who's lots infrastructure

Operator

Vertical Jonathan question Research. next from comes with Arnold Your

open. is Your line

Jonathan Arnold

Just one CapEx the utility. question on plan. gas

getting in was sort into the to base or of possibly us of of similar that give You last and think, incremental just there before, there's can forums plan I of $X.X some checking. is sitting the year, looked But that on be? the which Jerry, I how said, would a year timing what and you opportunity billion sense top plan, of what's sort the of

Jerry Norcia

Sure.

an some company. always and retail Primarily portion for also start aging to We've of starting to very So are bring our large to replacement current we point got compressor aging transmission some in transmission going of stations of to a that more. outlook, of operation. pipelines assets looking level we've are towards about like inventory need extra the our five-year opportunities this And in infrastructure needs incremental. gas million into the $XXX brought of

opportunities So that's in these to incremental really getting finding Jonathan. would into it what affordability in, stands the pressure us that would rate way offset plan investments create, the the bring what capital of is so

infrastructure that year accelerate the try to to renewal. continue and CapEx plan so into relates as And to more and we'll each it work plan to our bring every update

Jonathan Arnold

Okay.

-- future to should as part we we should rate regulatory it value? So cycles next of opposed case other -- as think of the the

Jerry Norcia

transparent. see That's most where will will that's you be it, it where

Jonathan Arnold

Thank you, Jerry. the the is tax quarter And in items then just the on corporate.

I unpack was think but I in, et if you how different wondering quarter just impacted fourth that's the Dave a those the which quarter. mentioned cetera. to items there item going quarter, third mentioned and onetime true-up also went those this was could much reverse direction million the true-up $XX you'd two in in

Jerry Norcia

want Dave, that? take do to you

Dave Ruud

Sure.

the onetime Corp that the at you said, were our for do We our expect the two guidance But we are on drivers tax and As that tax guidance the and year. valuation increased big for for against allowance tax-related. for still Corporate were to Other the true-up, in there the carrying that and variance was Others was -- hit forward. the a reduction quarter that quarter

rate, the we And reduce because up credits as this and a tax had do that for would adjustment the Other to that tax that timing, & the earnings an a effective just spin, delta that's an the for the Corporate an bit to And there our Then trues we GAAP. had looked so earnings little on ratably was million negative. of that entry rate. at earned and that be as that we have realized aren't we $XX pretax about that when result effective and we over tax it's differently year, lower at pretax

the fourth that that that discussed we the amount quarter. $XX see in the favorable million that some was the that and quarter. we fourth the then from reverse be had of will quarter, about first for so all we'll three that And quarters And will the same in

Jonathan Arnold

That's third million $XX combined about in quarter. the

Dave Ruud

around little But that a relative than actually that. right to about less last yes, It's that. year. it's it's Yes,

Jonathan Arnold

other Great. thing. one And just

You end really the hits wrong, at conversion. not that really But mentioned Dave, if about I'm 'XX, in the talking of the year.

of So of a we that that 'XX a up headwind? growth, about you're wouldn't as how trying that for just to et cetera? And is smoother should be set sort more think

Dave Ruud

November 'XX, little for then 'XX but see more in have see we in when that us bit in so growing headwind be a is We through of 'XX, too. a that, of comes little it a It we'll 'XX. Yes. does

Jonathan Arnold

want All to Okay. I out, right. check remember just that correctly.

Operator

Your next question is from Ryan Citigroup. Levine with

line Your is open.

Ryan Levine

for current into winter? gas DTE Gas position the heading hedge What's the

Jerry Norcia

position winter into hedge this current heading is XX% heading XX% for the following about of winter So the 'XX/'XX. into and gas

Ryan Levine

will what sense as result be winter bill prices? of customer a net of cash that hedge this the have you the a impact and Do profile current

Jerry Norcia

It secured fixed XX% other be the words, prices. prices of portfolio. we've about for will pretty minimal gas are about XX% the our fixed of In since supply at

a very minimal impact. we see So

Ryan Levine

the what's that form mitigation? of undergrounding Appreciate I what for there option circuits, from is And alternative trimming tree -- There's away impacts. plan the request governor letter the to that. viable? And developments been, is, to I your cost of switch that the commission other the current would and you for on incremental switching the that make then storm question more worst-performing do any some could guess guess, information some

Jerry Norcia

started is all underground 'XXs, subdivisions that new system start by I'll the developments. all to over XX% a about In now. underground and we So of our new little saying

for But older in continue been neighborhoods residential ways expensive. primarily that. quite it have infrastructure to than years. that's to look at is underground strategically looked few remains ground a We've we underground. So above very and is What at

have about very strategic So how be you do you to it.

trim the you or was to by we community a of of XX% just we mayor of and millions And years and dollars. was asked was a would the $XXX,XXX XX,XXX seven give those underground of circuits ago, one reliability $XXX,XXX which give of about underground about whether same the system. residents I was serve, could of an cost the communities it hundreds eight the to us or impact. whole to idea So that in The cost

So great. it's, again, undergrounding is

distribution we cost find plan have that in to -- and to underground. That that approach commission we're our are you we a have them underground to and in well front it think underground, existing is systems of it and a sense to I ways But to strategic backyards a up work the is we'll our take potentially also to question continue manner. very addressing in put customers. five-year to in have disruptive tear to and front when the people's strategic ways lines In locations backyards. systems as the trees, ways drive you prohibitive as where remove that plan,

Ryan Levine

one follow-up. maybe last And it. Appreciate

if play that color mitigation potential Any storm into how ascribed the could of can decision? that you any outages. potential you're and could of terms In that these provide issue approaching efforts future around be penalties for

Jerry Norcia

fundamentally of the tree increased many the reliability grid, billion $X course, of will Well, mitigation we're and improving deploying trim investment in of ways efforts think, agenda I go that the a an long the to grid.

to that also the credit infrastructure. a increased, sense all makes used XX a that money be needs XX credits customer that we $XX and In are with lot that revisiting extended the we agree think the it that can of the you resolve that commission, outage provide, We to of that credit periods outdated, to and months. is for terms be next put to expect of we of at towards level just we need arrive the to because over we improve and

also customers recognition So balance difficult low-income are there there some when find that, in But for is may of days. themselves there. or the that of a we three outages a four situations last say, example, have

Operator

Andrew Your next question comes from with Scotiabank. Weisel

open. Your line is

Andrew Weisel

to on prices. Just winter elaborate gas the

just and Can programs to You hedging have have? us some you storage. what access Is gas. right? about the hedge side? electric I for What talked you think the position remind that tools you about

Jerry Norcia

this burn amount primary minimal of burning point side, primarily fuel. And point. are our coal fuel electric at this we at source the in well nuclear for Well, point hedged and is also gas time, time a and at we're in natural those this

combined hedge we that when and gas, we as our amount comes more well bring a will XXXX. cycle as we significant to natural look as those -- on plant, we'll products Now late plant into service burning be

Andrew Weisel

Okay. Good.

also minimal this customer to winter. So risk build

Jerry Norcia

Yes.

Andrew Weisel

trimming it that? million focus any vanilla believe Or filing will on? initiative by Next pretty resolved other that, I $XX plain be on case? coming And will you're is there planning items of a tree Remind be be year-end. beyond rate the part before that us, to Or question file? should the to you are electric unusual case file up.

Jerry Norcia

to file to we to of And year. roll next Again, take, I'd will $XX And before by the year, tree-trim planning to agenda end will will capability sized $XX filing. have we we're make say, and matter first in it of quarter, the the the of from quarter will primarily that accounting agenda. our as this and agenda special first from be electric million. order XXXX tree-trim that into capital be program, then, be our early the to that resolved for won't both renewables driven anywhere Andrew, quarter, million company, filing investment be the first grid a that the course, we our use so

Andrew Weisel

be out, right? just item? Then And expensed included and program, The Great. results quick quarter bookkeeping $XX a be tree-trim if in would million fourth question. not stripped that I one that believe will operating so,

Jerry Norcia

Dave?

Dave Ruud

would. be quarter well. be Yes, fourth Yes, liability up as it the we'd setting would it impact would a -- it regulatory and

Andrew Weisel

Okay.

in included guidance? XXXX updated that's the So

Dave Ruud

still now. right to $XX end million, confident with number the the Yes, we're going upper that even of hit in really And it's included that. in our guidance

Operator

comes next from Your Anthony with Mizuho. Crowdell question

Your line is open.

Anthony Crowdell

gas. was It like just NEXUS seems yesterday at $X we're questioning now when everyone and

Jerry Norcia

doing is EPM as we expected. environment in Yes, well this quite

Anthony Crowdell

portfolio, just bill mitigated about retiring one coal with the supporting It Do mean you change showing diversified I impact. be that regulators sense it's from in minimal. question, the and has impact coal bill strength of think there plants, of a minimal. questions. that having plant may though kind the a given really earlier impact I seems bill one earlier you a gas is DTE the talked follow-up nuclear strategy have is of I the plants, that

Jerry Norcia

are resources. industry considering and Anthony, seen is I the our significant retiring it We I open, say would we but by keep haven't to seen that also with baseload We've in yet, things some replacing the impacts options hear lot right? that generation intermittent that of all reliability a one

that is We obviously our the also largest feel big renewables. we renewables investor, love investor, in we state, paramount. in a reliability Now but are

it carefully and So conversion we of want power of when retirement need and affordable we customers we or those, think those the about our to coal is think power because reliable how our when cleaner power. thing first the and plants do and really

balanced. of those be have to So, all

our would options this say reliable our is we see make extremely IRP. in power open that ensure going to keeping transition we I So be important. to that have as you'll And

ensure will it. next coal consideration in We on that our IRP our to retirements go clean also how power accelerate reliable you'll careful you'll see to see that's done and with and But fall. power affordable power

Anthony Crowdell

guys forward Great, seeing the down you EEI. looking to to

Jerry Norcia

Yes, I look forward to seeing you, too.

Operator

turn questions There this the Mr. back further I Norcia, no to time. are at call you. over

Jerry Norcia

healthy and safe. thank live and you, today. I for strong I'll you've great just very developed XXXX. of a have XXXX, thank a and good us Well, you you, EEI the all morning, stays joining in I by everyone, heard, everyone as you. about look Thank November. close that has remainder And saying also at really feeling forward hope of for seeing to position we're

Operator

today's This for Ladies and conference concludes call. gentlemen, thank participation. you your

may You now disconnect.

DTE Energy (DTE) 27 Oct 212021 Q3 Earnings call transcript