Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by. 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 Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions].

It is now my pleasure to turn today's call over to Barbara Tuckfield, Director of Investor Relations. ahead. go please Ma'am,

Barbara Tuckfield

good and morning, you, everyone. Thank

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

a Our presentation also operating of measure. references to earnings reconciliation provided refer the earnings appendix. non-GAAP which to operating Please GAAP financial earnings, includes is to in the

it Ruud, And Jerry With Chairman, President turn Dave morning now and CFO. and are morning. Norcia, to start Senior this to President us CEO; Vice this Jerry the over I'll and call

Gerardo Norcia

for and an us. a plan. Barb, how on good in overview business so start Thanks, give morning, safe well recap are opportunities our everyone, you long-term we and hope having far. XXXX and for performance, thanks on is provide XXXX, giving morning, and outstanding I'll on by joining highlights everyone This positioned robust year I the healthy a our

up financial another Dave take shareholder solid a delivered financial creating in Ruud all I'll will year We our excellent your for XXXX, provide wrap investors. for update our delivering record our track before on X. results, strong included questions. value of stakeholders we begin Slide which things continuing and

team sauce continue secret service that I that engagement organization. drives always to I the as Gallup impressed success and at continues amazing to measured other. operate engagement the delivers levels our our to DTE. team be to by exceptional each customers top employee our by And our say is decile at that

day. in shows consecutive the the a year, evidenced Gallup is was Great engagement every Workplace XXth earning team This way up our for by and recognized Award

DTE very ranked customers deliver am I Gas customer measured in by team our residential for proud to in Power. as satisfaction Our is J.D. XXXX. first continued that

our strong customers. signifies our commitment to This recognition

electric see grid $X and customers. also undertook our electric to help to improve billion more We last our invested than of dividends customers. we a initiatives number our continue paying in reliability that for reliability to improve We year for

the In XXXX, fewer DTE's the XXXX, electric service electric grid down power of customers time and XX% XXXX the duration operated territory, incidence XX%. than in more versus interruptions time. Across XX.X% average outage was without experienced

of on more communities customers XX% focused improvement where was in our our the up a reliability. most for a result grid's some to stronger challenged experienced record work investment completed DTE in infrastructure, XXXX and was grid In reliability. year a

tree a grid than addition, improved In trees customers on reliable as resilience, crews that miles program. we more invest as trim in more accelerated power. clear X,XXX their our field trimmed and we benefit of continued focus It's our performance with on and our continue grid,

broader For the energy largest renewable we community, our the Michigan. to in of of an state in be producer continue investor

program added voluntary our decarbonization. continue to energy also MIGreenPower path our through renewable significant customers We additional on

$X.X invested We our businesses, over And we front, sustaining across Michigan investor year. jobs operating of XXXX, billion financial midpoint. with XXXX XXXX the state. XX% creating on guidance another strong In and was growth original XX,XXX from more EPS delivered than the

the deliver strong and DTE known And is performance for. positioned to well growth are continue premium we to that

we know, Michigan on the last case an received you As electric our order Public rate Service Commission November. from

of grateful a were volume there positive to outcome we in projected disappointed very lot sales by which for the residential aspects Although we the are the for, order. were final

we provided of Dave are go that in operating will address this our one-time us actions outlook series actions November. we the more consistent range, taking. a the EPS delivering challenge implemented have midpoint will with O&M O&M early support a the we lot detail into Accordingly, of to on guidance that

case. reviewed affordable, energy in customers. And volume our reliable filed mutual sales the share MPSC to our the system, be and rate residential and a bringing state will cleaner and our DTE recently

operating our is guidance midpoint, X% growth XXXX, to X%. and growth the EPS X% EPS target XXXX original our from delivered long-term guidance For

for that confident deliver ability our investors. to We our in are growth

Slide Let's X. to turn

We cleaner distribution are investments grid while making customer-focused gas significant in generation, and to and system. transmission the modernizing future build of the the invest

by X-year to our And next year's billion DTE or $X.X to Electric. plan increased years, plan. utility generation renewal XX% of We capital billion last infrastructure and these focus invest utilities. at plan X XX the investments over $XX our in cleaner we over continues The be

we as of system. Gas, gas modernization While transmission the main and at base infrastructure renewal our DTE and plan accelerate includes investments, distribution the

electric slide. the highlight will through plan I the company next of on of our capital the some at details successes and go Now our electric

our In XXXX, progress and reliable grid. more made a significant generation on we path cleaner to

largest the with continued the strong program, signing Stellantis. of Motor country in contracts utility X power the growth We in Ford Company renewable MIGreenPower and our

have and The gas subscribed program, to shift daily to cleaner coal continues energy O&M grow X,XXX customers, from plants. X to and We reduce currently expectations. by XX,XXX natural supported businesses XXXX, renewables In and helps this retired we further megawatts it and coal XXX residential supports exceed costs. and

and Our maintain as fuel reduce allows diverse well mix flexibility technological helps to to energy advancements. adapt us costs us to future

to generation plan the billion renewables our higher integrated than cleaner X-year voluntary for is previous $X for and $X billion billion $X solar resource Our plan, for including related plan.

$X distribution infrastructure billion. investments our increased We by

our increased anticipating modernize EV load growth that extreme to from to we're electric adoption. for continue weather prepare grid We and

Electric is and at by Supporting go Let's XXXX. resource XXXX plan in plan. by to filed X-year our net XX% with into IRP November commission. of plan the capital X we our additional and Slide accelerates achieve by XX% details emission to on what the this zero generation integrated transformation The XXXX, reductions utility turn DTE supports carbon

customers. This is decarbonization updates acceleration and cleaner, filing path provides commitment our continue our a to energy reliable, for from providing on prior significant This our plan. our affordable to more

of $X.X our reduces home plan. clean the The $X invest from economy, economy cost our billion our supports transition and the years in the power with by base XX generated Michigan's IRP prior next mission into over energy tax state, and billion

in in supported the are outcome and have year. an DTE by case, and lot non-utility businesses. for a IRA. this the will The we inflation will the generation settlement elements this We and includes utility Act IRA half benefit that cleaner or Reduction second in positive our both a of of The our IRP pursue investments

on continue as We focus robust forward customer we go to affordability with plan. our investment

throughout continuous Our confidence commitment culture we gives to and goals, maintain plan. us affordability a help improvement the enable our will our IRA will affordability

a rate affordability. system Just case the modernization we generation customers and underpins of investments We COVID request in pandemic filed rate increase weeks with investments. reliability, a a during couple not assist that intentionally base to did grid cleaner ago,

than the rate DTE to system needed order to the Electric base make in keeping in investments file rates have made invested expect case. we cleaner our company the nearly flat. more $X that while and XXXX, grid In and we for significant progress billion customers a electric account Since to continue generation,

base in of years maintaining request increases, reliability requesting X an increase to Michigan and the into no essentially of go XXXX. After deliver rate supports are This would rates. affordable that clean at while improve investments we end effect energy

investments, the debt. attributable of the to capital cost sales request and majority reductions in filing of this is The

providing right parties are strikes a our We balance and customers, cleaner interested that the pursue increase energy to all reliability maintaining to working between for affordability. all the while committed continuing to with settlement

time us Gas the or after time, allow We recover our IRM, in infrastructure the cases. Gas. would cost the It help case. IRM an IRM, mechanism, objective Modeled also filed it DTE over investments DTE our stretch IRM infrastructure for grid an the it would does to that between as between cases electric as recovery the rate is for of rate grows

X Slide equipment. discuss greenhouse We aging DTE and to XXXX XXXX. reductions main a in successfully and Gas. reliability renewal move well emission as as of Let's and completed further XXX transmission for in target miles have we are At XXX continuing Gas, DTE replacing improvements miles gas

our of a by net are reduction XXXX emissions by and We XXXX. zero targeting greenhouse gas of XX%

I Gas tremendous DTE we team and this earlier, is As ranked very of proud thank are in for customer accomplishment. #X our residential which mentioned satisfaction, DTE

Slide DTE Let's X move discuss to to Vantage.

another RNG energy an project RNG service. energy service. project project and in we and X custom XXXX, to continue projects project In development. solutions make In significant solutions in we placing We progress customer new are X placed XXXX, in

agreement complex. fixed also electric Ford We vehicle new manufacturing long-term executed its Motor new and for battery with Company fee recently a

This facility in to manufacturing largest is be and America. North chilled expected and will be which in EV over will complex, Ford's service $XXX water Ford, Valley invest electricity in steam, Authority. DTE XXXX, hot to Tennessee to provide million,

RNG very investments and over This fuel low million $XX which federal supports areas. by capital billion standards with projects $X.X $X robust underpinned solutions annually X-year growing of plan. both in billion carbon are IRA, in the California a and the by to of pipeline We custom the is energy and consistently earnings

Dave, turn in it With We at to to you this growth financial segment. I'll over Dave to continued update. you. over give remain confident that, a

David Ruud

Thanks, morning, Jerry, good and everyone.

Jerry completed As successful financial XXXX year future another we in and are start positioned XXXX said, on review well for our I'll and XX we results. growth. XXXX, to Slide very

into for during the year. guidance $X.X high had per at earnings billion. range Operating share, increased year we were $X.XX us the translates end the that This the placing of

detailed reported GAAP breakdown in of segment, earnings You find a by appendix. can to a EPS reconciliation the including

than year. million utilities. at did XXXX, million $XXX we review improvement. This by pre-tax tree trim reliability that the earnings in start our non-recurring the Electric $XX page with for top $XX DTE the our of were I'll accelerate higher to the the driven million further was XXXX deferral

in to These by lower rate sales the rates. and base deferred costs accelerated residential were also We and rate had that tax filings XXXX. increases implemented were case was delay in customer that partially our avoid offset base increasing higher earnings XXXX amortization

XXXX. cooler Moving DTE $XX costs. the rates higher higher partially implementation earnings were Operating million rate was weather, than $XXX of million, base to base on and due earnings variance Gas. offset to by The

due third earnings by RNG DT the in to row. Vantage an in million to move REF is business $XX were offset the and of decrease from the XXXX. year million custom higher sunset XXXX, on $XX at XXXX. partially This Let's of energy earnings last end the Operating solutions

can row, were earnings On for performance Energy primarily was gas energy next This power by trading strong physical the performance. $XX XXXX. million year-over-year, portfolio. trading you the were lower partially earnings due to of the see offset

Finally, corporate favorable year-over-year. other million was and $X

midpoint. representing XXXX guidance Overall, our DTE earned XX% from XXXX, per original $X.XX growth in share

the year, strong putting a in great us for position another future. So

As we a which portfolio. this the with constructed detailed that attribute planning proven stated plans invest plan and continued is have lean X-year we our success the in to across process, includes past,

Let's move review guidance. discuss process to Slide this XXXX XX before to we

our year. our before, financial most discussed plan senior weekly the executives the and for current have meet we year to As following review

planning implement or that plans realize opportunities robust invest we lean and the can this plus base risks we plan we process, year. In throughout develop a if

November, we that achieved all a into in the order Before inflation. account interest increased we case had base headwinds receive targets, taking including the we rate macroeconomic rates our growth plan seeing, were and

on enhanced are are including initiatives areas success Since not These all in and receiving our past have implementing onetime challenge the we've during that like long last address we order lean during to of number the additional the achieved start plan our the and term. actions in case, pandemic, the reductions plan, the sustainable we cost from of rate over are where the recession. the a

we include the term or goals that workforce, these achieve sacrificing deferring actions in financial will for we service. overtime actions, contractor taking reliability confident delaying accordingly. year safety, hiring, limiting the Through customer without These and maintenance our reducing our work short remain

discuss to XX Slide operating guidance. to turn XXXX our earnings Let's

to We positioned are successful year well another in XXXX. deliver

of operating growth guidance X% guidance EPS per $X.XX share original our from midpoint XXXX provides Our midpoint.

just be will see DTE Growth continued and at Electric supported in by described. generation by main and investments DTE and driven O&M distribution the other customer improvements. infrastructure Gas investment focused I reductions cleaner will renewal

online. projects. growth secured we DTE loaded is as in already driven RNG through will see we quarters back-end go projects new the third strong solutions custom At energy the timings XXXX, come for development a Vantage towards by be pipeline fourth earnings as and the Vantage, will and

revenue earnings to point At is on $XX due to fixed guidance the contracts first then recognition I transaction these reversing the primarily that for the forecasted the do year. over the are transactions in power is are quarter This have in $XX negative out the Trading, accounting expected want to of to be on Energy hedged that through and million term business execution. million our and prices based physical earnings of year.

for based received and month-to-month, the not of contracts in February. revenue recognition recognized these while The fixed January we the does price curve cost on energy energy that energy of is in the highest is vary variable

$XX to XXXX and QX in variance could businesses for a of timing $XX Overall, This our we but to will well the confident positioned the we million about continue guidance across million, are through feel of loss remainder growth. our be unwind future year.

strength. Slide to discuss XX turn Let's balance sheet to our

Due continue on cash to has focus balance strong maintaining no solid plan. the We little in DTE flows, issuances to equity to sheet metrics. our

We FFO rating our XXX XX%. our to an and by to dividend. debt of X.X%, cash years have of credit XXXX paying XX% of target over a track record strong investment-grade We continuing dividend ratio increased consecutive

lines. wrap Slide all Let we'll me XXXX in for open we questions. of up then In and achieved on success our the summary, XX, business line across great

solid targeting operating guidance midpoint. X% from EPS We for our XXXX, a XXXX have plan growth original

shareholder to come well to growth generation that reliability plan have X% delivering and and in dividend expect line our our the returns operating strong growing DTE increased premium to EPS. supports positioned total a customers. be with capital operating to cleaner robust investors X% for Our while long-term growth deliver our with EPS continues utility

With open joining we that, I us thank today, the for up you line questions. and for can

Gerardo Norcia

Dave up through Brent, before Michigan. one largest and roll territory would of storms and just service investment of whole we our I let we yesterday the like -- that across the our community open know had for community questions, to ice state it

as trying customers And -- to outages this people this our possible. And in our we've as at got and I out want restore safely this over field thing shout safe X,XXX were dealing today, a give to quickly Over the first XXX,XXX in morning, a people. point with on and customer to time.

We the but quickly as this that our is thousand with people understand again, possible. in as goal as several the causes restore safely morning certainly this customers, our our field inconvenience to customers and

up the that, question, Brent. for with open So first let's

Operator

[Operator Instructions].

Your Guggenheim from first line question Shar Partners. Pourreza is the with of

Constantine Lednev

Certainly around in that you It's Shar. million $XXX a talk quarter. Can reiterated lower great here 'XX revenue flex. the And embedded guidance? think are maybe Congrats the years, kind just actually just called changes the that around you for of contingency about disclosures contrasting prior with on Constantine maybe approval. appreciate now I out of

what So in recurring as built portion actions? what more weather be specifically 'XX, we reinvestment about like good a proxy prospective was and lean 'XX, And would up think and for reductions? versus

Gerardo Norcia

plans had had as headwinds So when the inflation. from case, we plans in contingency fall, Dave prepared and some expense prior had anticipated rate adequate in our we the mentioned our to the and of interest

incremental received the our approximately order, rate plan. challenge we created $XXX million to an When it

areas that our main into And so we our hiring, and contractor go time significantly, quality work without plans which deep over into immediately, the a are roles, reducing plans we of we lean started our and practice to that that familiar of And service. you were workforce pursued maintenance employees is many with, exercise safety sacrificing deferring reducing delaying those placing basically or and undertake.

maintenance experienced And favorable year, where as practices. heavily we our have invest in when you years outcomes to start we last know, we like

we'll year, on you be this will. drawing if And so those banks,

David Ruud

add just I'll to that. And

or a times a we we tracking rehearing saw now sales, as our plans knew soon really so and was we're we're of our this As executing And that building lot action well on possibility went that the far into year. weekly, this daily this plans. in and we

Constantine Lednev

about to this that reiterated point, bonds range? talk guidance Can flat like X%? embedded Excellent. utility And the you relatively high mentioned, the the both assumptions and in to needs 'XX. Xs guidance parent and rate is the that you following and you're in at embedding on looks 'XX as hover 'XX And refinancing to wholesale it up debt, interest fully continue the is X%

David Ruud

conservatively our as and for for retirements and some than even is. interest opportunities modeled interest we've rates company, favorably beyond, level, to that $XXX defects right, we And 'XX volatility to our floating increasing we any term more 'XX the loan. plan go we've then plan. outstanding holding of make bring reduce our X-year in other in look And have plans the 'XX that, to we've incorporated don't forward. and we it in At any into entered exposure in highest in 'XX. Yes, At million rates for this sure rate in

Constantine Lednev

last quick in business just shifts relates to on seen And DTE the you housekeeping economics non-solutions the RNG? as it Vantage any one, and the valuation Excellent. Have businesses in side. specifically like

and new We've lot equity entrants front. of seen on private a engagement that

does So kind less of any carbon versus capture solutions? other that make attractive more emerging it development or like or

Gerardo Norcia

That's at a for Certainly, carbon values cash encouraging especially transactions. terms storage, and starting seeing can we're can look opportunities business. I in to value IRA add. in tax credit of uplift significant RNG in in we handful with assets. aggressive start, the for Dave And of that our providing are very

And wet, expertise in process at storage get of sort very if with pipeline work feet you as we're and looking as small our that to well in our will, projects processing.

you want to So Dave, do add that? to

David Ruud

agree. I

was all I some attractive. of has IRA these is more I made that -- to think the projects going add

some of projects we can work So -- the very some that our gas for see we do in have additional own but own attractive competition, landfill us be also future, can too. for conversions we our that

Constantine Lednev

approach? And kind business more capital rotation thoughts that within just any of on toe-in-the-water or

Gerardo Norcia

capital definitive our plans to track types out fund At looking I We've this of non-utility -- got at some of our opportunities. point rotation, work. time, those and we're for there's but constantly capital record utility in of businesses no of a helping rotating

point, equity needs. At that we notice you little very this would have

financing the to needs with So potential sort future. we're of rotations certainly trying in match up

on So always our to we but we'll that for opportunities see open anything accretion go, investors. creates that certainly as more come to

Operator

Suisse. Credit Nick line question next Your with is the from of Campanella

Unidentified Analyst

today. Nick Yes. for Steve is This

the first question So strategy. is regulatory on

you the this how last that was of we commissioners constructive year? new comes this I it's from filed PSC's believes -- rehearing last one us just I filing with all to earlier approach to view comments denied Also recognizing different negotiate process, a a although DTE with settlement them. front? think rate on should mentioned, just you think update the continue case Could practice very pursuing on the stakeholders. As the and request willing in And

electric And filing these just Can the have rate mostly also with been help litigation. just better us cases conducted I you on case backdrops? electric side, strategy understand think rate through the

Gerardo Norcia

Sure.

of in our conclude got will December. that resource our initiatives will major conclude X integrated is case plan general year. So half in regulatory electric we've One -- year that intent rate second and this the the then this

We are our instance, interested with in plan. settling discussions, that which of the that would we many the are integrated in I very in both. had parties seek first of set plan, that encouraging, resource integrated the to which is settlement And We've settle discussions. first are resource say very involved interested are case, the and

this of recovery many filings well as start settled case. we year, around the electric in in We been gas those conversations our history do cases settling our regulatory have as factor past. have Later GCRs renewable and will settlement filings for a rate the in of cost

do X pursue these will So we major regulatory it and have in to year. it, and we know how this done initiatives this

Unidentified Analyst

we think call This of you much provisioned or comment mitigation is was a how you have you it midpoint, -- should provisioned on or on the -- timely this for any the weather conditions think midpoint. the how off quickly we that could about how strategy, storm really cost just just throw can you think And guide, given And that? from helpful. on just -- I should 'XX all

Gerardo Norcia

-- And walk weather as our may what do contingency year costs or a it's we storm plan. of variations. the certainly, used budget purposes, for, these the if maybe carry part and for storm course, be contingency then, Well, for exceed plan, that's weather into that is whether or deviations with used base it in of exactly we

I sure say mentioned the time we That's contingency deeper head and value year. into have we want into really in I point we season, on So at is seen our most for as is as as consume lean before, this of far would so And that what really intact. go based opportunity adequate shareholders. when contingency create we to actions that in restore contingency, we've try we biggest especially our our to contingency, summer make to which the

Operator

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

Unidentified Analyst

congrats This is today's results. for And Julien. on

coming the to first back XXXX kind of Just cuts. the O&M question,

in recession. historic the on in You last success cuts mentioned executing these with COVID

higher you the A, on again efforts, scrutiny around, executing risk, utilities given, we've regulator docket? Michigan the with management guess, Michigan on vegetation particularly and cost inflationary XXXX storm time any Do O&M this seen; B, at then perceive I backdrop bit once across from costs, a

Gerardo Norcia

Yes.

first. that program vegetation So got We've in largest company. ever let me with vegetation we've our start had management historically management our

million the we a in XXXX, basically a triple years in commission solution example, in This investment And management. management. vegetation several for to over about we million were with came $XX vegetation Back we year the investing in year, $XXX ago, will more than with up invest creative management. vegetation

I poles tree impact customers by And to impact smooth as agree wires on as customers, we've replacing agreed had improvements. order time reliability give our hardening customers the benefit comments, I on trimming to the very the transformers. well that and and amortize the we system we costs reliability my -- have mentioned still of And in out actually commission over think to as would of where aggressive but taken a those the in significant our

investments And while in So in very had the we've we've significant grid. that liability. completed improvements significant work, the

than opportunities accelerate joint has have feel And We to is really they for is even that, that opportunities do good initiated the that doing. that's our always process really we investments to finding So and processes more even were about looking believe the been. what to commission work improve make effective we we're about, better. the

about I'm excited that. So

in challenge of we onetime question, these confident accommodate late And to last we many pretty first we your actions are feel terms reductions, that of undertaking order cost year. received In the those. executing in

replace potential to there's hiring over suspending We efficiency our people need know will opportunities not time. pursue. that they not critical to And say are company like We that not onetime, Things or we do in sustainable. they're positions tiring. not

stick. could this of Some

opportunity that's work. of that mean, sustainable and I the these not also maintenance long certainly of faced for in for cannot short can onetime are do and lot Hopefully, actions periods with. that time, we're But We but that a deferring a time. do of that period nature helps.

David Ruud

very that these impact to going we we deliver to never And or Nothing ensure Yes. all, we our weren't that plans, impact first our were customers. for built to reliability careful -- safety. of as would ability impact

plans in And built mind. so these with that are

even they're trying it fit well with for customers. unsustainable So we're should well though in our the future what to should continue do fit to

Unidentified Analyst

Understood. bit service of gears I large-scale battery That's then recent helpful. we've in detailing, plans vehicles. manufacturing switching know to And for example, just facilities kind a some here. for electric headlines Michigan seen

So to -- any kind seeing DTE of of and in electric kind you're what if will new of terms of terms that of in industrial load higher favorably accrue wondering just load.

Gerardo Norcia

And General really Certainly, battery territory. that. certainly, about in -- excited we're our operations plant assembly announced service last year, operation Motors and the battery

new year, our also battery a In the in plant past service we Energy One saw announced territory.

our In addition of an University for center, to to development Detroit. growth investment Michigan which next and economic right of that, in announced door will innovation drive the multibillion-dollar city a program headquarters the

mentioned, but there jobs, Hospital will many well, recently, with activity. a the in campus rebuilding are which Detroit that so I And economic of hospital big ones investment new create is some are dollar most others. system development as those Ford And downtown Henry their new the multibillion

period has I've the time seen. development my economic been that at most active this In probably DTE,

and we're excited ultimately, investment pretty those industries. well know, commercial growth the growth commercial drive to will So as about in support sector, as you residential industrial and in which both investment

Operator

from with of question Storozynski next is Angie Your Seaport. line the

Agnieszka Storozynski

I that's the then the it? over ahead analyzing of outreach embedded the any have this. staff I mean, to Are in are maybe So know case you've Some, commission I'm back one, big time. the strategy. from going know, So we don't in the a just filing? this rate rate I this learned strategy? And to So But previous you there case -- lessons just any case that another and one. changes that filing,

are sales vis-a-vis rate the case Number in you versus the are what current mean, and expected? deterioration seeing rate you X how trending is, sales I residential case? the any past had

lastly, rate that's in might then far of the mentioned, that, some I the you you ask amount electric debating elongate between case, the cases. lessons gas that side. the you time the the I'm from on just increases cases have right as And in And case outcome strategy if trying next as rate the with out. think, last rate given to the stay if the just Again, rate maybe learned the that of myself

Gerardo Norcia

Sure.

I'll the with, me strategy we Angie, case start talk lessons freight And the Dave let sales. So and about as learned, have gas talk about then can well.

volume on So issue as sales the reflect certainly, we was major the there forecast. outcome,

this will resolved next again, we And -- -- and I a about as be talk tracking essentially had expected. the Sales not mystery. in are And it's Dave will but will rate sales how be our case. tracking, but they're

point one. So that's number

how you That last than can was dug deeper again, what in we the biggest that, fundamental will, we rate Angie, said, deviation, this case. file. if But improve, we and

directed the and assets. of have filings well to staff our our the get to to well supported, and they're taken and to at all in we with of commission other continue accomplish another deep profile understood, well we're make that sure trying better be as to So inspection as investment understood grid review what our a we've order renewable this as understanding with significant it really that interveners with that is well

would what our into, work of improve a of the say, quality continuously and improve lot submission. went to continue So I

So that's something that we did.

what our context, ice this further fundamental? rate that As certainly at ahead of through And in of our you not see patterns for storm case, some well our today, creating we reinforces interveners as as look invest it commission, at grid take only is we I if shape. the climate pointed these spent for and would lot rolled to say need of why to the investments the change territory start these also are but time the as a that

service and violent and X have territory, that territory our over in of and the our more of service We've whether we which events had will grid state in X across or that. a to points investment last in grid becoming X Michigan have to more major all to years, up the the stand and

And electrification. seeing attachments that's in to significant state, we rapidly need and EV have grid our got we that. for secondly, prepared are We've a also increasing

time, deep a of ensure So context legislators there's but also we understanding. spent a intervenors lot and our with creating to not only regulator, with energy that

what trying understood has process that of And even the capital we're by part say to we misunderstood. and all clinician the question will significant to context interveners. not are program the continue accomplish or that to going a year ensure is been never our for that well the I

that's would well. will that So positive. I all at believe create and legislators I settle, this that levels would very we that the they the are supportive. context work be And But say that of would administration And do regulator a government throughout with seek and as continue year to say very our I to helpful. we

sales you talk Dave, to about for a minute? want do

David Ruud

Yes. Jerry. Yes, Sure.

And from going stability be I have to As I to into about more X% work. XXXX have this filing. to what our They down filing because we our saw Jerry forecast. some what and will you sales residential And returning XXXX. people sales are the benefit particularly sales our is versus end-to-end think we'll with mentioned, pretty our well in tracking the think as were

forecast that under level. a our our test in little we look it's year, from X% to As down

that the tracking far months, on right level. we're like seeing in we're early So that

up X.X% levels And at in forecast to agreeable year, test where in come we'll lot overall, pre-pandemic are will to think our it's we be a a more go we as X%, so too. about we forward. that And from

So well. really I all it's triangulating think

Gerardo Norcia

And year this we're late case, gas Angie, to the in rate plan. file terms looking the of is current

Agnieszka Storozynski

Okay. follow-up. And just -- then X

So to in that happened one mentioned of I I'm all case is what you what such rate is outreach. previous electric next again, want case decision say But to to trying case. the proximity -- this believe. the mean, rate -- rate I this in is a

how short -- embedded you time. could of again, lessons And such a wondering just, learned how period the in I'm have

So that's one.

more even importantly. probably is, number And X

numbers the would course a And had years, we're you guys the the guidance from gradually -- sales increase outcome that far, have partly is conservative look, over able historically then wondering current even to we electric early this we as So if of I'm beat and right, it and the just through rate -- year. the always should a assume look where earnings conservative, guidance why were case? given also this the reason forecast i.e., you of

Gerardo Norcia

the rate staff learned. let first their start really and this their summer. to start did commentary. of started really in sharpen going So through questions question, started case. We get on the feedback early these we And quality the through with submissions focus we always into We on me from lessons that how improving our

So case before X even got we months in this before. on months we months rate working the Probably results were -- before and November.

the fact -- So great context felt out it result. certainly we've the then a did and in years X because hey, I after and for intensified need invested rate billion. we outreach think the stayed we And for that, of the it's $X case start once intensified the we've got result November

we're I getting that mishap last but there's forecast the case, for get strong corrected. will support rate we the is with a and feedback -- had very investment. in think And sales that the we And unfortunately,

and strong we're the to there And be support investments for make. will that making continue

the sort So rate -- it. so part of summarize case of that would

the point that have of forecast, plan. cost the of that's reviewing we're the team initiatives right of the and is on that out would our And daily. said, as weekly, Dave rest of say, I them top And towards it are we review terms time. I right and we undertaken, in our all goal. midpoint at Dave tracking In this And

sometimes where feel restore we're also about gets it as at. We're we contingency good weather. to consumed looking by So

So that's where we're at.

So in our outlook. in our this we're hitting confident midpoint at time at look as we point

Operator

question next Arcaro Morgan the of David Your line Stanley. with from is

David Arcaro

consider the let's see, staying was are the to to extent potentially applied rate of wondering successful I in on if rate that that cases you could how IRM the long out you're here? getting that lead -- in electric proposing you case,

Gerardo Norcia

side commission to about been you one. case, rate positive last invited the that And we've of to talking years. is us in saw the it file they Well, IRM the as the for

-- alignment IRM. terms in strong creating the of there's in So order

the invested. simplified to think And we will, for. that's used will greatly at actually company be know, directed it what capital you gas be that, primarily the that, our for be directed -- if that And regulatory has primarily, That's it's will needs to you in disputed, grid. as process going not be not the IRM

And it will time. build over

on to up an as you rate business, years a X few out us for the to impact it's a allowed stay example, an cases. it years But to take timing time. we in gas of the give So and built it to at before starts it X have going

the this case the stayed in certainly that's gas company. several least for And We've time. years already at out

business. to expect that with we happen electric the So

the IRM, case going you've over build start X-year As with amounts we'll in will in modest we filings, seen that our into IRM, build as the rate a period. confidence and

as together working time it get the because IRM. some the to management does of take in we'll on well build And used to execution confidence that as the

build of So making to to time the we're as starting this necessary of and up out achieve taking between gas investments playbook as IRM a goals rate our cases. the well put page

cases. So as before answer significant timing my take impact on rate we few a a of to it years see will start

David Arcaro

the sense. and it. That of levels that Got decline a context. then, storage -- that natural when curious, seen And we've would gas, kind on potentially nice when see prices the seasonal based bills. Okay. in customer lower that customers of prices was But appreciate makes use is obviously, through for gas I into the flow rates? just tailwind

Gerardo Norcia

They're seeing right now. it

in President little gas I last here of We're the the talking going about a was lower by company of As to $X of the next days. the while. couple fact, the factor to matter

quite the So from come their prices we're peak. seeing down nicely

David Arcaro

that And that in that the time late year? flow is a have decline of some kind lead it. might going Or the last overall still Got of higher-priced to through collected to year-over-year could gas take been to fuel portion gas?

Gerardo Norcia

We've a already in decline. prices. I months several continue to year-over-year will gas reductions and seen it decline, already our in think we've made a last series the of

factor. $X most Our gas recovery, the coming that's in decline one It's shortly. very here price. is significant a And about

Operator

Michael from is question Sullivan Wolfe Research. with next Your

Michael Sullivan

flip wanted Maybe to just over the IRP. to

up we intervenor next the coming weeks of testimony couple in here. think have I

coming timing, And Just about from as what what case? IRP -- we that? then the should expect first in we settlement electric should between of and terms the think

Gerardo Norcia

challenge So there'll I'll timing start we by saying our of that be that is the Plant. to especially some the of the Monroe Power retirements, expectations see

to efficiency. that. you'll some energy So We will that. won't by increase also perhaps we surprised be I And see desire think see

think reliability will some future -- challenge I gas many natural parties as a source.

around continues of the a And gas strong we've of natural improve generation. renewables as views got technology course, enables providing that on that, baseload to large build-out

I those -- be issues, will. if will the think So those are you

support a indication our if I favorable large that's informally, At strong there's early will. you it's portion, but -- reviews least our of IRP. And for received believe, that

-- So that we to be testimony filed. forward look the will

the the In terms the rate of settlements, testimony filed before opportunity the a we of IRP terms the little just rate be timing IRP discussions. case case behind of will because just first for process and expect timing puts was settled that of it settlement the and in

expect So that's the unfold. process how to we

Michael Sullivan

question maybe Great. And Dave. for Okay. a then That's helpful.

you FFO an target still extent terms of XXXX year? you finished debt, up? fuel power us recovery And cost waiting the to where Can what in XX% of give XX%. the deferred on you're indication then this Just to to into

David Ruud

you 'XX of question. fuel cost XX%. being little around a as Yes. Yes. the ended right mentioned, good that was recovery. big That's lower driver up a the And

our of power recovering, us cost a of 'XX, that in had but use we source of cash recovery a majority the of XXXX. in supply will was we're for be as So cash more

better a So bit higher, we'll our FFO to a in see little debt be bit little XXXX.

Operator

of with line Scotiabank. Your Weisel next Andrew question is from the

Andrew Weisel

detailed answers questions. previous the Appreciate to the

I of a wanted. covered You what lot

follow-ups X for me then. maybe Just

terms of obviously, rate that long-term that needs? Does was the last the opinion the any for in the forecast, change outlook big impact of resource have case. difference on a sales First, and in IRP capacity

Gerardo Norcia

into We built Andrew, that IRP had forecast. in,

in for activity course, provide we increase some that Now near of is opportunity economic increases, is largest the the we and do term. we of scenarios demand for the expect in demand attachments really both what EV development an IRP

estimates, in And that's that IRP by not that build to an range because, something I a try only point -- and but required addresses guidelines, we scenarios also and of XX period IRP of can very thing be variability a filing is But forecast. a wise there over we the and to think forecast. years, a obviously, it's demand think amount do significant

high low, forecast. medium type provide we So of and

Andrew Weisel

essentially? Okay. And you're that still range, in

Gerardo Norcia

Yes. Yes.

Andrew Weisel

billion How zero? something that's that is But to last year? equity, than million your talked sources why little up likely lastly, Just page, about for of in the timing function Then equity. trying not Slide XX, you $XXX CapEx suppose, that of shows and a Great. earlier per of the I to year. the to Okay. Is uses remain X greater or zero a or and $X.X new of on dash, one convertible cash understand slides, zero.

David Ruud

Yes.

and how use how keep drivers will that Our we there and of one we big possible, the low that in of goal generate to and as CapEx. it our will as cash we how be get obviously, be cash plan through

hopefully forward. plan in we equity as go could range that it minimal X our to but be issuances, in in the XXX see X, So we around

Andrew Weisel

Okay.

X-year entire the period a for realistic zero it's So possibility? is

David Ruud

I some that a have would we internal internal expect equity It's sources, our possibility. issuances through though.

Operator

from line Anthony Mizuho. is Crowdell with Your of next question the

Anthony Crowdell

again, all a restoration the out for Well, go there. hope I I'm efforts it's sure the workers quickly. grind

So fingers crossed.

Gerardo Norcia

our of customers. and braving proud hope really We're safety for just They're there. our and same their we these good out the certainly people health, elements, and for

Anthony Crowdell

we electric system in for the granted and provided our sure I'm we service all get Yes, gas. take

approved? this this if that filing time, IRM segment And I the has apologize And Just DTE request. gets One you I wrong, for had X quick just requested if what gives that ones. it the what before? optimism Electric this or so, maybe on --

Gerardo Norcia

an and would big we requested trying so immediate was of felt large we time big not a -- every handful it like there parties that the to rate over other enough too it to ago. and us be cases this years we a And benefit rate I cases IRM it, did is we that to it having interested immediately, last many was have -- got really Anthony, year. The this And request. stay to And of that, feedback were out make at time the maybe time amount.

involved all as a But parties little the We've grow it and will work taken think give the different a years -- it. may IRM. made we cases more to early as it will rate the reconciliations the that smaller distance cases may we've time, in create rate which party in for And between years, start this -- on well confidence have both over approach. us executing IRM. the I you're on in Well, time, put early we're it

time. strong it will So took different be this feel it a of we filed why approach and ahead feedback. positive that got little and very before successful. we time that's We socialized we

So we it about feel good time. this

Anthony Crowdell

in data, all all filing? the have Do put ever the beginning. a I will able that years ever you what's cost seeing that to and estimate clear case you rate rate delay have very to a the of around take savings think It that that, start you have to an But add may guys very Is a up. guys test the guys if filings. personnel a provide before what if or and sees been DTE IRM rate out be customer is potential file lay modest all again, aggregating on you value that you're there go the you that running,

Gerardo Norcia

of say there us for our for of you costs if sort interveners the for case, course, of are, and the would and I commission. prosecuting a will,

significant And from is over we have chain our value a we from cost once them more out and the I that working can efficient will on bulk perspective, materials start think that more X investment will over preordering supply extracting years. Anthony, think the term, the of contractors be reduce an we'll long where So to are fact significant. our that. and certainty of arrangements up profile, the and of much be X I behalf But supply that customers. lining the piece,

there's initiatives huge lining commit them we also to beauty When business supply X chain that and you efficiency efficiencies. the can to initiatives. a the somebody contractors say would I saw is IRM start can the you to gas So our and incentive for up extract of to in for respond major years, to

work. So millions of the potential I accelerate in and where to our ability of dollars savings see that's capital

Anthony Crowdell

And it Vantage, of linear? guidance at lastly, the DTE Can Or given earnings love growth is more I the to 'XX the I you've just out, believe, DTE from Like, as just back-end growth Vantage? I clarity loaded? in XXXX. think till Great. 'XX any on

Gerardo Norcia

million $XX $XX that forecast. to Typically, of targeting that we're advantage million, Anthony, growth support to

So and beat each it's that's what it, passed sometimes year they every and sometimes team lower. the with

income we to But it And to million -- we've we RNG. a our control overall, it projects averages of year coming can of is $XX out to about lot current a growth. convert $XX it million are can look under that landfill to got that because these

X the got And nice X a of line project next least over at sight development. we've years or into so

Operator

and we Norcia. would to like Mr. gentlemen, have that back all time to today. now Ladies the Jerry the turn questions for call I is

Gerardo Norcia

position we thank the another Well, year really I'm today. future. our everyone, us joining by for And for saying feeling you, good had and strong XXXX about and in close long-term XXXX, just I'll

everyone a So healthy. hope morning, you. Thank and I has stay great

Operator

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

may You disconnect. now

DTE Energy (DTE) 23 Feb 232022 Q4 Earnings call transcript