Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen. Welcome to the DTE Energy Second Quarter 2023 Earnings Conference Call. [Operator Instructions] And now at this time, I would like to turn things over to Ms. Barbara Tuckfield, Director of Investor Relations. Please go ahead, ma'am.

Barbara Tuckfield

morning, good and you, everyone. Thank

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

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

Gerry Norcia

and thanks, Barb, update. I'll a the us. discussing will joining will our general progress Well, for discuss be financial proceedings Dave regulatory up settlement. of of good provide your year before and and the details achievements and a so including update questions. provide thanks morning, we things take IRP made the I everyone, business This we've our morning, this wrap far

strong as a electrification. to Alessandra vacant as forward working Germain position we to look Chair to the and her some she appreciate work the I additional by We Michigan. Carillon leadership Governor Scripps commissioner years MPSC, opportunity and in also an a congratulate Whitmer his regulatory reappointment our The balance to forward extended continuing the Phillips. this to commission. appointed want consistency has here Governor Scripps comes to commission left term take in, appointments to with Chair We with to he them. on Chair recent six to touch Scripps with Dan we to background role Whitmer provides look brought XXXX. of Before filling dive new regulatory in and always the

customers, area our continues drives by operate at for We proud measured that the X. to success, recognized was supporting and I Gallup our and as Gallup stakeholders, top year. all for XXth our Slide and team the including in our Exceptional Award to say team's employee to organization. committed by engagement decile the delivering earning communities engagement levels I'm this remain consecutive employees, shareholders. that excellence on Workplace Moving always

received brightest DTE Detroit's including to human excellence to The Metro best work great one commitment brightest their balance, We employee employee companies a on was education named news categories, practices best also that and that resource life enrichment based diversity. companies of and and program recognizes and have in work for.

IRP agreement, I'm environment. investment regulatory happy filed to our settlement say supportive nature our future, weeks which two in demonstrates approved Michigan's outlines clean it. that our MPSC energy of we yesterday, the This the after

that puts of cleaner, are cost We the years customers on energy our first this a for generating customers proud our our that clean by affordable settlement reliably while provide rely agreement the will come. to the on I'll transformation, details energy few minutes. plan reducing more in

community-minded most we named by the consecutive am year award and put the year On front, in XX Light to award the presented honored sixth Civic DTE the for of us companies recognized be to year. Points community the was I This earning our in serve that. to after nation. our recognizes proud day decision-making this forefront continues team every the and communities each that at as

financial our executing guidance XXXX On achieve growth. the our to are and investor front, we plan long-term midpoint on our

to has the efforts. find continuous progress our the made go earlier experienced that facing will with and weather we As Dave excellent management company, work on this savings this, but we we the storms have headwinds across team on you improvement more year. details with and cost know, the into been entire continue

seeing businesses. across of additional As favorability well, portfolio we are our

XXXX our and DTE that continue positioned to X%. to deliver performance delivering strong well is to and growth the on to of premium also growth long-term EPS guidance X% are midpoint known continue deliver We for

Let's Slide the IRP discuss settlement agreement. five and turn to

our want organizations XXXX. completed and build reflected customers the Michigan maintaining the new the IRP that DTE XX and generation The ending insights on our use affordability. balanced provide and opportunities. comprehensive shared agreement We the other for offers employees analysis retirements, a retraining thank impacted complementing the approach coal of economic to this by employees agreement. from is by for DTE resilient diligent settlement plant and key transition with to build development settlement A across commitment fleet, We we'll to local to partner a provision of a work for while on customer and diversified our of our plan reliable their communities stakeholders in DTE's will grid plan. continue

plan continuing and in to our peaking are River cease use plant coal We Bell power converted at to natural our X,XXX-megawatt resource. a XXXX gas

XXXX, units Monroe two of from We planned. to coal the in XXXX our originally which at than earlier XX nearly are is units retiring years XXXX and two remaining accelerating retirement

these two for best To To determine studying XXXX technologies. the carbon to the retirements, how these support possible we a alternative over Facilitated of Monroe, XX% company our goal replacement electricity will decades. reduction we accelerations, by of XXXX. capacity generates are range from be the transforming the next replacement moves

and by megawatts facilities. power We to industrial XX,XXX of developing XXXX will be businesses homes, more than renewables

and and cost than million transformation. reliable more supporting XX,XXX customers. support in storage megawatts is Additionally, customer delivering million we customers positive facilitate by assistance bill company's also than $XX repairs billion next million vulnerable the will provides energy. energy $XXX $X long-term XX energy in energy million for low-income clean be $XX clean, investing we Michigan be value IRP it home will this in in our this, efficiency in very our in and to remains directing affordable, over of what energy clean customer energy to customers, build $X.X all including programs, of the savings, cleaner for as most we years IRP, communities jobs. focus Through need, affordability to future support This will $XX billion Through a providing X,XXX more our over transition,

our into plan. of it generation. This cleaner in how planned our IRP Let's large move plan our investment portion IRP a six the to supports long-term solidifies Slide to capital fits as discuss

As The next we $XX will and renewables additions plan of grid $XX.X future, transmission to five years in be you The in and transition in storage outlined and this years. system. generation billion investing in utilities the build the net over significant Bell the two of modernize book through and recovery full to the the our customer the billion recall, distribution our XX gas are assets all next the Monroe. addition River clean cleaner provides A the value our to provides to program portion in our plan. securitized renewable the cleaner while of and investment we renewables of affordability are surety financial increased voluntary doing energy investment investments balance supporting plan. with generation of to IRP

depreciating of the River, A Bell value be since currently at net the will will will we asset of majority it service be authorized small in X.X%. For remain securitized the XXXX. book portion the earning ROE after

received in we the with investment the regulatory balances Monroe, unit assets The return of XXXX. portion undepreciated equity. X% the securitized will coal of majority For for beginning a be treatment remaining on constructive asset

that XXXX, We will securitized. is until X.X% point receive which ROE, our will at portion be authorized which full

with including and the So nature constructive MPSC case stakeholders, DTE's It environment and this and and is gain really and rate. for supports surety regulatory staff, Michigan consensus the also in EPS to of a customers financial state's X% outcome. the clean, in long-term general, settlement the and reliable this with attorney good And ability aligns Michigan. growth and plan our consistent key provides the goals It plan overall great X-year Selling confirms environmental, the regulatory provide our groups. affordable, visibility to industrial to capital this plan. X% energy is is

We updating financial our at plan will full be EEI. X-year

generation balance any plans, with our with continue distribution for to we investments our in infrastructure base affordability As customers. increases infrastructure clean and of in

Now to other turn this Slide let's accomplishments X. quarter on our

team so lot Our year. accomplished has far this a

the wind to generates placed wind At XXX-megawatt energy spanning enough Michigan's more Wind wind largest three park townships, and Park, park turbines homes. we power XX,XXX in XX clean service, Meridian Electric, than has DTE the

In our projects types overall even bringing our supporting jobs bringing by to and the clean addition and goals, energy strengthen creating revenue of to communities. to by these tax grid more economy additional help Michigan's de-carbonization

a suppliers who Additionally, automotive native joins automotive women-owned green are Dakota, American and joined last month, program. to using XX Dakota supplier make my power more our renewables sustainable. voluntary operations their

has over XX,XXX the state demonstrate to X,XXX continues making of the of largest us customers, including program voluntary that the of the residential This Michigan the renewable of of success country. largest and megawatts participation voluntary one in renewable program in commitments, our currently over

progressing completed years five we to first trained We reliability which miles X,XXX is DTE this half We the of are constructive XX,XXX the as renewal case At miles have of miles last continuing through over main work additional grid. we XXXX, will focus our all in our X,XXX of Gas, improved rate on The than trim marches an trees stakeholders. with continue more electric and pursue of settlement along. steadily our year. a electric

in half XXX We've over completed XXXX. the miles of first renewal of

in customers its invite Our natural program XXXX. gas first to join balance and Grand was the municipalities this of program. lower city inception subscribed We In more second the grow. in municipality help have to program we great footprint, since Michigan participate to the in East over the now quarter, Rapids continues XX,XXX program also to carbon

Moving on to DTE Vantage.

we RNG we in mentioned service year, custom One this earlier have Solutions so placed and As projects one XXXX. far project. in two Energy

two customer energy year-end in are an track on place We in are to by service additional discussions solutions advanced projects additional on project. RNG and

to continue opportunities RNG energy and With give it Dave We custom to that, to conversions development projects. in over also you Dave, turn I'll over with you. our a to both strong large solutions update. pipeline financial advance

Dave Ruud

and good Gerry, morning, Thanks, everyone.

Slide million. translates on quarter share. our Operating review per the eight were for quarter results. $XXX $X.XX start me into earnings Let financial second to This

top earnings breakdown can our by reconciliation for lower EPS second than the quarter. GAAP earnings including our page with segment, a reported utilities. of the DTE the $X You is Electric in the review detailed find were million appendix. This the of at quarter I'll XXXX. start the million of $XXX to

partially driver of returning offset weather. implemented have This amortization onetime in work, cost variance to higher cooler was base with and There's tax of accelerated the people by the O&M relative to XXXX. continuation XXXX. residential we in reductions that earnings the was lower main XXXX The also costs deferred rate sales

The $XX $XX second million on rate IRM earnings XXXX. revenue DTE XXXX, offset cost driven quarter of the and in higher by partially to costs. Operating than Moving base million, reductions Gas. earnings O&M variance was were by higher onetime

outage DTE is a timing This at quarter million $XX plans. decrease Operating planned last third to on the primarily move row. quarter in XXXX. renewables $X Vantage earnings of second our second were due Let's million the year the to from

On last the the of see quarter next with second is million, finished year. Trading you $XX earnings $XX than million can higher Energy quarter row, which the

QX, business is As due then on based there timing power in is that these positive fixed to in I some primarily and are the now This of upon execution. the revenue hedged year this is that second the prices variability our transaction, in quarter. contracts include mentioned physical term contracts over

the the This the while begun cost which first timing unwind higher we contracts that sell January a and at energy We was saw expected. curve, the based to energy in has as February. in synergies fixed on for these quarter price recognized variance

half for performance XXXX. to robust in has Energy premiums quarter Trading the earnings $XX due We Through also of in energy of portfolio million. first physical favorability our trading contract the had power this year,

and second unfavorable the in higher was million interest due quarter. earned Overall, quarter-over-quarter, primarily by per $X.XX to $X Other DTE Finally, share Corporate expense.

turn slide Let's our nine guidance. XXXX to to discuss

bottom midpoint guidance guidance our have tell deliver at we start achieve and range. the overall the the to you we page have XXXX, remain track plans the and me on EPS Let for of to that on we of

approximately difference As we year. without $XX at sales received first driven a onetime focused the reduction faced Through of reliability quarter first sacrificing DTE We end the have achieving the for customer we safety by order million year. weather in half of Electric lower-than-expected headwinds and This the half of $XX over million. $XXX million offsets forecast unfavorable discussed, in of or from winter this a Electric at DTE service. the storms in headwinds impact of the these is efforts, had rate year, includes have last cost

each be However, will of its below likely indicating guidance Red our ranges. business by guidance units remaining range at depicted headwinds This Arrow. green represented as electric and EPS will their above likely other fall achieve guidance. overcome they the by Favorability still the the our is arrows will

reductions. and O&M its the onetime pricing, is seeing contracted to continue by additional power sales driven is this Trading service steel contracted, business. by favorability stronger to Vantage upside Gas provide DTE opportunistic DTE favorability will at favorability hedged Additional Energy in coming driven portfolio, R&G projects is highly which business. into in additional

O&M business our and business the from to the of implemented operating unit onetime the reductions for to DTE plays units. weather summer have reductions the O&M units corporate the All performance business EPS all our portfolio, and onetime after of we benefit guidance we'll Cascade at range midpoint plans also update the guidance Through out. achieve

Our does the the typically remainder normal the we for that the historically without assume guidance build average weather contingency plan. into year of

our us ensuring all continue in reliability reductions Our identifying and team the progress stakeholders. the customers the This to onetime our allows has implementing and really made deliver that opportunities to company excellent safety for O&M while across expect.

year continue to EPS the our our shareholders well and premium that be this returns will to from to us. positioned to have come us growth achieve very performance The allow long-term expect

Let on year, line me customers, investors. continue focus open communities DTE then for will and wrap to we XX, up will In slide and our of remainder team, the through the the on summary, questions.

safety full We are executing without plan to and our reliability. year jeopardizing on guidance achieve

Our IRP filings our continue utility evidenced recent advance to as regulatory by settlement.

We also rate our case. a constructive settlement continue pursue in to electric

we for capital reliability customer that plan our growth to execute increased generation long-term EPS focusing as cleaner and to make supports deliver the investment while robust critical Our customers we affordability. operating on our on need

provides X% a we open joining in for line growing I target XXXX us for can our with supports EPS. line and you operating dividend growth With plan through that, X% long-term and EPS operating Our questions. thank today, to the

Operator

JPMorgan. go [Operator Instructions] at Tonet to We'll first this morning Jeremy

Jeremy Tonet

any be rate start I Just hopes able been are electric proceeding, general this I helpful. could in could with case Or you are at to said. how so And progressing? if might much be would expand on at other only we But And wanted that process to settlement materialize? the all appreciate this just has here. when at guess, for point the where color

Gerry Norcia

Our target, the mid-October, issued. Jeremy, is to settled case before is the and rate PFD

But ingredients started become summer. to we intense that you and those through on as some lot the obviously, So I and more we'll the progress. a settlement, we update conversations conversations, will for continue believe have have we

Jeremy Tonet

Got it. That's helpful.

comment weeks. for the quarter. like far for guess, big the so ability you're the to kind jurisdictions swing the things over the next I able Just wondering, to in do your look for How what see third and couple weather year. Obviously, quarter of of you can

could relative Just wondering year? help XQ saw if weather in to we the in what materialize earlier

Dave Ruud

Jeremy. Yes,

far, had pretty close out things what start to seeing expected. So we we're

you big really as big or be and months. August swing though, can so really us And for September know, months

plays So out. continue closely the to that weather watch as

Jeremy Tonet

one, Got it. last if just That's I And helpful. could.

items DTE offsets? I there should service a look other that, kind sales, like could wondering for for some are was was in steel expand we think to other Vantage, you if of opportunistic bit there on and that what more -- just that

Dave Ruud

the across looking with our We're that. steel within portfolio offsets. for we ones our Yes. represent have portfolio, And

portfolio, across we of And continue ensure some these our to able what doing year We as like got we year. the cost take opportunities that and been opportunistic for we've reductions we and that have good cope onetime for business advantage for that some year. some deliver to a byproducts of steel sell pricing making. look whole say, we the Jeremy, we're through and process pricing really I'll And this some that our our this can of just to within these

Jeremy Tonet

you Got it. Thank that. for

Gerry Norcia

also favorability Vantage. to at is which lift add also seeing RNG some some in that, to creating pricing, we're just So

Jeremy Tonet

Got it. leave you. it Thank I’ll there. Understood.

Operator

go Pourreza Thank to next now you. We'll at Guggenheim. Shahr

Shahr Pourreza

Good David. morning. good [indiscernible]. quarter. good Hi, Congrats morning, on

need $X.XX So just you shift there should mentioned, the the of O&M to the embedded of what a it quarter? kind is And flex and of normal. of year? about as looks appreciating at remainder challenging for another like kind Jeremy weather was we end How the anything there first think from the versus the

Dave Ruud

Yes.

business, As ensure we opportunities we through weather the year, to looking we've we year. seen and challenges that the through go can as we're the that play across storm the again, for out offset the

portfolio. first doing through the as the year, all ensure that that able risks. weekly we're that to our we're extinguishing the we're extended been and the We all so the saw meeting offset leadership in additional that And an able can quarter. across we've to have opportunities opportunities team, And through through finding weather find we some and to challenges been seen we've the storm we

for to continue flex throughout the we'll look So that year.

Gerry Norcia

areas color where taking advantage opportunities. to to to of diving of for some look add full And we're these the We're just attrition. Yes. into

So and critical we roles operating we're reliable safe sure operations. hiring that only have to make

as Some of in initiatives reduction across the happening terms of staffs other groups attrition. overtime. significant are all the onetime A well in

noncritical maintenance deferred did Advantage favorability in contractor as trading course, market business prior had we We've well gas and we're Dave years. some And at had favorability, of as the surpluses reductions. workforce that then, bank of our and pulling when that mentioned, out for We've we matter. in as seeing maintenance

In supply value. to give long-term to chain addition, contracts us also some we've started with renegotiate relationships

and So learning our we company. hitting lot we're all buttons about a we're the

will and the significant far these to that one are large, the but we've team them hitting but And all by of stick, most offset of them I'm time, of because some really headwinds. given these targets we're proud

Shahr Pourreza

XQ? executing to no on say just kind So plan guess big the of I from be it would changes fair

Gerry Norcia

That's correct.

Shahr Pourreza

financing. And Excellent. efficient then maybe to shifting

helping. growth? And tighter supporting thinking investment credit see levels just on a stacking capital on value high As metrics those any up those how equity future market in Vantage assets thoughts balance assets needs? base mentioned the as especially -- against Just to are of we continue external But versus environment, how maybe sheet any are you of potentially support? you are rate internal the about

Dave Ruud

have you debt Well, our to FFO our levels to look yes, at with good if financing plan, we headroom rating agencies. overall some the

have there. few is And we equity zero we've over some room on million the to next plan, our said years. plan equity So as our in $XXX

So very do low equity that would needs we methods. internal through

we're seeing and standpoint. balance we're good place in on sheet both a still a that from debt really So our equity

Shahr Pourreza

that the question Excellent. higher following been and case. ranges on last There's you on Jeremy's recommended that been in housekeeping kind settlement have points impact, that 'XX kind some rate the start up just of stakeholders. out, of maybe some one, And potentially call on data will in make frame negotiations? an whether to the that, Do that from anticipate shows recognition time or ROEs

Gerry Norcia

we've Well, The negotiations. slow will seen commission it the be high we've it's of that I filed past pattern, and part settlement slow for that a I ROE. the the from down. think mean in up

will our will be -- it that gradual. certainly, But for happens, asked whatever of and settlement be higher it So extremely will part discussions. be ROEs we've

Shahr Pourreza

for appreciate I Excellent. questions. it. taking Thanks my

Operator

We'll Bank Julian go at of to Dumoulin-Smith next now America.

Heidi Hauchon

is for Heidi for Hauchon my This question. Julian. taking you Thank

Gerry Norcia

Good morning.

Dave Ruud

Heidi. Hi,

Heidi Hauchon

Good morning. Hi.

spend of Just electric the stakeholder for you of to of example, rate following your case, the has a mechanisms to case in management feedback ongoing what some the similar? rate incremental proposals exploring my And are intervener then kind as, such question testimony, follow-up first something the ring-fencing been any and or vegetation IRM? like

Gerry Norcia

Sure.

investments will this That really certainly positive for help and towards getting a our to is secure there's encouraging. a move and customers. more right So the necessary valuable that's to all And signals the grid. that one from be that the IRM support been feels something reliable the resilient staff we're can

proceedings it put plan. a when trimming that ring already it tree, we're surpluses, more years even labor actually a done we've of in of against good of outages. where because customer And terms in In see And portion is that tree we significant good as fenced. we've against terms ring-fencing reducing had we've past through essentially executing

towards feel settlement the to to that seen of our we're middle a productive, I positions hard October. the going in are and before that So work parties, get positions we've various

Heidi Hauchon

is adjusted Great. Thank on weather this or also, expectations? how trends your consistent this with you low sales you. year-to-date, into And whether can growth factors comment then forecast and

Dave Ruud

Yes.

we we predicted sales about sales on expected And to Our people year, weather-adjusted this basis last really what returning X.X% If year. look that's to we in have have with work. as a come exactly down to back are residential X%.

in a and down industrial is a our downtime. is Michigan commercial to less little experiencing our efficiency are some up due lot energy and other bit Our things as plants

and at our people the we've kind right I we So consistent of very through what have seen year. forecasted think now return with are level where the are work sales that they or kind with of to

Heidi Hauchon

We've And some storm just from quick this reports causing last you. your jurisdiction. really That's service helpful. one Thank seen morning me. outages of then in

on or of to level it's activity? but finally, Just touched storm normal in restoration in your and morning you. kind confidence can specifically guidance storm storms I you wondering, we've early efforts comment storms? of of light I this on relative these know achieving but And of Thank know then on activity severity storms. expected weather, on

Gerry Norcia

power So weather conditions. some customers And address mobilized X,XXX members we've team at to of our about have storm night. have the we moment. almost moved of storm did to Approximately this our XX% last in XX%

So of and we'll types couple in most storms of ramp it typical days. the in July These pretty up are August. next of

this out point of ordinary in So time. the nothing at

top good mentioned, the I weather and in have more and some asked we firestorm in for we're we I about and that the experienced and those mentioned seen $XXX delivering have plan be achieving we will is delivery activity plan. In lot And us for of our is these customers. nature, that and and good the on terms headwinds. addresses as the And about warmer initiatives the a right and but on of included which weather Dave We've company achieving on of some mentioned, has team of guidance, significant that onetime them headwinds our winter. for of plan initiatives Many plant. headwinds, a million the they're learning, cooler as

of that our the midpoint So guidance. will I'm their of and land us at accomplishments, proud

Heidi Hauchon

on Congrats results. Great. the

Operator

now to Research. Sullivan next Michael Wolfe at go We

Michael Sullivan

I into quick that are on get think if that replace one kind to you Did I originally, I the more what could table solutions a little could plan? like the IRP. technology was like? wondering of just of mentioned have a other look we color the carbon on gas just -- studying there? had a the in and official you on end with making up Or there. sort in capture had plan, may plant it what Monroe

Gerry Norcia

Yes. What was would retiring we say, settled on, the another have in the, those two would two Michael, I in and file units several we'd that what be last Monroe, that really years, IRP XXXX. the key topic for of

the course, us, that we two will So parties agreement a dispatchable and years. need look the there. change But between of a was could three lot or resource in

combined a proposed with have plan carbon capture. We cycle

so more renewables. very we options, from have our as in But other industrial of more to amongst feed on batteries, option resource that that we'll study that base an service definitely, part count Detroit. territory And many large to the

and resource quality that's XX/X be dispatchable to a high we'll a need resource. going so And

but maybe So a that of it it's be to those where just agreed will will a look -- right to like us, It stakeholder take now mixture tell as study studies together that. we group. would hard

got we've do one. time to that So

Michael Sullivan

then the on one IRP. Great. another Okay. And

how was about little the in customers you IRA River there I bit or a may mentioned and potentially that plan? Belle funding think help conversion. your at looking somewhere Can for that talk

Gerry Norcia

Go Dave. ahead,

Dave Ruud

of DOE kind that ceased it now for that this repowering gets funds is. right River infrastructure and the we What what Belle replacing are some conversion River mentioned fits with available of Yes. the energy there for or Belle into conversion

capital that rate help in and plan. look with So out can really some opportunity come building along there's and affordability generation give River customer we're right DOE some our investment they we with renewal can have, funding interest we're at and to lower going other as can see that Belle clear if infrastructure

Michael Sullivan

out any can when worked funds sense timing that know of plays you And when the you get on on? Okay.

Dave Ruud

that. we'll get the for will it years know or funds next are those forget five be four timing few we on I closer, over As the years, available

expense. time get just interest some to we have So that. get lower But and opportunity our some it's to rates an overall customers for lower

Gerry Norcia

Mike, plant. projects get a you as capital the we long list into have of to waiting know,

it opportunity full So as us in grid. journey our some we like, to make it, our to more advantage headroom, we'll areas with find of unique allow other will of more find for finance it. example, take to like to that The ways accelerate

Operator

at And David Stanley. Morgan we'll go Arcaro now to

David Arcaro

or those I like arsenal financial that? tender there just thinking things cost-cutting their that I your measures considered? one was bonds, outstanding wondering in year? you've that headwinds a have measures. tools offset disposal on did offsetting are you was offer this Just weather of wondering, your that recently consider you that might things CMS, of if at Are would for

Dave Ruud

or We've opportunities that. look more year. have convertible what value we to course, We other across always debt. opportunities. much sure of We we to similar they that maximize we like anything the portfolio don't we And corporate we for for at debt need see looked shareholders, don't look do do, this And brought we'll for a up. too. want opportunity now, right overall make But the

David Arcaro

see Got this could give to the plan in you grid year timing for just distribution might on could it. we the expect update an what what be And updated that? and separately, then

Gerry Norcia

end by that we'll major the surge before but file continued four will will as to end the of We in The expect we of trim, And the year years, of a tree buckets. more required cycle. two be really which commission. it maintenance address then

pulls equipment That will of be of is So arms, be key call insulators on the pull-top a that we replacement plan What that system. which maintenance, feature. a part press themselves. big will our aging

of five years, plan. that grid will of the to the full Third in accomplish major is be component automation, automation trying a

the and storms frequent for more big seen be we've As a sizable lever us more of outages. to years, restoration over automation storms will

the system, I've quite volt before, through in installed grid and replace then our that 'XXs old. the early of And X,XXX that's XXXXs miles. as lastly, about need we X/X and It's a XX,XXX mentioned and is to was that,

next also our get really or XX over to try So to that and updated the journey plan a part that of will accelerate years. this be XX done

those There'll hitters those major four you'll grade components in there, will the plan. things So are but big other be the the distribution see. be that

Operator

We Alex Mizuho. go next Mortimer to now to at

Alex Mortimer

commissioners how upside think do low might the your on you currently new above included what the in With have about CapEx you electric focused for rate vehicles, base plan? and

Gerry Norcia

big of the several it's the a now carbon mean reasons. transportation in is we're look, emitter great believe One proponent I of sector for for largest transportation environment. electrification the economy. the I Well,

So for be to very valuable I believe it's going that.

the more investments it get we be these large well the end investment will for to start now near we're expect prepare see But that yet, in It X-year help margin our to significant of load sense opportunity just that as we pretty fundamental from obviously, of for we'll continue contribution nice we it finance investments as but the not the weather coming inclement as see our to electrification is headroom that ourselves that fleet plan, we secondly, on. making transportation that And and with lot see. to a that the growth. creates deal

agenda, obviously, is it. as pretty excited about happy We're So very well. supportive new but other the commissioner two that are our that we're of commissioners

quite that's And of there. do an electrification. supportive we administration also to lots So have

against opportunity. margin will future. it said, X-year perspective, a about period. start prospects investment more already later in from an we're investing So like But excited our become the the this we're perspective plan pretty in impactful to From the I creation in

Alex Mortimer

essentially we the for exhausted normal present point, weather quarter, contingency Okay. additional Understood. this stated now need midpoint the understand should this goal and you the year that then all of been of has given at just the to achieve balance And guidance? headwinds

Gerry Norcia

has our perspective but that activity have BUs temperature normal of perspective. contingency, been we but a say both still in of bit contingency weather I would and exhausted, some on a are storm relying company from electric other the

Alex Mortimer

in the Okay. "normal And bias then kind of other high is normal in what you than of weather to year" of still more your middle a kind get and more towards year? low the a And point middle guidance? the would

Gerry Norcia

and the the this say I midpoint the bias towards bias would is the in point at our time. is target --

Operator

closing any to turn no back appears we it And further for Mr. like comments. you. to this Norcia, Thank morning. have I'd things questions you

Gerry Norcia

safe today. I everyone great thank has a joining you, day. for close hope everyone, morning Well, a and I'll just by us saying

Operator

gentlemen, that remainder Norcia. wish you Call. Conference Thank Goodbye. thank to us Second for a you, like day. Again, of Energy would DTE Quarter Mr. you your I all so joining Earnings Ladies will all conclude great the and and XXXX much

DTE Energy (DTE) 27 Jul 232023 Q2 Earnings call transcript