DTE - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the DTE Energy Q1 2024 Earnings Conference Call. [Operator Instructions]. After the speaker's remarks, there will be a question-and-answer session. Instructions]. [Operator like Investor call Relations. now Tuckfield, to turn of Director to would over the Barbara I Please ahead. go

Barbara Tuckfield

Thank you, and good morning, everyone.

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

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

Gerardo Norcia

I so is safe across we for Thanks, year healthy our our we and This hope far. have a successes this as Barb, discuss of to to continue good joining continue everyone made everyone, and having the year morning, businesses. achieve all I and morning, key we deliver will thanks far stakeholders, achievements and of so us. all for

in generation of focus customer Given future, take is financial a grid things affordability. before reliability questions. Dave wrap the up our to to build charge investment we to your Joi operations, the of highlight she maintain transition will provide and significant while that continuing customer-focused cleaner will agenda And on update and

Let me start on Slide X.

and deliver for our communities. to well of to We our customers to engaged the continues start DTE this XXXX and team positioned success be are off focus that year. achieved and has a in strong targets on our The result

was row. which XX employee communities. The proud deliver able for to customers extremely award Workplace service in our DTE and Our this recognized our well-being team health being with achieve in another continues for Great and years receiving results am Award. of Gallup at our a and I cultivate of our team excellence team deeper engagement to engagement, improved

to continue deliver We customers. for our

In for Gas, delivering have our centuries. we DTE at been for customers fact, nearly X

XXXth this its Our gas year. celebrates company anniversary

been Michigan years reliable city gas on affordable have gas providing XXXX, X appeared lights customers Detroit even natural in We before and streets. safe, to since

We have customers focus come the never years, on has the way but wavered. long a over

serving demonstrate is to Award provide energy of ENERGY the practices. An STAR level of recently the DTE of the Year important organization-wide awarded customers and highest savings was part EPA. EPA, opportunities. energy best is Partner award The efficiency recognition programs the by that recognizing from the

commitment their performance. recognition. demonstrated this have this options This sacrificing We our extremely am energy consecutive DTE year reduce to again, is customers help the award. of bills without third proud received to identify I And has

XX,XXX communities $X.X sustaining continue invested We suppliers DTE across Last than billion city live in million year, creating we Detroit. to jobs where invest with and more and XXXX, in $X state. nearly and based the the invested in of also DTE diverse nearly businesses with Michigan with companies the serve. billion $XXX

levels. to Michigan's a continue leader at driving We in economy all be

the to remarks, at of targets. positioned a XXXX deliver start to are are our the As I my and year, having said strong start we we well

share Our the in dividend for dividends line basis growing long-term at practice X% EPS growth to of growth. In operating XXXX our $X.XX X%, XXXX rate original guidance this of with remains per with our as EPS. consistent annualized with is

ratings expect come that have investment premium our and to shareholder capital this investment-grade a credit support will deliver. plan. to to balance have continue to will strong investors returns and We deliver committed remain focused we we that Importantly, sheet

XXXX, the As of the Stock marking a continuous is DTE celebrates celebrating Gas on year Energy listing Exchange. XXX-year the also milestone, York with New DTE XXXth milestone

XXth exchange. In on company the any of fact, longest the is DTE's tenure

for of time, a saying these excited come. for guess are and I to am about years this the I another way us ahead successfully very opportunities many milestones have of long doing just So we very been

some X of across Slide to portfolio. our to turn the Let's achievements highlight

Starting in plant. we stronger, that our in is We to future Electric, affordability. DTE case to the site and be area received will system resilient approximately our strong part month, our will have smarter, a we it investment Great filing more initiates the energy $X.X and the an and go battery the for in to build on approval grid of transition in made step investments progress detail grid Joi need and region largest construct transition Lakes transformation power a generation. Last focused stand-alone generation. XXXX storage cleaner the customers project our underpins XXX-megawatt it be to electric while This investment across an to generation Trenton customer long-term the billion. year. how will reliability investment further outlines of important remaining operational more an in in energy the battery over company at Channel at important be the project electric rate cleaner This expected early filed the cleaner and former we this storage of

the milestone later case this Company minimize is go targeting main XX% scheduled system. we infrastructure, support our will continue into projects, costs. At renewal by Gas Ford a project important we to main we contract At gas in to renewal January, year operation capture DTE as gas we our reduce no the renew sequestration continue carbon XXX with to solutions fee Vantage, at continue DTE completed Energy In miles projects and long-term fixed year, rate custom advance to Motor that Gas, almost highlight an a One hit XXXX investments DTE necessary Custom project to RG transmission underpinned and we is risk. leaks commodity of Last energy filed we where to modernize of important program. over projects. and Solutions and which to is are

positive continue deliver positioned and now extremely say, So about future the feeling investors. customers, into my comments, and communities our in we for well how up I'm and start to to to wrap our XXXX just are I'll

and I'll turn some you. Now improvements. over investment over to our reliability agenda Joi, on Joi to it to give highlights

Joi Harris

Thanks, Jerry, and be capital plans customers' will our of to agenda our on you. with our all I'm to happy investment improve detail morning, good reliability experience. provide here more and I everyone. today

investment plan the on building focused Our is transitioning future, grid the and generation. of cleaner to reliability improving

have at next the a We the of XX% about robust our billion over years of agenda $XX X investments with utilities.

$X program. previous is in our and passed supported X-year legislation billion energy was investment increased last utility IRP, generation the November investments driven by that that the cleaner the plan, Our by over plan voluntary renewables by

our and to building year of grid outlines a full The transition this resulting smart to customers. X for and with includes the within future outages in our distribution last path shorter frequent automation plan less years, the filed grid

We billion $X years. infrastructure X are in and distribution targeting investing next reliability the significant over improvements

we an designed represents important that last cleaner case faster customer-focused mentioned, an infrastructure to investments filed energy to and addresses step our generation improve state. to rate filing Jerry investment month electric agenda. This reliability investments bring continued As in our the

infrastructure and customers, outages half X will reliability the We in and to outage our XX% cutting years. continue for invest our are next in focused time by reducing power improving on in

work is significant made the progress that already tangible doing front, results. see we're having we have on and can We this

of For X.X our the example, our grid of kV an modernization system. important part plan replacement is

the communities territory on We work is are work. improvement strides this in conversion and our in DTE the experiencing has as progressing front making Customers across a service reliability. where are XX% great completed

team and large in a We our a storm such hours extremely the did We are proud came making given the together one effort for I'm of a customers our after XX store. goal experience storm. progress also in of large fastest on team great all their restoring January, the achieved restoration and initiatives. toward of restorations

investments customer these system greatly are healthy working portfolio in to opportunities have of invest a experience. So the and to improve we our

resilient electric infrastructure weather committed increasingly legislation, our clean with meet be severe We cleaner to goals delivering most given reduction and recent are energy carbon our consistent Michigan's to our to more also energy aggressive IRP. while and reliable modernizing

as achieving our rate continue more reliability commitment cleaner important build move to X. Let's represents an case resilient electric future. to the of step The Slide we grid in and a

times outages X and next on focused reducing the outage over XX% are We power by years. by XX%

power. of We transition existing the better trees and grid, grid withstand without weather extreme like the significant deployment as stronger infrastructure are the to trim and customers which technology are of upgrade with poles to time and rebuild a for of they XX% smart equipment accelerate the portions fiberglass can planning cross account to continue arms,

the is Our enhance significant reliability, to only to the unlock liability XXXX, potential not the it the and to customer surpass economic state peer average experience, for has customers. does goal value improve this improve and by

transition to on energy on executing reliability, to we focused keeping remain on important are customer we bills improve our While the while efforts low. impact cleaner

at megawatt natural at units and the in units Monroe involves X,XXX in Belle use coal power gas resource. At in ceasing our are converting plan XXXX. current remaining remaining plant, Our we and peaking use XXXX plant River ceasing X X a the it coal coal to XXXX

possible this plant. studying the of are of a range units We for technologies replacement X

approval legislation plan. MPSC will energy our project, into Trenton a important will integrated energy area be Channel energy system support plant Jerry clean storage As the mentioned, battery power consistent repurpose from we come resource our transition an in which the online recent received with investment to storage XXXX. Battery former to the and

bill improve as DTE on the transition filing, have have we customer coal the maintain ahead while cleaner XXXX. plan improvement forecasted energy national on clean remain customer we and maintain DTE, we our and half At to energy recent us will of efficiency the very transition focused improve to processes at electric and in to less annual the to reliability average. I'm finding we on us, of here continuous continue track and front excited I'm to growth affordability. likely confident affordability. will we We that our about great our than execute Based ways rate cease our in our resources average use plan be of on in case a of opportunities are residential

Now update. over you I'll to a turn give it financial to Dave

David Ruud

everyone. Thanks, Joi, and good morning,

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

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

quarter. drivers than the Electric partially million the main This the the rate and top start we costs page implemented The were with rate storm costs earnings O&M first reductions earnings cost is higher onetime DTE offset base million the the of $XXX for of $XX by the quarter at our lower variance and higher implementation, XXXX. I'll review were utilities. XXXX. of in

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

If a warmer remember, you record. a on year, had and than was fourth the year we winter was last last little this warmest very and even year warm

Let's on project from earnings decrease of XXXX move to third to steel-related and DTE renewable Operating sales. a our is well one as million Vantage were earnings for million $X at plants as XXXX. the of XXXX outage This the first $XX timing quarter due RNG an row. in the of

of continue the custom to solutions for back shape driven and projects in Vantage year our some key by guidance the renewable portfolios. be earnings We will of timing our in be the earnings energy notably half of confident full higher as in for the year,

power quarter can see continued stronger XXXX which with favorability physical as well you as Energy driven Trading of XXXX next in row, earnings margins by the the performance of portfolio. primarily The in to was $X finished portfolio gas higher the is physical million. our On

we experience to With these margins, some last year. not magnitude same could though stronger the contracted maybe as upside,

the Other Finally, per unfavorable taxes. the $X.XX was quarter Overall, of million $XX due in of DTE quarter-over-quarter XXXX. first Corporate and timing earned to by share

facing have the we facing conservatively, operating ice additional in not incremental in XXXX. the first the were headwinds than of our faced a unfavorable achieving continue While plan are first we of confident large through and we EPS regulatory outcome we million that $XXX some optimal weather less we from annual to the remain guidance in quarter, as quarter range storm

rebuild to quarter, planning Our achieve a EPS position goals our after weather this us warm weather this warm our coming a the experiencing year. to strong for efforts for into year and leave in headroom

highlight our Slide sheet credit to Let's move and X strong to profile. balance

flows, in investment capital customer-focused Going $X our forward, into heavily the to which is shown This will continue DTE we in utilities. issuances invest appendix. issuances robust is cash through our XXXX. $XXX from operations, annual equity minimal by guidance our to slide strong of supported has our million plan, Due cash on these to cash and targeting

and refinancing capital incorporates operating long-term plan and financial Our growth consistent is EPS investment new our plan fund X% X% with to our target. to issuances debt

at into we what our came XX% be we To the it did below full have company had of will parent we and our rates making year, our or our we As issued year us at financing the plan, in plan debt hedged debt plan. assumptions. date, completed about debt financing within that had we XXXX planning confident financing conservative all-in

consistent We manage an other our mitigate that X-year continue future rate and issuances plan. through with to hedging variability program active opportunities interest

target XX%. focus to credit investment-grade continue and on maintaining balance of metrics, strong FFO-to-debt XX% rating We solid sheet to we our and an ratio

questions. Slide wrap up then and on for me we Let open line will XX the

for to our all commitment stakeholders. our continues team Our of deliver

as that growth the to our growth line on questions. need the that, while for to on guidance positioned and we returns operating well I deliver we to XXXX With long-term improve supports balance operating over X% cleaner we robust XXXX to with expect have investment execute the we transition a X% to capital joining plan. for that generation plan Our midpoint that come customer to to focusing us strong make DTE EPS shareholder investors total our and continue sheet target EPS the future customers today guidance you original thank be our can open of continues X%. reliability premium investments to supports critical provides affordability. The capital and midpoint,

Operator

[Operator Instructions].

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

Shahriar Pourreza

kind Could first guess, CapEx sort the guess, see of adjustments some off thinking legislation? I we you of are of light generation maybe is, cadence the kind how in I the CapEx about to kind updates of plant of of to new is construct? the this kind for align right near the this of further new Or XQ new construct? thinking in about EEI out? any updates or to And the is term we're cadence closer maybe as

Gerardo Norcia

our and start capital the in Shar, to I'll also our passed legislation add fall. update maybe settlement last that it, from IRP Dave reflected we that can So did and but summer the plan

a rolled when created much was included, and we our that updated $X capital of we increase plan, that So out. billion X-year that

incremental want do the that Now that say to X-year that? I plan, will we we period, next opportunity. part and you last create do IRP legislation will up the of the add Dave, to as that get things we for to roll anticipate and investment an

David Ruud

close -- Actually, but in that's will us legislation, IRP. that. we're I opportunities think The X-year exactly right. period, the this really some look as additional We'll give our plan beyond each other was consistent IRP, X-year with to the we there

Shahriar Pourreza

that guess rolling right? the as forward, was funding you And as on referencing -- that just on Okay. actually of then And Yes. more roll -- I kind about thinking incremental just we're CapEx forward.

assuming assets every is incremental 'XX. I at You guess, -- projects, figure -- equity think that through still of we the to million we this is some on could DTE about Vantage increase, that should $XXX to be like how the RNG do there that maybe how dollar Dave, a we off have kind up monetize do or avenues XX:XX kind table or structure cap point? of you

David Ruud

the to Well, sheet I'll capital equity. And allow said XXX strong our cash XXX we us fits IRA on throughout that from with say X this of investment the And balance the do we've generation to tax that a equity. because and flow IRA. our the minimal cash of that strong our kind that X-year of in plan from that lot at you're coming credits of IRA lot have a was and and

going our as the equity talked able within to XX%. to stay in XX% be to capital that at the plan we've keep confident that have as in that the about to well in we're we're we So debt FFO

Gerardo Norcia

I'm sorry, Shar, go ahead.

Shahriar Pourreza

Jerry. you go, No,

that. about Sorry

Gerardo Norcia

going create was for of some of Vantage, capital where if business, certainly, we the presented that and value, recycling I we're looking say opportunity those share. in deploy to then itself shareholder opportunities like always but could we incremental terms

see So now. will right change to we you and more that don't -- make if it if but equity were may needs impactful,

Operator

comes line Nick Your question Barclays. the next Campanella with from of

Nicholas Campanella

So you're we moved kind how on kind case just to of have business of and I some there with your you now I the 'XX here beyond feel about side, course rate being do and plan know back normal of guess 'XX. execution items that past but you able kind to out derisk otherwise? O&M

Gerardo Norcia

stronger into we in for add feel you, the that we started position it. mean much And of year -- Maybe year. to into levels deep and we I'll and start experienced are can And incremental this my feel When the year, the And planning into this improve XXXX. looking try real to to putting current a deep with tell really to of again, opportunities to planning is do to we're we're what is $XXX we've deep good absence last start headwinds year. typical that team million of 'XX headwinds we for But good it. about process. prompt really starting XXXX. I We're can I about headroom our together. go create the

reliable as and both and the infrastructure come electric in gas milestones, these about electric the this that the rate case really they're rate sense gas both case be are rate in cleaner. pretty early continuing and cases our that next to capital, rebuild far straightforward As year late more to infrastructure capital year, deployment and and all key enhance

our customers the past. for and to So is those support in investments much of requesting support what that we're from seen we've

confident together XXXX about plan nicely. So coming pretty feel year we our

Nicholas Campanella

how plan, there? kind of a Can some relative year tailwinds that? think that to X% million business that and then of should of range. to to X% overall returns in how that. range strength it just that these growth this how of that stronger And cash that guess we Vantage, in cadence that I had you above describe guess, in credits that you And tax about to know general. assumption would way the get then where I And at kind I are is you kind business Can seem from just certain any the in puts does you large midpoint isolate $XX but have the Appreciate you there it in years? you

David Ruud

-- business RNG good about Vantage we how it Energy in tailwinds see will there in When us does and that year, -- do some credits tax we into those and the to to -- still we to and then 'XX and in some as more some get plan. But additional and Custom X% to more credits X%. to our and beyond that area we through as both as Solutions are years. Nick, go is business long-term good our well. And Yes, related our come some get as tax from beyond you we're some some confidence X% growth these in really flexibility seeing good of we we'll have said, we the X% end the talk what also, the give that confidence

Operator

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

Jeremy Tonet

the -- trying Just Or to approached comments is right others to the rotation itself. these Vantage to to just to out for you type I or regards how guess, assets? a you and assets the the assets sense on have what you there want laid these driver opportunity present now? should market those that comments, And and of the as see for get the with come back for just curious, portfolio potential RNG

Gerardo Norcia

Sure.

exercise a growth. tell that of we time will cash we're see we lots value. could opportunity with in extraordinary they've that that just can at on by I happens those still market talking creation, you market. accretive, we're plan. above we -- we but I'll assets, again, if just we incremental in don't But strong opportunity, our pipeline we plan to of don't to conversations opportunity about this it type all now look of value And the and this always presents what Jeremy, value itself, point for And time over long-term for create value incremental great the as time, in start are saying, the assure in marketplace. see all based the And the I and And yet. look, like So we flows, assets see There's returns obviously created us expect create extremely dialogue you. the we that long-term our

Jeremy Tonet

come of it. very then renewable back about Got of energy kind back the earlier plan. talking comments helpful And That's on there. I of to want your just some the here, and

renewable be if focused you be expecting, peel bit Just of more upcoming a should able to might what you're details what the little here, plan? wondering for on back the we energy

Gerardo Norcia

Well, next our renewable and replay on what that continues. our this would I country about X,XXX plans the that the the have the expectations. currently one years. voluntary our have we just goal company is voluntary in size largest of megawatts say development megawatt that plan for X,XXX of based exceed X We signed I'll and a to continues

So see plan. update very we're to you to close that getting can that having

I as update plan. we will roll So we that say the next that's would one forward X-year provide

In as that so in well see as addition more if some from we'll tailwinds aggressive the it current the we together. X-year move forward as plan I we plan, to becomes think IRP the beyond roll that,

near the renewable are term that energy development opportunities term and we longer those in plan. So see

Operator

Next Morgan David with question line from comes Stanley. of Arcaro the

David Arcaro

go question thinking more you custom or after? One centers solutions. class are here. I'm Vantage customer I energy that was curious, with data

if growth opportunities there's wondering Just any emerging there.

Gerardo Norcia

with our yes, centers answer focus sort Vantage our right in short is both our Michigan pursue this DTE. and Michigan, in let and say would on data electric well utility the in perspective I Vantage backyard. But minute. a of with these describe me also for just global positioned opportunities are backyard I'll here more utility, here So to beyond for but maybe

changes significant land positions are will very centers that favorable [ having be and water, to we're access conversations and we attractive seeing conditions sites I much governor tax. And to bipartisan a very exempts has think this great And is the and they're indicated will the sales with way, great with grid say willingness approval those ] we're use that Senate. proved here house the have if and the -- in on that in in We attractive that they climate to discussions. the you come her may engaged by I you awaiting a interest, know, power the Michigan sign and as the bills large access plant desk. bills recall And legislation to

that believe that well positioned electric utility services. I Vantage we're So in Michigan with both on-site and provide energy the could

So having but we're they're opportunity sizable. conversations, the -- we're is those early,

David Arcaro

of early if rate Great. rate the in any could be thoughts request. on this that I That's on pivoting size acceptable wondering -- go could rate help let's case. Attorney there the the electric Then was color. something and wondering indications maybe think a after or -- comments the case? you out settlement the contextualize of whether And some were helpful you maybe be if General's I was see, case to early could that you

Joi Harris

Yes.

think much Attorney par, pretty I expected. we is on things General, that the

next infrastructure, respect power the cut over to and X in time we're case, you state. And to looking our distribution to energy And sources is continue the and about deploying distribution the reliability are journey infrastructure, with and is XX% outages capital all really really this looking years. transition rate half know, -- reduce targeting by to to the our improve We our to the we're cleaner we're capital. faster outage certainly as

know do feedback going tomorrow, had is scheduled to from start it. planned, we get as the the the case and is schedule to interveners just for the the prehearing then know this and and start staff. So We from we'll and we filed understand

in investment that $XX a million. the it's what's The the also based have It's XX-XX storm the on So I anything below tracker above storm average. aside general, in tracker and there's guess sharing a infrastructure, about is of a X-year X-way And from we rates. with our in case, tracker.

drive our case, reliability in infrastructure So that and cleaner certainly that's improvement in we what's really generation. to have investments the

with cap You about $XXX structure. of know that and the revenue is targeting an XX-XX XX.X% we're million, ROE requirement a

Gerardo Norcia

will In can for terms about we even we settlement, a understood course in known to its really is get supportive since capital we if this case, of settle. prospects this it goes and for again, interveners in to and lot litigation we've We're said, well primarily capital But agendas do terms well David, and got Joi confident of deployment. case outcome. as all of deployment that full that will

I commission and also to in way track state development here the our to of also think these the economic pursue record the more that has supports a Michigan. customers for administration knows strong in important and the and extremely investments they're state that value our provide and citizens

it's So we're feeling progressing. how pretty good about

Operator

Evercore The from line with of the next Chopra Durgesh question comes ISI.

Durgesh Chopra

just Joi, electric discussion the Jerry, on the on rate case settlement.

Is could rate with a this discussed and case? have guys potentially you that pursue partial electric You about some unanimously. something or parties in that the talked not have past settlement with

Gerardo Norcia

Again, hopes Durgesh. certainly, could, don't will. we hinge And too to on a many I settlement. We want

settle. all do can will we to We

sometimes rate that confident is to settle, various a opening we that as desire also case, our -- happens. bring we saw we get supportive that for outcomes but together think I in settlement. and we're to and reasons our our last position not all is parties But the the weren't in will but there event able

Durgesh Chopra

confidence Understood. year go of with you know question a if frame you expressed the X into I have on you numbers. here just for a in had healthy any, XQ. you XXXX. used? lot of level can Obviously, contingency, in of might And contingency what us but level then [indiscernible] just you weather maybe Maybe milder

that bucket us much for how still just of left? contingency is maybe So frame

David Ruud

Durgesh, this is Dave.

things contingency make sure for we go that work quarter, the -- weather, we're a where we see did we that the rebuild also if first it. and we do -- good year, see. you did we for what we some lean need to have away then will can weather need we invest to we As we we year, our to last to came in we the make as into so summer. And And doing to that see deeper But weather. in saw can have position can we've as and done right and then then

when going weather So in summer, that's a and for into real us. we're the the fine position will happen

Durgesh Chopra

Excellent. I well... in XXXX as confidence appreciate it. High

Operator

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

Andrew Weisel

could I question a differently. O&M If bit ask little first that

you pretty to the sort that would mode are first as you winter year? last asked, is, partly XXXX? some guess I obviously, year are the rate I levels? it given Or from the is were question You winter in aggressive would mild soon started, last catching Or of and the lean you O&M reversed the you're and of I say as the case up the way still already quarter. weather, year given mild in normal again, back last word

David Ruud

Andrew, start storm the lot than year in but We first feels different a had year, this last weather the year. quarter last saying by in too, rate the we had case. I'll also

a needed year. So position across company very year. we last achieve different this did what to in we we the do were And to a lot

were continue naturally but those year, this from those most into for all onetime savings the of Some reductions part, year. last

deliver continue invest efficiency and our is I we're as what productivity say our putting ensure manage improvement, needed into efforts we back to to lean affordability we're customers. our on So and as going normal into and place would for

normal efficiency improvements. So the I'd DTE and productivity of say it's into more mode

Andrew Weisel

a should on? you expectations the when with full than a had that year small and Or little the to that note Was goes Corporate taxes. and negative Great. of you that fully in there's to The at have And line one. the -- gave offset you that one then And related guidance? hear. timing is it's earnings Okay. trending budgeted? year as very Other, Good differently your

David Ruud

That will too. year reverse the budgeted it, consistent the what all by is of with end and we all it

Operator

line Your Wolfe next question Sullivan with comes from the Research. Michael of

Michael Sullivan

the I goes wanted that a this aspects deeper to storm on that, rate was hit you is help. the guess a And you from original and of you that enough do any couple does case? then out in guide? color that space year, through? a of the And had do to chances would it. help in think think I been to need would IRM, place ramping what have cases? If that up cost kind on little through can there, last to Sorry, more some have nontraditional the put bunch of a tracker, maybe the in you future? are how that dig position the that the case iterate last on cases but much Or

Joi Harris

Yes.

that So support million. happened some think balance the we'll that that year. a lot I it? If conversation year, the get we'll you're good the would think that on. the were quarter Certainly, helpful. first yes, I of have in place been given support. tracker, last for cost that chance we Do $XX is throughout early the there's the of around that get a There first question the and then experienced storm in

how get. intervenor with shortly to and aligned I actually know way of and think schedule is here come the much and the we type testimony we're pursuing will consumers this tracker. And staff see by start in once of support we we'll more set testimony,

the for think think take think, several a arrive that to rate cadence And future that it's of of I rate that in keep IRM? capital. it years $XX million will it XXXX terms I execute now. worth I worth plan, certainly well 'XX. Do us we're I at, for in have XXXX, the and XXXX, of us million to Previously, on to positioned to and filed million that the for out XXXX of cases? ramp. In what's $XXX we includes will and us IRM $XXX 'XX the continue in our For in grow then capital. think, for And in and to we have right achieve, million had will case we delay $XXX IRM, 'XX have plans order

Michael Sullivan

Great. Okay.

of all that planned quick And unplanned, it then hit -- if plant You one. or outage them. And unplanned? just one is it at it is resolved? was was QX, Vantage in renewable The

David Ruud

was year It unplanned. actually last it It and started resolved. is

for So rest the online it's back it's coming -- the year. of

Operator

with Karp KeyBanc. Sophie of line the from comes question next Your

Sophie Karp

the industrial that would load give put could of maybe data like on pressures I automation you as customer come guess, you, including do that. just here? cut you sense few years, could Is how wondering of Like you I'm see on us impressive you build an be for next big rate more plan that's customer have and factor, in going a to with with right? Longer bill to a over And current Or picture into increases term, sure the cases some kind account maybe if investment an rate that? I if growing would talk OpEx? what centers? you some big offsetting little picture, guess, was there's I bit that pretty offset

Gerardo Norcia

for I Well, are transformation we thanks at undertaking question. DTE. say, I a historic the here would Sophie, mean

way in billion way X-year plan, in well over you X about more see XX% our produce and our wires can business, our also we transforming the As the capital deliver continue plan the of underway. we're directed the the years. And natural capital at $XX and way it next we we we deliver our think energy, as X way we we that's with than gas, transform to have utilities, power

well of see extremely to our national you the Now below our with being bills average. residential perspective, in can well positioned terms affordability customers we're

from the and start creating we Our will that's goal that's maintain to at for cost transition investments reliability is, help to as pointed to operating costs described, example, And way that We'll position. as reduce that reduction. example. Even that wires as cost And we will just cost, are lot the improve to continue significant that costs of the our a trouble maintain that fundamentally in position this one and And assets start these to renewables, will see storm business. gas finance electric is reductions, natural decline. coal you well.

benefit CapEx obviously lot the yield of to of our will So transferred which operating our a costs, lower be customers. will

lot several that as industry revenue look land the need we discussion to we of of and a terms help done. In in forward, legislation start will centers. those to growth, enabling see of we we get as that opportunities about Certainly, data

bit, And encouraging. more is or EV EVs bear. on quickly General the track President EVs which to X,XXX models down a month see see a their to big though a bring we a as I on heavily of at growing, the working here, matter a here call X still and slowed connecting we're also testing Milford. just We of new here he Motors. even And with fact, video they've And we new that see was was

lots on of EVs and bringing new activity still So development those to market.

these So I some finance we'll see of think that investments. help

So years. billion $XX over summarize, the next I X next say just years, very would capital agenda, over X the significant XX billion to things, $XX

of investment excited an should a moderate help you opportunities you're time. investor really and if this long-term of So over the fact about that be will DTE, investment lot bills

Sophie Karp

about of right? to on the to to helpful. kind Is very also guess how wanted should keep there have? want like earnings businesses So a the business, this in That's to thinking to let I beyond? relative size Vantage, think is extent that quick that I utility a you ask what you go Like the you like question certain it them you not keep it your of contribution there? under we

Gerardo Norcia

And But that's give look high-quality low want that XX% at as returns. growing keep we've forward. and less thesis contribution grow working with that, utilities And risk at -- as investment we been our high pursue there to quite we us or opportunity of well. investments Yes, well. XX% continue is Vantage our the to we does quickly are want earnings it doing and so to than less out it that to

Operator

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

Agnieszka Storozynski

remember and the retirements So grid discussion case. still self-generation. approach always was on versus coal that's about past, this to just hope wondering, I were reliance you of was plant guys I an always It impression the the that power. there long in your

things. So just X

dispatchable seeing comment that chance for like to are going two, ] in I'm of as in any sort As make incremental you're to of I of the could would existing I customers? actually growth that your would increase improve growth utilities affordability necessarily long changes Or power the other an simply it Again, centers, ] generate? accelerates we're said, and to the number [ and electric without earnings? [ long pickup that a resources, attract feel long any that importance as bills And we be assuming cognizant of data more is earnings. this there

you it envision your I'm given so just And footprint. wondering how generation

Gerardo Norcia

Great Angie, them take time. I'll at question, a one

in plan. So you margins, as our last part facility retirement we've with our operation filed terms margins of built move plant our we of retirements. filed up know, we as combined reserve as we IRP, that coal through coal when a adequate reserve DTE, in state-of-the-air cycle And plant that's

will plant 'XX frame. continue Belle natural to dispatchable the happen -- That power converting time a a River from are and the be gas, will be We which plant. dispatchable to in coal 'XX

on battery to provide will embarked storage, we've addition In us that, dispatchability. short-term which

all between fits So that of That well. now the and extremely portfolio into XXXX. works

and plan our the IRP. pursuing generation. is near near carbon we technology in when need what by next storage, end there As dispatchable current will more natural coal we're that -- the of can with completed we gas of capture And we phase exit IRP use to where and we want to highlighted the that build XXXX, we

continue available from be resource present generation a itself and hydrogen do as in will exit That also as resource. should our see our we burn coal. to fuel we more dispatchable future So plant viable hydrogen

see like looking generation we What In terms -- operations. accelerates, that will we is some growth be build data need for of of be to will -- there at, centers, need good cannot are the power very growth, and example, growth That we're this question. if cannot and interrupted. that that XX/X

so we And -- XX/X XX/X and need renewable will dispatchable generation resources. dispatchable more

it such itself. present the for should will again, have demand potential IRP accelerating does mix. It So next our be a

to actually degree. for investments and a will expect terms customer impact to some provide customers, In of pay benefit bills to themselves those we that

and our typical the in our will be rate that's as investments very possible. returns. investors because will It attract those for position So they'll add and that going-in see we also base, value

it's think around. win-win a I So all

Agnieszka Storozynski

the based potentially we talking materialize? on Are we would And like beyond? your XXXX wondering incremental this how could impact? and earnings load I'm soon discussions, see just when

Gerardo Norcia

in positioned. load again, And gotten too we're that it's I are will of about. Angie, of conversations, really think sizable They But we're haven't to But in far are early that just as well very terms earlier mentioned terms tell. timing, the come. These yet. we I that talking early. conversations

here pass data the that tax. That's considering front happen. use and Michigan That sites catalyst deal the should some Michigan that legislation key them. are investing the in we in for the needs that at of be think to this centers I considering will put of on big and a sales

We expect that with year, volatile to a election know. is But happen it hopefully you year, this as an summer.

Operator

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

Travis Miller

to was answered You the and topics hoping discuss of I most questions hit. most my of

So just you're real there bit? a either this pick up quarter know that. small quick, residential where up. demand commercial for small I residential But was to seeing plan anything relative notable or demand -- saw is commercial I relatively it like looked little a

David Ruud

consistent did expecting see year, we well last to I for probably come quarter-over-quarter. Yes, residential it say and the year. on with pretty up we're would in plan that

to last We lot year. together energy of we and that be do have of efficiency work the a fairly flat kind and and growth will

Operator

Jerry remarks. to go Norcia I back turn now ahead. Please will the closing call over for

Gerardo Norcia

in our for everyone, customers course, value our morning. for our that of XXXX investors. thank for providing I'll plan and confident Well, we're beyond great and us joining terms you, Stay by a stay safe. healthy, today. and And of that Have about long-term saying really feeling close

Operator

disconnect Ladies today's and all your gentlemen, that you you now may concludes for call. Thank and lines. joining,

DTE Energy (DTE) 25 Apr 242024 Q1 Earnings call transcript