DTE Energy(US:DTE)2023-04-27 19:09Financial Data and Key Metrics Changes - DTE Electric earnings were $101 million for the quarter, which is $100 million lower than the first quarter of 2022, primarily due to storm restoration expenses [78] - Overall, DTE earned $1.33 per share in the first quarter [80] - DTE Gas operating earnings were $171 million, $25 million lower than the first quarter of 2022, impacted by warm weather and higher rate base costs [102] Business Line Data and Key Metrics Changes - DTE Vantage operating earnings were $27 million in the first quarter of 2023, a $13 million increase from the first quarter last year, mainly due to higher earnings from renewables plants [79] - DTE Gas was affected by warm weather, resulting in a variance of over $40 million quarter-over-quarter due to weather [102] Market Data and Key Metrics Changes - The company has invested $5.5 billion over the last five years to rebuild infrastructure, with significant improvements in reliability observed in areas where focused work was completed [67][69] - The company plans to invest $9 billion in the grid over the next five years to enhance reliability and accommodate increased demand from electrification and economic development [70][74] Company Strategy and Development Direction - The company is focusing on strategic investments in grid hardening, tree trimming, and automation to improve reliability and reduce outage durations [70][72] - DTE is also pursuing undergrounding of distribution systems and has requested pilots in the recent rate case [71][162] - The company aims for long-term operating EPS growth of 6% to 8% through 2027, with a robust capital plan supporting this growth [106] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by extreme weather events and emphasized the need for continued infrastructure investments to ensure reliability [66][91] - The company is optimistic about future growth opportunities driven by economic development and electrification trends in Michigan [120][140] Other Important Information - The company has been recognized for high employee engagement levels, which are seen as a key driver of success [64][88] - DTE has committed to a $1.5 billion investment for an innovation campus in Detroit, which is expected to enhance economic development in the area [98] Q&A Session Summary Question: What was the impact of storm expenses in the first quarter? - Storm expenses were approximately $20 million, with total after-tax impacts around $70 million due to significant storm activity [110] Question: How much contingency has been used up and what room is there for flexibility? - The first quarter's weather and storm impacts were significant, and normal weather is needed for the remainder of the year to meet guidance [111] Question: Can you comment on the RNG business and competition? - The company sees promising opportunities in RNG, particularly in converting existing landfills, with attractive returns expected [137] Question: How will the departure of a commissioner affect the current rate case? - A new commissioner will be appointed, and they will have the opportunity to weigh in on the current case depending on the timing [162]