DTE Energy(US:DTE)2023-02-23 18:52Financial Data and Key Metrics Changes - Operating earnings for 2022 were $1.2 billion, translating to $6.10 per share, marking a 10% growth from the original guidance midpoint for 2021 [28][56] - DTE Electric earnings were $961 million, an increase of $97 million from 2021, driven by a non-recurring $90 million pre-tax tree trim deferral [54] - DTE Gas operating earnings were $272 million, up $58 million from 2021, attributed to base rate implementation and cooler weather [55] Business Line Data and Key Metrics Changes - DTE Vantage reported operating earnings of $93 million in 2022, a decrease of $83 million from the previous year due to the sunset of the REF business [55] - Energy trading earnings were $14 million for 2022, lower year-over-year primarily due to the performance of the power portfolio [55] Market Data and Key Metrics Changes - DTE Electric's grid operated without incident 99.9% of the time in 2022, with customers experiencing 21% fewer power interruptions compared to 2021 [25] - The average outage duration decreased by over 40%, with some areas seeing up to a 70% improvement in reliability [25] Company Strategy and Development Direction - The company plans to invest $45 billion over the next 10 years in its two utilities, focusing on infrastructure renewal and cleaner generation [32] - The integrated resource plan aims for carbon emission reductions of 85% by 2035 and net zero by 2050, significantly accelerating from previous plans [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 7% growth in operating EPS for 2023, supported by distribution and cleaner generation investments [31][61] - The company is implementing one-time O&M actions to address challenges from the recent rate case order, including delaying hiring and reducing contractor workforce [60][76] Other Important Information - The company has a strong investment-grade credit rating and has increased its 2023 dividend by 7.6%, continuing a track record of over 100 consecutive years of paying cash dividends [70] - DTE has little to no equity issuances planned, focusing on maintaining solid balance sheet metrics [70] Q&A Session Summary Question: Changes embedded in the reiterated '23 guidance - Management indicated that they had adequate contingency in their plans and anticipated headwinds from interest expense and inflation [69] Question: Interest rate assumptions and refinancing needs - The company has incorporated increasing interest rates into their plans and has entered into floating defects to mitigate exposure to interest rate volatility [79] Question: Regulatory strategy and rate case filing - Management emphasized their intent to pursue settlements in both the integrated resource plan and the electric general rate case, with a history of successful settlements in the past [88] Question: Vegetation management and O&M cost execution risks - Management highlighted a significant investment in vegetation management, with over $200 million planned for the year, and expressed confidence in executing O&M cost reductions without impacting safety or reliability [95][98] Question: New industrial load and economic development - Management noted significant economic development activity in their service territory, including new battery plants and hospital investments, which are expected to drive growth in electric load [106][109]