Funding Incremental CapEx
Q: How will you fund incremental CapEx?
A: DTE's strong cash flow and balance sheet allow capital investments with minimal equity, thanks to cash from the IRA and tax credits. They anticipate equity needs of $0 to $100 million through 2026 and aim to keep FFO to debt at 15%-16%. While they value their Vantage business, they may consider asset monetization if it creates incremental shareholder value, but they don't see that need currently.

Potential Sale of RNG Assets
Q: Are you considering selling RNG assets?
A: DTE appreciates its RNG assets for their strong returns and cash flows but remains open to selling if it can create incremental value over their long-term plan. They are in ongoing market discussions but currently don't see such an opportunity. If circumstances change, they will act on it.

Vantage Business Tailwinds
Q: How do tax credits affect Vantage's growth?
A: Tax credits from the IRA are providing tailwinds to DTE Vantage's RNG and Custom Energy Solutions businesses. This offers more flexibility and confidence in achieving 6%-8% growth, but they will discuss specifics for 2025 and beyond at year-end.

Electric Rate Case Settlement
Q: Can you settle the electric rate case?
A: DTE aims to settle the rate case but acknowledges it may not be possible to bring all parties together. They're confident in a supportive outcome even if litigated, as the case focuses on investments in infrastructure to improve reliability and transition to cleaner energy. The proposed storm cost tracker of $65 million could help manage costs; if it had been in place last year, it would have been beneficial. They see a good chance of support for the tracker and are aligned with consumers in pursuing it.

Data Centers as Growth Opportunity
Q: Are data centers a growth area?
A: Yes, DTE is positioned to serve data centers with both their utility and Vantage businesses. Michigan offers attractive conditions, and they are engaged in discussions with interested parties. Legislative changes on sales and use tax exemptions are pending, which could catalyze this opportunity. Serving data centers may require building more dispatchable generation, potentially accelerating their IRP. Investments would benefit customers and add value for investors.

De-risking 2025 and Beyond
Q: How are you de-risking 2025 and beyond?
A: DTE started in a stronger position this year without the $200 million headwinds from last year. They're deep into 2025 planning, aiming to improve headroom, with rate cases focused on capital deployment for infrastructure. They feel confident about their 2025 plan coming together.

CapEx Updates and Legislation
Q: How will new legislation affect CapEx?
A: DTE's updated 5-year capital plan already reflects the IRP settlement and recent legislation, leading to a $2 billion increase. As they plan beyond this period, they anticipate incremental investment opportunities arising from the IRP and legislation.

Contingency in 2024 Guidance
Q: How much contingency is left after mild winter?
A: DTE had contingency for weather and is in a good position heading into the summer. They rebuilt where needed and can deepen cost-saving measures if necessary, maintaining high confidence in 2024 targets.

O&M Levels Returning to Normal
Q: Are O&M levels back to normal?
A: This year feels different without last year's headwinds. Some one-time savings continue, but DTE is back to normal efforts on productivity and efficiency, employing lean practices as needed.

Offsetting Customer Bill Increases
Q: How will you offset bill increases?
A: DTE plans to maintain customer bills below the national average despite significant investments. Investments in infrastructure and transition to cleaner energy will reduce operating costs, benefiting customers. Growth opportunities like data centers and connecting over 1,000 EVs per month will help finance investments.

Vantage Business Size Limit
Q: Will Vantage's earnings contribution be capped?
A: DTE aims to keep the Vantage business at 10% or less of total earnings while pursuing high-quality, low-risk, high-return investments. Rapid utility growth allows continued expansion of Vantage without exceeding this threshold.

Storm Cost Tracker and IRM
Q: Will the storm cost tracker be approved?
A: There's a good chance of support for the $65 million storm cost tracker, which would have been helpful last year. The IRM includes increasing capital amounts for future years ($530 million in 2026 and $720 million in 2027) and may help delay future rate cases, though it will take time to ramp up.

Vantage Renewable Plant Outage
Q: Was the Vantage plant outage resolved?
A: The unplanned outage started last year and has been resolved. The renewable plant is back online for the rest of the year.

Residential and Commercial Demand
Q: Is demand picking up?
A: DTE saw a quarter-over-quarter increase in residential demand but expects annual demand to be flat compared to last year due to energy efficiency efforts balancing growth.

Timing of Incremental Load Materializing
Q: When will incremental load appear?
A: It's too early to tell. Discussions about sizable load additions, like data centers, are in early stages. Key legislative changes could accelerate this, with potential developments hoped for this summer.

Approach to Coal Plant Retirements
Q: Will you change generation plans?
A: DTE maintains adequate reserve margins during coal retirements, with plans for dispatchable generation like converting Belle River to natural gas and adding battery storage. Future growth may require more dispatchable resources, potentially accelerating their IRP. Investments aim to benefit customers and investors.

Negative Earnings Due to Taxes
Q: Were negative earnings at Corporate expected?
A: Yes, the negative earnings due to timing of taxes are consistent with their budget and will reverse by year-end.

Partial Rate Case Settlement
Q: Could you pursue partial settlement?
A: Yes, DTE is open to partial settlements, but even without a full settlement, they are confident in supportive outcomes.

Renewable Energy Plan Details
Q: Can you share more on renewable plans?
A: DTE's voluntary renewable plan, one of the largest relative to company size, is exceeding expectations with 2,400 MW signed toward a 2,500 MW goal over five years. They anticipate updating the plan as they approach the goal and may see additional opportunities if the IRP becomes more aggressive.

Managing Contingency After Mild Weather
Q: How are you handling mild weather impacts?
A: DTE manages exposure by rebuilding contingency plans and can deepen cost-saving measures as needed, ensuring they stay on track despite weather impacts.