DTE Energy (DTE) 25 Jul 242024 Q2 Earnings call transcript

Good morning. 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 Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Matt Krupinski, Director of Investor Relations. ahead. go Please

good and Thank morning, you, everyone.

get you remind we reference forward-looking like Gap], to read the to I'd to statements. safe the Before including started, harbor [Audio statement

includes to the of is also Our in earnings, earnings to reconciliation to the measure. refer financial appendix. GAAP which presentation Please a references operating non-GAAP provided earnings operating

now over With morning are Vice Joi Jerry COO; and President Ruud, the us morning. Jerry Executive CEO; call it this and and President I'll to start And CFO. Harris, to Norcia, Chairman turn Dave this and

and targets year, all Thanks, how safe. discuss joining the stakeholders. capital year as the for we things achievements as this the affordability. update key This to everyone will our through continuing morning, summer Matt, I enjoying deliver our will I DTE good and first we for highlight is everyone, and hence is Dave Joi half made and reliability to the of morning, an have we you and with us. on focus wrap to financial we while on doing, provide And work thanks up of as grid questions. track agenda and continue of the healthy staying achieve hope before great take build we your investment a on are provide our future continue will customer update the to

very of year. on strong this targets Let And half the our We to are a first great across me start position in on deliver Slide had X. we XXXX. a company

And employees. for our as the deliver commitment that efforts engaged communities. of a I've our starts Our result times, success is our and with to of said highly many customers

their engagement. innovative of the well-being. continue XXth proud engagement. in year, and in of our by well-being employee a for and our were We confident mentioned for the commitment the award work award employee was the Great with Gallup row. team why for Best This This health am our I health recognized to As I also year and Workplace and to outstanding Award Employers for initiatives advancing communities. excellence this of for team customers awards is our earlier culture we companies the recognized receiving engagement identifying of am equity I our recognized these that through for importance being an effective receiving engagement

has improving is our our is reliable our we to storm the restoration customers team providing great XX process. as and is of support the we key our customers of had fastest we safe customers for our work done this great that areas why our paramount one through in focus service progress storm. fronts this after a face as hours with on restoring which success, front some XXXX achieving have to within Our year company's restorations We work towards made that all evidence storms year,

We heat, temperatures also month. had last service for hit consecutive our days a degrees period XX extreme territory where X in of

XX that Michigan. proud the X,XXX to across of of very even our community cool of but nonprofit time. number distributed one Southeast had these conditions, system of care take a we our of of hundreds years. have to bottles ways water This longest was that nearly up efforts deliver in in XX the and agencies team's We under DTE to ways customers proud in last well partner customers fans keep our agencies to held extremely key more I'm I'm

recognized for as wallet intensified. serve, the in most with we to and the are United the partnered rides where supporting vulnerable service. pride our checks complete We cooling to and heat In Way VP our provide addition, centers customers live XXX to to [indiscernible] help X,XXX communities keep Foundation the customers and nearly take we for

as well As testament to to honored is this which points workforce to community-minded Academy, in This benefits named light, academy's at seventh the program Rapids training a team development area. to that award presented an [indiscernible] DTE recognized the program with partners for are ] Efficiency supports Grand successful as is to the more by most on our like home expanding I'd building consecutive local receive we Detroit, while advanced our of works award. it Detroit, year. the year, nation. also growing highlight repairs in in [indiscernible] Civic was a And XX [ of first the the DTE's in further the demand also as for be planning companies the Energy building

This a majority a targets in position in working Financially, secured to have and the deliver energy we those help program of industry on great are has great earnings employment. been interested this participants to full-time our year. the in

along we premium remained generate at to EPS improve with our guidance this the further Our in and And outcomes. the rate to operations XXXX X% to cleaner as it sheet our than financial deliver importantly, flows will We us shareholder transition capital from and strong balance expect. strong health, have to by committed generation. more credit And investment returns is And cash Again, which above constructive investors long-term that continue our strong ability we reliability to our the cash our to to for remain made operating operate, constructive regulatory significant for a come we growth. X%, customer-focused to the base possible ratings we invest to support customers. investments only with are invest the environment original regulatory plan. supports allows making have

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

as and long to our we guidance continue As full achieve on we XXXX are as I results in deliver well Gap]. year throughout mentioned, XXXX, [Audio we in are ourselves our positioning term Gap] [Audio strong track to

continue for On and the constructive we Electric outcomes progress Gas. to regulatory front, DTE case to rate both DTE

smarter, of and investment grid customers our future plan the customers. to underpins filing to step important electric This affordability investments generation focused the a and case rate need stronger, resilient build to we further cleaner outlines our while to generation. achieve transition in cleaner for the long-term transform grid next our maintaining make electric more reliability the to Our

intervention parties working Gas, in gas with the expect tomorrow, our the minimize rate further we case leaks scheduled final to supports and our of which DTE important the electric to all case in together At continue costs. forward and will We reduce the to look [indiscernible] infrastructure, order renew filing investments necessary January.

in intervening We a file with prior to are scheduled discussions November. parties in order

this the significant progress efforts detail reliability strides Joi our continue year we benefits but automated electric [indiscernible] provide I'll automating some we are just last our a work. installed mention this will of area, make up hundred making we of ramping our We this are and the the in and this on year, in couple reclosers are to seeing We year. effort efforts in system.

impact the energy To former XXX-megawatt ground to in at system for cleaner we short first and storage Channel project closures is It from on can year the last highlighted the power customer in over we a call. is in the reduction make our new on integrated in zero alone. battery operational the statewide a minutes will that with customers. the supports broke have support plan to operation carbon This project quarter energy of Trenton outages of This demonstrates XXXX the storage project of the our month, [indiscernible] work Lakes generation, perspective, the these installed advancements our the move resource We'll be impact improving and already we of devices goals. be Great time hundreds thousands battery stand-alone site system of reliability the the as the plant. good largest automate this both in storage energy net Michigan's which align significant in region. very the The XXX,XXX to target, DTE's saved

our in see voluntary to continue Electric. We strong at DTE program renewables growth

curly program main continue X,XXX system. to we megawatts subscribed gas nearly carbon program our we customer subscriptions. capture projects. as At renewal gas the Power advance Green DTE to and My solutions, XXX,XXX residential DTE energy Gas, transmission And and nearly we modernize Vantage, progressing on Our custom sequestration at continue and R&G are has

year Energy fee in and underpinned earlier go plant fixed Motor contract into Ford We this new Ford's highlighted long-term support Company operation The a to by scheduled is the Custom is project to Tennessee. Solutions later project year. this

expected We RNG is project also half to service began into in of that the second go on construction an year. the

Let's DTE move how is to X highlight well Slide growth. to for positioned

of thousands companies [indiscernible] investments a Ford territory, continues and that contribute economic attracting region significant be residents. into University and our progress including among development, Motors, putting providing Henry the service large its large many the state are economic to Michigan companies of Health of for Southeastern and provided General development major our great to jobs.

to collaborate to growth, centers. the partners business state drive throughout economic target data battery continue and of particularly the key in areas We further manufacturing, to with hydrogen segments

you all the impact As data focus well an centers. development has last important is center over year. to and been of the DTE positioned potential data serve [indiscernible] know, the very centers

operating we they legislation discussions all ensuring good in sales fall potential to willingness subsequent data these of exemption would for periods. projects centers, expect governor to which sign the development cost the in a and of our in are the as that with Michigan lower tax these great number on desk, We and indicated and a bills come or has customers use opportunities of are customers. [indiscernible] our

customers, wrap I'll be just continue XXXX my the well comments, investors. to we to very and now positioned up say into for to our are and about and continue So deliver how excited in our it I future communities our to

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

long-term the everyone. us of be front and you Thanks, significant we all Jerry, our good in continue opportunities as to today on are in transition cleaner reliability with to that morning, happy continuing X make of to our excited for improving our we generation. here start customers I'm investments I'll for and have our a difference to systems, in really capital investments Slide plan. review that and making

impact of strengthen experience. Then having with our how some grid I'll our commitment to customers' you our really is provide examples an on

for next on $XX the make X we capital about investment [ to million slated Over investments of track significant businesses utilities. our are our with [indiscernible] $XX our across billion ] years,

grid on our can are ensure and to reliable energy. affordable safe, to modernizing we provide We focused continue

we the My clean way renewables investments towards voluntary are continues program our produce to the energy country. natural largest from coal transform power also part of to significant transition renewable the shift in away program, An important and green Power, making we gas generation. Green as and is We our be

our continous Additionally, strengthens all makes culture energy drive cost DTE to focus natural for sources coal helps of reduce important main which from distinctive and on gas our utility, sharp our fuel affordability, at diverse to infrastructure also mix to investments as and flexibility gas future continue these work, improves reduce to management savings gas and to a emissions. greenhouse and our advancements. and cleaner using The customers. well, further costs allows maintain helps renewal us we our customer energy reduces our costs shift with to technology O&M

And Vantage. supported enhance finally, renewable further to to customer continue our and growth us to opportunities is goals helping by DTE IRA, transition for affordability energy achieve at

X, how improvement impact Slide our improving it's making to in move Let's experience. an the and work customer reliability

We a the building the progress lot on future. making grid are of of

as We our for X work we reliability customers. areas are improving progressing major in on

are smarter we a First, transitioning grid. quickly to

entire devices installing mentioned, within our senses can pinpoint during the so most an And we restore isolate These system line our perhaps system deenergize And a these repairs. customers adding automated to issues technology by of it wire effectively crews a while the keep are customers we minutes us important, Jerry many significantly automating ground, safe. XXXX. devices by fault XX,XXX to reclosers helping more our our outage. as allowed power reroute such will to and or when smart automatically make devices, As on

Secondly, aggressively we infrastructure. are our updating exiting

other and replacing are transformers upgrading cross-arms, poles, and substation and pull-top We equipment.

[indiscernible] alone, equipment We than across our pole are X,XXX making we area. miles. top more year Last in aided great this progress

customers in average, an reliability Our experienced [indiscernible]. example hardening this in great a the year is XX% of On program first Detroit improvement work.

rebuild is grid. our third portions to significant focus The of

While a also is completely updating certainly we oldest equipment it's this examples portions rebuilding work you having. the of significant of is where impact our I'll happening, give important, few are grid.

durable projects and million new XXX We equipment. substations X Detroit infrastructure seaside. are more projects investing X $XXX involve miles in over overhead constructing replacing of with approximately These and on

our and pilot, We Detroit gas achieve for electric improve These undergrounding can on we're also are as that this gain inconvenience we in time both upgrades doing the cost and of reduce cost pilots same have an critical our and ways [indiscernible] In to bring forward. savings at customers. processes down to meaningful undergrounding. move the

also This projects impact. work executed of a areas service Customers Detroit this in across these on outside our have [indiscernible] a where significant rebuilding we've having of rebuilding increase We work. reliability number a on is territory. XX%

remains finally, without to we as tree focused are power our date, this heavily half the account improve improvements significant experienced reliability. our time one remain them Trees trimming to methods And areas reliability. in the of of where terming some efforts most on effective and customers is for up true in of

expect year. of trimmed the of end tree on have to miles trees we We have our system nearly by a XXXX, entire XX,XXX X-year next trim since and cycle

future investments. journey our the over [indiscernible] our our our building So finance to we to to you that, data. as plan you turn give through can to necessary our grid improve Dave, see, the I'll service and With doing distributed of our out intense customers, customer lays to focus are it

good Jui, everyone. morning, and Thanks,

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

a top Electric million quarter. variance main 'XX. drivers of warmer base for rates by of million reported in earnings detailed the EPS appendix. of is page higher with costs. review DTE offset higher find quarter to the a including can than start This will the earnings actually reconciliation rate by the the $XXX the The our breakdown at GAAP segment, I were utilities. of base $XXX of earnings were You implementation and second the

DTE warmer earnings Operating by Moving by million costs, were base increased from on of $XX the partially the quarter XXXX, weather second and than lower higher driven rate IRM. Gas. revenue to offset

our third Operating [indiscernible] the Let's $XX items move of solutions $XX XXXX. from due XXXX onetime and decrease businesses. primarily million is and combination This on were for timing energy a to Vantage custom to in row. million earnings DTE steel-related a of

to We year by R&D second driven of the projects the for the of projects guidance full of continue earnings new solutions Compared Vantage. to the half higher. notably online in our energy our portfolios in in that year. is half be will be highly and XXXX, confident some at shape the first and come half for earnings custom This second

last a primarily On of with see next the This Energy Trading decrease million the of finished portfolio. to gas you quarter due million. $X row, the is performance earnings from can $XX year, lower physical

first portfolio. continuing margins and experience half our strong really our stronger as performance we are strong to through the of the We realized results year gas in contracted portfolio physical power in

experience upside With these margins, should for stronger contracted we at Trading year. Energy some the

However, for business. this conservative guidance are maintaining for we now, our

the Other of by Finally, per balance the the quarter-over-quarter guidance the year $X.XX Other quarter. earned taxes, and Corporate which year, Corporate range second our favorable $XX to through for share Overall, bringing million reverse DTE due timing the within full of was in us and current will segment.

and we of a targets XXXX. we year, the in Jerry are to half achieve our As well had first said, great positioned

deliver ourselves through and results to in plan. our are long-term we position continuing to strong to Additionally, work XXXX

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

utilities to equity As issuances our into discussed, reliability heavily customer-focused investment issuances cash through the supported $XXX is move from cleaner which we appendix. by in improve invest Joi minimal we have as our targeting need still generation. we cash to on and robust of continue in shown plan toward operations, to XXXX. slide Due cash is strong and our to to annual This flows, capital are these guidance million our zero

our better manage with We've capital hedging other the refinancing issuances eliminated rates to debt active rate than beyond are Our our EPS plan and our of issuances future what interest interest risk debt we long-term to is to XXXX our target. we operating XXXX plan X% long-term issuances new had growth all-in at X% that in rate And program an that financial mitigate consistent incorporates opportunities investment and plan. continue variability. and through fund

for in of eliminated at refinancing nearly rate the half on XXXX. company example, the So needs debt risk have we parent interest

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

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

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

The customers development and original our the territory. the robust operating continue need guidance service execute guidance our we capital reliability growth DTE investments is supports to XXXX transition provides on XXXX midpoint opportunities to to plan on increased as generation we Our over affordability. to midpoint. as EPS for improve focusing while positioned well critical make X% cleaner load in serve customer

X%. growth operating continue EPS to we long-term target of X% And to

shareholder well plan. you have us investment expect, sheet that, are come the joining total can that questions. positioned to and balance today, a capital investors We to future strong for premium I our with our that deliver thank for we the returns open supports With line

[Operator Jeremy Instructions] of JPMorgan. the line Your first question comes Tonet from with

the negotiations up, guess, the this with fruition share with of might negotiations see, I sales lack to just any and use you background want coming guess, able conversations and or legislation these line to I on point. clarity be regards tax of conversations to you hyperscale updates pick developing of the with at to on I given time Michigan and how prior I guess,

there's is to would And still conversations the -- effort. engagement Senate the legislative -- the a think expect process, done happen comes the still this in fall of say to if but it spring, to results for I bipartisan legislature sign the the there this would and sometime awaiting I but strong get with hyperscalers target still overtook the strong they that and the kind are the We parties. a the strong very willingness very by of balance and -- both was budget multiple to targeting the or I say Jeremy, continue. there's which we in we're and that of interest year. that indicating desk, it deliberations governor And House support,

think as serious as happens, more traction soon data I little some centers. on I to we'll start a So that get think landing

we the very kind to, helpful there? and results quarters? quantify there. was And expect should the bit taxes the a turning future that the that Got be That's the some curious to just might of it. of able to there. other, guess, I corporate in then I impact and you quarter of reverse in of And more timing

the reverse as Yes, of This go. tax Jeremy, that adjustment. an we -- taxes this will is really timing effective Dave. rate is

the adjusts we consolidated the it the does annual will tax So year, and end come the tax year-to-date the think end. for what it income to at zero expense of rate be at

So from we some that through did we favorability $X.XX quarter. about the year. see the again of go adjust in as that will

Got helpful. it. very That's

last X X Just for me. quick

from If you second we quarter and share might equity for tax here? be able color the earnings, advantage about how came that, I guess, to much how should think trajectory any

guidance $XXX bit as the to well related there. the we millionthere. Yes, through A that tax as I confident guidance million the But that lot comes in back-loaded our year lot quarter. there year. year. full was we -- advantage half a second see advantage tax-related and there a ITC -- we're confident really We of little project will of have that We're second really will in our it half second really $XXX or we're can you the in -- go is was wasn't say anything be PTC in through the through

incremental how will for Got happening over the and to flow regards about type any just think other of and Trading, activities last is you there or the there it. of model time. can kind with how X ebb that Energy actually And That's really X provide outside helpful. on color good.

Yes.

we're X for really the quarter there. the year off that's to areas. our Power driven And far, One saw a You is start in so really strong portfolio. and FRS by

that and the end expect that is contracted the shape shape able So of take well, some the that, do. to should we and we we some gas contracted these and and of we're to through year, And also. there year. And through are are will hedged have advantage increase as portfolio, that a hedged then contracts our those it positions those of structured there

the our So -- the half. we how plays right and very for now. first the We're works year how about good that in the with you to half see really we first had out want year the through see Energy the But year. have weather Trading. on as a go summer, we it did guidance of for good saw, But rest of a

so to some -- multiyear year provide And continue contract we benefit of at well. our high-margin margins this the -- these expect and sometime future high into that of some are those contracts, beyond as

Shahriar comes question Pourreza next Partners. line from of Your with the Guggenheim

kind What case the guess tomorrow. real kind take on again, guess I provisions overall the juncture, parties rate a for be I help to of it's about quick a will you the you opportunity off unchanged. feel, settlement are testimony. once remain it's are thinking Just testimonies path? early there how a partial nonunanimous of the filing. in or Do want an table. whether issues Obviously, settlement mechanisms to innings, and at after litigate The this

Yes.

this contested in there regardless. of case, to If we we in a anticipating outcome lot ability if testimony obviously, our settlement interveners receive get settle. to are we are settle, we feel to don't like But settlement, confident constructive we'd pretty But increase. So a a of not, our chances can tomorrow. if

the it's seeing our for our testimony pretty commission that And to straightforward need and improve we hope is to that that the case. it's So strong in reliability regard. It's we a invest all about pretty customers. testimony capital the in

half? settlement the rate Any proposals as it. Got contention thinking in of kind about design we're case, cause the of that any

picking design the and retirement is some of we've the environmental the seen just interest at plant on least in that past. intervenors our speaking, generally case. forward But on of pieces. also in in rate some then There's Not path much another contested our isn't really. up Most are our there

it. Got

other? I the question services Great. for sort opportunity to changed need then or how business for the for you the data obviously, increases, look anticipate Is of find existing Okay. has you platform as maybe there Do you mix there? industrial kind Vantage. in mean, Vantage years. guess Would on a on over carbon growing lean RNG? a optimization And one And potentially just load do capture, some the repositioning? the services of I even centers for

of fee we're feasibility without that the still us. a emerging in of commodity risk. of carbon They opportunities X are and primary committed and providing which pursue our the of water a contractually CCS the and air Those our an opportunity got number X those services, test are contracts, got us projects. to with areas of then fixed backlog services. working we've custom where have for services, to long-term RNG, most capture greenfield the installation, We've now. compressed And energy is we behind that significant a we're are focus. good secondly, of right sort solutions, those continue of middle to the industrial Those is nice storage, fence, cogen opportunities parties handful

So about more before that we're mentioned. very that create to lines first But feel good X on the starts to come business line also that I a business it, on but value. focused we it becomes

it. Got Okay.

Is And just portfolio some need there? do any Jerry, there optimization? sorry, optimization the to

significant XX-XX needs equity would very XX%. to X DTE, X be and that committed that in we at things. business be But at we -- One our asset -- Right utility growing the a see need. perhaps we would don't rotate doesn't If value to current optimization our between We're now, trigger create for rotation. it after That so don't and us were non-utility. the potential really incremental beyond trigger. second And see to look assets. forecast, mix secondly, is

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

just of Maybe impacts. I you in 'XX. remind 'XX, where sit expectations year-to-date us for do start weather you want off on terms -- to just can

was slightly I in positive. it negative the here, XQ. $X.XX think it's to And

just that -- So you it $X.XX underway. and have reconcile $X.XX that in maybe half mitigation -- for number the us? just Maybe we net first see is the

the Yes. Page It's in the We show deck weather slide. impact XX. on

contingency negative and build You year. at negative some you can in ] the electric, [ still see year-to-date as at But we're $X.XX. gas weather throughout know, we $X.XX for

going confident of need for later really hopefully need do even that us we're so allow half the we're second to year. 'XX, more to what from invest And the which meet some will do years And good forward to for weather, we see the be pull to we able and customers to more. in into out 'XX customers some investment our of help for our some

That's helpful. it. Got

still a your basically, So slight track measures XXXX contingency for XQ with to in of sort weather place. offset and on

things for the all vegetation thanks the Jerry, cetera. on sharing Okay. details operational you're doing, et management,

and Just wondering as factored that review to study the how made you fall into Consulting what a is changes, is going. operational expect here? And review the these as Liberty how await getting there in we report

have shifts positive continue done that line We feedback very the auditors set see say We've interviews in audit now. wrapping The may we've they've plans. field in agenda to The completed gotten anticipate report September. there in nothing programming will we very collaborative their is some our But we seen as our any with And interaction is them. forward I'd the we on a and September. in up. initial that to been Durgesh. -- indicate that up Thanks, process in will surprises Yes. speaking, we'll the generally It's visits. that be the feedback get with be much slightly. --

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

could if the the any rates shape progress potentially you're on update give see direction up you seeing how I wondering new in Let's performance-based guess an from structure? here, -- of that

Sure.

staff our metrics we're are customers. say landing really collaboration and lot And on of to a process. on would this with been there's we So the PBR I feel interaction that valuable

initial that strong that So think the in also metrics. in got now we've strong alignment sure process consensus David targets. targets to we're is and the make making think the got sure on symmetry I I on on And we've there's the

those X on. staff the staff things commission the working that with the are we're So remaining and

that things like fact it's The progressing think lining with up So it's nicely our important to we we for move that feel well. are very customers. quite

center it. you terms color how on you're the data are That's could you seeing the maybe pipeline, helpful. attract wondering that even customers side, of those territory And demand characteristics without if legislation. think center Michigan And that could terms in you offer? the do your in much any just data Got be any of quantification able of might provide that context to service then of or there

not Yes. that is things, X are One several things would attractive. Michigan I part disasters that natural say of make repertoire. Michigan the

The and and makes to us it of I got we course, fresh And also capacity are that that climate the fact offer I energy being attractive. cool water, our makes our could attractive. water, immediately, cooler we've attractive. access available think, rates that So think all water

are the features. attractive those So

will think the I tax attractive what use even us and exemption. sales is more make

there use some in aggregators XXXX. sales have exemption got that But are tax a already that passed

the think some we we're really I that use and seeing will some will. see -- you the of if action sales So that's regardless hyperscalers, from tax targeting

come to more on So this.

lot much thousands seeing? are We're of numbers a numbers of seeing demand floating around there megawatts. how Obviously, about asked in big are industry. You're we the the demand in

sales bit. -- that of the the work is tax the that Hopefully, some that think once will a I holding that back. and kind I loose want exemption landing to that and seems momentum very will use break So encouraging, one. of first passed, we But that gets believe

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

questions. earlier these of some on up picking Just

is just the sounds of But So offset any conservative has now. expected, like Or and an offset trading? better that there the really at there range Or is the kind entire business utilities? -- weather biased tracking being other net-net because been for trading it at maybe is but somewhere? of higher offset than is the it's segments? Like year-to-date that is

our in good did weather we're say now. so challenging winter We or a cool so gas. far see gas. -- very I'd really place across warm far winter had right some businesses We and

on but all maintenance some now. our for to feel going saw about about us for expenses our we to projects through or we some in pull of that's our that. good working some But our there, customers. and do the in overall, XXXX So give good lines And opportunity we right our we're invest additional we businesses challenge feel can here forward customers as

to Michael, we're to feeling last strong we're in success the back year that lot really that, And of a and we deferred going noncritical for to XXXX. have for say like we'd plan creating to the benefit year, benefit of I maintenance would into Yes, a just of pull customers. add the that our also

some say, I we're if of we're feel about opportunities planning sort good So this we the becomes really traditional eventually have would what done. our to XXXX. of process, maintenance at that you where looking we do in critical backlog eliminate back get to noncritical it moment, And don't

XXXX, but So our for and deep forward, only planning benefit we're in year which our this benefit to also customers, pull which benefit this that -- will it not looking at are point but we will time. into

That makes a color. lot appreciate of the sense. I

more any Vantage. also quarter, Can you out was in but give of equity what this was? I that sale adjusted gain investment on think the color on earnings, at the

one our was gas there one got projects. projects, sale exiting on we those of sale and as gain of a Yes, we were that a of landfill

saw value and we exiting. was good were value It we Yes, a in that we partnership there. saw a exiting,

advantage So it. of took we

Great.

just how respect me you're for resource future for and thinking that the of Just election planning, a last could and on some mainly is realizing, maybe what trunk the credits about and means the anything, there if in Republic sweet tax that your change margin to you're with one area. planning

Sure.

question. So great

mandates that that had of that. think standard Any year, aware will are and state. don't to standards politics, the it last clean some type energy by as was affect all RPS an federal in change passed we You I also relates

to drives mandated achieve required the be as RPS the significant well will as of investment clean which standard, us. energy standard a and We amount for

The property territories, to Republican-dominated also fact from investments that significant require dollars taxes to other significant jobs fact that we change come majority see are these be there'll an -- in legislators to into investment. and the order territory, the and a IRA of the going interest our act in that get would be significant to have is those interest economic development, lot very -- with of service Congress of it will the overcome a

for a at strong us, solar really we're community nicely a getting for developments our support. support lot seeing level, moving local permitting So quite is are of

have drastically the So even a though to have political make would the would politics change and landscape could change, difference. you to

drive the change, view summarize, event. we was standard as will the if for looking less low perhaps state And Just a to mandates to that assets, IRA probability RPS make it the and the investment. it we'll would affordable, but but be

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

you. for questions operational Two

on do XXXX. side, cycle end the should Where where or tree and a currently First, is -- targeting there? challenge target? to have get to of trimming you're X-year by to any stand that -- you be straightforward you pretty it getting there the Or

areas have to have It pretty that there. straight may should you get trailing revisit. may to We some be

-- are about XX% right that cycle. we've on We now, X-year got

cleaning happened up term go because We've of true So some quicker found certain had a than tree lot to We to our we're areas we revised the anticipated. areas. growth that back standard. we the

anticipate Andrew, So much make had that the back expand even seeing then can get we did cycle the on that areas as and higher stays will we track what anticipated. areas, certain again us I those X-year and it back trim go than we sure the think, quickly may growth we're that further revisit we we'll true that returning and because initially anticipate, we growth is more even and

where $XXX trim we the handful years to ago. our commission, we a of from recall tree approved [indiscernible] years about a took in surge that you'll trim million by Andrew, tree investment Actually ago. got X a year,

Six years.

of helping it is for period excess which customers to that And a while our benefit over impact securitized, move is longer provides us being time. surge the trim customers that tree

we'll the done positive the fine-tuning to probably down So But we're Joi on for take vegetation. financial search. it. we've more And we we impact do keep have having and as it even and really where it's complete resources as back while a go reliability actually said, it a going

X, embedded the on broadly, and of outlined fully efforts the now categories. lot those one And relies $XX all plan? Then and the Great the rate X-year hear. related you outcome, the would more beyond Or Slide of on CapEx X both much billion achieving a above in spending obviously, Joi, case how Are plan? spending to those those in reliability X-year some require and then? of that the and of future between current cases incremental efforts

case Andrew, the it's and all embedded in contingent staff tomorrow the rate plan, is and outcome hear we'll -- position. on it

We and auditors at the gotten we've out on of audit also that just have supportive the feedback least audit, laid the we the were way that from we hope based that the the plan.

may but auditors our supports some there be Now agenda. feedback generally the speaking, on programs between the based movement feedback, from their gotten the we've

the from Next with question [indiscernible] line Juliane Jefferies. comes of

affordability budget? as the in self-build, and to think loan especially Just law. and to do look to -- afforded energy affordability. How of accelerating you and growing and the prioritize at nexus think palatable you the do ensure how you today, of balance PPA obviously as light try pie affordability ongoing and back you between between reliability latitude just what growth light balance come need this to in about about know under the the tension of And opportunities, even of that CapEx expanding you a

add. can start I'll and So Dave

more more more financial So when that makes product we to being find end expensive compensation affordable we we competitive, for mechanism customers. the means our our up our which PPAs self-build, with we're customers.

So it chews up affordability room.

self-build from number adder. an investor an than PPAs a one. from So much that's two, perspective, is more set compelling number with Thought thought customer

EPS the for the And the secondly, to these applies to is more output only value. the X think of I owning resources, investors, And versus Xx the that's PPA. that fact owning intermittent for fundamentally FCM Now driven assets value provides product. by

investors. value fundamentally for an SEM what that's So reduces of the

Julien, want to offer. are answers those your X that? -- to can that So I'm thoughts Dave, you did the not add sure but I question, that if

We plan. our and is Jerry to our PPAs the that our into do have some built do handle says, to our investing, comes when We plan. for better have it we're can into shareholders capital for But that. and sheet built our PPAs do customers amount as balance better of

about priority it steel-related Yes, that it just for business? as you're a to little bit about any sure. Just nuance. self-build a to you've know back comment. the I go then little bit Energy pertains remains on the small -- And more and custom Solutions Excellent. like here basis dynamics but an sounds just there ongoing Can you it, talked a advantage? on talk related,

the for plant see we good central country. services the particular, custom opportunities more Solutions projects across the Energy in Well, some doing business, we're as within

projects to a feel we good continue of have grow pipeline there we we continue to So can and drive. that

Ford talked that is We with project the year. stages in we online X have quarter last coming about this

online. come come will and Some online has more

line second half in end of the at The will the come year.

business. really performer then feel we And us. business a So solid about our just good that steel-related for is

Mizuho. question next comes with the from Your of line Anthony Crowdell

I have X questions.

me One without upset them it Dave of previously for questions. of gets told a lot

Do are think spending your I'm probably very in given more just this of wonder where about basis cycle right that's right across debt more Do just you enough highs, XXX on at maybe a a points have Dave, FFO now, metrics? you XXX, severe has credit healthy to been about when all-time have cushion the storms. not we if spend? Just ever now DTE, think curious industry, severe of levels you -- spending the company

It's gives we thresholds. we does XX% Andrew, headroom with the us XX% in a that over -- to last some debt. do think it And yes, some target question, downgrade level confident they're us We pretty all at, it give the we're -- to good agencies to too. quarter, rating and the the met FFO the I think good

on our we are good where with balance that. sheet feel sheet and metrics we about balance our So

just then And X Great. follow-up.

kind an of was it think I earlier question. to

for when the of lot when a opportunity. lot the I look growth growth earlier, year, or trending you customer service, what activities And you those seeing it's of look growth? at about on or as the a When then mentioned XX, Slide highlighted economic you in economic low X%. at growth X, the You as Slide all demand you sales long-term are growth get

we of when it than bit how see is out data in what is. play that and that our look a the we're range I of could longer-term well. economic further. thing centers another But in growth. of little load EV our long different a up our some right little what about base term a as kind pretty for, think, is that load forecast What in, comes You consistent could in residential seeing little kind now it's drive more sales

Next of question Morningstar. Miller the with comes Travis line from

You last either that answered the most of you're to respect couple With a file case, here. my of versus cases? seeing things rate file rate expect questions, here or rate but interveners just the to you little or go case

now, case. to in Yes. sure said with even interveners settlement. before, gas move we're chances and electric the our of would the and for There increases I a new of level seeing contested MPSC have the to intervention as the intervenors new case But in are likely settlement, that

we But Aside that see still rate regardless. a yes, history. activity in a from more feel that, we outcome lot get case constructive confident the of than can we space

their or contesting Any Sure. or way bucket what contesting? agenda those new interveners to not

the seen seeing. for tomorrow certainty not Well, case what we'll in they're what routes, know it's only But we've interests is we're natural gas, mental gas sure. environmental in some

intervenor more and intervenors has in spurred money. last was that legislation because in an year, funding, happened there more there's What increase

much I that's has more the created so why we have much been there's part think that and is activity allowed challenge that legislation funding more of So the activity. by

you approved? to if those. terms more right more positive which are interesting other support also the question obviously the you make of rate One of investment, now it increases, get works. in in terms get Very could potential that spending cases pushback of on characterize how giving -- reliability, negative is a more discussion you rate about in Or all of seeing here, more that a

question examine we're improve and aligned would we how we The think that on an grid. is believe way -- the we everybody the to improving future. the of the reliability audit to that the reliability I into forward the get best in and term that. want to then aligned of go near with purpose the how all in what's do becomes I And say

path alignment forward think go on be. long I'd way audit the say, the a in should what So building, I and will results consensus

could that were And -- I Yes. don't I all came of really result believe spend to should would I say the expect improvements, commission the we on a will less as was would make reliability say sure to so audit drive doing site we the and that improvements. we reliability line that

I today. think a will here it like, said times few has Joi

to it think buckets. shift system. strong continue our be I a But invest the may reliability, overall, heavily in endorsement to thing I of there'll by think age especially

requires it pretty time. over has become that the of investment that improve the significant evident think system that I to audited as are in quality we proposing

audit able those And Or make results will Great. will rate to case? it [indiscernible] it cases? be into this rate

the well, necessarily. record -- be Not It comes of out can't the a September. audit in part

So into it probably into won't make it -- case. formally freight this

it may influence. But

It may right. influence,

of buckets perhaps. the investment As

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

feeling saying future everyone, Well, joining a positive for today. as us And for as great we're healthy stay close I by have position safe. hope and you and just morning I'll well years. our you, about really XXXX thank

now you concludes Ladies joining, call. this may and gentlemen, Thank the all for and disconnect. you