Durgesh Chopra: Understood. And then maybe just 1 question on 2024. Obviously, you expressed a lot of confidence here in numbers [ph]. Maybe can you just frame for us what level of contingency, if any, you might have used? I know you go into the year with a healthy level of contingency but you had milder weather in 1Q. So maybe just frame for us how much of that contingency bucket is still left?
David Ruud: Durgesh, this is Dave. As we came into the year, we did have some contingency for weather. And then we did see weather in the first quarter, as you can see. But as we see that weather, we work right away to rebuild what we can to make sure we’re in a good position for the summer. And then — so we’ve done that — and then we also have our lean and invest where we saw last year, we can go deeper if we need to and doing things that we will need to do to make it. So we’re in a fine position going into the summer and that’s when the real weather will happen for us.
Durgesh Chopra: Excellent. I appreciate it. High confidence in 2024 as well [ph].
Operator: Your next question comes from the line of Andrew Weisel with Scotiabank.
Andrew Weisel: If I could first ask that O&M question a little bit differently. You were pretty aggressive last year as soon as the year started, given the rate case and the mild winter weather and obviously, some of that is partly reversed in the first quarter. I guess the way I would word it is, would you say you’re back to normal O&M levels? Or are you still sort of catching up from last year? Or again, the last question I asked, are you in lean mode already given the mild winter 2024?
David Ruud: Andrew, I’ll start by saying this year feels a lot different than last year. We had weather last year, too but we also had the storm in the first quarter in the rate case. So we were in a very different position this year. And we did a lot across the company to achieve what we needed to do last year. Some of those reductions continue naturally into this year but for the most part, those were all onetime savings from last year. So we’re back into what I would say is our normal efforts on productivity and efficiency improvement, putting into place our lean and invest as needed as we continue to manage affordability and ensure we’re going to deliver for our customers. So I’d say it’s more into the normal DTE mode of productivity and efficiency improvements.
Andrew Weisel: Okay, great. Good to hear. And then one very small one. The negative earnings at Corporate and Other and you have a note that there’s — it’s related to the timing of taxes. Was that in line with your expectations when you gave the full year guidance? And should that fully offset as the year goes on? Or is that trending a little differently than you had budgeted?
David Ruud: That is all consistent with what we budgeted it and it will all reverse by the end of the year too.
Operator: Your next question comes from the line of Michael Sullivan with Wolfe Research.
Michael Sullivan: I wanted to maybe dig a little deeper on the rate case and some of the kind of non-traditional aspects of it. I guess on the storm cost tracker, what do you think chances are that, that goes through? Or does this need to iterate through a couple more cases? If you had that in place last year, would that have been enough to put you in a position to have hit the original guide? And then on the IRM, how much is that ramping up from the last case? And do you think that can help space out cases in the future? Sorry, that was a bunch there but any color would help.
Joi Harris: Yes. So you’re first question around the storm tracker, the $65 million. If that were in place last year, yes, that would have been helpful. Certainly, given the cost that we experienced in the first quarter and then throughout the balance of the year. Do I think that we’ll get some support for it? I think there’s a lot of conversation that happened early on. There is a good chance that we’ll get the support. I think we’re aligned with consumers and pursuing this type of tracker. And more will come in by way of testimony, we’ll know here shortly once the schedule is set and we start to see the intervenor and staff testimony how much support we actually get. In terms of the IRM, what’s in the IRM? For 2026, the IRM includes $530 million worth of capital.
And then for 2027, it’s $720 million worth of capital. Previously, we had filed for $62 million in 2024 and $290 million in 2025 and we’re well positioned to execute on our ’24 plan and we certainly have plans for ’26 and ’27. Do I think that it will keep us out of future rate cases? I think it will have to continue to grow in order for us to achieve, I think, a delay in the rate case cadence that we have right now. And that will take us several years to arrive at, I think, that ramp.
Michael Sullivan: Okay, great. You hit all of them. And then just one quick one. The renewable plant outage at Vantage in Q1, was that planned or unplanned? And is it — if it was unplanned, is it resolved?
David Ruud: It was unplanned. It actually started last year and it is resolved. So it’s coming — it’s back online for the rest of the year.
Operator: Your next question comes from the line of Sophie Karp with KeyBanc.
Sophie Karp: I was just wondering if you could maybe talk a little bit big picture rate with a pretty impressive investment plan that you have over the next few years, right? And I’m sure there’s going to be more rate cases come into an account for that. Longer term, what do you see as an offsetting factor, I guess, to customer bill increases here? Is that maybe industrial load that’s growing and including data centers? Or some of the current automation you put in would cut on OpEx? Like if you could give us some sense on kind of like big picture, how would you, I guess, offset customer build pressures with that?
Gerardo Norcia: Well, I would say, Sophie, thanks for the question. I mean we are undertaking a historic transformation here at DTE. As we think about the way we deliver energy, our wires business, the way we’re transforming the way we produce power over the next 5 years. And as you can see in our capital plan, we have $25 billion in our 5-year capital plan with more than 90% of it directed at our 2 utilities and we also continue to transform the way we deliver natural gas and that’s well underway. Now in terms of affordability perspective, you can see we’re extremely well positioned with our bills to our residential customers being well below the national average. Our goal is to maintain that position. And the way we maintain that position is, as you described, a lot of these investments are pointed at assets that will reduce cost, for example, as we continue to improve reliability in the electric wires business.
