DTE Energy Company (NYSE:DTE) Q4 2022 Earnings Call Transcript

So a lot of work went into, what I would say, continue to improve and continuously improve the quality of our submission. So that’s something that we did. As well as we spent a lot of time ahead of the rate case, creating context, not only for the commission, but also for some of our interveners as that what are these investments pointed at and why is this fundamental? And if you look at the ice storm that rolled through our territory today, I would say it certainly further reinforces the need to invest in our grid as we see these climate change patterns start to take shape. We’ve had 3 or 4 major events in our service territory and across the state of Michigan over the last 5 years, which points to whether becoming more and more violent in our service territory, and we have to have a grid and investment in the grid that will stand up to all of that.

And secondly, we also are seeing significant electrification. We’ve got EV attachments increasing rapidly in our state, and we need to have a grid that’s prepared for that. So we spent a lot of time, energy creating context not only with our regulator, but also with intervenors and legislators to ensure that there’s a deep understanding. And we’re going to continue that process all year to ensure that the context for what we are trying to accomplish is well understood and not misunderstood. I will say that the capital part of our program has never been a significant question by the clinician or even the interveners. So that’s a positive. And I would say that the administration and legislators are very supportive. But I believe that this work that we would do throughout the year they continue to create context at all levels of government and with our regulator will be very helpful.

And we seek to settle, I would say that as well. Dave, do you want to talk about sales for a minute?

David Ruud: Sure. Yes, Jerry. Yes. As Jerry mentioned, our sales are tracking pretty well to our forecast. And I think as end-to-end to what we have in the filing. And I think what will be the benefit going into this filing is we’ll have some more stability because you saw our sales and particularly our residential sales from 2022 versus 2021. They were down about 3% with people returning to work. As we look to our forecast in our test year, it’s down a little under 2% from that level. So far in the early months, we’re seeing that we’re tracking like right on that level. And so we think we’ll come in at a forecast that will be a lot more agreeable as we go forward. And overall, from pre-pandemic levels to where we are in our test year, it’s up about 1.5% to 2%, too. So I think it’s all triangulating really well.

Gerardo Norcia: And in terms of the gas rate case, Angie, we’re looking to file late this year is the current plan.

Agnieszka Storozynski: Okay. And then — just 1 follow-up. So one is you mentioned all of this outreach. I mean, what — again, I want to believe. But what I’m trying to say is that this rate case is — next electric rate case happened in such a proximity to the decision in the previous rate case. And I’m just, again, wondering how — how could you have embedded the lessons learned in such a short period of time. So that’s one. And number 2 is, probably even more importantly. So over the years, you guys have always had this early earnings look, right, guidance and then it would gradually increase through the course of the year. And I’m — and as we look from a far, we’re just wondering if a conservative sales forecast where partly the reason why you were able to historically beat numbers — i.e., should we assume that the current guidance is also conservative, even given the outcome of this electric rate case?