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

David Ruud: I agree. I think — all I was going to add is that the IRA has made some of these projects more attractive. So we do see some additional competition, but we also have some of our own — our own landfill gas projects that we can work for conversions that can be very attractive for us in the future, too.

Constantine Lednev: And just any thoughts on capital rotation within that business or more kind of toe-in-the-water approach?

Gerardo Norcia: At this point in time, there’s no definitive plans for capital rotation, but I — we’re constantly looking at those types of opportunities. We’ve got a track record of rotating capital out of our non-utility businesses and helping to fund some of our utility work. At this point, you would notice that we have very little equity needs. So we’re trying to certainly match up sort of financing needs with potential rotations in the future. So we’ll see more to come on that as we go, but certainly always open to anything that creates accretion opportunities for our investors.

Operator: Your next question is from the line of Nick Campanella with Credit Suisse.

Unidentified Analyst: This is Steve for Nick today. Yes. So first question is on the regulatory strategy. As you mentioned, to continue practice of pursuing a settlement with all stakeholders. Could you just update us on this front? And how should we view this new rate case filing just different from the last one filed earlier last year? Also recognizing PSC’s comments on the rehearing process, I think it’s — I think although the request was denied the commissioners believes that DTE comes in with a very constructive approach and willing to negotiate them. And also just on the electric side, I think mostly rate cases have been conducted through litigation. Can you just help us better understand the electric rate case filing strategy with these backdrops?

Gerardo Norcia: Sure. So our intent — we’ve got 2 major regulatory initiatives this year. One is the integrated resource plan that will conclude in the second half of this year and then our electric general rate case that will conclude in December. We are very interested in settling both. And I would say that in the first instance, with the integrated resource plan, many of the parties that are involved are very interested in settlement discussions. We’ve had our first set of discussions, which are encouraging, and we seek to settle that case, which is the integrated resource plan. Later in this year, we will start those conversations for settlement around the electric rate case. We do have a history of settling gas cases in many of our renewable regulatory filings as well as our cost recovery factor filings and GCRs have been settled in the past. So we know how to do this and have done it, and we will pursue it in these 2 major regulatory initiatives this year.

Unidentified Analyst: This is really helpful. And just quickly on the ’23 guide, you provisioned from midpoint. And given all the mitigation strategy, can you just comment on — just how should we think about — I think it was a timely call on the storm cost or any weather conditions that could throw you off this midpoint, how much or how should we think of — have you provisioned for that?