With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

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The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-250-DTE Energy

The Detroit energy company provides electric and gas services to more than 3 million residential, business, and industrial customers throughout Michigan. It also owns a portfolio of subsidiaries that specialize in natural gas storage, biomass energy, and renewable projects across the U.S.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-253-DTE-Energy

The Detroit energy company provides electric and gas services to more than 3 million residential, business, and industrial customers throughout Michigan.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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DTE Energy provides electricity and natural gas to millions of customers in Michigan. Its electric segment serves 2.3 million customers with power from coal, nuclear, wind, solar, and hydro sources. The gas segment supplies natural gas to 1.4 million customers and operates extensive pipeline and storage infrastructure. DTE Vantage supports industrial clients with energy, steam, and environmental services, while also running renewable and gas recovery sites. Its energy trading arm handles power, gas, and environmental commodities.

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DTE Energy (DTE): Company Profile, Stock Price, News, Rankings

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DTE Energy

dte energy

Hello, and thank you for standing by. My name is Bella, and I will be your conference operator today. At this time, I would like to welcome everyone to DTE Energy Q1 twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

I would now like to turn the conference over to Matt Krupinski, Director of Investor Relations. You may begin.

Thank you, and good morning, everyone. Before we get started, I'd like to remind you to read the Safe Harbor statement on Page two of the presentation, including the reference to forward looking statements. Our presentation also includes references to operating earnings, which is a non GAAP financial measure. Please refer to the reconciliation of GAAP earnings to operating earnings provided in the appendix. With us this morning are Jerry Norcia, Chairman and CEO Joy Harris, President and COO and Dave Rood, Executive Vice President and CFO.

And now I'll turn it over to Jerry to start our call this morning.

Thanks, Matt, and good morning, everyone, and thanks for joining us. I hope everyone is having a healthy and safe year so far. This morning, I will discuss the achievements we've made this year as we continue to deliver for all of our key stakeholders. Joy will provide an update on the significant progress we are making to improve reliability for our customers while maintaining affordability. Additionally, she'll provide updates on our renewable energy investment that supports our path to cleaner generation and data center opportunities that provide potential upside.

And Dave will provide a financial update and wrap things up before we take your questions. Let me start on Slide four. We've had a strong start to 2025 and are well positioned to meet our targets this year. Our success is a testament to our dedicated and engaged team committing to serving our customers and our communities. This year, we were recognized by the Gallup organization for the thirteenth consecutive year with a Great Workplace Award and our employee engagement ranks in the ninety fourth percentile globally amongst thousands of organizations.

As I've mentioned before, our high level of employee engagement is our secret sauce for continued success. We remain committed to making the important investments to enhance the grid and improve reliability for our customers. As we are committed to reducing power outages by 30% and counting outage time in half in the next five years. As we continue to make these significant investments in automating and strengthening our grid, we see that the investments are working. We told you earlier this year that investments in reliability helped achieve a 70% improvement in time customers spent without power in 2024.

And that metric has improved another 60% year to date versus last year. We are also performing above our aggressive targets for our operational metrics including reliability and plant performance. In addition, our team supported our neighboring utilities to help restore power outside of our service area after a historic ice storm wreaked havoc in that region at the March. I know the state, utilities and their customers are very grateful for our assistance. We remain committed to investing in the communities where we live and serve to support Michigan's economy and employment opportunities.

In 2024, DTE invested $3,300,000,000 with Michigan businesses creating and sustaining more than 14,000 jobs across the state. Last year, DTE invested $1,000,000,000 with certified diverse suppliers and nearly $1,000,000,000 with companies based in our home city of Detroit. As I said at the beginning of my remarks, we are off to a strong start this year and are well positioned to achieve our 2025 targets. Our 2025 operating EPS guidance range of $7.09 to $7.23 with a midpoint of $7.16 per share, which provides 7% growth over the 2024 original guidance midpoint. And we remained well positioned to achieve the higher end of our EPS guidance range this year.

Our long term EPS growth rate target remains at 6% to 8% with 2025 original guidance as the base for this growth. And as I mentioned on our year end call, we have a 45Z production tax credit for RNG projects coming into the plan this year through 2027, providing confidence we will reach the higher end of our growth rate 2025 through 2027 with flexibility to exceed the high end of our guidance or support future years. So I'm feeling really positive about 2025 and the position we are in to continue to achieve long term success. And regarding tariffs, we don't see much of an impact this year or in our long term plan. 80% of our capital plan is with service providers that would not be impacted by tariffs.

Of the remaining material spend, we have been working closely with domestic suppliers and have built inventory that mitigates most of the tariff exposure. Obviously, we'll see how all this plays out and we are closely monitoring the situation. In summary, our tariff exposure is manageable at one percent to 2% of our capital plan and we continue to work with suppliers to further mitigate that exposure. We continue to maintain a strong balance sheet and investment grade credit ratings to support our customer focused capital investment plan. We remain committed to deliver premium shareholder returns that our investors have come to expect.

And our 2025 annual dividend of $4.36 per share aligns with our practice of providing a growing dividend as we continue to deliver EPS growth. Now let's turn to slide five to provide an overview of the progress we are making on our growth plan. We are building on a great progress that we made last year across all our business units so far this year. Starting at DTE Electric, we continue to enhance our reliability efforts following significant progress in 2024. We plan to increase our efforts on all fronts in 2025, including the continued deployment of smart grid devices, upgrading existing infrastructure, replacing the 4.8 kV system and trimming trees.

We filed a rate case providing support for our customer focused capital investment plan that will allow us to further improve reliability and focus on grid modernization while minimizing the impact on customer bills. We are making great progress with data centers, having executed non binding agreements with three different parties for projects totaling 2,100 megawatts. We are also actively engaged in discussions with additional opportunities working with several hyperscalers and co locators and opportunities within our service territory. This work will drive affordability for our customers and provide additional upside to our plan through renewable energy and storage investments. At DD Gas, we continue to progress on our main renewal program as we modernize the gas transmission and distribution systems.

Over the years, we have made significant investments into this program and realized timely recovery of these investments through the well established infrastructure recovery mechanism. We completed nearly 2,000 miles since the IRM began, which is about half of the total miles set to be renewed. At DTE Advantage, we continue to advance custom energy solutions projects along with our RNG and carbon capture and sequestration projects. One project to highlight is Ford Motor Company custom energy solutions project that is in construction. This project will provide central utility plant services to Ford's facility in Marshall, Michigan and is underpinned by a long term fixed fee contract with no commodity risk.

We expect commercial operation to begin next year. We are also progressing on another customer energy solutions project, a 42 megawatt combined heat and power project, which will serve a large industrial customer and is expected to begin construction later this year. And we continue to have a strong development pipeline behind these projects that support future growth. Before I turn it over to Joy, I just want to highlight on the next slide how Michigan continues to be a great place for economic development. Michigan continues to attract many large companies, particularly in Southeast Michigan, for the benefit of our state and our residents.

A number of large companies, including General Motors, Henry Ford Health, and the University of Michigan are making significant investments in our service territory providing significant economic development and providing thousands of jobs. Michigan is an attractive state for data center opportunities particularly after legislation for the sales and use tax exemption was passed. And as we've discussed, data center development will support customer affordability. Just to highlight a few data points that show the strength of Michigan's economy, a number of economic indicators show positive growth the first quarter of twenty twenty five versus the first quarter of twenty twenty four including housing permits are up nearly 10%, real estate GDP is up 2.6% and payroll employment up nearly 1%. And we are seeing customer growth in our service territory with both residential and commercial customer accounts up over 0.5% in the first quarter this year versus last year.

There is a lot of economic development in Michigan and the business climate here is an attractive one to support the investments that will fuel significant growth for the state. So to wrap up my comments, I'll just say I'm very excited about our start in 2025 and how we are well positioned to continue to deliver for our customers, communities and investors now and into the future. Now I'll turn it over to Joy. Joy, over to you.

Thanks, Jerry, and good morning, everyone. As we discussed on our year end call, DTE has a significant customer focused capital plan, investing $30,000,000,000 over the next five years with well over 90% of this investment in our utilities. At DTE Electric, we plan to invest $24,000,000,000 over the next five years to significantly improve reliability for our customers and further transition to cleaner generation, supporting the success of our voluntary renewables program and Michigan's clean energy legislation. And we are doing this with a continued focus on customer affordability. As Jerry mentioned in his opening comments, we are confident that we do not have significant exposure to tariff impacts, and we continue to be in a great position to execute on our plan.

Our grid modernization and renewable programs are on pace to deliver the targeted performance. Starting with our reliability efforts, we continue to make significant progress building off of our success we achieved in 2024. In 2025, we are expecting to exceed last year's efforts by installing 600 smart technology reclosers after installing four fifty in 2024, completing nine fifty miles of pole top maintenance, replacing 5,500 utility poles, an increase of 2,100 poles being replaced from last year, and trimming over 6,500 miles of trees, a significant increase from last year's total of 4,300 miles. We are committed to our infrastructure investments and are focused on improving reliability for our customers, and the investments are working. As Jerry mentioned, our electric grid reliability has continued to show significant improvement over the past two years.

And during a recent high wind weather event, we had one of our fastest restorations with 95% of our customers restored in twenty four hours and nearly 100% within forty eight hours. And we are making great progress toward our goal of reducing power outages by 30% and cutting outage time in half in the next five years. Our recently filed electric rate case is an important step in our customer focused investment agenda. This filing addresses our continued infrastructure investments designed to improve reliability and generation investments to bring cleaner energy faster to the state. One important item to note in the filing is the request to advance the infrastructure recovery mechanism or IRM.

Our previous order approved $290,000,000 for 2025, and we are looking to increase this to $1,000,000,000 by 2029 in the current filing. This filing is consistent with the electric distribution audit that was completed last year, which confirmed that our proposed investment plan will deliver the dramatic improvements and reliability we have committed to our customers. We continue to deliver top tier affordability through superior cost management, operational excellence with our power plants, and one of the larger energy efficiency programs in the country. Our historical average annual bill increase is much lower than the industry average with our annual bill increase since 2021 well below the utility Great Lakes average and the national average through 2024 and also well below the general rate of inflation. Of course, as we continue to invest in our system and as these incremental opportunities come into our plan, we remain very focused on maintaining customer affordability.

Data center opportunities, along with our distinctive continuous improvement to drive cost management will continue to support affordability for our customers. Let me move to slide eight to highlight progress in supporting our clean energy transition with potential increased load growth. We have plans for significant investment in cleaner generation over the next five years and into the next decade, significantly increasing our generation of both solar and wind as well as battery storage. We currently have well over 2,300 megawatts of renewable generation in service, and we are building 800 megawatts of renewable energy per year on average over the next five years. Solid land positions combined with our ability to successfully move these projects through the interconnection and permitting processes provides the pathway to execute these investments.

This progress has allowed us to safe harbor investment tax credits for these renewable projects through 2027. And with the support we are seeing, we remain confident that key provisions of the IRA will stay in place, supporting our ability to execute these investments affordably for our customers. So we are in a great position to execute our transition to cleaner energy, preparing to serve our customers for years to come. We are also well positioned to serve increased load that may come into our service territory, mainly from the potential of significant demand from data center development as well as further economic development in Michigan. We are currently making great progress with data centers executing nonbinding agreements with three different parties for projects totaling 2.1 gigawatts.

We are also actively engaged in discussions with additional opportunities as we continue to work with a number of hyperscalers and colocators on opportunities within our service territory. As you know, key legislation was passed for the sales and use tax exemption, and this has helped us further progress discussions for data center projects. Excess capacity of up to one gigawatt puts us in a great position to serve this demand quickly. These projects require some additional investment to support the early load ramp in the near term and will provide longer term investment opportunities in new base load generation, which would be supported by the 2026 IRP. And as we have said, these data center opportunities are all upside to our five year plan.

And with that, I'll turn it over to Dave to give you a financial update.

Thanks, Joy, and good morning, everyone. I'll open by saying that 2025 is off to a strong start, and we remain positioned to achieve the high end of our guidance this year. Let me start on Slide nine to review our first quarter financial results. Operating earnings for the quarter were $436,000,000 This translates into 2.1 per share. You can find a detailed breakdown of EPS by segment, including a reconciliation to GAAP reported earnings in the appendix.

I'll start the review at the top of the page with our utilities. Electric earnings were $147,000,000 for the quarter. Overall, DTE Electric had a strong first quarter and is on track to achieve full year guidance. Earnings were $47,000,000 lower than the first quarter of twenty twenty four. The main drivers of the variance were timing of taxes and higher rate based costs, partially offset by rate implementation, cooler weather, lower O and M costs and higher renewable earnings.

The impact from the timing of taxes was fairly significant at $67,000,000 relative to 2024. This is related to investment tax credits on two solar projects went into service in the first quarter. This timing was known and built into our plan and it will reverse during the balance of the year. Moving on to DTE Gas. Operating earnings were $2.00 $6,000,000 for the quarter, 46,000,000 higher than the first quarter of twenty twenty four.

The earnings variance was driven by more favorable winter weather and rate implementation, partially offset by higher O and M and rate based costs. Let's move to DP Vantage on the third row. Operating earnings were $39,000,000 for the first quarter of twenty twenty five. This is a $31,000,000 increase from 2024, driven by higher RNG earnings, including $15,000,000 of 45G production tax credits and higher Custom Energy Solutions earnings. On the next row, can see Energy Trading earned $34,000,000 for the quarter.

We continue to experience favorability and strong margins in our contracted and hedged physical power and gas portfolios, putting us in a strong position to start 2025. Finally, Corporate and Other was favorable by $31,000,000 quarter over quarter due to the timing of taxes, partially offset by higher interest expense. As with DTE Electric, this timing will reverse during the year and we expect to end the year in the guidance range for this segment. Overall, DTE earned $2.1 per share in the first quarter of twenty twenty five, which positions us well to achieve the high end of our guidance range in 2025. Let me wrap up on slide 10 and then we'll open the line for questions.

Our team continues our commitment to deliver for all of our stakeholders. The 2025 operating EPS guidance midpoint provides 7% growth over the 2024 original guidance midpoint and we are positioned to achieve the high end of our guidance this year. Our recently updated five year plan increased capital investment by $5,000,000,000 over the previous plan to $30,000,000,000 primarily to support our customer focused reliability investments and our cleaner generation as Joy discussed. Additional data center opportunities provide upside to this five year capital investment and EPS growth plan. Our plan provides high quality long term 6% to 8% EPS growth through these increased customer focused utility investments and the shift to more utility like investments at DTE Vantage.

DTE continues to be well positioned to deliver the premium total shareholder returns that our investors have come to expect with a strong balance sheet that supports our future capital investment plan with modest equity issuances of 0 to $100,000,000 over the next three years. We are confident in our long term operating EPS growth rate target of 6% to 8% through 2029 with RNG tax credits providing additional confidence we will reach the high end of our growth through 2027 and also provide us flexibility to exceed the high end or support future years. With that, I thank you for joining us today and we can open the line for questions.

Your first question comes from the line of Nick Campanella with Barclays. You may begin. Your line is now open.

Hey, good morning everyone. Thanks for taking my questions. Hope everyone's well.

Hey, good morning. So maybe just to start, good message on tariffs. Appreciate the color. Maybe you can kind of just give us a flavor of how you see this maybe impacting the auto sector, what your exposure is there and then just general economic activity in the service territory. Just noticed like the C and I weather normalized trends were a little bit lower quarter to quarter.

I don't know if that's timing, but just maybe kind of talk about how the plan is resilient to potential economic downturn if it goes that way. Thanks.

Sure thing. Thanks, Nick. So certainly, we got some encouraging news for the autos on tariffs where the tariffs were modified significantly for parts. That was the big deal for the automakers, especially. When I talked to several of the auto execs, the feeling I got was that relief on the import and export of parts, move across The U.

S. And Canadian border here in Detroit quite frequently into Canada and from Canada, that provided significant relief. I think the assembly portion of tariff remains in place. Some of the automakers are positioned better than others in the sense that they can have flexibility as to where they can assemble vehicles and move some of that production domestically. So much remains to be seen.

But as we mentioned in our opening thoughts, I think you can see that we the economy here in Michigan remains very resilient. We're not seeing any significant reductions in production or any plant adjustments of significance at this point in time. So, looking pretty bright. I'll hand it over to Dave to talk about the sales results and what we're seeing there as well. Dave, do you want to add to that?

Sure. Hey, Nick. It's good to talk to you. I'll start by saying, you know, our actual sales, you know, were actually up because weather was great. And even when you look at the weather adjusted numbers, you know, our sales for the quarter pretty good after you adjust for a leap year last year and energy efficiency.

So leap year accounts for about 1% because there was an extra day last year. And then our energy efficiency is about 2%. So we had really good base growth across our customer classes. And then as we discussed in our presentation and Gerry mentioned on page six, we're seeing some positive economic indicators with housing permits being up 10% in Southeast Michigan here, real estate GDP being up over 2.5% and payroll employment up about a percent. So we're feeling we're still feeling good about our load and the economic prospects for it as well.

That's great. Thanks for all those clarifications. And then just on the data center and large load customer conversation, it sounds like those conversations haven't slowed down at all and you're having additional conversations. So just can you give us some color on when we can maybe see an uptick to that 2.1 gigawatt number? Sounds like you're having kind of multiple combos with aggregators and hyperscalers.

And is there a chance that you can maybe you know, roll more into the the the formal backlog by the second or the third quarter? Thanks.

Yeah. Good morning, Nick. Yeah. Data center conversations are continuing. There's been really no slowdown.

Obviously, we've got excess capacity, that that makes our service territory ideal. And, the legislation is helping to create some urgency because it requires construction to begin no later than 2028 to take advantage of the tax exemptions. With that said, we did announce the 2.1 gigawatt gigawatts of, frame agreement, with Switch and U of M. U of M has already upped their demand from the hundred megawatts to 220 megawatts, and we're working on finalizing that deal. And then we're continuing to work the energy service agreements for the remaining providers.

We've got an additional pipeline of roughly three gigawatts with hyperscalers and colocators, and, those entities are making significant in inroads on securing the land that they need. So this is all moving in a very positive direction. We have a shared goal of getting something finalized before the end of the year, and, we'll incorporate any near term changes to our long term plan based on those agreements, later this fall. Likewise, if we have to move towards baseload increases, we'll incorporate that into our IRP filing next year.

Your next question comes from the line of Rajesh Chopra with Evercore ISI. Please go ahead.

Hey, good morning. Thank you for giving me time.

Good morning, Terry, Joy, Dave. Hey, just I wanted to follow-up on Nick's question. And obviously, we've been in a lot of discussion with investors on your auto exposure as well. Just maybe some more meat around the board. Can you clarify what your margin exposure is?

I know the sales number is pretty big as it relates to autos. So what's your margin exposure, let's say, over 2025? And with all this hyperscaler activity in the region, where do you see that going, let's say, through 2728? Just high level color, please. Thank you.

Yeah. Thanks, Durgesh. Yeah. Our our margin from autos is around 3% to 4% of our total margin. So even if we had like a 10% change up or down, it doesn't have that much of an impact overall on our plan.

So and we're feeling pretty good right now that the auto exposure based, especially on some of the, information yesterday, I I I think I think we're in a good place with that going forward too. What was your second question on, center, I guess?

Yeah. Just I was trying to gauge, you know, with all this data center activity, where do you see that going forward? Right? You know, presumably, you have all this data center load coming into Michigan, and your relative weighting of the auto sector will probably shrink over time. Right?

Oh, yeah. It will. Because just from the two gigawatts we've talked about, if you look at that, that provides like 4% load growth over the next five years. So, it would put a little less on our auto exposure, but we still feel comfortable with our auto exposure also.

Okay. Perfect. Just one quick follow-up. I know it's small, but the PBR kind of ruling, has that been factored into this rate case filing? I know it's small, but just any thoughts or color you could share there?

Yeah. Yeah. Durgesh, hi. This is Joy. Yeah.

The commission did issue the order in February, and they essentially adopted the straw proposal. And they they weren't responsive to, you know, our concerns on symmetry. So we're really satisfied with the the outcome. The mechanism, would go into effect in 2026, and it's capped at $10,000,000 for incentives and penalties. As for the proposed metrics, I mean, we're we're really happy with the metrics.

In fact, our performance across all of those metrics is green for the year, so we're on target. We did file our response to the order last month, and we're expecting to hear something back from the commission later this year. But all of this would would impact 2026, not necessarily 2025. In terms of our rate case filing, our filing is, in line with, what we had articulated earlier, staying, the course on the IRM and incorporating the Liberty audit findings in our plans. So in terms of PBR, there isn't anything specific, but the reliability improvements will only improve how we are performing relative to the b BPR I mean, sorry, PBR requirements.

Got it. Very helpful color, Joey. Thank you very much.

Your next question comes from the line of Jeremy Tonet with JPMorgan. Please go ahead.

Good morning, Good know it's not the biggest part of the business, but Energy Trading, just wondering if you could expand a bit there. And if results in the quarter were in line with your expectations, how we should think about shaping across the year? Or is there any kind of upward look versus budget?

Yes. Hi, Jeremy. It's Dave. Yes, it was good quarter in Energy Trading. We earned $34,000,000 Our guidance is 50,000,000 to $60,000,000 for the year.

And it's really strong performance continuing in our contracted and hedged both our physical power and gas portfolios. This is what we experienced in 2023 continued in 2024. We're seeing some strong margins on some of these contracts. They're one to three year contracts, so there some of it is historical that has continued to come through. And as we go through the year, we could continue to see some favorability from these positions.

It's a little too early to say. But if it does, you know, we're we'll be able to use that strength to support and invest across our segments again to support future years as we go as we look to '26 and beyond.

Yeah. I was just going to add a bit to that, Jeremy. Could tell you the leadership team here, we're deep really deep into '26 and also starting to plan for '27. You know, we're seeing strength across all our BUs right now. And, we will use that strength, as Dave said, to really strengthen, '26 and '27.

So, really good position to be in. This is what I would say traditional DTE planning forward. So, we're I feel really good about it.

Got it. That's helpful. Thank you for that. And maybe just touching on Vantage quickly here. Just wondering any updated thoughts, I guess, on the business outlook there, the business mix?

Any changes in strategy in light of potential IRA changes or just anything else on the federal side that might influence your thinking at this point?

No. Our strategy advantage continues. As we talked about in our year end call, we are shifting to more utility like investments there. So that's more of our utility like central plant services contracts we have with large industrial and large commercial customers. But all the projects that we have that are that we've talked about are either safe harbor or already under the existing IRAs.

So nothing that's changing at the federal level really changes our strategy at all at Vantage.

Comes from the line of Shar Pourreza with Guggenheim Partners. Please go ahead.

Hi. Good morning, team. It's actually Constantine here for Shar.

Maybe just starting off on the renewable energy plan and kind of the level of VRP and the proposed decision And how supportive is that of just the renewable demand that you anticipate over the next couple of years? And does the how does that decision kind of play into the IRP process? And any kind of early takeaways that you could highlight?

Constantine, can you repeat the first part based on which decision?

Oh, the the RAP. Oh, yeah. So the the the RAP, I think it's what we filed just was in line with our IRP. And, we are continuing to advance our renewable program. We have a strong pipeline.

We've got, like, good land positions. It doesn't really change, what we had already laid out, so we're gonna continue down that path. And then the additional, interest that we see from data centers may bring some additional renewables into our plan as well. So, the REP filing, we'll get the outcome of that over the next couple of weeks, the full outcome. We'll have a full rendering of that over the next couple of weeks, but nothing is changing at least near term in our plan based on what we've heard this far.

Excellent. Great to hear. And maybe in the rate case proceeding, that was just filed, can you contrast on anything that is new in the current rate case versus prior request? And with regards to the IRM expansion, what lessons learned are you building into this cycle? Is the commission receptive to a more substantial IRM?

Yeah. Thanks for the question. I'll just, you know, just recap the case. Again, it this is all about the capital we need to continue to improve reliability and transition to cleaner generation for customers. And the full ask, as you've seen, is $574,000,000, which is roughly 44¢ a day for our customers.

And when the case is finalized, the total bill growth is still expected to be below the rate of inflation. So you can look at page 16 in the deck, and you can see where we are relative to the rate of inflation. We think we've put forth a a solid case. We've got some really compelling circuit level benefit cost analysis and performance data that is showing that these investments are working. Some of the key initiatives in the case, include the expansion of the IRM, as you mentioned, and they align with, the Liberty Audit.

So we upped the ask in the IRM for pull top maintenance specifically, and that was called out in the audit. We're continuing our work for automation. We're showing that that automation is reducing the duration of outages and making the grid more safe. We've also included funding for sub transmission in the IRM and some maintenance on other aging equipment. So feeling really good about what we've included and how it aligns with the Liberty audit.

We're also requesting an expansion of our tree trim efforts. We're increasing the scope. We've seen that by increasing the scope, we can reduce outages even further, and we shared all of this with the commission. So the ramp that we've proposed is significant, but we've we've tiered it such that they can give, you know, consideration for the results that we're achieving, and they've got some flexibility in how they respond to our request. If you look at how we've performed, though, and this is, I think, is really compelling, and I'm really proud of the team.

We mentioned that there's been a 70% improvement in reliability from 2023 to '24 and a 60% improvement in reliability year to date based on, you know, performance last year for the same time. So I think the commission acknowledges, and they did acknowledge publicly during the hearing in February that these investments are working and the reliability is is showing up in in positive ways for our customers. So we're looking forward to their response in August to see, you know, how staff feels about the case, but I think we have offered a lot of compelling testimony that supports the app.

That's great color. Thanks. And maybe just a quick follow-up and next question on the data center conversation. Is there a targeted time frame that incremental deals are currently seeking in terms of in service dates or ramp up time frames?

Yeah. I think what's driving a lot of the urgency is the way that the legislation is is is is put together. It requires that they start construction by 2028. So that means they have there's some urgency on their part to get something done, and, the the activity just continues. I mean, the team is out talking to new data center providers each and every day, in fact.

They're having, you know, strong conversations with our current pipeline, participants and then looking to source, additional demand from other providers in and around the area. So I think we're making really good progress. I think we'll have something done by the end of the year. We're continuing to work in. Like we said, the U of M deal has already increased from where it started.

Excellent. Appreciate that. Thanks for taking our questions.

Your next question comes from the line of David Arcero with Morgan Stanley. Please go ahead.

DTE Energy (DTE) Q1 2025 Earnings Call Transcript

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