Dive Brief:
- Energy efficiency is a “key component” of DTE Energy's operational and financial plans, helping keep bills low, manage load and meet anticipated environmental regulations.
- Speaking to analysts during the company's earnings call last week, Vice President and Controller Jeff Jewell said the utility expects its load growth to remain flat over the next few years, largely due to energy efficiency gains.
- The company reported second quarter earnings of $109 million, or 61 cents per diluted share, compared with $124 million the year before.
Dive Insight:
Officials at DTE Energy used their quarterly earnings call last week to highlight both Michigan's focus on efficiency and how it will help the company maintain load and meet regulations.
According to Jewell, energy efficiency is a "key component of our overall operational and financial plans and a key priority for [Michigan's] governor."
Customers are seeing lower average bills, he said, an important part of the utility's long-term strategy which includes a "very intensive capital investment program."
And efficiency efforts are paying off. Without energy efficiency, DTE was anticipating a 0.5% growth in load but officials say they are increasing customer counts while keeping load steady.
"We are changing our sales forecast as we anticipate our load growth over the next few years to be close to flat as underlying economic growth and energy efficiency pay off," Jewell said.
Peter Oleksiak, DTE senior vice president and CFO, told analysts "energy efficiency is going to be a key component as we think to our generation planning and our integrated resource planning process," calling this a "new era" for efficiency.
Gov. Rick Snyder (R) has proposed doubling the state's use of renewables and efficiency by 2025, "and as you know, even the Clean Power Plan, the EPA requirements, give you credit for energy efficiency," Oleksiak said.
The utility reported operating earnings for the second quarter of $137 million, or 76 cents per diluted share. The company also raised its 2015 operating earnings per share guidance, to $4.54 to $4.90, up from $4.48 to $4.72.
