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EXHIBIT 99.1
Business Update
March 28-29, 2017
2
Safe Harbor Statement
Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, the FERC, the
MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any
associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or
new legislation, including legislative amendments and retail access programs; economic conditions and population changes in our geographic
area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas; environmental issues,
laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;
health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities; changes in the cost
and availability of coal and other raw materials, purchased power, and natural gas; volatility in the short-term natural gas storage markets
impacting third-party storage revenues related to DTE Energy; impact of volatility of prices in the oil and gas markets on DTE Energy's gas
storage and pipelines operations; impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects
operations; volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading
operations; changes in the financial condition of DTE Energy's significant customers and strategic partners; the potential for losses on
investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; access
to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which
could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential
for increased costs or delays in completion of significant capital projects; changes in, and application of, federal, state, and local tax laws and
their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other
natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; the cost of protecting assets
against, or damage due to, cyber crime and terrorism; employee relations and the impact of collective bargaining agreements; the risk of a major
safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility; the
availability, cost, coverage, and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and
distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting
regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues; contract
disputes, binding arbitration, litigation, and related appeals; implementation of new information systems; and the risks discussed in our public
filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how
such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak
only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also
be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2016 Form 10-K (which section is
incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.
3
• Overview
• Long-Term Growth Update
• Summary
4
Growth is driven by strong, stable utilities and
complementary non-utility businesses
DTE Electric
• Electric generation
and distribution
• 2.2 million customers
• Fully regulated
Growth driven by infrastructure investments
aimed at improving customer reliability
Growth driven by strategic opportunities
75%-80% Utility
20%-25% Non-Utility
DTE Gas
• Natural gas
transmission, storage
and distribution
• 1.3 million customers
• Fully regulated
Gas Storage & Pipelines
• Transport and store natural
gas
• 5 pipelines, 91 Bcf of storage
Power & Industrial Projects
• Own and operate energy
related assets
• 66 sites, 17 states
Energy Trading
• Active physical and financial
gas and power marketing
company
5
• Best employee safety record in company history
• 4th consecutive Gallup Great Workplace award; only utility
to be recognized
Focus on employees and customers aided our
success in 2016 and remains a priority
* J.D. Power 2016 Electric Utility Residential and 2016 Gas Utility Residential Customer Satisfaction Study(sm)(large providers). Visit jdpower.com
Employee Engagement
• Top quartile customer satisfaction for both electric and
gas residential customers in latest J.D. Power studies*
• Best utility infrastructure reliability in over a decade;
70% reduction in customer outage duration
Customer Satisfaction
6
• Constructive electric and gas rate orders
• Michigan energy legislation signed into law
Recent activities support growth plans for utilities
and non-utilities
Political & Regulatory Environment
• Combined cycle gas plant build announced
• Major acquisition at Gas Storage & Pipelines
• Significant progress on NEXUS pipeline
Growth / Value
Capacity requirements
10% Retail Open Access cap
10-month rate case cycle
15% renewables by 2021
7
Continuous improvement has enabled us to be an
industry leader in cost management
* Source: SNL Financial, FERC Form 1; major US Electric Utilities with O&M greater than $800 million; excluding fuel and purchased power
** Source: SNL Financial, FERC Form 2; gas distribution companies with greater than 300,000 customers; excluding production expense
Electric Peers*
Gas Peers**
2008 to 2015 Change in O&M Costs
82%
92%
Average 34%
Daily focus on problem solving
Metrics drive progress
Scorecards monitor
success
DTE Gas
-5%
DTE Electric
-3%
Average 22%
8
Minimal regulatory lag
Solid ROEs
Unique recovery
mechanisms
Source: Barclays, February 2017
Top Tier
Michigan’s regulatory environment is one of the
best in the United States
9
• Overview
• Long-Term Growth Update
• Summary
10
Strong track record of
exceeding original guidance;
targeting 11th consecutive
year in 2017
Increased operating EPS
growth target to 5% - 7%
from 5% - 6%
Increased 2017 annualized
dividend by 7.1%; targeting
~7% dividend increases in
2018 and 2019
* Reconciliation to GAAP reported earnings included in the appendix
We are focused on continuing our strong financial
performance
(dollars per share)
* Reconciliation to GAAP reported earnings included in the appendix
** Growth segments midpoint (excludes Energy Trading)
2017
Guidance
$5.25
Growth
Segment
$4.93
**
$5.31
2016 Original
Guidance
2016
Actual
$3.08
$3.30
Operating EPS Annualized dividend per share
$5.28
$5.14
Growth
Segment
11
21%
2016 2017-2019E
51%
2016 2017-2019E
Leverage*
Funds from Operations** / Debt*
Target
50% - 53%
Target
20% +
• No equity issuances planned for 2017
‒ Acquisition related equity of $675
million in late 2019 (through
convertible equity units)
‒ No additional equity planned
through 2019
• Issued $2.7 billion of long-term debt
to fund growth
• $1.5 billion of available liquidity at
December 31, 2016
Cash flow and balance sheet strength are a
key priority
* Debt excludes a portion of DTE Gas’ short-term debt and considers 50% of the junior subordinated notes and 100% of the convertible equity units as equity
** Funds from Operations (FFO) is calculated using operating earnings
12
With tax reform, DTE is uniquely situated to
maximize customer and shareholder value
= Consolidated DTE Impact
Customer savings allow for potential additional reliability investment
Increased earnings at non-utilities offset loss of interest deductions at holding company
Operating EPS growth target remains at 5% - 7%
• Reduces customers
rates
• Allows acceleration
of customer centric
reliability projects
• Increases earnings
• Reduces cash flow
+ Utilities + Non-utilities - Holding Company Assumptions
• Increases earnings • Reduces earnings
• Corporate tax rate
reduction to 20%
• 100% capital
expensing
• Loss of interest
expense deductibility
on all debt
• Permanent loss of
value for customers
• Increases cash flow
• Deferred benefit
• Reduces earnings • Reduces earnings
• No impact • Deferred benefit
13
2017 – 2021 Plan
2012 – 2016
$12 billion
$13.5 billion
2017 – 2021 Capital Plan
Electric............... $8.4 billion
Distribution infrastructure,
maintenance, new generation
Gas .................... $1.8 billion
Base investments, infrastructure
renewal, NEXUS related
GSP .......... $2.2 to $2.8 billion
Expansions, NEXUS
P&I ........... $0.6 to $1.0 billion
Cogeneration, on-site energy
+12.5%
Growth through 2021 fueled by investment in utility
infrastructure and generation along with midstream
opportunities
14
Generation and distribution infrastructure
replacement will continue to improve service to
customers over the next 10 years
DTE Electric Investment
New generation
• Retire 60% of coal fleet; replacing with clean energy
Distribution infrastructure
• Move electric reliability to 1st quartile
Maintenance and other projects
• Productivity and efficiency improvements to reduce costs
2012 – 2016 2017 – 2021 2022 – 2026
$7.4 billion $8.4 billion $9.8 billion
Nuclear/Other
Gas
Renewables
Coal
2030
Scenario
2016
Electric Capacity Shift
(GW)
15%
30%-
45%
15%-
30%
10%
22%
53%
25%
15%
15
Transformation of our generation fleet is driven
by renewable energy standards and the age of
our coal plants
Belle River St. Clair River Rouge
Retirements*
Additions*
Wind / Solar
Trenton
New gas plant
* Timing and mix subject to change
2024 - 2030
New gas plant Wind / Solar
2017 - 2023
2017 - 2023 2024 - 2030
~2,100 MW ~1,000 MW
~2,500 – 3,500 MW
16
We have already achieved significant emissions
reductions and continue on the path to even
cleaner energy
2005 2015 2030
CO2 Emissions
16%
Reduction
2005 2015 2030
2005 2015 2030
NOX Emissions
SO2 Emissions
Emissions reductions are largely
due to $2 billion in controls
installed at Monroe Power Plant,
new technology and reduced
reliance on coal-fired generation
In addition, mercury emissions
have been reduced 42% since
2005 with over 75% reduction
expected by 2030
67%
Reduction
61%
Reduction
40%
Reduction
85%
Reduction
95%
Reduction
17
Infrastructure Resilience Infrastructure Redesign
Technology Enhancements
Upgraded nearly 20% of circuits since 2013; impact
33% of circuits by the end of 2020, improving reliability
on impacted circuits by up to 70%
Major investments planned at 20-25 substations by 2021
to address load growth and aging infrastructure
Remote monitoring capability more than doubled from
2015 to 2016 with 100% capability planned by 2019
DTE Electric distribution investments continue to
drive reliability and increase customer satisfaction
Tree Trimming
Enhanced program has resulted in a 70% reliability
improvement on trimmed circuits
18
Infrastructure renewal and replacement improves
service to customers over the next 10 years
DTE Gas Investment
NEXUS related compression
Infrastructure renewal
• Strengthen gas infrastructure by reducing planned main
replacement cycle by half
Base infrastructure
• Transmission, compression, distribution, storage
2012 – 2016 2017 – 2021
$1.4 billion $1.8 billion
2022 – 2026
$1.7 billion
19
Main Replacement Pipeline Integrity
Meter Move Out
Systematically replaces poor performing
unprotected main - minimizing leaks and
improving customer satisfaction
Drives productivity - reducing manual meter
reading costs
Strengthens the system - decreasing the
potential for system failures
Replacing aging infrastructure achieves a
fundamental shift in performance, cost and
productivity at DTE Gas
i it l t
20
Gas Storage & Pipelines (GSP) has an asset
portfolio with multiple growth platforms
Growth Platforms
Purposefully located in the
best geology in North America
‒ Bluestone Pipeline &
Gathering
‒ Millennium Pipeline
‒ NEXUS Pipeline
‒ Link* Lateral & Gathering
Michigan Assets
Strategically located between
Chicago and Dawn trading
hubs
‒ Vector Pipeline
‒ Storage
‒ Gathering
Link
Lateral & Gathering
NEXUS Pipeline
DTE Gas
DTE Storage
Bluestone
Pipeline & Gathering
Michigan
Gathering
Birdsboro
Pipeline
* Includes Appalachia Gathering System and 55% of Stonewall Gas Gathering
21
• FERC certificate of construction expected 1H17
• In-service 4Q17
• Ohio interconnect agreements provide 1.75 Bcf/d of
market access
• Mainline expandable up to 2.0 Bcf/d
NEXUS
• Initial shipper demand greater than anticipated
‒ Firming up near-term growth plans
• Strong tie with existing markets; new market access to
Gulf and Mid-Atlantic / LNG exports
• Expansion potential over 1.0 Bcf/d
Link* Lateral & Gathering
Pipeline and gathering platforms provide unique
opportunities and synergies for long-term growth
* Includes Appalachia Gathering System and 55% of Stonewall Gas Gathering
22
GSP has a solid track record for earnings results
and expects to continue this success
* Reconciliation to GAAP reported earnings included in the appendix
GSP
Operating Earnings*
2011 2016 2021E
$127
$195 - $215
$57
(millions)
Pipeline and gathering
platforms strategically
situated to take advantage
of best geology in North
America
Assets form the base for
solid growth
Capital investment 2017-2021: $2.2 - $2.8 billion
New Projects
23
Power & Industrial Projects (P&I) operates three
distinct business lines across the United States
Industrial Energy Services
Renewable Energy
Reduced Emissions Fuel (REF)
• On-site utility services for
industrial and commercial
customers
• Coke and pulverized coal for
steel customers
• Wood-fired power plants
• Convert landfill gas to energy
• Projects to reduce emissions
from coal-fired plants
• Utility contracted
Typical contract
5-20 years
Contract duration
~6 years
Typical contract
10-25 years
Contract duration
~15 years
Contract duration
~5 years
24
Future growth focused on strategic utility-like
projects and asset acquisitions
Utility-Like Projects
Asset Acquisition
Distinct capabilities
Experience with large
industrial and commercial
customers
History of executing
utility-like long-term
contracts
Expertise in operations
and project management
Proficiency in providing
full suite of utility services
25
P&I’s new project growth will offset expiration
of reduced emissions fuel earnings
(millions)
P&I
Operating Earnings*
Replace short-term REF
earnings with long-term
contracted value
Development of
cogeneration and
utility-like services
Asset acquisition
Capital investment 2017-2021: $0.6 - $1.0 billion
2011 2016 2021E
New Projects
$100 - $110
$95
$38
* Reconciliation to GAAP reported earnings included in the appendix
26
• Overview
• Long-Term Growth Update
• Summary
27
Engaged employees create a safe work environment and drive great operational
results
Value driven utility investments provide an excellent customer experience while
ensuring affordable rates
Constructive regulatory environment and continued cost savings enable utilities to
earn authorized returns
Strategic and transparent growth opportunities in non-utility businesses offer
diversity in earnings and geography
Strong EPS and dividend growth that deliver premium total shareholder returns
Summary
28
Appendix
29
2017
Guidance
DTE Electric
DTE Gas
Gas Storage & Pipelines
Power & Industrial Projects
Corporate & Other
Growth segments**
Growth segments operating EPS
Energy Trading
DTE Energy
Operating EPS
Avg. Shares Outstanding
$610 - $624
143 - 151
140 - 150
90 - 100
(64) - (60)
$919 - $965
$5.12 - $5.38
$5 - $15
$924 - $980
179.5
$5.15 - $5.46
2016
Actuals
$622
138
127
95
(59)
$923
$5.14
$25
$948
179.5
$5.28
2017 operating EPS* guidance supports 5% - 7%
growth
(millions, except EPS)
* Reconciliation to GAAP reported earnings included in the appendix
** Total DTE Energy excluding Energy Trading
• 2017 operating EPS growth
segment guidance midpoint
growing 6.5% from 2016
original guidance of $4.93
• 2017 guidance assumes
return to normal weather
– 2016 included
significant weather
favorability at DTE
Electric
30
2016
Actual
2017
Guidance
DTE Electric
Distribution Infrastructure $567 $690
New Generation 131 45
Maintenance & Other 805 725
$1,503 $1,460
DTE Gas
Base Infrastructure $177 $200
NEXUS Related 94 90
Main Replacement* 124 145
$395 $435
Non-Utility $1,533 $900 - $1,100
Total $3,431 $2,795 - $2,995
2016
Actual
2017
Guidance
Cash From Operations $2.1 $1.9
Capital Expenditures (3.4) (3.0)
Free Cash Flow ($1.3) ($1.1)
Asset Sales & Other - -
Dividends (0.5) (0.6)
Net Cash ($1.8) ($1.7)
Debt Financing:
Issuances $2.7 $1.7
Redemptions (0.9) -
Change in Debt $1.8 $1.7
Capital Expenditures Cash Flow
2017 cash flow and capital expenditures guidance
support growth
(billions) (millions)
* Includes Main Renewal / Meter Move-out / Pipeline Integrity
31
DTE Electric plans $8.4 billion of investments
over the next 5 years with a focus on increasing
customer reliability
* Includes power reliability, existing generation maintenance, AMI, Ludington expansion and other investments
** Includes working capital and rate base associated with surcharges
Targeting 6% - 7% growth (millions)
~$15.6B ~$20.9B YE Rate Base**
$704M ~$923M Depreciation
2016A 2017E 2018E 2019E 2020E 2021E
Distribution
infrastructure
New
generation
Maintenance
and other
projects*
2017E - 2021E
Total
$2,000
$8,400
$3,200
$3,200
$1,503 $1,460
$1,700
$1,600
$1,800 $1,840
32
Customer reliability will be improved through
$1.8 billion of planned investments over the
next 5 years at DTE Gas
2016A 2017E 2018E 2019E 2020E 2021E 2017E - 2021E
Total
Base
infrastructure
Main
Replacement*
NEXUS related
$1,800
$100
$700
$1,000
~$3.6B ~$5.0B - $5.1B YE Rate Base**
$104M ~$154M Depreciation
** Includes working capital
$395
$435
$375
$330 $330 $330
* Includes main renewal, meter move-out and pipeline integrity
(millions) Targeting 7% - 8% growth
33
NEXUS continues to move forward with expected
in-service of 4Q 2017
Natural Gas LDC
Industrial Customer
Power Generation
Marcellus
/ Utica Dry
Gas Core
DTE
Gas
Vector
• Contractors secured
• Procurement update
– Compressors ordered
– Compressor air permits
secured
• FERC approval
– FEIS received
– Certificate of construction
expected 1H 2017
• Begin construction 1H 2017
34
Reconciliation of Other Reported to Operating
Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
2016 Actual
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
R d rnings 622$ 138$ 119$ 95$ (61)$ 913$ (45)$ 868$
Pl t cl sure - - - - - - - -
Link - - 8 - 2 10 - 10
Certain mark-to-market transactions - - - - - - 70 70
Operating Earnings 622$ 138$ 127$ 95$ (59)$ 923$ 25$ 948$
Net Income (millions)
2016 A u l
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Repor ed Earnings 3.47$ 0.77$ 0.66$ 0. 3$ 0.35)$ 5.08$ (0.25)$ 4.83$
Plant closure - - - - - - - -
Link 0.05 0.01 0.06 0.06
Certain mark-to-market transactions - - - - - - 0.39 0.39
Operating Earnings 3.47$ 0.77$ 0.71$ 0.53$ (0.34)$ 5.14$ 0.14$ 5.28$
EPS
After-tax items:
After-tax items:
*
**
* Total tax impact of adjustments to reported earnings: $51m
** Total tax impact of adjustments to reported EPS: $0.29
35
Reconciliation of 2011 Reported to Operating
Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors.
2011
DTE
Energy
Electric
Utility
Gas
Utility
Gas
Storage &
Pipelines
Unc. Gas
Prod.
Power &
Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $711 $434 $110 $57 ($6) $38 $52 $26
Michigan Corporate Income Tax
Adjust t (87) - - - - - - (87)
F rmi 1 Asset Retirement Obligation 9 9 - - - - - -
Discontinued operations 3 - - - 3 - - -
Operating Earnings $636 $443 $110 $57 ($3) $38 $52 ($61)
Net Income (millions)
2011
DTE
Energy
Electric
Utility
Gas
Utility
Gas
Storage &
Pipelines
Unc. Gas
Prod.
Power &
Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $4.18 $2.55 $0.65 $0.34 ($0.04) $0.22 $0.31 $0.15
Michigan Corporate Income Tax
Adjustment (0.50) - - - - - - (0.50)
Fermi 1 Asset Retirement Obligation 0.05 0.05 - - - - - -
Discontinued operations 0.02 - - - 0.02 - - -
Operating Earnings $3.75 $2.60 $0.65 $0.34 ($0.02) $0.22 $0.31 ($0.35)
EPS
* Total tax impact of adjustments to reported earnings: ($39)m
After-tax items:
After-tax items:
*
**
** Total tax impact of adjustments to reported EPS: ($0.23)
36
Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-
market adjustments and discontinued operations. DTE Energy management believes that operating
earnings provide a more meaningful representation of the company’s earnings from ongoing operations
and uses operating earnings as the primary performance measurement for external communications with
analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against
budget and to report to the Board of Directors.
In this presentation, DTE Energy provides guidance for future period operating earnings. It is likely that
certain items that impact the company’s future period reported results will be excluded from operating
results. A reconciliation to the comparable future period reported earnings is not provided because it is not
possible to provide a reliable forecast of specific line items (i.e. future non-recurring items, certain mark-to-
market adjustments and discontinued operations). These items may fluctuate significantly from period to
period and may have a significant impact on reported earnings.
Reconciliation of Other Reported to Operating
Earnings