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EXHIBIT 99.1
Business Update
August 16, 2017
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 and 2017 Forms
10-Q (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.
2
3
• Overview
• Long-Term Growth Update
• Summary
4
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, store and gather
natural gas
• 5 pipelines, 91 Bcf of storage
Power & Industrial Projects
• Own and operate energy
related assets
• 68 sites, 17 states
Energy Trading
• Active physical and financial
gas and power marketing
company
DTE earnings are 90-95% regulated or contracted
Growth is driven by strong, stable utilities and
complementary non-utility businesses
5
Infrastructure investments drive
regulated utility growth
Strategic and transparent growth
opportunities in non-utility businesses
provide diversity in earnings and
geography
Constructive regulatory structure and
continued cost savings enable utilities
to earn their authorized returns
Distinctive operational excellence and
customer satisfaction deliver service
integrity
Strong BBB credit rating supports
dividend and EPS growth
5%-7%
Operating EPS* growth target
~7% dividend growth targeted
in 2018 and 2019
Premium
total shareholder return
Strong
balance sheet
* Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
Our business strategy is fundamental to creating
value for investors
6
• Overview
• Long-Term Growth Update
• Summary
7
2017 – 2021 Plan
2012 – 2016
$12 billion
$13.5 billion
2017 – 2021 Capital Plan
Electric ................ $8.4 billion
Distribution infrastructure,
new generation, replacement
Gas ...................... $1.8 billion
Base infrastructure, NEXUS
related, main replacement
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
8
DTE Electric Investment
New generation
• Replace remaining coal with cleaner energy
Distribution infrastructure
• Move electric reliability to 1st quartile
Replacement and other
• Reduce costs through productivity and efficiency improvements
2012 – 2016 2017 – 2021
$7.4 billion $8.4 billion $9.8 billion
61%
2016
2030
Scenario*
Electric Generation Shift
(% of GWh)
Renewables
Gas
Coal
21%
10%
8%
20%
20%
40%
20%
40%
40%
20%
2040
Scenario*
Nuclear/Other
* Timing and mix subject to change
2022 – 2026
DTE Electric’s generation and distribution
infrastructure replacement will continue to improve
service to customers over the next 10 years
9
DTE Gas Investment
Base infrastructure
• Transmission, compression, distribution, storage
Main replacement
• Strengthen gas infrastructure by reducing planned main
replacement cycle by half
NEXUS related
2012 – 2016 2017 – 2021
$1.4 billion $1.8 billion
2022 – 2026
$1.7 billion
DTE Gas’ infrastructure renewal and replacement
improves service to customers over the next
10 years
10
Growth Platforms
Purposefully located in the
best geology in North America
‒ Millennium Pipeline
‒ Bluestone Pipeline &
Gathering
‒ Link* Lateral & Gathering
‒ NEXUS Pipeline
Michigan Assets
Strategically located between
Chicago and Ontario, Canada
trading hubs
‒ Vector Pipeline
‒ Storage
‒ Gathering
D
Link
Lateral & Gathering
NEXUS Pipeline
DTE Gas
DTE Storage
Bluestone
Pipeline & Gathering
Michigan
Gathering
Birdsboro
Pipeline
* Includes Appalachia Gathering System (AGS) and 55% of Stonewall Gas Gathering (SGG)
D
D
Gas Storage & Pipelines (GSP) has an asset
portfolio with multiple growth platforms
11
Renewable Energy Industrial Energy Services
Reduced Emissions Fuel
(REF)
• Wood-fired power plants
• Landfill gas to energy
conversion
• On-site utility services for
industrial and commercial
customers
• Coke and pulverized coal
for steel customers
• Projects to reduce
emissions from coal-fired
plants
• Utility contracted
Typical contract
10-25 years
Contract duration
14 years
Typical contract
5-20 years
Contract duration
6 years
Contract duration
4.5 years
Power & Industrial Projects (P&I) operates three
distinct business lines across the United States
12
• Overview
• Long-Term Growth Update
• Summary
13
* Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
• On track to achieve 2017 operating EPS* guidance given strong first-half financial
performance
• Driving utility growth through infrastructure investments focused on improving
reliability and the customer experience
• Transforming generation fleet to reduce carbon emissions by more than 80 percent
and provide cleaner energy to customers
• Continuing strategic and sustainable growth in non-utility businesses
• Delivering strong EPS and dividend growth that drive premium total shareholder
returns
Summary
14
Appendix
15
(millions, except EPS)
* Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
** Total DTE Energy excluding Energy Trading
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
Original
Guidance
Revised
Guidance
$610 - $624
143 - 151
145 - 155
100 - 110
(64) - (60)
$934 - $980
$5.21 - $5.46
$10 - $20
$944 - $1,000
179.5
$5.26 - $5.57
Increased 2017 operating EPS* guidance midpoint
11 cents to $5.42 per share
16
* Source: Bloomberg (as of 6/30/2017)
2011 2012 2013 2014 2015 2016 2017
Annualized Dividend per Share
$2.35
$3.30
Total Shareholder Return*
(dollars per share)
Targeting ~7% dividend increases
in 2018 and 2019
113%
238%
79%
140%
DTE Energy
S&P 500 Utilities
10-YR5-YR
Top quartile
Top quartile of S&P 500 Utilities for
5 and 10 year periods
Consistently provide value to shareholders
17
* 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
21%
2016 2017-2019E
51%
2016 2017-2019E
Leverage*
Funds from Operations** / Debt*
Target
50% - 53%
Target
20% +
• Update on equity issuances:
‒ 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
• $1.7 billion of available liquidity at
June 2017
• Successfully extended the existing
$1.9 billion credit facilities to 2022
Cash flow and balance sheet remain strong
18
2016
Actual
2017
Guidance
DTE Electric
Distribution infrastructure $567 $690
New generation 131 45
Replacement & 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 $0.0 $0.0
Dividends (0.5) (0.6)
Net cash ($1.8) ($1.7)
Debt financing:
Issuances $2.7 $2.0
Redemptions (0.9) (0.3)
Change in debt $1.8 $1.7
Capital ExpendituresCash Flow
(billions) (millions)
Cash flow and capital expenditures guidance
support growth target
19
Committed to providing cleaner energy to customers
and reducing carbon emissions by over 80%
Carbon emissions reduction goals
• Retiring aging coal-fired plants - ending use of coal by 2040
• Adding 3,500 megawatts of natural gas-fired energy capacity to supply 24/7
power and ensure reliability
• Constructing up to 4,000 megawatts of additional renewable energy capacity
Early 2020s
2030
2040
2050
2005
45%
75%
30%
>80%
20
Minimal regulatory lag
Solid ROEs
Unique recovery
mechanisms
Source: Barclays, February 2017
Top Tier
Michigan’s regulatory environment is one of the
most constructive in the United States
21
DTE Gas
DTE Electric
• Expect to file late 2017 / early 2018
• General rate case - April 2017 (U-18255)
– Requested rate recovery: $231 million; 10.5%
ROE
Staff testimony: August 2017
Cross examination: October 2017
Self implementation: November 2017
Briefs: November 2017
Final order: by April 2018
• Capacity charge case - April 2017 (U-18248)
• 5 year draft electric distribution plan - June 2017
(U-18014)
• Certificate of Necessity filing - July 2017
• Annual rate cases 2018+
Regulatory update
22Source: IHS
15.0 15.5 16.4
22.7 23.5
2013 2014 2015 2016 2017E
Housing Start Ups
(000s)
Lowest unemployment in
Michigan since 2000
7th top state for business*
Michigan has the highest
number of manufacturing jobs
since 2007**
$407 $414
$421 $429
$437
2013 2014 2015 2016 2017E
Gross State Product
(billions)
7th best state to make a living
in 2016***
* Source: CNBC
** Source: U.S. Department of Labor
8.5%
7.1%
5.4% 4.9% 4.9%
2013 2014 2015 2016 2017E
*** Source: Forbes
Unemployment Rate
Positive trends continue with Michigan’s economy
23
* 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 ~$20.9BYE Rate Base**
$704M ~$923MDepreciation
2016A 2017E 2018E 2019E 2020E 2021E
Distribution
infrastructure
New
generation
Replacement
and other*
2017E - 2021E
Total
$2,000
$8,400
$3,200
$3,200
$1,503 $1,460
$1,700
$1,600
$1,800$1,840
DTE Electric plans $8.4 billion of investments over
the next 5 years with a focus on increasing customer
reliability
24
2016A 2017E 2018E 2019E 2020E 2021E 2017E - 2021E
Total
Base
infrastructure
Main
replacement*
NEXUS related
$1,800
$100
$700
$1,000
$3.7B ~$5.1B - $5.2BYE Rate Base**
$104M ~$154MDepreciation
** Includes working capital
$395
$435
$375
$330 $330 $330
* Includes main renewal, meter move-out and pipeline integrity
(millions) Targeting 7% - 8% growth
Customer reliability will be improved through $1.8
billion of planned investments over the next 5 years
at DTE Gas
25
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
2016 Actual
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
R r d rnings 622$ 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 0.53 (0.35) 5.08 (0. ) 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
Reconciliation of reported to operating earnings
(non-GAAP)
26
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 reported to operating earnings
(non-GAAP)