Aug2 Session Irene Dimitry (DTE)

1. ICF Energy Efficiency
Products Workshop
Irene Dimitry
VP of Business Planning & Development
August 2, 2017

2. 2
Today’s Discussion
• DTE Energy Company Overview
• Legislative Overview

3. DTE Gas
DTE Electric
Headquarters
• 2.1 million electric customers
• 1.2 million gas customers
• Approximately 10,000 employees
Our Businesses
Our Regulated Utility
• Fortune 300 company
• Market cap ~$16 billion
• Two utilities serving Michigan
• DTE Electric (founded 1886)
• DTE Gas (founded 1849)
• Non-utility businesses with operations
in nearly 20 states
DTE Energy is a diversified energy company with
deep Michigan roots
3

4. Energy Efficiency impacts customer satisfaction
for both residential and business customers
4
JD Power Drivers JD Power Attributes
Effort of DTE Energy to help you
manage your monthly usage
Variety of energy efficiency
programs offered
Keeping you informed about what
DTE Energy is doing to keep energy
costs low
Usefulness of suggestions on ways
to reduce energy usage and
monthly bills
Billing & Payment
Price
Power Quality & Reliability
Corporate Citizenship
Communications
Customer Service

5. DTE’s overall customer satisfaction scores remain
high for both residential studies
1. Residential Electric 2017 Overall CSI: Midwest Large Segment
2. Residential Gas 2016 Overall CSI: Midwest Large Segment
3. Business Electric and Business Gas: 2016 Calendar-Year Overall CSI: Midwest Region
781
757
753
752
752
750
748
748
746
745
744
743
739
723
600 700 800
Ameren Missouri
ComEd
Duke Energy-…
Alliant Energy
Xcel Energy -…
MIDWEST LARGE
AEP Ohio
DTE Energy
Consumers…
We Energies
Ameren Illinois
MidAmerican…
KCP&L
Ohio Edison
Business Electric3
742
728
728
723
721
721
720
719
715
713
710
707
704
704
703
702
600 700 800
MidAmerican…
DTE Energy
Ohio Edison
Xcel Energy-…
Consumers…
Duke Energy-…
Ameren Illinois
We Energies
ComEd
The…
KCP&L
Ameren…
Indiana…
Alliant Energy
Westar Energy
AEP Ohio
Residential Electric1
795
788
780
779
775
773
772
770
769
768
768
764
764
763
763
761
761
760
755
742
740
734
725
600 700 800
Louisville Gas &…
Kansas Gas Service
Laclede Gas
Black Hills Energy
We Energies
CenterPoint Energy-…
MidAmerican Energy
DTE Energy
Xcel Energy-Midwest
Consumers Energy
Peoples Gas
Vectren
MIDWEST REGION
Columbia Gas of Ohio
Duke Energy
Nicor Gas
NIPSCO
Dominion East Ohio…
Missouri Gas Energy
Wisconsin Public…
Atmos Energy-…
Alliant Energy
Ameren Illinois
Business Gas3
731
728
719
710
703
703
703
702
701
698
697
697
695
692
692
689
680
678
600 700 800
MidAmerican…
DTE Energy
Consumers Energy
CenterPoint…
Kansas Gas…
Nicor Gas
Columbia Gas of…
Vectren
Xcel Energy-…
Black Hills Energy
Laclede Gas
Duke Energy
NIPSCO
We Energies
Peoples Gas
Dominion East…
Ameren Illinois
Missouri Gas…
Residential Gas2
5

6. * 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%
Continuous improvement has enabled us to be an
industry leader in cost management
6

7. 7
Today’s Discussion
• DTE Energy Company Overview
• Legislative Overview

8. DTE is in the process of transitioning its electric
fleet to a portfolio that is less reliant on coal and
composed of cleaner energy sources
8
Potential Future Generation Mix
In 2005, the vast majority of
DTE’s electricity came from coal
40% of
Generation
Emits CO2
60% of
Generation
Emits no CO2
As the economics of energy
change, coal will be replaced
with natural gas & renewables
Coal Gas Nuclear Wind and OtherSolar

9. Michigan’s generation assets are aging, with 30%
of the fleet expected to retire by 2023
9
Age of Plant
(years)
DTE Electric
Harbor Beach 121 MW 45
Trenton
Channel
776 MW 64
River Rouge 651 MW 60
St. Clair 1,547 MW 64
Consumers
Electric
BC Cobb 312 MW 60
JC Weadock 312 MW 61
JR Whiting 345 MW 64
Michigan South
Central
Endicott 55 MW 34
Holland Board
of Public Works
James de
Young
63 MW 55
Lansing Board
of Water & Light
Eckert 331 MW 63
Wisconsin
Electric
Presque Isle 450 MW 43
Total 4,963 MW AVG Age ~56
Announced Coal Retirements in Michigan
(2016-2023)
Presque Isle
Endicott
James de Young
Eckert Station
BC Cobb
JC Weadock
JR Whiting
Trenton Channel
River Rouge
St. Clair
Harbor Beach

10. MISO continues to project that Michigan’s Lower
Peninsula will have a capacity shortfall and requires
additional capacity to meet resource needs1
101. Projected capacity located in zones against reserve requirement (GW). “2017 OMS MISO Survey Results.” June 2017
1.1 GW
0.6 GW
1.0 GW
1.6 GW
-0.3 GW
0.7 GW
-1.0 GW
0.9 GW
1.1 GW
1.5 GW
MISO Zone
Reserve
Margin
Zone1
MN,MT,ND,
SD,WestWI
Zone2
EastWIand
MIUP
Zone3
AI
Zone4
IL
Zone5
MO
Zone6
INandKY
Zone7
LowerMI
Zone8
AR
Zone9
LAandTX
Zone10
MS
2018 MISO Capacity Outlook

11. Governor Snyder and the MI Legislature
recognized this challenge and in December 2016,
passed comprehensive statewide energy policy
• Creates a transparent planning process for new
generation through Integrated Resources Planning
• Establishes reliability requirements for all electric
providers
• Revises rate case procedures & directs the MPSC to
study various issues
• Establishes a new goal of 35% combined renewable
energy and energy efficiency by 2025
• Raises renewable standard from 10% to 15% by 2021
Aric Nesbitt,
House Speaker
Rick Snyder,
Governor
Mike Nofs,
Senate Energy Chair
John Proos,
Senate Energy Chair
11

12. New energy policy legislation provides more
flexibility and motivation to implement additional
energy efficiency
12
Public Act 295 Public Act 342
Mandates
Spend Caps
Performance
Incentive (% Spend)
Decoupling
1. 1.000% - 1.250% = 15%; 1.251% - 1.500% = 17.5%; > 1.500% = 20%
2. Utilities must achieve at least 0.5% gas savings to qualify for decoupling
Clean Energy Goal
Eliminated
None
0.75%
No Yes2
Electric GasElectric Gas
1%
2% of revenue
Up to 15%
No Yes
0.75%
None
Three-tiered shared incentive mechanism1
35% EE & Renewables
by 2025
1% thru 2021

13. Feb Apr Jun Aug Oct Dec Feb April Jun
2017 2018
State reliability mechanism capacity charge filing
Net metering collaborative
Certificate of Necessity
Performance based rates collaborative
Renewable case review
Established by 2016 legislation Additional filings
We are working with the MPSC to implement the
2016 legislation. DTE is planning to file
additional cases as well
Electric rate case
13
Integrated resource plan (IRP) collaborative