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Business Update
January 12, 2017
EXHIBIT 99.1
2
Safe Harbor Statement
Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, FERC, MPSC, NRC,
and 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, terrorism or cyber
attacks; 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; 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 2015 Form 10-K and 2016 Forms 10-Q (which sections are incorporated by reference herein), and in
conjunction with other SEC reports filed by DTE Energy and DTE Electric.
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2016 was a successful year for DTE with a
number of positive developments
Increased operating EPS* growth rate to 5% - 7% from 5% - 6%
Raised targeted dividend growth rate to ~7% over next 3 years
Received constructive rate order for gas utility
Received final environmental impact statement for NEXUS
Received FERC approval for Millennium’s Valley Lateral project
Best safety performance in company’s history
Passed constructive Michigan energy policy legislation
* Reconciliation to GAAP reported earnings included in the appendix
4
• Overview
• Long-Term Growth Update
• Summary
5
Growth is driven by strong, stable utilities and
complementary non-utility businesses
DTE Electric
• Electric generation
and distribution
• 2.2 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
Growth driven by infrastructure investments
aimed at improving customer reliability
Energy Trading
• Active physical and
financial gas and power
marketing company
Growth driven by strategic opportunities
75%-80% Utility
20%-25% Non-Utility
DTE Gas
• Natural gas
transmission, storage
and distribution
• 1.2 million customers
• Fully regulated
6
Success is tied to our aspiration and continued
focus on our system of priorities
To be the best-operated energy company in North America
and a force for growth and prosperity in the communities where we live and serve
CUSTOMER
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%
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(dollars per share)
2011 2016 2017
$2.35
$3.08
5-year dividend growth rate of
5.6% from 2011 - 2016
Increased dividend 7.1% for
2017
Targeting annual dividend
increases of ~7% in 2018 and
2019
Phase-in payout ratio to be
in-line with peer average
More than 100 years of
continuous dividend payments
Annualized Dividend
Increased annualized dividend by 7.1%
$3.30
9
DTE has consistently delivered total shareholder
return above the peer average
65%
117%
216%
46%
75%
123%
DTE Energy
S&P 500 Utilities
10-YR 5-YR
Total Shareholder Return
(Bloomberg as of 12/31/16)
Top quartile
Total return at top quartile
of S&P 500 Utilities
3-YR
10
Minimal regulatory lag
Solid ROEs
Unique recovery
mechanisms
Source: Barclays, March 2016
Top Tier
Michigan’s regulatory environment is one of the
best in the country
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Constructive Michigan energy policy was passed
by both the House and Senate
Capacity requirement for retail open access (ROA) providers
10% ROA cap remains
Certificate of Need / integrated resource plan
10-month rate case cycle
15% renewable standard by 2021
100% ownership of incremental
renewable generation allowed
Energy efficiency incentives improve
Revenue decoupling remains for gas
12
DTE Energy is well-positioned as the country
transitions to new leadership
Energy policy
DTE electric generation transformation not dependent on the Clean
Power Plan; replacing aging coal plants and focusing on customer
reliability and affordability
Proposed tax reform
Reduce customer rates
Benefit for future capital investments
13
• Overview
• Long-Term Growth Update
• Summary
14
Design detailed roadmap for the transformation of our business that
ties near-term work to long-term success providing 30% - 40% cost
reductions over the next decade
Apply continuous improvement
Shift from coal to natural gas
Distribution improvements
Advanced metering
Enhanced customer channels
With significant investment ahead, DTE will define
customer, operational and productivity goals to
guide the long-term transformation of our business
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2017 – 2021 Plan
2012 – 2016 Plan
$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
Growth through 2021 fueled by investment in utility
infrastructure and generation along with midstream
opportunities
+12.5%
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Generation and distribution infrastructure
replacement will 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
2015
Electric Capacity Shift
(GW)
15%
30%-
45%
15%-
30%
10%
20%
55%
25%
15%
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Gas generation and renewables will replace coal
fired generation
Belle River St. Clair River Rouge
Retirements*
Additions*
Wind / Solar
Trenton
New gas plant
* Timing and mix is 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
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Significant emissions reductions have already been
achieved and we continue on the path to clean 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 75% reduction expected
by 2030
67%
Reduction
61%
Reduction
40%
Reduction
85%
Reduction
95%
Reduction
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Distribution reliability investments focus on
increasing customer satisfaction and driving
efficiencies
Tree Trimming
Infrastructure Redesign
Infrastructure Resilience
Technology Enhancements
Enhanced program has resulted in a 70% reliability
improvement on trimmed circuits
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
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Infrastructure renewal and replacement will improve
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
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Replacing aging infrastructure ensures reliable
gas service and achieves a fundamental shift in
performance, cost and productivity
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
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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
* Includes Appalachia Gathering System (AGS) and Stonewall Gas Gathering (SGG)
Link*
Lateral & Gathering
NEXUS Pipeline
DTE Gas
DTE Storage
Bluestone
Pipeline & Gathering
Michigan
Gathering
Birdsboro
Pipeline
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Pipeline and gathering platforms provide unique
opportunities and synergies for long-term growth
Bluestone Pipeline & Gathering
• Well positioned for future expansions
• Bi-directional capabilities serving pipeline constrained Northeast
markets
Millennium Pipeline
• 0.1 Bcf/d lateral expansion 2Q17; 0.2 Bcf/d expansion 2H18
• Well positioned for future expansions
• Serves pipeline constrained Northeast markets
NEXUS
• Serves growing demand in the Midwest and Canadian markets
• Late stages of planning for spring construction
• Ohio interconnect agreements provide 1.75 Bcf/d of market access
• Mainline expandable up to 2.0 Bcf/d
Link Lateral & Gathering
• Strong tie to existing markets; new market access to Gulf and
Mid-Atlantic / LNG exports
• Expansion potential over 1.0 Bcf/d
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P&I operates three distinct business lines across
the United States
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• 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
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Focus on strategic opportunities in utility-like
projects and asset acquisitions for future growth
U
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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
26
• Overview
• Long-Term Growth Update
• Summary
27
Summary
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
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Appendix
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A strong balance sheet remains a key priority
and supports growth
21%
2016E 2017-2019E
52%
2016E 2017-2019E
Leverage*
* Debt excludes a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity
Funds from Operations** / Debt*
Target
50%- 53%
Target
20% +
• Cash and credit metrics are key
performance measures in our
incentive plans
• No equity issued in 2016
‒ Acquisition related equity of
$675 million in late 2019
(through convertible equity
units)
‒ No other equity planned
through 2019
• Consistently achieve our cash
targets and credit metrics
** Funds from Operations (FFO) is calculated using operating earnings
30
DTE Electric plans $8.4 billion of investments
over the next 5 years with a focus on increasing
customer reliability
(millions)
2017E 2018E 2019E 2020E 2021E
Distribution
infrastructure
New
generation
Maintenance
and other
projects*
2017E - 2021E
Total
$2,000
$8,400
$3,200
$3,200
$1,550 $1,550
$1,700
$1,800 $1,800
* Includes power reliability, existing generation maintenance, AMI, Ludington expansion and other investments
31
Customer reliability will be improved through
$1.8 billion of planned investments over the
next 5 years at DTE Gas
2017E 2018E 2019E 2020E 2021E 2017E - 2021E
Total
Base
infrastructure
Main
Replacement*
NEXUS related
$1,800
$100
$700
$1,000
$430
$380
$330 $330 $330
(millions)
* Includes main renewal, meter move-out and pipeline integrity
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Regulatory Update – Electric and Gas
• Self implemented
general rates 3Q
DTE Gas DTE Electric
2017
2016
2018+
• Final rate order and IRM
ruling 4Q
– $122 million rate
order
– 10.1% ROE
• Final rate order 1Q
• File rate case 2Q
• Annual rate cases • Expect rate case filing
2018/2019
33
NEXUS continues to move forward with expected
in service 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 1Q 2017
• Begin construction 1Q 2017
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Reconciliation of Other Reported to Operating
Earnings
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.
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. These items may fluctuate
significantly from period to period and may have a significant impact on reported earnings.