DTE Energy

DTE’s moat is driven by efficient scale and regulatory franchise. In southeast Michigan and across its gas footprint, duplicative networks are uneconomic, creating a natural monopoly with regulated returns.

Weights and sub‑scores: Efficient scale 90 (weight 55), Intangibles and regulatory compact 75 (weight 25), Switching costs 65 (weight 10), Cost advantage 55 (weight 8), Network effects 20 (weight 2).

Weighted composite about 78. Reinforcers include long‑dated integrated resource planning and statutory clean energy targets that extend visibility for new renewables, storage and grid rebuilds, keeping rate‑base growth in line with customer affordability.

Erosion risks include distributed generation, behind‑the‑meter storage and political pushback on rates after severe weather, but Michigan’s 2023 clean energy package and the 2023 IRP settlement provide a structured path for coal retirements, storage buildout and reliability investments.