AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 29/10/2026
Moat69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Operating electric infrastructure, approximately 2.3 million electric customers and extensive gas infrastructure in franchised markets demonstrate a strong local delivery position. Duplication economics and exclusive electric rights remain unquantified.
durability · 3/4 · Continuing deliveries and implemented 15-year regulatory-asset recovery support persistence. Approved Oracle minimum charges and investment protections reinforce prospective demand continuity, but future load and returns are unproven. Actual disallowances preclude exceptional durability.
customer dependency · 3/4 · Recurring electric deliveries and growth from approximately 1.352 million to 1.361 million active gas meters demonstrate continuing network use. This is indirect dependency evidence; alternative supply access and industrial fuel switching limit dependence.
erosion resilience · 2/4 · Established networks, recovery mechanisms and completed reliability improvements provide protection. Realized disallowances and recovery delays constrain that protection. Customer-generation obsolescence is a prospective risk, not demonstrated erosion.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Implemented regulatory-asset recovery with a 9.0% return on equity demonstrates realized recovery protection, offset by actual disallowances. The issuer reports residential bills rising 7.2% over its 2021–2026 comparison period, but bill changes do not isolate tariff pricing or demonstrate unilateral power.
retention · 3/4 · Recurring deliveries, increased active gas meters and slightly higher residential and commercial customer counts support strong repeat demand indirectly. Long-term Vantage arrangements add continuity. No retention percentage or customer response to specific tariff changes is disclosed; future data center demand is not counted as realized retention.
margin resilience · 2/4 · Utility recovery mechanisms and Vantage commodity pass-through protect against some input-price changes. Recovery revenue can simply offset expenses; disallowances, regulatory lag and retained operating and default risks limit protection. This supports mixed resilience rather than unrestricted price increases.
contractual freedom · 1/4 · MPSC authority over utility rates, service conditions and cost recovery materially limits discretion. Energy Trading can sell at market prices, and non-utility contracts provide pass-through protection, but these do not establish broad ability to impose favorable prices. Oracle contractual protections also required regulatory approval.
Predictability48
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 25.42
- Positive FCF years (%)
- 0.00
- FCF margin volatility (pp)
- 0.89
- observedAnnualPeriods
- 5.00
Financial strength4
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 11.35
- currentRatioGrade
- 4.31
- Net debt / operating income (x)
- 10.87
- Interest coverage (x)
- 2.25
- Current ratio (x)
- 0.80
Capital allocation46
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 6.70
- 3-year average dilution (%)
- 2.04
- 3-year average SBC / revenue (%)
- 0.40
- cashConversionGrade
- 0.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash flow of $1.679 billion compared with $2.688 billion of utility plant expenditures and $467 million of dividends demonstrates external funding dependence. Implemented recovery and approved Oracle investment protections support spending economics, while disallowances and $112 million of additional litigation penalties temper the assessment. Planned recurring equity issuance is financing intent, not completed dilution or demonstrated investment returns.
incentive alignment · 3/4 · Actual 2025 CEO compensation was 69% variable and at risk, and previously granted performance shares were paid in 2025. A disclosed restatement recovery policy and demonstrated director ownership compliance support implemented alignment. Executive ownership compliance and exceptional incentive effectiveness remain unestablished.
execution · 2/4 · Completed automation, grid hardening and pipeline replacement, together with reported reliability improvements, demonstrate operating achievements. Weather contributed to outage improvements. Actual litigation penalties and power-supply disallowances provide material counterevidence; approved Oracle contracts and construction commencement do not yet prove successful operating delivery.
governance · 3/4 · Independent committees, executive sessions actually held, annual elections, majority voting and the disclosed recovery policy establish substantive governance arrangements. May 2026 voting results confirm auditor ratification and advisory compensation approval. These do not establish exceptional oversight effectiveness.
Evidence
DTE Electric owns and operates 702 distribution substations with a capacity of approximately 37,870,000 kilovolt-amperes (kVA) and approximately 456,900 line transformers with a capacity of approximately 33,770,000 kVA.
2025 Form 10-K, Properties: electric distribution substations and transformers · Filed 17/02/2026
The distribution system includes approximately 21,000 miles of distribution mains, approximately 1,242,000 service pipelines, and approximately 1,361,000 active meters.
2025 Form 10-K, gas distribution system and active meters · Filed 17/02/2026
Strategy and Competition
DTE Gas' strategy is to ensure the safe, reliable, and cost-effective delivery of natural gas service within its franchised markets in Michigan.
2025 Form 10-K, DTE Gas Strategy and Competition · Filed 17/02/2026
Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million residential, commercial, and industrial customers in southeastern Michigan.
First-quarter 2026 Form 10-Q, Electric segment customer base · Filed 30/04/2026
7,658
Total DTE Electric Sales
51,769
49,004
46,781
DTE Electric Deliveries
Retail and wholesale
40,078
40,105
39,123
Electric retail access
4,514
4,315
4,381
Total DTE Electric Sales and Deliveries
44,592
44,420
43,504
DTE Electric sales and deliveries increased in 2025 primarily due to favorable weather compared to 2024.
2025 Form 10-K, electric sales and deliveries · Filed 17/02/2026
The distribution system includes approximately 20,500 miles of distribution mains, approximately 1,238,000 service pipelines, and approximately 1,352,000 active meters.
2024 Form 10-K, gas distribution system and active meters · Filed 13/02/2025
The remaining amount is being recovered through a regulatory asset with a return on equity of 9.0% and is being amortized over a 15-year period beginning in February 2025.
2025 Form 10-K, implemented regulatory-asset recovery · Filed 17/02/2026
A Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related, and purchased power costs
PTCs
Production tax credits
REC
Renewable Energy Credit
REF
Reduced Emissions Fuel
Registrants
DTE Energy and DTE Electric
Retail access
Michigan legislation provided customers the option of access to alternative suppliers for electricity and natural gas
RPS
Renewable Portfolio Standard program, which includes a mechanism authorized by the MPSC allowing DTE Electric to recover through rates its renewable energy costs
SIP
State Implementation Plan
SO2
Sulfur Dioxide
SOFR
Secured Overnight Financing Rate
TCJA
Tax Cuts and Jobs Act of 2017, which reduced the corporate Federal income tax rate from 35% to 21%
Topic 606
FASB issued ASU No.
Second-quarter 2026 Form 10-Q, cost-recovery mechanisms and retail access definitions · Filed 28/07/2026
12 • Contracts approved by MPSC and construction initiated; demand expected to ramp in the 2027/2028 timeframe • Load ramp supported by existing capacity and new energy storage investments; nearly $2 billion storage investment in plan • 19-year power supply agreement with minimum monthly charges; 15-year energy storage contract covers capital investment; termination fees combined with credit and collateral requirements protect existing customers Data center opportunities continue to progress; 1.4 GW Oracle data center approved and moving forward; executed 1 GW agreement with Google Oracle 1.4 GW (approved and in plan) Google 1.0 GW (upside to plan) Additional Pipeline 5-6 GW (upside to plan) • Contracts filed with MPSC for approval; demand expected to fully ramp by end of 2028 • Load ramp supported by up to 1,600 MW of renewable generation, 480 MW of energy storage and 350 MW of demand response; additional ~700 MW of longer-term generation will be identified through the IRP process • Generation and storage requirements could drive ~$5 billion1 incremental capital investment through 2032 • 20-year power supply agreement with minimum monthly charges; 20-year clean capacity acceleration agreement covers renewable and storage investments; termination fees combined with credit and collateral requirements protect existing customers • Advanced discussions with additional hyperscalers for ~2 GW of additional load • Multiple other opportunities with hyperscalers and other customers for an additional 3-4 GW of new load • Additional demand expected longer-term from customer expansions • Opportunities would require investments in new baseload generation, renewables and/or related storage investment; generation requirements will be solidified through the IRP process 1.
September 28, 2026 business update, data center contract terms and approval status · Filed 28/09/2026
The MPSC issues orders pertaining to rates, recovery of certain costs, including the costs of generating facilities and regulatory assets, conditions of service, accounting, and operating-related matters.
2025 Form 10-K, MPSC authority over rates and cost recovery · Filed 17/02/2026
Some large commercial and industrial customers have the ability to switch to alternative fuel sources such as coal, electricity, oil, and steam.
2025 Form 10-K, industrial and commercial fuel-switching capability · Filed 17/02/2026
Such developments may impact the price of energy, may affect energy deliveries as customer-owned generation becomes more cost-effective, may require further improvements to our distribution systems to address changing load demands, and could make portions of our electric system power supply and/or distribution facilities obsolete prior to the end of their useful lives.
2025 Form 10-K, emerging technology and customer-generation risks · Filed 17/02/2026
The change in both periods was primarily due to MPSC disallowances of previously recorded capital expenditures, including $12 million from the January 2025 rate order written off in 2024 and $25 million from the December 2023 rate order written off in 2023.
2024 Form 10-K, realized capital-expenditure disallowances · Filed 13/02/2025
Operating earnings can be reconciled to our reported earnings as set forth in the following table:
2025
Reported Earnings per Share
$
7.03
MPSC disallowance of power supply costs previously recorded
0.16
Revision in asset retirement obligations
0.22
Estimated litigation outcome regarding EES Coke Battery
0.03
Certain mark-to-market transactions
(0.05)
Gain on sale of equity investment
(0.12)
Income tax related adjustments
0.09
Operating Earnings per Share
$
7.36
Items for Shareholder Vote at this Meeting
2026 proxy statement, 2025 reported-to-operating earnings reconciliation · Filed 12/03/2026
The Registrants are exposed to short-term cash flow or liquidity risk as a result of the time differential between actual cash settlements and regulatory rate recovery.
Second-quarter 2026 Form 10-Q, regulatory recovery timing and liquidity risk · Filed 28/07/2026
Source: EIA and Federal Reserve Economic Data (FRED) Data center projects combined with our continuous improvement culture will sustain our historical success of managing customer affordability Top tier affordability Total electric residential bill change % from 2021 to 20261 Electric residential bill as a percent of median household income2 2.6% 0.0% 2.4% 2.2% 2.0% 1.8% Michigan National Average 2.0% 1.8% 7.2% 26.4% 27.1% DTE Electric Great Lakes average National average ✓ Data center load growth helps drive affordability headroom for existing customers as excess capacity is sold and fixed costs are spread over a larger base ✓ Our distinctive continuous improvement culture will continue to drive cost management ✓ Shift from coal to renewables and natural gas drives fuel and O&M cost reductions ✓ Diversified energy mix maintains flexibility to adapt to future technology advancements ✓ IRA supports transition to cleaner energy while supporting customer affordability goals We continue to prioritize affordability
September 28, 2026 business update, residential bill comparison and prospective affordability claims · Filed 28/09/2026
Legal entities within the DTE Vantage segment enter into long-term contractual arrangements with customers to supply energy-related products or services.
Second-quarter 2026 Form 10-Q, DTE Vantage long-term customer arrangements · Filed 28/07/2026
The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk.
Second-quarter 2026 Form 10-Q, DTE Vantage commodity pass-through and retained risks · Filed 28/07/2026
Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.
Second-quarter 2026 Form 10-Q, recovery revenues offset by expenses · Filed 28/07/2026
Accrued pension liability
(18)
(18)
Accrued postretirement liability
(5)
(4)
Derivative assets and liabilities
13
29
Regulatory assets and liabilities
198
143
Other current and noncurrent assets and liabilities
76
66
Net cash from operating activities
1,679
1,729
Investing Activities
Plant and equipment expenditures — utility
(2,688)
(1,811)
Plant and equipment expenditures — non-utility
(33)
(33)
Proceeds from sale of assets
—
5
Proceeds from sale of nuclear decommissioning trust fund assets
475
371
Investment in nuclear decommissioning trust funds
(477)
(373)
Distributions from equity method investees
5
7
Investment in notes receivable
(127)
(167)
Principal collections on notes receivable
16
10
Other
(85)
(31)
Net cash used for investing activities
(2,914)
(2,022)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs
2,571
2,383
Redemption of long-term debt
(137)
(1,185)
Short-term borrowings, net
(882)
(470)
Dividends paid on common stock
(467)
(435)
Other
(16)
(4)
Net cash from financing activities
1,069
289
Net Decrease in Cash, Cash Equivalents, and Restricted Cash
(166)
(4)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
250
88
Cash, Cash Equivalents, and Restricted Cash at End of Period
$
84
$
84
Supplemental disclosure of non-cash investing and financing activities
Second-quarter 2026 Form 10-Q, DTE Energy consolidated cash flows · Filed 28/07/2026
The increase in the six-month period was primarily due to additional litigation penalties in the Steel business relating to the EES Coke judgment of $112 million and higher costs in the On-site business of $4 million, Steel business of $3 million, and Renewables business of $3 million.
Second-quarter 2026 Form 10-Q, additional EES Coke litigation penalties · Filed 28/07/2026
Maintaining strong cash flows, balance sheet and credit profile 9 Credit ratings S&P Moody’s Fitch DTE Energy (unsecured) BBB Baa2 BBB DTE Electric (secured) A Aa3 A+ DTE Gas (secured) A A1 A Strong balance sheet supports robust customer-focused investment agenda • Customer-focused capital investment plan is supported by consistent, healthy cash flows • Targeting equity issuances of $500 - $600 million annually 2026 – 2028, with similar levels planned through 2030 − The equity need is due to a ~$3.5 billion increase in capital over the next 3 years to support data center load growth and generation investments − Plan may also include additional junior subordinated debt to support balance sheet metrics • Effectively managing debt maturities to support long-term plan • Maintaining solid investment-grade credit ratings; targeting ~15% FFO / Debt1 1.
September 28, 2026 business update, credit ratings and planned equity financing · Filed 28/09/2026
For 2025, 69% of our President and Chief Executive Officer’s compensation was performance-based or “variable, at-risk”—none of which is reflected in the rates of our customers.
2026 proxy statement, actual 2025 CEO compensation mix · Filed 12/03/2026
Performance Shares Paid in 2025:
The performance shares granted in 2022 were paid in early 2025.
2026 proxy statement, performance shares paid in 2025 · Filed 12/03/2026
If the Company is required to prepare an accounting restatement due to material noncompliance with federal securities laws, the Company will seek to recover from any current or former executive any previously awarded incentive-based compensation (including awards under the Annual Incentive Plan and the Long-Term Incentive Plan) that is greater than the amount that would have been awarded based upon the restated financial results.
2026 proxy statement, incentive compensation recovery policy · Filed 12/03/2026
As of December 31, 2025, all directors met the initial common stock ownership requirement and all those directors who have served as a director for at least five years after their initial election fulfilled the five-year requirement.
2026 proxy statement, director ownership compliance at December 31, 2025 · Filed 12/03/2026
Continued focus on strategic investments and operational execution to drive improvement in reliability for our customers Technology and Automation • Installed 730 automatic devices in 2025; 20% more than planned through efficiency gains • Another 500+ additional devices planned for 2026 3 minutes AW SAIDI savings Infrastructure Resilience and Hardening • Completed 224 miles of 4.8kV hardening • Completed 969 miles of PTMM in 2025 and ramping up to 1,700 miles in 2026 26 minutes AW SAIDI savings Infrastructure Redesign and Modernization • Converted 72 miles2 of 4.8kV to 13.2kV, and rebuilt 22 miles of subtransmission • 2026 plans include our highest volume of conversion miles yet 6 minutes AW SAIDI savings Tree Trimming • Completed the Surge • Piloting expansion model with brush opt-out, overhang removal, and priority tree boundary extension 20 minutes AW SAIDI savings Pillar Highlights Customer Benefit in 20251 2 3 4 • Technology and Automation ✓ Fully automate the distribution system by end of 2029 and begin subtransmission automation work in 2029 • Infrastructure Resilience and Hardening ✓ Complete PTMM on half of the system by 2029 with 100% of pole top inspections completed • Infrastructure Redesign and Modernization ✓ Increase conversion of 4.8 kV circuits to address critical system needs • Tree Trimming ✓ Remain on tree trim cycle for all circuits and enhance inspection and maintenance practices 4 $11 billion distribution investment plan over the next 5 years 1 2 3 4 On track with goal of reducing power outages by 30% and cutting outage time in half by 2029
September 28, 2026 business update, completed grid work and reported reliability benefits · Filed 28/09/2026
These enhancements, combined with strategic planning, process improvements and less extreme weather, enabled us to restore power faster than ever before during storms, reducing outage time by 67% from 2024 and 90% from 2023.
2026 proxy statement, outage improvements and weather contribution · Filed 12/03/2026
The team replaced more than 180 miles of aging pipelines and achieved the fastest leak response time in our company’s history.
2026 proxy statement, completed pipeline replacement and leak response · Filed 12/03/2026
■All Board committees are composed exclusively of independent directors.
2026 proxy statement, independent Board committees · Filed 12/03/2026
■Independent directors met in executive sessions chaired by the Lead Independent Director at seven of the eight 2025 Board meetings.
2026 proxy statement, independent executive sessions held in 2025 · Filed 12/03/2026
■All of our directors are elected annually.
2026 proxy statement, annual director elections · Filed 12/03/2026
■We have a majority vote requirement for uncontested director elections.
2026 proxy statement, majority voting requirement · Filed 12/03/2026
Williams
152,152,076
3,464,990
20,539,866
(ii) Shareholders ratified the appointment of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for the year 2026, with the votes shown:
For
Against
Abstentions
Broker Non-Votes
174,185,300
1,753,866
217,766
0
(iii) Shareholders approved, on an advisory basis, the overall executive compensation paid to the Company's named executive officers as more fully described in the Proxy, with the votes shown:
For
Against
Abstentions
Broker Non-Votes
149,823,374
5,061,958
731,735
20,539,866
Item 9.01.
May 12, 2026 Form 8-K, auditor ratification and advisory compensation vote results · Filed 12/05/2026
Regulation
Energy Trading has market-based rate authority from the FERC to sell power and blanket authority from the FERC to sell natural gas at market prices.
2025 Form 10-K, Energy Trading market-based rate authority · Filed 17/02/2026
Weather impact on sales Cooling degree days1 Operating earnings2 impact of weather Weather normal sales1 DTE Electric Heating degree days3 Operating earnings2 impact of weather DTE Gas (millions) (per share) 2Q YTD 2Q YTD 2025 $0 $2 $0.00 $0.01 2026 ($19) ($11) ($0.09) ($0.05) (millions) (per share) 2Q YTD 2Q YTD 2025 $3 $8 $0.01 $0.03 2026 ($1) $9 $0.00 $0.05 2Q 2025 2Q 2026 % Change YTD 2025 YTD 2026 % Change Actuals 252 225 (11%) 252 225 (11%) Normal 254 264 4% 254 264 4% Deviation from normal (1%) (15%) (1%) (15%) 2Q 2025 2Q 2026 % Change YTD 2025 YTD 2026 % Change Actuals 836 788 (6%) 4,049 4,068 0% Normal 782 798 2% 3,935 3,961 1% Deviation from normal 7% (1%) 3% 3% 20 (GWh) YTD 2025 YTD 2026 % Change Drivers Residential 7,217 7,248 0.4% Slightly higher customer count offset by Energy Optimization Commercial 9,146 9,120 (0.3%) Slightly higher customer count offset by Energy Optimization Industrial 4,968 4,795 (3.5%) Lower steel output and Energy Optimization Other 95 89 (6.3%) 21,426 21,252 (0.8%) Sales slightly up after adjusting for Energy Optimization (2%) 1.
September 28, 2026 business update, weather-normal electric sales and customer-count drivers · Filed 28/09/2026
