Goals

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Tracking our progress

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We drive our performance by setting challenging goals, and then meeting or surpassing them.

Our corporate goals

Annual United Way donations

Achieve $1.6 million or more in pledges from employees and retirees for 2013.

Progress: Employees and retirees pledged $1,605,927 in our 2013 campaign, which was conducted in September through December 2012. The DTE Energy Foundation added a $750,000 gift to bring the total amount raised to $2,356,191.  more

 

DTE Energy conducts a campaign each fall to solicit pledges from our employees and retirees in support of 36 United Ways (UWs) across Michigan, as well in the Pittsburgh area and Superior, Wisc., for the following year. In 2012, 50 percent of our employees participated, including our union-represented employees who partner with the AFL-CIO Labor Council in their community support.

Residential customer satisfaction

Increase the residential customer satisfaction index to 74 percent by the end of 2013.

Progress: Through the first quarter of 2013, our residential customer satisfaction index is at 71 percent, which is 1 point lower than the end of 2012 and 3 point lower than the YE target of 74 percent.  more

 

We survey a representative sample of our utility residential customers each month for our Residential Customer Attitude Survey. Customers who give us a “favorable” rating are considered “satisfied” for the purposes of our customer satisfaction measure. In 2012, our residential customer satisfaction index was at 72 percent. We have set the goal to increase the index to 74 percent by the end of 2013. To help us achieve that goal, we launched a series of programs and initiatives aimed at improving operational excellence, customer communications and employee engagement around customer issues. We are calling back all customers who had a recent interaction with our company to ensure their satisfaction and resolution of their issues. In addition to resolving any outstanding issues, we gather input from these customers to continuously improve our operations. We are going door to door in many of our urban neighborhoods to show our customers what they can do to increase energy efficiency and lower their energy bills. We also are reaching out to our communities where customers who have been affected the hardest by Michigan’s high unemployment and sluggish economy to put them in touch with the public and private assistance programs that can help them manage their energy bills. We are expanding our efforts to reach these customers with information on where they can get help.

Customer energy use savings

Our 2012 goals were to reduce electric energy use by 1 percent and natural gas use by 0.75 percent annually and ensure that our Energy Optimization programs are cost effective.

Progress: 2012 was a pivotal year for DTE Energy’s Energy Optimization program. The year was successful in all key areas: energy savings, spending, and participation. more

 

DTE Energy’s Energy Optimization program launched in June 2009 as a result of laws that took effect in 2008 that mandated Michigan utilities implement energy optimization programs to help their customers reduce their electricity and natural gas use. The laws required our utilities, DTE Electric and DTE Gas, to save at least 1 percent of electric load each year and 0.75 percent of gas retail sales by 2012 and maintain those percent savings each year thereafter until 2015. DTE has aggressively implemented its energy efficiency programs, achieving standards that reached 1 percent electric savings and 0.75 percent gas savings in just under four years. Both gas and electric utilities exceeded these rising minimum legislative requirements each year. To implement the program in 2012, DTE Electric spent $69.7 million compared to the planned $74.4 million, and DTE Gas spent $28.6 million compared to the planned $27.8 million.

 

DTE continued to build on its momentum from the 2009 launch by enhancing the scope of existing programs and adding new program options to the portfolio. Since 2009, more than 700,000 customers have directly participated in DTE’s Energy Optimization programs, upgrading equipment in their homes and businesses to be more energy efficient. In 2012 alone, more than 286,000 DTE customers took control of their energy use through the EO programs and saved millions of dollars as a result. Additionally, DTE has provided them with education, tips, strategies and tools to help them save money on their energy bills. As a result, DTE has saved over 1,700 gigawatt hours (GWh) or approximately 3.9 percent of planned retail sales for electric customers, and 3,800 million cubic feet (MMcf) or approximately 2.4 percent of planned retail sales for gas customers since the program started. The electric savings amount is equivalent to energy required to power all the homes in Lansing, Mich., for more than three years. The gas savings are equivalent to heat the same number of homes in Lansing for one year. The savings achieved so far will continue for years into the future.


Operating earnings per share

Deliver long-term operating earnings per share growth of 5 to 6 percent per year.

Progress: First quarter 2013 operating earnings were $1.34 per share vs. first quarter 2012 operating earnings of $0.91 per share, representing a 47 percent year-over-year growth. Our long-term growth target range is 5-6 percent. At our recent Analyst Day, we increased our 2013 operating earnings guidance range to $3.90-$4.20 per share. more

 

DTE Energy believes that operating earnings provide a more meaningful representation of our company's earnings from ongoing operations than reported earnings. We use operating earnings as our primary performance measurement with analysts and investors. Operating earnings exclude non-recurring items, certain timing-related items and discontinued operations.

We remain focused on building a culture of engaged employees dedicated to the principles of continuous improvement that will allow us to enhance the strengths of our businesses and ensure reliable and affordable energy for our customers, while also delivering targeted long-term annual growth of 5 percent to 6 percent and an attractive dividend to our investors.


Total shareholder return

Deliver total shareholder return that is better than our peer group average.

Progress: DTE’s one year total shareholder as of the end of the first quarter was 29.6 percent, greater than our peer group average of 20.8 percent. On a three-year basis, as of March 31, 2013, DTE’s total shareholder return was 71.8 percent, above the peer group average of 65.7 percent. more

 

Total shareholder return (TSR) is a concept used to measure the performance of a company’s stock over time. It combines the share price appreciation and dividends paid to show the total return to the shareholder. Our 2013 peer group is comprised of Alliant Energy, CenterPoint Energy, Cleco, CMS Energy, Consolidated Edison, DTE Energy, Duke, Great Plains Energy, IDACORP, Integrys Energy, Northeast Utilities, NV Energy, Pepco, PG&E, Pinnacle West, Portland General Electric, SCANA, Southern Company, TECO Energy, Vectren, Westar Energy, Wisconsin Energy, Xcel Energy and UIL Holdings.

Strong balance sheet

Maintain leverage within 50 percent to 52 percent, and our funds from operations/debt within 21 percent to 22 percent.

Progress: As March 31, 2013, DTE Energy’s leverage was: Debt 49.4 percent, adjusted Equity 50.6 percent, Total 100 percent. As of March 31, 2013, DTE Energy’s 12 months ended funds from operations/debt calculation was 21.6 percent, within the target of 21 percent to 22 percent. more

 

Our leverage calculation measures the relative proportion of creditor funds to shareholders’ equity funds. It reflects our company’s dependence on debt sources of financing and, therefore, the financial riskiness of our company for both bondholders and shareholders.

Carbon-dioxide emissions reductions

Reduce DTE Energy power plant carbon-dioxide emissions 6 percent by year-end 2010 from a baseline of 1998-2000.

Progress: We met this goal. Through the end of 2010, we had achieved a total carbon-dioxide reduction of 6.3 percent from the 1998-2000 baseline. more

 

In 2007, DTE Energy joined the Chicago Climate Exchange, the world’s first – and North America’s only – voluntary, legally-binding greenhouse gas emissions reduction, registry and trading program. By joining, we committed to reducing our power plant carbon-dioxide emissions 6 percent by 2010 from a baseline of 1998-2000.

Greenhouse gas emissions intensity reduction

Reduce DTE Electric greenhouse gas emissions intensity 3 to 5 percent by 2012 from a 2000-2002 baseline.

Progress: “Greenhouse gas emissions intensity” means the amount of carbon dioxide released per megawatt hour of electricity produced. DTE Electric’s 2000-2002 greenhouse gas emissions intensity baseline is 0.79 metric tons of carbon dioxide per megawatt hour. A 3-percent reduction would equate to 0.76 metric tons per megawatt hour. In 2012, the emission intensity of our total generation increased to 0.86 metric tons per megawatt hour (above the baseline average) due to DTE Energy's Enrico Fermi II nuclear power plant only generating 60% of its forecasted total generation for 2012. On June 25, 2012, our Fermi 2 nuclear power plant was manually shutdown after one of the plant's two non-safety related feed-water pumps failed. DTE Electric decided to operate the plant with one feed-water pump at a reduced power level until the second feed-water pump was returned to service. The plant was restarted on July 30, 2012 with production at 68 percent of full capacity. Despite the lower capacity of the Fermi II plant, absolute greenhouse gas emissions from DTE Electric's fossil plants were down almost 17 percent from 2000 and 4.4 percent from just 2011. more

 

Power Partners is a voluntary partnership between the electric power industry and the U.S. Department of Energy (DOE) to develop and implement voluntary climate actions while sustaining economic growth. Through Power Partners, electric power companies are taking on activities such as additional natural gas and clean coal technology generation; additional nuclear generation; and additional renewable energy, energy efficiency, tree-planting, methane recovery and other projects to offset carbon-dioxide emissions. DTE Electric committed to the voluntary goal of Power Partners and the DOE to reduce greenhouse emissions intensity 3 to 5 percent over the 2010-2012 period from a 2000-2002 baseline. While the goal of Power Partners and the DOE applies collectively to the entire power industry sector and not individual companies, DTE Electric has adopted this goal in support of the industry.

Wildlife Habitat Council Certifications

Create and maintain quality wildlife habitat through certification of DTE Energy sites under the Wildlife Habitat Council.

Progress: DTE Energy has 30 sites certified under the Wildlife Habitat Council (WHC). These sites are on multiple-year certification cycles and in 2013, 16 of the 30 certified sites applied for recertification of their Wildlife at Work programs. This year, the Monroe Power Plant applied for an additional certification through WHC, the Corporate Lands for Learning (CLL) certification, which provides recognition for education and outreach programs developed by the site. This made Monroe Power Plant the first DTE Energy site to be CLL certified, with River Rouge Power Plant expected to certify in 2014. The newest WHC programs are DTE Gas’ Gaylord Transmission and Storage Operations Office and Wealthy Station, where habitat restoration projects were implemented in 2011 and certification was achieved in 2012. more

 

The Wildlife Habitat Council is a non-profit, non-lobbying organization created in 1988 with the mission of helping corporations manage their property for the benefit of wildlife. Certification and international accreditation through the WHC program recognizes commendable wildlife habitat management and environmental education programs. DTE Energy has been a member since 1995, a standing that exemplifies its commitment to improving wildlife habitat through enrichment of pre-existing habitat and the establishment of new habitat on the company’s landholdings. DTE Energy has the unique opportunity to create habitat for wildlife through the availability of large areas of land set aside as buffer zones for power plants and natural gas production, transmission, and storage. These sites are often located along waterways, which are an important part of local ecosystems and well-recognized for their diversity of habitat and wildlife. Maintaining this land as certified habitat areas, or “no-mow” zones, provide food, shelter, and space for many different species ranging from bald eagles to butterflies. Creating these areas also cuts down on the use of fossil fuels for mowing, water to maintain landscaping, and chemicals used to deter pests. These actions adhere to DTE Energy’s goal of being a valued community partner and a responsible corporate citizen.

Coal-combustion byproducts recycling

Recycle 15 percent of the total amount of DTE Electric’s coal-combustion byproducts in 2010 and 50 percent by 2015.

Progress: We exceeded our coal-combustion residual recycling goal of 15 percent for 2010 by recycling more than 18 percent of our coal-combustion byproducts. And in 2011, we increased recycling significantly, to 27 percent. While that puts us well on track to meet out 2015 goal, we are being challenged by regulatory requirements that may impact our recycling rate. more

 

Our Detroit Edison power plants generate fly ash, bottom ash and gypsum. We are engaged in recycling these coal-combustion byproducts for mainly the cement and wallboard markets. Fly ash, when combined with cement in concrete, improves concrete’s durability, strength, constructability and economic factors. Synthetic gypsum from our Monroe Power Plant is used in wallboard manufacturing. Our focus is to recycle all our coal-combustion byproducts. We are taking steps toward meeting this goal by working with marketers and wallboard manufacturers.

Renewable energy development

Increase DTE Energy's energy generation from renewable resources to 10 percent by 2015.

Progress: We are on track to meet the goals set by Michigan's Renewable Portfolio Standard (RPS) and are planning to do so through constructing new renewable projects we will own and by purchasing renewable energy generation, primarily wind, from third-parties to add 1,200 megawatts over the next 20 years. As of September 2011, we have increased our renewable energy portfolio to more than 5 percent of our total generation. more

 

DTE Electric is powering Michigan's energy future by using today's technology to provide reliable, affordable, responsible energy while developing tomorrow's clean energy solutions. Multiple parallel activities are underway to secure 10 percent of Detroit Edison's sales or 1,200 megawatts (MW) from renewable resources by 2015.

Ongoing since 2007, our company has acquired land rights to nearly 80,000 acres of land in Huron County in Michigan's Thumb region for the development of large-scale wind projects. Since plan approval by the Michigan Public Service Commission in 2009, our company has successfully launched two solar energy pilot programs – "SolarCurrents" – that are projected to produce about 20 MW of electricity.

Three long-term contracts have been approved to purchase 3.2 million Michigan-based Renewable Energy Credits (RECs). These RECs qualify for compliance toward the 10 percent RPS target. Additionally, four purchase power agreement (PPA) contracts have been approved totaling 232 MW. These PPA contracts qualify both toward the 10 percent RPS target and the capacity requirements established by Michigan's RPS.

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