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Researched by Industrial Info Resources (Sugar Land, Texas)--DTE Energy Company (NYSE:DTE) (Detroit, Michigan), a diversified energy company that generates most of its power in Michigan, saw higher costs, partly due to heavy storms, erode revenue gains in third-quarter 2014. The company upped its commitment to renewable energy by opening and developing windfarms. Net income was reported to be $156 million, a 21.21% decrease from third-quarter 2014.
Industrial Info is tracking $2.17 billion in active projects involving DTE, including two SO2 control retrofits at a power station in Monroe, Michigan, that are valued at $600 million each. The projects, which are nearing completion, involve installing Babcock & Wilcox's (NYSE:BWC) (Charlotte, North Carolina) wet flue-gas desulfurization scrubber onto opposed-fired dry bottom boilers at the 817-MW Unit 1 and 822-MW Unit 2. URS Corporation (NYSE:URS) (San Francisco, California) is serving as general contractor and performing engineering, procurement and construction (EPC) services.
View Project Report - 18002093 18002115
Total operating revenues stood at $2.6 billion, an 8.71% increase from the same period last year. Weather, as always, was a major factor in the results, as the company's service area alternated between mild summer temperature and a string of severe storms that upped restoration costs.
Capital expenditures for the first three quarters of 2014 were reported to be $1.53 billion, compared with $1.39 billion for the same period in 2013. About $1.14 billion of 2014's total was attributed to DTE Electric, which incurred higher restoration costs following storm damage, as well as steeper infrastructure investments. DTE Gas and non-utility spending was narrowly lower when compared with the first nine months of 2013.
During the quarter, DTE began operations at the Echo Wind Park, which is part of its plan to boost its renewable energy use to 10% by the end of 2015. Among the factors driving the increase in renewables are recently proposed carbon regulations from the U.S. Environmental Protection Agency (EPA), which would force DTE to replace many of its coal-generation plants over the next 10 years. For more information, see October 21, 2014, article - U.S. Power Industry's Regulatory Future, Part One: Clean Power Plan, Coal Combustion Residuals Stir Legal Fights.
With the Echo Wind Park, the company's renewable portion stands at 9.6%. Among the DTE projects currently tracked by Industrial Info is the $250 million construction of the Meade Windfarm in Bad Axe Michigan. The project involves erecting 58 General Electric (NYSE:GE) (Fairfield, Connecticut) wind turbines of 1.7 MW each, for a total output of about 100 MW.
View Project Report - 300177807
DTE, Enbridge Incorporated (NYSE:ENB) and Spectra Energy Corporation (NYSE:SE) are developing the NEXUS Gas Transmission system, a project that will move growing supplies of Utica Shale gas to Ohio, Michigan and Ontario.
"The project we are most excited about is our NEXUS pipeline, and since our last earnings call, the binding open season concluded, and the pipe is now sized at 1.5 [billion cubic feet] a day expandable to 2," said Peter Oleksiak, the senior vice president and chief financial officer of DTE, in a conference call. "We're finalizing producer agreements and doing early preparatory activities. We're on track for the [Federal Energy regulatory Commission]pre-filing in the end-of-the-year timeframe."
View Project Report - 300094209 300094193 300094176 300094199
DTE's capital expenditure outlook for full-year 2014 was lowered slightly from $2.33 billion to $2.17 billion, with the difference in non-utility spending. The outlook for DTE Electric remains unchanged at $1.6 billion, and DTE Gas' expenditures are unchanged at $240 million.
"Our growth plans for the next 10 years at both utilities are robust," Oleksiak said. "Our electric utilities growth is driven by environmental spending in the near term, and renewal of our generation fleet in the longer term, which is the natural replacement of our aging coal fleet. There's more certainty now on the coal retirements, given the recent EPA actions."
He added: "In the gas utility, growth is driven by infrastructure investments and main replacement. Complementing our utility growth are meaningful, low-risk growth opportunities in our non-utility businesses, which provide diversity in earnings and geography."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking $2.17 billion in active projects involving DTE, including two SO2 control retrofits at a power station in Monroe, Michigan, that are valued at $600 million each. The projects, which are nearing completion, involve installing Babcock & Wilcox's (NYSE:BWC) (Charlotte, North Carolina) wet flue-gas desulfurization scrubber onto opposed-fired dry bottom boilers at the 817-MW Unit 1 and 822-MW Unit 2. URS Corporation (NYSE:URS) (San Francisco, California) is serving as general contractor and performing engineering, procurement and construction (EPC) services.
View Project Report - 18002093 18002115
Total operating revenues stood at $2.6 billion, an 8.71% increase from the same period last year. Weather, as always, was a major factor in the results, as the company's service area alternated between mild summer temperature and a string of severe storms that upped restoration costs.
Capital expenditures for the first three quarters of 2014 were reported to be $1.53 billion, compared with $1.39 billion for the same period in 2013. About $1.14 billion of 2014's total was attributed to DTE Electric, which incurred higher restoration costs following storm damage, as well as steeper infrastructure investments. DTE Gas and non-utility spending was narrowly lower when compared with the first nine months of 2013.
During the quarter, DTE began operations at the Echo Wind Park, which is part of its plan to boost its renewable energy use to 10% by the end of 2015. Among the factors driving the increase in renewables are recently proposed carbon regulations from the U.S. Environmental Protection Agency (EPA), which would force DTE to replace many of its coal-generation plants over the next 10 years. For more information, see October 21, 2014, article - U.S. Power Industry's Regulatory Future, Part One: Clean Power Plan, Coal Combustion Residuals Stir Legal Fights.
With the Echo Wind Park, the company's renewable portion stands at 9.6%. Among the DTE projects currently tracked by Industrial Info is the $250 million construction of the Meade Windfarm in Bad Axe Michigan. The project involves erecting 58 General Electric (NYSE:GE) (Fairfield, Connecticut) wind turbines of 1.7 MW each, for a total output of about 100 MW.
View Project Report - 300177807
DTE, Enbridge Incorporated (NYSE:ENB) and Spectra Energy Corporation (NYSE:SE) are developing the NEXUS Gas Transmission system, a project that will move growing supplies of Utica Shale gas to Ohio, Michigan and Ontario.
"The project we are most excited about is our NEXUS pipeline, and since our last earnings call, the binding open season concluded, and the pipe is now sized at 1.5 [billion cubic feet] a day expandable to 2," said Peter Oleksiak, the senior vice president and chief financial officer of DTE, in a conference call. "We're finalizing producer agreements and doing early preparatory activities. We're on track for the [Federal Energy regulatory Commission]pre-filing in the end-of-the-year timeframe."
View Project Report - 300094209 300094193 300094176 300094199
DTE's capital expenditure outlook for full-year 2014 was lowered slightly from $2.33 billion to $2.17 billion, with the difference in non-utility spending. The outlook for DTE Electric remains unchanged at $1.6 billion, and DTE Gas' expenditures are unchanged at $240 million.
"Our growth plans for the next 10 years at both utilities are robust," Oleksiak said. "Our electric utilities growth is driven by environmental spending in the near term, and renewal of our generation fleet in the longer term, which is the natural replacement of our aging coal fleet. There's more certainty now on the coal retirements, given the recent EPA actions."
He added: "In the gas utility, growth is driven by infrastructure investments and main replacement. Complementing our utility growth are meaningful, low-risk growth opportunities in our non-utility businesses, which provide diversity in earnings and geography."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
