DTE Energy Reports Lower Q4 Profit Due to Reduced Electricity Pricing
DTE Energy reported a decline in fourth-quarter earnings on Thursday, attributed to decreased electricity pricing.
The utility utilized rate-case proceedings to establish electricity and natural gas customer rates. DTE implemented a rate case to lower electricity production costs.
Despite saving $300 million in fuel and transportation expenses after the rate case took effect in November, residential electricity rates were reduced by $5 per month.
DTE supplies electricity to 2.3 million customers in Southeast Michigan and natural gas to 1.3 million in Michigan.
The electric segment, DTE's largest by revenue, saw operating earnings decline from $244 million in Q4 2021 to $195 million in Q4 2022. Natural gas segment earnings remained steady year-over-year.
DTE anticipates 2025 operating earnings per share between $7.09 and $7.23, with the midpoint falling short of analysts' $7.20 estimate (LSEG data).
Net income for the quarter ending December 31 fell to $292 million ($1.41 per share) from $419 million ($2.02 per share) a year prior.