Successful Ramp up in Challenging Times Presented at the 2013 ACEEE National Conference on Energy Efficiency as a Resource September 24, 2013
Who we are: DTE Energy Utilities Overview DTE Electric DTE Gas DTE Electric & Gas Service Territory Detroit DTE Electric Tenth largest US electric utility with 2.1 million customers Approx. $5 billion in revenue, $16 billion in assets Regulated by the Michigan Public Service Commission (MPSC) DTE Gas Eleventh largest US natural gas utility with 1.2 million customers Approx. $2 billion in revenue, $4 billion in assets Regulated by the Michigan Public Service Commission (MPSC) 2
Our Goals: Aggressive ramp up of EE Savings Legislation signed EO plan filed Launch Programs October 6, 2008 March 4, 2009 Mid to Late 2009 December 4, 2008 MPSC temporary order June 3, 2009 EO Plan approved by MPSC 3
Energy Savings (MWh) Energy Savings (Mcf) Our Goals: Aggressive ramp up of EE Savings 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - Electric Energy Savings Goals 146,000 227,000 0.50% 339,000 0.75% 455,000 1.00% 0.30% 176,000 2009 2010 2011 2012 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Gas Energy Savings Goals 0.10% 410,000 0.25% 812,000 0.50% 1,186,000 0.75% 2009 2010 2011 2012 Plan $31 $32 $54 $69 Plan $9 $12 $27 $28 (millions) (millions) 4
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 % Change in GDP Pop. Thousands 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unemployment Rate % What we faced: Michigan and Detroit posed a difficult economic picture Detroit City Population* 1,850 30.0% Comparative Unemployment US** Michigan** Detroit*** 1,623 1,569 1,670 1,514 25.0% 20.0% 15.0% 1,203 10.0% 5.0% 994 1,028 951 0.0% 714 Change in GDP**** 285 465 4.00 2.00 - (2.00) (4.00) (6.00) * US Census Bureau ** US Bureau of Labor Statistics *** Michigan Department of Technology, Management and Budget, Labor Market Information ****US Bureau of Economic Analysis 5
What we faced: The conditions under which DTE Energy had to achieve its goals were concerning Detroit Free Press, June 7, 2009: Michigan economy continues to shrink The latest figures show that the state's real gross domestic product - the inflation-adjusted value of all goods and services produced in Michigan - dropped again last year, falling 1.5% to $326.1 billion CNN Money.com, July 17, 2009: Michigan unemployment tops 15%. Michigan became the first state in 25 years to suffer an unemployment rate exceeding 15%, according to a report released Friday by the Labor Department. Associated Press 2009 Top Ten News Stories: #4 The Auto Industry General Motors and Chrysler filed for bankruptcy, GM s CEO Rick Wagoner was ousted by the government, and Chrysler was pressured into an alliance with Italy s Fiat. Ford avoided bankruptcy, but its worldwide sales like its competitors fell sharply. 6
What we did: Key factors for Implementing in a down economy 1. Turn key solutions are key 2. Hire good partners 3. Low cost/no cost measures are critical to get customers to participate 4. Leverage the social and community network 5. Develop the future fast 6. Focus on the customer - keep the momentum with customers who have already participated 7
EO Program Offerings Commercial & Industrial Programs Residential Programs Prescriptive Custom New Construction Request For Proposal Home Energy Consultation Home Energy Survey Multifamily ENERGY STAR Appliance Recycling Turn key solutions Hire good partners HVAC & Water Heating Audit & Weatherization Energy Efficiency Assistance 8
Initiative in Detroit: Home Energy Consultation Program Low cost/no cost measures are critical to get customers to participate Leverage the community network Through 2012: 79,000 homes across Michigan 9
Developing the Future Fast meant pushing our corporate comfort zone Facebook and Twitter 10
The customer experience is critical Focus on the customer 11
What we did: Performance Exceeded Goals 12
What we did: Performance Exceeded Goals DTE Electric Participation DTE Gas Participation 16 million bulbs 75,000 Recycled Refrigerators 135,000 Apartment Units 78,000 Apartment Units 79,000 Direct install homes 77,000 Direct install homes 60,000 Home and School Kits 50,000 Home and School Kits 75,000 Rebate checks 69,000 Rebate checks 14,700 Low Income weatherization 11,000 Low Income weatherization 15,000 C&I applications 9,000 C&I applications 13
The EO Program has provided benefits to the local economy "We serve with our energy, the lifeblood of communities and the engine of progress. Employment Community Connection Investment 14