DTE Energy (DTE) Q2 FY26 earnings call: guidance and Q&A

Clarification on the 2 GW in advanced discussions (number of customers, type, remaining steps) and the timing/nature of a potential guidance update if another contract is secured.

The 2 GW pipeline involves multiple customers, including hyperscalers and co-locators, with ongoing commercial discussions, site plan approvals, and zoning work. Guidance updates will follow MPSC approval of the Google contract (expected September) and then potentially after securing another contract by year-end, maintaining an '8% plus' approach rather than a step change in the range.

“We let that play out. And then we would update our plans accordingly in either Q3 or at EEI. And then should we secure another contract before the end of the year, we would likely refresh our plan with the fourth quarter call at that point.”

asked by Shahriar Pourreza · answered by Joi Harris

Expectations for intervener testimony in the electric rate case, particularly regarding the proposed stay-out mechanism and data center benefits.

The proposed stay-out mechanism and data center benefits were viewed positively pre-filing. Management anticipates staff and interveners will examine uncertainties related to Oracle and the established mechanism. Formal testimony is due in August, which will provide clearer indications for rebuttal or additional information.

“The data centers themselves, we've said all along that data center load broke on right puts downward pressure on rates, and this is just another proof point.”

asked by Richard Sunderland · answered by Joi Harris

Details on the economic development benefits and local stakeholder conversations related to the data center projects.

The data centers represent huge economic development opportunities, including hundreds of construction jobs, significant tax base benefits (e.g., $20M+ for cities, doubling tax base for Bamburin), and community benefits packages. They also stimulate growth in adjacent industries like HVAC and electrical services.

“this is a great economic story for Michigan with the potential to be even bigger once we sign additional agreements.”

asked by Diana Niles · answered by Joi Harris

In light of Oracle's recent credit downgrade, clarification on the collateral requirements and credit protections in place for the Oracle contract.

The contract includes additional collateral requirements at various credit triggers, providing protection for customers and DTE. These provisions ensure full protection from stranded asset risk, including minimum monthly charges of 80% of billing demand for 10+ years. The downgrade is not expected to impact project completion.

“we did have, as precaution, our contract has protections we'll have additional collateral requirements at various on great triggers that continues to provide the ultimate protection for our customers and for us.”

asked by Julien Dumoulin-Smith · answered by David Ruud

Identifying the most challenging part for large load customers (hyperscalers/co-locators) before moving to advanced discussions.

Zoning is the primary bottleneck for these customers. They must secure appropriate zoning for their sites before advancing to site plan approvals and other development stages. Once zoning is in place, securing a customer or proceeding with construction becomes more straightforward.

“It's the zoning first and foremost. They've got to get the site zoned and then they can move towards site plan. So that's typically one of the gating items that the hyperscalers and co-locators have to deal with.”

asked by Anthony Crowdell · answered by Joi Harris