Company

Self-Direct Program Details for Business Customers.

Energy conservation legislation enacted by the Michigan legislature allows DTE Electric customers to self-direct and implement their own energy optimization plan.

Company

This section of the DTE Corporate Citizenship Report describes our company’s business operations, our values and priorities, our commitment to ethical practices and our engagement with stakeholders.

Our Aspiration
To be the best-operated energy company in North America, and a force for growth and prosperity in the communities where we live and serve.

Company Profile

Our businesses include DTE Gas and DTE Electric — energy companies regulated by the Michigan Public Service Commission — and non-regulated energy operations located throughout the country.

 


DTE Electric

In 2015, we delivered electricity to our 2.2 million customers from coal, oil, nuclear, solar, wind and natural gas-fired sources. We generate and distribute electric services to residential, industrial, institutional and commercial customers. Purchased electricity accounted for 18 percent of the electricity supplied by DTE Electric during this period. DTE Electric owns and operates fossil fuel and nuclear plants totaling 10.5 gigawatts (GW) of installed capacity in Michigan as well as about 410 megawatts (MW) of renewable energy generating capacity in the state. In 2015, we generated 40.6 gigawatt-hours (GWh) of electricity.

More information on Renewable Energy is included in the Environment section of this report.

DTE Electric owns and operates 676 substations, 1,600 power transformers, 432,000 distribution transformers, 1.1 million poles, and 260,000 miles of conductor - enough to circle the earth 10 times. We operate approximately 30,218 miles of overhead distribution lines and 15,814 miles of underground distribution lines. Our service territory encompasses 7,600 square miles.

 

 

 

DTE Gas

Our natural gas utility business serves approximately 1.2 million residential, commercial and industrial customers throughout Michigan (service territory covers 14,700 square miles). Founded in 1849, DTE Gas is one of the nation's largest natural gas utilities. We own distribution, storage and transportation facilities, approximately 2,000 miles of large gas transmission pipelines, and 19,000 miles of smaller distribution mains.

We own storage properties relating to four underground natural gas storage fields with an aggregate working gas storage capacity of 141 billion cubic feet. These facilities are important in providing reliable and cost-effective service to our customers. We also sell storage services to third parties. The company owns and operates 278 storage wells representing approximately 34 percent of the underground working capacity in Michigan. There is more natural gas storage capacity in Michigan than in any other state.

DTE Gas is directly connected to interstate pipelines, providing access to most of the major natural gas supply producing regions in the Gulf Coast, Mid-Continent, and Canadian regions. We are planning significant investments over the next two years to expand our capacity and increase the amount of natural gas our system can bring into Michigan and deliver to the state’s gas customers. This is important to maintain reliable and affordable supply for residential and business customers, especially as natural gas is increasingly used as a fuel for generating electricity, replacing more carbon-intensive coal-fired capacity.

Learn more about our work to maintain safety and reliability of natural gas supply.

Gas Storage and Pipelines

DTE Energy controls two natural gas storage fields in Michigan, gathering pipeline systems in Michigan and Pennsylvania and ownership interests in two interstate pipelines. The two storage facilities in Michigan (combined working storage capacity of 91 billion cubic feet) operate separately from our regulated gas utility assets, but are well integrated. DTE Gas provides physical operations, maintenance and technical support for the storage facilities and for the in-state gathering systems.

Gas Storage and Pipelines has more than doubled in net income over the past five years, reflecting tremendous growth in natural gas production and use. Continuing this trend, we are partnering with Houston-based Spectra Energy to develop the NEXUS Pipeline, a 255-mile gas pipeline through Ohio and Michigan that will serve the next generation of natural gas-fueled power plants. The pipeline, pending approval by the Federal Energy Regulatory Commission, is expected to be operational by the end of 2017.

Power and Industrial

Our Power and Industrial business provides energy-related products and services nationwide to energy-intensive industrial, commercial and institutional customers. Its product lines are concentrated in the renewable energy, industrial energy services, and environmental controls markets. In the renewable energy market, the company produces renewable energy from waste-wood and landfill gas for sale to regional electric utility companies and industrial customers. Industrial energy services includes the production of blast furnace coke and pulverized coal for sale to integrated steel producers and the provision of on-site energy services such as waste water treatment, process steam, co-generated power, chilled and hot water, and compressed air to automotive, chemical, and consumer products companies and institutions such as hospitals, universities and governmental authorities. The environmental services business uses a proprietary process to treat coal resulting in reduced environmental emissions when combusted. Power and Industrial now encompasses more than 60 projects in 17 states.

Energy Trading

DTE Energy Trading conducts energy marketing and trading operations, serving primarily utilities, local distribution companies and other marketers.


DTE Operations in Michigan

View our renewable energy project map here >
 

Acquisitions and Closures during 2015

January 2015 – DTE Electric acquired a 732 MW simple cycle natural gas facility in Carson City, Michigan, to serve customer demand during peak periods.

October 2015 – DTE Electric acquired a 350 MW simple cycle natural gas facility in East China Township, Michigan, also serving peak load.

Fourth quarter 2015 – DTE Energy announced closure of the Shenango coke battery plant in Pittsburgh, Pennsylvania, in response to a sharp downturn in the North American steel industry. The plant was part of the Power and Industrial segment.

 

Corporate Priorities and Values

Our values shape the way we think about our company and the way that we work on a daily basis. They highlight the “rules of the road” and guide all of our decisions and actions.

Our values have real power because we routinely live them, act on them — and do so with conviction.

We put the health and safety of people first
... and know this responsibility rests with each of us.

We act with integrity and show respect
... and understand this defines our company’s character.

We see our work through the eyes of those we serve
... and know that our work is a powerful means to serve others.

We bring our best energy and focus to our work
... and are fully engaged and accountable for results.

We play to win as a team
... and put the needs of our enterprise first.

We are passionate about the success of our company
... and know that its health and growth generate prosperity.

We believe that improvement is our daily responsibility
... and know those we serve have the right to expect that from us.

 

 

Financial Performance

DTE Energy has delivered total shareholder return above the energy company average in three of the past five years. Detailed information about our financial performance is available in our Form 10-K filing with the U.S. Securities and Exchange Commission.

 

 

Governance

We believe that a successful business is built on strong leadership and well-managed operations. At DTE Energy, our Board of Directors is committed to creating long-term value for its shareholders while operating as a responsible corporate citizen. Toward that goal, the Board performs a number of functions for the company following sound governance practices, including:

> Selection of company leaders

> Setting direction and approving strategy for the company

> Oversight of company management

> Regular oversight of the effectiveness of management policies and decisions, including management’s development and execution of the company’s strategies

We value an independent perspective on the management of our company. Our Board is comprised of 11 independent directors plus our chairman and CEO, the only management director. We hold annual director elections where a majority vote is required for uncontested appointments. All of the Board committees are composed exclusively of independent directors, and we have a lead independent director, elected by the independent members of the Board of Directors.

To maintain the highest level of integrity, the Board of Directors and its committees hold annual self-assessments and executive officers and directors are subject to robust stock ownership requirements. We uphold policies applicable to all company directors, officers and employees that ensure that their economic interests are aligned with those of the shareholders. Our Board membership reflects a diversity of experience, gender, race, ethnicity and age. Directors also possess the highest personal and professional ethics, integrity and values.

Visit our Governance web page for more information about Board oversight and committee structure.

 

Ethics

At DTE Energy, an ethical culture, grounded by our values, starts with our Board of Directors and extends throughout the entire company. The DTE Ethics and Compliance Program is designed to promote a culture of integrity and respect and one that is committed to complying with all relevant laws and regulations. The DTE Energy Way, our code of conduct, is the highest level of policy for all of our employees. It is the centerpiece of our commitment to living our values and conducting our business according to the highest ethical standards and in compliance with the law. All employees are trained on our code of conduct. In addition, DTE Energy has a Supplier Code of Conduct to ensure that our business partners adhere to the same standards and align with DTE Energy’s values.

During 2015, we launched our Ethics Ambassadors Program to assist in promoting a culture of integrity and to help drive supporting behaviors. Ethics Ambassadors are embedded within business groups across the company, serving as a resource for employees to seek guidance regarding ethical concerns and to assist with ethics-related training and communication.

Our Ethics in Action program provides a mechanism for employees, vendors, customers, shareholders and the general public to report suspected non-compliance or work practices that are inconsistent with our values and standards, promoting a “speak-up” culture. To ask questions, seek guidance or report concerns, individuals can make a confidential and, if desired, anonymous report through an independent third party 24/7 by contacting the Ethics In Action Helpline.

 

More
Stakeholders

Maintaining an open and transparent relationship with our stakeholders is important to our success as a business and as a responsible corporate citizen. DTE Energy’s stakeholder engagement process involves outreach to people and organizations that may be affected by the decisions we make. The stakeholders with whom we interact may support or oppose our decisions, but regardless of their stance, we believe everyone benefits from the exchange of factual information and open dialogue.

DTE Energy maintains a Community Advisory Council, which involves a rotating group of community members. The Community Advisory Council is a partnership that allows us to gain insight into local perceptions of DTE Energy and provides us an opportunity to improve our relationship with the community and develop programs that better serve the needs of our customers.

DTE’s Regional Relations team proactively manages relationships with elected and appointed officials, and in partnership with Public Affairs, works with key community stakeholder organizations and nonprofits. The Regional Relations team represents DTE through membership and interaction with 45 Chambers of Commerce across Michigan. In addition, DTE executive leaders contribute their expertise and time to the community by serving in 70 board positions for nonprofit organizations throughout our service territory.

Please refer to the Policy Leadership section of the full report for a list of advocacy groups with whom DTE engages.

Our Key Stakeholders Include:


Employees
Customers
Suppliers
Shareholders
Communities
Facility Neighbors
Government
Industry Associations
Non-governmental Organizations
(e.g., environmental groups)

Suppliers

We value the business relationships we have with our suppliers and view them as strategic partners to our company’s success. We expect those with whom we do business to share the same values and principles that allow our company to enjoy an excellent reputation within the communities we serve.

DTE Energy expects our suppliers to provide a safe and healthy work environment for our employees, subcontractors, customers and all visitors to the premises. Suppliers must also conduct their business operations in a way that protects and sustains the environment and is in full regulatory compliance.

DTE Energy is committed to using a diverse supplier base, including businesses that are majority-owned and operated by women and minorities. We require that our suppliers have this same commitment, specifically in their use of materials and services from their own base of diverse suppliers and contractors. We expect our suppliers to equally support an environment that fosters diversity based on any personal traits or beliefs, not just those protected under the law. These would include culture, education level, lifestyle, parental status, association membership, political affiliation or other distinguishing characteristics.

We manage these supplier relationships and expectations through supplier performance scorecards and periodic executive reviews. In 2015, DTE Energy conducted 12 executive forums and 55 executive reviews with top suppliers and senior leadership. Focusing on safety priorities, DTE Gas scheduled monthly contractor partnership meetings to discuss safety and quality audit results. We have more than 80 supplier scorecards in place, measuring performance and developing corrective actions when necessary.

Awards and Recognitions for Supplier Diversity

Women Enterprise USA Corporation of the Year
> Women Enterprise USA Top 100 Leaders in Supplier Diversity
> Diversity Plus Top 30 Champions of Diversity
> Minority Business Newsletter (MBN) USA’s “Best of the Decade”
> MBN USA’s Corporate 101: America’s Most Admired Corporations for Supplier Diversity
> MBN USA’s Chrome Conference Edition
> Great Lakes Women’s Business Council’s Excellence in Supplier Diversity Award in the “Best in Class” Category
> Women’s Business Enterprise National Council America’s Top Corporations Bronze

 

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