Morningstar Rating

Stock Research and Analysis

by Mark Barnett

Bulls Say

Major regulatory reforms that were signed into law in 2008 have been adopted and seem to have staying power, though the decoupling mechanism was struck down by a judge.
Michigan's aging utility infrastructure needs investment, which should mean growth opportunities for DTE.
DTE's existing pipeline footprint provides opportunities to add midstream infrastructure around the Marcellus and possibly Utica shale plays. Read more 

Bears Say

We expect the aggressive self-implement and subsequent refund game to continue, perhaps leading to regulatory fatigue or ill will. Tellingly, DTE hopes to stay out of a full rate case for the next few years.
Michigan--especially Detroit--continues to struggle, which will increase pressure on regulators to keep electric and gas rates low at the utilities' expense.
DTE's nonregulated businesses constitute a significant portion of earnings, making the company a riskier investment than other utilities. Read more 

Management

We think DTE merits a Standard stewardship rating. Almost all of DTE's executives have been with the company since Michigan deregulated its utilities in 1997. That includes CEO Gerry Anderson, who picked up the mantle after serving as the company's   Read more 

Profile

DTE Energy owns two regulated utilities: Detroit Edison and DTE Gas. Detroit Edison is the nation's 12th-largest electric utility, supplying energy to 2.1 million customers   Read more 

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