DTE Gas Reports $294 Million Net Income in 2023

By Tamara Parker • Saturday, March 02 10:24 • Permanent Link

DTE Gas Company released its consolidated financial statements for the year ended December 31, 2023. The company reported a decrease in operating revenues to $1,726 million in 2023 from $1,894 million in 2022 and an increase of $362 million from $1,532 million in 2021.

Operating expenses for the company also saw changes. Cost of gas expenses decreased by $158 million in 2023 and increased by $202 million in 2022. Operation and maintenance expenses decreased by $63 million in 2023 and increased by $30 million in 2022. Depreciation and amortization expenses increased by $18 million in 2023 and $15 million in 2022. Taxes other than income increased by $7 million in 2023 and $8 million in 2022.

The company's net income rose to $294 million in 2023, up from $271 million in 2022 and $213 million in 2021. The increase in net income was primarily driven by changes in operating revenues and expenses.

Additionally, the company filed a rate case with the MPSC on January 8, 2024, requesting an increase in base rates of $266 million based on a projected twelve-month period ending September 30, 2025, and an increase in return on equity from 9.9% to 10.25%. The request reflects a net increase to customer rates of only $160 million.

The company also announced a voluntary separation incentive program ("VSIP") for certain non-represented employees within its electric and gas utilities and corporate support organizations. The VSIP will result in one-time costs in the first half of 2024, primarily in the first quarter, that will be allocated to Operation and maintenance expense. For DTE Gas, these one-time costs are currently expected to approximate $10 to $15 million.

The consolidated financial statements were audited by PricewaterhouseCoopers LLP. The auditors expressed that the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company and its results of operations and cash flows for each of the three years in the period ended December 31, 2023, in accordance with accounting principles generally accepted in the United States of America.

For the full picture, make sure to review DTE Energy's 8-K report.

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