DTE Energy Company
) has received approval from the Michigan Public Service
Commission ("MPSC") for the second phase of the SolarCurrents
expansion program. Under the SolarCurrents customer-owned pilot
program, the company provides financial incentives for customers,
who install solar energy systems on their homes and businesses.
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DTE Energy's SolarCurrents program consists of two components -
one is a pilot program for customer-owned solar installations
that has met its goal of five megawatts ("MW"), and the other one
is for utility-owned installations with a goal of 15 MW.
In the second phase of the SolarCurrents program, the company
will offer an additional 2 megawatts of capacity over the next
two years. The 2 MW of installations will be done in 4
installments with 500 kilowatts each over two years in January
and June of 2013 and 2014. Under the first phase, approximately
600 solar energy projects were built and had a generation
capacity of 5 MW. The first phase got fully subscribed in May
As a part of its utility-owned SolarCurrents program, the company
also issued Request for Proposals ("RFP") for the purchase of one
or more large solar photovoltaic installation in September 2012.
It is looking for photovoltaic installations in the range of 500
kilowatts to 2 megawatts.
By 2015, DTE Energy plans to add approximately 1,200 MW of
renewable energy capacity. The company plans to meet the state's
goals with the help of its own projects and renewable energy
purchased from other sources in the state. SolarCurrents program
will contribute 20 MW, but the bulk is expected to come from wind
Detroit, Michigan-based DTE Energy Company is a holding company
with subsidiaries engaged in regulated and unregulated energy
businesses. Detroit Edison Company and Michigan Consolidated Gas
Company are its largest regulated subsidiaries.
In October, DTE Energy reported third-quarter 2012 earnings per
share of $1.31, easily beating the Zacks Consensus Estimate by 19
cents. Results improved 22.4% year over year.
Our bullish outlook for DTE Energy is supported by its stable and
growing utilities and its complementary non-utility businesses.
Going forward, the growth momentum will be maintained by
beneficial regulatory policies in Michigan, higher authorized
rates for its regulated business, growth opportunities in its
un-regulated businesses and an industry-high dividend yield. The
expansion of SolarCurrents program would increase the customer
heads while adding to the company's profitability.
Moreover, there are also plans to monetize its Barnett Shale
assets and other properties, which would alleviate the need for
external borrowings. The company presently retains a short-term
Zacks #2 Rank (Buy) that corresponds with our long-term
Outperform recommendation on the stock.
The company mainly competes with
NRG Energy Inc.
CenterPoint Energy Inc.