Markets
EXC

DTE Energy Expands Renewable Assets - Analyst Blog

An image of a stock price rising in value
Credit: Shutterstock photo

DTE Energy Company ( DTE ) announced that it has acquired the 75-megawatt (MW) Pheasant Run II wind park from a subsidiary of NextEra Energy Resources LLC, a unit of NextEra Energy, Inc. ( NEE ). The wind park is located in Huron County, OH. Later, the facility will be known as the Brookfield Wind Park.

NextEra Energy Resources' subsidiary will continue to own and run the 75-MW Pheasant Run I wind facility. DTE Energy will purchase the output from the wind park.

DTE Energy continues to diversify its power generation mix by expanding the renewable asset base. In first-quarter 2014, the company's unit DTE Electric invested $5 million under its renewable ventures. In Mar 2014, the company completed a construction project to convert a closed coal-fired power plant to a biomass fuel-fired facility. On Mar 3, 2014, DTE Energy selected 122 solar projects in the third offering for the expansion of its SolarCurrents customer-owned pilot program.

Within the 2014 to 2018 time span, DTE Energy plans to invest $400 million, including $240 million in 2014, for renewable energy and energy efficiency projects. A steady focus on expansion of renewable properties will help the company to achieve the government's renewable goal.

Apart from DTE Energy, other utility providers like NRG Energy, Inc. ( NRG ) and Exelon Corporation ( EXC ) are investing substantially to construct and upgrade their renewable utility infrastructure to comply with stricter regulations.

Recently, the Obama administration rolled out its plan to curb carbon emissions from power plants by 30% by 2030. The rule is expected to come into effect next year.

We believe that DTE Energy is well-positioned to meet the government mandates, as it is focusing more on expanding its renewable power generation capacity.

DTE Energy maintains a stable liquidity position. As of Mar 31, 2014, the company had a cash balance of $98 million and available liquidity of $1,500 million under the unsecured revolving credit agreements. A strong financial position supports DTE Energy's systematic investments in renewable growth ventures.

DTE Energy currently has a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EXELON CORP (EXC): Free Stock Analysis Report

NEXTERA ENERGY (NEE): Free Stock Analysis Report

DTE ENERGY CO (DTE): Free Stock Analysis Report

NRG ENERGY INC (NRG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EXC NRG DTE NEE

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More