管理層發言
Thank you for joining us. My name is Rebecca, and I will be your conference operator today. I would like to welcome everyone to the DTE Energy Q2 2025 Earnings Conference Call. I will now turn the call over to Matt Krupinski. Please proceed.
Thank you, and good morning, everyone. Before we get started, I'd like to remind you to read the safe harbor statement on Page 2 of the presentation, including the reference to forward-looking statements. Our presentation also includes references to operating earnings, which is a non-GAAP financial measure. Please refer to the reconciliation of GAAP earnings to operating earnings provided in the appendix. With us this morning are Jerry Norcia, Chairman and CEO; Joi Harris, President and COO; and Dave Ruud, Executive Vice President and CFO. And now I'll turn it over to Jerry to start our call this morning.
Thanks, Matt. Good morning, everyone, and thanks for joining us. I hope everyone is having a healthy and safe year so far. This morning, we will discuss the achievements we've made this year as we continue to deliver for all of our key stakeholders. Joi will provide an update on our business strategy, highlighting the significant improvements we are making to enhance reliability for our customers and the progress we are making on renewable energy investments supporting our path to cleaner generation. Joi will also provide an update on data center opportunities that provide potential upside to the plan. And Dave will provide a financial update and wrap things up before we take your questions. So to start, I'm sure you're all aware that I will be turning over the CEO role to Joi Harris effective September 8 of this year. As I'm sure that you have seen over the last few years, we have been preparing for this structured transition for some time.
I have worked with Joi for over 20 years, and I've been watching her continue to deliver and really overperform in every role and challenge that she has taken on at DTE. And particularly in these last couple of years, where she has been serving as President and COO, she has just continued to excel in leading our company to be successful in all of our most critical areas. So it has just become obvious to me, to our Board and to our entire company that Joi is ready for this role and ready to lead our company to continued excellence. It has been a real honor to be DTE's CEO for the last 6 years, and I'm extremely proud of what we have accomplished over that time. As Joi transitions to the CEO role, I will be serving as Executive Chairman, supporting Joi and the company, helping to ensure the continued success of DTE for all of our stakeholders. I am confident that we will continue to deliver and are well-positioned for long-term growth with solid opportunities across all of our business units.
I'll provide a brief overview of Slide 4, highlighting our key successes and the opportunities that reinforce my confidence in our continued progress towards our goals. We have had a strong first half of 2025 and are well-positioned to meet our targets this year. Our success is a testament to our dedicated and engaged team committed to serving our customers and communities. As I mentioned last quarter, this year, we were recognized by the Gallup organization for the 13th consecutive year with a Great Workplace Award. And our employee engagement ranks in the 94th percentile globally among thousands of organizations. Our high level of employee engagement is our secret sauce for continued success. We remain committed to making significant investments to enhance the grid and improve reliability for our customers. And we see that these investments and process improvements deliver results. We saw a nearly 70% improvement in reliability in 2024 when compared to 2023.
And we continue to make progress in 2025 as we work towards our goal of reducing outages by 30% and the amount of time customers spend without power by 50% by 2029. We continue to successfully execute significant investments in cleaner generation for our customers, which will continue over the next 5 years and into the next decade, significantly increasing our solar and wind investments as well as battery storage. Joi will share more details on our renewable investment strategy to support both our voluntary program and Michigan's clean energy goals. Our 2025 operating EPS guidance is $7.09 to $7.23, and we remain well-positioned to achieve the higher end of the range this year and continue to use additional favorability to extinguish backlogs that supports future years. Our long-term operating EPS growth rate remains at 6% to 8% with 2025 original guidance as the basis for this growth. And with the 45Z production tax credits from our RNG projects coming into the plan this year, we have confidence we will reach the higher end of our targeted range 2025 through 2027.
As I'm sure you are aware, the budget bill that passed recently did extend the RNG tax credits through 2029. This is definitely a positive for DTE. We plan to update our 5-year plan this fall, and we'll provide more detail at that time. I will say at this time that this gives us even more confidence that we will be able to deliver on our targets over the next 5 years and beyond. So I'm feeling really positive about 2025 and the position we are in to continue to achieve long-term success. And as we have said, data center opportunities will provide upside to our current 5-year plan. We are in late-stage discussions with multiple data centers for significant new load, which Joi will provide more details on shortly. We continue to maintain a strong balance sheet and investment-grade credit rating to support our customer-focused capital investment plan. We remain committed to delivering premium shareholder returns that our investors have come to expect. And our 2025 annualized dividend of $4.36 per share aligns with our practice of providing a growing dividend consistent with EPS growth. Now I'll turn it over to Joi. Joi, over to you.
Thanks, Jerry, and good morning, everyone. I'll start by saying how grateful and excited I am for this opportunity to serve DTE as its next CEO. In particular, I would like to express my appreciation to Jerry for his mentorship and friendship over the past 20 years. Jerry has been an exceptional leader for DTE, driving the company to success year after year, and I look forward to working with him for a few more years to continue to drive value for DTE. As I take on the role of CEO for DTE Energy, I want to emphasize that our core priorities, long-term vision, and strategic goals remain unchanged. We are committed to building on the strong foundation and momentum we've established over the years and we'll continue to deliver exceptional results for our customers, communities, and investors. Our plan is supported by a highly engaged and dedicated team, one that is deeply committed to achieving best-in-class outcomes across all key priorities.
It is this shared focus and collective energy that fuel our continued success. We continue to see strong growth in our utility operations, driven by customer-focused investments aimed at improving reliability and transitioning to cleaner energy. Our solid regulatory framework provides a stable and supportive environment for these infrastructure investments, enabling us to move forward with confidence as we modernize our distribution system and continue our transition to cleaner energy. Beyond our core utility business, we see transparent low-risk growth opportunities at DTE Vantage, providing diversification both in terms of earnings and geographic reach while aligning with our broader strategic objectives. We have a strong project development pipeline in place at DTE Vantage with multiple custom energy solutions projects underway, including a project with Ford Motor Company, which is expected to come online in 2026 and a project to build and operate a 42-megawatt combined heat and power project for a large industrial customer, which is expected to begin construction later this year.
These projects are supported by long-term fixed fee contracts, providing solid low-risk growth opportunities in this space. So overall, we have a robust 5-year plan in place, anchored by $30 billion of customer-focused capital investments over the next 5 years, with more than 90% of that investment directed towards strengthening and modernizing our utility operations. Additionally, we are well-positioned to meet the potential surge in demand from data centers. This represents significant upside to our plan, offering opportunities for additional investments in new generation capacity while supporting our commitment to customer affordability. I am confident in our direction, energized by our team and excited about the opportunities ahead and as we continue to deliver sustainable long-term value for all of our stakeholders. Let me move to Slide 6 to highlight progress we are making to improve reliability.
Our investments in our grid and the process improvements we are making are driving improved reliability for our customers with a continued emphasis on maintaining affordability. In the first half of the year, we made significant progress in strengthening the grid. We installed more than 220 smart grid devices to help reduce outage durations and improve response time and conducted over 230 miles of pole top maintenance, upgrading and replacing over 1,560 utility poles, enhancing system resilience. We also continued the replacement of the aging 4.8 kV system, a key step in modernizing our network and trimmed over 3,500 miles of trees as part of our ongoing vegetation management program to prevent outages. Our system was put to the test at the end of June with a record-breaking 4-day heat wave followed by a powerful storm that swept through our service territory with winds reaching nearly 60 miles per hour, impacting over 55,000 customers.
During the heat wave, our generation fleet performed exceptionally well, meeting high customer demand with reliability and resilience. And our storm response was very effective, restoring power to 95% of affected customers within 24 hours and nearly 100% within 48 hours. I am grateful for the dedication of our teams, including line workers, contractors, dispatchers, and everyone involved in this restoration effort. Their hard work through all of this highlights the critical importance of what we do and demonstrates the incredible results we can achieve when we work together. As I mentioned, we benefit from a constructive regulatory environment here in Michigan, supportive of the investments we need to make on behalf of our customers. We continue to work collaboratively with our regulators to affordably execute our distribution investments for our customers. Our DTE Electric rate case filing supports our current 5-year plan of $10 billion in grid investments, including a request for $1 billion of distribution spend to be included in our infrastructure recovery mechanism by 2029.
These investments to improve reliability are also supported by the recent MPSC electric distribution audit. Lastly, we expect to file a DTE Gas rate case later this year that will be focused on continued infrastructure investment and reliability improvements while maintaining affordability for our customers. Let me move to Slide 7 to provide an update on our renewable investments and data center opportunities. We have plans for significant investments in cleaner generation over the next 5 years and into the next decade, and these investments are supported by the recent settlement of our 2024 renewable energy plan filing, our long-term integrated resource plan and Michigan's clean energy plan. The progress we are making on these investments has allowed us to safe harbor investment tax credits for these renewable projects into 2029, with the IRA provisions continuing to support our ability to execute these investments affordably for our customers.
Currently, we have 2,500 megawatts of renewable generation in service and are building roughly 900 megawatts of renewables per year on average over the next 5 years. Solid land positions, combined with our ability to successfully move these projects through the interconnection and permitting processes puts us in a great position to execute our transition to cleaner energy. We also continue to make great progress with data centers. We are in advanced discussions with multiple Hyperscalers for over 3 gigawatts of new loads and are having ongoing discussions with multiple other data center operators for an additional 4 gigawatts. Customers currently in advanced discussions have secured land positions, established clear zoning pathways and have earned the backing of local communities. And the remaining 4 gigawatts in the pipeline either have confirmed access to land or are nearing finalization of land agreements.
The near-term data center load ramps up to 3 gigawatts will be met through a combination of existing generation capacity and new energy storage solutions. And longer term, additional data center loads will require incremental investments in new baseload generation. Energy storage needs will be aligned directly with data center load ramps on a one-to-one basis in the near term, driving incremental investments, which is not included in our current 5-year capital plan. And as we have mentioned, we continue to target closing our first large data center deal by the end of this year, which we expect will ramp to at least 1 gigawatt of new load. In addition to the growth these data centers could generate, they will also enhance affordability for existing customers. And as we have said, these data center opportunities are all upside to our current 5-year plan. And with that, I'll turn it over to Dave to give you a financial update.
Thanks, Joi, and good morning, everyone. Let me start on Slide 8 to review our second quarter financial results. Operating earnings for the quarter were $283 million. This translates into $1.36 per share. You can find a detailed breakdown of EPS by segment, including our reconciliation to GAAP-reported earnings in the appendix. I'll start the review at the top of the page with our utilities. DTE Electric earnings were $318 million for the quarter. Earnings were $39 million higher than the second quarter of 2024. The main drivers of the variance were rate implementation and timing of taxes, partially offset by higher O&M and rate base costs and warmer weather last year. On the timing of taxes, I mentioned this was fairly significant in the first quarter at negative $67 million relative to 2024. This is related to investment tax credits on two solar projects that went into service in the first quarter.
This timing was known and built into our plan and reverses during the balance of the year with $37 million reversing in the second quarter. Moving on to DTE Gas. Operating earnings were $6 million, which was $6 million lower than the second quarter of 2024. The earnings variance was driven by higher O&M and rate base costs, partially offset by cooler weather. Let's move to DTE Vantage on the third row. Operating earnings were $31 million for the second quarter of 2025. This is a $17 million increase from 2024, driven by RNG production tax credits and higher custom energy solutions earnings. We remain on track for the full year guidance at DTE Vantage. On the next row, you can see Energy Trading earned $24 million for the quarter. We continue to experience favorability and strong margins in our contracted and hedged physical power portfolio, putting us in a strong position to start 2025. On a year-to-date basis, we are currently near the high end of operating earnings guidance for this segment.
This strong performance places us in a favorable position to leverage any potential further upside across DTE to provide flexibility and strategic support for future years. Finally, Corporate & Other was unfavorable by $56 million quarter-over-quarter due primarily to the timing of taxes as well as higher interest expense. As with DTE Electric, this tax timing will reverse during the year, and we expect to end the year in the guidance range in this segment. Overall, DTE earned $1.36 per share in the second quarter of 2025, which positions us well to achieve the high end of our guidance range in 2025. Let me wrap up on Slide 9, and then we'll open the line for questions. Our team remains committed to deliver for all of our stakeholders. We are positioned to achieve the high end of our operating EPS guidance this year and continue to use favorability to eliminate backlogs that will help future years.
Our 5-year capital investment plan of $30 billion supports our customer-focused reliability investments and our cleaner generation investments. Emerging data center opportunities provide potential upside to this 5-year capital investment and EPS growth plan. DTE continues to be well-positioned to deliver the premium total shareholder returns that our investors have come to expect with a strong balance sheet that supports our future capital investment plan with modest equity issuances of $0 to $100 million over the next 3 years. We remain confident in our long-term operating EPS growth rate target of 6% to 8% through 2029, with RNG tax credits providing additional confidence we will reach the high end of our targeted range through 2027. As Jerry mentioned, the extension of these tax credits through 2029 are positive for DTE, giving us greater confidence in our 5-year plan, which we will be updating this fall. With that, I thank you for joining us today, and we can open the line for questions.
分析師問答
Your first question comes from the line of Nicholas Campanella with Barclays.
Congratulations on all the announcements. I wanted to confirm that it seems you have a clear path to 3 gigawatts of conversations, with 4 more gigawatts in the pipeline. What is the current capacity of the system to handle that 3 gigawatts? Additionally, what would be the tipping point for you to accelerate the 2026 Integrated Resource Plan if more capacity is required? Essentially, when would you need to start investing in new generation capital expenditures, and how many gigawatts would that involve?
Hi, Nick. Thanks for the question. And what an exciting time that we're talking about load growth. That's really an important piece of discussions we're having internally with data center providers, and those conversations are going quite well. So let me just recap. Early on, we announced 2.1 gigawatts frame agreements, with data center providers. And we're seeing a lot of interest in Michigan because we have excess capacity. So that's drawn data center providers to the state. And of course, we now have the sales and use tax exemption. So that further increases their interest. What we're seeing now is a lot of activation on the part of Hyperscalers. So we've been very conservative about building out our pipeline and allowing companies to enter our pipeline. They have to have land positions or line of sight to a land position and a pathway to zoning and permitting that's required for them to build.
And so based on just recent intensity on the part of Hyperscalers, we're seeing them make pretty nice inroads on securing land positions and making their way to permitting requirements, and they're also garnering the support of local communities, and that goes a long way in advancing them through our pipeline. So now we see what was colocators kind of moving toward the back of the pipeline and Hyperscalers consuming at least the upper portion of our pipeline and positioning themselves to sign energy service agreements along with storage agreements. And we're exchanging paper right now, and that paper has a little bit of red ink on it, and that's all good progress. So we're in active negotiations with large Hyperscalers, and we're continuing conversations with those colocators. As we understand their load ramps, we're going to use our existing D11 rates or our existing industrial rate to serve that load along with storage.
And the way you can think about it is near-term load ramps would require us to begin construction of storage assets in 2026 and beyond. There is some urgency on the part of the data center providers to begin the construction of their facilities by 2028 so that they can take advantage of the sales and use tax. So with that said, we have to get ahead of them in building out those storage assets. This load ramp, all the ramps that we are getting a better understanding of and we'll finalize once we finalize the deals will be incorporated in our IRP next year. So the idea here is to serve the load with the existing capacity we have up to 1 gigawatt. And there are certain periods within the planning year where we're a little short, I'll call it, marginally short that will meet the need by way of storage. So it will bridge the gap near term. As we progress through their load ramps, we'll get to a point where we have to build out more dispatchable resources, larger dispatchable resources, but that will get all flushed out in our IRP next year.
So we don't intend to pull forward the IRP. What we intend to do is serve the load near term with our existing riders and tariffs, and then move toward building out larger assets based on the results of the IRP.
That's really clear. So I guess just to wrap that all up, I mean, thinking about the context of the long-term CAGR, load is a tailwind. It seems like some CapEx and storage is coming into the plan as soon as 2026. You just got the extension of RNG. I know you've had that communication that you're at the high end or above the EPS CAGR in '26 and '27. Just how are you kind of thinking about it beyond that through 2029?
Yes. Currently, the extension of the RNG tax credit provides us with flexibility in our plans, which is a very positive development. This gives us added confidence that we can achieve the higher end of our targets. As we progress with our plans, we aim to update them towards the end of this year, likely during the third quarter call or at the EEI event, where we will outline our CapEx plans and growth rate. We do not plan to exceed a growth rate of 6% to 8%, and this extension gives us the assurance that reaching the upper limit is achievable.
Your next question comes from the line of David Arcaro with Morgan Stanley.
Congratulations, Jerry. I was wondering maybe on the back of the OBBB, could you just frame any impacts on the renewable plans, any risk that you see from the executive order and continued uncertainty there?
Yes. Thanks, David. And the final bill, the reconciliation bill really supports our 5-year plan. And what we've been able to do is safe harbor our renewable investments through into 2029. And this is all positive news for our customers. Just as a reminder, we have to build these assets. It is required under the law, and we also have a very popular and successful voluntary renewable program. So we're going to build these renewable assets regardless. And what the IRA did is make it more affordable for customers. That said, what we've done based on us just being in a position to activate very quickly, we've been able to safe harbor those investment tax credits for our customers through 2029. Additionally, the battery storage projects will continue to qualify for the investment tax credits through 2036, which is also supportive of our plan and puts us in a really good position with the build-out we intend to do for data centers.
Transferability was maintained. So that's another key element that we view as very positive. So we feel really confident in what our plan entails today. And also, we feel really good about where we're sitting with RNG tax credits as well. The added year is an added benefit. And as I mentioned before, that gives us more flexibility and allows us to have more confidence around hitting the high end. In terms of some of the executive orders, the safe harboring we've already done really insulates us from any exposure to FIAC. And so I feel like we've got solid plans in place that remain in place through the duration of our 5-year plan. And we still have a little bit of opportunity because we have to begin construction by the end of this year. So that gives us a little more flexibility. If there's any additional tax credits that we want to secure, we may be able to do that. But all in all, I think the final bill supports our plan, and we've been able to activate to insulate ourselves from any exposure hereafter.
Great, that's really helpful. Looking at earnings performance so far this year, Dave, can you share how much flexibility we have to absorb any potential weather-related volatility for the rest of 2025? Additionally, where do we stand as we look ahead to 2026 and leverage the strong earnings from this year?
Yes, David, as we mentioned, we're in a strong position right now after the second quarter. I can also say we've experienced a warm July. We are looking for opportunities to ensure we have a successful year in 2025, while also seeking investment opportunities that will benefit us in the years ahead. We feel optimistic about the year and our capability to reach the upper end of expectations, as well as to support our future growth.
Your next question comes from the line of Aidan Kelly with JPMorgan.
This is actually Aidan Kelly on for Jeremy. Just wanted to hone in on the data center front again. Just curious to see if you could offer any like confidence level for the 3 gigawatts of hyperscaler load coming online as well as the 4 gigawatts you kind of outlined in the opening remarks. I know you mentioned some pathways to zoning and permitting and land positions. So it seems like some good visibility there, but just wanted to see how you frame it in terms of a confidence level.
Yes. So our goal is to get at least 1 gigawatt signed before the end of the year, and we're making great progress toward that goal. We're in active discussions. I can tell you that I've had personal interaction with the principals at some of the data center providers. These are Hyperscalers, large companies that are looking to land here in Michigan. And we've got meetings set up yet this week to talk to additional providers. So we're feeling really good about the progress that we're making and the fact that we're exchanging terms, we're getting feedback on what works for them, certainly, and we've got some flexibility to meet their needs. I think we will have a lot more to say on the third quarter call and by the end of the year. But certainly, things are progressing in the right fashion, and we feel really good about the progress and are feeling fairly confident that we'll get something done before the end of the year.
Understood. Understood. That's helpful. I guess just on the storage, just curious for that 1 gigawatt of data center, presumably could be matched with energy storage. Like would that be over like a 1-, 3- or 5-year time frame like at a high level?
Yes, let me explain it this way. As the data center load increases, I'll refer to it as one gigawatt, we will meet that demand using our excess capacity along with a storage expansion. You can think of it as a one-to-one ratio. For every gigawatt of data center load we add, we will need to build an equivalent gigawatt of storage. This will be accomplished through a mix of power purchase agreements and self-build projects. Just to provide some benchmarks, the cost for self-build is around $15 per megawatt, and the total investment for a gigawatt of storage, combining both self-build and PPAs, will be approximately $1 billion. We anticipate starting construction based on the current load ramp projections in 2026, with the storage coming online incrementally in 2027. This will continue over a few years. As we progress further into our five-year plan, the demand will likely require us to develop larger-scale projects, such as a combined cycle plant with carbon capture capabilities. This is our current outlook, and as negotiations advance and we finalize these load projections, we will incorporate everything into our integrated resource plan, which will guide us in determining the optimal mix of generation.
Your next question comes from the line of Julien Dumoulin-Smith with Jefferies.
Congratulations to both of you again. It's been a pleasure, and more importantly, Joi, I look forward to working with you in the future. Congratulations once more.
Thank you.
Of course, absolutely. I wanted to build on your previous point because it was well made. When considering the overall update coming up, I believe the forecast does not fully capture the total opportunity in renewable natural gas and the extension through 2029, as you mentioned to Nick. Additionally, based on your earlier comments, the battery storage opportunity appears very promising during the same 2027 to 2029 timeframe. I’d like to emphasize the last point you made about the gas opportunity. What is your perspective on the visibility for that aspect, particularly regarding the integrated resource plan and the potential for capital expenditure to increase during those later years, 2027 through 2029? I just want to ensure I grasp the various elements that are involved in the updates expected for the third quarter or year-end. What are the different capital expenditure items?
A combined cycle plant would be towards the end of our five-year plan and into the next phase. We need to go through the certificate of need process, which is part of the Integrated Resource Plan, to develop a combined cycle plant. The queues are increasing, so we're positioning ourselves accordingly. We are already in the MISO queue for at least one plant and possibly two to meet our current demand. We still plan to retire Monroe by the end of 2032. Therefore, we must prepare and get in line before we file the IRP. Although the timing isn't perfectly aligned, we're preparing as if we will introduce combined-cycle gas turbines at that time and are building the right partnerships with EPC contractors and turbine suppliers. Regarding storage, we anticipate it coming into the plan starting in 2026 in phases, leading to capital expenditure for a combined cycle plant toward the very end of the plan.
Got it. Excellent. And then just to understand the ramp rate here. I mean, obviously, you're talking about a gigawatt of both conveniently incremental load and opportunity to serve. Is there a potential that you kind of accelerate though that incremental? You talked upwards of 7, I think, implied gigawatts of opportunity here. How do you think about the timing of that sort of feathering in? Is that principally at the tail end or beyond the plan? Or is there a potential that you actually are ramping up even more, shall we say, multiple parallel data centers to achieve more than a gigawatt? And is that conceivable given the generation mix and planning cycle you just described?
Well, Julien, let me just say it this way. The negotiations are ongoing. And a point of negotiation is really understanding the low ramp. So we've got early near-term ideas around what that low ramp exactly looks like for at least a few of the Hyperscalers, and we're still continuing those discussions. So serving where we have a short is really early on in the plan is really how we support the load. We bring on the storage to support the load during those periods. But until we get a final deal done, we don't know definitively what those load ramps look like. That's still a point of negotiation. And so I don't want to get too far over our skis and articulate to you that we're going to ramp in a gigawatt this year and a gigawatt next year. I can't say that definitively. What I do know is at least what we're seeing right now across multiple data center providers, we've got at least 1 gigawatt worth of opportunity that we will have to support near term.
To clarify on that, Julien, a little bit, this is Dave. Yes, with the additional storage, it gives us a little more of the excess generation that we've been talking about. So we're able to use that storage to reach some of those capacity positions. And so we do have more than 1 gigawatt of availability as we bring the storage on to support that.
Your next question comes from the line of Andrew Weisel with Scotiabank.
I want to echo the congratulations to both Joi and Jerry. Between the last Jerry, this Jerry and now Joi, your Board clearly likes alliteration. Joi, my first one is more of a philosophical one. It is a financial question, but the company has generally been very conservative. Your DPE reputation is one of underpromising and overdelivering. I think the philosophy serves you well. But my question is, how are you thinking about that philosophy? I think I heard you say that you're not expecting to grow EPS faster than the high end of 6% to 8%. So maybe that sort of answers it. But I'd love to hear how you're thinking about that general attitude. I know you've clearly alluded to an update in a few months, but how do you think about that philosophy?
Yes. I feel like I've learned from the best to make sure that we always deliver for our stakeholders, including our shareholders. And so we want to make sure that we have a high degree of confidence in our plans, and we have the requisite flexibility in those plans to be consistent and deliver consistently for our shareholders. So at this point, I think we've got a solid plan in place, and we're incorporating what we believe is flexibility in that plan so that we continue to deliver right on top of what we promised.
Yes, we have some equity that comes in regularly throughout the year. It falls within the range of $0 to $100 million, which we issue through internal mechanisms. This range is projected from 2025 to 2027 in our base plan. After 2027, we anticipate some additional equity, estimating $200 million to $300 million more during those years. Regarding your question about bringing in more capital, we would need to consider additional equity or equity-like products to maintain our 15% FFO to debt ratio. However, this is favorable equity, linked to the growth we expect as a result.
Right. And that's something you'll give more details on in a few months.
Yes, we'll put all that together when we show our new capital plan, we'll define how we're going to finance that as well.
Thank you all for being here today. DTE is performing exceptionally well, and I am very proud of what our team has achieved this year, particularly in terms of our high levels of employee engagement, which is our core strength. The grid is functioning effectively, and all of our investments are making a significant impact. I would also like to commend our power plant operators and leaders for their excellent performance during the recent heat wave. At our nuclear plant, Fermi, we have been recognized as one of the top plants in terms of operational excellence. Our gas team has also excelled, successfully managing colder-than-normal weather. Financially, we are on track to meet the high end of our guidance and are in a favorable position, which we plan to use to address backlogs and prepare for 2026 and beyond. As I wrap up, I want to emphasize what an honor it has been to serve as DTE's CEO. Joi is an outstanding leader who will continue to execute our strategic plans with excellence, which is critical for our operations. I look forward to remaining connected with you as Executive Chairman in the coming years. DTE is in capable hands with Joi, and I am confident she will lead the company to success. Have a great morning, and take care of yourselves.
Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.