DTE Energy Focuses on Reliability Improvement in Detroit
DTE Energy Company DTE continues to focus on improving power reliability in Southeast Michigan. The company aims to complete upgrades on 1,300 circuits throughout southeast Michigan by 2020, at a total projected cost of about $415 million.
The company, in its latest project in the Belmont neighborhood of northwest Detroit, is changing power poles, attaching new electric lines and adding equipment with the view to enhance power reliability for families and businesses.
Over the last few years, in a bid to ensure maximum benefits from its investments, the company has been working on improving service reliability for its customers, reducing power outages and upgrading equipment in its service areas. As such, power reliability has been seen to improve 44% on an average in other areas where similar work has taken place.
Work in the Belmont locality, Puritan Avenue and Greenfield Road began in late August and is scheduled to be complete this month. Since 2013, 400 reliability projects have cost DTE Energy about $125 million and additional 900 projects are scheduled to be completed by 2020.
Reliability improvement projects usually include new power lines, poles and other equipment that have better resistance against storm damage. These projects are essentially aimed at keeping the power on consistently. They may also include the installation of equipment that ensure minimum impact during outages as well as improved devices to identify potential equipment problems in advance and automatically re-route power around those spots.
DTE Energy expects an investment of at least $6.6 billion in its electrical distribution system over the next decade.
DTE Energy follows a disciplined capital spending program to maintain and upgrade the reliability of its electric utility systems. In addition, the company is focused on its gas pipeline integrity projects. The company made a capital investment of $1.7 billion through the third quarter.
Investors should note that the company’s shares price was $79.55 on Nov 17, down 1.86% from the previous day.
Zacks Rank
DTE Energy currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the power sector are Korean Electric Power KEP, Ameren Corporation AEE and Calpine Corp. CPN. While Korean Electric sports a Zacks Rank #1 (Strong Buy), both Ameren Corporation and Calpine Corp. carry a Zacks Rank #2 (Buy).
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