(Reuters) – DTE Energy reported a fall in fourth-quarter profit on Thursday, as the utility took a hit from lower pricing for electricity.
Regulated utilities use rate-case proceedings to determine the amount customers need to pay for electricity and natural gas. DTE had filed one such rate case to help reduce the cost of producing electricity.
The utility said it saved about $300 million in fuel and transportation costs after the rate case came into effect in November, but it also reduced the electricity rates for residential customers by roughly $5 a month.
DTE provides electricity to 2.3 million customers in Southeast Michigan and natural gas to 1.3 million customers in Michigan.
At the company’s electric segment – its largest by income -operating earnings fell to $195 million during the October-December quarter from $244 million a year earlier.
Meanwhile, operating earnings from its natural gas segment remained flat year-over-year.
DTE said it expects 2025 operating earnings to be in the range of $7.09 to $7.23 per share, the midpoint of which is below analysts’ estimate of $7.20 according to data compiled by LSEG.
The utility’s net income fell to $292 million, or $1.41 per share, for the quarter ended December 31, from $419 million, or $2.02 per share, a year earlier.
(Reporting by Vallari Srivastava and Pooja Menon in Bengaluru; Editing by Krishna Chandra Eluri)
