Jerry Norcia
Chairman, President and Chief Executive Officer at DTE Energy
Thanks, Barb, and good morning everyone, and thanks for joining us. I hope everyone is having a healthy and safe year so far. This morning, I'll start by giving you a recap on our outstanding 2022 business performance, provide highlights on how we are well positioned for 2023, and give an overview on the robust opportunities in our long-term plan.
Dave Ruud will provide a financial update and wrap things up before we take your questions. I'll begin on Slide 4. We delivered another solid year for all our stakeholders in 2022, which included delivering strong financial results, continuing our excellent track record of creating shareholder value for our investors.
I continue to be impressed by our amazing team that delivers exceptional service to our customers and to each other. I always say that employee engagement is the secret sauce that drives our success at DTE. And our team continues to operate at top decile engagement levels as measured by the Gallup organization.
This engagement was recognized by earning the Gallup Great Workplace Award for the 10th consecutive year, and is evidenced in a way our team shows up every day. Our team continued to deliver for our customers in 2022. I am very proud that DTE Gas is ranked first in residential customer satisfaction as measured by J.D. Power. This recognition signifies our strong commitment to our customers. We also undertook a number of initiatives to continue to improve electric reliability and we see that paying dividends for our customers. We invested more than $1 billion in our electric grid last year to help improve reliability for our customers.
In 2022, the electric grid operated without incidence 99.9% of the time. Across DTE's electric service territory, customers experienced 21% fewer power interruptions in 2022 versus 2021, and the average outage duration time was down more than 40%. In communities where DTE completed some of our most focused work on a grid's more challenged infrastructure, customers experienced up to a 70% improvement in reliability. 2022 was a record year for investment in our grid and the result was stronger reliability.
In addition, our field crews continued their focus on grid resilience, and trimmed more than 6,500 miles of trees as we continue on our accelerated tree trim program. It's clear that as we invest in a grid, our customers benefit with improved performance and more reliable power.
For our broader community, we continue to be the largest producer of an investor in renewable energy in the state of Michigan. We also added significant additional MIGreenPower customers through our voluntary renewable energy program continued on our path to decarbonization.
In 2022, we invested $2.5 billion with Michigan businesses, creating and sustaining more than 11,000 jobs across the state. And on the investor front, 2022 was another strong financial year. We delivered operating EPS growth of over 10% from our 2021 original guidance midpoint. And we are well positioned to continue to deliver the strong performance and premium growth that DTE is known for. As you know, we received an order from the Michigan Public Service Commission on our electric rate case last November. Although there were a lot of positive aspects to the outcome for which we are very grateful for, we were disappointed by the projected residential sales volume in the final order.
Accordingly, we have implemented a series of one-time O&M actions to address this challenge that will support us delivering the midpoint of our operating EPS guidance range, consistent with the early outlook we provided in November. Dave will go into a lot more detail on the O&M actions that we are taking.
DTE and the MPSC share a mutual interest in bringing affordable, reliable and cleaner energy to our state and our customers. And the residential sales volume will be reviewed in our recently filed rate case. For 2023, our operating EPS guidance delivered 7% growth from the original 2022 guidance midpoint, and our long-term EPS growth target is 6% to 8%. We are confident in our ability to deliver that growth for our investors.
Let's turn to Slide 5. We are making significant customer-focused investments to build the grid of the future and invest in cleaner generation, while modernizing the gas transmission and distribution system. We increased our 5-year utility capital plan by 20% or $3.5 billion over last year's plan. And over the next 10 years, we plan to invest $45 billion in our 2 utilities. The focus of these investments continues to be infrastructure renewal and cleaner generation at DTE Electric.
While at DTE Gas, our plan includes main renewal and base infrastructure investments, as we accelerate the modernization of the gas transmission and distribution system. Now I will highlight some of the successes at our electric company and go through the details of our electric capital plan on the next slide.
In 2022, we made significant progress on our path to cleaner generation and a more reliable grid. We continued the strong growth in our MIGreenPower power program, signing two of the largest utility renewable contracts in the country with Ford Motor Company and Stellantis. We have currently 2,250 megawatts subscribed to this program, supported by 900 businesses and 85,000 residential customers, and it continues to grow daily and exceed expectations. In 2022, we retired two coal plants. The shift from coal to natural gas and renewables supports cleaner energy and helps further reduce O&M costs.
Our diverse energy mix helps us reduce fuel costs as well and allows us to maintain flexibility to adapt to future technological advancements. Our five-year plan for cleaner generation is $2 billion higher than the previous plan, including $1 billion for voluntary renewables and $1 billion for solar related to our integrated resource plan. We increased our distribution infrastructure investments by $1 billion. We continue to modernize our electric grid to prepare for increased extreme weather and load growth that we're anticipating from EV adoption.
Let's turn to Slide 7 and go into additional details on what supports this plan. Supporting our five-year utility capital plan is the integrated resource plan we filed in November with the commission. The IRP accelerates our generation transformation to achieve carbon emission reductions at DTE Electric of 85% by 2035, 90% by 2040 and net zero by 2050. This is a significant acceleration from our prior plan. This filing provides updates on our path for decarbonization and our commitment to continue providing cleaner, more reliable, affordable energy to our customers.
The IRP supports the mission economy and tax base with power generated in our home state, invest $9 billion over the next 10 years into Michigan's economy, and reduces the cost of our clean energy transition by $1.4 billion from our prior plan. We will pursue a settlement in this case, and we will have an outcome in the second half of this year. The IRP and our investments in cleaner generation are supported by the inflation Reduction Act or the IRA. The IRA includes a lot of positive elements for DTE that benefit both our utility and non-utility businesses.
We continue to focus on customer affordability as we go forward with our robust investment plan. Our commitment to a continuous improvement culture gives us confidence we will maintain our affordability goals, and the IRA will help enable affordability throughout our plan.
Just a couple of weeks ago, we filed a rate case that underpins investments in system reliability, grid modernization and cleaner generation investments. We intentionally did not request a base rate increase during the COVID pandemic to assist customers with affordability. Since 2020, we invested more than $8 billion in DTE Electric system while keeping base rates nearly flat. In order to continue to make progress that our customers expect and account for the significant investments we have made in the grid and cleaner generation, the electric company needed to file a rate case.
After four years of essentially no base rate increases, we are requesting an increase that would go into effect at the end of 2023. This request supports investments in Michigan to improve reliability and deliver clean energy while maintaining affordable rates.
The majority of the request in this filing is attributable to capital investments, sales reductions and the cost of debt. We are committed to working with all interested parties to pursue a settlement that strikes the right balance between continuing to increase reliability and providing cleaner energy for our customers, all the while maintaining affordability.
We also filed for an infrastructure recovery mechanism or an IRM, in the case. Modeled after our DTE Gas IRM, the electric IRM would allow us to recover the cost of grid infrastructure investments between rate cases. It is our objective that as the IRM grows over time, it would help stretch the time between rate cases as it does for DTE Gas.
Let's move to Slide 8 and discuss DTE Gas. At DTE Gas, we are continuing main renewal for reliability improvements and further greenhouse gas emission reductions, as well as replacing aging transmission equipment. We successfully completed 220 miles in 2022 and have a target of 200 miles in 2023.
We are targeting a reduction of 65% of our greenhouse gas emissions by 2030 and net zero by 2050. As I mentioned earlier, DTE gas is ranked #1 in residential customer satisfaction, of which we are very proud and thank our DTE team for this tremendous accomplishment.
Let's move to Slide 9 to discuss DTE Vantage. We continue to make significant progress in project development. In 2022, we placed an RNG project and another customer energy solutions project in service. In 2023, we are placing three new RNG projects and one custom energy solutions project in service. We also recently executed a new long-term fixed fee agreement with Ford Motor Company for its new electric vehicle and battery manufacturing complex.
This complex, which is expected to be in service in 2024 will be Ford's largest EV manufacturing facility in North America. DTE will invest over $200 million, provide steam, hot and chilled water to Ford, and electricity to Tennessee Valley Authority.
We are consistently growing earnings by over $15 million annually with capital investments of $1 billion to $1.5 billion in the five-year plan. This is underpinned by federal and California low carbon fuel standards and the IRA, which supports a very robust pipeline of projects in both the RNG and custom energy solutions areas.
We remain confident in continued growth at this segment. With that, I'll turn it over to Dave to give you a financial update. Dave, over to you.
