DTE leader repeats call for new nuclear reactor in Michigan
DETROIT, MICHIGAN - DTE Energy Co. CEO Anthony Earley told shareholders the company's cost containment strategy is on track and called for state lawmakers to revamp legislation that would help bring a new nuclear reactor to Michigan.
Earley, speaking at the utility's annual meeting at its downtown headquarters recently, reported that DTE netted $95 million in annual cost savings in 2006. Some of the savings comes from the sale of unprofitable assets, such as some natural gas power plants, and the elimination of 900 jobs. About 700 workers left the company last year, and 200 jobs will go unfilled.
"We are continuing this improvement effort and expect total annual savings of $250 million to $350 million by 2008," he said. "These savings will reduce operating costs, capital expenses and fuel costs."
Additional cost-cutting and staff reductions will take place in 2007 at the company, which employs about 10,000, but both numbers will be less than last year, Earley said.
Shareholders also were updated on the progress of DTE's application to add a second nuclear reactor at the site of its Fermi 2 plant near Monroe. Earley said the reactor is needed to meet expected growth in Michigan's energy demand but said it won't become a reality if regulators and lawmakers don't change electric choice rules in the state.
Electric choice allows customers, predominately large businesses, to buy power from entities other than DTE. While the amount of such power bought in Michigan is falling, the uncertainty it creates makes it difficult for DTE and their financiers to commit to a nuclear plant, the company maintains.
Related News
US Electricity Prices Rise Most in 41 Years as Inflation Endures
WASHINGTON - Electricity bills for US consumers jumped the most since 1981, gaining 15.8% from the same period a year ago, according to the US Bureau of Labor Statistics.
Natural gas bills, which crept back up last month after dipping in July, surged 33% from the same month last year, labor data released Tuesday showed. Broader energy costs slipped for a second consecutive month because of lower gasoline and fuel oil prices. Even with that drop, total energy costs were still about 24% above August 2021 levels.
Electricity costs are relentlessly climbing because prices for the two biggest power-plant fuels -- natural…