Overview Key strengths Key risks Fully regulated, low-risk natural gas distribution utility. Elevated capital spending for infrastructure investments. Primarily residential customer base provides cash flow stability. Lack of geographic and regulatory diversity given its focus on Michigan. Constructive regulatory environment, including timely cost and investment recovery, supports its credit metrics. Continued negative discretionary cash flow indicates external funding needs. We expect DTEG to continue to effectively manage its regulatory risk and benefit from the cost-recovery mechanisms allowed under Michigan's favorable regulatory framework. We expect the company to maintain credit measures consistent with its current rating and manage its regulatory risks through the various cost recovery mechanisms allowed under Michigan's supportive regulatory framework. The stable outlook on DTEG reflects our base-case
