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What changed in DTE ENERGY CO's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of DTE ENERGY CO's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+194 added−200 removedSource: 10-K (2024-02-08) vs 10-K (2023-02-23)

Top changes in DTE ENERGY CO's 2023 10-K

194 paragraphs added · 200 removed · 163 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeUncertainty around future environmental regulations creates difficulty planning long-term capital projects in the Registrants' generation fleet and for DTE Energy's gas distribution businesses. These laws and regulations require the Registrants to seek a variety of environmental licenses, permits, inspections, and other regulatory approvals.
Biggest changeCompliance with these regulations can significantly increase capital spending, operating expenses, and plant down times, and can negatively affect the affordability of the rates charged to customers. 18 Table of Contents Uncertainty around future environmental regulations creates difficulty planning long-term capital projects in the Registrants' generation fleet and for DTE Energy's gas distribution businesses.
Additionally, we cannot guarantee that we will receive regulatory approval of our capital plans to transition to renewable energy and other new technologies.
Additionally, we cannot guarantee that we will continue to receive regulatory approval of our capital plans to transition to renewable energy and other new technologies.
DTE Gas can also experience higher than anticipated expenses from emergency repairs on its gas distribution infrastructure required as a result of weather-related issues. Unplanned power plant outages may be costly. Unforeseen maintenance may be required to safely produce electricity or comply with environmental regulations.
DTE Gas can also experience higher than anticipated expenses from emergency repairs on its gas distribution infrastructure required as a result of weather-related issues. 20 Table of Contents Unplanned power plant outages may be costly. Unforeseen maintenance may be required to safely produce electricity or comply with environmental regulations.
Because the Registrants’ distribution systems are interconnected with those of third parties, the operation of the Registrants’ systems could be adversely affected by unexpected or uncontrollable events occurring on the systems of such third parties. Construction and capital improvements to the Registrants' power facilities and DTE Energy's distribution systems subject them to risk.
Because the Registrants’ distribution systems are interconnected with those of third parties, the operation of the Registrants’ systems could be adversely affected by unexpected or uncontrollable events occurring on the systems of such third parties. 19 Table of Contents Construction and capital improvements to the Registrants' power facilities and DTE Energy's distribution systems subject them to risk.
The Registrants are unable to predict the effect a work stoppage would have on their costs of operations and financial performance. 21 Table of Contents DTE Energy may not achieve the carbon emissions goals of its electric and gas utilities.
The Registrants are unable to predict the effect a work stoppage would have on their costs of operations and financial performance. DTE Energy may not achieve the carbon emissions goals of its electric and gas utilities.
Adverse statements, whether or not driven by political or public sentiment, may also result in investigations by regulators, legislators and law enforcement officials or in legal claims. 19 Table of Contents The Renewable Portfolio Standard and energy waste reduction may affect the Registrants' business and federal and state fuel standards may affect DTE Energy's non-utility investments.
Adverse statements, whether or not driven by political or public sentiment, may also result in investigations by regulators, legislators and law enforcement officials or in legal claims. The Renewable Portfolio Standard and energy waste reduction may affect the Registrants' business and federal and state fuel standards may affect DTE Energy's non-utility investments.
Should a major subsidiary not be able to pay dividends or transfer cash flows to DTE Energy, its ability to pay interest and dividends would be restricted. 24 Table of Contents Item 1B. Unresolved Staff Comments None.
Should a major subsidiary not be able to pay dividends or transfer cash flows to DTE Energy, its ability to pay interest and dividends would be restricted. Item 1B. Unresolved Staff Comments None.
Economic losses might not be covered in full by insurance, or the Registrants' insurers may be unable to meet contractual obligations. 23 Table of Contents Safety and Security Risks The Registrants' businesses have safety risks.
Economic losses might not be covered in full by insurance, or the Registrants' insurers may be unable to meet contractual obligations. Safety and Security Risks The Registrants' businesses have safety risks.
There are several bargaining units for DTE Energy's approximately 5,050 and DTE Electric's approximately 2,600 represented employees. The majority of represented employees are under contracts that expire in 2027. A union choosing to strike would have an impact on the Registrants' businesses.
There are several bargaining units for DTE Energy's approximately 4,900 and DTE Electric's approximately 2,550 represented employees. The majority of represented employees are under contracts that expire in 2027. A union choosing to strike would have an impact on the Registrants' businesses.
Adverse changes in the Registrants' credit ratings may negatively affect them. Regional and national economic conditions, increased scrutiny of the energy industry and regulatory changes, as well as changes in the Registrants' economic performance, could result in credit agencies reexamining their credit ratings.
Regional and national economic conditions, increased scrutiny of the energy industry and regulatory changes, as well as changes in the Registrants' economic performance, could result in credit agencies reexamining their credit ratings.
If DTE Energy's goodwill becomes impaired, it may be required to record a charge to earnings. DTE Energy annually reviews the carrying value of goodwill associated with acquisitions it has made for impairment. Goodwill is also reviewed on a quarterly basis whenever events or circumstances indicate that the carrying value of these assets may not be recoverable.
DTE Energy annually reviews the carrying value of goodwill associated with acquisitions it has made for impairment. Goodwill is also reviewed on a quarterly basis whenever events or circumstances indicate that the carrying value of these assets may not be recoverable.
Should the financial conditions of some of DTE Energy's significant customers deteriorate as a result of regional, national or international economic conditions, reduced volumes of electricity and gas, and demand for energy services DTE Energy supplies, collections of accounts receivable, reductions in federal and state energy assistance funding, and potentially higher levels of lost gas or stolen gas and electricity could result in decreased earnings and cash flows.
Should the financial conditions of some of DTE Energy's significant customers deteriorate as a result of regional, national or international economic conditions, reduced volumes of electricity and gas, and demand for energy services DTE Energy supplies, collections of accounts receivable, reductions in federal and state energy assistance funding, and potentially higher levels of lost gas or stolen gas and electricity could result in decreased earnings and cash flows. 22 Table of Contents If DTE Energy's goodwill becomes impaired, it may be required to record a charge to earnings.
Financial, Economic, and Market Risks DTE Energy's non-utility businesses may not perform to its expectations. DTE Energy relies on non-utility businesses for a portion of earnings and will depend on the successful execution of new business development in its non-utilities to help achieve overall growth targets.
DTE Energy relies on non-utility businesses for a portion of earnings and will depend on the successful execution of new business development in its non-utilities to help achieve overall growth targets.
Regulators may also decide to eliminate these mechanisms in future rate cases, which may make it more difficult for the Registrants to recover their costs in the rates charged to customers. The Registrants cannot predict what rates the MPSC will authorize in future rate cases.
Regulators may also decide to eliminate these mechanisms in future rate cases, which may make it more difficult for the Registrants to recover their costs in the rates charged to customers. The Registrants cannot predict what rates the MPSC will authorize in future rate cases, and unfavorable rate relief could impact our plans for significant capital investment.
DTE Energy has announced the voluntary commitments of its electric and gas utilities to achieve net zero carbon emissions by 2050, along with intermediate emissions reduction goals at various points in the intervening years.
DTE Energy has announced the voluntary commitments of its electric and gas utilities to achieve net zero carbon emissions by 2050, along with intermediate emissions reduction goals at various points in the intervening years. DTE Energy must also comply with the state of Michigan's requirement to meet a 100% clean energy standard by 2040.
The Registrants are dependent on coal for much of their electrical generating capacity as well as uranium for their nuclear operations. DTE Energy's access to natural gas supplies is critical to ensure reliability of service for utility gas customers. DTE Energy's non-utility businesses are also dependent upon supplies and prices of energy commodities and services.
DTE Energy's access to natural gas supplies is critical to ensure reliability of service for utility gas customers. DTE Energy's non-utility businesses are also dependent upon supplies and prices of energy commodities and services.
In addition, a reduction in the Registrants' credit ratings may require them to post collateral related to various physical or financially settled contracts for the purchase of energy-related commodities, products, and services, which could impact their liquidity.
In addition, a reduction in the Registrants' credit ratings may require them to post collateral related to various physical or financially settled contracts for the purchase of energy-related commodities, products, and services, which could impact their liquidity. 21 Table of Contents Poor investment performance of pension and other postretirement benefit plan assets and other factors impacting benefit plan costs could unfavorably impact the Registrants' liquidity and results of operations.
Any increase in funding requirements may have a material impact on the Registrants’ liquidity, financial position, or results of operations. 20 Table of Contents The supply and/or price of energy commodities and/or related services may impact the Registrants' financial results.
Any increase in funding requirements may have a material impact on the Registrants’ liquidity, financial position, or results of operations. The supply and/or price of energy commodities and/or related services may impact the Registrants' financial results. The Registrants are dependent on coal for much of their electrical generating capacity as well as uranium for their nuclear operations.
Since there can be no assurances that environmental costs may be recovered through the regulatory process, the Registrants' financial performance may be negatively impacted as a result of environmental matters.
Increased environmental regulation may also result in greater energy efficiency requirements and decreased demand at both the electric and gas utilities. Since there can be no assurances that environmental costs may be recovered through the regulatory process, the Registrants' financial performance may be negatively impacted as a result of environmental matters.
DTE Energy relies on cash flows from subsidiaries. DTE Energy is a holding company. Cash flows from the utility and non-utility subsidiaries are required to pay interest expenses and dividends on DTE Energy debt and securities.
In addition, the failure of a successful transfer of knowledge and expertise from any departing employees could negatively impact the Registrants' operations. DTE Energy relies on cash flows from subsidiaries. DTE Energy is a holding company. Cash flows from the utility and non-utility subsidiaries are required to pay interest expenses and dividends on DTE Energy debt and securities.
The Registrants could be required to install expensive pollution control measures or limit or cease activities, including the retirement of certain generating plants, based on these regulations. Additionally, the Registrants may become a responsible party for environmental cleanup at sites identified by a regulatory body.
These laws and regulations require the Registrants to seek a variety of environmental licenses, permits, inspections, and other regulatory approvals. The Registrants could be required to install expensive pollution control measures or limit or cease activities, including the retirement of certain generating plants, based on these regulations.
DTE Energy also expects to grow the non-utility businesses by developing or acquiring renewable energy and customer energy solutions projects over the long term; however, such opportunities may not materialize as anticipated. If DTE Energy's current and contemplated non-utility investments do not perform at expected levels, DTE Energy could experience diminished earnings and a corresponding decline in shareholder value.
DTE Energy also expects to grow the non-utility businesses over the long-term by developing or acquiring projects related to renewable energy, carbon capture and sequestration, and customer energy solutions; however, such opportunities may not materialize as anticipated.
Without sustained growth in the plan investments over time to increase the value of plan assets, the Registrants could be required to fund these plans with significant amounts of cash.
Without sustained growth in the plan investments over time to increase the value of plan assets, the Registrants could be required to fund these plans with significant amounts of cash. Such cash funding obligations could have a material impact on the Registrants' cash flows, financial position, or results of operations. The Registrants' ability to access capital markets is important.
Competition for skilled employees in some areas is high, and the inability to attract and retain these employees could adversely affect the Registrants' business and future operating results. In addition, the Registrants have an aging utility workforce, and the failure of a successful transfer of knowledge and expertise could negatively impact their operations.
The Registrants' businesses are dependent on their ability to attract and retain skilled employees. Competition for skilled employees in some areas is high, and the inability to attract and retain these employees could adversely affect the Registrants' business and future operating results.
A significant theft, loss, or fraudulent use of customer, shareholder, employee, or Registrant data by cybercrime or otherwise, could adversely impact the Registrants' reputation, and could result in significant costs, fines, and litigation.
A significant theft, loss, or fraudulent use of customer, shareholder, employee, or Registrant data by cybercrime or otherwise, could adversely impact the Registrants' reputation, and could result in significant costs, fines, and litigation. 23 Table of Contents General and Other Risks Failure to attract and retain key executive officers and other skilled professional and technical employees could have an adverse effect on the Registrants ’ operations.
In addition, DTE Energy cannot predict the ultimate impact of achieving these objectives, or the various implementation aspects on its reliability or its results of operations, financial condition, or liquidity. DTE Energy could suffer financial loss, reputational damage, litigation, or other negative repercussions if we are unable to meet our voluntary emissions reductions goals.
In addition, DTE Energy cannot predict the ultimate impact of achieving these objectives, or the various implementation aspects on its reliability, availability or price of purchased power, or on its results of operations, financial condition, or liquidity.
The Registrants cannot predict with certainty the amount and timing of future expenditures related to environmental matters because of the difficulty of estimating cleanup costs. There is also uncertainty in quantifying liabilities under environmental laws that impose joint and several liability on potentially responsible parties.
There is also uncertainty in quantifying liabilities under environmental laws that impose joint and several liability on potentially responsible parties. The Registrants may also incur liabilities as a result of potential future requirements to address climate change issues.
Turmoil in credit markets may constrain the ability of Registrants and their subsidiaries to issue new debt, including commercial paper, and to refinance existing debt. Macroeconomic events may lead to higher interest rates on debt and could increase financing costs and adversely affect the Registrants' results of operations.
The Registrants' ability to access capital markets is important to operate their businesses and to fund capital investments. Turmoil in credit markets may constrain the ability of Registrants and their subsidiaries to issue new debt, including commercial paper, and to refinance existing debt.
The Registrants may also incur liabilities as a result of potential future requirements to address climate change issues. Proposals for voluntary initiatives and mandatory controls are being discussed in Michigan, the United States, and worldwide to reduce GHGs such as carbon dioxide, a by-product of burning fossil fuels.
Proposals for voluntary initiatives and mandatory controls are being discussed in Michigan, the United States, and worldwide to reduce GHGs such as carbon dioxide, a by-product of burning fossil fuels. If increased regulations of GHG emissions are implemented, or if existing deadlines for these regulations are accelerated, the operations of DTE Electric's fossil-fueled generation assets may be significantly impacted.
These regulations govern air emissions, water quality, wastewater discharge, and disposal of solid and hazardous waste. Compliance with these regulations can significantly increase capital spending, operating expenses, and plant down times, and can negatively affect the affordability of the rates charged to customers.
These regulations govern air emissions, water quality, wastewater discharge, and disposal of solid and hazardous waste.
Removed
If increased regulations of GHG emissions are implemented, or if existing deadlines for these regulations are accelerated, the operations of DTE Electric's fossil-fueled generation assets may be significantly impacted. Increased environmental regulation may also result in greater energy efficiency requirements and decreased demand at both the electric and gas utilities.
Added
Additionally, the Registrants may become a responsible party for environmental cleanup at sites identified by a regulatory body. The Registrants cannot predict with certainty the amount and timing of future expenditures related to environmental matters because of the difficulty of estimating cleanup costs.
Removed
Poor investment performance of pension and other postretirement benefit plan assets and other factors impacting benefit plan costs could unfavorably impact the Registrants' liquidity and results of operations.
Added
DTE Energy could suffer financial loss, reputational damage, litigation, or other negative repercussions if we are unable to meet our voluntary emissions reductions goals. Financial, Economic, and Market Risks DTE Energy's non-utility businesses may not perform to its expectations.
Removed
Such cash funding obligations could have a material impact on the Registrants' cash flows, financial position, or results of operations. 22 Table of Contents The Registrants' ability to access capital markets is important. The Registrants' ability to access capital markets is important to operate their businesses and to fund capital investments.
Added
If DTE Energy's current and contemplated non-utility investments do not perform at expected levels, DTE Energy could experience diminished earnings and a corresponding decline in shareholder value. Adverse changes in the Registrants' credit ratings may negatively affect them.
Removed
General and Other Risks Failure to attract and retain key executive officers and other skilled professional and technical employees could have an adverse effect on the Registrants ’ operations. The Registrants' businesses are dependent on their ability to attract and retain skilled employees.
Added
Macroeconomic events may lead to higher interest rates on debt and could increase financing costs and adversely affect the Registrants' results of operations. Rising interest rates could also reduce investor interest in DTE Energy's common stock, negatively impacting its share price and increasing its cost of equity.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeMine Safety Disclosures Not applicable. 25 Table of Contents Part II
Biggest changeMine Safety Disclosures Not applicable. 26 Table of Contents Part II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 26 Item 6. [Reserved] 27 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 26 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 27 Item 6. [Reserved] 28 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 50 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−0 removed1 unchanged
Biggest changeFor additional detail, see Note 21 to the Consolidated Financial Statements, "Stock-Based Compensation." See the following table for information as of December 31, 2022: Number of Securities to be Issued Upon Exercise of Outstanding Options Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Plans approved by shareholders — $ — 3,496,126 UNREGISTERED SALES OF DTE ENERGY EQUITY SECURITIES AND USE OF PROCEEDS Purchases of DTE Energy Equity Securities by the Issuer and Affiliated Purchasers The following table provides information about DTE Energy's purchases of equity securities that are registered by DTE Energy pursuant to Section 12 of the Exchange Act of 1934 for the quarter ended December 31, 2022: Number of Shares Purchased (a) Average Price Paid per Share (a) Number of Shares Purchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs 10/01/2022 — 10/31/2022 8,604 $ 107.81 — — — 11/01/2022 — 11/30/2022 2,776 $ 115.16 — — — 12/01/2022 — 12/31/2022 4,371 $ 116.43 — — — Total 15,751 — _______________________________________ (a) Represents shares of DTE Energy common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the price in effect at the grant date. 26 Table of Contents COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN Total Return to DTE Energy Shareholders (Includes reinvestment of dividends) Annual Return Percentage Year Ended December 31, Company/Index 2018 2019 2020 2021 2022 DTE Energy Company 4.19 21.36 (2.90) 19.42 1.27 S&P 500 Index (4.39) 31.48 18.39 28.68 (18.13) S&P 500 Multi-Utilities Index 1.77 24.36 (5.87) 14.17 0.62 Indexed Returns Year Ended December 31, Base Period Company/Index 2017 2018 2019 2020 2021 2022 DTE Energy Company 100.00 104.19 126.45 122.78 146.62 148.48 S&P 500 Index 100.00 95.61 125.70 148.81 191.49 156.78 S&P 500 Multi-Utilities Index 100.00 101.77 126.56 119.13 136.00 136.84
Biggest changeFor additional detail, see Note 21 to the Consolidated Financial Statements, "Stock-Based Compensation." See the following table for information as of December 31, 2023: Number of Securities to be Issued Upon Exercise of Outstanding Options Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Plans approved by shareholders — $ — 2,820,677 UNREGISTERED SALES OF DTE ENERGY EQUITY SECURITIES AND USE OF PROCEEDS Purchases of DTE Energy Equity Securities by the Issuer and Affiliated Purchasers The following table provides information about DTE Energy's purchases of equity securities that are registered by DTE Energy pursuant to Section 12 of the Exchange Act of 1934 for the quarter ended December 31, 2023: Number of Shares Purchased (a) Average Price Paid per Share (a) Number of Shares Purchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs 10/01/2023 — 10/31/2023 1,125 $ 101.71 — — — 11/01/2023 — 11/30/2023 851 $ 109.23 — — — 12/01/2023 — 12/31/2023 759 $ 113.15 — — — Total 2,735 — _______________________________________ (a) Primarily represents shares of DTE Energy common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the market price at the vesting date. 27 Table of Contents COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN Total Return to DTE Energy Shareholders (Includes reinvestment of dividends) Annual Return Percentage Year Ended December 31, Company/Index 2019 2020 2021 2022 2023 DTE Energy Company 21.36 (2.90) 19.42 1.27 (2.81) S&P 500 Index 31.48 18.39 28.68 (18.13) 26.26 S&P 500 Multi-Utilities Index 24.36 (5.87) 14.17 0.62 (5.82) Indexed Returns Year Ended December 31, Base Period Company/Index 2018 2019 2020 2021 2022 2023 DTE Energy Company 100.00 121.36 117.84 140.72 142.50 138.49 S&P 500 Index 100.00 131.48 155.65 200.29 163.98 207.04 S&P 500 Multi-Utilities Index 100.00 124.36 117.06 133.64 134.46 126.63
These shares were held by a total of 43,603 shareholders of record. All of the 138,632,324 issued and outstanding shares of DTE Electric common stock, par value $10 per share, are indirectly-owned by DTE Energy, and constitute 100% of the voting securities of DTE Electric. Therefore, no market exists for DTE Electric's common stock.
These shares were held by a total of 41,918 shareholders of record. All of the 138,632,324 issued and outstanding shares of DTE Electric common stock, par value $10 per share, are indirectly-owned by DTE Energy, and constitute 100% of the voting securities of DTE Electric. Therefore, no market exists for DTE Electric's common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities DTE Energy common stock is listed under the ticker symbol "DTE" on the New York Stock Exchange, which is the principal market for such stock. At December 31, 2022, there were 205,632,393 shares of DTE Energy common stock outstanding.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities DTE Energy common stock is listed under the ticker symbol "DTE" on the New York Stock Exchange, which is the principal market for such stock. At December 31, 2023, there were 206,357,070 shares of DTE Energy common stock outstanding.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

120 edited+27 added−33 removed89 unchanged
Biggest changeThe changes were due to the following: 2022 (In millions) Closure of the REF business $ (766) Termination of a contract in the Steel business in 2021 (39) Higher sales in the Renewables business 9 New contract in the Renewables business 18 Higher prices partially offset by a terminated contract in the On-site business 27 Higher demand and prices in the Steel business 117 $ (634) 2021 (In millions) Higher production partially offset by the sale of membership interests in the REF business $ 175 Higher demand partially offset by lower prices in the Steel business 104 New projects in the Renewables business 42 Recognition of revenues from termination of a contract in the Steel business 17 Higher volumes partially offset by a terminated contract in the On-site business 15 Closed projects in the Renewables business (7) Site closures in the REF business (88) $ 258 36 Table of Contents Non-utility Margin increased $21 million in 2022 and $73 million in 2021.
Biggest changeThe changes were due to the following: 2023 (In millions) Lower demand and prices in the On-site business $ (42) Sale of project in the On-site business (29) Lower sales in the Renewables business (3) Higher demand and prices in the Steel business 36 Other (1) $ (39) 2022 (In millions) Closure of the REF business $ (766) Termination of a contract in the Steel business in 2021 (39) Higher sales in the Renewables business 9 New contract in the Renewables business 18 Higher prices partially offset by a terminated contract in the On-site business 27 Higher demand and prices in the Steel business 117 $ (634) 37 Table of Contents Fuel, purchased power, and gas — non-utility expense decreased $10 million in 2023 and $655 million in 2022.
DTE Energy also aims to help DTE Gas customers reduce their emissions by 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen and carbon capture and sequestration, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas.
DTE Energy also aims to help DTE Gas customers reduce their emissions by approximately 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen and carbon capture and sequestration, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas.
The mortality assumptions used at December 31, 2022 are the PRI-2012 mortality table projected to 2018 using Scale MP-2019, and projected forward from 2018 using Scale MP-2021 with generational projection. The base mortality tables vary by type of plan, employee's union status and employment status, with additional adjustments to reflect the actual experience and credibility of each population.
The mortality assumptions used at December 31, 2023 are the PRI-2012 mortality table projected to 2018 using Scale MP-2019, and projected forward from 2018 using Scale MP-2021 with generational projection. The base mortality tables vary by type of plan, employee's union status and employment status, with additional adjustments to reflect the actual experience and credibility of each population.
Repayment of the debt is expected to be made through internally generated funds and the issuance of short-term and/or long-term debt. DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $0.8 billion in 2023.
Repayment of the debt is expected to be made through internally generated funds and the issuance of short-term and/or long-term debt. DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $0.8 billion in 2024.
DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects. At the discretion of management and depending upon economic and financial market conditions, DTE Energy expects to issue up to $100 million of equity in 2023.
DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects. At the discretion of management and depending upon economic and financial market conditions, DTE Energy expects to issue up to $100 million of equity in 2024.
DTE Energy believes these rates are reasonable assumptions for the long-term rates of return on the plans' assets for 2023 given their respective asset allocations and DTE Energy's capital market expectations. DTE Energy will continue to evaluate the actuarial assumptions, including its expected rate of return, at least annually.
DTE Energy believes these rates are reasonable assumptions for the long-term rates of return on the plans' assets for 2024 given their respective asset allocations and DTE Energy's capital market expectations. DTE Energy will continue to evaluate the actuarial assumptions, including its expected rate of return, at least annually.
If issued, DTE Energy anticipates these discretionary equity issuances would be made through contributions to the dividend reinvestment plan and/or employee benefit plans. Over the long-term, DTE Energy does not have any equity commitments and will continue to evaluate equity needs on an annual basis.
DTE Energy anticipates these discretionary equity issuances would be made through contributions to the dividend reinvestment plan and/or employee benefit plans. Over the long-term, DTE Energy does not have any equity commitments and will continue to evaluate equity needs on an annual basis.
The Registrants also assess their ability to utilize tax attributes, including those in the form of carry-forwards, for which the benefits have already been reflected in the Consolidated Financial Statements. The Registrants believe the resulting tax reserve balances as of December 31, 2022 and 2021 are appropriate.
The Registrants also assess their ability to utilize tax attributes, including those in the form of carry-forwards, for which the benefits have already been reflected in the Consolidated Financial Statements. The Registrants believe the resulting tax reserve balances as of December 31, 2023 and 2022 are appropriate.
Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31, 2022 and 2021. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.
Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31, 2023 and 2022. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.
DTE Energy does not expect a material amount of contributions to its qualified pension plans over the next five years. DTE Energy did not make other postretirement benefit plan contributions in 2022 or 2021 and does not anticipate making any contributions to the other postretirement plans in 2023 or over the next five years.
DTE Energy does not expect a material amount of contributions to its qualified pension plans over the next five years. DTE Energy did not make other postretirement benefit plan contributions in 2023 or 2022 and does not anticipate making any contributions to the other postretirement plans in 2024 or over the next five years.
See Note 10 to the Consolidated Financial Statements, "Income Taxes." NEW ACCOUNTING PRONOUNCEMENTS See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." 47 Table of Contents FAIR VALUE Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities.
See Note 10 to the Consolidated Financial Statements, "Income Taxes." NEW ACCOUNTING PRONOUNCEMENTS See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." 48 Table of Contents FAIR VALUE Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities.
Over the long-term, DTE Energy is also monitoring the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, hydrogen, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability. 28 Table of Contents For the gas utility, DTE Energy aims to cut carbon emissions across the entire value chain.
Over the long-term, DTE Energy is also monitoring the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, hydrogen, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability. For the gas utility, DTE Energy aims to cut carbon emissions across the entire value chain.
Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy requirements. Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth.
Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy goals. Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth.
Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage expects enhanced growth opportunities in decarbonization as a result of the Inflation Reduction Act enacted in August 2022, including tax credits for renewable natural gas and carbon capture projects.
Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage expects enhanced growth opportunities in decarbonization as a result of the Inflation Reduction Act, including tax credits for renewable natural gas and carbon capture projects.
DTE Energy plans to end its use of coal-fired power plants in 2035 and is committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations.
DTE Energy plans to end its use of coal-fired power plants in 2032 and is committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations.
DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring the impact of rising interest rates on the cost of borrowing. Uses of Cash DTE Energy has $1.1 billion in long-term debt, including finance leases, maturing in the next twelve months.
DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring the impact of rising interest rates on the cost of borrowing. Uses of Cash DTE Energy has $2.1 billion in long-term debt, including securitization bonds and finance leases, maturing in the next twelve months.
Also refer to the "Capital Investments" section above for additional information on DTE Energy's capital strategy and estimated spend over the next five years. 42 Table of Contents Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements: Note Title 1 Organization and Basis of Presentation 9 Regulatory Matters 10 Income Taxes 13 Financial and Other Derivative Instruments 14 Long-Term Debt 16 Short-Term Credit Arrangements and Borrowings 18 Commitments and Contingencies 20 Retirement Benefits and Trusteed Assets 21 Stock-Based Compensation Liquidity DTE Energy has approximately $2.1 billion of available liquidity at December 31, 2022, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements and term loans.
Also refer to the "Capital Investments" section above for additional information on DTE Energy's capital strategy and estimated spend over the next five years. 43 Table of Contents Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements: Note Title 1 Organization and Basis of Presentation 8 Asset Retirement Obligations 9 Regulatory Matters 10 Income Taxes 13 Financial and Other Derivative Instruments 14 Long-Term Debt 16 Short-Term Credit Arrangements and Borrowings 18 Commitments and Contingencies 20 Retirement Benefits and Trusteed Assets 21 Stock-Based Compensation Liquidity DTE Energy has approximately $1.8 billion of available liquidity at December 31, 2023, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.
See also the "Fair Value" section herein and Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. CORPORATE AND OTHER Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including funds supporting regional development and economic growth.
See also the "Fair Value" section herein and Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. 40 Table of Contents CORPORATE AND OTHER Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including funds supporting regional development and economic growth.
As of December 31, 2022, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $571 million.
As of December 31, 2023, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $463 million.
The change in 2022 was primarily due to an asset impairment of $27 million recorded in the Steel business in 2021 for the anticipated closure of a pulverized coal facility, as well as a $5 million gain recorded in the Renewables business in 2022 related to lower future contingent obligations.
The change in 2022 was primarily due to an asset impairment of $27 million recorded in the Steel business in 2021 for the anticipated closure of a pulverized coal facility, as well as the $5 million gain recorded in the Renewables business in 2022 related to contingent consideration.
The discount rate determined on this basis was 5.19% for both the pension and other postretirement plans at December 31, 2022 compared to 2.91% for both the pension and other postretirement plans at December 31, 2021. DTE Energy periodically changes its mortality assumptions to reflect any updated projection scales published by the Society of Actuaries.
The discount rate determined on this basis was 5.00% for both the pension and other postretirement plans at December 31, 2023 compared to 5.19% for both the pension and other postretirement plans at December 31, 2022. DTE Energy periodically changes its mortality assumptions to reflect any updated projection scales published by the Society of Actuaries.
The following table summarizes DTE Energy's financial results: Years Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Net Income Attributable to DTE Energy Company — Continuing operations $ 1,083 $ 796 $ 1,054 Diluted Earnings per Common Share — Continuing operations $ 5.52 $ 4.10 $ 5.45 The increase in 2022 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Electric, Gas, and Corporate and Other segments, partially offset by lower earnings in the DTE Vantage and Energy Trading segments.
The following table summarizes DTE Energy's financial results: Years Ended December 31, 2023 2022 2021 (In millions, except per share amounts) Net Income Attributable to DTE Energy Company — Continuing operations $ 1,397 $ 1,083 $ 796 Diluted Earnings per Common Share — Continuing operations $ 6.76 $ 5.52 $ 4.10 The increase in 2023 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Energy Trading, DTE Vantage, and Gas segments, partially offset by lower earnings in the Electric and Corporate and Other segments.
The reduction was also partially due to changes in Net income, which decreased year-over-year if adjusted for the Loss on extinguishment of debt in 2021, primarily driven by the separation of DT Midstream in July 2021 and the closure of the REF business at DTE Vantage in 2022. Net cash from operations decreased $630 million in 2021.
The reduction was also partially due to changes in Net income, which decreased year-over-year if adjusted for the Loss on extinguishment of debt in 2021, primarily driven by the separation of DT Midstream in July 2021 and the closure of the REF business at DTE Vantage in 2022.
DTE Energy expects that cash from operations in 2023 will be approximately $3.2 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and energy waste reduction expenditures, and expenditures for non-utility businesses of approximately $4.2 billion in 2023.
DTE Energy expects that cash from operations in 2024 will be approximately $3.3 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and energy waste reduction expenditures, and expenditures for non-utility businesses of approximately $4.7 billion in 2024.
For certain reporting units, the fair values were calculated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries.
For all reporting units except Energy Trading, the fair values were calculated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries.
Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows. 2022 2021 2020 (In millions) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period $ 35 $ 516 $ 93 Net cash from operating activities 1,977 3,067 3,697 Net cash used for investing activities (3,431) (3,863) (4,070) Net cash from financing activities 1,462 315 796 Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 8 (481) 423 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 43 $ 35 $ 516 Cash from Operating Activities A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.
Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows. 2023 2022 2021 (In millions) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period $ 43 $ 35 $ 516 Net cash from operating activities 3,220 1,977 3,067 Net cash used for investing activities (4,095) (3,431) (3,863) Net cash from financing activities 883 1,462 315 Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 8 8 (481) Cash, Cash Equivalents, and Restricted Cash at End of Period $ 51 $ 43 $ 35 Cash from Operating Activities A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.
As of December 31, 2022, DTE Energy had $895 million of cumulative losses related to investment performance in prior years that were not yet recognized in the calculation of the MRV of pension assets.
As of December 31, 2023, DTE Energy had $478 million of cumulative losses related to investment performance in prior years that were not yet recognized in the calculation of the MRV of pension assets.
Because of market volatility, DTE Energy periodically reviews the asset allocation and rebalances the portfolio when considered appropriate. DTE Energy is increasing its long-term rate of return assumption for the pension plans to 7.60% and increasing the other postretirement plans to 7.20% for 2023.
Because of market volatility, DTE Energy periodically reviews the asset allocation and rebalances the portfolio when considered appropriate. DTE Energy is increasing its long-term rate of return assumption for the pension plans to 8.00% and increasing the other postretirement plans to 7.60% for 2024.
Future actual pension and other postretirement benefit costs or credits will depend on future investment performance, changes in future discount rates, and various other factors related to plan design. 46 Table of Contents Lowering the expected long-term rate of return on the plan assets by one percentage point would have increased the 2022 pension costs by approximately $51 million.
Future actual pension and other postretirement benefit costs or credits will depend on future investment performance, changes in future discount rates, and various other factors related to plan design. 47 Table of Contents Lowering the expected long-term rate of return on the plan assets by one percentage point would have decreased the 2023 pension credit by approximately $46 million.
Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, uncertainty of legislative or regulatory actions regarding climate change, and effects of energy waste reduction programs.
Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, uncertainty of legislative or regulatory actions regarding climate change, and effects of energy waste reduction programs. GAS The Gas segment consists principally of DTE Gas.
The health care trend rates for DTE Energy assume 6.75% for pre-65 participants and 7.25% for post-65 participants for 2023, trending down to 4.50% for both pre-65 and post-65 participants in 2035.
The health care trend rates for DTE Energy assume 7.75% for pre-65 participants and 8.25% for post-65 participants for 2024, trending down to 4.50% for both pre-65 and post-65 participants in 2035.
The increase in 2022 was primarily due to higher gas operations expense of $17 million, higher corporate support costs of $10 million, and higher EWR expense of $7 million, partially offset by lower benefits and other compensation expense of $4 million.
The increase in 2022 was primarily due to higher gas operations expense of $17 million, higher corporate support costs of $10 million, and higher EWR expense of $7 million, partially offset by lower benefits and other compensation expense of $4 million. Depreciation and amortization expense increased $17 million in 2023 and $15 million in 2022.
DTE Energy's 2023 expected long-term rate of return on pension plan assets is based on an asset allocation assumption utilizing active and passive investment management of 30% in equity markets, 48% in fixed income markets, including long duration bonds, and 22% invested in other assets.
DTE Energy's 2024 expected long-term rate of return on pension plan assets is based on an asset allocation assumption utilizing active and passive investment management of 25% in equity markets, 48% in fixed income markets, including long duration bonds, and 27% invested in other assets.
DTE Energy's 2023 expected long-term rate of return on other postretirement plan assets is based on an asset allocation assumption utilizing active and passive investment management of 10% in equity markets, 61% in fixed income markets - including long duration bonds, and 29% invested in other assets.
DTE Energy's 2024 expected long-term rate of return on other postretirement plan assets is based on an asset allocation assumption utilizing active and passive investment management of 9% in equity markets, 61% in fixed income markets - including long duration bonds, and 30% invested in other assets.
Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2022 other postretirement credit by approximately $13 million. The value of the qualified pension and other postretirement benefit plan assets was $5.5 billion at December 31, 2022 and $7.5 billion at December 31, 2021.
Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2023 other postretirement credit by approximately $9 million. The value of the qualified pension and other postretirement benefit plan assets was $5.6 billion at December 31, 2023 and $5.5 billion at December 31, 2022.
For the pension plans, DTE Energy uses a calculated value when determining the MRV of the pension plan assets and recognizes changes in fair value over a three-year period. Accordingly, the future value of assets will be impacted as previously deferred gains or losses are recognized. Unfavorable asset performance in 2022 resulted in unrecognized net losses.
For the pension plans, DTE Energy uses a calculated value when determining the MRV of the pension plan assets and recognizes changes in fair value over a three-year period. Accordingly, the future value of assets will be impacted as previously deferred gains or losses are recognized.
The increase in 2022 was primarily due to higher EWR expense of $29 million and higher distribution operations expense of $7 million, partially offset by lower benefits and other compensation expense of $17 million and lower legal and environmental expense of $12 million.
The increase in 2022 was primarily due to higher EWR expense of $29 million and higher distribution operations expense of $7 million, partially offset by lower benefits and other compensation expense of $17 million and lower legal and environmental expense of $12 million. Depreciation and amortization expense increased $122 million in 2023 and $96 million in 2022.
EXECUTIVE OVERVIEW DTE Energy is a diversified energy company with 2022 Operating Revenues of approximately $19.2 billion and Total Assets of approximately $42.7 billion. DTE Energy is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan.
EXECUTIVE OVERVIEW DTE Energy is a diversified energy company with 2023 Operating Revenues of approximately $12.7 billion and Total Assets of approximately $44.8 billion. DTE Energy is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan.
DTE Electric's capital investments over the 2023-2027 period are estimated at $18 billion, comprised of $9 billion for distribution infrastructure, $4 billion for base infrastructure, and $5 billion for cleaner generation including renewables. DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St.
DTE Electric's capital investments over the 2024-2028 period are estimated at $20 billion, comprised of $9 billion for distribution infrastructure, $4 billion for base infrastructure, and $7 billion for cleaner generation including renewables. DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St.
Pension and other postretirement benefit costs attributed to the segments are included with labor costs and ultimately allocated to projects within the segments, some of which are capitalized. 45 Table of Contents DTE Energy had pension costs of $123 million in 2022, $139 million in 2021, and $148 million in 2020.
Pension and other postretirement benefit costs attributed to the segments are included with labor costs and ultimately allocated to projects within the segments, some of which are capitalized. 46 Table of Contents DTE Energy had pension credits of $69 million in 2023 and pension costs of $123 million and $139 million in 2022 and 2021, respectively.
Segment information, described below, includes intercompany revenues and expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements. 2022 2021 2020 (In millions) Net Income (Loss) Attributable to DTE Energy by Segment Electric $ 956 $ 864 $ 777 Gas 272 214 186 DTE Vantage 92 168 134 Energy Trading (92) (83) 36 Corporate and Other (145) (367) (79) Income From Continuing Operations 1,083 796 1,054 Discontinued Operations — 111 314 Net Income Attributable to DTE Energy Company $ 1,083 $ 907 $ 1,368 31 Table of Contents ELECTRIC The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction I(2)(a) of Form 10-K for wholly-owned subsidiaries.
Segment information, described below, includes intercompany revenues, expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements. 2023 2022 2021 (In millions) Net Income (Loss) Attributable to DTE Energy by Segment Electric $ 772 $ 956 $ 864 Gas 294 272 214 DTE Vantage 153 92 168 Energy Trading 336 (92) (83) Corporate and Other (158) (145) (367) Income From Continuing Operations 1,397 1,083 796 Discontinued Operations — — 111 Net Income Attributable to DTE Energy Company $ 1,397 $ 1,083 $ 907 ELECTRIC The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction I(2)(a) of Form 10-K for wholly-owned subsidiaries.
Revenues associated with certain mechanisms and surcharges are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.
Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.
The decreases in both periods were primarily due to higher amortization of the TCJA regulatory liability and higher production tax credits, partially offset by higher earnings. Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity.
The decrease in 2022 was primarily due to higher amortization of the TCJA regulatory liability and higher production tax credits, partially offset by higher earnings. 34 Table of Contents Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity.
Revenues associated with certain mechanisms and surcharges are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.
Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.
DTE Energy did not make contributions to its qualified pension plans in 2022 or 2021, and does not anticipate making any such contributions in 2023. DTE Gas transferred $50 million of qualified pension plan funds to DTE Electric in 2022 in exchange for cash consideration, and anticipates transferring up to $50 million again in 2023.
DTE Energy did not make contributions to its qualified pension plans in 2023 or 2022, and does not anticipate making any material contributions in 2024. DTE Gas transferred $50 million of qualified pension plan funds to DTE Electric in 2023 in exchange for cash consideration.
The decrease in 2021 was primarily due to higher amortization of the TCJA regulatory liability, partially offset by higher earnings. Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity.
The increase in 2023 was primarily due to higher earnings. The increase in 2022 was primarily due to higher earnings and lower amortization of the TCJA regulatory liability. Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity.
Lowering the discount rate and the salary increase assumptions by one percentage point would have increased the 2022 pension costs by approximately $21 million. Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2022 other postretirement credit by approximately $20 million.
Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2023 pension credit by approximately $17 million. Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2023 other postretirement credit by approximately $16 million.
The decrease in 2022 was primarily due to the closure of the REF business. 37 Table of Contents Outlook — In December 2022, DTE Vantage entered into a series of agreements with a large industrial customer to design, construct, own, and operate certain energy infrastructure assets at the customer's planned electric vehicle and battery manufacturing plant in Tennessee.
Outlook — In December 2022, DTE Vantage entered into a series of agreements with a large industrial customer to design, construct, own, and operate certain energy infrastructure assets at the customer's planned electric vehicle and battery manufacturing plant in Tennessee.
In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings. Net cash used for investing activities decreased $432 million in 2022 due primarily to decreases in utility plant and equipment expenditures and non-utility plant and equipment expenditures.
In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings. Net cash used for investing activities increased $664 million in 2023 due primarily to increases in utility plant and equipment expenditures and cash used related to Notes receivable.
For further discussion of the fair value hierarchy, see Note 12 to the Consolidated Financial Statements, "Fair Value." The following table provides details on changes in DTE Energy's MTM net asset (or liability) position: Total (In millions) MTM at December 31, 2021 $ (159) Reclassified to realized upon settlement (48) Changes in fair value recorded to income (106) Amounts recorded to unrealized income (154) Changes in fair value recorded in Regulatory liabilities 21 Amounts recorded in other comprehensive income, pretax 3 Change in collateral 65 MTM at December 31, 2022 $ (224) The table below shows the maturity of DTE Energy's MTM positions.
For further discussion of the fair value hierarchy, see Note 12 to the Consolidated Financial Statements, "Fair Value." The following table provides details on changes in DTE Energy's MTM net asset (or liability) position: Total (In millions) MTM at December 31, 2022 $ (224) Reclassified to realized upon settlement (103) Changes in fair value recorded to income 383 Amounts recorded to unrealized income 280 Changes in fair value recorded in Regulatory liabilities 9 Amounts recorded in other comprehensive income, pretax (17) Change in collateral 49 MTM at December 31, 2023 $ 97 The table below shows the maturity of DTE Energy's MTM positions.
To the extent projected results or cash flows are revised downward, the reporting unit may be required to write down all or a portion of its goodwill, which would adversely impact DTE Energy's earnings.
To the extent projected results or cash flows are revised downward, the reporting unit may be required to write down all or a portion of its goodwill, which would adversely impact DTE Energy's earnings. DTE Energy performed its annual impairment test as of October 1, 2023.
The increase in 2022 was primarily due to a change in rabbi trust and other investment earnings (net loss of $10 million in 2022 compared to a net gain of $9 million in 2021) and higher net interest of $27 million, partially offset by lower non-operating retirement benefits expense of $37 million and a $4 million decrease in non-operational costs that ceased with the retirement of a power plant.
The increase in 2022 was primarily due to higher net interest expense of $27 million and an unfavorable change in investment earnings of $19 million, partially offset by lower non-operating retirement benefits expense of $37 million and a $4 million decrease in non-operational costs that ceased with the retirement of a power plant.
In 2022, the increase was primarily due to a $101 million increase from a higher depreciable base, partially offset by a decrease of $9 million associated with the TRM. In 2021, the increase was primarily due to a $64 million increase resulting from a higher depreciable base.
In 2023, the increase was primarily due to a $113 million increase from a higher depreciable base and an increase of $10 million associated with the TRM. In 2022, the increase was primarily due to a $101 million increase from a higher depreciable base, partially offset by a decrease of $9 million associated with the TRM.
DTE Electric filed a rate case with the MPSC on February 10, 2023 requesting an increase in base rates of $622 million based on a projected twelve-month period ending November 30, 2024, and in increase in return on equity from 9.9% to 10.25%.
DTE Gas filed a rate case with the MPSC on January 8, 2024 requesting an increase in base rates of $266 million based on a projected twelve-month period ending September 30, 2025, and an increase in return on equity from 9.9% to 10.25%.
Other postretirement benefit credits were $66 million in 2022, $59 million in 2021, and $49 million in 2020. Pension costs and other postretirement benefit credits for 2022 were calculated based upon several actuarial assumptions, including an expected long-term rate of return on plan assets of 6.80% for the pension plans and 6.40% for the other postretirement benefit plans.
Other postretirement benefit credits were $38 million in 2023, $66 million in 2022, and $59 million in 2021. Pension and other postretirement benefit credits for 2023 were calculated based upon several actuarial assumptions, including an expected long-term rate of return on plan assets of 7.60% for the pension plans and 7.20% for the other postretirement benefit plans.
The decrease was also due to lower earnings in the Energy Trading segment, partially offset by higher earnings in the Electric, Gas, and DTE Vantage segments. STRATEGY DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and attractive dividend.
The increase in 2022 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Electric, Gas, and Corporate and Other segments, partially offset by lower earnings in the DTE Vantage and Energy Trading segments. STRATEGY DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and attractive dividend.
The 2022 decrease was primarily due to $37 million associated with the closure of the REF business and $6 million of lower corporate overhead costs, partially offset by an $8 million increase due to a new contract in the Renewables business. The 2021 increase was primarily due to higher production and new projects, partially offset by closed projects.
The 2022 decrease was primarily due to $37 million associated with the closure of the REF business and $6 million of lower corporate overhead costs, partially offset by an $8 million increase due to a new contract in the Renewables business. Depreciation and amortization increased $1 million in 2023 and decreased $19 million in 2022.
Electric results and outlook are discussed below: 2022 2021 2020 (In millions) Operating Revenues — Utility operations $ 6,397 $ 5,809 $ 5,506 Fuel and purchased power — utility 1,978 1,531 1,386 Utility Margin 4,419 4,278 4,120 Operating Revenues — Non-utility operations 15 12 14 Operation and maintenance 1,564 1,556 1,489 Depreciation and amortization 1,218 1,122 1,057 Taxes other than income 339 321 297 Asset (gains) losses and impairments, net 8 1 41 Operating Income 1,305 1,290 1,250 Other (Income) and Deductions 324 322 365 Income Tax Expense 25 104 108 Net Income Attributable to DTE Energy Company $ 956 $ 864 $ 777 See DTE Electric's Consolidated Statements of Operations in Item 8 of this Report for a complete view of its results.
Electric results and outlook are discussed below: 2023 2022 2021 (In millions) Operating Revenues Utility operations $ 5,804 $ 6,397 $ 5,809 Non-utility operations 14 15 12 5,818 6,412 5,821 Operating Expenses Fuel and purchased power — utility 1,481 1,978 1,531 Operation and maintenance 1,417 1,564 1,556 Depreciation and amortization 1,340 1,218 1,122 Taxes other than income 339 339 321 Asset (gains) losses and impairments, net 27 8 1 4,604 5,107 4,531 Operating Income 1,214 1,305 1,290 Other (Income) and Deductions 364 324 322 Income Tax Expense 78 25 104 Net Income Attributable to DTE Energy Company $ 772 $ 956 $ 864 See DTE Electric's Consolidated Statements of Operations in Item 8 of this Report for a complete view of its results.
Clair facilities, including five units that were retired in the third quarter 2022, and has announced plans to retire its remaining six coal-fired generating units. DTE Electric plans to convert the two units at the Belle River facility from a base load coal plant to a natural gas peaking resource in 2025-2026.
Clair facilities and has announced plans to retire its remaining six coal-fired generating units. DTE Electric plans to convert the two units at the Belle River facility from a base load coal plant to a natural gas peaking resource in 2025-2026. The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032.
Specifically, DTE Energy invests in targeted markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced financing. Growth will be funded through internally generated cash flows and the issuance of debt and equity.
A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced financing. Growth will be funded through internally generated cash flows and the issuance of debt and equity.
If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized. A goodwill impairment loss is measured as the amount by which a reporting unit's carrying value exceeds fair value, not to exceed the carrying amount of goodwill.
If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized.
The increase in 2022 was primarily due to a change in investment earnings (loss of $6 million in 2022 compared to a gain of $3 million in 2021) and higher net interest expense of $7 million, partially offset by 2021 contributions to the DTE Energy Foundation and other not-for-profit organizations of $12 million.
The increase in 2022 was primarily due to an unfavorable change in investment earnings of $9 million and higher net interest expense of $7 million, partially offset by 2021 contributions to the DTE Energy Foundation and other not-for-profit organizations of $12 million. Income Tax Expense increased $5 million in 2023 and $50 million in 2022.
DTE Gas' capital investments over the 2023-2027 period are estimated at $3.6 billion, comprised of $2 billion for base infrastructure and $1.6 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects. DTE Electric and DTE Gas plan to seek regulatory approval for capital expenditures consistent with ratemaking treatment.
DTE Gas' capital investments over the 2024-2028 period are estimated at $3.7 billion, comprised of $2.1 billion for base infrastructure and $1.6 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects.
DTE Vantage results and outlook are discussed below: 2022 2021 2020 (In millions) Operating Revenues — Non-utility operations $ 848 $ 1,482 $ 1,224 Fuel, purchased power, and gas — non-utility 431 1,086 901 Non-utility Margin 417 396 323 Operation and maintenance 267 301 294 Depreciation and amortization 52 71 72 Taxes other than income 10 11 10 Asset (gains) losses and impairments, net (7) 28 (18) Operating Income (Loss) 95 (15) (35) Other (Income) and Deductions (15) (142) (120) Income Taxes Expense 27 37 26 Production Tax Credits (9) (68) (66) 18 (31) (40) Net Income 92 158 125 Less: Net Loss Attributable to Noncontrolling Interests — (10) (9) Net Income Attributable to DTE Energy Company $ 92 $ 168 $ 134 Operating Revenues — Non-utility operations decreased $634 million in 2022 and increased $258 million in 2021.
DTE Vantage results and outlook are discussed below: 2023 2022 2021 (In millions) Operating Revenues — Non-utility operations $ 809 $ 848 $ 1,482 Operating Expenses Fuel, purchased power, and gas — non-utility 421 431 1,086 Operation and maintenance 232 267 301 Depreciation and amortization 53 52 71 Taxes other than income 9 10 11 Asset (gains) losses and impairments, net (10) (7) 28 705 753 1,497 Operating Income (Loss) 104 95 (15) Other (Income) and Deductions (27) (15) (142) Income Taxes Expense 38 27 37 Tax Credits (60) (9) (68) (22) 18 (31) Net Income 153 92 158 Less: Net Loss Attributable to Noncontrolling Interests — — (10) Net Income Attributable to DTE Energy Company $ 153 $ 92 $ 168 Operating Revenues — Non-utility operations decreased $39 million in 2023 and $634 million in 2022.
DTE Vantage is also developing decarbonization opportunities relating to carbon capture and sequestration projects. ENERGY TRADING Energy Trading focuses on physical and financial power, natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions.
ENERGY TRADING Energy Trading focuses on physical and financial power, natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions.
DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, and benefit plan design changes.
DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, and benefit plan design changes. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability.
Gas results and outlook are discussed below: 2022 2021 2020 (In millions) Operating Revenues — Utility operations $ 1,924 $ 1,553 $ 1,414 Cost of gas — utility 632 422 356 Utility Margin 1,292 1,131 1,058 Operation and maintenance 552 521 496 Depreciation and amortization 192 177 157 Taxes other than income 101 93 84 Asset (gains) losses and impairments, net — 4 14 Operating Income 447 336 307 Other (Income) and Deductions 87 84 73 Income Tax Expense 88 38 48 Net Income Attributable to DTE Energy Company $ 272 $ 214 $ 186 Utility Margin increased $161 million in 2022 and $73 million in 2021.
Gas results and outlook are discussed below: 2023 2022 2021 (In millions) Operating Revenues — Utility operations $ 1,748 $ 1,924 $ 1,553 Operating Expenses Cost of gas — utility 469 632 422 Operation and maintenance 488 552 521 Depreciation and amortization 209 192 177 Taxes other than income 108 101 93 Asset (gains) losses and impairments, net — — 4 1,274 1,477 1,217 Operating Income 474 447 336 Other (Income) and Deductions 87 87 84 Income Tax Expense 93 88 38 Net Income Attributable to DTE Energy Company $ 294 $ 272 $ 214 Operating Revenues — Utility operations decreased $176 million in 2023 and increased $371 million in 2022.
The remaining decrease of $13 million in 2022 was primarily due to lower state income taxes, lower valuation allowances, and a gain on sale of assets, partially offset by equity investment losses and one-time benefits expenses. 39 Table of Contents The 2021 net loss of $367 million represents an increase of $288 million from the 2020 net loss of $79 million.
The remaining decrease of $13 million in 2022 was primarily due to lower state income taxes, lower valuation allowances, and a gain on sale of assets, partially offset by equity investment losses and benefits expenses.
Taxes other than income increased $18 million in 2022 and $24 million in 2021. In 2022, the increase was primarily due to higher property taxes of $16 million as a result of a higher tax base.
Taxes other than income had no change in 2023 and increased $18 million in 2022. In 2022, the increase was primarily due to higher property taxes of $16 million as a result of a higher tax base. Asset (gains) losses and impairments, net increased $19 million in 2023 and $7 million in 2022.
Other (Income) and Deductions decreased $2 million in 2022 and increased $20 million in 2021. The decrease in 2022 was primarily due to $10 million of lower contributions to not-for-profit organizations, partially offset by higher net interest expense of $7 million. The increase in 2021 was primarily due to contributions to the DTE Energy Foundation and other not-for-profit organizations.
The decrease in 2023 was primarily due to $10 million of lower contributions to not-for-profit organizations and lower net interest expense of $3 million. The decrease in 2022 was primarily due to $10 million of lower contributions to not-for-profit organizations, partially offset by higher net interest expense of $7 million.
To achieve the targeted carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives.
DTE Energy is currently assessing the impacts of this legislation and will include updates in its next Integrated Resource Plan to comply with the new requirements. 29 Table of Contents To achieve carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives.
DTE Energy estimates the reporting unit's fair value using standard valuation techniques, including techniques which use estimates of projected future results and cash flows to be generated by the reporting unit.
A goodwill impairment loss is measured as the amount by which a reporting unit's carrying value exceeds fair value, not to exceed the carrying amount of goodwill. 45 Table of Contents DTE Energy estimates the reporting unit's fair value using standard valuation techniques, including techniques which use estimates of projected future results and cash flows to be generated by the reporting unit.
Energy Trading results and outlook are discussed below: 2022 2021 2020 (In millions) Operating Revenues — Non-utility operations $ 10,308 $ 6,831 $ 3,863 Purchased power and gas — non-utility 10,331 6,825 3,725 Non-utility Margin (23) 6 138 Operation and maintenance 64 81 77 Depreciation and amortization 5 6 5 Taxes other than income 7 5 4 Asset (gains) losses and impairments, net 2 — — Operating Income (Loss) (101) (86) 52 Other (Income) and Deductions 22 24 4 Income Tax Expense (Benefit) (31) (27) 12 Net Income (Loss) Attributable to DTE Energy Company $ (92) $ (83) $ 36 Operating Revenues — Non-utility operations and Purchased power and gas — non-utility increased in both periods primarily due to significantly higher gas prices in the gas structured and gas transportation strategies.
Energy Trading results and outlook are discussed below: 2023 2022 2021 (In millions) Operating Revenues — Non-utility operations $ 4,612 $ 10,308 $ 6,831 Operating Expenses Purchased power, gas, and other — non-utility 4,068 10,331 6,825 Operation and maintenance 78 64 81 Depreciation and amortization 4 5 6 Taxes other than income 5 7 5 Asset (gains) losses and impairments, net — 2 — 4,155 10,409 6,917 Operating Income (Loss) 457 (101) (86) Other (Income) and Deductions 9 22 24 Income Tax Expense (Benefit) 112 (31) (27) Net Income (Loss) Attributable to DTE Energy Company $ 336 $ (92) $ (83) Operating Revenues — Non-utility operations decreased $5,696 million in 2023 and increased $3,477 million in 2022.
DTE Energy plans to reduce the carbon emissions of its electric utility operations by 32% by 2023, 65% in 2028, 85% in 2035, and 90% by 2040 from 2005 carbon emissions levels. These represent accelerated goals compared to the electric utility's prior targets to reduce carbon emissions by 50% by 2028 and 80% by 2040.
DTE Energy plans to reduce the carbon emissions of its electric utility operations by 65% in 2028, 85% in 2032, and 90% by 2040 from 2005 carbon emissions levels.
The Registrants' management believes that the areas described below require significant judgment in the application of accounting policy or in making estimates and assumptions in matters that are inherently uncertain and that may change in subsequent periods.
The Registrants' management believes that the areas described below require significant judgment in the application of accounting policy or in making estimates and assumptions in matters that are inherently uncertain and that may change in subsequent periods. Additional discussion of these accounting policies can be found in the Combined Notes to Consolidated Financial Statements in Item 8 of this Report.
Other (Income) and Deductions decreased $127 million in 2022 and increased $22 million in 2021. The 2022 decrease was primarily due to $143 million lower income associated with the closure of the REF business, partially offset by $14 million lower interest expense.
The 2022 decrease was primarily due to $143 million lower income associated with the closure of the REF business, partially offset by $14 million lower interest expense. Income Taxes — Expense increased $11 million in 2023 and decreased $10 million in 2022. The increase in 2023 was primarily due to a $6 million impact from higher pre-tax income.
These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts. (b) Amount includes $35 million of timing related losses related to gas strategies which will reverse in future periods as the underlying contracts settle.
These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts. Operating Income (Loss) increased $558 million in 2023, which includes a $429 million favorable change in timing-related gains and losses primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle.
DTE Electric and DTE Gas are required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of the Registrants' businesses.
Regulation A significant portion of the Registrants' businesses are subject to regulation. This results in differences in the application of generally accepted accounting principles between regulated and non-regulated businesses. DTE Electric and DTE Gas are required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses.
DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $1 billion to $1.5 billion from 2023-2027 for renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. 29 Table of Contents ENVIRONMENTAL MATTERS The Registrants are subject to extensive environmental regulations, including those addressing climate change.
DTE Electric and DTE Gas plan to seek regulatory approval for capital expenditures consistent with ratemaking treatment. 30 Table of Contents DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $1 billion to $1.5 billion from 2024-2028 for renewable energy and custom energy solutions, while expanding into carbon capture and sequestration.
DTE Energy targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating. Net cash from financing activities increased $1.1 billion in 2022.
DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating. Net cash from financing activities decreased $579 million in 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe hypothetical losses related to long-term debt would be realized only if DTE Energy transferred all of its fixed-rate long-term debt to other creditors. 50 Table of Contents The results of the sensitivity analyses: Assuming a 10% Increase in Prices/Rates Assuming a 10% Decrease in Prices/Rates As of December 31, As of December 31, Activity 2022 2021 2022 2021 Change in the Fair Value of (In millions) Gas contracts $ 16 $ 33 $ (16) $ (33) Commodity contracts Power contracts $ 4 $ 9 $ (4) $ (10) Commodity contracts Environmental contracts $ (5) $ (8) $ 5 $ 8 Commodity contracts Oil contracts $ 2 $ — $ (2) $ — Commodity contracts Interest rate risk — DTE Energy $ (650) $ (662) $ 699 $ 687 Long-term debt Interest rate risk — DTE Electric $ (419) $ (329) $ 458 $ 348 Long-term debt For further discussion of market risk, see Management's Discussion and Analysis in Item 7 of this Report and Note 13 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments." 51 Table of Contents
Biggest changeThe hypothetical losses related to long-term debt would be realized only if DTE Energy transferred all of its fixed-rate long-term debt to other creditors. 51 Table of Contents The results of the sensitivity analyses: Assuming a 10% Increase in Prices/Rates Assuming a 10% Decrease in Prices/Rates As of December 31, As of December 31, Activity 2023 2022 2023 2022 Change in the Fair Value of (In millions) Gas contracts $ 40 $ 16 $ (40) $ (16) Commodity contracts Power contracts $ 1 $ 4 $ (1) $ (4) Commodity contracts Environmental contracts $ (7) $ (5) $ 7 $ 5 Commodity contracts Oil contracts $ 1 $ 2 $ (1) $ (2) Commodity contracts Interest rate risk — DTE Energy $ (733) $ (650) $ 786 $ 699 Long-term debt Interest rate risk — DTE Electric $ (492) $ (419) $ 535 $ 458 Long-term debt For further discussion of market risk, see Management's Discussion and Analysis in Item 7 of this Report and Note 13 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments." 52 Table of Contents
(c) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 17% of the total gross credit exposure.
(c) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 11% of the total gross credit exposure.
The sensitivity analyses involved increasing and decreasing forward prices and rates at December 31, 2022 and 2021 by a hypothetical 10% and calculating the resulting change in the fair values.
The sensitivity analyses involved increasing and decreasing forward prices and rates at December 31, 2023 and 2022 by a hypothetical 10% and calculating the resulting change in the fair values.
The Registrants closely monitor the credit ratings of these customers and, when deemed necessary and permitted under the tariffs, request collateral or guarantees from such customers to secure their obligations. Interest Rate Risk DTE Energy is subject to interest rate risk in connection with the issuance of debt.
Other The Registrants engage in business with customers that are non-investment grade. The Registrants closely monitor the credit ratings of these customers and, when deemed necessary and permitted under the tariffs, request collateral or guarantees from such customers to secure their obligations. Interest Rate Risk DTE Energy is subject to interest rate risk in connection with the issuance of debt.
(d) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s and are considered non-investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 1% of the total gross credit exposure. Other The Registrants engage in business with customers that are non-investment grade.
(d) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s and are considered non-investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented less than 1% of the total gross credit exposure.
(Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented 13% of the total gross credit exposure. (b) This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented 2% of the total gross credit exposure.
(Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented 25% of the total gross credit exposure. (b) This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented less than 1% of the total gross credit exposure.
As of December 31, 2022, DTE Energy had floating rate debt of $2.0 billion and a floating rate debt-to-total debt ratio of 10.4%. Foreign Currency Exchange Risk DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts.
As of December 31, 2023, DTE Energy had floating rate debt of $1.3 billion and a floating rate debt-to-total debt ratio of 6.4%. Foreign Currency Exchange Risk DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts.
DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties. 49 Table of Contents The following table displays the credit quality of DTE Energy's trading counterparties as of December 31, 2022: Credit Exposure Before Cash Collateral Cash Collateral Net Credit Exposure (In millions) Investment Grade (a) A- and Greater $ 525 $ — $ 525 BBB+ and BBB 397 (87) 310 BBB- 92 — 92 Total Investment Grade 1,014 (87) 927 Non-investment grade (b) 39 (6) 33 Internally Rated — investment grade (c) 749 (5) 744 Internally Rated — non-investment grade (d) 35 — 35 Total $ 1,837 $ (98) $ 1,739 _______________________________________ (a) This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc.
DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties. 50 Table of Contents The following table displays the credit quality of DTE Energy's trading counterparties as of December 31, 2023: Credit Exposure Before Cash Collateral Cash Collateral Net Credit Exposure (In millions) Investment Grade (a) A- and Greater $ 469 $ — $ 469 BBB+ and BBB 418 (3) 415 BBB- 13 — 13 Total Investment Grade 900 (3) 897 Non-investment grade (b) 9 — 9 Internally Rated — investment grade (c) 427 — 427 Internally Rated — non-investment grade (d) 13 — 13 Total $ 1,349 $ (3) $ 1,346 _______________________________________ (a) This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc.

Other DTW 10-K year-over-year comparisons