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What changed in DTE ENERGY CO's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of DTE ENERGY CO's 2023 and 2024 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 2024 report.

+174 added−186 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-08)

Top changes in DTE ENERGY CO's 2024 10-K

174 paragraphs added · 186 removed · 157 edited across 7 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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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.
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.
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.
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 Clean Energy Standard, 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.
The Registrants are subject to existing Michigan, and potential future, federal legislation and regulation requiring them to secure sources of renewable energy. The Registrants have complied with the existing federal and state legislation, but do not know what requirements may be added by federal or state legislation in the future.
The Registrants are subject to existing Michigan, and potential future, federal legislation and regulation requiring them to secure sources of clean and renewable energy. The Registrants have complied with the existing federal and state legislation, but do not know what requirements may be added by federal or state legislation in the future.
The Registrants' long-term revolving credit facilities do not expire until 2027, but the Registrants regularly access capital markets to refinance existing debt or fund new projects at the Registrants' utilities and DTE Energy's non-utility businesses, and the Registrants cannot predict the pricing or demand for those future transactions. Emerging technologies may have a material adverse effect on the Registrants .
The Registrants' long-term revolving credit facilities do not expire until 2029, but the Registrants regularly access capital markets to refinance existing debt or fund new projects at the Registrants' utilities and DTE Energy's non-utility businesses, and the Registrants cannot predict the pricing or demand for those future transactions. Emerging technologies may have a material adverse effect on the Registrants .
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.
There are several bargaining units for DTE Energy's approximately 4,800 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.
In addition, the Registrants expect to comply with new Michigan legislation increasing the percentage of power required to be provided by renewable energy sources. The Registrants cannot predict the financial impact or costs associated with complying with potential future legislation and regulations.
In addition, the Registrants expect to comply with new Michigan legislation increasing the percentage of power required to be provided by clean energy resources and renewable energy sources. The Registrants cannot predict the financial impact or costs associated with complying with potential future legislation and regulations.
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.
There is also uncertainty in quantifying liabilities under environmental laws that impose joint and several liability on potentially responsible parties. 18 Table of Contents The Registrants may also incur liabilities as a result of potential future requirements to address climate change issues.
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.
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 outages at our power plants and other generating assets may be costly. Unforeseen maintenance may be required to safely produce electricity or comply with environmental regulations.
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.
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.
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.
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 regulations govern air emissions, water quality, wastewater discharge, and disposal of solid and hazardous waste.
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.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeGovernance DTE Energy has an enterprise risk management program to reduce overall risk, including risks related to cybersecurity, through comprehensive risk assessments and execution of corresponding mitigation plans. Risks are reported and managed through various internal committees, which meet regularly and report at least annually to the Board of Directors.
Biggest changeFor additional discussion of the risks related to cybersecurity threats and incidents, see Item 1A. "Risk Factors." Governance DTE Energy has an enterprise risk management program to reduce overall risk, including risks related to cybersecurity, through comprehensive risk assessments and execution of corresponding mitigation plans.
The IPS cybersecurity team is also led by two full-time directors with over 40 combined years of industry experience, including (1) the director of cybersecurity operations responsible for the CSDC, identity and access assurance, and cloud security and (2) the IPS director of cybersecurity governance, risk, and compliance who is also responsible for engagement and outreach to internal and external stakeholders.
The IPS cybersecurity team is also led by two full-time directors with over 40 combined years of industry experience, including (1) the director of cybersecurity operations responsible for the CSDC, identity and access assurance, and cloud security and (2) the IPS director of cybersecurity strategy, risk, and engagement who is also responsible for engagement and outreach to internal and external stakeholders.
The RMC also sets, reviews, and monitors risk limits for enterprise-level risk and other exposures • The Operational Risk and Resilience (ORR) Committee is chaired by the President and Chief Operating Officer and comprised of operational leaders in DTE Energy’s business units.
The RMC directs the development and maintenance of comprehensive risk management policies and procedures. The RMC also sets, reviews, and monitors risk limits for enterprise-level risk and other exposures • The Operational Risk and Resilience (ORR) Committee is chaired by the President and Chief Operating Officer and comprised of operational leaders in DTE Energy’s business units.
Access from a potentially compromised third-party is restricted until DTE Energy receives confirmation the compromise has been mitigated. As of December 31, 2023, cybersecurity risks have not materially affected the Registrants’ business strategy, results of operations, or financial condition.
Access from a potentially compromised third-party is restricted until DTE Energy receives confirmation the compromise has been mitigated. DTE Energy has experienced, and expects to continue to be subject to, cybersecurity threats and incidents. As of December 31, 2024, cybersecurity risks have not materially affected the Registrants’ business strategy, results of operations, or financial condition.
DTE Energy collaborates with its service providers to help determine whether their information security protocols are sufficient and monitors their compliance with DTE Energy security requirements; however, DTE Energy may not have the ability in all cases to effectively oversee the implementation of these control measures. 24 Table of Contents The CSDC monitors and responds to actual and potential compromises from third-party service providers.
If a service provider experiences a cyber incident, DTE Energy monitors their compliance with our security requirements; however, DTE Energy may not have the ability in all cases to effectively oversee the implementation of these control measures. 24 Table of Contents The CSDC monitors and responds to actual and potential compromises from third-party service providers.
Third-party service providers are also contractually required to notify DTE Energy promptly of cyber incidents that may affect any systems or data.
Third-party service providers are also contractually required to notify DTE Energy promptly of cyber incidents that may affect any systems or data. DTE Energy collaborates with its service providers to help determine whether their information security protocols are sufficient.
These committees include: • The Risk Management Committee (RMC) is chaired by the Chief Executive Officer and comprised of the Chief Financial Officer, Chief Legal Officer, General Auditor, and other senior officers. The RMC directs the development and maintenance of comprehensive risk management policies and procedures.
Risks are reported and managed through various internal committees, which meet regularly and report at least annually to the Board of Directors. These committees include: • The Risk Management Committee (RMC) is chaired by the Chief Executive Officer and comprised of the Chief Financial Officer, Chief Legal Officer, General Auditor, and other senior officers.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings For more information on legal proceedings and matters related to the Registrants, see Notes 9 and 18 to the Consolidated Financial Statements, "Regulatory Matters" and "Commitments and Contingencies," respectively. For environmental proceedings in which the government is a party, the Registrants include disclosures if any sanctions of $1 million or greater are expected. Item 4.
Biggest changeItem 3. Legal Proceedings For more information on legal proceedings and matters related to the Registrants, see Notes 8 and 17 to the Consolidated Financial Statements, "Regulatory Matters" and "Commitments and Contingencies," respectively. For environmental proceedings in which the government is a party, the Registrants include disclosures if any sanctions of $1 million or greater are expected. Item 4.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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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.
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 49 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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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
Biggest changeFor additional detail, see Note 20 to the Consolidated Financial Statements, "Stock-Based Compensation." See the following table for information as of December 31, 2024: 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 — $ — 2,074,209 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, 2024: 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 10/01/2024 — 10/31/2024 1,097 $ 124.68 — — — 11/01/2024 — 11/30/2024 3,371 $ 120.31 — — — 12/01/2024 — 12/31/2024 2,721 $ 121.57 — — — Total 7,189 — _______________________________________ (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 2020 2021 2022 2023 2024 DTE Energy Company (2.90) 19.42 1.27 (2.81) 13.47 S&P 500 Index 18.39 28.68 (18.13) 26.26 25.00 S&P 500 Multi-Utilities Index (5.87) 14.17 0.62 (5.82) 20.86 Indexed Returns Year Ended December 31, Base Period Company/Index 2019 2020 2021 2022 2023 2024 DTE Energy Company 100.00 97.10 115.95 117.42 114.11 129.49 S&P 500 Index 100.00 118.39 152.34 124.72 157.48 196.84 S&P 500 Multi-Utilities Index 100.00 94.13 107.46 108.12 101.83 123.06
For information on DTE Energy dividend restrictions, see Note 16 to the Consolidated Financial Statements, "Short-Term Credit Arrangements and Borrowings." All of DTE Energy's equity compensation plans that provide for the annual awarding of stock-based compensation have been approved by shareholders.
For information on DTE Energy dividend restrictions, see Note 15 to the Consolidated Financial Statements, "Short-Term Credit Arrangements and Borrowings." All of DTE Energy's equity compensation plans that provide for the annual awarding of stock-based compensation have been approved by shareholders.
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.
These shares were held by a total of 40,177 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, 2023, there were 206,357,070 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, 2024, there were 207,171,582 shares of DTE Energy common stock outstanding.

Item 7. Management's Discussion & Analysis

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

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Biggest changeThe change in both periods was due to the following: 2023 (In millions) Purchased power - lower market prices and lower purchase volumes due to lower demand $ (351) Coal - lower consumption due to coal plant retirements, partially offset by higher prices (82) Gas - lower prices, partially offset by higher consumption primarily due to Blue Water Energy Center (78) Nuclear fuel - higher amortization due to refueling outage in 2022 17 Other (3) $ (497) 2022 (In millions) Gas - higher consumption primarily due to Blue Water Energy Center and higher prices $ 231 Purchased power - higher prices and higher volumes 202 Coal - higher prices, partially offset by lower consumption due to coal plant retirements 10 Nuclear fuel - lower amortization due to refueling outage in 2022 (16) Other 20 $ 447 Operation and maintenance expense decreased $147 million in 2023 and increased $8 million in 2022.
Biggest changeThe change in both periods was due to the following: 2024 (In millions) Coal - higher consumption and higher prices $ 52 Higher transmission expenses 39 Purchased power - MISO refund in 2023 and higher volumes in 2024 primarily due to higher demand 34 Nuclear fuel - lower amortization due to refueling outage in 2024 (4) Other 3 $ 124 2023 (In millions) Purchased power - lower market prices and lower purchase volumes due to lower demand $ (351) Coal - lower consumption due to coal plant retirements, partially offset by higher prices (82) Gas - lower prices, partially offset by higher consumption primarily due to Blue Water Energy Center (78) Nuclear fuel - higher amortization due to refueling outage in 2022 17 Other (3) $ (497) Operation and maintenance expense increased $22 million in 2024 and decreased $147 million in 2023.
Business and Properties and Note 18 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of Environmental Matters. OUTLOOK The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.
Business and Properties and Note 17 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of Environmental Matters. OUTLOOK The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.
In estimating fair value for the income approach, DTE Energy used discounted rates ranging from 6.9% to 10.0%. Based on the weighting of the estimated fair value using an income and market approach, DTE Energy determined that the estimated fair value of each reporting unit substantially exceeded its carrying value, and no impairment existed.
In estimating fair value for the income approach, DTE Energy used discounted rates ranging from 6.5% to 9.0%. Based on the weighting of the estimated fair value using an income and market approach, DTE Energy determined that the estimated fair value of each reporting unit substantially exceeded its carrying value, and no impairment existed.
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.
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, 2024.
See Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and some environmental contracts which are subject to accrual accounting.
See Notes 11 and 12 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and some environmental contracts which are subject to accrual accounting.
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.
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, 2024 and 2023 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, 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.
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, 2024 and 2023. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.
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 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 segment and Corporate and Other. STRATEGY DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and attractive dividend.
Management selects comparable peers based on each peer’s primary business mix, operations, and market capitalization compared to the applicable reporting unit and calculates implied market multiples based on available projected earnings guidance and peer company market values as of the test date. DTE Energy performs an annual impairment test each October.
Management selects comparable peers based on each peer’s primary business mix, operations, and market capitalization compared to the applicable reporting unit and calculates implied market multiples based on available projected earnings guidance and peer company market values as of the test date. 45 Table of Contents DTE Energy performs an annual impairment test each October.
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.
See also the "Fair Value" section herein and Notes 11 and 12 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 investments supporting regional development and economic growth.
For cash obligations related to leases and future purchase commitments, refer to Note 17 and Note 18 to the Consolidated Financial Statements, "Leases." and "Commitments and Contingencies," respectively. Purchase commitments include capital expenditures that are contractually obligated.
For cash obligations related to leases and future purchase commitments, refer to Note 16 and Note 17 to the Consolidated Financial Statements, "Leases." and "Commitments and Contingencies," respectively. Purchase commitments include capital expenditures that are contractually obligated.
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.
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. 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.
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.
Over the long-term, DTE Energy is also monitoring and pursuing 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. 29 Table of Contents For the gas utility, DTE Energy aims to cut carbon emissions across the entire value chain.
The increase in 2023 was primarily due to higher compensation costs. The decrease in 2022 was primarily due to lower compensation costs. Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract.
The increase in 2024 and 2023 was primarily due to higher compensation costs. Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract.
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.
As of December 31, 2024, 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 $360 million.
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.
DTE Energy expects that cash from operations in 2025 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 $4.9 billion in 2025.
DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of wind storms and other weather events, coupled with increasing electric vehicle adoption, will drive a continued need for substantial grid investment over the long-term.
DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption and potential for data centers, will drive a continued need for substantial grid investment over the long-term.
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.
Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2024 pension credit by approximately $18 million. Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2024 other postretirement credit by approximately $16 million.
DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric will maintain a strong focus on customers by increasing reliability and satisfaction while keeping customer rate increases affordable.
DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric will maintain a strong focus on customers by increasing reliability and satisfaction while working to keep customer rate increases affordable.
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.
Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2024 other postretirement credit by approximately $7 million. The value of the qualified pension and other postretirement benefit plan assets was $5.3 billion at December 31, 2024 and $5.6 billion at December 31, 2023.
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.
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 increased $462 million in 2024.
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.
As of December 31, 2024, DTE Energy had $131 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.
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.
The mortality assumptions used at December 31, 2024 are the PRI-2012 mortality table projected 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.
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.
EXECUTIVE OVERVIEW DTE Energy is a diversified energy company with 2024 Operating Revenues of approximately $12.5 billion and Total Assets of approximately $48.8 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.
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.
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. Lowering the expected long-term rate of return on the plan assets by one percentage point would have decreased the 2024 pension credit by approximately $43 million.
Outlook — Corporate and Other will continue to support DTE Energy's goals to achieve long-term earnings growth by managing corporate costs such as interest and tax expense while making prudent investments.
Outlook — Corporate and Other will continue to support DTE Energy's goals to achieve long-term earnings growth by managing corporate costs such as interest and tax expense.
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.
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. 2024 2023 2022 (In millions) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period $ 51 $ 43 $ 35 Net cash from operating activities 3,643 3,220 1,977 Net cash used for investing activities (4,951) (4,095) (3,431) Net cash from financing activities 1,345 883 1,462 Net Increase in Cash, Cash Equivalents, and Restricted Cash 37 8 8 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 88 $ 51 $ 43 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.
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 2025 expected long-term rate of return on pension plan assets is based on an asset allocation assumption utilizing active and passive investment management of 15% in equity markets, 58% in fixed income markets - including long duration bonds, and 27% 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.
DTE Energy's 2025 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 7% in equity markets, 63% in fixed income markets - including long duration bonds, and 30% invested in other assets.
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 following table summarizes DTE Energy's financial results: Years Ended December 31, 2024 2023 2022 (In millions, except per share amounts) Net Income Attributable to DTE Energy Company $ 1,404 $ 1,397 $ 1,083 Diluted Earnings per Common Share $ 6.77 $ 6.76 $ 5.52 The increase in 2024 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Electric segment, partially offset by lower earnings in the Energy Trading, Gas, and DTE Vantage segments and Corporate and Other.
The change in sales in 2022 was primarily due to favorable weather. Intermediate transportation volumes fluctuate period to period based on available market opportunities. Cost of gas — utility expense decreased $163 million in 2023 and increased $210 million in 2022.
The change in sales in 2023 was primarily due to unfavorable weather. Intermediate transportation volumes fluctuate period to period based on available market opportunities. Cost of gas — utility expense increased $15 million in 2024 and decreased $163 million in 2023.
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.
Other postretirement benefit credits were $44 million in 2024, $38 million in 2023, and $66 million in 2022. Pension and other postretirement benefit credits for 2024 were calculated based upon several actuarial assumptions, including an expected long-term rate of return on plan assets of 8.00% for the pension plans and 7.60% for the other postretirement benefit plans.
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.
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. DTE Energy had pension credits of $18 million and $69 million in 2024 and 2023, respectively, and pension costs of $123 million in 2022.
Refer to Note 20 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information. 32 Table of Contents Operating Revenues decreased $594 million in 2023 and increased $591 million in 2022.
Refer to Note 19 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information. 32 Table of Contents Operating Revenues increased $475 million in 2024 and decreased $594 million in 2023.
The 2023 decrease was primarily due to lower operating costs in the Renewables business of $13 million and lower operating costs in the On-site business of $24 million, which was primarily driven by a decrease of $11 million due to the sale of a project.
The 2023 decrease was primarily due to lower operating costs in the Renewables business of $13 million and lower operating costs in the On-site business of $24 million, which was primarily driven by a decrease of $11 million due to the sale of a project. Depreciation and amortization increased $6 million in 2024 and $1 million in 2023.
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.
See Note 9 to the Consolidated Financial Statements, "Income Taxes." NEW ACCOUNTING PRONOUNCEMENTS See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." FAIR VALUE Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities.
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.
The increase in 2023 was primarily due to lower amortization of the TCJA regulatory liability, partially offset by lower 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.
The increase in both periods was primarily due to a higher depreciable base. Taxes other than income increased $7 million in 2023 and $8 million in 2022. The increase in both periods was primarily due to higher property taxes. Asset (gains) losses and impairments, net had no change in 2023 and decreased $4 million in 2022.
The increase in both periods was primarily due to a higher depreciable base. Taxes other than income increased $10 million in 2024 and $7 million in 2023. The increase in both periods was primarily due to higher property taxes. Asset (gains) losses and impairments, net increased $6 million in 2024 and had no change in 2023.
The increase in 2023 was primarily due to higher net interest expense of $48 million and higher non-operating retirement benefits expense of $26 million, partially offset by a favorable change in investment earnings of $19 million and higher AFUDC equity of $14 million.
The increase in 2023 was primarily due to higher net interest expense of $48 million and higher non-operating retirement benefits expense of $26 million, partially offset by a favorable change in investment earnings of $19 million and higher AFUDC equity of $14 million. Income Tax Expense (Benefit) changed $109 million in 2024 and increased $53 million in 2023.
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.
DTE Electric's capital investments over the 2025-2029 period are estimated at $24 billion, comprised of $10 billion for distribution infrastructure, $4 billion for base infrastructure, and $10 billion for cleaner generation including renewables. DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St.
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.
Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, uncertainty of legislative or regulatory actions regarding environmental compliance, and effects of energy waste reduction programs. GAS SEGMENT The Gas segment consists principally of DTE Gas.
The increase also includes a $19 million favorable change in timing-related losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled.
The decrease also includes a $107 million unfavorable change in timing-related gains and losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled.
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.
The increase in 2024 was primarily due to $22 million of higher contributions to not-for-profit organizations, partially offset by higher net interest income of $9 million. 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 was primarily due to the Issuance of common stock in 2022 and a decrease in Short-term borrowings, net, partially offset by an increase in Issuance of long-term debt, net of issuance costs. Net cash from financing activities increased $1.1 billion in 2022.
The decrease was primarily due to the Issuance of common stock in 2022 and a decrease in Short-term borrowings, net, partially offset by an increase in Issuance of long-term debt, net of issuance costs.
The decrease also includes a $66 million favorable change in timing-related gains and losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled. Other (Income) and Deductions decreased $13 million in 2023 and decreased $2 million in 2022.
The increase also includes a $19 million favorable change in timing-related losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled. Other (Income) and Deductions increased $13 million in 2024 and decreased $13 million in 2023.
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.
Energy Trading results and outlook are discussed below: 2024 2023 2022 (In millions) Operating Revenues — Non-utility operations $ 3,843 $ 4,612 $ 10,308 Operating Expenses Purchased power, gas, and other — non-utility 3,562 4,068 10,331 Operation and maintenance 83 78 64 Depreciation and amortization 5 4 5 Taxes other than income 4 5 7 Asset (gains) losses and impairments, net — — 2 3,654 4,155 10,409 Operating Income (Loss) 189 457 (101) Other (Income) and Deductions 22 9 22 Income Tax Expense (Benefit) 42 112 (31) Net Income (Loss) Attributable to DTE Energy Company $ 125 $ 336 $ (92) Operating Revenues — Non-utility operations decreased $769 million in 2024 and $5,696 million in 2023.
The change in working capital items in 2022 was primarily due to a decrease in cash related to Regulatory assets and liabilities, Accounts receivable, net, and Accounts payable, partially offset by increases related to Prepaid postretirement benefit costs, Accrued pension liability, and Other current and noncurrent assets and liabilities.
The change in working capital items in 2023 was primarily due to an increase in cash related to Accounts receivable, net and Regulatory assets and liabilities, partially offset by a decrease in cash related to Prepaid postretirement benefit costs, Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities.
DTE Energy estimates a total pension credit of approximately $20 million for 2024, compared to the credit of $69 million in 2023. The expected change is primarily related to the recognition of deferred investment losses. The 2024 other postretirement benefit credit is estimated at approximately $40 million, comparable to the credit of $38 million in 2023.
DTE Energy estimates a total pension cost of approximately $60 million for 2025, compared to the credit of $18 million in 2024. The expected change is primarily related to the recognition of deferred investment losses. The 2025 other postretirement benefit credit is estimated at approximately $40 million, comparable to the credit of $44 million in 2024.
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.
Segment information, described below, includes intercompany revenues, expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements. 2024 2023 2022 (In millions) Net Income (Loss) Attributable to DTE Energy Electric segment $ 1,072 $ 772 $ 956 Gas segment 257 294 272 DTE Vantage segment 135 153 92 Energy Trading segment 125 336 (92) Corporate and Other (185) (158) (145) Net Income Attributable to DTE Energy Company $ 1,404 $ 1,397 $ 1,083 ELECTRIC SEGMENT 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.
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.
Because of market volatility, DTE Energy periodically reviews the asset allocation and rebalances the portfolio when considered appropriate. DTE Energy is decreasing its long-term rate of return assumption for the pension plans to 7.80% and decreasing the other postretirement plans to 7.50% for 2025.
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.
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) decreased $268 million in 2024, which includes a $167 million unfavorable change in timing-related gains primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle.
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.
Electric results and outlook are discussed below: 2024 2023 2022 (In millions) Operating Revenues Utility operations $ 6,277 $ 5,804 $ 6,397 Non-utility operations 16 14 15 6,293 5,818 6,412 Operating Expenses Fuel and purchased power — utility 1,605 1,481 1,978 Operation and maintenance 1,439 1,417 1,564 Depreciation and amortization 1,447 1,340 1,218 Taxes other than income 353 339 339 Asset (gains) losses and impairments, net 12 27 8 4,856 4,604 5,107 Operating Income 1,437 1,214 1,305 Other (Income) and Deductions 396 364 324 Income Tax Expense (Benefit) (31) 78 25 Net Income Attributable to DTE Energy Company $ 1,072 $ 772 $ 956 See DTE Electric's Consolidated Statements of Operations in Item 8 of this Report for a complete view of its results.
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 health care trend rates for DTE Energy assume 8.50% for pre-65 participants and 9.00% for post-65 participants for 2025, trending down to 4.50% for both pre-65 and post-65 participants in 2035.
The following tables detail changes relative to comparable prior periods: 2023 (In millions) Gas structured and gas transportation strategies - primarily significantly lower gas prices ($5,673), and settled financial hedges ($114) $ (5,787) Unrealized MTM - gains of $171 compared to losses of ($28) in the prior period 199 Other realized gain (loss) (108) $ (5,696) 2022 (In millions) Gas structured and gas transportation strategies - primarily significantly higher gas prices $3,664, and settled financial hedges $95 $ 3,759 Unrealized MTM - losses of ($28) compared to losses of ($67) in the prior period 39 Other realized gain (loss) (321) $ 3,477 39 Table of Contents Purchased power, gas, and other — non-utility expense decreased $6,263 million in 2023 and increased $3,506 million in 2022.
The following tables detail changes relative to comparable prior periods: 2024 (In millions) Gas structured and gas transportation strategies - primarily lower gas prices ($380), and settled financial hedges ($56) $ (436) Unrealized MTM - losses of ($210) compared to gains of $171 in the prior period (381) Other realized gain (loss) 48 $ (769) 2023 (In millions) Gas structured and gas transportation strategies - primarily significantly lower gas prices ($5,673), and settled financial hedges ($114) $ (5,787) Unrealized MTM - gains of $171 compared to losses of ($28) in the prior period 199 Other realized gain (loss) (108) $ (5,696) 39 Table of Contents Purchased power, gas, and other — non-utility expense decreased $506 million in 2024 and $6,263 million in 2023.
The following tables detail changes relative to comparable prior periods: 2023 (In millions) Gas structured and gas transportation strategies - primarily significantly lower gas prices $ (5,780) Unrealized MTM - gains of ($122) compared to losses of $108 in the prior period (230) Other realized (gain) loss (253) $ (6,263) 2022 (In millions) Gas structured and gas transportation strategies - primarily significantly higher gas prices $ 3,768 Unrealized MTM - losses of $107 compared to losses of $89 in the prior period 18 Other realized (gain) loss (280) $ 3,506 Operation and maintenance expense increased $14 million in 2023 and decreased $17 million in 2022.
The following tables detail changes relative to comparable prior periods: 2024 (In millions) Gas structured and gas transportation strategies - primarily lower gas prices $ (436) Unrealized MTM - gains of ($233) compared to gains of ($122) in the prior period (111) Other realized (gain) loss 41 $ (506) 2023 (In millions) Gas structured and gas transportation strategies - primarily significantly lower gas prices $ (5,780) Unrealized MTM - gains of ($122) compared to losses of $108 in the prior period (230) Other realized (gain) loss (253) $ (6,263) Operation and maintenance expense increased $5 million in 2024 and $14 million in 2023.
Other (Income) and Deductions increased $12 million in 2023 and decreased $127 million in 2022. The 2023 increase was primarily due to $7 million higher equity investment earnings in the Renewables business and $4 million higher interest income associated with a new project in the Steel business.
The 2023 increase was primarily due to $7 million higher equity investment earnings in the Renewables business and $4 million higher interest income associated with a new project in the Steel business. Income Taxes — Expense decreased $4 million in 2024 and increased $11 million in 2023.
If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized.
In performing the impairment test, DTE Energy compares the fair value of the reporting unit to its carrying value including goodwill. If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized.
Operation and maintenance expense decreased $64 million in 2023 and increased $31 million in 2022. The decrease in 2023 was primarily due to lower gas operations expense of $36 million, lower corporate support costs of $24 million, and lower benefits and other compensation expense of $7 million, partially offset by higher legal expense of $3 million.
The decrease in 2023 was primarily due to lower gas operations expense of $36 million, lower corporate support costs of $24 million, and lower benefits and other compensation expense of $7 million, partially offset by higher legal expense of $3 million. Depreciation and amortization expense increased $12 million in 2024 and $17 million in 2023.
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. Cash from Financing Activities DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.
Net cash used for investing activities increased $856 million in 2024 and $664 million in 2023 due primarily to increases in utility plant and equipment expenditures and cash used related to Notes receivable. Cash from Financing Activities DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.
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 results and outlook are discussed below: 2024 2023 2022 (In millions) Operating Revenues — Non-utility operations $ 753 $ 809 $ 848 Operating Expenses Fuel, purchased power, and gas — non-utility 378 421 431 Operation and maintenance 261 232 267 Depreciation and amortization 59 53 52 Taxes other than income 11 9 10 Asset (gains) losses and impairments, net 10 (10) (7) 719 705 753 Operating Income 34 104 95 Other (Income) and Deductions (64) (27) (15) Income Taxes Expense 34 38 27 Tax Credits (71) (60) (9) (37) (22) 18 Net Income Attributable to DTE Energy Company $ 135 $ 153 $ 92 Operating Revenues — Non-utility operations decreased $56 million in 2024 and $39 million in 2023.
DTE Energy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the expected return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year.
DTE Energy will continue to evaluate the actuarial assumptions, including its expected rate of return, at least annually. 46 Table of Contents DTE Energy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the expected return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year.
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.
For further discussion of the fair value hierarchy, see Note 11 to the Consolidated Financial Statements, "Fair Value." 48 Table of Contents The following table provides details on changes in DTE Energy's MTM net asset (or liability) position: Total (In millions) MTM at December 31, 2023 $ 97 Reclassified to realized upon settlement (342) Changes in fair value recorded to income 347 Amounts recorded to unrealized income 5 Changes in fair value recorded in Regulatory liabilities 21 Amounts recorded in other comprehensive income, pretax 38 Change in collateral (89) MTM at December 31, 2024 $ 72 The table below shows the maturity of DTE Energy's MTM positions.
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.
Gas results and outlook are discussed below: 2024 2023 2022 (In millions) Operating Revenues — Utility operations $ 1,798 $ 1,748 $ 1,924 Operating Expenses Cost of gas — utility 484 469 632 Operation and maintenance 535 488 552 Depreciation and amortization 221 209 192 Taxes other than income 118 108 101 Asset (gains) losses and impairments, net 6 — — 1,364 1,274 1,477 Operating Income 434 474 447 Other (Income) and Deductions 100 87 87 Income Tax Expense 77 93 88 Net Income Attributable to DTE Energy Company $ 257 $ 294 $ 272 Operating Revenues — Utility operations increased $50 million in 2024 and decreased $176 million in 2023.
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.
Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements: Note Title 1 Organization and Basis of Presentation 7 Asset Retirement Obligations 8 Regulatory Matters 9 Income Taxes 12 Financial and Other Derivative Instruments 13 Long-Term Debt 15 Short-Term Credit Arrangements and Borrowings 17 Commitments and Contingencies 19 Retirement Benefits and Trusteed Assets 20 Stock-Based Compensation 43 Table of Contents Liquidity DTE Energy has approximately $1.9 billion of available liquidity at December 31, 2024, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.
Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation.
The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032. Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation.
The decrease in 2023 was primarily due to a lower cost of gas of $92 million and lower sales volumes of $71 million. The increase in 2022 was primarily due to a higher cost of gas of $153 million and higher sales volumes of $57 million.
The increase in 2024 was primarily due to higher cost of gas of $40 million, partially offset by lower sales volumes of $25 million. The decrease in 2023 was primarily due to a lower cost of gas of $92 million and lower sales volumes of $71 million.
The change in both periods was due to the following: 2023 2022 (In millions) Gas Cost Recovery $ (161) $ 210 Weather (85) 47 Implementation of new rates — 80 Regulatory mechanism — EWR 4 8 Home Protection Program 5 6 Base sales 7 18 Voluntary refund 10 (5) Infrastructure recovery mechanism 39 1 Other 5 6 $ (176) $ 371 35 Table of Contents Revenue results are impacted by changes in sales volumes, which are summarized in the table below: 2023 2022 2021 (In Bcf) Gas Markets Gas sales 129 145 128 End-user transportation 174 168 165 303 313 293 Intermediate transportation 541 527 488 Total Gas sales 844 840 781 The change in sales in 2023 was primarily due to unfavorable weather.
The change in both periods was due to the following: 2024 2023 (In millions) Infrastructure recovery mechanism $ 25 $ 39 Implementation of new rates 19 — Gas Cost Recovery 15 (161) Midstream storage and transportation revenues 10 3 Home Protection Program 5 5 Regulatory mechanism — EWR 2 4 Voluntary refund (5) 10 Base sales (10) 7 Weather (14) (85) Other 3 2 $ 50 $ (176) 35 Table of Contents Revenue results are impacted by changes in sales volumes, which are summarized in the table below: 2024 2023 2022 (In Bcf) Gas Markets Gas sales 125 129 145 End-user transportation 167 174 168 292 303 313 Intermediate transportation 517 541 527 Total Gas sales 809 844 840 The change in sales in 2024 was primarily due to unfavorable weather.
Changes in the fair value of the derivative instruments are recognized in earnings in the period of change. The normal purchases and normal sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business.
The normal purchases and normal sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that are designated as normal purchases and normal sales are not recorded at fair value.
Accounting for Tax Obligations The Registrants are required to make judgments regarding the potential tax effects of various financial transactions and results of operations in order to estimate their obligations to taxing authorities.
Legal reserves are based upon the Registrants' management’s assessment of pending and threatened legal proceedings and claims against the Registrants. Accounting for Tax Obligations The Registrants are required to make judgments regarding the potential tax effects of various financial transactions and results of operations in order to estimate their obligations to taxing authorities.
Operating Income (Loss) decreased $15 million in 2022, which includes a $26 million unfavorable change in timing-related losses primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle.
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.
These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade.
Various subsidiaries and equity investees of DTE Energy have entered into derivative and non-derivative contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade.
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 Vantage is also developing decarbonization opportunities relating to carbon capture and sequestration projects. ENERGY TRADING SEGMENT 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 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.
DTE Energy believes these rates are reasonable assumptions for the long-term rates of return on the plans' assets for 2025 given their respective asset allocations and DTE Energy's capital market expectations.
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.
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.
The 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.
The changes were due to the following: 2024 (In millions) Lower demand and prices in the Steel business $ (44) Lower sales in the Renewables business (21) Sale of project in the On-site business (3) New project in the On-site business 13 Other (1) $ (56) 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) 37 Table of Contents Fuel, purchased power, and gas — non-utility expense decreased $43 million in 2024 and $10 million in 2023.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market.
Substantially all of the commodity contracts entered into by DTE Electric and DTE Gas meet the criteria specified for this exception. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market.
The increase was primarily due to higher cash from working capital items and increases in Net income, Depreciation and amortization, and Deferred income taxes. 41 Table of Contents The change in working capital items in 2023 was primarily due to an increase in cash related to Accounts receivable, net and Regulatory assets and liabilities, partially offset by a decrease in cash related to Prepaid postretirement benefit costs, Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities.
The change in working capital items in 2024 was primarily due to an increase in cash related to Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by a decrease in cash related to Accounts receivable net, Inventories, Accrued pension liability, and Accrued postretirement liability. 41 Table of Contents Net cash from operations increased $1.2 billion in 2023.
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.
Clair facilities, and plans to repurpose the Trenton Channel plant to a battery energy storage system in 2026. DTE Electric has also announced plans to retire its remaining six coal-fired generating units, including converting the two units at the Belle River facility from a base load coal plant to a natural gas peaking resource in 2025-2026.
The decrease in 2022 was primarily due to the closure of the REF business. Asset (gains) losses and impairments, net changed by $3 million in 2023 from the net gain of $7 million in 2022, and changed by $35 million in 2022 from the net loss of $28 million in 2021.
The increase in 2024 was primarily due to new projects in the Renewables business. Asset (gains) losses and impairments, net changed by $20 million in 2024 from the net gain of $10 million in 2023, and changed by $3 million in 2023 from the net gain of $7 million in 2022.
The change in both periods was due to the following: 2023 2022 (In millions) Power Supply Cost Recovery $ (287) $ 365 Weather (235) (13) Interconnection sales (128) 164 Base sales (71) (84) COVID-19 voluntary refund amortization in 2022 (30) 30 Tree trim voluntary refund in 2021 — 90 Regulatory mechanism - DTE Securitization I and II 26 29 Implementation of new rates 43 3 Rate mix 63 (6) Other regulatory mechanisms and other (a) 25 13 $ (594) $ 591 ______________________________ (a) Primarily includes regulatory mechanisms relating to EWR, RPS, and TRM.
The change in both periods was due to the following: 2024 2023 (In millions) Implementation of new rates $ 338 $ 43 Weather 158 (235) Regulatory mechanism — DTE Securitization I and II 52 26 Interconnection sales 28 (128) Base sales 15 (71) Rate mix 3 63 COVID-19 voluntary refund amortization in 2022 — (30) Power Supply Cost Recovery (a) (27) (287) Regulatory mechanism — RPS (b) (95) 23 Other regulatory mechanisms and other (c) 3 2 $ 475 $ (594) ______________________________ (a) Includes impact of nuclear PTCs recognized in 2024.

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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. 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
Biggest changeThe 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 2024 2023 2024 2023 Change in the Fair Value of (In millions) Gas contracts $ 26 $ 40 $ (26) $ (40) Commodity contracts Power contracts $ 1 $ 1 $ (1) $ (1) Commodity contracts Environmental contracts $ (8) $ (7) $ 8 $ 7 Commodity contracts Oil contracts $ — $ 1 $ — $ (1) Commodity contracts Interest rate risk — DTE Energy $ (789) $ (733) $ 848 $ 786 Long-term debt Interest rate risk — DTE Electric $ (494) $ (492) $ 538 $ 535 Long-term debt For further discussion of market risk, see Management's Discussion and Analysis in Item 7 of this Report and Note 12 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments." 51 Table of Contents
(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.
(Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented 23% 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 1% of the total gross credit exposure.
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.
As of December 31, 2024, DTE Energy had floating rate debt of $1.1 billion and a floating rate debt-to-total debt ratio of 4.8%. 50 Table of Contents Foreign Currency Exchange Risk DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts.
The Registrants manage this risk by working at the state and federal levels to promote funding programs for low-income customers, providing energy assistance programs and support, and promoting timely customer payments through adherence to MPSC billing practice rules relating to payment arrangements, energy disconnects, and restores. Trading Activities DTE Energy is exposed to credit risk through trading activities.
The Registrants believe their accrued amounts are adequate for probable loss. The Registrants manage this risk by working at the state and federal levels to promote funding programs for low-income customers, providing energy assistance programs and support, and promoting timely customer payments through adherence to MPSC billing practice rules relating to payment arrangements, energy disconnects, and restores.
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.
The following table displays the credit quality of DTE Energy's trading counterparties as of December 31, 2024: Credit Exposure Before Cash Collateral Cash Collateral Net Credit Exposure (In millions) Investment Grade (a) A- and Greater $ 403 $ — $ 403 BBB+ and BBB 371 — 371 BBB- 12 — 12 Total Investment Grade 786 — 786 Non-investment grade (b) 12 — 12 Internally Rated — investment grade (c) 331 — 331 Internally Rated — non-investment grade (d) 10 (1) 9 Total $ 1,139 $ (1) $ 1,138 _______________________________________ (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.
Credit Risk Allowance for Doubtful Accounts The Registrants regularly review contingent matters, existing and future economic conditions, customer trends and other factors relating to customers and their contracts and record provisions for amounts considered at risk of probable loss in the allowance for doubtful accounts. The Registrants believe their accrued amounts are adequate for probable loss.
These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, and futures contracts, within predetermined risk parameters. 49 Table of Contents Credit Risk Allowance for Doubtful Accounts The Registrants regularly review contingent matters, existing and future economic conditions, customer trends and other factors relating to customers and their contracts and record provisions for amounts considered at risk of probable loss in the allowance for doubtful accounts.
Credit risk is the potential loss that may result if the trading counterparties fail to meet their contractual obligations.
Trading Activities DTE Energy is exposed to credit risk through trading activities. Credit risk is the potential loss that may result if the trading counterparties fail to meet their contractual obligations. DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties.
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 sensitivity analyses involved increasing and decreasing forward prices and rates at December 31, 2024 and 2023 by a hypothetical 10% and calculating the resulting change in the fair values. The 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.
Removed
These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, and futures contracts, within predetermined risk parameters.

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