Item 8. Financial Statements and Supplementary Data

468K characters. Original on sec.gov · Markdown

Item 8. Financial Statements and Supplementary Data

The following Consolidated Financial Statements are included herein:


			Page
DTE Energy — Controls and Procedures			55
DTE Energy — Report of Independent Registered Public Accounting Firm (PCAOB ID 238)			56
DTE Energy — Consolidated Statements of Operations			58
DTE Energy — Consolidated Statements of Comprehensive Income			59
DTE Energy — Consolidated Statements of Financial Position			60
DTE Energy — Consolidated Statements of Cash Flows			62
DTE Energy — Consolidated Statements of Changes in Equity			64
DTE Electric — Controls and Procedures			65
DTE Electric — Report of Independent Registered Public Accounting Firm (PCAOB ID 238)			66
DTE Electric — Consolidated Statements of Operations			68
DTE Electric — Consolidated Statements of Comprehensive Income			69
DTE Electric — Consolidated Statements of Financial Position			70
DTE Electric — Consolidated Statements of Cash Flows			72
DTE Electric — Consolidated Statements of Changes in Shareholder's Equity			73
Combined Notes to Consolidated Financial Statements			74
Note 1 — Organization and Basis of Presentation			74
Note 2 — Significant Accounting Policies			77
Note 3 — New Accounting Pronouncements			84
Note 4 — Acquisition			85
Note 5 — Revenue			85
Note 6 — Property, Plant, and Equipment			90
Note 7 — Jointly-Owned Utility Plant			92
Note 8 — Asset Retirement Obligations			93
Note 9 — Regulatory Matters			94
Note 10 — Income Taxes			98
Note 11 — Earnings Per Share			104
Note 12 — Fair Value			105
Note 13 — Financial and Other Derivative Instruments			112
Note 14 — Long-Term Financings			117
Note 15 — Preferred and Preference Securities			119
Note 16 — Short-Term Credit Arrangements and Borrowings			119
Note 17 — Leases			121
Note 18 — Commitments and Contingencies			124
Note 19 — Nuclear Operations			130
Note 20 — Retirement Benefits and Trusteed Assets			131
Note 21 — Stock-Based Compensation			141
Note 22 — Segment and Related Information			143
Note 23 — Related Party Transactions			146

Table of Contents

DTE Energy — Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Management of DTE Energy carried out an evaluation, under the supervision and with the participation of DTE Energy's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Energy's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2025, which is the end of the period covered by this report. Based on this evaluation, DTE Energy's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Energy in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Energy's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.

(b) Management’s Report on Internal Control Over Financial Reporting

Management of DTE Energy is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, DTE Energy's CEO and CFO, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management of DTE Energy has assessed the effectiveness of DTE Energy’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO) in Internal Control - Integrated Framework. Based on this assessment, management concluded that, as of December 31, 2025, DTE Energy’s internal control over financial reporting was effective based on those criteria.

The effectiveness of DTE Energy's internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers, LLP, an independent registered public accounting firm who also audited DTE Energy's financial statements, as stated in their report which appears herein.

(c) Changes in internal control over financial reporting

There have been no changes in DTE Energy's internal control over financial reporting during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, DTE Energy's internal control over financial reporting.

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of DTE Energy Company

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of DTE Energy Company and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024**,** and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Table of Contents

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for the Effects of New, or Changes to Existing, Regulatory Matters

As described in Note 9 to the consolidated financial statements, the Company recorded $8,169 million of regulatory assets and $2,988 million of regulatory liabilities as of December 31, 2025. The Company is required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of providing regulatory services and be charged to and collected from customers. Future regulatory changes could result in a discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of the Company’s regulated businesses and may require the write-off of the portion of any regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current regulatory environment.

The principal considerations for our determination that performing procedures relating to accounting for the effects of new, or changes to existing, regulatory matters is a critical audit matter are (i) the significant judgment by management in assessing the potential outcomes and related accounting impacts associated with new, or changes to existing, regulatory matters and (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating the appropriateness of management’s assessment and audit evidence related to the assessment.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s assessment and implementation of new regulatory matters or changes to existing regulatory matters. These procedures also included, among others, (i) evaluating the reasonableness of management’s assessment of impacts arising from correspondence with regulators and changes in laws and regulations; (ii) evaluating the sufficiency of the disclosures in the consolidated financial statements; and (iii) testing, on a sample basis, the regulatory assets and liabilities, including those subject to pending rate orders and regulatory proceedings, by considering (a) the provisions and formulas outlined in rate orders; (b) other regulatory correspondence; and (c) application of relevant regulatory precedents.

/s/ PricewaterhouseCoopers LLP

Detroit, Michigan

February 17, 2026

We have served as the Company’s auditor since 2008.

Table of Contents

DTE Energy Company

Consolidated Statements of Operations


	Year Ended December 31,
	2025		2024		2023
	(In millions, except per share amounts)
Operating Revenues
Utility operations	$	8,849	$	7,990	$	7,466
Non-utility operations	6,965		4,467		5,279
	15,814		12,457		12,745
Operating Expenses
Fuel, purchased power, and gas — utility	2,213		1,978		1,845
Fuel, purchased power, gas, and other — non-utility	6,426		3,879		4,413
Operation and maintenance	2,382		2,262		2,160
Depreciation and amortization	1,841		1,732		1,606
Taxes other than income	529		487		462
Asset (gains) losses and impairments, net	49		28		16
	13,440		10,366		10,502
Operating Income	2,374		2,091		2,243

Other (Income) and Deductions
Interest expense	1,056		951		791
Interest income	(103)		(136)		(57)
Non-operating retirement benefits, net	—		—		9

Other income	(230)		(167)		(102)
Other expenses	101		73		36
	824		721		677
Income Before Income Taxes	1,550		1,370		1,566

Income Tax Expense (Benefit)	88		(34)		169








Net Income Attributable to DTE Energy Company	$	1,462	$	1,404	$	1,397

Basic Earnings per Common Share


Net Income Attributable to DTE Energy Company	$	7.04	$	6.78	$	6.77

Diluted Earnings per Common Share


Net Income Attributable to DTE Energy Company	$	7.03	$	6.77	$	6.76

Weighted Average Common Shares Outstanding
Basic	207		207		206
Diluted	207		207		206

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Comprehensive Income


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Net Income	$	1,462	$	1,404	$	1,397

Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $(2), $—, and $2, respectively	(5)		1		6
Net unrealized gains (losses) on derivatives, net of taxes of $(4), $15, and $(4), respectively	(11)		47		(13)

Foreign currency translation	3		(7)		2
Other comprehensive income (loss)	(13)		41		(5)



Comprehensive Income Attributable to DTE Energy Company	$	1,449	$	1,445	$	1,392

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Financial Position


	December 31,
	2025		2024
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	208	$	24
Restricted cash	42		64
Accounts receivable (less allowance for doubtful accounts of $60 and $70, respectively)
Customer	2,031		1,690
Other	118		137
Inventories
Fuel and gas	381		443
Materials, supplies, and other	994		802
Derivative assets	143		162
Regulatory assets	170		50

Other	261		235

	4,348		3,607
Investments
Nuclear decommissioning trust funds	2,552		2,256
Investments in equity method investees	122		128
Other	194		176
	2,868		2,560
Property
Property, plant, and equipment	44,623		40,840
Accumulated depreciation and amortization	(10,970)		(9,947)
	33,653		30,893
Other Assets
Goodwill	1,993		1,993
Regulatory assets	7,380		6,771
Securitized regulatory assets	619		690
Intangible assets	188		144
Notes receivable	1,455		898
Derivative assets	89		85
Prepaid postretirement costs	761		705
Operating lease right-of-use assets	271		188
Other	441		312

	13,197		11,786
Total Assets	$	54,066	$	48,846

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Financial Position — (Continued)


	December 31,
	2025		2024
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,753	$	1,387
Accrued interest	273		224
Dividends payable	242		226
Short-term borrowings	882		1,067
Current portion long-term debt, including securitization bonds and finance leases	1,356		1,296
Derivative liabilities	86		118
Regulatory liabilities	107		181
Operating lease liabilities	32		21


Other	678		586

	5,409		5,106
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	21,736		19,153
Securitization bonds	561		635
Junior subordinated debentures	1,474		884
Finance lease obligations	14		18
	23,785		20,690
Other Liabilities
Deferred income taxes	3,400		2,958
Regulatory liabilities	2,881		2,856
Asset retirement obligations	4,469		4,031
Unamortized investment tax credit	402		269
Derivative liabilities	66		57
Accrued pension liability	235		214
Accrued postretirement liability	247		233
Nuclear decommissioning	405		353
Operating lease liabilities	235		167
Other	224		208

	12,564		11,346
Commitments and Contingencies (Notes 9 and 18)

Equity
Common stock (No par value, 400,000,000 shares authorized, and 207,745,154 and 207,171,582 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively)	6,858		6,779
Retained earnings	5,484		4,946
Accumulated other comprehensive loss	(39)		(26)
Total DTE Energy Company Equity	12,303		11,699
Noncontrolling interests	5		5

Total Equity	12,308		11,704
Total Liabilities and Equity	$	54,066	$	48,846

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Cash Flows


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Operating Activities
Net Income	$	1,462	$	1,404	$	1,397
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	1,841		1,732		1,606
Nuclear fuel amortization	67		55		59
Allowance for equity funds used during construction	(105)		(86)		(42)
Deferred income taxes	358		194		181
Equity (earnings) losses of equity method investees	(47)		(15)		(3)
Dividends from equity method investees	3		3		3

Asset (gains) losses and impairments, net	49		28		16
Changes in assets and liabilities:
Accounts receivable, net	(316)		(40)		398
Inventories	(127)		(191)		(110)
Prepaid postretirement benefit costs	(56)		(72)		(62)
Accounts payable	255		45		(306)
Accrued pension liability	21		(136)		(28)
Accrued postretirement liability	14		(68)		14
Derivative assets and liabilities	6		25		(321)
Regulatory assets and liabilities	24		586		594
Other current and noncurrent assets and liabilities	(40)		179		(176)
Net cash from operating activities	3,409		3,643		3,220

Investing Activities
Plant and equipment expenditures — utility	(4,343)		(4,399)		(3,872)
Plant and equipment expenditures — non-utility	(86)		(68)		(62)
Acquisition related to business combination, net of cash acquired	(210)		—		—
Proceeds from sale of assets	32		46		3
Proceeds from sale of nuclear decommissioning trust fund assets	717		555		681
Investment in nuclear decommissioning trust funds	(719)		(559)		(678)
Distributions from equity method investees	18		30		25
Contributions to equity method investees	(1)		(27)		(27)
Investment in notes receivable	(600)		(479)		(109)
Principal collections on notes receivable	22		30		23
Investment in time deposits	—		(1,050)		—
Redemption of time deposits	—		1,050		—
Other	(134)		(80)		(79)
Net cash used for investing activities	(5,304)		(4,951)		(4,095)

Table of Contents

DTE Energy Company

Consolidated Statements of Cash Flows — (Continued)



Financing Activities
Issuance of long-term debt, net of discount and issuance costs	4,429		4,533		3,167
Redemption of long-term debt	(1,291)		(2,139)		(1,616)


Short-term borrowings, net	(185)		(216)		121


Dividends paid on common stock	(871)		(810)		(752)






Other	(25)		(23)		(37)
Net cash from financing activities	2,057		1,345		883
Net Increase in Cash, Cash Equivalents, and Restricted Cash	162		37		8
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	88		51		43
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	250	$	88	$	51

Supplemental disclosure of cash information
Cash paid (received) for:
Interest, net of interest capitalized	$	978	$	869	$	751


Supplemental disclosure of non-cash investing and financing activities

Plant and equipment expenditures in accounts payable	$	570	$	454	$	490

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Changes in Equity


				Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2022	205,632	$	6,651	$	3,808	$	(62)		$	4	$	10,401

Net Income	—	—		1,397		—			—		1,397
Dividends declared on common stock ($3.88 per Common Share)	—	—		(800)		—			—		(800)

Issuance of common stock	318	35		—		—			—		35




Other comprehensive loss, net of tax	—	—		—		(5)			—		(5)

Stock-based compensation and other	407	27		(1)		—			1		27

Balance, December 31, 2023	206,357	$	6,713	$	4,404	$	(67)		$	5	$	11,055

Net Income	—	—		1,404		—			—		1,404
Dividends declared on common stock ($4.15 per Common Share)	—	—		(859)		—			—		(859)
Issuance of common stock	309	35		—		—			—		35





Other comprehensive income, net of tax	—	—		—		41			—		41

Stock-based compensation and other	506	31		(3)		—			—		28

Balance, December 31, 2024	207,172	$	6,779	$	4,946	$	(26)		$	5	$	11,704

Net Income	—	—		1,462		—			—		1,462
Dividends declared on common stock ($4.44 per Common Share)	—	—		(921)		—			—		(921)
Issuance of common stock	264	34		—		—			—		34




Other comprehensive loss, net of tax	—	—		—		(13)			—		(13)

Stock-based compensation and other	309	45		(3)		—			—		42
Balance, December 31, 2025	207,745	$	6,858	$	5,484	$	(39)		$	5	$	12,308

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric — Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Management of DTE Electric carried out an evaluation, under the supervision and with the participation of DTE Electric's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Electric's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2025, which is the end of the period covered by this report. Based on this evaluation, DTE Electric's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Electric in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Electric's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.

(b) Management’s Report on Internal Control Over Financial Reporting

Management of DTE Electric is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, DTE Electric's CEO and CFO, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Management of DTE Electric has assessed the effectiveness of DTE Electric's internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO) in Internal Control - Integrated Framework. Based on this assessment, management concluded that, as of December 31, 2025, DTE Electric's internal control over financial reporting was effective based on those criteria.

This annual report does not include an audit report of DTE Electric's independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to audit by DTE Electric's independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit DTE Electric to provide only management’s report in this annual report.

(c) Changes in internal control over financial reporting

There have been no changes in DTE Electric's internal control over financial reporting during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, DTE Electric's internal control over financial reporting.

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholder of DTE Electric Company

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of DTE Electric Company and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of changes in shareholder’s equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Accounting for the Effects of New, or Changes to Existing, Regulatory Matters

As described in Note 9 to the consolidated financial statements, the Company recorded $7,598 million of regulatory assets and $1,861 million of regulatory liabilities as of December 31, 2025. The Company is required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of providing regulatory services and be charged to and collected from customers. Future regulatory changes could result in a discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of the Company’s regulated businesses and may require the write-off of the portion of any regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current regulatory environment.

Table of Contents

/s/ PricewaterhouseCoopers LLP

Detroit, Michigan

February 17, 2026

We have served as the Company's auditor since 2008.

Table of Contents

DTE Electric Company

Consolidated Statements of Operations


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Operating Revenues — Utility operations	$	6,885	$	6,277	$	5,804

Operating Expenses
Fuel and purchased power — utility	1,816		1,618		1,492
Operation and maintenance	1,468		1,435		1,421
Depreciation and amortization	1,530		1,432		1,326
Taxes other than income	381		352		338
Asset (gains) losses and impairments, net	46		12		26
	5,241		4,849		4,603
Operating Income	1,644		1,428		1,201

Other (Income) and Deductions
Interest expense	550		495		429
Interest income	(9)		(7)		(20)
Non-operating retirement benefits, net	(5)		(5)		(4)
Other income	(171)		(144)		(87)
Other expenses	56		49		33
	421		388		351
Income Before Income Taxes	1,223		1,040		850

Income Tax Expense (Benefit)	71		(32)		78

Net Income	$	1,152	$	1,072	$	772

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric Company

Consolidated Statements of Comprehensive Income


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Net Income	$	1,152	$	1,072	$	772



Other comprehensive income	—		—		—
Comprehensive Income	$	1,152	$	1,072	$	772

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position


	December 31,
	2025		2024
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	81	$	11
Restricted cash	42		48
Accounts receivable (less allowance for doubtful accounts of $41 and $46, respectively)
Customer	805		734
Affiliates	2		6
Other	55		58
Inventories
Fuel	114		193
Materials and supplies	678		537
Notes receivable
Affiliates	—		42

Regulatory assets	158		39

Other	116		101
	2,051		1,769
Investments
Nuclear decommissioning trust funds	2,552		2,256
Other	72		67
	2,624		2,323
Property
Property, plant, and equipment	33,807		30,801
Accumulated depreciation and amortization	(8,239)		(7,404)
	25,568		23,397
Other Assets
Regulatory assets	6,821		6,187
Securitized regulatory assets	619		690

Prepaid postretirement costs — affiliates	463		428
Operating lease right-of-use assets	237		159
Other	607		268
	8,747		7,732
Total Assets	$	38,990	$	35,221

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position — (Continued)


	December 31,
	2025		2024
	(In millions, except shares)
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities
Accounts payable
Affiliates	$	71	$	64
Other	839		681
Accrued interest	135		128

Current portion long-term debt, including securitization bonds and finance leases	754		425
Regulatory liabilities	63		156
Short-term borrowings

Other	652		666
Operating lease liabilities	27		18
Other	228		204
	2,769		2,342
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	11,852		10,825
Securitization bonds	561		635
Finance lease liabilities	6		8
	12,419		11,468
Other Liabilities
Deferred income taxes	3,812		3,393
Regulatory liabilities	1,798		1,753
Asset retirement obligations	4,217		3,791
Unamortized investment tax credit	402		269
Nuclear decommissioning	405		353
Accrued pension liability — affiliates	245		248
Accrued postretirement liability — affiliates	237		225
Operating lease liabilities	206		142
Other	66		83
	11,388		10,257
Commitments and Contingencies (Notes 9 and 18)

Shareholder's Equity
Common stock ($10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding for both periods)	8,949		7,995
Retained earnings	3,465		3,159

Total Shareholder's Equity	12,414		11,154
Total Liabilities and Shareholder's Equity	$	38,990	$	35,221

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric Company

Consolidated Statements of Cash Flows


	Year Ended December 31,
	2025		2024		2023
Operating Activities	(In millions)
Net Income	$	1,152	$	1,072	$	772
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	1,530		1,432		1,326
Nuclear fuel amortization	67		55		59
Allowance for equity funds used during construction	(103)		(84)		(40)
Deferred income taxes	339		196		82
Asset (gains) losses and impairments, net	46		12		26
Changes in assets and liabilities:
Accounts receivable, net	(64)		33		(14)
Inventories	(62)		(130)		(99)
Prepaid postretirement benefit costs — affiliates	(35)		(50)		(33)
Accounts payable	57		25		(9)
Accrued pension liability — affiliates	(3)		(86)		(53)
Accrued postretirement liability — affiliates	12		(65)		15
Regulatory assets and liabilities	(9)		499		461
Other current and noncurrent assets and liabilities	(208)		(93)		(218)
Net cash from operating activities	2,719		2,816		2,275
Investing Activities
Plant and equipment expenditures	(3,686)		(3,636)		(3,089)



Proceeds from sale of nuclear decommissioning trust fund assets	717		555		681
Investment in nuclear decommissioning trust funds	(719)		(559)		(678)
Investment in notes receivable	(231)		(42)		(20)
Principal collections on notes receivable	1		14		17
Other	(88)		(74)		(44)
Net cash used for investing activities	(4,006)		(3,742)		(3,133)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	1,694		993		1,881
Redemption of long-term debt	(421)		(164)		(541)

Capital contribution by parent company	954		634		759
Short-term borrowings, net — affiliates	—		—		(27)
Short-term borrowings, net — other	(14)		281		(183)
Dividends paid on common stock	(846)		(776)		(1,002)
Other	(16)		(15)		(21)
Net cash from financing activities	1,351		953		866
Net Increase in Cash, Cash Equivalents, and Restricted Cash	64		27		8
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	59		32		24
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	123	$	59	$	32

Supplemental disclosure of cash information
Cash paid (received) for:
Interest, net of interest capitalized	$	529	$	467	$	409

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	484	$	369	$	403

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Electric Company

Consolidated Statements of Changes in Shareholder's Equity


				Additional Paid-in Capital		Retained Earnings
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2022	138,632	$	1,386	$	5,216	$	3,093		$	9,695

Net Income	—	—		—		772			772
Dividends declared on common stock	—	—		—		(1,002)			(1,002)

Capital contribution by parent company	—	—		759		—			759
Balance, December 31, 2023	138,632	$	1,386	$	5,975	$	2,863		$	10,224

Net Income	—	—		—		1,072			1,072
Dividends declared on common stock	—	—		—		(776)			(776)

Capital contribution by parent company	—	—		634		—			634
Balance, December 31, 2024	138,632	$	1,386	$	6,609	$	3,159		$	11,154

Net Income	—	—		—		1,152			1,152
Dividends declared on common stock	—	—		—		(846)			(846)

Capital contribution by parent company	—	—		954		—			954
Balance, December 31, 2025	138,632	$	1,386	$	7,563	$	3,465		$	12,414

See Combined Notes to Consolidated Financial Statements

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements

Index of Combined Notes to Consolidated Financial Statements

The Combined Notes to Consolidated Financial Statements are a combined presentation for DTE Energy and DTE Electric. The following list indicates the Registrant(s) to which each note applies:


Note 1	Organization and Basis of Presentation	DTE Energy and DTE Electric
Note 2	Significant Accounting Policies	DTE Energy and DTE Electric
Note 3	New Accounting Pronouncements	DTE Energy and DTE Electric
Note 4	Acquisition	DTE Energy
Note 5	Revenue	DTE Energy and DTE Electric

Note 6	Property, Plant, and Equipment	DTE Energy and DTE Electric
Note 7	Jointly-Owned Utility Plant	DTE Energy and DTE Electric
Note 8	Asset Retirement Obligations	DTE Energy and DTE Electric
Note 9	Regulatory Matters	DTE Energy and DTE Electric
Note 10	Income Taxes	DTE Energy and DTE Electric
Note 11	Earnings Per Share	DTE Energy
Note 12	Fair Value	DTE Energy and DTE Electric
Note 13	Financial and Other Derivative Instruments	DTE Energy and DTE Electric
Note 14	Long-Term Financings	DTE Energy and DTE Electric
Note 15	Preferred and Preference Securities	DTE Energy and DTE Electric
Note 16	Short-Term Credit Arrangements and Borrowings	DTE Energy and DTE Electric
Note 17	Leases	DTE Energy and DTE Electric
Note 18	Commitments and Contingencies	DTE Energy and DTE Electric
Note 19	Nuclear Operations	DTE Energy and DTE Electric
Note 20	Retirement Benefits and Trusteed Assets	DTE Energy and DTE Electric
Note 21	Stock-Based Compensation	DTE Energy and DTE Electric
Note 22	Segment and Related Information	DTE Energy and DTE Electric
Note 23	Related Party Transactions	DTE Electric

NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION

Corporate Structure

DTE Energy owns the following businesses:

DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million customers in southeastern Michigan;
DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million customers throughout Michigan and the sale of storage and transportation capacity; and
Other businesses include 1) DTE Vantage, which is primarily involved in renewable natural gas projects and providing custom energy solutions to industrial, commercial, and institutional customers, and 2) energy marketing and trading operations.

DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businesses under DTE Energy, are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, the EPA, EGLE, and for DTE Energy, the CFTC and CARB.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Basis of Presentation

The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.

The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

Certain prior year balances for the Registrants were reclassified to match the current year's Consolidated Financial Statements presentation.

Principles of Consolidation

The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the equity investment is valued at cost minus any impairments, if applicable. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.

The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.

Legal entities within the DTE Vantage segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are generally accounted for under the equity method.

The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, and an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.

DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of December 31, 2025, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of December 31, 2025, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no material potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no material potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Electric previously financed regulatory assets for deferred costs related to certain retired generation plants and its tree trimming surge program through the sale of bonds by wholly-owned special purpose entities, DTE Securitization I and DTE Securitization II (collectively "the DTE Securitization entities"). The DTE Securitization entities are VIEs. DTE Electric has the power to direct the most significant activities of these entities, including performing servicing activities such as billing and collecting surcharge revenue. Accordingly, DTE Electric is the primary beneficiary and the DTE Securitization entities are consolidated by the Registrants. Securitization bond holders have no recourse to the Registrants' assets, except for those held by the DTE Securitization entities. Surcharges collected by DTE Electric to pay for bond servicing and other qualified costs reflect securitization property solely owned by the DTE Securitization entities. These surcharges are remitted to a trustee and are not available to other creditors of the Registrants.

The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment and notes receivable.

The table below summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of December 31, 2025 and 2024. All assets and liabilities of a consolidated VIE are presented where it has been determined that a consolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. Assets and liabilities of the DTE Securitization entities have been aggregated due to their similar nature and are separately stated in the table below, comprising the entirety of the DTE Electric amounts. For all other VIEs, assets and liabilities are also aggregated due to their similar nature and presented together with the DTE Securitization entities in the DTE Energy amounts below. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table.

During Q4 2025, a consolidated VIE of DTE Vantage completed a contract that previously restricted certain assets of the VIE to be used only to settle the VIE's obligations. As a result, the assets and liabilities of the VIE, which primarily include receivables and payables, meet the exclusion criteria above. Accordingly, these assets and liabilities have been removed from the DTE Energy amounts for 2025 in the table below.

Amounts for the Registrants' consolidated VIEs are as follows:


	December 31,
	2025				2024
	DTE Energy		DTE Electric		DTE Energy		DTE Electric
	(In millions)
ASSETS
Cash and cash equivalents	$	5	$	—	$	6	$	—
Restricted cash	42		42		64		48
Accounts receivable	10		6		27		6
Securitized regulatory assets	619		619		690		690




Notes receivable(a)	68		—		657		—
Other current and long-term assets	1		—		1		—
	$	745	$	667	$	1,445	$	744

LIABILITIES
Accounts payable	$	—	—		$	26	$	—
Accrued interest	11		11		12		12


Regulatory liabilities — current	23		23		27		27

Securitization bonds(b)	636		636		706		706

Other current and long-term liabilities	4		—		20		—
	$	674	$	670	$	791	$	745

(a)At December 31, 2025 and December 31, 2024, Notes receivable includes $2 million and $14 million, respectively, reported in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.

(b)Includes $75 million and $71 million reported in Current portion of long-term debt on the Registrants' Consolidated Statements of Financial Position at December 31, 2025 and December 31, 2024, respectively.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Energy has Investments in equity method investees relating to non-consolidated VIEs of $63 million and $65 million at December 31, 2025 and 2024, respectively.

Equity Method Investments

Investments in non-consolidated affiliates that are not controlled by the Registrants, but over which they have significant influence, are accounted for using the equity method. Certain of the equity method investees are also considered VIEs and disclosed in the non-consolidated VIEs information above.

At December 31, 2025 and 2024, DTE Energy's Investments in equity method investees were $122 million and $128 million, respectively. The balances are primarily comprised of investments in the DTE Vantage segment and Corporate and Other, of which no investment is individually significant. DTE Vantage investments include projects that deliver energy and utility-type products and services to industrial customers, sell electricity and gas from renewable energy projects, and produce and sell metallurgical coke. Corporate and Other holds various ownership interests in limited partnerships that include investment funds supporting regional development and economic growth. For further information by segment, see Note 22 to the Consolidated Financial Statements, "Segment and Related Information."

At December 31, 2025 and 2024, DTE Energy's share of the underlying equity in the net assets of the investees exceeded the carrying amounts of Investments in equity method investees by $96 million and $94 million, respectively. The difference is being amortized over the life of the underlying assets.

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

Other Income

Other income for the Registrants is recognized for non-operating income such as equity earnings of equity method investees, allowance for equity funds used during construction, contract services, and certain investment income, primarily from trading securities held in DTE Energy's rabbi trust.

The following is a summary of DTE Energy's Other income:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Allowance for equity funds used during construction	$	105	$	86	$	42
Equity earnings of equity method investees	47		15		3
Contract services	43		34		26
Investment income(a)	17		17		17


Other	18		15		14
	$	230	$	167	$	102

(a)Investment losses are recorded separately to Other expenses on the Consolidated Statements of Operations.

The following is a summary of DTE Electric's Other income:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Allowance for equity funds used during construction	$	103	$	84	$	40
Contract services	43		33		25

Investment income(a)	14		13		11
Other	11		14		11
	$	171	$	144	$	87

(a)Investment losses are recorded separately to Other expenses on the Consolidated Statements of Operations.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

For information on equity earnings of equity method investees by segment, see Note 22 to the Consolidated Financial Statements, "Segment and Related Information."

Accounting for ISO Transactions

DTE Electric participates in the energy market through MISO. MISO requires that DTE Electric submit hourly day-ahead, real-time, and FTR bids and offers for energy at locations across the MISO region. DTE Electric accounts for MISO transactions on a net hourly basis in each of the day-ahead, real-time, and FTR markets. In any single hour, transactions in each of the MISO energy markets are netted based on MWh to determine if DTE Electric is in a net sale or purchase position. Net purchases are recorded in Fuel, purchased power, and gas — utility and net sales are recorded in Operating Revenues — Utility operations on the Registrants' Consolidated Statements of Operations.

The Energy Trading segment participates in the energy markets through various ISOs and RTOs. These markets require that Energy Trading submits hourly day-ahead, real-time bids and offers for energy at locations across each region. Energy Trading submits bids in the annual and monthly auction revenue rights and FTR auctions to the RTOs. Energy Trading accounts for these transactions on a net hourly basis for the day-ahead, real-time, and FTR markets. These transactions are related to trading contracts which, if derivatives, are presented on a net basis in Operating Revenues — Non-utility operations, and if non-derivatives, the realized gains and losses for sales are recorded in Operating Revenues — Non-utility operations and purchases are recorded in Fuel, purchased power, gas, and other — non-utility in the DTE Energy Consolidated Statements of Operations.

DTE Electric and Energy Trading record accruals for future net purchase adjustments based on historical experience and reconcile accruals to actual costs when invoices are received from MISO and other ISOs and RTOs.

Derivatives

Energy Trading classifies derivative transactions as revenue or expense based on the intent of the transaction (buy or sell). Revenues are recorded on a gross or net basis within the income statement depending upon whether it represents a non-trading activity or trading activity, respectively. Cash flows associated with derivative instruments, including related gains and losses, are presented as Operating Activities within the Registrants' Consolidated Statements of Cash Flows. For additional information, refer to Note 13 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Changes in Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is the change in common shareholders’ equity during a period from transactions and events from non-owner sources, including Net Income. The amounts recorded to Accumulated other comprehensive income (loss) for DTE Energy include changes in benefit obligations, consisting of deferred actuarial losses and prior service costs, unrealized gains and losses from derivatives accounted for as cash flow hedges, and foreign currency translation adjustments, if any. DTE Energy releases income tax effects from accumulated other comprehensive income when the circumstances upon which they are premised cease to exist.

Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity, if any. For the years ended December 31, 2025 and 2024, reclassifications out of Accumulated other comprehensive income (loss) were not material.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table summarizes the changes in DTE Energy's Accumulated other comprehensive income (loss) by component(a) for the years ended December 31, 2025 and 2024:


	Net Unrealized Gain (Loss) on Derivatives		Benefit Obligations(b)		Foreign Currency Translation		Total
	(In millions)
Balance, December 31, 2023	$	(17)	$	(52)	$	2	$	(67)
Other comprehensive income (loss) before reclassifications	47		(3)		(7)		37
Amounts reclassified from Accumulated other comprehensive loss	—		4		—		4
Net current period Other comprehensive income (loss)	47		1		(7)		41


Balance, December 31, 2024	$	30	$	(51)	$	(5)	$	(26)
Other comprehensive income (loss) before reclassifications	(8)		(9)		3		(14)
Amounts reclassified from Accumulated other comprehensive loss	(3)		4		—		1
Net current period Other comprehensive income (loss)	(11)		(5)		3		(13)
Balance, December 31, 2025	$	19	$	(56)	$	(2)	$	(39)

(a)All amounts are net of tax, except for foreign currency translation.

(b)Benefit obligations activity includes changes in actuarial (gain) loss and prior service cost in DTE Energy's pension and other postretirement benefit plans. Refer to Note 20 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets," for details regarding this activity.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with maturities of three months or less. Restricted cash includes funds held in separate bank accounts and principally consists of amounts at DTE Securitization I and DTE Securitization II to pay for debt service and other qualified costs. Restricted cash designated for payments within one year is classified as a Current Asset.

Financing Receivables

Financing receivables are primarily composed of trade receivables, notes receivable, and unbilled revenue. The Registrants' financing receivables are stated at net realizable value.

DTE Energy had unbilled revenues of $1.3 billion and $1.0 billion at December 31, 2025 and 2024, respectively, including $322 million and $303 million of DTE Electric unbilled revenues, respectively, included in Customer Accounts receivable.

The Registrants monitor the credit quality of their financing receivables on a regular basis by reviewing credit quality indicators and monitoring for trigger events, such as a credit rating downgrade or bankruptcy. Credit quality indicators include, but are not limited to, ratings by credit agencies where available, collection history, collateral, counterparty financial statements and other internal metrics. Utilizing such data, the Registrants have determined three internal grades of credit quality. Internal grade 1 includes financing receivables for counterparties where credit rating agencies have ranked the counterparty as investment grade. To the extent credit ratings are not available, the Registrants utilize other credit quality indicators to determine the level of risk associated with the financing receivable. Internal grade 1 may include financing receivables for counterparties for which credit rating agencies have ranked the counterparty as below investment grade; however, due to favorable information on other credit quality indicators, the Registrants have determined the risk level to be similar to that of an investment grade counterparty. Internal grade 2 includes financing receivables for counterparties with limited credit information and those with a higher risk profile based upon credit quality indicators. Internal grade 3 reflects financing receivables for which the counterparties have the greatest level of risk, including those in bankruptcy status.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following represents the Registrants' financing receivables by year of origination as determined by the date the original agreement was executed, classified by internal grade of credit risk, including current year-to-date gross write-offs, if any. The related credit quality indicators and risk ratings utilized to develop the internal grades have been updated through December 31, 2025.


	DTE Energy								DTE Electric(a)
	Year of Origination
	2025		2024		2023 and prior		Total		2025 and prior
	(In millions)
Notes receivable
Internal grade 1	$	247	$	4	$	27	$	278	$	274
Internal grade 2	4		923		250		1,177		—

Total notes receivable(b)	$	251	$	927	$	277	$	1,455	$	274


Net investment in leases
Internal grade 1	$	—	$	—	$	34	$	34	$	—
Internal grade 2	—		2		—		2		—
Total net investment in leases(b)	$	—	$	2	$	34	$	36	$	—

(a)For DTE Electric, $247 million is included in Internal grade 1 with a 2025 year of origination.

(b)For DTE Energy, the current portion is included in Current Assets — Other on the Consolidated Statements of Financial Position. For DTE Electric, the amounts are included in Other Assets — Other on the Consolidated Statements of Financial Position.

The allowance for doubtful accounts on accounts receivable for the utility entities is generally calculated using an aging approach that utilizes rates developed in reserve studies. DTE Electric and DTE Gas establish an allowance for uncollectible accounts based on historical losses and management's assessment of existing and future economic conditions, customer trends and other factors. Customer accounts are generally considered delinquent if the amount billed is not received by the due date, which is typically in 21 days, however, factors such as assistance programs may delay aggressive action. DTE Electric and DTE Gas generally assess late payment fees on trade receivables based on past-due terms with customers. Customer accounts are written off when collection efforts have been exhausted. The time period for write-off is 150 days after service has been terminated.

The customer allowance for doubtful accounts for non-utility businesses and other receivables for both utility and non-utility businesses is generally calculated based on specific review of probable future collections based on receivable balances generally in excess of 30 days. Existing and future economic conditions, customer trends and other factors are also considered. Receivables are written off on a specific identification basis and determined based upon the specific circumstances of the associated receivable.

Notes receivable for DTE Energy are primarily comprised of loans, MISO deposits, and finance lease receivables that are included in Notes Receivable and Other current assets on DTE Energy's Consolidated Statements of Financial Position. Notes receivable for DTE Electric are primarily comprised of MISO deposits and loans that are included in current Notes receivable and Other long-term assets on DTE Electric's Consolidated Statements of Financial Position.

The Registrants establish an allowance for credit loss for principal and interest amounts due that are estimated to be uncollectible in accordance with the contractual terms of the note receivable. In determining the allowance for credit losses for notes receivable, the Registrants consider the historical payment experience and other factors that are expected to have a specific impact on the counterparty's ability to pay including existing and future economic conditions. Notes receivable are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. If amounts are no longer probable of collection, the Registrants may consider the note receivable impaired, adjust the allowance, and cease accruing interest (nonaccrual status).

Cash payments received on nonaccrual status notes receivable, that do not bring the account contractually current, are first applied to the contractually owed past due interest, with any remainder applied to principal. Accrual of interest is generally resumed when the note receivable becomes contractually current.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following tables present a roll-forward of the activity for the Registrants' financing receivables credit loss reserves:


	DTE Energy				DTE Electric
	Trade accounts receivable		Other receivables(a)			Total		Trade and other accounts receivable
	(In millions)
Balance at December 31, 2022	$	78	$	1		$	79	$	49
Current period provision	52		—			52		36

Write-offs charged against allowance	(112)		—			(112)		(72)
Recoveries of amounts previously written off	44		—			44		28
Balance at December 31, 2023	$	62	$	1		$	63	$	41
Current period provision	74		2			76		49

Write-offs charged against allowance	(108)		—			(108)		(70)
Recoveries of amounts previously written off	41		—			41		26
Balance at December 31, 2024	$	69	$	3		$	72	$	46
Current period provision	69		—			69		44

Write-offs charged against allowance	(116)		—			(116)		(74)
Recoveries of amounts previously written off	37		—			37		25
Balance at December 31, 2025	$	59	$	3		$	62	$	41

(a)Other receivables includes reserves on notes receivable and Accounts receivable — Other.

Uncollectible expense for the Registrants is primarily comprised of the current period provision for allowance for doubtful accounts and is summarized as follows:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
DTE Energy	$	70	$	74	$	55
DTE Electric	$	45	$	50	$	38

There are no material amounts of past due financing receivables for the Registrants as of December 31, 2025.

Inventories

Inventory related to utility and non-utility operations is valued at the lower of cost or net realizable value, where cost is generally valued using average cost. Inventory primarily includes fuel, gas, materials, and supplies. Other inventories include RECs, emission allowances, and other environmental products primarily in the Energy Trading segment.

DTE Gas' natural gas inventory includes $43 million and $69 million as of December 31, 2025 and 2024, respectively, that is determined using the last-in, first-out (LIFO) method. The replacement cost of gas in inventory exceeded the LIFO cost by $147 million and $81 million at December 31, 2025 and 2024, respectively.

Property, Retirement and Maintenance, and Depreciation and Amortization

Property is stated at cost and includes construction-related labor, materials, overheads, and AFUDC for utility property. The cost of utility properties retired is charged to accumulated depreciation. Expenditures for maintenance and repairs are charged to expense when incurred.

Utility property at DTE Electric and DTE Gas is depreciated over its estimated useful life using straight-line rates approved by the MPSC. DTE Energy's non-utility property is depreciated over its estimated useful life using the straight-line method. Depreciation and amortization expense also includes the amortization of certain regulatory assets and liabilities for the Registrants.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The cost of nuclear fuel is capitalized. The amortization of nuclear fuel is included within Fuel, purchased power, and gas — utility in the DTE Energy Consolidated Statements of Operations, and Fuel and purchased power in the DTE Electric Consolidated Statements of Operations, and is recorded using the units-of-production method.

See Note 6 to the Consolidated Financial Statements, "Property, Plant, and Equipment."

Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of the asset exceeds the expected undiscounted future cash flows generated by the asset, an impairment loss is recognized resulting in the asset being written down to its estimated fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell.

Goodwill

DTE Energy has goodwill resulting from business combinations. For each reporting unit, DTE Energy performs an impairment test annually or whenever events or circumstances indicate that the value of goodwill may be impaired. For the years ended December 31, 2025 and 2024, there were no impairments resulting from these tests and there were no other changes in the carrying amount of goodwill.

Intangible Assets

The Registrants have certain Intangible assets as shown below:


		December 31, 2025						December 31, 2024
	Useful Lives	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
		(In millions)
Intangible assets subject to amortization

Contract intangibles	5 to 39 years	$	306	$	(137)	$	169	$	246	$	(119)	$	127


Carbon offsets		16		—		16		14		—		14
Renewable energy credits		—		—		—		1		—		1


Other		3		—		3		2		—		2
Intangible assets not subject to amortization(a)		19		—		19		17		—		17

DTE Energy Long-term intangible assets		$	325	$	(137)	$	188	$	263	$	(119)	$	144

(a)Amounts are charged to expense, using average cost, as they are consumed in the operation of the business. DTE Electric intangible assets include the Renewable energy credits above, which are included in Other Assets — Other on the DTE Electric Consolidated Statements of Financial Position.

The following table summarizes DTE Energy's estimated contract intangible amortization expense expected to be recognized during each year through 2030:


	2026		2027		2028		2029		2030
	(In millions)
Estimated amortization expense	$	24	$	24	$	24	$	24	$	22

DTE Energy amortizes contract intangible assets on a straight-line basis over the expected period of benefit. DTE Energy's Intangible assets amortization expense was $18 million, $16 million, and $15 million in 2025, 2024, and 2023, respectively.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Cloud Computing Arrangements

The Registrants capitalize implementation costs incurred in a cloud computing arrangement that is a service contract consistent with capitalized implementation costs incurred to develop or obtain internal-use software. Capitalized costs are recorded in Other noncurrent assets on the Consolidated Statements of Financial Position and amortization of the costs is reflected in Operation and maintenance within the Consolidated Statements of Operations. Costs are amortized on a straight-line basis over the life of the contract. Contracts primarily involve the implementation or upgrade of cloud-based solutions for generation and distribution operations and customer service support.

The following balances for cloud computing costs relate to DTE Energy:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Amortization expense of capitalized cloud computing costs	$	13	$	12	$	10
Gross value of capitalized cloud computing costs	$	94	$	64
Accumulated amortization of capitalized cloud computing costs	$	40	$	27

The following balances for cloud computing costs relate to DTE Electric:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Amortization expense of capitalized cloud computing costs	$	10	$	10	$	8
Gross value of capitalized cloud computing costs	$	69	$	51
Accumulated amortization of capitalized cloud computing costs	$	32	$	22

Excise and Sales Taxes

The Registrants record the billing of excise and sales taxes as a receivable with an offsetting payable to the applicable taxing authority, with no net impact on the Registrants’ Consolidated Statements of Operations.

Deferred Debt Costs

The costs related to the issuance of long-term debt are deferred and amortized over the life of each debt issue. The deferred amounts are included as a direct deduction from the carrying amount of each debt issue in Mortgage bonds, notes, and other and Securitization bonds on the Registrants' Consolidated Statements of Financial Position and in Junior subordinated debentures on DTE Energy's Consolidated Statements of Financial Position. In accordance with MPSC regulations applicable to DTE Energy’s electric and gas utilities, the unamortized discount, premium, and expense related to utility debt redeemed with a refinancing are amortized over the life of the replacement issue. Discounts, premiums, and expense on early redemptions of debt associated with DTE Energy's non-utility operations are charged to earnings.

Investments in Debt and Equity Securities

The Registrants generally record investments in debt and equity securities at market value with unrealized gains or losses included in earnings. Changes in the fair value of Fermi 2 nuclear decommissioning investments are recorded as adjustments to Regulatory assets or liabilities, due to a recovery mechanism from customers. The Registrants' equity investments are reviewed for impairment each reporting period. If the assessment indicates that an impairment exists, a loss is recognized resulting in the equity investment being written down to its estimated fair value. See Note 12 of the Consolidated Financial Statements, "Fair Value."

DTE Energy Foundation

DTE Energy made charitable contributions to the DTE Energy Foundation of $20 million and $10 million for the years ended December 31, 2025 and 2024, respectively. DTE Energy made no such contribution for the year ended December 31, 2023. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is to contribute to and assist charitable organizations.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Other Accounting Policies

See the following notes for other accounting policies impacting the Registrants’ Consolidated Financial Statements:


Note						Title
5						Revenue
6						Property, Plant, and Equipment
8						Asset Retirement Obligations
9						Regulatory Matters
10						Income Taxes
12						Fair Value
13						Financial and Other Derivative Instruments
17						Leases
20						Retirement Benefits and Trusteed Assets
21						Stock-Based Compensation
22						Segment and Related Information
23						Related Party Transactions

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update require enhanced income tax disclosures, particularly related to a reporting entity's effective tax rate reconciliation and income taxes paid. For the rate reconciliation table, the update requires additional categories of information about federal, state, and foreign taxes and details about significant reconciling items, subject to a quantitative threshold. Income taxes paid must be similarly disaggregated by federal, state, and foreign based on a quantitative threshold. The Registrants adopted the ASU effective January 1, 2025 using the retrospective approach, with no impact on the Registrants' financial position or results of operations. Additional required disclosures have been included in Note 10 to the Consolidated Financial Statements, "Income Taxes."

Recently Issued Pronouncements

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, as amended. The amendments in this update require disaggregated disclosure of income statement expense captions into specified categories in disclosures within the footnotes to the financial statements. The ASU is effective for the Registrants for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027. The guidance may be applied on a prospective or retrospective basis. Early adoption is permitted. The Registrants will apply the guidance upon the effective date.

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The ASU is effective for the Registrants for annual and interim periods beginning after December 15, 2025. The guidance should be applied on a prospective basis. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update modernize the accounting guidance for the costs to develop software for internal use. The amendments remove all references to a sequential software development method (referred to as "project stages") throughout ASC 350-40 and clarifies the threshold entities should apply to begin capitalizing eligible costs. The ASU is effective for the Registrants for annual and interim periods beginning after December 15, 2027. The guidance may be applied on a prospective, retrospective, or modified transition basis. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

NOTE 4 — ACQUISITION

Electric Segment Acquisition

Effective August 14, 2025, DTE Sustainable Generation closed on the purchase of a 123 MW cogeneration facility, located in Michigan, from Osaka Gas USA Corporation. The acquisition adds generating capacity to DTE Energy's portfolio. Direct transaction costs, primarily related to advisory fees, were immaterial and were included in Operation and maintenance in DTE Energy's Consolidated Statements of Operations for the period incurred. The fair value of consideration provided for the acquisition was approximately $216 million, including working capital adjustments, which was paid in cash.

The acquisition was accounted for using the acquisition method of accounting for business combinations. Accordingly, the cost was allocated to the underlying net assets based on their respective fair values as shown below:


	(In millions)
Cash	$	6
Contract intangibles	57
Property, plant, and equipment, net	135
Working capital, other assets and liabilities	18
Total	$	216

The intangible assets recorded pertain to existing customer contracts and were estimated by applying the income approach, based on discounted projected cash flows attributable to the existing agreements. The contract intangible assets are amortized on a straight-line basis with remaining useful lives of 5 years in conjunction with the associated contracts' remaining terms. The pro forma financial information has not been presented for DTE Energy because the effects of the acquisition were not material to DTE Energy’s Consolidated Statements of Operations.

The acquired project constitutes non-utility operations and related revenues are classified accordingly as Operating Revenues — Non-utility operations within DTE Energy's Consolidated Statements of Operations and the Electric segment Results of Operations. Refer to Note 22 to the Consolidated Financial Statements, "Segment and Related Information."

NOTE 5 — REVENUE

Significant Accounting Policy

Revenue is measured based upon the consideration specified in a contract with a customer at the time when performance obligations are satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service or a series of distinct goods or services to the customer. The Registrants recognize revenue when performance obligations are satisfied by transferring control over a product or service to a customer. The Registrants have determined control to be transferred when the product is delivered, or the service is provided to the customer.

Rates for DTE Electric and DTE Gas include provisions to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are included in Regulatory assets or liabilities on the Registrants' Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors.

For discussion of derivative contracts, see Note 13 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment for DTE Energy:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Electric(a)
Residential	$	3,144	$	3,045	$	2,847
Commercial	2,195		2,263		2,114
Industrial	652		715		732
Other(b)	944		270		125
Total Electric operating revenues	$	6,935	$	6,293	$	5,818

Gas
Gas sales	$	1,521	$	1,307	$	1,324
End User Transportation	255		246		250
Intermediate Transportation	87		83		85
Other(b)	189		162		89
Total Gas operating revenues	$	2,052	$	1,798	$	1,748

Other segment operating revenues
DTE Vantage	$	696	$	753	$	809
Energy Trading	$	6,477	$	3,843	$	4,612

(a)Revenues generally represent those of DTE Electric, except $50 million, $16 million, and $14 million of Other revenues related to DTE Sustainable Generation for the years ended December 31, 2025, 2024, and 2023, respectively.

(b)Includes revenue adjustments related to various regulatory mechanisms, including the PSCR at the Electric segment and GCR at the Gas segment, and interconnection sales in the Electric segment. Revenues related to these mechanisms may vary based on changes in the cost of fuel, purchased power, and gas.

Revenues included the following which were outside the scope of Topic 606:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Electric — Alternative Revenue Programs	$	48	$	43	$	36
Electric — Other revenues	$	23	$	25	$	22
Gas — Alternative Revenue Programs	$	8	$	21	$	16
Gas — Other revenues	$	12	$	11	$	8
DTE Vantage — Leases	$	61	$	60	$	59
Energy Trading — Derivatives	$	4,571	$	2,540	$	3,436

Nature of Goods and Services

The following is a description of principal activities, separated by reportable segments, from which DTE Energy generates revenue. For more detailed information about reportable segments, see Note 22 to the Consolidated Financial Statements, “Segment and Related Information.”

The Registrants have contracts with customers which may contain more than one performance obligation. When more than one performance obligation exists in a contract, the consideration under the contract is allocated to the performance obligations based on the relative standalone selling price. DTE Energy generally determines standalone selling prices based on the prices charged to customers or the use of the adjusted market assessment approach. The adjusted market assessment approach involves the evaluation of the market in which DTE Energy sells goods or services and estimating the price that a customer in that market would be willing to pay.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Under Topic 606, when a customer simultaneously receives and consumes the product or service provided, revenue is considered to be recognized over time. Alternatively, if it is determined that the criteria for recognition of revenue over time is not met, the revenue is considered to be recognized at a point in time.

Electric segment

The Electric segment consists principally of DTE Electric. Electric revenues are primarily comprised of the supply and delivery of electricity, related capacity, and RECs. Revenues are primarily associated with cancellable contracts, with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. The Registrants have determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined utilizing approved tariff rates and estimated meter volumes. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class are known. Revenues are typically subject to tariff rates based upon customer class and type of service and are billed and received monthly. Tariff rates are determined by the MPSC on a per unit or monthly basis.

Gas segment

The Gas segment consists principally of DTE Gas. Gas revenues are primarily comprised of the supply and delivery of natural gas, and other services including storage, transportation, and appliance maintenance. Revenues are primarily associated with cancellable contracts, with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined using both estimated meter volumes and estimated usage based upon the number of unbilled days and historical temperatures. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class and service type are known. Revenues are typically subject to tariff rates or other rates subject to regulatory oversight and are billed and received monthly. Tariff rates are determined by the MPSC on a per unit or monthly basis.

DTE Vantage segment

The DTE Vantage segment revenues include contracts accounted for as leases which are outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

Revenues at DTE Vantage, within the scope of Topic 606, generally consist of sales of blast furnace coke, renewable natural gas and related credits, electricity, equipment maintenance services, and other energy related products and services. Revenues for the sale of blast furnace coke, including estimated unbilled amounts, are recognized at a point in time when the product is delivered, which represents the transfer of control to the customer. Other revenues are generally recognized over time based upon volumes delivered or services provided, or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Market based pricing structures exist in such contracts including adjustments for consumer price or other indices. Consideration may consist of both fixed and variable components. Generally, uncertainties in the variable consideration components are resolved, and revenues are known at the time of recognition. Billing terms vary and are generally monthly with payment terms typically within 30 days following billing.

Energy Trading segment

The Energy Trading segment revenues consist primarily of derivative contracts outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

Revenues, including estimated unbilled amounts, within the scope of Topic 606 arising from the sale of natural gas, electricity, power capacity, and other energy related products are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Revenues are known at the time of recognition. Payment for the aforementioned revenues is generally due from customers in the month following delivery.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Revenues associated with RECs and other environmental products are recognized at a point in time when control is transferred to the customer which is deemed to be when these products are entered for transfer to the customer in the applicable tracking system. Revenues associated with RECs under a wholesale full requirements power contract are deferred until control has been transferred. The deferred revenues represent a contract liability for which payment has been received and the amounts have been estimated using the adjusted market assessment approach. With the exception of RECs, generally all other performance obligations associated with wholesale full requirements power contracts are satisfied over time in conjunction with the delivery of power. At the time power is delivered, DTE Energy may not have control over the RECs as the RECs are not self-generated and may not yet have been procured resulting in deferred revenues.

Deferred Revenue

The following is a summary of deferred revenue activity for DTE Energy:


	Year Ended December 31,
	2025		2024
	(In millions)
Beginning Balance, January 1	$	138	$	106
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	166		132
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(134)		(100)
Ending Balance, December 31	$	170	$	138

Deferred revenues are included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position. Deferred revenues generally represent amounts paid by or receivables from customers for which the associated performance obligation has not yet been satisfied. Deferred revenues include amounts associated with REC performance obligations under certain wholesale full requirements power contracts. Deferred revenues related to RECs are recognized as revenue when control of the RECs has transferred. Other performance obligations associated with deferred revenues include providing products and services related to customer prepayments. Deferred revenues associated with these products and services are recognized when control has transferred to the customer.

The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:


	DTE Energy
	(In millions)
2026	$	169
2027	1
2028	—
2029	—
2030	—
2031 and thereafter	—
	$	170

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under Topic 606, the Registrants did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which revenue is recognized at the amount to which the Registrants have the right to invoice for goods provided and services performed, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.

Such contracts consist of varying types of performance obligations across the segments, including the supply and delivery of energy related products and services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related consideration under the contract is variable at inception of the contract. Contract lengths vary from cancellable to multi-year.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:


	DTE Energy		DTE Electric
	(In millions)
2026	$	189	$	1
2027	168		—
2028	110		—
2029	91		—
2030	81		—
2031 and thereafter	292		—
	$	931	$	1

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

NOTE 6 — PROPERTY, PLANT, AND EQUIPMENT

The following is a summary of Property, plant, and equipment by classification as of December 31:


	2025		2024
Property, plant, and equipment	(In millions)
DTE Electric
Distribution	$	16,316	$	14,995
Dispatchable generation	8,647		8,428
Renewable generation	5,102		3,933
Other	3,742		3,445
Total DTE Electric	33,807		30,801
DTE Gas
Distribution	6,826		6,334
Transmission	1,267		1,212
Storage	589		586
Other	530		500
Total DTE Gas	9,212		8,632
DTE Vantage	1,191		1,135
Other	413		272
Total DTE Energy	$	44,623	$	40,840
Accumulated depreciation and amortization
DTE Electric
Distribution	$	(3,729)	$	(3,513)
Dispatchable generation	(2,584)		(2,146)
Renewable generation	(760)		(615)
Other	(1,166)		(1,130)
Total DTE Electric	(8,239)		(7,404)
DTE Gas
Distribution	(1,413)		(1,319)
Transmission	(291)		(278)
Storage	(140)		(138)
Other	(228)		(210)
Total DTE Gas	(2,072)		(1,945)
DTE Vantage	(564)		(520)
Other	(95)		(78)
Total DTE Energy	$	(10,970)	$	(9,947)
Net DTE Energy Property, plant, and equipment	$	33,653	$	30,893
Net DTE Electric Property, plant, and equipment	$	25,568	$	23,397

AFUDC and Capitalized Interest

AFUDC represents the cost of financing construction projects for regulated businesses, including the estimated cost of debt and authorized return on equity. The debt component is recorded as a reduction to Interest expense and the equity component is recorded as Other income on the Registrants' Consolidated Statements of Operations. Non-regulated businesses record capitalized interest as a reduction to Interest expense.

The AFUDC and capitalized interest rates were as follows for the years ended December 31:


	2025		2024		2023
DTE Electric AFUDC	6.01	%	5.56	%	5.53	%
DTE Gas AFUDC	5.80	%	5.45	%	5.41	%
Non-regulated businesses capitalized interest	4.50	%	4.25	%	3.00	%

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following is a summary of AFUDC and interest capitalized for the years ended December 31:


	2025		2024		2023
DTE Energy	(In millions)
Allowance for debt funds used during construction and interest capitalized	$	47	$	36	$	20
Allowance for equity funds used during construction	105		86		42
Total	$	152	$	122	$	62


	2025		2024		2023
DTE Electric	(In millions)
Allowance for debt funds used during construction	$	45	$	34	$	15
Allowance for equity funds used during construction	103		84		40
Total	$	148	$	118	$	55

Depreciation and Amortization

The composite depreciation rate for DTE Electric was approximately 3.6% in 2025, 4.2% in 2024, and 4.4% in 2023. The composite depreciation rate for DTE Gas was 2.8% in 2025 and 2.9% in 2024 and 2023. The average estimated useful life for each major class of utility Property, plant, and equipment as of December 31, 2025 follows:


	Estimated Useful Lives in Years
Utility	Distribution	Generation	Transmission	Storage
DTE Electric	38	32	N/A	N/A
DTE Gas	55	N/A	67	60

The estimated useful lives for DTE Electric's Other utility assets range from 3 to 45 years, while the estimated useful lives for DTE Gas' Other utility assets range from 3 to 39 years. The estimated useful lives for major classes of DTE Energy's non-utility assets and facilities range from 3 to 50 years.

The following is a summary of Depreciation and amortization expense for DTE Energy:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Property, plant, and equipment	$	1,265	$	1,316	$	1,239
Regulatory assets and liabilities	550		394		344
Intangible assets	18		16		15
Other	8		6		8
	$	1,841	$	1,732	$	1,606

The following is a summary of Depreciation and amortization expense for DTE Electric:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Property, plant, and equipment	$	1,039	$	1,089	$	1,029
Regulatory assets and liabilities	486		338		292

Other	5		5		5
	$	1,530	$	1,432	$	1,326

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Capitalized Software

Capitalized software costs are classified as Property, plant, and equipment and the related amortization is included in Accumulated depreciation and amortization on the Registrants' Consolidated Statements of Financial Position. The Registrants capitalize the costs associated with computer software developed or obtained for use in their businesses. The Registrants amortize capitalized software costs on a straight-line basis over the expected period of benefit, ranging from 3 to 15 years for both DTE Energy and DTE Electric.

The following balances for capitalized software relate to DTE Energy:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Amortization expense of capitalized software	$	164	$	192	$	189
Gross carrying value of capitalized software	$	1,211	$	1,005
Accumulated amortization of capitalized software	$	474	$	476

The following balances for capitalized software relate to DTE Electric:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Amortization expense of capitalized software	$	146	$	175	$	172
Gross carrying value of capitalized software	$	1,084	$	910
Accumulated amortization of capitalized software	$	399	$	414

NOTE 7 — JOINTLY-OWNED UTILITY PLANT

DTE Electric has joint ownership interest in two power plants, Belle River and Ludington Hydroelectric Pumped Storage. DTE Electric’s share of direct expenses of the jointly-owned plants are included in Fuel, purchased power, and gas — utility and Operation and maintenance expenses in the DTE Energy Consolidated Statements of Operations and Fuel and purchased power— utility and Operation and maintenance expenses in the DTE Electric Consolidated Statements of Operations.

DTE Electric's ownership information of the two utility plants as of December 31, 2025 was as follows:


	Belle River		Ludington Hydroelectric Pumped Storage
In-service date	1984-1985		1973
Total plant capacity	1,270 MW		2,290 MW
Ownership interest	81%		49%
Investment in Property, plant, and equipment (in millions)	$	1,961	$	676
Accumulated depreciation (in millions)	$	1,198	$	171

Belle River

The Michigan Public Power Agency (MPPA) has ownership interests in Belle River Unit No. 1 and other related facilities. The MPPA is entitled to 19% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance, and capital improvement costs.

Ludington Hydroelectric Pumped Storage

Consumers Energy Company has an ownership interest in the Ludington Hydroelectric Pumped Storage Plant. Consumers Energy is entitled to 51% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance, and capital improvement costs.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

For discussion of the ongoing contract dispute related to the Ludington Plant, see Note 18 to the Consolidated Financial Statements, "Commitments and Contingencies."

NOTE 8 — ASSET RETIREMENT OBLIGATIONS

DTE Electric has a legal retirement obligation for the decommissioning costs for its Fermi 1 and Fermi 2 nuclear plants, dismantlement of facilities located on leased property, and various other operations. DTE Electric has conditional retirement obligations for asbestos and PCB removal at certain of its power plants and various distribution equipment. DTE Gas has conditional retirement obligations for gas pipelines, certain service centers, and compressor and gate stations. The Registrants recognize such obligations as liabilities at fair market value when they are incurred, which generally is at the time the associated assets are placed in service. Fair value is measured using expected future cash outflows discounted at the Registrants' credit-adjusted risk-free rate. For its utility operations, the Registrants recognize in the Consolidated Statements of Operations removal costs in accordance with regulatory treatment. Any differences between costs recognized related to asset retirement and those reflected in rates are recognized as either a Regulatory asset or liability on the Consolidated Statements of Financial Position.

If a reasonable estimate of fair value cannot be made in the period in which the retirement obligation is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. Natural gas storage system and certain other distribution assets for DTE Gas and substations, manholes, and certain other distribution assets for DTE Electric have an indeterminate life. Therefore, no liability has been recorded for these assets.

Changes to Asset retirement obligations for the years ended December 31, 2025, 2024, and 2023 were as follows:


	2025		2024		2023
DTE Energy	(In millions)
Asset retirement obligations at January 1	$	4,031	$	3,556	$	3,460
Accretion	239		211		198
Liabilities incurred	32		324		7
Liabilities settled	(10)		(14)		(96)
Revision in estimated cash flows(a)	177		(46)		(13)
Asset retirement obligations at December 31	$	4,469	$	4,031	$	3,556

(a)Revision in estimated cash flows was primarily due to the impact of the CCR regulations on DTE Electric's coal ash storage facility asset retirement obligations, as well as revision of estimated cash flows related to DTE Electric's Fermi 1 obligations. Refer to Note 18 to the Consolidated Financial Statements, "Commitments and Contingencies," for additional information regarding the CCR regulations.


	2025		2024		2023
DTE Electric	(In millions)
Asset retirement obligations at January 1	$	3,791	$	3,326	$	3,221
Accretion	226		199		185
Liabilities incurred	32		323		4
Liabilities settled	(9)		(11)		(81)
Revision in estimated cash flows(a)	177		(46)		(3)
Asset retirement obligations at December 31	$	4,217	$	3,791	$	3,326

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Approximately $3.1 billion of the Asset retirement obligations represent nuclear decommissioning liabilities that are funded through a surcharge to electric customers over the life of the Fermi 2 nuclear plant. The NRC has jurisdiction over the decommissioning of nuclear power plants and requires minimum decommissioning funding based upon a formula. The MPSC and FERC regulate the recovery of costs of decommissioning nuclear power plants and both require the use of external trust funds to finance the decommissioning of Fermi 2. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste. DTE Electric believes the MPSC collections will be adequate to fund the estimated cost of decommissioning. The decommissioning assets, anticipated earnings thereon, and future revenues from decommissioning collections will be used to decommission Fermi 2. DTE Electric expects the liabilities to be reduced to zero at the conclusion of the decommissioning activities. If amounts remain in the trust funds for Fermi 2 following the completion of the decommissioning activities, those amounts will be disbursed based on rulings by the MPSC and FERC.

A portion of the funds recovered through the Fermi 2 decommissioning surcharge and deposited in external trust accounts is designated for the removal of non-radioactive assets and returning the site to greenfield. This removal and greenfielding is not considered a legal liability. Therefore, it is not included in the asset retirement obligation, but is reflected as the Nuclear decommissioning liability. The decommissioning of Fermi 1 is funded by DTE Electric. Contributions to the Fermi 1 trust are discretionary. For additional discussion of Nuclear decommissioning trust fund assets, see Note 12 to the Consolidated Financial Statements, "Fair Value."

In the third quarter of 2025, DTE Electric initiated preparatory steps to facilitate the license termination of the Fermi 1 facility, as required by the NRC. The NRC mandates license termination by 2032. Following management's reassessment of project timing and estimated cash flows, the Registrants recorded an additional $47 million accrual related to the decommissioning of Fermi 1. The expense is reflected in Asset (gains) losses and impairments, net in the Registrants' Consolidated Statements of Operations. Key risks to successful project completion remain, primarily due to uncertainties around contamination levels in piping and volume of waste material. The estimate may be revised as more site-specific information becomes available.

NOTE 9 — REGULATORY MATTERS

Regulation

DTE Electric and DTE Gas are subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs, including the costs of generating facilities and regulatory assets, conditions of service, accounting, and operating-related matters. The MPSC has authorized a return on equity of 9.9% for DTE Electric and 9.8% for DTE Gas, subject to changes from any pending or future rate case filings. DTE Electric is also regulated by the FERC with respect to financing authorization, wholesale electric market activities, certain affiliate transactions, the acquisition and disposition of certain generation and other facilities, and, in conjunction with the NERC, compliance with mandatory reliability standards. Regulation results in differences in the application of generally accepted accounting principles between regulated and non-regulated businesses.

The Registrants are unable to predict the outcome of any unresolved regulatory matters discussed herein. Resolution of these matters is dependent upon future MPSC and FERC orders and appeals, which may materially impact the Consolidated Financial Statements of the Registrants.

Regulatory Assets and Liabilities

DTE Electric and DTE Gas are required to record Regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of providing regulated services and be charged to and collected from customers. Future regulatory changes could result in the discontinuance of this accounting treatment for Regulatory assets and liabilities for some or all of the Registrants' businesses and may require the write-off of the portion of any Regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts support the continued use of Regulatory assets and liabilities and that all Regulatory assets and liabilities are recoverable or refundable in the current regulatory environment.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following are balances and a brief description of the Registrants' Regulatory assets and liabilities at December 31:


	DTE Energy				DTE Electric
	2025		2024		2025		2024
Assets	(In millions)
Recoverable undepreciated costs on retiring plants	$	3,146	$	2,986	$	3,146	$	2,986
Recoverable pension and other postretirement costs
Pension	1,281		1,315		949		971
Other postretirement costs	90		91		—		—
Fermi 2 asset retirement obligation	895		951		895		951
Removal costs asset	700		501		700		501
Enhanced tree trimming program deferred costs	340		211		340		211
Renewable ITC offset	207		89		207		89
Recoverable income taxes related to AFUDC equity	148		116		139		107
Energy Waste Reduction incentive	115		102		94		82
Accrued PSCR/GCR revenue	112		—		111		—
Recoverable Michigan income taxes	107		119		89		99
Ludington contract dispute costs	58		31		58		31
Energy Waste Reduction	57		36		52		29
Deferred environmental costs	39		43		—		—
Unamortized loss on reacquired debt	33		38		26		29
Customer360 deferred costs	29		34		29		34





Other	193		158		144		106
	7,550		6,821		6,979		6,226
Less amount included in Current Assets	(170)		(50)		(158)		(39)
	$	7,380	$	6,771	$	6,821	$	6,187

Securitized regulatory assets	$	619	$	690	$	619	$	690


	DTE Energy				DTE Electric
	2025		2024		2025		2024
Liabilities	(In millions)
Refundable federal income taxes	$	1,646	$	1,733	$	1,318	$	1,389
Removal costs liability	511		506		—		—
Non-service pension and other postretirement costs	271		255		103		94
Negative other postretirement offset	205		214		133		139
Renewable energy	196		90		196		90
Accrued PSCR/GCR refund	43		136		—		111










Other	116		103		111		86
	2,988		3,037		1,861		1,909
Less amount included in Current Liabilities	(107)		(181)		(63)		(156)
	$	2,881	$	2,856	$	1,798	$	1,753

As noted below, certain Regulatory assets for which costs have been incurred have been included (or are expected to be included, for costs incurred subsequent to the most recently approved rate case) in DTE Electric's or DTE Gas' rate base, thereby providing a return on invested costs (except as noted). Certain other Regulatory assets are not included in rate base but accrue recoverable carrying charges until surcharges to collect the assets are billed. Certain Regulatory assets do not result from cash expenditures and therefore do not represent investments included in rate base or have offsetting liabilities that reduce rate base.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

ASSETS

Recoverable undepreciated costs on retiring plants — Undepreciated costs at the Belle River and Monroe power plants that will be retired in future periods. These costs were approved for recovery as a result of DTE Electric's Integrated Resource Plan settlement agreement in 2023. One unit of the Belle River power plant was retired in 2025, with the remaining unit expected to be retired in 2026. The Monroe power plant will be retired in 2028 and 2032. As prescribed by the Integrated Resource Plan, DTE Electric will recover $1.05 billion of these plant costs through future securitizations. The remaining amount is being recovered through a regulatory asset with a return on equity of 9.0% and is being amortized over a 15-year period beginning in February 2025.
Recoverable pension and other postretirement costs — Accounting standards for pension and other postretirement benefit costs require, among other things, the recognition in Other comprehensive income of the actuarial gains or losses and the prior service costs that arise during the period but are not immediately recognized as components of net periodic benefit costs (credits). DTE Electric and DTE Gas record the impact of actuarial gains or losses and prior service costs as Regulatory assets or Regulatory liabilities since the traditional rate setting process allows for the recovery of pension and other postretirement costs. The asset and liability will reverse as the deferred items are amortized and recognized as components of net periodic benefit costs (credits). Refer to Note 20 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets," for additional information regarding the changes in pension and other postretirement costs for the period and the impact on Regulatory assets.(a)
Fermi 2 asset retirement obligation — Obligation for Fermi 2 decommissioning costs. The asset captures the timing differences between expense recognition and current recovery in rates and will reverse over the remaining life of the related plant.(a)
Removal costs asset — Receivable for the recovery of asset removal expenditures in excess of amounts collected from customers for DTE Electric.
Enhanced tree trimming program deferred costs — The MPSC approved the deferral of costs for a tree trimming surge through 2025, aimed at reducing the number and duration of customer interruptions.
Renewable ITC offset — DTE Electric's accounting policy for ITCs is to use the deferral method where the ITC benefit is deferred and amortized to net income over the book life of the related property. For an ITC that is sold, this regulatory asset is used to adjust net income to reflect the benefit over a period shorter than the book life, as approved by the MPSC.(a)
Recoverable income taxes related to AFUDC equity — Accounting standards for income taxes require recognition of a deferred tax liability for the equity component of AFUDC. A Regulatory asset is required for the future increase in taxes payable related to the equity component of AFUDC that will be recovered from customers through future rates over the remaining life of the related plant.
Energy Waste Reduction incentive — DTE Electric and DTE Gas operate MPSC approved energy waste reduction programs designed to reduce overall energy usage by their customers. The utilities are eligible to earn an incentive by exceeding statutory savings targets. The utilities have consistently exceeded the savings targets and recognize the incentive as a Regulatory asset in the period earned.(a)
Accrued PSCR/GCR revenue — Receivable for the temporary under-recovery of and carrying costs on fuel and purchased power costs incurred by DTE Electric which are recoverable through the PSCR mechanism and temporary under-recovery of and carrying costs on gas costs incurred by DTE Gas which are recoverable through the GCR mechanism.
Recoverable Michigan income taxes — The State of Michigan enacted a corporate income tax resulting in the establishment of state deferred tax liabilities for DTE Energy's utilities. Offsetting Regulatory assets were also recorded as the impacts of the deferred tax liabilities will be reflected in rates as the related taxable temporary differences reverse and flow through current income tax expense.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Ludington contract dispute costs — The MPSC approved the deferral of costs incurred for repairing or replacing defective work performed by a third party related to the overhaul and upgrade of the Ludington Hydroelectric Pumped Storage Plant while the dispute is in litigation. These costs will be offset by any potential future proceeds received related to the litigation. Upon resolution of the dispute, DTE Electric will have the opportunity to seek recovery through the regulatory process for any remaining costs. Refer to the Ludington Plant Contract Dispute section of Note 18 to the Consolidated Financial Statements, “Commitments and Contingencies,” for additional information regarding the complaint and ongoing legal proceedings.
Energy Waste Reduction — Receivable for under-recovery of energy waste reduction costs incurred by DTE Electric and DTE Gas which are recoverable through a surcharge.(a)
Deferred environmental costs — The MPSC approved the deferral of investigation and remediation costs associated with DTE Gas' former MGP sites. Amortization of deferred costs is over a ten-year period beginning in the year after costs were incurred, with recovery (net of any insurance proceeds) through base rate filings.(a)
Unamortized loss on reacquired debt — The unamortized discount, premium, and expense related to debt redeemed with a refinancing are deferred, amortized, and recovered over the life of the replacement issue.
Customer360 deferred costs — The MPSC approved the deferral and amortization of certain costs associated with implementing Customer360, an integrated software application that enables improved interface among customer service, billing, meter reading, credit and collections, device management, account management, and retail access. Amortization of deferred costs over a 15-year amortization period began after the billing system was put into operation during the second quarter of 2017. The deferred costs are recorded as Regulatory Assets at DTE Electric and DTE Gas receives an intercompany charge for their proportionate share of amortization expense.
Securitized regulatory assets — Costs approved for securitization and recovery by the MPSC. Amounts include the undepreciated cost of the River Rouge power plant and tree trim surge costs. Securitization bond surcharges began in 2022 to recover the tree trimming costs over a period not to exceed 5 years and River Rouge costs over a period not to exceed 14 years. Amounts also include the undepreciated costs of the St. Clair and Trenton Channel power plants. Securitization bond surcharges began in 2023 to recover costs over a period not to exceed 15 years.

(a)Regulatory assets not earning a return or accruing carrying charges.

LIABILITIES

Refundable federal income taxes — In December 2017, the TCJA was enacted and reduced the corporate income tax rate, effective January 1, 2018. DTE Electric and DTE Gas remeasured deferred taxes, resulting in a reduction to deferred tax liabilities, to reflect the impact of the TCJA on the cumulative temporary differences expected to reverse after the effective date. Regulatory liabilities were also recorded to offset the impact of the deferred tax remeasurement reflected in rates.
Removal costs liability — The amounts collected from customers to fund future asset removal activities in excess of removal costs incurred for DTE Gas.
Non-service pension and other postretirement costs — Upon adoption of ASU 2017-07 on January 1, 2018, certain non-service pension and other postretirement cost activity is no longer credited to Property, plant, and equipment. Such costs may be recorded to Regulatory liabilities for ratemaking purposes and refunded through credits to amortization expense based on the composite depreciation rate for plant-in-service.
Negative other postretirement offset — DTE Electric and DTE Gas' negative other postretirement costs have historically not been included as a reduction to their authorized rates; therefore, DTE Electric and DTE Gas have accrued a Regulatory liability to eliminate the impact on earnings of the negative other postretirement expense accrual. The Regulatory liabilities may reverse to the extent DTE Electric and DTE Gas' other postretirement expense is positive in future years. As a result of MPSC orders, the Regulatory liability balances as of December 31, 2022 began to be amortized over a 7-year period for both DTE Electric and DTE Gas.
Renewable energy — Amounts collected in excess of renewable energy expenditures, including subscription revenue related to MIGreenPower, DTE Electric's voluntary renewable program providing customers the option to source their energy usage from renewables.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Accrued PSCR/GCR refund — Liability for the temporary over-recovery of and a return on power supply costs and transmission costs incurred by DTE Electric which are recoverable through the PSCR mechanism and temporary over-recovery of and a return on gas costs primarily incurred by DTE Gas which are recoverable through the GCR mechanism.

2022 Electric PSCR Reconciliation

In March 2023, DTE Electric filed its 2022 PSCR Reconciliation that included the under-recovery of approximately $421 million of power supply costs incurred under reasonable and prudent policies and practices. The request was subsequently reduced to $416 million. On February 27, 2025, the MPSC issued an order approving recovery of $387 million of these costs resulting in a disallowance of approximately $33 million, inclusive of interest. The disallowance was included in Operating Revenues – Utility operations and Interest expense on the Consolidated Statements of Operation in the first quarter of 2025.

2025 Electric Rate Case Filing

DTE Electric filed a rate case with the MPSC on April 24, 2025 requesting an increase in base rates of $574 million based on a projected twelve-month period ending December 31, 2026, and an increase in return on equity from 9.9% to 10.75%. The requested increase in base rates was primarily due to capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy. A final MPSC order in this case is expected in February 2026.

2025 Electric Depreciation Case Filing

DTE Electric filed a depreciation case with the MPSC on December 23, 2025 requesting an increase in depreciation rates of $147 million when compared to current depreciation rates for plant in service balances as of December 31, 2023. While there is no required timing for an MPSC order in a depreciation case, updated depreciation rates will be implemented coinciding with an order in the first DTE Electric general rate case filed following an order in this case.

2025 Gas Rate Case Filing

DTE Gas filed a rate case with the MPSC on November 13, 2025 requesting a net increase in base rates of $163 million based on a projected twelve-month period ending September 30, 2027, and an increase in return on equity from 9.8% to 10.25%. The net increase is based on a total revenue deficiency of $238 million, net of the IRM roll-in of $75 million. The requested net increase in base rates was primarily due to continued infrastructure investment and increasing operations and maintenance costs needed to ensure the continued safe and reliable delivery of natural gas to customers. A final MPSC order in this case is expected in September 2026.

NOTE 10 — INCOME TAXES

Income Tax Summary

DTE Energy files a consolidated federal income tax return. DTE Electric is a part of the consolidated federal income tax return of DTE Energy. DTE Energy and its subsidiaries file consolidated and/or separate company income tax returns in various states and localities, including a consolidated return in the State of Michigan. DTE Electric is part of the Michigan consolidated income tax return of DTE Energy. The federal, state and local income tax expense for DTE Electric is determined on an individual company basis with no allocation of tax expenses or benefits from other affiliates of DTE Energy. DTE Electric had federal income tax receivables with DTE Energy of $1 million and $5 million at December 31, 2025 and 2024, respectively. Income tax receivables with DTE Energy are included in Accounts receivable – Affiliates on the DTE Electric Consolidated Statements of Financial Position.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The Registrants' total Income Tax Expense varied from the statutory federal income tax rate for the following reasons:


	Year Ended December 31,
	2025				2024				2023
	(In millions)
DTE Energy	Amount		Percentage		Amount		Percentage		Amount		Percentage

Income tax expense at U.S. Federal Statutory Tax Rate	$	326	21.0	%	$	288	21.0	%	$	329	21.0	%

Tax Credits
Production tax credits	(161)		(10.4)	%	(174)		(12.7)	%	(91)		(5.8)	%
Investment tax credits	(94)		(6.1)	%	(128)		(9.3)	%	(44)		(2.8)	%
Other	(5)		(0.3)	%	(4)		(0.3)	%	(5)		(0.3)	%

Other Adjustments
TCJA regulatory liability amortization	(65)		(4.2)	%	(66)		(4.8)	%	(63)		(4.0)	%

Other	(4)		(0.1)	%	4		0.2	%	—		—	%

Nontaxable or Nondeductible Items
AFUDC equity	(20)		(1.3)	%	(17)		(1.2)	%	(7)		(0.5)	%
Other	6		0.5	%	(3)		(0.3)	%	(4)		(0.2)	%

Changes in Tax Laws or Rates Enacted in the Current Period	16		1.0	%	—		—	%	—		—	%

Changes in Valuation Allowances	7		0.4	%	6		0.5	%	—		—	%

Changes in Prior Year Unrecognized Tax Benefits	—		—	%	—		—	%	(12)		(0.8)	%

Foreign Tax Effects
Canada	1		—	%	1		0.1	%	—		—	%

State and Local Income Taxes, Net of Federal Effect (a)	$	81	5.2	%	$	59	4.3	%	$	66	4.2	%
Income Tax Expense (Benefit) at Effective Tax Rate	$	88	5.7	%	$	(34)	(2.5)	%	$	169	10.8	%

(a)State taxes in Michigan made up the majority (greater than 50 percent) of the tax effect in this category for all years presented. State and local income taxes in 2025 includes $14 million expense due to an Illinois tax law change.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)


	Year Ended December 31,
	2025				2024				2023
	(In millions)
DTE Electric	Amount		Percentage		Amount		Percentage		Amount		Percentage

Income tax expense at U.S. Federal Statutory Tax Rate	$	257	21.0	%	$	218	21.0	%	$	179	21.0	%

Tax Credits
Investment tax credits	(95)		(7.7)	%	(70)		(6.7)	%	(1)		(0.1)	%
Production tax credits	(77)		(6.3)	%	(167)		(16.0)	%	(79)		(9.3)	%
Other	(4)		(0.4)	%	(4)		(0.4)	%	(4)		(0.5)	%

Other Adjustments
TCJA regulatory liability amortization	(53)		(4.4)	%	(55)		(5.3)	%	(53)		(6.2)	%

Other	(1)		(0.1)	%	2		0.2	%	—		—	%

Nontaxable or Nondeductible Items
AFUDC equity	(20)		(1.6)	%	(16)		(1.6)	%	(7)		(0.8)	%
Other	(2)		(0.1)	%	(2)		(0.2)	%	(2)		(0.2)	%



Changes in Prior Year Unrecognized Tax Benefits	—		—	%	—		—	%	(7)		(0.8)	%




Changes in Valuation Allowances	—		—	%	5		0.4	%	—		—	%

State and Local Income Taxes, Net of Federal Effect (a)	$	66	5.4	%	$	57	5.5	%	$	52	6.1	%
Income Tax Expense (Benefit) at Effective Tax Rate	$	71	5.8	%	$	(32)	(3.1)	%	$	78	9.2	%

(a)State taxes in Michigan made up the majority (greater than 50 percent) of the tax effect in this category for all years presented.

Components of the Registrants' Income Taxes Paid were as follows:


	Year Ended December 31,
	2025		2024		2023
DTE Energy	(In millions)
U.S. Federal(a)	$	(266)	$	(230)	$	2

U.S. State and Local
Michigan	(5)		(5)		(10)
Pennsylvania	1		2		2
Other	1		—		1
	(3)		(3)		(7)

Foreign	2		3		—

Total	$	(267)	$	(230)	$	(5)

(a)Includes proceeds on sale of transferrable income tax credits, net of discount, in 2025 and 2024.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)


	Year Ended December 31,
	2025		2024		2023
DTE Electric	(In millions)
U.S. Federal(a)	$	(273)	$	(231)	$	9

U.S. State and Local
Michigan	$	—	$	—	$	6






Total	$	(273)	$	(231)	$	15

(a)Includes proceeds on sale of transferrable income tax credits, net of discount, in 2025 and 2024.

Components of the Registrants' Income Tax Expense were as follows:


	Year Ended December 31,
	2025		2024		2023
DTE Energy	(In millions)
Income (loss) from continuing operations before income tax expense (benefit)
US	$	1,543	$	1,357	$	1,559
Foreign	7		13		7
Total	$	1,550	$	1,370	$	1,566

Income tax expense (benefit) from continuing operations
Current tax expense (benefit)
US federal	$	(269)	$	(229)	$	(10)
US state and local	(3)		(2)		(2)
Foreign	2		3		—
Total current tax expense (benefit)	$	(270)	$	(228)	$	(12)

Deferred tax expense (benefit)
US federal	$	253	$	116	$	103
US state and local	105		77		76
Foreign	—		1		2
Total deferred tax expense (benefit)	$	358	$	194	$	181

Total tax expense (benefit)
US federal	$	(16)	$	(113)	$	93
US state and local	102		75		74
Foreign	2		4		2
Total tax expense (benefit)	$	88	$	(34)	$	169

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)


	Year Ended December 31,
	2025		2024		2023
DTE Electric	(In millions)
Income (loss) from continuing operations before income tax expense (benefit)
US	$	1,223	$	1,040	$	850

Total	$	1,223	$	1,040	$	850

Income tax expense (benefit) from continuing operations
Current tax expense (benefit)
US federal	$	(268)	$	(228)	$	1
US state and local	—		—		(5)

Total current tax expense (benefit)	$	(268)	$	(228)	$	(4)

Deferred tax expense (benefit)
US federal	$	256	$	124	$	19
US state and local	83		72		63

Total deferred tax expense (benefit)	$	339	$	196	$	82

Total tax expense (benefit)
US federal	$	(12)	$	(104)	$	20
US state and local	83		72		58

Total tax expense (benefit)	$	71	$	(32)	$	78

Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts in the Registrants' Consolidated Financial Statements.

The Registrants' deferred tax assets (liabilities) were comprised of the following at December 31:


	DTE Energy				DTE Electric
	2025		2024		2025		2024
	(In millions)
Property, plant, and equipment	$	(3,952)	$	(3,695)	$	(2,947)	$	(2,788)
Regulatory assets and liabilities	(1,412)		(1,272)		(1,636)		(1,492)
Tax credit carryforwards	1,619		1,604		512		583
Pension and benefits	3		55		2		62
Federal net operating loss carryforward	180		190		24		30


State and local net operating loss carryforwards	51		68		27		42
Investments in equity method investees	(25)		(28)		(1)		(1)
Other	182		145		207		176
	(3,354)		(2,933)		(3,812)		(3,388)
Less: Valuation allowance	(46)		(25)		—		(5)
Long-term deferred income tax liabilities	$	(3,400)	$	(2,958)	$	(3,812)	$	(3,393)

Deferred income tax assets	$	2,575	$	2,508	$	1,188	$	1,209
Deferred income tax liabilities	(5,975)		(5,466)		(5,000)		(4,602)
	$	(3,400)	$	(2,958)	$	(3,812)	$	(3,393)

Tax credit carryforwards for DTE Energy include $1.6 billion of general business credits that expire from 2034 through 2047. No valuation allowance is required for the tax credit carryforwards deferred tax asset.

DTE Energy has a pre-tax federal net operating loss carryforward of $856 million as of December 31, 2025 which can be carried forward indefinitely. No valuation allowance is required for the federal net operating loss deferred tax asset.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Energy has state and local deferred tax assets related to net operating loss carryforwards of $51 million and $68 million at December 31, 2025 and 2024, respectively. Most of the state and local net operating loss carryforwards expire from 2026 through 2045 with the remainder being carried forward indefinitely.

DTE Energy has recorded valuation allowances of $46 million and $25 million at December 31, 2025 and 2024, respectively. The valuation allowances include $15 million and $16 million related to the state net operating loss carryforwards noted above and $30 million and $3 million related to charitable contribution carryforwards as of the respective periods ended.

Tax credit carryforwards for DTE Electric include $512 million of general business credits that expire from 2036 through 2047. No valuation allowance is required for the tax credit carryforwards deferred tax asset.

DTE Electric has a pre-tax federal net operating loss carryforward of $112 million as of December 31, 2025 which can be carried forward indefinitely. No valuation allowance is required for the federal net operating loss deferred tax asset.

DTE Electric has $27 million and $42 million in state and local deferred tax assets related to net operating loss carryforwards at December 31, 2025 and 2024, respectively, which will expire from 2030 through 2045. No valuation allowance is required for the state and local net operating loss deferred tax assets.

In assessing the realizability of deferred tax assets, DTE Energy considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

The above tables exclude unamortized ITCs that are shown separately on the Registrants' Consolidated Statements of Financial Position. DTE Energy's policy election is to follow the flow-through method of accounting for ITCs earned from its non-utility businesses and the deferral method of accounting for its regulated utilities due to different economic profiles of the various entities. The flow-through method used by the non-utility businesses recognizes ITCs in earnings when the related assets are placed in service. The ITCs generated by the regulated utilities are deferred and amortized to earnings over the average life of the related property. ITCs generated and sold by the regulated utilities are offset with a regulatory asset to give the benefit to customers over a period shorter than the book life, as approved by the MPSC. Refer to Note 9 to the Consolidated Financial Statements, "Regulatory Matters" for the regulatory asset balance at December 31, 2025.

The benefit from wind PTCs and solar ITCs generated by DTE Electric are provided to customers through the regulatory construct of the renewable energy program and nuclear PTCs generated by DTE Electric are provided to customers through the regulatory construct of the PSCR mechanism.

Beginning in 2024, DTE Electric sold certain PTCs and ITCs detailed below. Tax credit sales are subject to standard indemnifications up to the cash received. Payments under these indemnifications are considered remote. The following table details the Registrants' tax credit sales, net of discount, by year of sale:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Cash received for tax credit sales	$	268	$	231	$	—

On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was enacted into law. As a result of the OBBB, DTE Energy recorded a valuation allowance of $16 million related to their charitable contribution carryforward in the third quarter.

Uncertain Tax Positions

There were no unrecognized tax benefits at the Registrants for the years ended December 31, 2025 or 2024.

The Registrants recognize interest and penalties pertaining to income taxes in Interest expense and Other expenses, respectively, on the Consolidated Statements of Operations. DTE Energy did not recognize any interest expense related to income taxes in 2025 and 2024 and recognized a nominal amount of interest expense related to income taxes in 2023. DTE Electric did not recognize any interest expense related to income taxes in 2025 and 2024 and recognized a nominal amount of interest expense in 2023. There was no accrued interest or penalties pertaining to income taxes for the Registrants at December 31, 2025, 2024, and 2023.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

In 2025, DTE Energy, including DTE Electric, settled a federal tax audit for the 2023 tax year. DTE Energy's federal income tax returns for 2024 and subsequent years remain subject to examination by the IRS. DTE Energy's Michigan Corporate Income Tax returns for the year 2021 and subsequent years remain subject to examination by the State of Michigan. DTE Energy also files tax returns in numerous state and local jurisdictions with varying statutes of limitation.

NOTE 11 — EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy's participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Performance shares do not receive cash dividends; as such, these awards are not considered participating securities. For additional information regarding performance shares, see Note 21 to the Consolidated Financial Statements, "Stock-Based Compensation."

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation for the years ended December 31:


	2025		2024		2023
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	1,462		$	1,404	$	1,397
Less: Allocation of earnings to net restricted stock awards	3		3		3


Net income available to common shareholders — basic	$	1,459	$	1,401	$	1,394

Average number of common shares outstanding — basic	207		207		206



Basic Earnings per Common Share	$	7.04	$	6.78	$	6.77

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	1,462	$	1,404	$	1,397
Less: Allocation of earnings to net restricted stock awards	3		3		3


Net income available to common shareholders — diluted	$	1,459	$	1,401	$	1,394




Average number of common shares outstanding — diluted	207		207		206



Diluted Earnings per Common Share	$	7.03	$	6.77	$	6.76

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

NOTE 12 — FAIR VALUE

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. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. 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, 2025 and 2024. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined as follows:

Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access as of the reporting date.
Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:


	December 31, 2025												December 31, 2024
	Level 1		Level 2		Level 3		Other (a)		Netting (b)		Net Balance		Level 1		Level 2		Level 3		Other (a)		Netting (b)		Net Balance
	(In millions)
Assets
Cash equivalents and Restricted cash(c)	$	176	$	—	$	—	$	—	$	—	$	176	$	11	$	—	$	—	$	—	$	—	$	11
Nuclear decommissioning trusts
Equity securities	987		—		—		201		—		1,188		856		—		—		147		—		1,003
Fixed income securities	133		460		—		133		—		726		124		414		—		112		—		650
Private equity and other	—		—		—		358		—		358		16		—		—		333		—		349
Hedge funds and similar investments	228		17		—		—		—		245		151		16		—		61		—		228
Cash equivalents	35		—		—		—		—		35		26		—		—		—		—		26
Other investments(d)
Equity securities	84		—		—		—		—		84		72		—		—		—		—		72
Fixed income securities	9		2		—		—		—		11		7		—		—		—		—		7
Cash equivalents	38		—		—		—		—		38		29		—		—		—		—		29

Derivative assets
Commodity contracts(e)
Natural gas	207		56		109		—		(235)		137		242		81		105		—		(285)		143
Electricity	127		115		33		—		(194)		81		67		69		51		—		(116)		71
Environmental & Other	—		46		11		—		(46)		11		1		47		10		—		(46)		12

Other contracts	—		3		—		—		—		3		—		21		—		—		—		21
Total derivative assets	334		220		153		—		(475)		232		310		218		166		—		(447)		247
Total	$	2,024	$	699	$	153	$	692	$	(475)	$	3,093	$	1,602	$	648	$	166	$	653	$	(447)	$	2,622

Liabilities
Derivative liabilities
Commodity contracts(e)
Natural gas	$	(196)	$	(51)	$	(82)	$	—	$	227	$	(102)	$	(217)	$	(70)	$	(123)	$	—	$	272	$	(138)
Electricity	(124)		(59)		(52)		—		186		(49)		(71)		(52)		(27)		—		114		(36)
Environmental & Other	(1)		(31)		—		—		32		—		(2)		(39)		(3)		—		44		—

Other contracts	—		(1)		—		—		—		(1)		—		(1)		—		—		—		(1)

Total	$	(321)	$	(142)	$	(134)	$	—	$	445	$	(152)	$	(290)	$	(162)	$	(153)	$	—	$	430	$	(175)
Net Assets (Liabilities) at end of period	$	1,703	$	557	$	19	$	692	$	(30)	$	2,941	$	1,312	$	486	$	13	$	653	$	(17)	$	2,447

Assets
Current	$	426	$	130	$	102	$	—	$	(339)	$	319	$	223	$	170	$	106	$	—	$	(326)	$	173
Noncurrent	1,598		569		51		692		(136)		2,774		1,379		478		60		653		(121)		2,449
Total Assets	$	2,024	$	699	$	153	$	692	$	(475)	$	3,093	$	1,602	$	648	$	166	$	653	$	(447)	$	2,622
Liabilities
Current	$	(240)	$	(106)	$	(67)	$	—	$	327	$	(86)	$	(219)	$	(129)	$	(93)	$	—	$	323	$	(118)
Noncurrent	(81)		(36)		(67)		—		118		(66)		(71)		(33)		(60)		—		107		(57)
Total Liabilities	$	(321)	$	(142)	$	(134)	$	—	$	445	$	(152)	$	(290)	$	(162)	$	(153)	$	—	$	430	$	(175)
Net Assets (Liabilities) at end of period	$	1,703	$	557	$	19	$	692	$	(30)	$	2,941	$	1,312	$	486	$	13	$	653	$	(17)	$	2,447

(a)Amounts represent assets valued at NAV as a practical expedient for fair value.

(b)Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.

(c)Amounts include $10 million and $8 million recorded in Restricted cash on DTE Energy's Consolidated Statements of Financial Position at December 31, 2025 and December 31, 2024, respectively. All other amounts are included in Cash and cash equivalents on DTE Energy's Consolidated Statements of Financial Position.

(d)Excludes cash surrender value of life insurance investments and certain securities classified as held-to-maturity that are recorded at amortized cost and not material to the consolidated financial statements.

(e)For contracts with a clearing agent, DTE Energy nets all activity across commodities. This can result in some individual commodities having a contra balance.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:


	December 31, 2025										December 31, 2024
	Level 1		Level 2		Level 3		Other(a)		Net Balance		Level 1		Level 2		Level 3		Other(a)		Net Balance
	(In millions)
Assets
Cash equivalents and Restricted cash(b)	$	83	$	—	$	—	$	—	$	83	$	8	$	—	$	—	$	—	$	8
Nuclear decommissioning trusts
Equity securities	987		—		—		201		1,188		856		—		—		147		1,003
Fixed income securities	133		460		—		133		726		124		414		—		112		650
Private equity and other	—		—		—		358		358		16		—		—		333		349
Hedge funds and similar investments	228		17		—		—		245		151		16		—		61		228
Cash equivalents	35		—		—		—		35		26		—		—		—		26
Other investments
Equity securities	33		—		—		—		33		26		—		—		—		26
Fixed income securities	—		2		—		—		2		—		—		—		—		—
Cash equivalents	26		—		—		—		26		19		—		—		—		19

Derivative assets — FTRs	—		—		11		—		11		—		—		9		—		9
Total	$	1,525	$	479	$	11	$	692	$	2,707	$	1,226	$	430	$	9	$	653	$	2,318

Assets
Current	$	83	$	—	$	11	$	—	$	94	$	8	$	—	$	9	$	—	$	17
Noncurrent	1,442		479		—		692		2,613		1,218		430		—		653		2,301
Total Assets	$	1,525	$	479	$	11	$	692	$	2,707	$	1,226	$	430	$	9	$	653	$	2,318

(a)Amounts represent assets valued at NAV as a practical expedient for fair value.

(b)Amounts include $10 million and $8 million recorded in Restricted cash on DTE Electric's Consolidated Statements of Financial Position at December 31, 2025 and December 31, 2024, respectively. All other amounts are included in Cash and cash equivalents on DTE Electric's Consolidated Statements of Financial Position.

Cash Equivalents

Cash equivalents include investments with maturities of three months or less when purchased. The cash equivalents shown in the fair value table are comprised of short-term investments in money market funds.

Nuclear Decommissioning Trusts and Other Investments

The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through commingled funds. Exchange-traded debt and equity securities held directly, as well as publicly traded commingled funds, are valued using quoted market prices in actively traded markets. Non-exchange traded fixed income securities are valued based upon quotations available from brokers or pricing services.

Non-publicly traded commingled funds holding exchange-traded equity or debt securities are valued based on stated NAVs. There are no significant restrictions for these funds and investments may be redeemed with 7 to 65 days notice depending on the fund. There is no intention to sell the investment in these commingled funds.

Private equity and other assets include a diversified group of funds that are primarily classified as NAV assets. These funds primarily invest in limited partnerships, including private equity, private real estate and private credit. Distributions are received through the liquidation of the underlying fund assets over the life of the funds. There are generally no redemption rights. The limited partner must hold the fund for its life or find a third-party buyer, which may need to be approved by the general partner. The funds are established with varied contractual durations generally in the range of 7 years to 12 years. The fund life can often be extended by several years by the general partner, and further extended with the approval of the limited partners. Unfunded commitments related to these investments totaled $179 million and $120 million as of December 31, 2025 and 2024, respectively.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Hedge funds and similar investments utilize a diversified group of strategies that attempt to capture uncorrelated sources of return. These investments include publicly traded mutual funds that are valued using quoted prices in actively traded markets, as well as insurance-linked and asset-backed securities and that are valued using quotations from broker or pricing services and limited partnerships that are classified as NAV assets.

For pricing the nuclear decommissioning trusts and other investments, a primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary source of a given security if the trustee determines that another price source is considered preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices.

Derivative Assets and Liabilities

Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.

The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy:


	Year Ended December 31, 2025								Year Ended December 31, 2024
	Natural Gas		Electricity		Other		Total		Natural Gas		Electricity		Other		Total
	(In millions)
Net Assets (Liabilities) as of January 1	$	(18)	$	24	$	7	$	13	$	22	$	47	$	6	$	75
Transfers into Level 3 from Level 2	2		—		—		2		1		—		—		1
Transfers from Level 3 into Level 2	—		—		2		2		—		74		—		74
Total gains (losses)
Included in earnings(a)	(25)		329		4		308		16		225		(1)		240
Recorded in Regulatory liabilities	—		—		19		19		—		—		21		21
Purchases, issuances, and settlements:


Settlements	68		(372)		(21)		(325)		(57)		(322)		(19)		(398)
Net Assets (Liabilities) as of December 31	$	27	$	(19)	$	11	$	19	$	(18)	$	24	$	7	$	13
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at December 31(a)	$	23	$	(19)	$	—	$	4	$	(47)	$	118	$	(159)	$	(88)
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at December 31	$	—	$	—	$	11	$	11	$	—	$	—	$	9	$	9

(a)Amounts are reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, gas, and other — non-utility in DTE Energy's Consolidated Statements of Operations.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Electric:


	Year Ended December 31,
	2025		2024
	(In millions)
Net Assets as of January 1	$	9	$	7
Total gains recorded in Regulatory liabilities	19		21
Purchases, issuances, and settlements:
Settlements	(17)		(19)
Net Assets as of December 31	$	11	$	9
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at December 31	$	11	$	9

Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in market liquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period. There were no transfers from or into Level 3 for DTE Electric during the years ended December 31, 2025 and 2024.

The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:


	December 31, 2025
Commodity Contracts	Derivative Assets		Derivative Liabilities		Valuation Techniques	Unobservable Input	Range						Weighted Average
	(In millions)
Natural Gas	$	109	$	(82)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.35)	—	$	9.33	/MMBtu	$	(0.13)	/MMBtu
Electricity	$	33	$	(52)	Discounted Cash Flow	Forward basis price (per MWh)	$	(21.82)	—	$	17.79	/MWh	$	(5.58)	/MWh


	December 31, 2024
Commodity Contracts	Derivative Assets		Derivative Liabilities		Valuation Techniques	Unobservable Input	Range						Weighted Average
	(In millions)
Natural Gas	$	105	$	(123)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.24)	—	$	9.96	/MMBtu	$	(0.05)	/MMBtu
Electricity	$	51	$	(27)	Discounted Cash Flow	Forward basis price (per MWh)	$	(16.34)	—	$	17.28	/MWh	$	(2.74)	/MWh

The unobservable inputs used in the fair value measurement of the electricity and natural gas commodity types consist of inputs that are less observable due in part to lack of available broker quotes, supported by little, if any, market activity at the measurement date or are based on internally developed models. Certain basis prices (i.e., the difference in pricing between two locations) included in the valuation of natural gas and electricity contracts were deemed unobservable. The weighted average price for unobservable inputs was calculated using the average of forward price curves for natural gas and electricity and the absolute value of monthly volumes.

The inputs listed above would have had a direct impact on the fair values of the above security types if they were adjusted. A significant increase (decrease) in the basis price would have resulted in a higher (lower) fair value for long positions, with offsetting impacts to short positions.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments for DTE Energy:


	December 31, 2025								December 31, 2024
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable(a), excluding lessor finance leases	$	1,453	$	—	$	—	$	1,482	$	884	$	—	$	—	$	904
Short-term borrowings	$	882	$	—	$	882	$	—	$	1,067	$	—	$	1,067	$	—
Notes payable(b)	$	28	$	—	$	—	$	28	$	37	$	—	$	—	$	37
Long-term debt(c)	$	25,123	$	1,285	$	21,204	$	1,351	$	21,963	$	725	$	18,283	$	1,128

(a)Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position. Carrying value includes credit loss reserves on Notes receivable.

(b)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.

(c)Includes debt due within one year and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.

The following table presents the carrying amount and fair value of financial instruments for DTE Electric:


	December 31, 2025								December 31, 2024
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable — Affiliates	$	—	$	—	$	—	$	—	$	42	$	—	$	—	$	42
Notes receivable — Other(a)	274		—		—		289		2		—		—		2

Short-term borrowings — Other	$	652	$	—	$	652	$	—	$	666	$	—	$	666	$	—
Notes payable(b)	$	24	$	—	$	—	$	24	$	35	$	—	$	—	$	35
Long-term debt(c)	$	13,165	$	—	$	12,048	$	131	$	11,881	$	—	$	10,449	$	127

(a)Included in Other Assets — Other on DTE Electric's Consolidated Statements of Financial Position.

(b)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.

(c)Includes debt due within one year and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.

For further fair value information on financial and derivative instruments, see Note 13 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Nuclear Decommissioning Trust Funds

DTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of its operating licenses. This obligation is reflected as an Asset retirement obligation on DTE Electric's Consolidated Statements of Financial Position. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste. See Note 8 to the Consolidated Financial Statements, "Asset Retirement Obligations."

The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:


	December 31,
	2025		2024
	(In millions)
Fermi 2	$	2,523	$	2,234
Fermi 1	3		3
Low-level radioactive waste	26		19
	$	2,552	$	2,256

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The costs of securities sold are determined on the basis of specific identification. The following table sets forth DTE Electric's gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Realized gains	$	50	$	47	$	36
Realized losses	$	(32)	$	(27)	$	(42)
Proceeds from sale of securities	$	717	$	555	$	681

Realized gains and losses from the sale of securities and unrealized gains and losses incurred by the Fermi 2 trust are recorded to Regulatory assets and the Nuclear decommissioning liability. Realized gains and losses from the sale of securities and unrealized gains and losses on the low-level radioactive waste funds are recorded to the Nuclear decommissioning liability.

The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:


	December 31, 2025						December 31, 2024
	Fair Value		Unrealized Gains		Unrealized Losses		Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	1,188	$	742	$	(10)	$	1,003	$	558	$	(16)
Fixed income securities	726		25		(17)		650		16		(29)
Private equity and other	358		125		(7)		349		106		(8)
Hedge funds and similar investments	245		8		(6)		228		7		(5)
Cash equivalents	35		—		—		26		—		—
	$	2,552	$	900	$	(40)	$	2,256	$	687	$	(58)

The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:


	December 31, 2025
	(In millions)
Due within one year	$	20
Due after one through five years	93
Due after five through ten years	127
Due after ten years	353
	$	593

Fixed income securities held in nuclear decommissioning trust funds include $133 million of non-publicly traded commingled funds that do not have a contractual maturity date.

Other Securities

At December 31, 2025 and 2024, DTE Energy's securities included in Other investments on the Consolidated Statements of Financial Position consisted primarily of investments within DTE Energy's rabbi trust. The rabbi trust is comprised primarily of trading securities recorded at fair value, as well as debt securities classified as held-to-maturity and recorded at amortized cost. The trust was established to fund certain non-qualified pension benefits, and therefore changes in market value of the trading securities and interest on the held-to-maturity securities are recognized in earnings. Gains and losses are allocated from DTE Energy to DTE Electric and are included in Other Income or Other Expense, respectively, in the Registrants' Consolidated Statements of Operations. Gains (losses) related to the trading securities were immaterial for the years ended December 31, 2025, 2024, and 2023.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

NOTE 13 — FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS

The Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of Financial Position unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the derivative gain or loss is deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. For fair value hedges, changes in fair values for the derivative and hedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period.

The Registrants' primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk management policies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivative instruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain environmental contracts, forwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas and environmental inventory, pipeline transportation contracts, some environmental contracts, and natural gas storage assets.

DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

DTE Gas — DTE Gas purchases, stores, transports, distributes, and sells natural gas, and buys and sells transportation and storage capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2028. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.

DTE Vantage — DTE Vantage manages and operates renewable gas recovery projects, power generation assets, and other customer specific energy solutions. Long-term contracts and hedging instruments are used in the marketing and management of the segment assets. These contracts and hedging instruments are generally not derivatives and are therefore accounted for under the accrual method.

Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.

Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information. Based on DTE Energy's credit policies and its December 31, 2025 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Derivative Activities

DTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the risks within each contract. Accordingly, it records and manages the energy purchase and sale obligations under its contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The following describes the categories of activities represented by their operating characteristics and key risks:

Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gas purchases and sales, natural gas transportation, and storage capacity. Changes in the value of derivatives in this category typically economically offset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting. The difference in accounting treatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.
Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energy marketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.
Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, or putting capital at risk. This activity is speculative in nature as opposed to hedging an existing exposure.
Other — Includes derivative activity at DTE Electric related to FTRs. Changes in the value of derivative contracts at DTE Electric are recorded as Derivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in the PSCR mechanism when realized.

The following table presents the fair value of derivative instruments for DTE Energy:


	December 31, 2025				December 31, 2024
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
	(In millions)
Derivatives designated as hedging instruments
Interest rate contracts	$	3	$	—	$	20	$	—
Foreign currency exchange contracts	—		(1)		—		(1)
Total derivatives designated as hedging instruments	$	3	$	(1)	$	20	$	(1)

Derivatives not designated as hedging instruments
Commodity contracts
Natural gas	$	372	$	(329)	$	428	$	(410)
Electricity	275		(235)		187		(150)
Environmental & Other	57		(32)		58		(44)
Foreign currency exchange contracts	—		—		1		—
Total derivatives not designated as hedging instruments	$	704	$	(596)	$	674	$	(604)

Current	$	482	$	(413)	$	488	$	(441)
Noncurrent	225		(184)		206		(164)
Total derivatives	$	707	$	(597)	$	694	$	(605)

The fair value of derivative instruments at DTE Electric was $11 million and $9 million at December 31, 2025 and 2024, respectively, comprised of FTRs recorded to Current Assets — Other on the Consolidated Statements of Financial Position and not designated as hedging instruments.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.

DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had letters of credit of $2 million issued and outstanding at December 31, 2025 and $1 million at December 31, 2024, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $17 million at December 31, 2025. There were none for December 31, 2024. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.

The following table presents net cash collateral offsetting arrangements for DTE Energy:


	December 31,
	2025		2024
	(In millions)
Cash collateral netted against Derivative assets	$	(35)	$	(17)
Cash collateral netted against Derivative liabilities	5		—
Cash collateral recorded in Accounts receivable(a)	20		29
Cash collateral recorded in Accounts payable(a)	(28)		(5)
Total net cash collateral posted (received)	$	(38)	$	7

(a)Amounts are recorded net by counterparty.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:


	December 31, 2025						December 31, 2024
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position		Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
	(In millions)
Derivative assets
Commodity contracts(a)
Natural gas	$	372	$	(235)	$	137	$	428	$	(285)	$	143
Electricity	275		(194)		81		187		(116)		71
Environmental & Other	57		(46)		11		58		(46)		12
Interest rate contracts	3		—		3		20		—		20
Foreign currency exchange contracts	—		—		—		1		—		1
Total derivative assets	$	707	$	(475)	$	232	$	694	$	(447)	$	247

Derivative liabilities
Commodity contracts(a)
Natural gas	$	(329)	$	227	$	(102)	$	(410)	$	272	$	(138)
Electricity	(235)		186		(49)		(150)		114		(36)
Environmental & Other	(32)		32		—		(44)		44		—

Foreign currency exchange contracts	(1)		—		(1)		(1)		—		(1)
Total derivative liabilities	$	(597)	$	445	$	(152)	$	(605)	$	430	$	(175)

(a)For contracts with a clearing agent, DTE Energy nets all activity across commodities. This can result in some individual commodities having a contra balance.

The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:


	December 31, 2025								December 31, 2024
	Derivative Assets				Derivative Liabilities				Derivative Assets				Derivative Liabilities
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
	(In millions)
Total fair value of derivatives	$	482	$	225	$	(413)	$	(184)	$	488	$	206	$	(441)	$	(164)
Counterparty netting	(325)		(115)		325		115		(323)		(107)		323		107
Collateral adjustment	(14)		(21)		2		3		(3)		(14)		—		—
Total derivatives as reported	$	143	$	89	$	(86)	$	(66)	$	162	$	85	$	(118)	$	(57)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:


	Location of Gain (Loss) Recognized in Income on Derivatives		Gain (Loss) Recognized in Income on Derivatives for Years Ended December 31,
		2025			2024			2023
			(In millions)




Commodity contracts
Natural gas	Operating Revenues — Non-utility operations		$	112		$	(169)		$	153
Natural gas	Fuel, purchased power, gas, and other — non-utility		(160)			233			122
Electricity	Operating Revenues — Non-utility operations		361			266			105
Environmental & Other	Operating Revenues — Non-utility operations		61			14			5
Foreign currency exchange contracts	Operating Revenues — Non-utility operations		(1)			3			(2)
Total			$	373		$	347		$	383

Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, gas, and other — non-utility.

The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of December 31, 2025:


Commodity						Number of Units
Natural gas (MMBtu)						2,451,423,819
Electricity (MWh)						39,287,109

Foreign currency exchange ($ CAD)						67,058,920
FTR (MWh)						82,664
Renewable Energy Certificates (MWh)						11,860,903
Carbon emissions (Metric Ton)						1,113,500
Interest rate contracts ($ USD)						300,000,000

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. Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and environmental) and the provisions and maturities of the underlying transactions. As of December 31, 2025, 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 $483 million.

As of December 31, 2025, DTE Energy had $491 million of derivatives in net liability positions, for which hard triggers exist. There is $3 million of collateral that has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for which contractual offset exists were $426 million. The net remaining amount of $62 million is derived from the $483 million noted above.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

NOTE 14 — LONG-TERM FINANCINGS

Long-Term Debt

DTE Energy's long-term debt outstanding and interest rates of debt outstanding at December 31 were:


	Interest Rate(a)	Maturity Date	2025		2024
			(In millions)
Mortgage bonds, notes, and other
DTE Energy debt, unsecured	4.7%	2026 — 2035	$	7,479	$	6,380
DTE Electric debt, principally secured	4.2%	2026 — 2055	12,620		11,270

DTE Gas debt, principally secured	4.4%	2027 — 2055	3,055		2,865

			23,154		20,515
Unamortized debt discount			(14)		(28)
Unamortized debt issuance costs			(127)		(114)
Long-term debt due within one year			(1,277)		(1,220)
			$	21,736	$	19,153
Securitization bonds(b)
DTE Electric securitization bonds	5.6%	2027 — 2038	$	642	$	713
Unamortized debt issuance costs			(6)		(7)
Long-term debt due within one year			(75)		(71)
			$	561	$	635
Junior Subordinated Debentures
Subordinated debentures	5.4%	2077 — 2085	$	1,510	$	910
Unamortized debt issuance costs			(36)		(26)
			$	1,474	$	884

(a)Weighted average interest rate as of December 31, 2025.

(b)Bonds are held by DTE Securitization I and DTE Securitization II, special purpose entities consolidated by DTE Electric. Refer to Note 1 to the Consolidated Financial Statements, “Organization and Basis of Presentation,” for additional information regarding these entities and restrictions related to the bonds.

DTE Electric's long-term debt outstanding and interest rates of debt outstanding at December 31 were:


	Interest Rate(a)	Maturity Date	2025		2024
			(In millions)
Mortgage bonds, notes, and other
Long-term debt, principally secured	4.2%	2026 — 2055	$	12,620	$	11,270


Unamortized debt discount			(11)		(22)
Unamortized debt issuance costs			(80)		(73)
Long-term debt due within one year			(677)		(350)
			$	11,852	$	10,825
Securitization bonds(b)
DTE Electric securitization bonds	5.6%	2027 — 2038	$	642	$	713
Unamortized debt issuance costs			(6)		(7)
Long-term debt due within one year			(75)		(71)
			$	561	$	635

(a)Weighted average interest rate as of December 31, 2025.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Debt Issuances

Refer to the table below for debt issued in 2025:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Energy	February	Senior Notes(a)	5.20%	2030	$	1,100
DTE Electric	May	Mortgage Bonds(b)	5.25%	2035	500
DTE Electric	May	Mortgage Bonds(b)	5.85%	2055	500
DTE Electric	May	Mortgage Bonds(b)	4.25%	2027	300
DTE Energy	September	Senior Notes(a)	4.88%	2028	250
DTE Energy	September	Senior Notes(a)	5.05%	2035	550
DTE Energy	September	Junior Subordinated Debentures(a)	6.25%	2085	600
DTE Gas	September	Mortgage Bonds(b)	4.71%	2031	50
DTE Gas	September	Mortgage Bonds(b)	5.36%	2037	75
DTE Gas	September	Mortgage Bonds(b)	5.96%	2055	135
DTE Electric	November	Mortgage Bonds(b)	5.25%	2035	200
DTE Electric	November	Mortgage Bonds(b)	5.85%	2055	200
					$	4,460

(a)Proceeds used for the repayment of short-term borrowings and for general corporate purposes.

(b)Proceeds used for the repayment of short-term borrowings, for capital expenditures, and for other general corporate purposes.

Debt Redemptions

Refer to the table below for debt redeemed in 2025:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	March	Mortgage Bonds	3.38%	2025	$	350
DTE Electric	March	Securitization Bonds	5.97%	2025	15
DTE Energy	June	Senior Notes	1.05%	2025	800
DTE Electric	June	Securitization Bonds	2.64%	2025	20
DTE Electric	September	Securitization Bonds	5.97%	2025	15
DTE Electric	December	Securitization Bonds	2.64%	2025	21
DTE Gas	December	Mortgage Bonds	3.74%	2025	70









					$	1,291

Debt Maturities

The following table shows the Registrants' scheduled debt maturities, excluding any unamortized discount on debt:


	2026		2027		2028		2029		2030		2031 and Thereafter		Total
	(In millions)
DTE Energy(a)(b)	$	1,352	$	1,730	$	1,987	$	1,962	$	2,504	$	15,771	$	25,306
DTE Electric(b)	$	752	$	339	$	617	$	103	$	829	$	10,622	$	13,262

(a)Amounts include DTE Electric's scheduled debt maturities.

(b)Amounts include DTE Securitization I and DTE Securitization II scheduled debt maturities.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table shows scheduled interest payments related to the Registrants' long-term debt:


	2026		2027		2028		2029		2030		2031 and Thereafter		Total
	(In millions)
DTE Energy(a)(b)	$	1,127	$	1,039	$	963	$	879	$	790	$	11,465	$	16,263
DTE Electric(b)	$	557	$	518	$	504	$	496	$	484	$	5,637	$	8,196

(a)Amounts include DTE Electric's scheduled interest payments.

(b)Amounts include DTE Securitization I and DTE Securitization II scheduled interest payments.

Junior Subordinated Debentures

DTE Energy has the right to defer interest payments on the Junior Subordinated Debentures. Should DTE Energy exercise this right, it cannot declare or pay dividends on, or redeem, purchase or acquire, any of its capital stock during the deferral period. Any deferred interest payments will bear additional interest at the rate associated with the related debt issue. As of December 31, 2025, no interest payments have been deferred on the Junior Subordinated Debentures.

Cross Default Provisions

Substantially all of the net utility properties of DTE Electric and DTE Gas are subject to the lien of mortgages. Should DTE Electric or DTE Gas fail to timely pay their indebtedness under these mortgages, such failure may create cross defaults in the indebtedness of DTE Energy.

Equity At-the-Market Program

In December 2025, DTE Energy filed a prospectus supplement and executed an Equity Distribution Agreement, pursuant to which DTE Energy may sell, from time to time, up to an aggregate $1.5 billion of its common stock through an at-the-market program, including an equity forward sales component. There were no issuances under the ATM program for the year ended December 31, 2025.

NOTE 15 — PREFERRED AND PREFERENCE SECURITIES

As of December 31, 2025, the amount of authorized and unissued stock is as follows:


Company	Type of Stock	Par Value		Shares Authorized
DTE Energy	Preferred	$	—	5,000,000
DTE Electric	Preferred	$	100	6,747,484
DTE Electric	Preference	$	1	30,000,000
DTE Gas	Preferred	$	1	7,000,000
DTE Gas	Preference	$	1	4,000,000

NOTE 16 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. Letters of credit of up to $500 million may also be issued under the DTE Energy revolver. DTE Energy and DTE Electric also have other facilities to support letter of credit issuance and increase liquidity.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The unsecured revolving credit agreements require a total funded debt to capitalization ratio of no more than 0.70 to 1 for DTE Energy and 0.65 to 1 for DTE Electric and DTE Gas. In the agreements, "total funded debt" means all indebtedness of each respective company and their consolidated subsidiaries, including finance lease obligations, hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. "Capitalization" means the sum of (a) total funded debt plus (b) "consolidated net worth," which is equal to consolidated total equity of each respective company and their consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At December 31, 2025, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.66 to 1, 0.52 to 1, and 0.49 to 1, respectively, and were in compliance with this financial covenant.

The availability under the facilities in place at December 31, 2025 is shown in the following table:


	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured revolving credit facility, expiring October 2030	$	1,500	$	1,000	$	300	$	2,800

Unsecured letter of credit facility, expiring June 2026(a)	150		—		—		150
Unsecured letter of credit facility, expiring February 2027	200		—		—		200
Unsecured letter of credit facilities, expiring June 2028	150		—		—		150
Unsecured letter of credit facility(b)	75		—		—		75
Unsecured letter of credit facilities, expiring December 2026	—		150		—		150
Unsecured letter of credit facility(c)	—		175		—		175
Unsecured letter of credit facility(d)	—		150		—		150

	2,075		1,475		300		3,850
Amounts outstanding at December 31, 2025

Commercial paper issuances	150		652		80		882
Letters of credit	416		331		—		747

	566		983		80		1,629
Net availability at December 31, 2025	$	1,509	$	492	$	220	$	2,221

(a)Uncommitted letter of credit facility.

(b)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration. DTE Electric may also utilize availability under this facility.

(c)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration. DTE Energy may also utilize availability under this facility.

(d)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration.

In February 2026, DTE Energy entered into two unsecured term loan agreements for a total of $550 million and borrowed the full amount under each agreement. Both term loans mature in August 2026. The term loans contain terms and conditions consistent with those of DTE Energy's unsecured revolving credit agreements.

For both DTE Energy and DTE Electric, the weighted average interest rate for short-term borrowings was 3.8% and 4.7% at December 31, 2025 and 2024, respectively. For information related to affiliate short-term borrowings, refer to Note 23 of the Consolidated Financial Statements, "Related Party Transactions."

In conjunction with maintaining certain exchange-traded risk management positions, DTE Energy may be required to post collateral with a clearing agent. DTE Energy has a demand financing agreement with its clearing agent which allows the right of setoff with posted collateral. At December 31, 2025, the capacity under the facility was $200 million. The amounts outstanding under demand financing agreements were $94 million and $49 million at December 31, 2025 and 2024, respectively, and were fully offset by posted collateral.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Dividend Restrictions

Certain of DTE Energy’s credit facilities contain a provision requiring DTE Energy to maintain a total funded debt to capitalization ratio, as defined in the agreements, of no more than 0.70 to 1, which has the effect of limiting the amount of dividends DTE Energy can pay in order to maintain compliance with this provision. At December 31, 2025, the effect of this provision was a restriction on dividend payments to no more than $2.1 billion of DTE Energy's Retained earnings of $5.5 billion. There are no other effective limitations with respect to DTE Energy’s ability to pay dividends.

NOTE 17 — LEASES

Lessee

Leases at DTE Energy and DTE Electric are primarily comprised of various forms of land easements, coal railcars, buildings, equipment, and computer hardware, leases with terms ranging from approximately 2 to 52 years.

A lease is deemed to exist when the Registrants have the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Registrants have the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets.

In accordance with ASC Subtopic 980-842, Regulated Operations - Leases, DTE Electric recognizes expense for operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered from customers.

Lease liabilities are determined utilizing the discount rate implicit in the lease when it is readily determinable. When the rate implicit in the lease is not readily determinable, the incremental borrowing rate is used. The incremental borrowing rates for DTE Electric and DTE Gas have been determined utilizing respective secured borrowing rates for first mortgage bonds with like tenors of remaining lease terms. Incremental borrowing rates for non-utility entities have been determined utilizing an implied secured borrowing rate based upon an unsecured rate for a similar tenor of remaining lease terms, which is then adjusted for the estimated impact of collateral.

The Registrants have certain leases which contain renewal or purchase options. Where the renewal options were deemed reasonably certain to occur, the impacts of such options were included in the determination of the right of use assets and lease liabilities. The Registrants have determined that it is not reasonably certain that purchase options will be utilized and have not included the impact in the determination of right of use assets and lease liabilities for the subject leases.

Certain leases of the Registrants contain escalation clauses whereby the payments are adjusted for consumer price or labor indices, as well as non-index based escalations for percentage increases. The Registrants also have leases with variable payments based upon the usage of the leased assets.

Certain leases contain provisions whereby the Registrants have the option to terminate the lease agreement by giving notice of such termination during the time frames specified in the respective lease. The Registrants have considered such provisions in the determination of the lease term when it is reasonably certain that the lease would be terminated.

The Registrants have agreements with lease and non-lease components, which are generally accounted for separately. Consideration in a lease is allocated between lease and non-lease components based upon the estimated relative standalone prices. The Registrants have certain coal railcar leases for which non-lease and lease components are accounted for as a single lease component, as permitted under Topic 842.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following is a summary of the components of lease cost for the years ended December 31:


	DTE Energy						DTE Electric
	2025		2024		2023		2025		2024		2023
	(In millions)
Operating lease cost	$	23	$	26	$	22	$	17	$	22	$	17
Finance lease cost:
Amortization of right-of-use assets	4		4		7		3		3		6
Interest of lease liabilities	1		1		—		—		1		—
Total finance lease cost	5		5		7		3		4		6
Variable lease cost	17		17		13		1		—		—
Short-term lease cost	19		18		12		11		10		4

	$	64	$	66	$	54	$	32	$	36	$	27

The Registrants have elected not to apply the recognition requirements of Topic 842 to leases with a term of 12 months or less. DTE Energy and DTE Electric record operating, variable, and short-term lease costs as Operating Expenses on the Consolidated Statements of Operations, except for certain amounts that may be capitalized to Property, plant, and equipment and Inventories.

The following is a summary of other information related to leases for the years ended December 31:


	DTE Energy									DTE Electric
	2025			2024			2023			2025			2024			2023
	(In millions)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of these liabilities:
Operating cash flows for finance leases	$	5		$	9		$	9		$	3		$	7		$	7
Operating cash flows for operating leases	$	27		$	19		$	19		$	21		$	15		$	15

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	95		$	75		$	61		$	86		$	74		$	61
Finance leases	$	—		$	16		$	5		$	—		$	14		$	5

Weighted Average Remaining Lease Term (Years)
Operating leases	24.5			23.3			18.7			26.3			24.8			19.8
Finance leases	6.6			7.4			8.9			3.0			4.0			4.5

Weighted Average Discount Rate
Operating leases	5.1		%	4.8		%	4.4		%	5.2		%	4.9		%	4.5		%
Finance leases	4.5		%	4.6		%	4.0		%	5.8		%	5.8		%	5.4		%

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The Registrants' future minimum lease payments under leases for remaining periods as of December 31, 2025 are as follows:


	DTE Energy				DTE Electric
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
	(In millions)
2026	$	37	$	5	$	31	$	3
2027	35		4		30		3
2028	32		4		28		3
2029	21		1		17		—
2030	13		1		10		—
2031 and thereafter	400		5		379		—
Total future minimum lease payments	538		20		495		9
Imputed interest	(271)		(2)		(262)		—
Lease liabilities	$	267	$	18	$	233	$	9

Finance leases reported on the Consolidated Statements of Financial Position of the Registrants are as follows for the years ended December 31:


	DTE Energy				DTE Electric
	2025		2024		2025		2024
	(In millions)
Right-of-use assets, within Property, plant, and equipment, net	$	18	$	23	$	9	$	12
Current lease liabilities, within Current portion of long-term debt	$	4	$	5	$	3	$	4
Long-term lease liabilities	$	14	$	18	$	6	$	8

Lessor

DTE Energy leases various assets under operating leases for a pipeline, energy facilities and related equipment. Such leases are comprised of both fixed payments and variable payments which are contingent on volumes, with terms ranging from 10 to 24 years. Generally, the operating leases do not have renewal provisions or options to purchase the assets at the end of the lease. The operating leases generally do not have termination for convenience provisions. Termination may be allowed under specific circumstances stated in the lease contract, such as under an event of default.

Certain of the finance and operating leases have lease terms that extend to the end of the estimated economic life of the leased assets, thereby resulting in no residual value. Any remaining residual values under the finance and operating leases are expected to be recovered through rates, renewals or new lease contracts. Residual values have been determined using the estimated economic life of the leased assets. The finance and operating leases do not contain residual value guarantees.

Certain of the operating leases have both lease and non-lease components. The lease and non-lease components are allocated based upon estimated relative standalone selling prices.

A lease is deemed to exist when the Registrants have provided other parties with the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration received. The right to control is deemed to occur when the Registrants have provided other parties with the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets.

DTE Energy’s lease income associated with operating leases was included on the Consolidated Statements of Operations for the years ended December 31:


	2025		2024		2023
	(In millions)
Fixed payments	$	15	$	15	$	15
Variable payments	46		45		44
	$	61	$	60	$	59

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Energy’s minimum future rental revenues under operating leases for remaining periods as of December 31, 2025 are as follows:


	DTE Energy
	(In millions)
2026	$	11
2027	10
2028	6
2029	6
2030	6
2031 and thereafter	23
	$	62

Depreciation expense associated with DTE Energy's property under operating leases was $8 million, $9 million, and $8 million for the years ended December 31, 2025, 2024, and 2023, respectively.

The following is a summary of property under operating leases for DTE Energy as of December 31:


	2025		2024
	(In millions)
Gross property under operating leases	$	228	$	227
Accumulated amortization of property under operating leases	$	126	$	118

NOTE 18 — COMMITMENTS AND CONTINGENCIES

Environmental

DTE Electric

Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO2 and NOX. The EPA and the state of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce SO2, NOX, mercury, and other emissions. Additional rule making may occur over the next few years which could require additional controls for SO2, NOX, and other hazardous air pollutants.

In March 2024, the EPA finalized the NAAQS for fine particulate matter, particles of pollution with diameters generally 2.5 micrometers and smaller (PM2.5). It is likely that areas of Michigan in which DTE Electric operates will be designated as non-attainment in the future, and the state will be required to develop a SIP for such areas. However, the EPA has announced its intention to review the standard. No impact is expected in the near term, and any long-term financial impacts cannot be assessed at this time.

In April 2024, the EPA finalized new rules to address emissions of GHGs from existing, new, modified, or reconstructed sources in the power sector. In June 2025, the EPA proposed a rule to repeal the GHG standards along with an alternative to eliminate various portions of the standards. The EPA intends to finalize the repeal or alternative in early 2026. The financial impacts of the new rules are still being assessed.

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Potential impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

To comply with air pollution requirements, DTE Electric has spent approximately $2.4 billion. DTE Electric does not anticipate additional capital expenditures for air pollution requirements, subject to the results of future rulemakings.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Water — In response to EPA regulations and in accordance with the Clean Water Act section 316(b), DTE Electric was required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. A final rule became effective in October 2014, which required studies to be completed and submitted as part of the NPDES permit application process to determine the type of technology needed to reduce impacts to fish. DTE Electric has completed the required studies and submitted reports for most of its generation plants, and a final study was submitted to EGLE in April 2025 for the Monroe power plant. Final compliance for the installation of any required technology to reduce the impacts of water intake structures will be determined by the state on a case by case, site specific basis.

As part of the Monroe power plant NPDES permit, EGLE has added an option to evaluate the thermal discharge of the facility as it relates to Clean Water Act section 316(a) regulations in order to establish an appropriate temperature discharge limit. DTE Electric has submitted to EGLE a biological demonstration study plan to evaluate the thermal discharge impacts to an aquatic community. EGLE approved the plan in May 2025. Field sampling has commenced, and data will be processed and compiled into a comprehensive report. At the present time, DTE Electric cannot predict the outcome of this evaluation or financial impact.

Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured locally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedial investigations at contaminated sites, including three former MGP sites. The investigations at the former MGP sites have revealed contamination related to the by-products of gas manufacturing. Cleanup of one of the MGP sites is complete, and that site is closed. DTE Electric has also completed partial closure of one additional site. Cleanup activities associated with the remaining sites will continue over the next several years. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the area surrounding an ash landfill, electrical distribution substations, electric generating power plants, and underground and above ground storage tank locations. The findings of these investigations indicated that the estimated cost to remediate these sites is expected to be incurred over the next several years. At December 31, 2025 and 2024, DTE Electric had $10 million accrued for remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site.

Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of coal combustion residuals, commonly known as coal ash, became effective in October 2015 and has continued to be updated in subsequent years. The rule is based on the continued listing of coal ash as a non-hazardous waste and relies on various self-implementation design and performance standards. DTE Electric currently owns and operates multiple coal ash storage facilities to manage coal ash from coal-fired power plants that are subject to federal, state, and local CCR and solid waste regulations. At certain facilities, the rule required ongoing sampling and testing of monitoring wells, compliance with groundwater standards, and closure.

On May 8, 2024, the EPA finalized a new rule to regulate legacy CCR surface impoundments and CCR management units. The rule expands the reach of the CCR rule to inactive electric generation sites and previously unregulated CCR at any active facility. The rule also extends the dewatering and stabilization criteria of the closure in place performance standards to existing CCR landfills. DTE Electric has no legacy CCR surface impoundments, but has other regulated CCR units and is evaluating sites for CCR management units. DTE Electric continues to evaluate the final 2024 rule, which may have significant financial impacts depending on the site-specific characteristics of the units that are regulated by the new rule. Long-term financial impacts cannot be clearly defined at this time and likely will not be clearly defined until the regulated units are identified and fully characterized. Challenges to the rule have been filed, and DTE Electric will continue to monitor for regulatory developments. Recently, at the request of the EPA, the D.C. Circuit Court has held the pending litigation in abeyance to accommodate the EPA's reconsideration of the rule. The EPA recently announced their desire to revise the CCR regulations, but at this time the effective date and extent of any revisions are unknown. The current cost estimate to comply with the revised rule is approximately $430 million as of December 31, 2025, and is recorded to Asset retirement obligations. The estimate was increased by $130 million in the third quarter of 2025 based on findings from more thorough site investigations. The estimate will continue to be updated as necessary when site-specific details are more fully known. These costs are expected to be recoverable under the regulatory construct as part of removal costs.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

At the state level, legislation was signed in December 2018 and provides for further regulation of the CCR program in Michigan. Additionally, the statutory revision provides the basis of a CCR program that EGLE has submitted to the EPA for approval to fully regulate the CCR program in Michigan in lieu of a federal permit program. The EPA is currently working with EGLE in reviewing the submitted state program, and DTE Electric will work with EGLE to implement the state program that may be approved in the future.

The EPA updated and revised the ELG in 2015, 2020, and 2024. In each revision, EPA has re-established technology-based standards applicable to wastewaters created at facilities with an electrical generating unit. In each revision, the EPA also established new applicability dates.

The Reconsideration Rule, finalized in 2020, provided additional opportunities by finalizing a group of compliance subcategories that provided cessation of coal as a compliance option. Additionally, the 2020 Reconsideration Rule established the Voluntary Incentives Program (VIP) for FGD wastewater compliance only. If a facility applies for the VIP, they must meet more stringent standards, but are allowed an extended time period to meet the compliance requirements by December 1, 2028. The Reconsideration Rule provided these new opportunities for DTE Electric to evaluate existing ELG compliance strategies and make any necessary adjustments to ensure full compliance with the ELGs in a cost-effective manner.

Compliance schedules for individual facilities and individual waste streams are determined through issuance of new NPDES permits by the state of Michigan. The state of Michigan issued an NPDES permit for the Belle River power plant establishing compliance deadlines based on the 2020 Reconsideration Rule. On October 11, 2021, DTE Electric submitted a Notice of Planned Participation (NOPP) to the state of Michigan that formally announced the intent to pursue compliance subcategories as ELG compliance options: the cessation of coal at the Belle River power plant no later than December 31, 2028 and the VIP for FGD wastewater at Monroe power plant by December 31, 2028.

The EPA also finalized Supplemental ELG Rules on May 9, 2024. This updated the regulations from the 2020 Reconsideration Rule for FGD wastewater, bottom ash transport water (BATW), combustion residual leachate (CRL), and legacy wastewater (LWW). The supplemental rule established new technology-based effluent limitations guidelines and standards applicable to FGD wastewater, BATW, CRL, and LWW. The applicability date for BATW is as soon as possible beginning July 8, 2024 and no later than December 31, 2029. FGD wastewater retrofits must be completed as soon as possible, beginning July 8, 2024 and no later than December, 31 2029 or December 31, 2028 if a permittee is pursuing the VIP subcategory for FGD wastewater. The Cessation of Coal compliance subcategory and VIP from the 2020 Reconsideration Rule were maintained in the 2024 Supplemental Rule and continue to be a fundamental component of DTE Electric's ELG compliance strategy. The EPA recently announced that they will be reviewing and possibly revising the 2024 Supplemental ELG Rule. At this time, DTE Electric cannot predict effective dates for any revisions or their financial impacts.

DTE Electric's compliance strategy includes the conversion of the two generating units at the Belle River power plant to a natural gas peaking resource, expected to be complete in 2026, which was included in the NOPP filed in 2021. DTE Electric also submitted a new NOPP to apply for the cessation of coal compliance subcategory for generating units 3 and 4 at the Monroe power plant. DTE Electric plans to retire Monroe's generating units 1 and 2 in 2032.

DTE Electric continues to evaluate compliance strategies, technologies and system designs to achieve compliance with the EPA rules at the Monroe power plant in accordance with the VIP subcategory for FGD and met new discharge requirements for BATW as of December 31, 2025 for Monroe's generating units 1 and 2. Additionally, DTE Electric is evaluating compliance strategies and options to address new requirement and deadlines for other wastewater streams in the 2024 Supplemental Rule at both Belle River Power Plant and Sibley Quarry.

DTE Electric currently estimates the impact of the CCR and ELG rules to be $424 million of capital expenditures through 2030. This estimate may change in future periods as DTE Electric evaluates the CCR and ELG rules discussed above that have recently been finalized.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Gas

Contaminated and Other Sites — DTE Gas owns or previously owned 14 former MGP sites. Investigations have revealed contamination related to the by-products of gas manufacturing at each site. Cleanup of eight MGP sites is complete and those sites are closed. DTE Gas has also completed partial closure of five additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established a cost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is also in the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As of December 31, 2025 and 2024, DTE Gas had $25 million and $26 million, respectively, accrued for remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows for amortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will prevent the associated investigation and remediation costs from having a material adverse impact on DTE Gas' results of operations.

Air — In March 2023, the EPA published the Good Neighbor Rule, which includes provisions for compressor engines operated for the transportation of natural gas. In June 2024, the United States Supreme Court issued an opinion granting emergency applications to stay the Good Neighbor Rule. The stay will remain in effect during other litigation. The status of the rule remains uncertain as litigation is ongoing. At this time, DTE Gas does not expect a significant financial impact.

As noted above for DTE Electric, the EPA finalized the NAAQS for fine particulate matter in March 2024. It is likely that areas of Michigan in which DTE Gas operates will be designated as non-attainment in the future and the state will be required to develop a SIP for such areas. However, the EPA has announced its intention to review the standard. No impact is expected in the near term, and any long-term financial impacts cannot be assessed at this time.

Non-utility

DTE Energy's non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environment from various pollutants.

In March 2019, the EPA issued an FOV to EES Coke Battery, LLC ("EES Coke"), the Michigan coke battery facility that is a wholly-owned subsidiary of DTE Energy, alleging that the 2008 and 2014 permits issued by EGLE did not comply with the Clean Air Act. In September 2020, the EPA issued another FOV alleging EES Coke's 2018 and 2019 SO2 emissions exceeded projections and hence violated non-attainment new source review permitting requirements. EES Coke evaluated the EPA's alleged violations and believes that the permits approved by EGLE complied with the Clean Air Act. EES Coke responded to the EPA's September 2020 allegations demonstrating its actual emissions are compliant with non-attainment new source review requirements. On June 1, 2022, the U.S. Department of Justice ("DOJ"), on behalf of the EPA, filed a complaint against EES Coke in the U.S. District Court for the Eastern District of Michigan alleging that EES Coke failed to comply with non-attainment new source review requirements under the Clean Air Act when it applied for the 2014 permit. In November 2022, the Sierra Club and City of River Rouge were granted intervention. On May 20, 2024, the court granted a motion allowing the DOJ to amend their complaint to add EES Coke's parent entities, including DTE Energy, as defendants. The parent entities were added in an attempt to share in any potential liability; there are no additional claims alleged. The EPA filed a motion for partial summary judgment on liability that was granted by the trial court on August 25, 2025. EES Coke sought certification for an interlocutory appeal to the Sixth Circuit Court of Appeals, which was denied on September 12, 2025. Trial was held on remedies and parent liability, and concluded on September 29, 2025. Final briefs were submitted in the case on December 5, 2025. DTE Energy has accrued $8 million as our best estimate of penalties as of December 31, 2025. At the present time, DTE Energy cannot predict the final outcome or financial impact of this matter.

Other

In 2010, the EPA finalized a new one-hour SO2 ambient air quality standard that requires states to submit plans and associated timelines for non-attainment areas that demonstrate attainment with the new SO2 standard in phases. Phase 1 addresses non-attainment areas designated based on ambient monitoring data. Phase 2 addresses non-attainment areas with large sources of SO2 and modeled concentrations exceeding the National Ambient Air Quality Standards for SO2. Phase 3 addresses smaller sources of SO2 with modeled or monitored exceedances of the new SO2 standard.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Michigan's Phase 1 non-attainment area included DTE Energy facilities. However, the EPA published a Federal Implementation Plan (FIP) for the area in June 2022 that did not impact any DTE Energy facilities. It is also not expected that Phase 3 will have any impact on DTE Energy.

Michigan's Phase 2 non-attainment area includes DTE Electric facilities in St. Clair County. The EPA approved a clean data determination request submitted by EGLE. This determination suspends certain planning requirements and sanctions for the non-attainment area for as long as the area continues to attain the 2010 SO2 air quality standards, but this does not automatically redesignate the area to attainment. Until the area is officially redesignated as attainment, DTE Energy is unable to determine the impacts.

REF Guarantees

DTE Energy provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its previously operated REF facilities. The guarantees cover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at December 31, 2025 was $201 million. Payments under these guarantees are considered remote.

Other Guarantees

In certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. The Registrants may also provide indirect guarantees for the indebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling $69 million at December 31, 2025. Payments under these guarantees are considered remote.

The Registrants are periodically required to obtain performance surety bonds in support of obligations to various governmental entities and other companies in connection with its operations. As of December 31, 2025, DTE Energy had $383 million of performance bonds outstanding, including $248 million for DTE Electric. Performance bonds are not individually material, except for $91 million of bonds supporting Energy Trading operations. These bonds are meant to provide counterparties with additional assurance that Energy Trading will meet its contractual obligations for various commercial transactions. The terms of the bonds align with those of the underlying Energy Trading contracts and are estimated to be outstanding approximately 1 to 3 years. In the event that any performance bonds are called for nonperformance, the Registrants would be obligated to reimburse the issuer of the performance bond. The Registrants are released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.

Labor Contracts

There are several bargaining units for DTE Energy subsidiaries' approximately 4,850 represented employees, including DTE Electric's approximately 2,600 represented employees. This represents 50% and 58% of DTE Energy's and DTE Electric's total employees, respectively. Of these represented employees, approximately 16% have contracts expiring within one year for DTE Energy. Approximately 22% of the represented employees have contracts expiring within one year for DTE Electric.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Purchase Commitments

As of December 31, 2025, the Registrants were party to numerous long-term purchase commitments relating to a variety of goods and services required for their businesses. These agreements primarily consist of fuel supply commitments and renewable energy contracts for the Registrants, as well as energy trading contracts for DTE Energy. The Registrants estimate the following commitments from 2026 through 2057, as detailed in the following tables:


	2026		2027		2028		2029		2030		2031 and Thereafter		Total
DTE Energy	(In millions)
Long-term power purchase agreements(a)	$	116	$	128	$	151	$	151	$	151	$	1,699	$	2,396
Other purchase commitments(b)	3,506		1,441		529		266		249		701		6,692
Total commitments	$	3,622	$	1,569	$	680	$	417	$	400	$	2,400	$	9,088

	2026		2027		2028		2029		2030		2031 and Thereafter		Total
DTE Electric	(In millions)
Long-term power purchase agreements(a)	$	122	$	133	$	156	$	153	$	153	$	1,704	$	2,421
Other purchase commitments(b)	602		411		147		34		13		117		1,324
Total commitments	$	724	$	544	$	303	$	187	$	166	$	1,821	$	3,745

(a)The agreements represent the minimum obligations with suppliers for renewable energy and renewable energy credits under existing contract terms which expire from 2030 through 2055. DTE Electric's share of plant output ranges from 28% to 100%. Purchase commitments for DTE Electric include affiliate agreements with DTE Sustainable Generation that are eliminated in consolidation for DTE Energy.

(b)Excludes amounts associated with full requirements contracts where no stated minimum purchase volume is required.

Utility capital expenditures and expenditures for non-utility businesses will be approximately $6.8 billion and $5.2 billion in 2026 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2026 annual capital expenditures.

Ludington Plant Contract Dispute

DTE Electric and Consumers Energy Company ("Consumers"), joint owners of the Ludington Hydroelectric Pumped Storage plant ("Ludington"), entered into a 2010 engineering, procurement, and construction agreement with Toshiba International Corporation ("TIC"), under which TIC contracted to perform a major overhaul and upgrade of Ludington. TIC later assigned the contract and all of its obligations to Toshiba America Energy Systems ("TAES"). TAES' work under the contract was incomplete, defective, and non-conforming. DTE Electric and Consumers repeatedly documented TAES' failures to perform under the contract and demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations. DTE Electric and Consumers engaged in extensive efforts to resolve these issues with TAES, including a formal demand to TAES' parent, Toshiba Corporation ("Toshiba"), under a parent guaranty it provided. TAES did not provide a comprehensive plan or otherwise meet its performance obligations. As a result of TAES' defaults, DTE Electric and Consumers terminated the contract.

In order to enforce their rights under the contract and parent guaranty, and to pursue appropriate damages, DTE Electric and Consumers filed a complaint against TAES and Toshiba in the U.S. District Court for the Eastern District of Michigan in 2022. TAES and Toshiba filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties' contract. The motion to dismiss the complaint was denied. The case against TAES went to trial before a jury and in December 2025, a jury returned a verdict in DTE Electric and Consumers' favor finding TAES breached its warranties and other contractual duties in overhauling Ludington. The jury awarded damages for TAES’s breaches of contract, as well as liquidated damages for late completion of work. The jury rejected TAES' affirmative defenses and counterclaim. TAES is pursuing post judgment relief by filing motions for appeal. DTE Electric cannot predict the financial impact or outcome of this matter.

In 2023, the MPSC approved a jointly-filed request by DTE Electric and Consumers for authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba moves forward. DTE Electric currently estimates its share of these repair and replacement costs ranges from $350 million to $400 million. Such costs will be offset by any potential litigation proceeds received from TAES or Toshiba. DTE Electric and Consumers will have the opportunity to seek recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation, including amounts not recovered from TAES or Toshiba.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Other Contingencies

The Registrants are involved in certain other legal, regulatory, administrative, and environmental proceedings before various courts, arbitration panels, and governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additional environmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters. The Registrants cannot predict the final disposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.

For a discussion of contingencies related to regulatory matters and derivatives, see Notes 9 and 13 to the Consolidated Financial Statements, "Regulatory Matters" and "Financial and Other Derivative Instruments," respectively.

NOTE 19 — NUCLEAR OPERATIONS

Property Insurance

DTE Electric maintains property insurance policies specifically for the Fermi 2 plant. These policies cover such items as replacement power and property damage. NEIL is the primary supplier of the insurance policies.

DTE Electric maintains a policy for extra expenses, including replacement power costs necessitated by Fermi 2’s unavailability due to an insured event. This policy has a 12-week waiting period and provides an aggregate $490 million of coverage over a three-year period.

DTE Electric has $1.5 billion in primary coverage and $1.25 billion of excess coverage for stabilization, decontamination, debris removal, repair and/or replacement of property, and decommissioning. The combined coverage limit for total property damage is $2.75 billion. The total limit for property damage for non-nuclear events is $1.8 billion and an aggregate of $291 million of coverage for extra expenses over a two-year period.

On December 20, 2019, the Terrorism Risk Insurance Program Reauthorization Act of 2019 was signed, extending TRIA through December 31, 2027. For multiple terrorism losses caused by acts of terrorism not covered under the TRIA occurring within one year after the first loss from terrorism, the NEIL policies would make available to all insured entities up to $3.2 billion, plus any amounts recovered from reinsurance, government indemnity, or other sources to cover losses.

Under NEIL policies, DTE Electric could be liable for maximum assessments of up to $39 million per event if the loss associated with any one event at any nuclear plant should exceed the accumulated funds available to NEIL.

Public Liability Insurance

As required by federal law, DTE Electric maintains $500 million of public liability insurance for a nuclear incident. Further, under the Price-Anderson Amendments Act of 2005, deferred premium charges up to $166 million could be levied against each licensed nuclear reactor, but not more than $25 million per year per reactor. Thus, deferred premium charges could be levied against all owners of licensed nuclear reactors in the event of a nuclear incident at any of these facilities.

Nuclear Fuel Disposal Costs

In accordance with the Federal Nuclear Waste Policy Act of 1982, DTE Electric has a contract with the DOE for the future storage and disposal of spent nuclear fuel from Fermi 2 that required DTE Electric to pay the DOE a fee of 1 mill per kWh of Fermi 2 electricity generated and sold. The fee was a component of nuclear fuel expense. The 1 mill per kWh DOE fee was reduced to zero effective May 16, 2014.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The DOE's Yucca Mountain Nuclear Waste Repository program for the acceptance and disposal of spent nuclear fuel was terminated in 2011. DTE Electric is a party in the litigation against the DOE for both past and future costs associated with the DOE's failure to accept spent nuclear fuel under the timetable set forth in the Federal Nuclear Waste Policy Act of 1982. In July 2012, DTE Electric executed a settlement agreement with the federal government for costs associated with the DOE's delay in acceptance of spent nuclear fuel from Fermi 2 for permanent storage. The settlement agreement, including extensions, has provided for a claims process and payment of delay-related costs experienced by DTE Electric through 2025. DTE Electric's claims are being settled and paid on a timely basis. The settlement proceeds reduce the cost of the dry cask storage facility assets and provide reimbursement for related operating expenses.

DTE Electric currently employs a spent nuclear fuel storage strategy utilizing a fuel pool and a dry cask storage facility. The spent nuclear fuel storage strategy is expected to provide sufficient spent fuel storage capability for the life of the plant as defined by DTE Electric's operating license agreement.

The federal government continues to maintain its legal obligation to accept spent nuclear fuel from Fermi 2 for permanent storage. Issues relating to long-term waste disposal policy and to the disposition of funds contributed by DTE Electric ratepayers to the federal waste fund await future governmental action.

NOTE 20 — RETIREMENT BENEFITS AND TRUSTEED ASSETS

DTE Energy's subsidiary, DTE Energy Corporate Services, LLC, sponsors defined benefit pension plans and other postretirement benefit plans covering certain employees of the Registrants. Plan participants of all plans are solely DTE Energy and affiliate participants.

The table below represents the pension and other postretirement benefit plans of each Registrant at December 31, 2025:


	Registrants
	DTE Energy	DTE Electric
Qualified Pension Plans
DTE Energy Company Retirement Plan	X	X
DTE Gas Company Retirement Plan for Employees Covered by Collective Bargaining Agreements	X
Shenango Inc. Pension Plan(a)	X
Non-qualified Pension Plans
DTE Energy Company Supplemental Retirement Plan(b)	X	X
DTE Energy Company Executive Supplemental Retirement Plan(b)	X	X
DTE Energy Company Supplemental Severance Benefit Plan	X
Other Postretirement Benefit Plans
The DTE Energy Company Comprehensive Non-Health Welfare Plan	X	X
The DTE Energy Company Comprehensive Retiree Group Health Care Plan	X	X
DTE Supplemental Retiree Benefit Plan	X	X
DTE Energy Company Retiree Reimbursement Arrangement Plan	X	X

(a)Sponsored by Shenango, LLC

(b)Sponsored by DTE Energy Company

DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are primarily sponsored by the LLC. DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is that assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position. For non-qualified plans, non-service costs recognized in earnings, these costs have historically been presented in Other (Income) and Deductions — Non-operating retirement benefits, net in DTE Energy's Consolidated Statements of Operations and Operation and maintenance in the DTE Electric Consolidated Statements of Operations.

Pension Plan Benefits

DTE Energy has qualified defined benefit retirement plans for eligible represented and non-represented employees. The plans are noncontributory and provide traditional retirement benefits based on the employee's years of benefit service, average final compensation, and age at retirement. In addition, certain represented and non-represented employees are covered under cash balance provisions that determine benefits on annual employer contributions and interest credits. DTE Energy also maintains supplemental non-qualified, noncontributory, retirement benefit plans for certain management employees. These plans provide for benefits that supplement those provided by DTE Energy’s other retirement plans.

Net pension cost (credit) for DTE Energy includes the following components:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Service cost	$	49	$	58	$	57
Interest cost	216		208		214
Expected return on plan assets	(291)		(341)		(352)
Amortization of:
Net actuarial loss	87		59		7
Prior service credit	(1)		(2)		(2)
Settlements	—		—		7
Net pension cost (credit)	$	60	$	(18)	$	(69)


	December 31,
	2025		2024
	(In millions)
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income (loss)
Net actuarial (gain) loss	$	58	$	(49)
Amortization of net actuarial loss and settlements	(87)		(59)

Amortization of prior service credit	1		2
Total recognized in Regulatory assets and Other comprehensive income (loss)	$	(28)	$	(106)
Total recognized in net periodic pension credit, Regulatory assets, and Other comprehensive income (loss)	$	32	$	(124)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table reconciles the obligations, assets, and funded status of the plans as well as the amounts recognized as a pension liability in DTE Energy's Consolidated Statements of Financial Position at December 31:


	DTE Energy
	2025		2024
	(In millions)
Accumulated benefit obligation, end of year	$	3,851	$	3,803
Change in projected benefit obligation
Projected benefit obligation, beginning of year	$	3,982	$	4,318
Service cost	49		58
Interest cost	216		208

Actuarial (gain) loss	111		(254)


Benefits paid	(315)		(348)

Projected benefit obligation, end of year	$	4,043	$	3,982
Change in plan assets
Plan assets at fair value, beginning of year	$	3,758	$	3,960
Actual return on plan assets	343		137
Company contributions	9		9
Benefits paid	(315)		(348)

Plan assets at fair value, end of year	$	3,795	$	3,758
Funded status	$	(248)	$	(224)
Amount recorded as:
Current liabilities	$	(13)	$	(10)
Noncurrent liabilities	(235)		(214)
	$	(248)	$	(224)
Amounts recognized in Accumulated other comprehensive income, pre-tax
Net actuarial loss	$	82	$	76

	$	82	$	76

Amounts recognized in Regulatory assets(a)
Net actuarial loss	$	1,283	$	1,318
Prior service credit	(2)		(3)
	$	1,281	$	1,315

(a)See Note 9 to the Consolidated Financial Statements, "Regulatory Matters."

The increase in the pension benefit obligation for the year ended December 31, 2025, was primarily due to an actuarial loss driven by a decrease in discount rates. The decrease in DTE Energy's pension benefit obligation in 2024 was primarily due to an actuarial gain driven by an increase in discount rates.

The Registrants’ policy is to fund pension costs by contributing amounts consistent with the provisions of the Pension Protection Act of 2006, and additional amounts when it deems appropriate. In 2025 and 2024, DTE Energy made a nominal contribution to the qualified pension plans. In 2025 and 2023, DTE Gas transferred $25 million and $50 million, respectively, of qualified pension plan funds to DTE Electric in exchange for cash consideration. In addition, DTE Energy anticipates a transfer of up to $25 million of non-represented qualified pension plan funds from DTE Gas to DTE Electric in 2026, subject to management discretion and any changes in financial market conditions.

DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in regulatory assets and liabilities, operation and maintenance expense and capital expenditures were a cost of $53 million for the year ended December 31, 2025 and credits of $5 million, and $39 million for the years ended December 31, 2024, and 2023, respectively. These amounts may include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

At December 31, 2025, the benefits related to DTE Energy's qualified and non-qualified pension plans expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows:


	(In millions)
2026	$	326
2027	326
2028	330
2029	326
2030	321
2031-2035	1,599
Total	$	3,228

Assumptions used in determining the projected benefit obligation and net pension costs of DTE Energy for the years ended December 31, 2025, 2024, and 2023 are:


	2025	2024	2023
Projected benefit obligation
Discount rate	5.43%	5.65%	5.00%
Rate of compensation increase	3.55%	3.55%	3.80%
Cash balance interest crediting rate	3.60%	4.50%	3.60%
Net pension costs
Discount rate	5.65%	5.00%	5.19%
Rate of compensation increase	3.55%	3.80%	3.80%
Expected long-term rate of return on plan assets	7.80%	8.00%	7.60%
Cash balance interest crediting rate	4.50%	3.60%	3.40%

DTE Energy employs a formal process in determining the long-term rate of return for various asset classes. Management reviews historic financial market risks and returns and long-term historic relationships between the asset classes of equities, fixed income, and other assets, consistent with the widely accepted capital market principle that asset classes with higher volatility generate a greater return over the long-term. Current market factors such as inflation, interest rates, asset class risks, and asset class returns are evaluated and considered before long-term capital market assumptions are determined. The long-term portfolio return is also established employing a consistent formal process, with due consideration of diversification, active investment management, and rebalancing. Peer data is reviewed to check for reasonableness. As a result of this process, the Registrants have a long-term rate of return assumption for the pension plans of 7.80% for 2026. The Registrants believe this rate is a reasonable assumption for the long-term rate of return on plan assets given the current investment strategy.

The DTE Energy Company Affiliates Employee Benefit Plans Master Trust employs a liability driven investment program whereby the characteristics of plan liabilities are considered when determining investment policy. Risk tolerance is established through consideration of future plan cash flows, plan funded status, and corporate financial considerations. The investment portfolio contains a diversified blend of equity, fixed income, and other investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks and large and small market capitalizations. Fixed income investments generally include U.S. Treasuries, other governmental debt, diversified corporate bonds, bank loans, and mortgage-backed securities. Other investments are used to enhance long-term returns while improving portfolio diversification. Derivatives may be utilized in a risk controlled manner, to potentially increase the portfolio beyond the market value of invested assets and/or reduce portfolio investment risk. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Target allocations for DTE Energy's pension plan assets as of December 31, 2025 are listed below:


U.S. Large Capitalization (Cap) Equity Securities	8	%
U.S. Small Cap and Mid Cap Equity Securities	1
Non-U.S. Equity Securities	6
Fixed Income Securities	57

Hedge Funds and Similar Investments	8
Private Equity and Other	20
	100	%

The following table provides the fair value measurement amounts for DTE Energy's pension plan assets at December 31, 2025 and 2024(a):


	December 31, 2025						December 31, 2024
	Level 1		Level 2		Other(b)		Total		Level 1		Level 2		Other(b)		Total
DTE Energy asset category:	(In millions)
Short-term Investments(c)	$	83	$	—	$	—	$	83	$	97	$	—	$	—	$	97
Equity Securities
Domestic(d)	—		—		343		343		—		—		349		349
International(e)	34		—		209		243		35		—		188		223
Fixed Income Securities
Governmental(f)	537		81		—		618		627		76		—		703
Corporate(g)	—		1,504		—		1,504		—		1,350		—		1,350

Hedge Funds and Similar Investments(h)	138		14		172		324		137		14		167		318
Private Equity and Other(i)	—		—		680		680		—		—		718		718


DTE Energy Total	$	792	$	1,599	$	1,404	$	3,795	$	896	$	1,440	$	1,422	$	3,758

(a)For a description of levels within the fair value hierarchy, see Note 12 to the Consolidated Financial Statements, "Fair Value."

(b)Amounts represent assets valued at NAV as a practical expedient for fair value.

(c)This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category is obtained from quoted prices in actively traded markets.

(d)This category represents portfolios of large, medium and small capitalization domestic equities. Investments in this category include exchange-traded securities held in a commingled fund classified as NAV assets.

(e)This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category include exchange-traded securities for which unadjusted quoted prices can be obtained and exchange-traded securities held in a commingled fund classified as NAV assets.

(f)This category includes U.S. Treasuries, bonds, and other governmental debt. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services.

(g)This category primarily consists of corporate bonds from diversified industries, bank loans, and mortgage-backed securities. Pricing for investments in this category is obtained from quotations from broker or pricing services.

(h)This category utilizes a diversified group of strategies that attempt to capture uncorrelated sources of return and includes publicly traded mutual funds, insurance-linked and asset-backed securities, commingled funds and limited partnership funds. Pricing for mutual funds in this category is obtained from quoted prices in actively traded markets. Pricing for insurance-linked and asset-backed securities is obtained from quotations from broker or pricing services. Commingled funds and limited partnership funds are classified as NAV assets.

(i)This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in private real estate and private debt. All investments in this category are classified as NAV assets.

The pension trust holds debt and equity securities directly and indirectly through commingled funds. Exchange-traded debt and equity securities held directly, as well as publicly traded commingled funds, are valued using quoted market prices in actively traded markets. Non-publicly traded commingled funds hold exchange-traded equity or debt securities and are valued based on stated NAVs. Non-exchange traded fixed income securities are valued by the trustee based upon quotations available from brokers or pricing services. A primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee challenges an assigned price and determines that another price source is considered preferable. DTE Energy has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Other Postretirement Benefits

The Registrants participate in defined benefit plans sponsored by the LLC that provide certain other postretirement health care and life insurance benefits for employees who are eligible for these benefits. The Registrants' policy is to fund certain trusts to meet its other postretirement benefit obligations. DTE Energy did not make any contributions to these trusts during 2025 and does not anticipate making any contributions to the trusts in 2026.

DTE Energy and DTE Electric offer a defined contribution VEBA for eligible represented and non-represented employees, in lieu of defined benefit post-employment health care benefits. The Registrants allocate a fixed amount per year to an account in a defined contribution VEBA for each employee. These accounts are managed either by the Registrant (for non-represented and certain represented groups) or by the Utility Workers of America for Local 223 employees. The following table provides contributions to the VEBA in:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
DTE Energy	$	15	$	15	$	16
DTE Electric	$	7	$	6	$	7

The Registrants also contribute a fixed amount to a Retiree Reimbursement Account for certain non-represented and represented retirees, spouses, and surviving spouses when the youngest of the retiree's covered household becomes eligible for Medicare Part A based on age. The amount of the annual allocation to each participant is determined by the employee's retirement date and increases each year for each eligible participant at the lower of the rate of medical inflation or 2%.

Net other postretirement credit for DTE Energy includes the following components:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Service cost	$	15	$	18	$	17
Interest cost	61		62		65
Expected return on plan assets	(117)		(120)		(111)
Amortization of:
Net actuarial loss	2		6		10
Prior service credit	—		(10)		(19)


Net other postretirement credit	$	(39)	$	(44)	$	(38)


	December 31,
	2025		2024
	(In millions)
Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets and liabilities and Other comprehensive income (loss)
Net actuarial (gain) loss	$	2	$	(103)
Amortization of net actuarial loss	(2)		(6)

Amortization of prior service credit	—		10

Total recognized in Regulatory assets and liabilities and Other comprehensive income (loss)	$	—	$	(99)
Total recognized in net periodic benefit cost, Regulatory assets and liabilities, and Other comprehensive income (loss)	$	(39)	$	(143)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Net other postretirement credit for DTE Electric includes the following components:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Service cost	$	11	$	14	$	13
Interest cost	46		47		49
Expected return on plan assets	(77)		(79)		(73)
Amortization of:
Net actuarial (gain) loss	(2)		1		1
Prior service credit	—		(6)		(14)

Net other postretirement credit	$	(22)	$	(23)	$	(24)


	December 31,
	2025		2024
	(In millions)
Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets and liabilities
Net actuarial gain	$	(1)	$	(98)
Amortization of net actuarial gain/(loss)	2		(1)
Amortization of prior service credit	—		6

Total recognized in Regulatory assets and liabilities	$	1	$	(93)
Total recognized in net periodic benefit cost and Regulatory assets and liabilities	$	(21)	$	(116)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following table reconciles the obligations, assets, and funded status of the plans including amounts recorded as Prepaid postretirement costs or Accrued postretirement liability in the Registrants' Consolidated Statements of Financial Position at December 31:


	DTE Energy				DTE Electric
	2025		2024		2025		2024
	(In millions)
Change in accumulated postretirement benefit obligation
Accumulated postretirement benefit obligation, beginning of year	$	1,123	$	1,283	$	849	$	982
Service cost	15		18		11		14
Interest cost	61		62		46		47

Actuarial (gain) loss	24		(165)		15		(139)

Benefits paid	(82)		(75)		(60)		(55)
Accumulated postretirement benefit obligation, end of year	$	1,141	$	1,123	$	861	$	849
Change in plan assets
Plan assets at fair value, beginning of year	$	1,594	$	1,614	$	1,052	$	1,070
Actual return on plan assets	139		58		92		40

Benefits paid	(79)		(78)		(57)		(58)
Plan assets at fair value, end of year	$	1,654	$	1,594	$	1,087	$	1,052
Funded status	$	513	$	471	$	226	$	203
Amount recorded as:
Noncurrent assets	$	761	$	705	$	463	$	428
Current liabilities	(1)		(1)		—		—
Noncurrent liabilities	(247)		(233)		(237)		(225)
	$	513	$	471	$	226	$	203
Amounts recognized in Accumulated other comprehensive income (loss), pre-tax
Net actuarial gain	$	(13)	$	(14)	$	—	$	—




Amounts recognized in Regulatory assets and liabilities(a)
Net actuarial (gain) loss	$	64	$	65	$	(25)	$	(26)

(a)See Note 9 to the Consolidated Financial Statements, "Regulatory Matters."

The Registrants' postretirement benefit obligation increased for the year ended December 31 2025 due to actuarial losses driven by a decrease in discount rates. The Registrants' postretirement benefit obligations decreased for the year ended December 31, 2024 primarily due to actuarial gains driven by an increase in discount rates.

The following table reflects other postretirement benefit plans with accumulated postretirement benefit obligations in excess of plan assets as of December 31:


	DTE Energy				DTE Electric
	2025		2024		2025		2024
	(In millions)
Accumulated postretirement benefit obligation	$	541	$	530	$	510	$	501
Fair value of plan assets	293		296		273		276
Accumulated postretirement benefit obligation in excess of plan assets	$	248	$	234	$	237	$	225

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

At December 31, 2025, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate for the five fiscal years thereafter for the Registrants are as follows:


	DTE Energy		DTE Electric
	(In millions)
2026	$	80	$	60
2027	83		62
2028	85		64
2029	87		65
2030	89		67
2031-2035	456		347
Total	$	880	$	665

Assumptions used in determining the accumulated postretirement benefit obligation and net other postretirement benefit costs of the Registrants for the years ended December 31, 2025, 2024, and 2023 are:


	2025	2024	2023
Accumulated postretirement benefit obligation
Discount rate	5.43%	5.66%	5.00%
Health care trend rate pre- and post- 65	8.25 / 8.75%	8.50 / 9.00%	7.75 / 8.25%
Ultimate health care trend rate	4.50%	4.50%	4.50%
Year in which ultimate reached pre- and post- 65	2036	2035	2035
Other postretirement benefit costs
Discount rate	5.66%	5.00%	5.19%

Expected long-term rate of return on plan assets	7.50%	7.60%	7.20%
Health care trend rate pre- and post- 65	8.50 / 9.00%	7.75 / 8.25%	6.75 / 7.25%
Ultimate health care trend rate	4.50%	4.50%	4.50%
Year in which ultimate reached pre- and post- 65	2035	2035	2035

The process used in determining the long-term rate of return on assets for the other postretirement benefit plans is similar to that previously described for the pension plans. As a result of this process, the Registrants have a long-term rate of return assumption for the other postretirement benefit plans of 7.40% for 2026. The Registrants believe this rate is a reasonable assumption for the long-term rate of return on plan assets given the current investment strategy.

The DTE Energy Company Master VEBA Trust employs a liability driven investment program whereby the characteristics of plan liabilities are considered when determining investment policy. Risk tolerance is established through consideration of future plan cash flows, plan funded status, and corporate financial considerations. The investment portfolio contains a diversified blend of equity, fixed income, and other investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks and large and small market capitalizations. Fixed income investments generally include U.S. Treasuries, other governmental debt, diversified corporate bonds, bank loans, and mortgage-backed securities. Other investments are used to enhance long-term returns while improving portfolio diversification. Derivatives may be utilized in a risk controlled manner to potentially increase the portfolio beyond the market value of invested assets and/or reduce portfolio investment risk. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews.

Target allocations for the Registrants' other postretirement benefit plan assets as of December 31, 2025 are listed below:


U.S. Large Cap Equity Securities	4	%

Non-U.S. Equity Securities	3
Fixed Income Securities	62
Hedge Funds and Similar Investments	9
Private Equity and Other	22
	100	%

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The following tables provide the fair value measurement amounts for the Registrants' other postretirement benefit plan assets at December 31, 2025 and 2024(a):


	December 31, 2025						December 31, 2024
	Level 1		Level 2		Other(b)		Total		Level 1		Level 2		Other(b)		Total
	(In millions)
DTE Energy asset category:
Short-term Investments(c)	$	37	$	—	$	—	$	37	$	33	$	—	$	—	$	33
Equity Securities
Domestic(d)	—		—		61		61		—		—		67		67
International(e)	7		—		42		49		6		—		34		40
Fixed Income Securities
Governmental(f)	169		37		—		206		210		34		—		244
Corporate(g)	—		549		222		771		—		492		208		700
Hedge Funds and Similar Investments(h)	34		3		105		142		27		3		103		133
Private Equity and Other(i)	—		—		388		388		—		—		377		377


DTE Energy Total	$	247	$	589	$	818	$	1,654	$	276	$	529	$	789	$	1,594

DTE Electric asset category:
Short-term Investments(c)	$	24	$	—	$	—	$	24	$	21	$	—	$	—	$	21
Equity Securities
Domestic(d)	—		—		38		38		—		—		42		42
International(e)	4		—		27		31		4		—		22		26
Fixed Income Securities
Governmental(f)	110		24		—		134		138		22		—		160
Corporate(g)	—		359		151		510		—		324		141		465
Hedge Funds and Similar Investments(h)	21		2		70		93		17		2		69		88
Private Equity and Other(i)	—		—		257		257		—		—		250		250


DTE Electric Total	$	159	$	385	$	543	$	1,087	$	180	$	348	$	524	$	1,052

(a)For a description of levels within the fair value hierarchy see Note 12 to the Consolidated Financial Statements, "Fair Value."

(b)Amounts represent assets valued at NAV as a practical expedient for fair value.

(f)This category includes U.S. Treasuries, bonds and other governmental debt. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services.

(g)This category primarily consists of corporate bonds from diversified industries, bank loans, and mortgage backed securities. Pricing for investments in this category is obtained from quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as NAV assets.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The DTE Energy Company Master VEBA Trust holds debt and equity securities directly and indirectly through commingled funds. Exchange-traded debt and equity securities held directly, as well as publicly traded commingled funds, are valued using quoted market prices in actively traded markets. Non-publicly traded commingled funds hold exchange-traded equity or debt securities and are valued based on NAVs. Non-exchange traded fixed income securities are valued by the trustee based upon quotations available from brokers or pricing services. A primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee challenges an assigned price and determines that another price source is considered preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices.

Defined Contribution Plans

The Registrants also sponsor defined contribution retirement savings plans. Participation in one of these plans is available to substantially all represented and non-represented employees. For substantially all employees, the Registrants match employee contributions up to certain predefined limits based upon eligible compensation and the employee’s contribution rate. Additionally, for eligible represented and non-represented employees who do not participate in the Pension Plans, the Registrants contribute amounts equivalent to 4% (8% for certain DTE Gas represented employees) of an employee's eligible compensation to the employee's defined contribution retirement savings plan. For DTE Energy, the cost of these plans was $80 million, $76 million, and $75 million for the years ended December 31, 2025, 2024, and 2023, respectively. For DTE Electric, the cost of these plans was $37 million for the year ended December 31, 2025, and $35 million for the years ended December 31, 2024 and 2023.

NOTE 21 — STOCK-BASED COMPENSATION

In May 2025, DTE Energy's shareholders approved the replacement of the Long-Term Incentive Plan, as amended and restated effective May 20, 2021 ("Prior Plan") with the 2025 Long Term Incentive Plan ("2025 Plan"). No new awards will be granted under the Prior Plan. At December 31, outstanding stock-based incentives were in the form of restricted stock and performance stock units. The 2025 Plan permits the grant of options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, and other stock-based awards. With the exception of incentive stock options, awards may be granted to employees, the Board of Directors, and consultants. As a result of a stock award, a settlement of an award of performance stock units, or by exercise of a participant's stock option, DTE Energy may deliver common stock from its authorized but unissued common stock and/or from outstanding common stock acquired by or on behalf of DTE Energy in the name of the participant. Key provisions of the stock incentive program are:

Authorized limit is 4,663,434 shares of common stock; and
Prohibits the grant of a stock option with an exercise price that is less than the fair market value of DTE Energy’s stock on the date of the grant.

DTE Energy records compensation expense at fair value over the vesting period for all awards it grants.

The following table summarizes the components of stock-based compensation for DTE Energy:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Stock-based compensation expense	$	60	$	54	$	48
Tax benefit	$	10	$	10	$	9

Restricted Stock Awards

Stock awards granted under the plan are restricted for varying periods, generally for three years. Participants have all rights of a shareholder with respect to a stock award, including the right to receive dividends and vote the shares. Prior to vesting in stock awards, the participant: (i) may not sell, transfer, pledge, exchange, or otherwise dispose of shares and (ii) shall not retain custody of the share certificates.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

The stock awards are recorded at cost that approximates fair value on the date of grant. The cost is amortized to compensation expense over the vesting period.

The fair value of awards vested were not material for the years ended December 31, 2025, 2024, and 2023. Compensation cost charged against income was $17 million for the year ended December 31, 2025 and $14 million for the years ended December 31, 2024 and 2023.

Performance Stock Units

Performance stock units awarded under the plan are for a specified number of shares of DTE Energy common stock that entitle the holder to receive a cash payment, shares of DTE Energy common stock, or a combination thereof. The final value of the award is determined by the achievement of certain performance objectives and market conditions. The awards vest at the end of a specified period, usually three years. Awards granted in 2025, 2024, and 2023 were primarily deemed to be equity awards. The DTE Energy stock price and number of probable shares attributable to market conditions for such equity awards are fair valued only at the grant date. DTE Energy accounts for performance stock unit awards by accruing compensation expense over the vesting period based on: (i) the number of shares expected to be paid which is based on the probable achievement of performance objectives; and (ii) the closing stock price market value. The settlement of the award is based on the closing price at the settlement date.

DTE Energy recorded activity relating to performance stock unit awards as follows:


	Year Ended December 31,
	2025		2024		2023
	(In millions, except per share amounts)
Weighted average grant date fair value of awards granted (per share)	$	123.02	$	106.04	$	112.73
Awards settled in cash(a)	$	—	$	—	$	9
Awards settled in stock(a)	$	39	$	63	$	59
Compensation expense	$	43	$	40	$	34

(a)Sum of awards settled in cash and stock approximates the intrinsic value of the awards.

During the vesting period, the recipient of a performance stock unit award has no shareholder rights. During the period beginning on the date the performance shares are awarded and ending on the certification date of the performance objectives, the number of performance stock units awarded will be increased, assuming full dividend reinvestment at the fair market value on the dividend payment date. The cumulative number of performance stock units will be adjusted to determine the final payment based on the performance objectives achieved. Performance stock unit awards are nontransferable and are subject to risk of forfeiture.

The following table summarizes DTE Energy’s performance stock unit activity for the period ended December 31, 2025:


	Performance Stock Units	Weighted Average Grant Date Fair Value
Balance at December 31, 2024	976,843	$	122.25
Grants	391,290	$	123.02
Forfeitures	(58,011)	$	118.07
Payouts	(301,030)	$	120.34
Balance at December 31, 2025	1,009,092	$	123.36

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Unrecognized Compensation Costs

As of December 31, 2025, DTE Energy's total unrecognized compensation cost related to non-vested stock incentive plan arrangements and the weighted average recognition period was as follows:


	Unrecognized Compensation Cost		Weighted Average to be Recognized
	(In millions)		(In years)

Stock awards	$	23	1.97
Performance stock units	44		1.68
	$	67	1.78

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation. DTE Electric's allocation for 2025, 2024, and 2023 for stock-based compensation expense was $41 million, $37 million, and $31 million, respectively.

NOTE 22 — SEGMENT AND RELATED INFORMATION

DTE Energy sets strategic goals, allocates resources, and evaluates performance based on the four reportable segments below. DTE Electric is a standalone registrant with one reportable segment.

Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million residential, commercial, and industrial customers in southeastern Michigan.

Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.

DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy solutions to industrial, commercial, and institutional customers.

Energy Trading segment consists of energy marketing and trading operations.

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.

The chief operating decision maker (CODM) at DTE Energy is the Financial Objectives committee, which is comprised of the Chief Executive Officer, Chief Financial Officer, and other executive leaders of DTE Energy. The CODM at DTE Electric is comprised of the Chief Executive Officer and Chief Financial Officer. The CODMs assess performance for the reportable segments detailed above and decide how to allocate resources based on Net Income (Loss) Attributable to DTE Energy Company and monitoring budget versus actual results. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider. Such billing primarily consists of power sales, sale and transportation of natural gas, and renewable natural gas sales in the segments below, as well as charges from Electric to other segments for use of the shared capital assets of DTE Electric.


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Electric segment(a)	$	71	$	71	$	72
Gas segment	22		16		17
DTE Vantage segment	77		43		68
Energy Trading segment	176		100		85

	$	346	$	230	$	242

(a)Inter-segment billing for the Electric segment relating to Non-utility operations includes $4 million for the year ended December 31, 2025 and $3 million for the years ended December 31, 2024 and 2023.

All inter-segment transactions and balances are eliminated in consolidation for DTE Energy. Centrally incurred costs such as labor and overheads are assigned directly to DTE Energy's business segments or allocated based on various cost drivers, depending on the nature of service provided.

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are also determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company. Carryforward items, such as tax credits and charitable contributions, are recorded at their individual company basis and adjusted at Corporate and Other for consolidated tax purposes.

The Reclassifications and Eliminations group below also includes the reclassification of deferred tax assets and prepaid pension assets, which are netted against deferred tax liabilities and accrued pension liabilities, respectively, for presentation on the DTE Energy Consolidated Statements of Financial Position. Refer to Note 10 to the Consolidated Financial Statements, "Income Taxes," for additional information regarding the Registrants' deferred taxes and to Note 20, "Retirement Benefits and Trusteed Assets," for additional information regarding pension plans.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

Financial data of DTE Energy's business segments follows:


	Electric(a)		Gas	DTE Vantage	Energy Trading	Total Reportable Segments		Corporate and Other	Reclassifications and Eliminations	Total
	(In millions)
2025 Segment profit (loss)
Operating Revenues — Utility operations	$	6,885	2,052	—	—	$	8,937	—	(88)	$	8,849
Operating Revenues — Non-utility operations	$	50	—	696	6,477	$	7,223	—	(258)	$	6,965
Depreciation and amortization	$	1,553	225	59	4	$	1,841	—	—	$	1,841
Interest expense	$	555	132	30	10	$	727	409	(80)	$	1,056
Interest income	$	(9)	(11)	(87)	(7)	$	(114)	(69)	80	$	(103)
Equity earnings of equity method investees	$	—	1	19	—	$	20	27	—	$	47
Other segment items (pre-tax)(b)	$	3,605	1,322	582	6,306	$	11,815	(46)	(346)	$	11,423
Income Tax Expense (Benefit)	$	73	88	(61)	41	$	141	(53)	—	$	88
Net Income (Loss) Attributable to DTE Energy Company	$	1,158	295	154	123	$	1,730	(268)	—	$	1,462
2025 Other segment financial data
Investment in equity method investees	$	4	19	77	—	$	100	22	—	$	122
Capital expenditures and acquisitions	$	3,892	661	80	6	$	4,639	—	—	$	4,639
Goodwill	$	1,208	743	25	17	$	1,993	—	—	$	1,993
Total Assets	$	39,370	8,987	2,426	1,313	$	52,096	5,145	(3,175)	$	54,066

2024 Segment profit (loss)
Operating Revenues — Utility operations	$	6,277	1,798	—	—	$	8,075	—	(85)	$	7,990
Operating Revenues — Non-utility operations	$	16	—	753	3,843	$	4,612	—	(145)	$	4,467
Depreciation and amortization	$	1,447	221	59	5	$	1,732	—	—	$	1,732
Interest expense	$	498	118	28	14	$	658	351	(58)	$	951
Interest income	$	(7)	(10)	(76)	(15)	$	(108)	(86)	58	$	(136)
Equity earnings (losses) of equity method investees	$	—	1	15	—	$	16	(1)	—	$	15
Other segment items (pre-tax)(b)	$	3,314	1,134	629	3,672	$	8,749	6	(230)	$	8,525
Income Tax Expense (Benefit)	$	(31)	77	(37)	42	$	51	(85)	—	$	(34)
Net Income (Loss) Attributable to DTE Energy Company	$	1,072	257	135	125	$	1,589	(185)	—	$	1,404
2024 Other segment financial data
Investment in equity method investees	$	5	18	82	—	$	105	23	—	$	128
Capital expenditures and acquisitions	$	3,659	740	65	3	$	4,467	—	—	$	4,467
Goodwill	$	1,208	743	25	17	$	1,993	—	—	$	1,993
Total Assets	$	35,400	8,474	2,065	1,159	$	47,098	4,723	(2,975)	$	48,846

(a)The Electric segment consists principally of DTE Electric. Refer to the DTE Electric Consolidated Statements of Operations and the DTE Electric Consolidated Statements of Financial Position for the standalone DTE Electric amounts.

(b)Other segment items include Fuel, purchased power, and gas — utility; Fuel, purchased power, gas, and other — non-utility; Operation and maintenance; Taxes other than income; Asset (gains) losses and impairments, net; Non-operating retirement benefits, net; Other income; and Other expenses.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)


	Electric(a)		Gas	DTE Vantage	Energy Trading	Total Reportable Segments		Corporate and Other	Reclassifications and Eliminations	Total
	(In millions)
















2023 Segment profit (loss)
Operating Revenues — Utility operations	$	5,804	1,748	—	—	$	7,552	—	(86)	$	7,466
Operating Revenues — Non-utility operations	$	14	—	809	4,612	$	5,435	—	(156)	$	5,279
Depreciation and amortization	$	1,340	209	53	4	$	1,606	—	—	$	1,606
Interest expense	$	432	102	15	18	$	567	270	(46)	$	791
Interest income	$	(20)	(9)	(32)	(9)	$	(70)	(33)	46	$	(57)
Equity earnings (losses) of equity method investees	$	—	1	7	—	$	8	(5)	—	$	3
Other segment items (pre-tax)(b)	$	3,216	1,058	635	4,151	$	9,060	18	(242)	$	8,836
Income Tax Expense (Benefit)	$	78	93	(22)	112	$	261	(92)	—	$	169
Net Income (Loss) Attributable to DTE Energy Company	$	772	294	153	336	$	1,555	(158)	—	$	1,397
2023 Other segment financial data
Investment in equity method investees	$	5	16	118	—	$	139	27	—	$	166
Capital expenditures and acquisitions	$	3,128	746	57	3	$	3,934	—	—	$	3,934
Goodwill	$	1,208	743	25	17	$	1,993	—	—	$	1,993
Total Assets	$	32,292	7,722	1,122	1,166	$	42,302	4,150	(1,697)	$	44,755

NOTE 23 — RELATED PARTY TRANSACTIONS

DTE Electric has agreements with affiliated companies to buy and sell power, and for the purchase and transportation of fuel for use at its natural gas-fired combined cycle plant and other generation facilities. DTE Electric also has agreements with certain DTE Energy affiliates where it charges the affiliates for their use of the shared capital assets of DTE Electric. Various other corporate support expenses are accumulated by a shared services company and charged to various subsidiaries of DTE Energy, including DTE Electric.

The following is a summary of DTE Electric's transactions with affiliated companies:


	Year Ended December 31,
	2025		2024		2023
	(In millions)
Revenues and Other Income
Energy sales	$	12	$	11	$	11
Other services and interest	$	—	$	—	$	3
Shared capital assets	$	55	$	58	$	58
Costs
Fuel and purchased power	$	85	$	65	$	50
Other services and interest	$	20	$	4	$	2
Corporate expenses	$	349	$	342	$	299
Other
Dividends declared	$	846	$	776	$	1,002
Dividends paid	$	846	$	776	$	1,002
Capital contribution from DTE Energy	$	954	$	634	$	759

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements — (Continued)

DTE Electric's Accounts receivable and Accounts payable related to affiliates are payable upon demand and are generally settled in cash within a monthly business cycle. Notes receivable and Short-term borrowings related to affiliates are subject to a credit agreement with DTE Energy whereby short-term excess cash or cash shortfalls are remitted to or funded by DTE Energy. This credit arrangement involves the charge and payment of interest based on monthly commercial paper rates. The weighted average interest rate for DTE Electric's affiliate borrowings was 3.9% and 4.7% at December 31, 2025 and 2024, respectively. Refer to DTE Electric's Consolidated Statements of Financial Position for affiliate balances at December 31, 2025 and 2024.

DTE Electric records federal, state, and local income taxes payable to or receivable from DTE Energy based on its federal, state, and local tax provisions. Refer to Note 10 to the Consolidated Financial Statements, "Income Taxes," for additional information. For a discussion of other related party transactions impacting DTE Electric, see Notes 20 and 21 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" and "Stock-Based Compensation," respectively.

Table of Contents

Previous: Item 7A. Quantitative and Qualitative Disclosures About Market Risk · Next: Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure