Item 1. Financial Statements

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Item 1. Financial Statements

DTE Energy Company

Consolidated Statements of Operations (Unaudited)


	Three Months Ended March 31,
		2025		2024
		(In millions, except per share amounts)
Operating Revenues
Utility operations		$	2,307	$	2,156
Non-utility operations		2,133		1,084
		4,440		3,240
Operating Expenses
Fuel, purchased power, and gas — utility		695		600
Fuel, purchased power, gas, and other — non-utility		1,957		989
Operation and maintenance		575		590
Depreciation and amortization		452		423
Taxes other than income		138		122
Asset (gains) losses and impairments, net		(1)		(1)
		3,816		2,723
Operating Income		624		517

Other (Income) and Deductions
Interest expense		250		218
Interest income		(23)		(18)


Other income		(44)		(27)
Other expenses		14		10
		197		183
Income Before Income Taxes		427		334

Income Tax Expense (Benefit)		(18)		21









Net Income Attributable to DTE Energy Company		$	445	$	313

Basic Earnings per Common Share


Net Income Attributable to DTE Energy Company		$	2.14	$	1.51

Diluted Earnings per Common Share


Net Income Attributable to DTE Energy Company		$	2.14	$	1.51

Weighted Average Common Shares Outstanding
Basic		207		206
Diluted		207		207

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
		2025		2024
		(In millions)
Net Income		$	445	$	313

Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $— for both periods		1		1
Net unrealized gains (losses) on derivatives, net of taxes of $(1) and $8, respectively		(3)		26

Foreign currency translation		—		(2)
Other comprehensive income (loss)		(2)		25



Comprehensive Income Attributable to DTE Energy Company		$	443	$	338

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited)


	March 31,		December 31,
	2025		2024
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	33	$	24
Restricted cash	57		64
Accounts receivable (less allowance for doubtful accounts of $75 and $70, respectively)
Customer	1,731		1,690
Other	157		137
Inventories
Fuel and gas	240		443
Materials, supplies, and other	915		802
Derivative assets	160		162
Regulatory assets	53		50


Other	271		235

	3,617		3,607
Investments
Nuclear decommissioning trust funds	2,246		2,256
Investments in equity method investees	128		128
Other	176		176
	2,550		2,560
Property
Property, plant, and equipment	41,379		40,840
Accumulated depreciation and amortization	(10,280)		(9,947)
	31,099		30,893
Other Assets
Goodwill	1,993		1,993
Regulatory assets	7,167		6,771
Securitized regulatory assets	673		690
Intangible assets	141		144
Notes receivable	973		898
Derivative assets	78		85
Prepaid postretirement costs	732		705
Operating lease right-of-use assets	218		188
Other	314		312

	12,289		11,786
Total Assets	$	49,555	$	48,846

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)


	March 31,		December 31,
	2025		2024
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,300	$	1,387
Accrued interest	241		224
Dividends payable	226		226
Short-term borrowings	513		1,067

Current portion long-term debt, including securitization bonds and finance leases	946		1,296
Derivative liabilities	145		118
Gas inventory equalization	121		—
Regulatory liabilities	127		181
Operating lease liabilities	24		21

Other	509		586

	4,152		5,106
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	20,247		19,153
Securitization bonds	619		635
Junior subordinated debentures	884		884
Finance lease liabilities	15		18
	21,765		20,690
Other Liabilities
Deferred income taxes	2,949		2,958
Regulatory liabilities	2,993		2,856
Asset retirement obligations	4,119		4,031
Unamortized investment tax credit	404		269
Derivative liabilities	75		57
Accrued pension liability	204		214
Accrued postretirement liability	226		233
Nuclear decommissioning	351		353
Operating lease liabilities	189		167
Other	201		208

	11,711		11,346
Commitments and Contingencies (Notes 5 and 12)

Equity
Common stock (No par value, 400,000,000 shares authorized, and 207,515,682 and 207,171,582 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively)	6,786		6,779
Retained earnings	5,163		4,946
Accumulated other comprehensive loss	(28)		(26)
Total DTE Energy Company Equity	11,921		11,699
Noncontrolling interests	6		5

Total Equity	11,927		11,704
Total Liabilities and Equity	$	49,555	$	48,846

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended March 31,
	2025		2024
	(In millions)
Operating Activities
Net Income	$	445	$	313
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	452		423
Nuclear fuel amortization	17		12
Allowance for equity funds used during construction	(24)		(18)
Deferred income taxes	(19)		23
Equity (earnings) losses of equity method investees	(7)		8
Dividends from equity method investees	1		—

Asset (gains) losses and impairments, net	(1)		(1)
Changes in assets and liabilities:
Accounts receivable, net	(61)		172
Inventories	90		7
Prepaid postretirement benefit costs	(27)		(20)
Accounts payable	(2)		(179)
Gas inventory equalization	121		90
Accrued pension liability	(10)		(22)
Accrued postretirement liability	(7)		(7)
Derivative assets and liabilities	54		94
Regulatory assets and liabilities	78		146
Other current and noncurrent assets and liabilities	(80)		1
Net cash from operating activities	1,020		1,042
Investing Activities
Plant and equipment expenditures — utility	(857)		(1,039)
Plant and equipment expenditures — non-utility	(16)		(12)


Proceeds from sale of nuclear decommissioning trust fund assets	139		108
Investment in nuclear decommissioning trust funds	(142)		(110)
Distributions from equity method investees	3		3
Contributions to equity method investees	—		(3)
Notes receivable	(82)		(356)
Investment in time deposits	—		(200)

Other	(13)		(7)
Net cash used for investing activities	(968)		(1,616)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	1,093		2,181
Redemption of long-term debt	(365)		(100)


Short-term borrowings, net	(554)		(993)


Dividends paid on common stock	(217)		(202)






Other	(7)		(14)
Net cash from (used for) financing activities	(50)		872
Net Increase in Cash, Cash Equivalents, and Restricted Cash	2		298
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	88		51
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	90	$	349

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	375	$	398

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Changes in Equity (Unaudited)


				Retained Earnings		Accumulated Other Comprehensive Loss			Noncontrolling Interests
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2024	207,172	$	6,779	$	4,946	$	(26)		$	5	$	11,704
Net Income	—	—		445		—			—		445
Dividends declared on common stock ($1.09 per Common Share)	—	—		(226)		—			—		(226)
Issuance of common stock	73	9		—		—			—		9


Other comprehensive loss, net of tax	—	—		—		(2)			—		(2)
Stock-based compensation and other	271	(2)		(2)		—			1		(3)
Balance, March 31, 2025	207,516	$	6,786	$	5,163	$	(28)		$	6	$	11,927


				Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2023	206,357	$	6,713	$	4,404	$	(67)		$	5	$	11,055

Net Income	—	—		313		—			—		313
Dividends declared on common stock ($1.02 per Common Share)	—	—		(211)		—			—		(211)
Issuance of common stock	84	9		—		—			—		9


Other comprehensive income, net of tax	—	—		—		25			—		25
Stock-based compensation and other	496	(12)		(1)		—			—		(13)
Balance, March 31, 2024	206,937	$	6,710	$	4,505	$	(42)		$	5	$	11,178

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Operations (Unaudited)


	Three Months Ended March 31,
		2025		2024
		(In millions)
Operating Revenues — Utility operations		$	1,454	$	1,466

Operating Expenses
Fuel and purchased power — utility		415		370
Operation and maintenance		343		380
Depreciation and amortization		378		350
Taxes other than income		94		84

		1,230		1,184
Operating Income		224		282

Other (Income) and Deductions
Interest expense		132		117
Interest income		(1)		(2)
Non-operating retirement benefits, net		(1)		2
Other income		(36)		(32)
Other expenses		12		9
		106		94
Income Before Income Taxes		118		188

Income Tax Expense (Benefit)		(3)		18

Net Income		$	121	$	170

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
		2025		2024
		(In millions)
Net Income		$	121	$	170


Other comprehensive income		—		—
Comprehensive Income		$	121	$	170

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited)


	March 31,		December 31,
	2025		2024
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	9	$	11
Restricted cash	42		48
Accounts receivable (less allowance for doubtful accounts of $43 and $46, respectively)
Customer	741		734
Affiliates	2		6
Other	74		58
Inventories
Fuel	121		193
Materials and supplies	584		537
Notes receivable
Affiliates	—		42

Regulatory assets	30		39
Prepaid property tax	115		67
Other	25		34
	1,743		1,769
Investments
Nuclear decommissioning trust funds	2,246		2,256
Other	66		67
	2,312		2,323
Property
Property, plant, and equipment	31,225		30,801
Accumulated depreciation and amortization	(7,688)		(7,404)
	23,537		23,397
Other Assets
Regulatory assets	6,598		6,187
Securitized regulatory assets	673		690


Prepaid postretirement costs — affiliates	442		428
Operating lease right-of-use assets	181		159
Other	307		268
	8,201		7,732
Total Assets	$	35,793	$	35,221

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)


	March 31,		December 31,
	2025		2024
	(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates	$	98	$	64
Other	592		681
Accrued interest	123		128

Current portion long-term debt, including securitization bonds and finance leases	75		425
Regulatory liabilities	121		156
Short-term borrowings
Affiliates	960		—
Other	513		666
Operating lease liabilities	19		18
Other	187		204
	2,688		2,342
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	10,827		10,825
Securitization bonds	619		635
Finance lease liabilities	6		8
	11,452		11,468
Other Liabilities
Deferred income taxes	3,380		3,393
Regulatory liabilities	1,884		1,753
Asset retirement obligations	3,876		3,791
Unamortized investment tax credit	404		269
Nuclear decommissioning	351		353
Accrued pension liability — affiliates	244		248
Accrued postretirement liability — affiliates	218		225
Operating lease liabilities	158		142
Other	74		83
	10,589		10,257
Commitments and Contingencies (Notes 5 and 12)

Shareholder’s Equity
Common stock ($10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding for both periods)	7,995		7,995
Retained earnings	3,069		3,159

Total Shareholder’s Equity	11,064		11,154
Total Liabilities and Shareholder’s Equity	$	35,793	$	35,221

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended March 31,
	2025		2024
	(In millions)
Operating Activities
Net Income	$	121	$	170
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	378		350
Nuclear fuel amortization	17		12
Allowance for equity funds used during construction	(24)		(18)
Deferred income taxes	(19)		18

Changes in assets and liabilities:
Accounts receivable, net	(19)		7
Inventories	25		(32)
Accounts payable	14		59
Prepaid postretirement benefit costs — affiliates	(14)		(10)
Accrued pension liability — affiliates	(4)		(13)
Accrued postretirement liability — affiliates	(7)		(8)
Regulatory assets and liabilities	88		127
Other current and noncurrent assets and liabilities	(45)		(84)
Net cash from operating activities	511		578
Investing Activities
Plant and equipment expenditures	(732)		(868)



Proceeds from sale of nuclear decommissioning trust fund assets	139		108
Investment in nuclear decommissioning trust funds	(142)		(110)

Other	(4)		(12)
Net cash used for investing activities	(739)		(882)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	—		993
Redemption of long-term debt	(365)		(100)


Short-term borrowings, net — affiliates	960		—
Short-term borrowings, net — other	(153)		(175)
Dividends paid on common stock	(211)		(194)
Other	(11)		(12)
Net cash from financing activities	220		512
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	(8)		208
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	59		32
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	51	$	240

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	300	$	328

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Changes in Shareholder's Equity (Unaudited)


				Additional Paid-in Capital		Retained Earnings
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2024	138,632	$	1,386	$	6,609	$	3,159		$	11,154
Net Income	—	—		—		121			121
Dividends declared on common stock	—	—		—		(211)			(211)


Balance, March 31, 2025	138,632	$	1,386	$	6,609	$	3,069		$	11,064


				Additional Paid-in Capital		Retained Earnings
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2023	138,632	$	1,386	$	5,975	$	2,863		$	10,224

Net Income	—	—		—		170			170
Dividends declared on common stock	—	—		—		(194)			(194)


Balance, March 31, 2024	138,632	$	1,386	$	5,975	$	2,839		$	10,200

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited)

Index of Combined Notes to Consolidated Financial Statements (Unaudited)

The Combined Notes to Consolidated Financial Statements (Unaudited) 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	Revenue	DTE Energy and DTE Electric
Note 5	Regulatory Matters	DTE Energy and DTE Electric
Note 6	Earnings per Share	DTE Energy
Note 7	Fair Value	DTE Energy and DTE Electric
Note 8	Financial and Other Derivative Instruments	DTE Energy and DTE Electric
Note 9	Long-Term Debt	DTE Energy and DTE Electric
Note 10	Short-Term Credit Arrangements and Borrowings	DTE Energy and DTE Electric
Note 11	Leases	DTE Energy
Note 12	Commitments and Contingencies	DTE Energy and DTE Electric
Note 13	Retirement Benefits and Trusteed Assets	DTE Energy and DTE Electric
Note 14	Segment and Related Information	DTE Energy and 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 1.3 million customers throughout Michigan and the sale of storage and transportation capacity
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.

Basis of Presentation

The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric 2024 Annual Report on Form 10-K.

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 Consolidated Financial Statements are unaudited but, in the Registrants' opinions, include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2025.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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 DTE Electric 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 March 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 March 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.

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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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 March 31, 2025 and December 31, 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.

Amounts for the Registrants' consolidated VIEs are as follows:


	March 31, 2025				December 31, 2024
	DTE Energy		DTE Electric		DTE Energy		DTE Electric
	(In millions)
ASSETS
Cash and cash equivalents	$	9	$	—	$	6	$	—
Restricted cash	57		42		64		48
Accounts receivable	30		4		27		6



Securitized regulatory assets	673		673		690		690

Notes receivable(a)	661		—		657		—
Other current and long-term assets	1		—		1		—
	$	1,431	$	719	$	1,445	$	744

LIABILITIES
Accounts payable	$	22	$	—	$	26	$	—
Accrued interest	4		4		12		12
Regulatory liabilities — current	24		24		27		27


Securitization bonds(b)	691		691		706		706

Other current and long-term liabilities	23		—		20		—
	$	764	$	719	$	791	$	745

(a)At March 31, 2025 and December 31, 2024, Notes receivable includes $15 million and $14 million, respectively, reported in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.

(b)Includes $72 million and $71 million reported in Current portion of long-term debt on the Registrants' Consolidated Statements of Financial Position for the periods ended March 31, 2025 and December 31, 2024, respectively.

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

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

Other Income

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


	Three Months Ended March 31,
		2025		2024
		(In millions)
Allowance for equity funds used during construction		$	24	$	18
Contract services		9		7
Equity earnings (losses) of equity method investees		7		(8)


Investment income(a)		1		6
Other		3		4
		$	44	$	27

(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:


	Three Months Ended March 31,
		2025		2024
		(In millions)
Allowance for equity funds used during construction		$	24	$	18
Contract services		9		6
Investment income(a)		1		5

Other		2		3
		$	36	$	32

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

For information on equity earnings of equity method investees by segment, see Note 14 to the Consolidated Financial Statements, "Segment and Related Information."

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 three months ended March 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 (Unaudited) — (Continued)

Income Taxes

Tax rates are affected by estimated annual permanent items, production and investment tax credits, regulatory adjustments, and discrete items that may occur in any given period, but are not consistent from period to period. The tables below summarize how the Registrants' effective income tax rates have varied from the statutory federal income tax rate:


	Three Months Ended March 31,
		2025		2024
DTE Energy
Statutory federal income tax rate		21.0	%	21.0	%
Increase (decrease) due to:
State and local income taxes, net of federal benefit		4.2		4.1
Investment tax credits		(13.1)		(3.1)
Production tax credits		(10.5)		(8.3)
TCJA regulatory liability amortization		(4.5)		(4.9)
AFUDC equity		(1.5)		(1.2)
Other		0.2		(1.4)
Effective income tax rate		(4.2)	%	6.2	%


	Three Months Ended March 31,
		2025		2024
DTE Electric
Statutory federal income tax rate		21.0	%	21.0	%
Increase (decrease) due to:
State and local income taxes, net of federal benefit		5.7		5.3

Investment tax credits		(16.6)		(0.2)
Production tax credits		(7.0)		(9.7)
TCJA regulatory liability amortization		(4.6)		(5.1)
AFUDC equity		(1.8)		(1.5)
Other		0.4		(0.2)
Effective income tax rate		(2.9)	%	9.6	%

DTE Electric had federal income tax payables with DTE Energy of $12 million at March 31, 2025. Income tax payables with DTE Energy are included in Accounts payable — Affiliates on the DTE Electric Consolidated Statements of Financial Position. DTE Electric had state income tax receivables with DTE Energy of $1 million at March 31, 2025 and federal income tax receivables with DTE Energy of $5 million at December 31, 2024. Income tax receivables with DTE Energy are included in Accounts receivable — Affiliates on the DTE Electric Consolidated Statements of Financial Position.

Unrecognized Compensation Costs

As of March 31, 2025, DTE Energy had $98 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 2.2 years.

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $10 million and $8 million for the three months ended March 31, 2025 and 2024, respectively.

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 also consists of funds held to satisfy contractual obligations related to a large construction project at DTE Vantage. Restricted cash designated for payments within one year is classified as a Current Asset.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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.

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.

The following represents the Registrants' financing receivables by year of origination, 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 March 31, 2025.


	DTE Energy								DTE Electric
	Year of Origination
	2025		2024		2023 and Prior		Total		2025 and Prior
	(In millions)
Notes receivable
Internal grade 1	$	7	$	4	$	27	$	38	$	34
Internal grade 2	2		669		256		927		1

Total notes receivable(a)	$	9	$	673	$	283	$	965	$	35


Net investment in leases
Internal grade 1	$	—	$	—	$	35	$	35	$	—
Internal grade 2	—		2		—		2		—
Total net investment in leases(a)	$	—	$	2	$	35	$	37	$	—

(a)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 finance lease receivables and loans 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 loans.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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.

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			Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2025	$	69	$	3		$	72	$	46
Current period provision	25		—			25		10

Write-offs charged against allowance	(29)		—			(29)		(19)
Recoveries of amounts previously written off	9		—			9		6
Ending reserve balance, March 31, 2025	$	74	$	3		$	77	$	43


	DTE Energy				DTE Electric
	Trade accounts receivable		Other receivables			Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2024	$	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
Ending reserve balance, December 31, 2024	$	69	$	3		$	72	$	46

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


	Three Months Ended March 31,
		2025		2024
		(In millions)
DTE Energy		$	26	$	21
DTE Electric		$	10	$	10

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

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS

Recently Issued 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 disclosure, 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 quantitative threshold. The ASU is effective for the Registrants for annual periods beginning after December 15, 2024. The guidance shall be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted. The Registrants will apply the guidance beginning with the combined DTE Energy and DTE Electric Annual Report on Form 10-K for the year ended December 31, 2025.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-04): 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.

NOTE 4 — REVENUE

Disaggregation of Revenue

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


	Three Months Ended March 31,
		2025		2024
		(In millions)
Electric(a)
Residential		$	720	$	700
Commercial		529		556
Industrial		160		183
Other(b)		50		31
Total Electric operating revenues		$	1,459	$	1,470

Gas
Gas sales		$	692	$	565
End User Transportation		91		82
Intermediate Transportation		31		29
Other(b)		62		35
Total Gas operating revenues		$	876	$	711

Other segment operating revenues
DTE Vantage		$	188	$	184
Energy Trading		$	2,026	$	933

(a)Revenues generally represent those of DTE Electric, except $5 million and $4 million of Other revenues related to DTE Sustainable Generation for the three months ended March 31, 2025 and 2024, respectively.

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

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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


	Three Months Ended March 31,
		2025		2024
		(In millions)
Electric — Alternative Revenue Programs		$	1	$	—
Electric — Other revenues		$	5	$	4
Gas — Alternative Revenue Programs		$	—	$	6
Gas — Other revenues		$	3	$	2
DTE Vantage — Leases		$	15	$	14
Energy Trading — Derivatives		$	1,499	$	659

Deferred Revenue

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


	Three Months Ended March 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	51		35
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(43)		(25)
Ending Balance, March 31	$	146	$	116

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)
2025	$	129
2026	16
2027	1
2028	—
2029	—
2030 and thereafter	—
	$	146

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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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.

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)
2025	$	165	$	11
2026	175		1
2027	136		—
2028	94		—
2029	80		—
2030 and thereafter	328		—
	$	978	$	12

NOTE 5 — REGULATORY MATTERS

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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 6 — 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.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:


	Three Months Ended March 31,
		2025		2024
		(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company		$	445	$	313

Less: Allocation of earnings to net restricted stock awards		1		1
Net income available to common shareholders — basic		$	444	$	312



Average number of common shares outstanding — basic		207		206



Basic Earnings per Common Share		$	2.14	$	1.51

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company		$	445	$	313

Less: Allocation of earnings to net restricted stock awards		1		1
Net income available to common shareholders — diluted		$	444	$	312



Average number of common shares outstanding — basic		207		206

Average performance share awards		—		1
Average number of common shares outstanding — diluted		207		207



Diluted Earnings per Common Share		$	2.14	$	1.51

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 7 — 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 March 31, 2025 and December 31, 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 (Unaudited) — (Continued)

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


	March 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(c)	$	21	$	—	$	—	$	—	$	—	$	21	$	11	$	—	$	—	$	—	$	—	$	11
Nuclear decommissioning trusts
Equity securities	836		—		—		150		—		986		856		—		—		147		—		1,003
Fixed income securities	128		417		—		112		—		657		124		414		—		112		—		650
Private equity and other	16		—		—		328		—		344		16		—		—		333		—		349
Hedge funds and similar investments	154		16		—		61		—		231		151		16		—		61		—		228
Cash equivalents	28		—		—		—		—		28		26		—		—		—		—		26
Other investments(d)
Equity securities	67		—		—		—		—		67		72		—		—		—		—		72
Fixed income securities	8		—		—		—		—		8		7		—		—		—		—		7
Cash equivalents	32		—		—		—		—		32		29		—		—		—		—		29

Derivative assets
Commodity contracts(e)
Natural gas	330		33		98		—		(327)		134		242		81		105		—		(285)		143
Electricity	112		179		13		—		(214)		90		67		69		51		—		(116)		71
Environmental & Other	4		61		3		—		(58)		10		1		47		10		—		(46)		12


Other contracts	—		4		—		—		—		4		—		21		—		—		—		21
Total derivative assets	446		277		114		—		(599)		238		310		218		166		—		(447)		247
Total	$	1,736	$	710	$	114	$	651	$	(599)	$	2,612	$	1,602	$	648	$	166	$	653	$	(447)	$	2,622

Liabilities
Derivative liabilities
Commodity contracts(e)
Natural gas	$	(233)	$	(64)	$	(98)	$	—	$	280	$	(115)	$	(217)	$	(70)	$	(123)	$	—	$	272	$	(138)
Electricity	(108)		(98)		(104)		—		206		(104)		(71)		(52)		(27)		—		114		(36)
Environmental & Other	(4)		(47)		(1)		—		52		—		(2)		(39)		(3)		—		44		—


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

Total	$	(345)	$	(210)	$	(203)	$	—	$	538	$	(220)	$	(290)	$	(162)	$	(153)	$	—	$	430	$	(175)
Net Assets (Liabilities) at end of period	$	1,391	$	500	$	(89)	$	651	$	(61)	$	2,392	$	1,312	$	486	$	13	$	653	$	(17)	$	2,447
Assets
Current	$	354	$	218	$	56	$	—	$	(447)	$	181	$	223	$	170	$	106	$	—	$	(326)	$	173
Noncurrent	1,382		492		58		651		(152)		2,431		1,379		478		60		653		(121)		2,449
Total Assets	$	1,736	$	710	$	114	$	651	$	(599)	$	2,612	$	1,602	$	648	$	166	$	653	$	(447)	$	2,622
Liabilities
Current	$	(255)	$	(160)	$	(131)	$	—	$	401	$	(145)	$	(219)	$	(129)	$	(93)	$	—	$	323	$	(118)
Noncurrent	(90)		(50)		(72)		—		137		(75)		(71)		(33)		(60)		—		107		(57)
Total Liabilities	$	(345)	$	(210)	$	(203)	$	—	$	538	$	(220)	$	(290)	$	(162)	$	(153)	$	—	$	430	$	(175)
Net Assets (Liabilities) at end of period	$	1,391	$	500	$	(89)	$	651	$	(61)	$	2,392	$	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 $19 million and $8 million recorded in Restricted cash on DTE Energy's Consolidated Statements of Financial Position at March 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 (Unaudited) — (Continued)

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


	March 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(a)	$	19	$	—	$	—	$	—	$	19	$	8	$	—	$	—	$	—	$	8
Nuclear decommissioning trusts
Equity securities	836		—		—		150		986		856		—		—		147		1,003
Fixed income securities	128		417		—		112		657		124		414		—		112		650
Private equity and other	16		—		—		328		344		16		—		—		333		349
Hedge funds and similar investments	154		16		—		61		231		151		16		—		61		228
Cash equivalents	28		—		—		—		28		26		—		—		—		26
Other investments
Equity securities	26		—		—		—		26		26		—		—		—		26

Cash equivalents	19		—		—		—		19		19		—		—		—		19
Derivative assets — FTRs	—		—		3		—		3		—		—		9		—		9
Total	$	1,226	$	433	$	3	$	651	$	2,313	$	1,226	$	430	$	9	$	653	$	2,318

Assets
Current	$	19	$	—	$	3	$	—	$	22	$	8	$	—	$	9	$	—	$	17
Noncurrent	1,207		433		—		651		2,291		1,218		430		—		653		2,301
Total Assets	$	1,226	$	433	$	3	$	651	$	2,313	$	1,226	$	430	$	9	$	653	$	2,318

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

(b)Amounts include $19 million and $8 million recorded in Restricted cash on DTE Electric's Consolidated Statements of Financial Position at March 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 $114 million and $120 million as of March 31, 2025 and December 31, 2024, respectively.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (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 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:



	Three Months Ended March 31, 2025								Three Months Ended March 31, 2024
	Natural Gas		Electricity		Other		Total		Natural Gas		Electricity		Other		Total
	(In millions)
Net Assets (Liabilities) as of December 31	$	(18)	$	24	$	7	$	13	$	22	$	47	$	6	$	75
Transfers into Level 3 from Level 2	2		—		—		2		—		—		—		—
Transfers from Level 3 into Level 2	—		—		2		2		—		—				—
Total gains (losses)
Included in earnings(a)	(22)		(37)		—		(59)		(25)		(3)		(1)		(29)
Recorded in Regulatory liabilities	—		—		(2)		(2)		—		—		(2)		(2)
Purchases, issuances, and settlements


Settlements	38		(78)		(5)		(45)		—		(69)		(1)		(70)
Net Assets (Liabilities) as of March 31	$	—	$	(91)	$	2	$	(89)	$	(3)	$	(25)	$	2	$	(26)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31(a)	$	(17)	$	(92)	$	(1)	$	(110)	$	(39)	$	1	$	—	$	(38)
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31	$	—	$	—	$	—	$	—	$	—	$	—	$	2	$	2

(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 (Unaudited) — (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:


	Three Months Ended March 31,
		2025		2024
		(In millions)
Net Assets as of beginning of period		$	9	$	7
Total losses recorded in Regulatory liabilities		(2)		(2)
Purchases, issuances, and settlements
Settlements		(4)		(2)
Net Assets as of March 31		$	3	$	3
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31		$	—	$	2

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 three months ended March 31, 2025 and 2024.

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


	March 31, 2025
Commodity Contracts	Derivative Assets		Derivative Liabilities		Valuation Techniques	Unobservable Input	Range						Weighted Average
	(In millions)
Natural Gas	$	98	$	(98)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.36)	—	$	2.52	/MMBtu	$	(0.04)	/MMBtu
Electricity	$	13	$	(104)	Discounted Cash Flow	Forward basis price (per MWh)	$	(17.35)	—	$	18.38	/MWh	$	(4.30)	/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 (Unaudited) — (Continued)

Fair Value of Financial Instruments

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


	March 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	$	963	$	—	$	—	$	963	$	884	$	—	$	—	$	904
Short-term borrowings	$	513	$	—	$	513	$	—	$	1,067	$	—	$	1,067	$	—
Notes payable(b)	$	39	$	—	$	—	$	39	$	37	$	—	$	—	$	37
Long-term debt(c)	$	22,693	$	714	$	19,248	$	1,156	$	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:


	March 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)	$	35	$	—	$	—	$	35	$	2	$	—	$	—	$	2
Short-term borrowings — Affiliates	$	960	$	—	$	—	$	960	$	—	$	—	$	—	$	—
Short-term borrowings — Other	$	513	$	—	$	513	$	—	$	666	$	—	$	666	$	—
Notes payable(b)	$	27	$	—	$	—	$	27	$	35	$	—	$	—	$	35
Long-term debt(c)	$	11,518	$	—	$	10,218	$	133	$	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 8 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.

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


	March 31, 2025		December 31, 2024
	(In millions)
Fermi 2	$	2,223	$	2,234
Fermi 1	3		3
Low-level radioactive waste	20		19
	$	2,246	$	2,256

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (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:


	Three Months Ended March 31,
		2025		2024
		(In millions)
Realized gains		$	8	$	7
Realized losses		$	(8)	$	(6)
Proceeds from sale of securities		$	139	$	108

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:


	March 31, 2025						December 31, 2024
	Fair Value		Unrealized Gains		Unrealized Losses		Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	986	$	542	$	(22)	$	1,003	$	558	$	(16)
Fixed income securities	657		17		(25)		650		16		(29)
Private equity and other	344		99		(7)		349		106		(8)
Hedge funds and similar investments	231		5		(6)		228		7		(5)
Cash equivalents	28		—		—		26		—		—
	$	2,246	$	663	$	(60)	$	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:


	March 31, 2025
	(In millions)
Due within one year	$	15
Due after one through five years	107
Due after five through ten years	101
Due after ten years	322
	$	545

Fixed income securities held in nuclear decommissioning trust funds include $112 million of non-publicly traded commingled funds that do not have a contractual maturity date.

Other Securities

At March 31, 2025 and December 31, 2024, DTE Energy 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 three months ended March 31, 2025 and 2024.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 8 — 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, certain 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 March 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 (Unaudited) — (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:


	March 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	$	461	$	(395)	$	428	$	(410)
Electricity	304		(310)		187		(150)
Environmental & Other	68		(52)		58		(44)
Foreign currency exchange contracts	1		—		1		—
Total derivatives not designated as hedging instruments	$	834	$	(757)	$	674	$	(604)

Current	$	607	$	(546)	$	488	$	(441)
Noncurrent	230		(212)		206		(164)
Total derivatives	$	837	$	(758)	$	694	$	(605)

The fair value of derivative instruments at DTE Electric was $3 million and $9 million at March 31, 2025 and December 31, 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 (Unaudited) — (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 $12 million and $1 million issued and outstanding at March 31, 2025 and December 31, 2024, respectively, which could be used to offset net Derivative liabilities. There were $15 million letters of credit received from third parties which could be used to offset net Derivative assets at March 31, 2025 and there were none at 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:


	March 31, 2025		December 31, 2024
	(In millions)
Cash collateral netted against Derivative assets	$	(61)	$	(17)

Cash collateral recorded in Accounts receivable(a)	34		29
Cash collateral recorded in Accounts payable(a)	(4)		(5)
Total net cash collateral posted (received)	$	(31)	$	7

(a)Amounts are recorded net by counterparty.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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


	March 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	$	461	$	(327)	$	134	$	428	$	(285)	$	143
Electricity	304		(214)		90		187		(116)		71
Environmental & Other	68		(58)		10		58		(46)		12
Interest rate contracts	3		—		3		20		—		20
Foreign currency exchange contracts	1		—		1		1		—		1
Total derivative assets	$	837	$	(599)	$	238	$	694	$	(447)	$	247

Derivative liabilities
Commodity contracts(a)
Natural gas	$	(395)	$	280	$	(115)	$	(410)	$	272	$	(138)
Electricity	(310)		206		(104)		(150)		114		(36)
Environmental & Other	(52)		52		—		(44)		44		—

Foreign currency exchange contracts	(1)		—		(1)		(1)		—		(1)
Total derivative liabilities	$	(758)	$	538	$	(220)	$	(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:


	March 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	$	607	$	230	$	(546)	$	(212)	$	488	$	206	$	(441)	$	(164)
Counterparty netting	(401)		(137)		401		137		(323)		(107)		323		107
Collateral adjustment	(46)		(15)		—		—		(3)		(14)		—		—
Total derivatives as reported	$	160	$	78	$	(145)	$	(75)	$	162	$	85	$	(118)	$	(57)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (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 the Three Months Ended March 31,
		2025	2024
			(In millions)
Commodity contracts
Natural gas	Operating Revenues — Non-utility operations		$	94	$	(69)
Natural gas	Fuel, purchased power, gas, and other — non-utility		(100)		59
Electricity	Operating Revenues — Non-utility operations		45		(5)
Environmental & Other	Operating Revenues — Non-utility operations		9		(7)
Foreign currency exchange contracts	Operating Revenues — Non-utility operations		—		2
Total			$	48	$	(20)

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 March 31, 2025:


Commodity						Number of Units
Natural gas (MMBtu)						2,285,028,944
Electricity (MWh)						45,449,172

Foreign currency exchange ($ CAD)						75,578,851
FTR (MWh)						28,094
Renewable Energy Certificates (MWh)						12,206,500
Carbon emissions (Metric Tons)						822,788
Interest rate contracts ($ USD)						400,000,000

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 March 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 $384 million.

As of March 31, 2025, DTE Energy had $623 million of derivatives in net liability positions, for which hard triggers exist. There is no 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 $511 million. The net remaining amount of $112 million is derived from the $384 million noted above.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 9 — LONG-TERM DEBT

Debt Issuances

In February 2025, DTE Energy issued $1.1 billion of 5.20% Senior Notes due April 1, 2030. Proceeds were used for the repayment of short-term borrowings and for general corporate purposes.

Debt Redemptions

Refer to the table below for debt redeemed through March 31, 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



					$	365

NOTE 10 — 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.

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 March 31, 2025, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.64 to 1, 0.53 to 1, and 0.48 to 1, respectively, and were in compliance with this financial covenant.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The availability under these facilities as of March 31, 2025 is shown in the following table:


	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured revolving credit facility, expiring October 2029	$	1,500	$	800	$	300	$	2,600
Unsecured letter of credit facility, expiring June 2025(a)	175		—		—		$	175
Unsecured letter of credit facility, expiring February 2027	150		—		—		150
Unsecured letter of credit facility, expiring June 2026	100		—		—		100
Unsecured letter of credit facility(b)	50		—		—		50
Unsecured letter of credit facility(c)	—		125		—		125


	1,975		925		300		3,200
Amounts outstanding at March 31, 2025

Commercial paper issuances	—		513		—		513

Letters of credit	173		121		—		294
	173		634		—		807
Net availability at March 31, 2025	$	1,802	$	291	$	300	$	2,393

(a)Uncommitted letter of credit facility.

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

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

In April 2025, the Registrants amended the unsecured letter of credit facility that can be utilized for either DTE Energy or DTE Electric. The amendment increased the total availability of the credit facility from $125 million to $150 million. All other covenants and terms of the agreement were unchanged.

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 March 31, 2025, the capacity under the facility was $200 million. The amounts outstanding under demand financing agreements were $27 million and $49 million at March 31, 2025 and December 31, 2024, respectively, and were fully offset by posted collateral.

NOTE 11 — LEASES

Lessor

DTE Energy’s lease income associated with operating leases, included in Operating Revenues — Non-utility operations in the Consolidated Statements of Operations, was as follows:


	Three Months Ended March 31,
		2025		2024
		(In millions)
Fixed payments		$	4	$	4
Variable payments		11		10
		$	15	$	14

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 12 — 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. 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. The new rules may impact future electric generation plans that will be defined in DTE Electric's next Integrated Resource Plan filing. Challenges to the rules have been filed, and DTE Electric will continue to monitor regulatory developments. 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.

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 is in-process for 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. After approval of the plan by EGLE and completion of field sampling, 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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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 March 31, 2025 and December 31, 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 is in the process of evaluating 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. Challenges to the rule have been filed, and DTE Electric will continue to monitor for regulatory developments. The preliminary cost estimate to comply with the revised rule is approximately $292 million as of March 31, 2025, and is recorded to Asset retirement obligations. The estimate will 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.

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 has 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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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.

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 in 2025-2026, 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 new discharge requirements for BATW. 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 $511 million of capital expenditures through 2029. This estimate may change in future periods as DTE Electric evaluates the CCR and ELG rules discussed above that have recently been finalized.

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 four 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 March 31, 2025 and December 31, 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. 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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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 case is proceeding through discovery and trial is set for July 2025. At the present time, DTE Energy cannot predict the 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.

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 March 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 March 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 March 31, 2025, DTE Energy had $387 million of performance bonds outstanding, including $213 million for DTE Electric. Performance bonds are not individually material, except for $130 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.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Labor Contracts

There are several bargaining units for DTE Energy subsidiaries' approximately 4,750 represented employees, including DTE Electric's approximately 2,500 represented employees. This represents 50% and 58% of DTE Energy's and DTE Electric's total employees, respectively. Of these represented employees, less than 1% have contracts expiring within one year for DTE Energy. Less than 1% of the represented employees have contracts expiring within one year for DTE Electric.

Purchase Commitments

Utility capital expenditures and expenditures for non-utility businesses will be approximately $4.9 billion and $3.7 billion in 2025 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2025 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 its obligations to Toshiba America Energy Systems ("TAES"). TAES' work under the contract was incomplete, defective, and non-conforming. DTE Electric and Consumers 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, under a parent guaranty it provided. TAES did not provide a comprehensive plan or otherwise met 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 Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022.

In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties' contract. In September 2022, the motion to dismiss the complaint was denied. DTE Electric believes the outstanding counterclaims are without merit, but would be liable for 49% of the damages if approved. In October 2022, the combined parties submitted a joint discovery plan to proceed with the litigation process and a potential trial during the second half of 2025. DTE Electric cannot predict the financial impact or outcome of this matter.

In May 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 Corporation 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 Corporation. DTE Electric and Consumers will have the opportunity to seek recovery and ratemaking treatment for amounts which are not recovered from TAES or Toshiba Corporation.

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 5 and 8 to the Consolidated Financial Statements, "Regulatory Matters" and "Financial and Other Derivative Instruments," respectively.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 13 — 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. Participants of all plans are solely DTE Energy and affiliate participants.

The following table details the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:


	Pension Benefits				Other Postretirement Benefits
	2025		2024		2025		2024
	(In millions)
Three Months Ended March 31,
Service cost	$	12	$	14	$	4	$	4
Interest cost	54		52		15		16
Expected return on plan assets	(73)		(85)		(29)		(30)
Amortization of:
Net actuarial loss	22		15		—		2
Prior service credit	—		(1)		—		(3)

Net periodic benefit cost (credit)	$	15	$	(5)	$	(10)	$	(11)

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.

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.

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 was $14 million and a credit of $1 million for the three months ended March 31, 2025 and 2024, respectively. These amounts may include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following table details the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:


	Three Months Ended March 31,
		2025		2024
		(In millions)
Service cost		$	3	$	3
Interest cost		12		12
Expected return on plan assets		(19)		(20)
Amortization of:
Net actuarial gain		(1)		—
Prior service credit		—		(1)
Net periodic benefit credit		$	(5)	$	(6)

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DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Pension and Other Postretirement Contributions

No contributions are currently expected for DTE Energy's postretirement benefit plans in 2025, and contributions to the qualified pension plans are expected to be nominal. Plans may be updated at the discretion of management and depending on economic and financial market conditions. DTE Energy anticipates a transfer of up to $25 million of non-represented qualified pension plan funds from DTE Gas to DTE Electric during 2025 in exchange for cash consideration.

NOTE 14 — 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 1.3 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 Operating Officer, Chief Financial Officer, and other executive leaders of DTE Energy. The CODM at DTE Electric is comprised of the Chief Executive Officer, Chief Operating 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.

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.


	Three Months Ended March 31,
		2025		2024
		(In millions)
Electric segment(a)		$	19	$	18
Gas segment		4		4
DTE Vantage segment		40		11
Energy Trading segment		46		25

		$	109	$	58

(a)Inter-segment billing for the Electric segment relating to Non-utility operations includes $1 million for both the three months ended March 31, 2025 and 2024.

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.

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DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

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.

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.

Profit (loss) 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)
Three months ended March 31, 2025
Operating Revenues — Utility operations	$	1,454	876	—	—	$	2,330	—	(23)	$	2,307
Operating Revenues — Non-utility operations	$	5	—	188	2,026	$	2,219	—	(86)	$	2,133
Depreciation and amortization	$	382	54	15	1	$	452	—	—	$	452
Interest expense	$	133	32	8	2	$	175	94	(19)	$	250
Interest income	$	(2)	(2)	(20)	(3)	$	(27)	(15)	19	$	(23)
Equity earnings of equity method investees	$	—	—	7	—	$	7	—	—	$	7
Other segment items (pre-tax)(b)	$	826	523	147	1,937	$	3,433	3	(109)	$	3,327
Income Tax Expense (Benefit)	$	(3)	63	(8)	22	$	74	(92)	—	$	(18)
Net Income Attributable to DTE Energy Company	$	123	206	39	67	$	435	10	—	$	445

Three months ended March 31, 2024
Operating Revenues — Utility operations	$	1,466	711	—	—	$	2,177	—	(21)	$	2,156
Operating Revenues — Non-utility operations	$	4	—	184	933	$	1,121	—	(37)	$	1,084
Depreciation and amortization	$	353	54	15	1	$	423	—	—	$	423
Interest expense	$	118	29	6	4	$	157	75	(14)	$	218
Interest income	$	(2)	(1)	(12)	(7)	$	(22)	(10)	14	$	(18)
Equity losses of equity method investees	$	—	—	(7)	—	$	(7)	(1)	—	$	(8)
Other segment items (pre-tax)(b)	$	812	426	174	934	$	2,346	3	(58)	$	2,291
Income Tax Expense (Benefit)	$	18	49	—	—	$	67	(46)	—	$	21
Net Income (Loss) Attributable to DTE Energy Company	$	171	154	8	1	$	334	(21)	—	$	313

(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.

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DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Other 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)
March 31, 2025
Investment in equity method investees	$	5	18	83	—	$	106	22	—	$	128
Capital expenditures and acquisitions	$	731	126	15	1	$	873	—	—	$	873
Goodwill	$	1,208	743	25	17	$	1,993	—	—	$	1,993
Total Assets	$	35,970	8,760	2,131	1,306	$	48,167	5,769	(4,381)	$	49,555

December 31, 2024
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

Table of Contents

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