DTE Energy(DTE) - 2024 Q4 - Annual Report

Customer Base and Operations - DTE Electric serves approximately 2.3 million customers in southeastern Michigan, with peak load and highest total system sales typically occurring in the third quarter due to cooling demands [48][49]. - DTE Electric's distribution operations include 702 substations with a total capacity of approximately 37,710,000 kVA and 455,300 line transformers with a capacity of approximately 33,570,000 kVA [58]. - Approximately 10% of DTE Electric's retail sales in 2024 were from customers with retail access to alternative electric suppliers, a figure expected to remain stable in future years [68]. - DTE Gas owns approximately 20,500 miles of distribution mains, 1,238,000 service pipelines, and 1,352,000 active meters, along with 2,000 miles of transmission pipelines [78]. - DTE Gas has an aggregate working gas storage capacity of approximately 139 Bcf across four underground natural gas storage fields [79]. Energy Supply and Contracts - DTE Electric has long-term contracts for approximately 7.5 million tons of low-sulfur western coal and 1.2 million tons of Appalachian coal for delivery from 2025 to 2026, with 100% of its expected coal requirements under contract for 2025 [52]. - DTE Electric's natural gas purchase requirements for 2025 are expected to be approximately 80 Bcf, supported by firm gas transportation and storage capacity contracts [53]. - DTE Gas maintains a diversified portfolio of natural gas supply contracts, with pricing generally tied to the New York Mercantile Exchange and MPSC-approved fixed price supplies through 2027 [75]. Environmental Goals and Initiatives - DTE Electric aims to reduce carbon emissions by 65% by 2028, 85% by 2032, and 90% by 2040 from 2005 levels, with a transition away from coal-fired plants planned by 2032 [62][65]. - The Michigan state legislation mandates a 100% clean energy portfolio standard by 2040, requiring 50% of energy to be generated from renewable sources by 2030 and 60% by 2035 [63]. - DTE Vantage is developing multiple carbon capture projects across the United States to help customers reduce emissions and meet environmental commitments [92]. - DTE Energy plans to reduce carbon emissions from gas utility operations by 65% by 2030 and 80% by 2040, aiming for net zero carbon emissions by 2050 [89]. Financial Performance and Projections - DTE Energy's estimated total future environmental expenditures through 2029 are projected to be $532 million, with$39 million estimated for 2025 [104]. - DTE Energy had pension credits of $18 million in 2024 and$69 million in 2023, with pension costs of $123 million in 2022 [298]. - The expected long-term rate of return on pension plan assets is set at 7.80$60 million for 2025, compared to a credit of $18 million in 2024, primarily due to deferred investment losses [302]. - The MTM (mark-to-market) net asset position was$72 million at December 31, 2024, down from $97 million at December 31, 2023 [315]. Workforce and Diversity - DTE Energy had approximately 9,500 employees as of December 31, 2024, with about 4,800 represented by unions [105]. - As of December 31, 2024, DTE Energy's workforce comprised 26$115 million and other postretirement benefit plans were over-funded by $471 million as of December 31, 2024 [305]. - Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2024 pension credit by approximately$43 million [304].