DTE Energy(DTE) - 2025 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[47][48]. - DTE Gas owns approximately 21,000 miles of distribution mains, 1,242,000 service pipelines, and 1,361,000 active meters, with 2,000 miles of transmission pipelines[76]. Environmental Goals and Legislation - DTE Electric aims to reduce carbon emissions by 65% by 2028, 85% by 2032, and 90% by 2040 from 2005 levels, with a goal of achieving net zero emissions by 2050[61]. - New Michigan legislation mandates a 100% clean energy portfolio standard by 2040, requiring 50% of energy to come from renewable sources by 2030 and 60% by 2035[62]. - DTE Energy aims to reduce carbon emissions from gas utility operations by 65% by 2030 and 80% by 2040, with a goal of net zero carbon emissions by 2050[87]. - DTE Vantage is developing multiple carbon capture projects across the U.S. to help customers reduce emissions and meet environmental commitments[90]. Energy Supply and Contracts - DTE Electric has secured 99% of its expected coal requirements for 2026 under long-term contracts, totaling approximately 6.9 million tons of low-sulfur western coal and 1.3 million tons of Appalachian coal[50]. - DTE Electric's natural gas supply for 2026 is expected to be approximately 89 Bcf, supported by firm gas transportation and storage capacity contracts[51]. - 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 2028[73]. Infrastructure and Capacity - DTE Gas has a planned maximum daily send-out capacity of 2.5 Bcf, with about 65% of the volume sourced from underground storage for 2025[72]. - DTE Gas has an aggregate working gas storage capacity of approximately 139 Bcf across four underground natural gas storage fields, providing reliable service to customers[77]. - DTE Vantage operates two renewable generating plants with a total capacity of 70 MWs, selling electric output under long-term power purchase agreements[93]. Financials and Pension Plans - DTE Energy had a pension expense of $60 million in 2025, with pension credits of $18 million and $69 million in 2024 and 2023, respectively[293]. - The expected long-term rate of return on pension plan assets is maintained at 7.80% for 2026, while the rate for other postretirement plans is decreased to 7.40%[293]. - The value of qualified pension and other postretirement benefit plan assets was $5.4 billion at December 31, 2025, compared to $5.3 billion at December 31, 2024[301]. - DTE Energy's pension plans were underfunded by $127 million, while its other postretirement benefit plans were over-funded by $513 million as of December 31, 2025[301]. - DTE Energy estimates a total pension cost of approximately $70 million for 2026, compared to $60 million in 2025[297]. Workforce and Diversity - DTE Energy had approximately 9,650 employees as of December 31, 2025, with about 4,850 represented by unions[105]. - DTE Energy's workforce comprised 26% women and 29% minorities as of December 31, 2025, reflecting its commitment to diversity and inclusion[112]. Governance and Legal Matters - DTE Energy's comprehensive governance structure includes oversight from the Board of Directors and senior executives to meet strategic talent management objectives[106]. - The Registrants' legal reserves are based on management's assessment of pending and threatened legal proceedings, with reserves established when appropriate[303]. - The Registrants utilize a two-step approach for uncertain income tax positions, recognizing benefits that are more likely than not to be sustained[304]. Financial Position and Valuation - DTE Energy's MTM net asset position increased from $72 million at December 31, 2024, to $80 million at December 31, 2025[310]. - The total fair value of DTE Energy's MTM positions before collateral adjustments was $110 million, with collateral adjustments reducing this to $80 million[311]. - Changes in fair value recorded to income for the year included $373 million, with unrealized income amounts recorded at $4 million[310].