DTE ENERGY CO
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
DTE$135.08+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000936340-24-000116
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0000936340-24-000178
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 134 current paragraphs.
99 unchanged; 27 reworded; 7 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 19 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Taxes other than income increased $5 million and $4 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to higher property taxes.
Current report
Taxes other than income expense increased $4 million and $5 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to increased property taxes.
Current report
Other (Income) and Deductions increased $2 million and $5 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to higher net interest.
Current report
Operating Revenues — Non-utility operations decreased $8 million in the three and six months ended June 30, 2024. The decrease in both periods was due to the following:
Current report
Operation and maintenance expense increased $12 million in the three and six months ended June 30, 2024. The increase in both periods was primarily due to higher operating costs in the On-site business of $7 million. The remaining increase in both periods was primarily due to higher operating costs in the Renewables and Steel businesses.
Current report
Asset (gains) losses and impairments, net changed $3 million and $4 million in the three and six months ended June 30, 2024, respectively. The change in both periods was primarily due to settlement of contingent consideration relating to a 2017 acquisition in the Renewables business in the second quarter 2023.
Current report
Other (Income) and Deductions increased $35 million and $25 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to a gain in the Renewables business of $25 million attributed to the sale of a partnership interest. The remaining increase in the second quarter was primarily due to higher interest income of $11 million associated with a new project in the On-site business.
Removed paragraphs (3)
Previous report
Other (Income) and Deductions increased $3 million in the three months ended March 31, 2024. The increase was primarily due to higher net interest expense of $3 million.
Previous report
Operating Revenues — Non-utility operationshad no change in the three months ended March 31, 2024. Activity for the period included the following:
Previous report
Other (Income) and Deductions changed by $10 million in the three months ended March 31, 2024. The change was primarily due to $10 million of lower equity investment earnings in the Renewables business.
Reworded paragraphs (27)
Previous wording
The decrease in Net Income Attributable to DTE Energy Company for the three months ended March 31, 2024 was primarily due to lower earnings in the Energy Trading, Corporate and Other, DTE Vantage, and Gas segments, partially offset by higher earnings in the Electric segment.
Current wording
The increase in Net Income Attributable to DTE Energy Company for the three months ended June 30, 2024 was primarily due to higher earnings in the Electric segment. The decrease for the six-month period was due to lower earnings in the Energy Trading, Gas, DTE Vantage, and Corporate and Other segments, partially offset by higher earnings in the Electric segment.
Previous wording
Operating Revenues increased $91 million in the three months ended March 31, 2024. Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations. The increase was due to the following:
Current wording
Operating Revenues increased $287 million and $378 million in the three and six months ended June 30, 2024, respectively. Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations. The increase in both periods was due to the following:
Previous wording
Fuel and purchased power — utility expense increased $5 million in the three months ended March 31, 2024. The increase was due to the following:
Current wording
Fuel and purchased power — utility expense increased $107 million and $112 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was due to the following:
Previous wording
Operation and maintenance expense decreased $26 million in the three months ended March 31, 2024. The decrease was primarily due to lower distribution operations expense of $76 million (primarily due to lower storm restoration costs), partially offset by one-time costs of $31 million resulting from the voluntary separation incentive program and higher plant generation expense of $17 million.
Current wording
Operation and maintenance expense increased $20 million and decreased $6 million in the three and six months ended June 30, 2024, respectively. The increase in the second quarter was primarily due to higher EWR expense of $9 million, higher RPS expense of $6 million, and higher legal expense of $6 million. The decrease in the six-month period was primarily due to lower distribution operations expense of $75 million (primarily due to lower storm restoration costs), partially offset by one-time costs of $32 million resulting from the voluntary separation incentive program, higher plant generation expense of $14 million, higher EWR expense of $10 million, higher RPS expense of $7 million, and higher uncollectible expense of $4 million.
Previous wording
Depreciation and amortization expense increased $33 million in the three months ended March 31, 2024. The increase was primarily due a $27 million increase from a higher depreciable base and a $6 million increase associated with the TRM.
Current wording
Depreciation and amortization expense increased $25 million and $58 million in the three and six months ended June 30, 2024, respectively. The increase in the second quarter was primarily due to a higher depreciable base. The increase in the six-month period was primarily due to an increase from higher depreciable base of $51 million and an increase of $7 million associated with the TRM.
Previous wording
Other (Income) and Deductions increased $9 million in the three months ended March 31, 2024. The increase was primarily due to higher net interest expense of $20 million, partially offset by higher AFUDC equity of $9 million and higher investment income of $2 million.
Current wording
Other (Income) and Deductions increased $11 million and $20 million in the three and six months ended June 30, 2024, respectively. The increase in the second quarter was primarily due to higher net interest expense of $23 million, partially offset by higher AFUDC equity of $12 million. The increase in the six-month period was primarily due to higher net interest expense of $43 million, partially offset by higher AFUDC equity of $21 million.
Previous wording
Income Tax Expense increased $1 million in the three months ended March 31, 2024. The increase was primarily due to higher earnings, partially offset by higher production tax credits.
Current wording
Income Tax Expense increased $19 million and $20 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to higher earnings, partially offset by higher production tax credits.
Previous wording
Operating Revenues — Utility operations increased $4 million in the three months ended March 31, 2024. Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations. The increase was due to the following:
Current wording
Operating Revenues — Utility operations decreased $22 million and $18 million in the three and six months ended June 30, 2024, respectively. Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations. The decrease in both periods was due to the following:
Previous wording
Cost of gas — utility expense increased $7 million in the three months ended March 31, 2024. The increase was primarily due to a higher cost of gas of $12 million, partially offset by lower sales volumes of $5 million.
Current wording
Cost of gas — utility expense decreased $16 million and $9 million in the three and six months ended June 30, 2024, respectively. The decrease in the second quarter was primarily due to lower sales volumes of $14 million and lower cost of gas of $2 million. The decrease in the six-month period was primarily due to lower sales volumes of $19 million partially offset by higher cost of gas of $10 million.
Previous wording
Operation and maintenance expense increased $11 million in the three months ended March 31, 2024. The increase was primarily due to one-time costs of $8 million resulting from the voluntary separation incentive program and higher gas operations expense of $5 million, partially offset by lower uncollectible expense of $3 million.
Current wording
Operation and maintenance expense increased $2 million and $13 million in the three and six months ended June 30, 2024, respectively. The increase in the second quarter was primarily due to higher gas operations expense of $3 million and higher uncollectible expense of $2 million, partially offset by lower legal expenses of $3 million. The increase in the six-month period was primarily due to one-time costs of $8 million resulting from the voluntary separation incentive program and higher gas operations expense of $8 million, partially offset by lower legal expenses of $3 million.
Previous wording
Depreciation and amortization expense increased $3 million in the three months ended March 31, 2024. The increase was primarily due to a higher depreciable base.
Current wording
Depreciation and amortization expense increased $4 million and $7 million in the three and six months ended June 30, 2024, respectively. The increase in both periods was primarily due to a higher depreciable base.
Previous wording
Income Tax Expense decreased $5 million in the three months ended March 31, 2024. The decrease was primarily due to lower earnings.
Current wording
Income Tax Expense decreased $6 million and $11 million in the three and six months ended June 30, 2024, respectively. The decrease in both periods was due to lower earnings.
Previous wording
Fuel, purchased power, and gas — non-utility expense increased $6 million in the three months ended March 31, 2024. The increase was due to the following:
Current wording
Fuel, purchased power, and gas — non-utility expense decreased $4 million and increased $2 million in the three and six months ended June 30, 2024, respectively. The change in both periods was due to the following:
Previous wording
Income Taxes — Tax credits decreased $7 million in the three months ended March 31, 2024. The decrease was primarily due to lower investment tax credits in the Renewables business.
Current wording
Income Taxes — Tax credits decreased $8 million and $15 million in the three and six months ended June 30, 2024, respectively. The decrease in both periods was primarily due to investment tax credits related to new projects in the On-site and Renewables businesses in 2023.
Previous wording
Operating Revenues — Non-utility operations decreased $635 million in the three months ended March 31, 2024. The following table details changes relative to the comparable prior period:
Current wording
Operating Revenues — Non-utility operations decreased $67 million and $702 million in the three and six months ended June 30, 2024, respectively. The following tables detail changes relative to the comparable prior periods:
Previous wording
Purchased power, gas, and other — non-utility expense decreased $451 million in the three months ended March 31, 2024. The following table details changes relative to the comparable prior period:
Current wording
Purchased power, gas, and other — non-utility expense decreased $76 million and $527 million in the three and six months ended June 30, 2024, respectively. The following tables detail changes relative to the comparable prior periods:
Previous wording
Operation and maintenance expense increased $5 million in the three months ended March 31, 2024. The increase was primarily due to higher compensation costs.
Current wording
Operation and maintenance expense increased $3 million and $8 million in the three and six months ended June 30, 2024, respectively. The increase for both periods was primarily due to higher compensation costs.
Previous wording
Operating Income (Loss) decreased $189 million for the three months ended March 31, 2024, which includes a $103 million unfavorable change in timing-related gains primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle. The decrease also includes a $122 million unfavorable change in timing-related gains and losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled.
Current wording
Operating Income decreased $182 million for the six months ended June 30, 2024, which includes a $87 million unfavorable change in timing related gains primarily related to gas strategies that will reverse in future periods as the underlying contracts settle. The decrease also includes a $121 million unfavorable change in timing related gains and losses primarily related to gas strategies that were recognized in previous periods and reversed in the current period as the underlying contracts settled.
Previous wording
Other (Income) and Deductions changed by $6 million in the three months ended March 31, 2024. The change was primarily due to higher interest income.
Current wording
Other (Income) and Deductions changed $4 million and $10 million in the three and six months ended June 30, 2024, respectively. The change in both periods was primarily due to higher interest income.
Previous wording
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 net loss of $21 million for the three months ended March 31, 2024 represents a change of $29 million from the net income of $8 million in the comparable 2023 period. The change was primarily due to effective income tax rate adjustments, higher net interest expense, higher state income taxes, and equity investment losses.
Current wording
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 net loss of $40 million and $61 million for the three and six months ended June 30, 2024, respectively, represents a decrease of $18 million and increase of $11 million from the net loss of $58 million and $50 million in the comparable 2023 periods. The decrease in the second quarter was primarily due to the effective tax rate adjustments, higher equity investment income, and lower state income taxes, partially offset by higher net interest expense. The increase in the six-month period was primarily due to higher net interest expense and higher state income taxes, partially offset by the effective tax rate adjustments and higher equity investment income.
Previous wording
Net cash from operations increased by $118 million in 2024. The increase was primarily due to higher cash from working capital items, partially offset by a decrease in Net income.
Current wording
Net cash from operations increased by $42 million in 2024. The increase was primarily due to an increase in Depreciation and amortization, partially offset by a decrease in cash related to working capital items.
Previous wording
The change in working capital items in 2024 was primarily due to increases in cash related to Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by decreases in cash related to Accounts receivable, net and Inventories.
Current wording
The change in working capital items in 2024 was primarily due to decreases in cash related to Accounts receivable, net, Inventories, and Regulatory assets and liabilities, partially offset by increases in cash related to Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities.
Previous wording
Net cash used for investing activities increased by $635 million in 2024 primarily due to increases in utility plant and equipment expenditures and Notes receivable, and the Investment in time deposit.
Current wording
Net cash used for investing activities increased by $1.6 billion in 2024 primarily due to the Investment in time deposits and increases in utility plant and equipment expenditures and Notes receivable.
Previous wording
Net cash from financing activities increased by $721 million in 2024 primarily due to an increase in cash related to the Issuance of long-term debt, net of discount and issuance costs, partially offset by a decrease in cash related to Redemption of long-term debt.
Current wording
Net cash from financing activities increased by $1.6 billion in 2024 primarily due to increases in cash related to the Issuance of long-term debt, net of discount and issuance costs and Redemption of long-term debt, partially offset by a decrease in cash related to Short-term borrowings, net.
Previous wording
DTE Energy has $2.4 billion in long-term debt, including securitization bonds and finance leases, maturing within twelve months. Repayment of the debt is expected to be made through internally generated funds and the issuance of short-term and/or long-term debt.
Current wording
DTE Energy has $3.2 billion in long-term debt, including securitization bonds and finance leases, maturing within twelve months. Repayment of the debt is expected to be made through internally generated funds, the issuance of short-term and/or long-term debt, and the redemption of time deposits.
Previous wording
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, 2024, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $413 million.
Current wording
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 June 30, 2024, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $439 million.
Previous wording
DTE Energy has approximately $3.0 billion of available liquidity at March 31, 2024, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.
Current wording
DTE Energy has approximately $2.5 billion of available liquidity at June 30, 2024, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Operating Income increased $7 million for the three months ended June 30, 2024, which includes a $22 million favorable change in timing related gains primarily related to gas strategies that will reverse in future periods as the underlying contracts settle. The increase also includes a $5 million unfavorable change in timing related gains primarily related to gas strategies that were recognized in previous periods and reversed in the current period as the underlying contracts settled.