DTE ENERGY CO

Previous wording

The increase in Net Income Attributable to DTE Energy Company for the three and nine months ended September 30, 2024 was primarily due to higher earnings in the Electric and Corporate and Other segments, partially offset by lower earnings in the Energy Trading, Gas, and DTE Vantage segments.

Current wording

The increase in Net Income Attributable to DTE Energy Company for the three months ended March 31, 2025 was primarily due to higher earnings in the Energy Trading, Gas, and DTE Vantage segments and Corporate and Other, partially offset by lower earnings in the Electric segment.

Previous wording

DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption, will drive a continued need for substantial grid investment over the long-term.

Current wording

DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption and potential for data centers, will drive a continued need for substantial grid investment over the long-term.

Previous wording

Additionally, as a result of legislation passed by the state of Michigan in 2023, DTE Energy will be required to meet a 100% clean energy portfolio standard by 2040. Clean energy sources include renewables, nuclear, and natural gas-fired plants equipped with a carbon capture and storage system that is at least 90% effective in reducing carbon emissions to the atmosphere. The legislation also requires 50% of an electric utility's energy to be generated from renewable sources by 2030 and 60% by 2035. DTE Energy is currently assessing the impacts of this legislation and will include updates in its next Integrated Resource Plan to comply with the new requirements.

Current wording

Additionally, as a result of legislation passed by the state of Michigan in 2023, DTE Energy will be required to meet a 100% clean energy portfolio standard by 2040. Clean energy sources include renewables, nuclear, and natural gas-fired plants equipped with a carbon capture and storage system that is at least 90% effective in reducing carbon emissions to the atmosphere. The legislation also requires 50% of an electric utility's energy to be generated from renewable sources by 2030 and 60% by 2035. DTE Energy is currently assessing the impacts of this legislation and will include updates in its next Integrated Resource Plan, currently planned for 2026, to comply with the new requirements.

Previous wording

To achieve carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives. Refer to the "Capital Investments" section below for further discussion regarding DTE Energy's retirement of its aging coal-fired plants and transition to renewable energy and other sources. Over the long-term, DTE Energy is also monitoring the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability.

Current wording

To achieve carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives. Refer to the "Capital Investments" section below for further discussion regarding DTE Energy's retirement of its aging coal-fired plants and transition to renewable energy and other sources. Over the long-term, DTE Energy is also monitoring and pursuing the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability.

Previous wording

DTE Electric's capital investments over the 2024-2028 period are estimated at $20 billion, comprised of $9 billion for distribution infrastructure, $4 billion for base infrastructure, and $7 billion for cleaner generation including renewables.

Current wording

DTE Electric's capital investments over the 2025-2029 period are estimated at $24 billion, comprised of $10 billion for distribution infrastructure, $4 billion for base infrastructure, and $10 billion for cleaner generation including renewables.

Previous wording

DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities, and plans to repurpose the Trenton Channel plant to a battery energy storage system in 2026. DTE Electric has also announced plans to retire its remaining six coal-fired generating units, including converting the two units at the Belle River facility from a base load coal plant to a natural gas peaking resource in 2025-2026. The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032. Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation.

Current wording

DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities, and plans to repurpose the Trenton Channel plant to a battery energy storage system in 2026. DTE Electric has also announced plans to retire its remaining six coal-fired generating units, including converting the two units at the Belle River facility from a base load coal plant to a natural gas peaking resource in the second half of 2025 and 2026. The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032. Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation.

Previous wording

DTE Gas' capital investments over the 2024-2028 period are estimated at $3.7 billion, comprised of $2.1 billion for base infrastructure and $1.6 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects.

Current wording

DTE Gas' capital investments over the 2025-2029 period are estimated at $4.0 billion, comprised of $2.5 billion for base infrastructure and $1.5 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects.

Previous wording

DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $1 billion to $1.5 billion from 2024-2028 for renewable energy projects and custom energy solutions, while expanding into carbon capture and sequestration.

Current wording

DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $1.5 billion to $2.0 billion from 2025-2029 for custom energy solutions and renewable energy, while expanding into carbon capture and sequestration.

Previous wording

•employee engagement, health, safety and wellbeing, and diversity, equity, and inclusion;

Current wording

•employee engagement and health, safety, and wellbeing;

Previous wording

Operating Revenues increased $71 million and $449 million in the three and nine months ended September 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:

Current wording

Operating Revenues decreased $11 million in the three months ended March 31, 2025. 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 decrease was due to the following:

Previous wording

Fuel and purchased power — utility expense increased $23 million and $135 million in the three and nine months ended September 30, 2024, respectively. The increase in both periods was due to the following:

Current wording

Fuel and purchased power — utility expense increased $43 million in the three months ended March 31, 2025. The increase was due to the following:

Previous wording

Operation and maintenance expense decreased $25 million and $31 million in the three and nine months ended September 30, 2024, respectively. The decrease in the third quarter was primarily due to lower distribution operations expense of $38 million (primarily due to lower storm restoration costs), lower plant generation expense of $9 million, and lower EWR expense of $6 million, partially offset by higher RPS expense of $15 million, higher uncollectible expense of $11 million, and higher legal expense of $4 million. The decrease in the nine-month period was primarily due to lower distribution operations expense of $113 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 RPS expense of $22 million, higher uncollectible expense of $15 million, higher legal expense of $7 million, and higher plant generation expense of $6 million.

Current wording

Operation and maintenance expense decreased $39 million in the three months ended March 31, 2025. The decrease was primarily due to one-time costs in 2024 of $31 million resulting from the voluntary separation incentive program and lower distribution operations expense of $16 million (primarily due to lower storm restoration costs), partially offset by higher benefits and other compensation expense of $6 million.

Previous wording

Depreciation and amortization expense increased $6 million and $13 million in the three and nine months ended September 30, 2024, respectively. The increase in both periods was primarily due to a higher depreciable base.

Current wording

Depreciation and amortization expense increased $29 million in the three months ended March 31, 2025. The increase was primarily due to a higher depreciable base.

Previous wording

Taxes other than income increased $3 million and $7 million in the three and nine months ended September 30, 2024, respectively. The increase in both periods was primarily due to higher property taxes.

Current wording

Taxes other than income increased $10 million in the three months ended March 31, 2025. The increase was primarily due to higher property taxes.

Previous wording

DTE Electric filed a rate case with the MPSC on March 28, 2024 requesting an increase in base rates of $456 million based on a projected twelve-month period ending December 31, 2025, and an increase in return on equity from 9.9% to 10.5%. The requested increase in base rates was primarily due to the capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy. The requested increase in base rates was also due to the increased cost of debt resulting from market dynamics and increasing operating and maintenance expenses. A final MPSC order in this case is expected in January 2025.

Current wording

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.

Previous wording

Operating Revenues — Utility operations increased $3 million and decreased $15 million in the three and nine months ended September 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 change in both periods was due to the following:

Current wording

Operating Revenues — Utility operations increased $165 million in the three months ended March 31, 2025. 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:

Previous wording

Operation and maintenance expense increased $10 million and $23 million in the three and nine months ended September 30, 2024, respectively. The increase in the third quarter was primarily due to higher uncollectible expense of $7 million and higher gas operations expense of $5 million. The increase in the nine-month period was primarily due to higher gas operations expense of $13 million, one-time costs resulting from the voluntary separation incentive program of $8 million, and higher uncollectible expense of $6 million, partially offset by lower legal expenses of $2 million.

Current wording

Operation and maintenance expense increased $20 million in the three months ended March 31, 2025. The increase was primarily due to higher gas operations expense of $12 million, higher legal expense of $5 million, higher uncollectible expense of $5 million, and higher energy waste reduction expense of $4 million, partially offset by one-time costs resulting from the voluntary separation incentive program of $8 million in the prior year that did not repeat in 2025.

Previous wording

Taxes other than income expense increased $2 million and $7 million in the three and nine months ended September 30, 2024, respectively. The increase in both periods was primarily due to higher property taxes.

Current wording

Taxes other than income expense increased $5 million in the three months ended March 31, 2025. The increase was primarily due to higher property taxes.

Previous wording

Depreciation and amortization expense increased $4 million in the nine-month period ended September 30, 2024. The increase in the nine-month period was primarily due to new projects in the Renewables business.

Current wording

Other (Income) and Deductions increased $4 million in the three months ended March 31, 2025. The increase was primarily due to higher interest expense.

Previous wording

Operating Revenues — Non-utility operations decreased $9 million and $17 million in the three and nine months ended September 30, 2024, respectively. The decrease in both periods was due to the following:

Current wording

Operating Revenues — Non-utility operations increased $4 million in the three months ended March 31, 2025. The increase was due to the following:

Previous wording

Fuel, purchased power, and gas — non-utility expense decreased $11 million and $9 million in the three and nine months ended September 30, 2024, respectively. The decrease in both periods was due to the following:

Current wording

Fuel, purchased power, and gas — non-utility expense decreased $3 million in the three months ended March 31, 2025. The decrease was due to the following:

Previous wording

Other (Income) and Deductions increased $16 million and $41 million in the three and nine months ended September 30, 2024, respectively. The increase in the third quarter was primarily due to higher interest income of $12 million associated with a new project in the On-site business and higher equity earnings of $8 million, partially offset by higher interest expense of $3 million. The increase in the nine-month period was primarily due to higher interest income of $28 million associated with a new project in the On-site business and a gain in the Renewables business of $25 million attributed to the sale of a partnership interest, partially offset by higher interest expense of $10 million.

Current wording

Other (Income) and Deductions changed $20 million in the three months ended March 31, 2025. The change was primarily due to higher equity earnings of $13 million and higher interest income associated with a new project in the On-site business of $10 million, partially offset by higher interest expense of $3 million.

Previous wording

Operating Revenues — Non-utility operations decreased $53 million and $755 million in the three and nine months ended September 30, 2024, respectively. The following tables detail changes relative to the comparable prior periods:

Current wording

Operating Revenues — Non-utility operations increased $1,093 million in the three months ended March 31, 2025. The following table details changes relative to the comparable prior period:

Previous wording

Purchased power, gas, and other — non-utility expense decreased $23 million and $550 million in the three and nine months ended September 30, 2024, respectively. The following tables detail changes relative to the comparable prior periods:

Current wording

Purchased power, gas, and other — non-utility expense increased $1,001 million in the three months ended March 31, 2025. The following table details changes relative to the comparable prior period:

Previous wording

Operation and maintenance expense decreased $1 million and increased $7 million in the three and nine months ended September 30, 2024, respectively. The increase in the nine-month period was primarily due to higher compensation costs.

Current wording

Operation and maintenance expense increased $3 million in the three months ended March 31, 2025. The increase was primarily due to higher compensation costs.

Previous wording

Operating Income decreased $212 million for the nine months ended September 30, 2024, which includes a $139 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 $93 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.

Current wording

Operating Income (Loss) increased $90 million for the three months ended March 31, 2025, which includes a $47 million unfavorable 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 $96 million favorable 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

See also the "Fair Value" section herein and Notes 6 and 7 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

Current wording

See also the "Fair Value" section herein and Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

Previous wording

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including investments supporting regional development and economic growth. The net loss of $22 million and $83 million for the three and nine months ended September 30, 2024, respectively, represents a decrease of $30 million and $19 million from the net loss of $52 million and $102 million in the comparable 2023 periods. The decrease in the third quarter was primarily due to the effective tax rate adjustments. The decrease in the nine-month period was primarily due to the effective tax rate adjustments and higher equity investment income, partially offset by higher net interest expense and higher state income taxes.

Current wording

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including investments supporting regional development and economic growth. The net income of $10 million for the three months ended March 31, 2025 represents a change of $31 million from the net loss of $21 million in the comparable 2024 period. The change was primarily due to effective income tax rate adjustments, partially offset by higher net interest expense and higher federal and state income taxes.

Previous wording

DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 2024 will be approximately $3.3 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and energy waste reduction expenditures, and expenditures for non-utility businesses of approximately $4.7 billion in 2024. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria.

Current wording

DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 2025 will be approximately $3.3 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and energy waste reduction expenditures, and expenditures for non-utility businesses of approximately $4.9 billion in 2025. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria.

Previous wording

Net cash from operations increased by $184 million in 2024. The increase was primarily due to increases in Net income, Depreciation and amortization, and working capital items, partially offset by decreases in cash related to deferred taxes and Allowance for equity funds used during construction.

Current wording

Net cash from operations decreased by $22 million in 2025. The decrease was primarily due to a decrease in cash related to working capital items, partially offset by an increase in Net income.

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 2025 was primarily due to decreases in cash related to Accounts receivable, net, Derivative assets and liabilities, Regulatory assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by increases in cash related to Inventories and Accounts payable.

Previous wording

Net cash used for investing activities increased by $1.8 billion in 2024 primarily due to the Investment in time deposits and increases in utility plant and equipment expenditures and Notes receivable.

Current wording

Net cash used for investing activities decreased by $648 million in 2025 primarily due to decreases in utility plant and equipment expenditures, Notes receivable, and the Investment in time deposit in 2024.

Previous wording

Net cash from financing activities increased by $2.5 billion in 2024 primarily due to increases in cash related to the Issuance of long-term debt, net of issuance costs and Redemption of long-term debt, partially offset by a decrease in cash related to Short-term borrowings, net.

Current wording

Net cash used for financing activities changed by $922 million in 2025 primarily due to decreases 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 an increase in cash related to Short-term borrowings, net.

Previous wording

DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending which will increase the base from which rates are determined. DTE Energy expects long-term growth in sales related to vehicle electrification, but no significant impacts in the near-term. Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage expects enhanced growth opportunities in decarbonization as a result of the Inflation Reduction Act, including tax credits for renewable natural gas and carbon capture projects.

Current wording

DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending which will increase the base from which rates are determined. Further, the Inflation Reduction Act allows for extended tax benefits for renewable technologies, increased rates for PTCs and an option to claim PTCs for solar projects, expanded qualified ITC facilities to include standalone energy storage, and allows for the transfer of tax credits generated from renewable projects. DTE Electric expects to continue to monetize these tax credits to generate cash flows in the near-term. DTE Energy expects long-term growth in sales related to vehicle electrification, but no significant impacts in the near-term. Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage also expects enhanced growth opportunities in decarbonization as a result of the Inflation Reduction Act, including tax credits for renewable natural gas and carbon capture projects.

Previous wording

Over the long-term, DTE Energy does not have any equity commitments and will continue to evaluate equity needs on an annual basis. DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring changes in interest rates and impacts on the cost of borrowing.

Current wording

Over the long-term, some additional equity may be needed beginning in 2028 to support long-term growth. DTE Energy will continue to evaluate equity needs on an annual basis. DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring changes in interest rates and impacts on the cost of borrowing.

Previous 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.

Current wording

DTE Energy has $946 million 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.

Previous wording

DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $0.8 billion in 2024. Any payment of future dividends is subject to approval by the Board of Directors and may depend on DTE Energy's future earnings, capital requirements, and financial condition. Over the long-term, DTE Energy expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies.

Current wording

DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $0.9 billion in 2025. Any payment of future dividends is subject to approval by the Board of Directors and may depend on DTE Energy's future earnings, capital requirements, and financial condition. Over the long-term, DTE Energy expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies.

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 September 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 $420 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 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.

Previous wording

DTE Energy has approximately $3.0 billion of available liquidity at September 30, 2024, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.

Current wording

DTE Energy has approximately $2.4 billion of available liquidity at March 31, 2025, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.

Previous wording

Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, some environmental contracts, and certain forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas and environmental inventory, pipeline transportation contracts, storage assets, and some environmental contracts. See Notes 6 and 7 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

Current wording

Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, some environmental contracts, and certain forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas and environmental inventory, pipeline transportation contracts, storage assets, and some environmental contracts. See Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.