DTE ENERGY CO

Previous 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.

Current wording

The decrease in Net Income Attributable to DTE Energy Company for the three months ended June 30, 2025 was primarily due to lower earnings at Corporate and Other and in the Energy Trading segment, partially offset by higher earnings in the Electric segment. The increase for the six-month period was primarily due to higher earnings in the Gas, DTE Vantage, and Energy Trading segments, partially offset by lower earnings at Corporate and Other.

Previous 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:

Current wording

Operating Revenues increased $70 million and $59 million in the three and six months ended June 30, 2025, 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

(b)Includes MPSC disallowance of $28 million resulting from an order in DTE Electric's 2022 PSCR reconciliation case. The disallowance reduced the amount of power supply costs recoverable from customers, which had a flow-through impact of approximately $5 million higher interest expense recorded separately to Other (Income) and Deductions.

Current wording

(a)For the six months ended June 30, 2025, the variance includes an MPSC disallowance of $28 million resulting from an order in DTE Electric's 2022 PSCR reconciliation case. The disallowance reduced the amount of power supply costs recoverable from customers, which had a flow-through impact of approximately $5 million higher interest expense recorded separately to Other (Income) and Deductions.

Previous wording

(a)Change is primarily driven by the impact of solar ITCs recognized for assets placed in service in first quarter 2025, which is offset in Income Tax Expense (Benefit) throughout 2025.

Current wording

(b)For the six months ended June 30, 2025, the change is primarily driven by the impact of solar ITCs recognized for assets placed in service in the first quarter. This impact is offset in Income Tax Expense (Benefit) throughout 2025.

Previous 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:

Current wording

Fuel and purchased power — utility expense increased $15 million and $58 million in the three and six months ended June 30, 2025, respectively. The increase in both periods was due to the following:

Previous 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.

Current wording

Operation and maintenance expense increased $35 million and decreased $4 million in the three and six months ended June 30, 2025, respectively. The increase in the second quarter was primarily due to higher plant generation expense of $11 million, higher corporate support costs of $7 million, higher legal expense of $6 million, higher distribution operations expense of $5 million, and higher benefits and other compensation expense of $5 million. The decrease in the six-month period was primarily due to one-time costs in 2024 of $32 million resulting from the voluntary separation incentive program, partially offset by higher benefits and other compensation expense of $11 million, higher EWR expense of $9 million, and higher legal expense of $9 million.

Previous 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.

Current wording

Depreciation and amortization expense increased $23 million and $52 million in the three and six months ended June 30, 2025, respectively. The increase in both periods was primarily due to higher depreciable base.

Previous 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.

Current wording

Taxes other than income increased $10 million in the six months ended June 30, 2025. The increase in the six-month period was primarily due to higher property taxes.

Previous wording

Income Tax Expense (Benefit) changed $21 million in the three months ended March 31, 2025. The change was primarily due to higher investment tax credits in 2025.

Current wording

Income Tax Expense (Benefit) changed $48 million and $69 million in the three and six months ended June 30, 2025, respectively. The change in both periods was primarily due to higher investment tax credits in 2025 and lower earnings, partially offset by lower production tax credits in 2025.

Previous 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:

Current wording

Operating Revenues — Utility operations increased $27 million and $192 million in the three and six months ended June 30, 2025, 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 increase in both periods was due to the following:

Previous wording

Cost of gas — utility expense increased $70 million in the three months ended March 31, 2025. The increase was primarily due to higher sales volumes of $44 million and higher cost of gas of $26 million.

Current wording

Cost of gas — utility expense increased $7 million and $77 million in the three and six months ended June 30, 2025, respectively. The increase in the second quarter was primarily due to higher sales volumes of $11 million, partially offset by lower cost of gas of $4 million. The increase in the six-month period was primarily due to higher sales volumes of $57 million and higher cost of gas of $20 million.

Previous 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.

Current wording

Operation and maintenance expense increased $21 million and $41 million in the three and six months ended June 30, 2025, respectively. The increase in the second quarter was primarily due to higher gas operations expense of $12 million, higher EWR expense of $3 million, higher corporate support costs of $3 million, and higher benefits and other compensation expense of $2 million. The increase in the six-month period was primarily due to higher gas operations expense of $25 million, higher EWR expense of $7 million, higher uncollectible expense of $6 million, higher legal expense of $6 million, and higher corporate support costs of $3 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

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

Current wording

Operating Revenues — Non-utility operations decreased $12 million and $8 million in the three and six months ended June 30, 2025, respectively. The decrease in both periods was due to the following:

Previous 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:

Current wording

Fuel, purchased power, and gas — non-utility expense decreased $10 million and $13 million in the three and six months ended June 30, 2025, respectively. The decrease in both periods was due to the following:

Previous 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.

Current wording

Taxes other than income expense increased $1 million and $3 million in the three and six months ended June 30, 2025, respectively. The increase in the six-month period was primarily due to higher property taxes associated with a new project in the On-site business.

Previous 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.

Current wording

Other (Income) and Deductions decreased $26 million and $6 million in the three and six months ended June 30, 2025, respectively. The decrease in the second quarter was primarily due to a gain in the Renewables business of $25 million attributed to the sale of a partnership interest in the prior year. The decrease in the six-month period was primarily due to the prior year gain of $25 million in the Renewables business and higher interest expense of $3 million, partially offset by higher equity earnings of $14 million and higher interest income of $9 million primarily associated with a new project in the On-site business.

Previous wording

Income Taxes — Tax credits increased $14 million in the three months ended March 31, 2025. The increase was primarily due to higher estimated production tax credits in the Renewables business.

Current wording

Income Taxes — Tax credits increased $15 million and $29 million in the three and six months ended June 30, 2025, respectively. The increase in both periods was primarily due to higher estimated production tax credits in the Renewables business.

Previous 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:

Current wording

Operating Revenues — Non-utility operations increased $487 million and $1,580 million in the three and six months ended June 30, 2025, respectively. The following tables detail changes relative to the comparable prior periods:

Previous 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:

Current wording

Purchased power, gas, and other — non-utility expense increased $557 million and $1,558 million in the three and six months ended June 30, 2025, respectively. The following tables detail changes relative to the comparable prior periods:

Previous 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.

Current wording

Operation and maintenance expense increased $3 million in the six months ended June 30, 2025. The increase in the six-month period was primarily due to higher compensation costs.

Previous 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.

Current wording

Operating Income (Loss) increased $17 million for the six months ended June 30, 2025, which includes a $104 million unfavorable change in timing related gains and losses primarily related to gas strategies that will reverse in future periods as the underlying contracts settle. The increase also includes a $89 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

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.

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 loss of $110 million and $100 million for the three and six months ended June 30, 2025, respectively, represents an increase of $70 million and $39 million from the net loss of $40 million and $61 million in the comparable 2024 periods. The increase in the second quarter was primarily due to effective income tax rate adjustments, higher state income taxes, including the $14 million impact from the Illinois state tax law change, and higher interest expense. The increase in the six-month period was primarily due to higher net interest expense and higher state income taxes.

Previous 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.

Current wording

Net cash from operations decreased by $72 million in 2025. The decrease was primarily due to decreases in cash related to Deferred income taxes and working capital items, partially offset by increases in Net Income and Depreciation and amortization.

Previous 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.

Current wording

The change in working capital items in 2025 was primarily due to decreases in cash related to Derivative assets and liabilities, Regulatory assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by increases in cash related to Accounts receivable, net, Accounts payable, and Accrued pension liability.

Previous 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.

Current wording

Net cash used for investing activities decreased by $1.5 billion in 2025 primarily due to decreases in utility plant and equipment expenditures, Notes receivable, and the Investment in time deposits in 2024.

Previous 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.

Current wording

Net cash from financing activities decreased by $1.5 billion in 2025 primarily due to decreases in cash related to lower Issuance of long-term debt, net of discount and issuance costs and higher Redemption of long-term debt, partially offset by lower cash used for the repayment of Short-term borrowings, net.

Previous 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.

Current wording

DTE Energy has $248 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

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.

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, 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 $348 million.

Previous 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.

Current wording

DTE Energy has approximately $2.3 billion of available liquidity at June 30, 2025, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.