FILING FORMAT

This combined Form 10-Q is separately filed by DTE Energy and DTE Electric. Information in this combined Form 10-Q relating to each individual Registrant is filed by such Registrant on its own behalf. DTE Electric makes no representation regarding information relating to any other companies affiliated with DTE Energy other than its own subsidiaries. Neither DTE Energy, nor any of DTE Energy’s other subsidiaries (other than DTE Electric), has any obligation in respect of DTE Electric's debt securities, and holders of such debt securities should not consider the financial resources or results of operations of DTE Energy nor any of DTE Energy’s other subsidiaries (other than DTE Electric and its own subsidiaries (in relevant circumstances)) in making a decision with respect to DTE Electric's debt securities. Similarly, none of DTE Electric nor any other subsidiary of DTE Energy has any obligation in respect ofto debt securities of DTE Energy. This combined Form 10-Q should be read in its entirety. No one section of this combined Form 10-Q deals with all aspects of the subject matter of this combined Form 10-Q. This combined Form 10-Q ~~report~~ should be read in conjunction with the Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements and with Management's Discussion and Analysis included in the combined DTE Energy and DTE Electric ~~2016~~2022 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

Certain information presented herein includes ~~“forward-looking statements”~~"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of the Registrants. Words such as ~~“anticipate,” “believe,” “expect,” “may,” “could,” “projected,” “aspiration,” “plans,”~~"anticipate," "believe," "expect," "may," "could," "projected," "aspiration," "plans," and ~~“goals”~~"goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of the Registrants including, but not limited to, the following:

•impact of regulation by the EPA, EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures;

•the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs;

•economic conditions and population changes in the Registrants' geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas;

•the operational failure of electric or gas distribution systems or infrastructure;

•impact of volatility in prices in international steel markets and in prices of environmental attributes generated from renewable natural gas investments on the operations of DTE Vantage;

•the risk of a major safety incident;

•environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;

•the cost of protecting assets and customer data against, or damage due to, cyber incidents and terrorism;

•health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities;

~~changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;~~

~~volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy;~~

~~impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations;~~

~~impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations;~~

•volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations;

•changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;

•advances in technology that produce power, store power, or reduce power consumption;

•changes in the financial condition of ~~DTE Energy's~~ significant customers and strategic partners;

•the potential for losses on investments, including nuclear decommissioning trust and benefit plan assets and the related increases in future expense and contributions;

Table of Contents

•access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;

•instability in capital markets which could impact availability of short and long-term financing;

•impacts of inflation and the timing and extent of changes in interest rates;

•the level of borrowings;

•the potential for increased costs or delays in completion of significant capital projects;

•changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits;

•the effects of weather and other natural phenomena, including climate change, on operations and sales to customers, and purchases from suppliers;

•unplanned ~~outages;~~outages at our generation plants;

~~the cost of protecting assets against, or damage due to, cyber crime and terrorism;~~

•employee relations and the impact of collective bargaining agreements;

~~the risk of a major safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility;~~

•the availability, cost, coverage, and terms of insurance and stability of insurance providers;

•cost reduction efforts and the maximization of plant and distribution system performance;

•the effects of competition;

•changes in and application of accounting standards and financial reporting regulations;

•changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues;

•successful execution of new business development and future growth plans;

•contract disputes, binding arbitration, litigation, and related appeals;

~~implementation~~•the ability of ~~new information systems;~~the electric and gas utilities to achieve net zero emissions goals; and

•the risks discussed in the Registrants' public filings with the Securities and Exchange Commission.

New factors emerge from time to time. The Registrants cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. The Registrants undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

Part I — Financial Information

Item 1. Financial Statements

Table of Contents

DTE Energy Company

Consolidated Statements of Operations (Unaudited)

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions, except per share amounts)
Operating Revenues
Utility operations $ 1,573
$ 1,748
$ 4,714
$ 4,847
Non-utility operations 1,672
1,180
4,622
2,909
3,245
2,928
9,336
7,756

Operating Expenses
Fuel, purchased power, and gas — utility 437
503
1,362
1,482
Fuel, purchased power, and gas — non-utility 1,469
1,034
3,897
2,527
Operation and maintenance 566
562
1,725
1,620
Depreciation and amortization 258
230
756
702
Taxes other than income 91
92
297
282
Asset (gains) losses and impairments, net 6
—
9
(1 )
2,827
2,421
8,046
6,612
Operating Income 418
507
1,290
1,144

Other (Income) and Deductions
Interest expense 146
114
404
341
Interest income (4 ) (3 ) (9 ) (17 )
Other income (74 ) (51 ) (204 ) (160 )
Other expenses 13
12
26
27
81
72
217
191
Income Before Income Taxes 337
435
1,073
953

Income Tax Expense 74
110
241
243

Net Income 263
325
832
710

Less: Net Loss Attributable to Noncontrolling Interests (7 ) (13 ) (15 ) (27 )

Net Income Attributable to DTE Energy Company $ 270
$ 338
$ 847
$ 737

Basic Earnings per Common Share
Net Income Attributable to DTE Energy Company $ 1.51
$ 1.88
$ 4.72
$ 4.10

Diluted Earnings per Common Share
Net Income Attributable to DTE Energy Company $ 1.51
$ 1.88
$ 4.72
$ 4.10

Weighted Average Common Shares Outstanding
Basic 179
179
179
179
Diluted 179
180
179
180
Dividends Declared per Common Share $ 0.825
$ 0.77
$ 2.475
$ 2.23


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions, except per share amounts)
Operating Revenues
Utility operations	$	1,827	$	2,053	$	5,504	$	6,196
Non-utility operations	1,061		3,198		3,847		8,556
	2,888		5,251		9,351		14,752
Operating Expenses
Fuel, purchased power, and gas — utility	435		594		1,364		1,901
Fuel, purchased power, gas, and other — non-utility	864		3,023		3,226		8,324
Operation and maintenance	545		608		1,650		1,803
Depreciation and amortization	404		369		1,185		1,093
Taxes other than income	114		111		350		349
Asset (gains) losses and impairments, net	(12)		1		(11)		(4)
	2,350		4,706		7,764		13,466
Operating Income	538		545		1,587		1,286

Other (Income) and Deductions
Interest expense	200		171		583		486
Interest income	(15)		(10)		(45)		(26)
Non-operating retirement benefits, net	1		(5)		9		(13)

Other income	(13)		(16)		(70)		(35)
Other expenses	11		12		26		56
	184		152		503		468
Income Before Income Taxes	354		393		1,084		818

Income Tax Expense	22		6		106		—









Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818

Basic Earnings per Common Share


Net Income Attributable to DTE Energy Company	$	1.61	$	2.00	$	4.74	$	4.22

Diluted Earnings per Common Share


Net Income Attributable to DTE Energy Company	$	1.61	$	1.99	$	4.74	$	4.21

Weighted Average Common Shares Outstanding
Basic	206		193		206		193
Diluted	206		194		206		194

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Energy Company~~

~~Consolidated Statements of Comprehensive Income (Unaudited)~~

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Net Income $ 263
$ 325
$ 832
$ 710

Other comprehensive income, net of tax:
Benefit obligations, net of taxes of $2, $2, $6, and $3, respectively 3
4
10
6
Net unrealized gains on investments during the period, net of taxes of $1, respectively —
1
1
1
Foreign currency translation 2
(1 ) 2
—
Other comprehensive income 5
4
13
7

Comprehensive income 268
329
845
717
Less: Comprehensive loss attributable to noncontrolling interests (7 ) (13 ) (15 ) (27 )
Comprehensive Income Attributable to DTE Energy Company $ 275
$ 342
$ 860
$ 744

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Energy Company~~

~~Consolidated Statements of Financial Position (Unaudited)~~

September 30, December 31,
2017 2016
(In millions)
ASSETS
Current Assets
Cash and cash equivalents $ 63
$ 92
Restricted cash 23
21
Accounts receivable (less allowance for doubtful accounts of $39 and $41, respectively)
Customer 1,395
1,522
Other 166
71
Inventories
Fuel and gas 453
416
Materials and supplies 363
356
Derivative assets 76
47
Regulatory assets 6
42
Other 270
195
2,815
2,762
Investments
Nuclear decommissioning trust funds 1,439
1,320
Investments in equity method investees 971
752
Other 224
201
2,634
2,273
Property
Property, plant, and equipment 30,924
30,029
Accumulated depreciation and amortization (10,617 ) (10,299 )
20,307
19,730
Other Assets
Goodwill 2,293
2,286
Regulatory assets 3,828
3,871
Intangible assets 883
842
Notes receivable 74
73
Derivative assets 62
34
Other 175
170
7,315
7,276
Total Assets $ 33,071
$ 32,041

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

~~Consolidated Statements of Financial Position (Unaudited) — (Continued)~~

September 30, December 31,
2017 2016
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 994
$ 1,079
Accrued interest 131
96
Dividends payable 148
148
Short-term borrowings 659
499
Current portion long-term debt, including capital leases 109
14
Derivative liabilities 42
69
Regulatory liabilities 86
34
Other 429
498
2,598
2,437
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other 11,038
10,506
Junior subordinated debentures 756
756
Capital lease obligations 1
7
11,795
11,269
Other Liabilities

Deferred income taxes 4,396
4,162
Regulatory liabilities 489
555
Asset retirement obligations 2,288
2,197
Unamortized investment tax credit 138
93
Derivative liabilities 48
98
Accrued pension liability 922
1,152
Accrued postretirement liability 6
36
Nuclear decommissioning 213
194
Other 325
349
8,825
8,836
Commitments and Contingencies (Notes 5 and 11)

Equity
Common stock, without par value, 400,000,000 shares authorized, and 179,390,286 and 179,432,581 shares issued and outstanding, respectively 3,978
4,030
Retained earnings 5,515
5,114
Accumulated other comprehensive loss (120 ) (133 )
Total DTE Energy Company Equity 9,373
9,011
Noncontrolling interests 480
488
Total Equity 9,853
9,499
Total Liabilities and Equity $ 33,071
$ 32,041

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Energy Company~~

~~Consolidated Statements of Cash Flows (Unaudited)~~

Nine Months Ended September 30,
2017 2016
(In millions)
Operating Activities
Net Income $ 832
$ 710
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization 756
702
Nuclear fuel amortization 39
44
Allowance for equity funds used during construction (17 ) (15 )
Deferred income taxes 261
244
Equity earnings of equity method investees (77 ) (49 )
Dividends from equity method investees 55
52
Asset (gains) losses and impairments, net 5
—
Changes in assets and liabilities:
Accounts receivable, net 43
6
Inventories (41 ) 10
Accounts payable 25
39
Accrued pension liability (230 ) (1 )
Accrued postretirement liability (30 ) (80 )
Derivative assets and liabilities (133 ) 122
Regulatory assets and liabilities 260
93
Other current and noncurrent assets and liabilities (198 ) (110 )
Net cash from operating activities 1,550
1,767
Investing Activities
Plant and equipment expenditures — utility (1,439 ) (1,267 )
Plant and equipment expenditures — non-utility (133 ) (75 )
Proceeds from sale of nuclear decommissioning trust fund assets 951
1,135
Investment in nuclear decommissioning trust funds (936 ) (1,140 )
Distributions from equity method investees 10
8
Contributions to equity method investees (194 ) (199 )
Other (63 ) 35
Net cash used for investing activities (1,804 ) (1,503 )
Financing Activities
Issuance of long-term debt, net of issuance costs 1,010
646
Redemption of long-term debt (385 ) (322 )
Repurchase of long-term debt —
(59 )
Short-term borrowings, net 160
(89 )
Repurchase of common stock (51 ) (33 )
Dividends on common stock (444 ) (393 )
Other (65 ) 15
Net cash from (used for) financing activities 225
(235 )
Net Increase (Decrease) in Cash and Cash Equivalents (29 ) 29
Cash and Cash Equivalents at Beginning of Period 92
37
Cash and Cash Equivalents at End of Period $ 63
$ 66

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable $ 222
$ 168

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Energy Company~~

~~Consolidated Statements of Changes in Equity (Unaudited)~~

Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests
Common Stock
Shares Amount Total
(Dollars in millions, shares in thousands)
Balance, December 31, 2016 179,433
$ 4,030
$ 5,114
$ (133 ) $ 488
$ 9,499
Net Income (Loss) —
—
847
—
(15 ) 832
Dividends declared on common stock —
—
(444 ) —
—
(444 )
Repurchase of common stock (524 ) (51 ) —
—
—
(51 )
Benefit obligations, net of tax —
—
—
10
—
10
Net change in unrealized gains on investments, net of tax —
—
—
1
—
1
Foreign currency translation —
—
—
2
—
2
Stock-based compensation, net contributions from noncontrolling interests, and other 481
(1 ) (2 ) —
7
4
Balance, September 30, 2017 179,390
$ 3,978
$ 5,515
$ (120 ) $ 480
$ 9,853

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Electric Company~~

~~Consolidated Statements of Operations (Unaudited)~~

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Utility operations $ 1,434
$ 1,608
$ 3,827
$ 3,976

Operating Expenses
Fuel and purchased power — utility 428
495
1,097
1,191
Operation and maintenance 349
363
1,068
1,019
Depreciation and amortization 188
176
549
539
Taxes other than income 74
73
229
216
1,039
1,107
2,943
2,965
Operating Income 395
501
884
1,011

Other (Income) and Deductions
Interest expense 68
66
206
196
Interest income —
—
—
(8 )
Other income (21 ) (15 ) (57 ) (48 )
Other expenses 11
9
23
22
58
60
172
162
Income Before Income Taxes 337
441
712
849

Income Tax Expense 118
156
249
302

Net Income $ 219
$ 285
$ 463
$ 547

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Electric Company~~

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016			2023		2022		2023		2022
	(In millions)									(In millions)
Net Income	$	219	$	285	$	463	$	547	Net Income	$	332	$	387	$	978	$	818

Other comprehensive income (loss), net of tax:									Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $—, $—, $1, and $2, respectively									Benefit obligations, net of taxes of $—, $—, $1, and $2, respectively	1		2		2		7
Net unrealized gains on derivatives, net of taxes of $4, $1, $5, and $2, respectively									Net unrealized gains on derivatives, net of taxes of $4, $1, $5, and $2, respectively	15		4		17		7

Foreign currency translation									Foreign currency translation	(3)		—		(1)		—
Other comprehensive income	—		—		—		—		Other comprehensive income	13		6		18		14
Comprehensive Income	$	219	$	285	$	463	$	547

Comprehensive Income Attributable to DTE Energy Company									Comprehensive Income Attributable to DTE Energy Company	$	345	$	393	$	996	$	832

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Electric Company~~

~~Consolidated Statements of Financial Position (Unaudited)~~

September 30, December 31,
2017 2016
(In millions)
ASSETS
Current Assets
Cash and cash equivalents $ 12
$ 13
Accounts receivable (less allowance for doubtful accounts of $23 and $25, respectively)
Customer 770
728
Affiliates 16
12
Other 86
29
Inventories
Fuel 182
225
Materials and supplies 282
271
Regulatory assets 5
36
Prepaid property tax 107
45
Other 14
18
1,474
1,377
Investments
Nuclear decommissioning trust funds 1,439
1,320
Other 35
36
1,474
1,356
Property
Property, plant, and equipment 22,606
22,094
Accumulated depreciation and amortization (7,921 ) (7,721 )
14,685
14,373
Other Assets
Regulatory assets 3,108
3,113
Intangible assets 33
31
Prepaid postretirement costs — affiliates 114
114
Other 124
125
3,379
3,383
Total Assets $ 21,012
$ 20,489

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE ~~Electric~~Energy Company

Consolidated Statements of Financial Position (Unaudited) ~~— (Continued)~~

September 30, December 31,
2017 2016
(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates $ 52
$ 58
Other 371
452
Accrued interest 70
65
Current portion long-term debt, including capital leases 5
6
Regulatory liabilities 70
27
Short-term borrowings
Affiliates 66
117
Other 311
62
Other 146
146
1,091
933
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other 6,016
5,878
Capital lease obligations 1
7
6,017
5,885
Other Liabilities
Deferred income taxes 3,985
3,793
Regulatory liabilities 189
229
Asset retirement obligations 2,094
2,012
Unamortized investment tax credit 136
90
Nuclear decommissioning 213
194
Accrued pension liability — affiliates 826
1,008
Accrued postretirement liability — affiliates 252
269
Other 75
81
7,770
7,676
Commitments and Contingencies (Notes 5 and 11)

Shareholder’s Equity
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding 4,206
4,206
Retained earnings 1,926
1,787
Accumulated other comprehensive income 2
2
Total Shareholder’s Equity 6,134
5,995
Total Liabilities and Shareholder’s Equity $ 21,012
$ 20,489


	September 30,		December 31,
	2023		2022
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	36	$	33
Restricted cash	30		10
Accounts receivable (less allowance for doubtful accounts of $76 and $79, respectively)
Customer	1,393		2,038
Other	173		144
Inventories
Fuel and gas	463		433
Materials, supplies, and other	647		509
Derivative assets	228		328
Regulatory assets	135		450
Prepaid property tax	180		76
Other	135		159

	3,420		4,180
Investments
Nuclear decommissioning trust funds	1,913		1,825
Investments in equity method investees	180		165
Other	157		165
	2,250		2,155
Property
Property, plant, and equipment	36,397		39,346
Accumulated depreciation and amortization	(8,869)		(10,579)
	27,528		28,767
Other Assets
Goodwill	1,993		1,993
Regulatory assets	6,715		3,886
Securitized regulatory assets	178		206
Intangible assets	159		166
Notes receivable	400		331
Derivative assets	81		105
Prepaid postretirement costs	616		571
Operating lease right-of-use assets	137		89
Other	253		234

	10,532		7,581
Total Assets	$	43,730	$	42,683

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Electric Company~~

~~Consolidated Statements of Cash Flows (Unaudited)~~

Nine Months Ended September 30,
2017 2016
(In millions)
Operating Activities
Net Income $ 463
$ 547
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization 549
539
Nuclear fuel amortization 39
44
Allowance for equity funds used during construction (14 ) (13 )
Deferred income taxes 248
298
Changes in assets and liabilities:
Accounts receivable, net (104 ) (135 )
Inventories 32
18
Accounts payable 32
59
Accrued pension liability — affiliates (182 ) 9
Accrued postretirement liability — affiliates (17 ) (52 )
Regulatory assets and liabilities 223
100
Other current and noncurrent assets and liabilities (174 ) (119 )
Net cash from operating activities 1,095
1,295
Investing Activities
Plant and equipment expenditures (1,103 ) (999 )
Notes receivable, including affiliates 5
(64 )
Proceeds from sale of nuclear decommissioning trust fund assets 951
1,135
Investment in nuclear decommissioning trust funds (936 ) (1,140 )
Other (5 ) 40
Net cash used for investing activities (1,088 ) (1,028 )
Financing Activities
Issuance of long-term debt, net of issuance costs 435
355
Redemption of long-term debt (300 ) (10 )
Repurchase of long-term debt —
(59 )
Short-term borrowings, net — affiliate (51 ) 37
Short-term borrowings, net — other 249
(272 )
Dividends on common stock (324 ) (315 )
Other (17 ) (2 )
Net cash used for financing activities (8 ) (266 )
Net Increase (Decrease) in Cash and Cash Equivalents (1 ) 1
Cash and Cash Equivalents at Beginning of Period 13
15
Cash and Cash Equivalents at End of Period $ 12
$ 16

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable $ 112
$ 118

~~See Combined Notes to Consolidated Financial Statements (Unaudited)~~

~~DTE Electric Company~~

~~Consolidated Statements of Changes in Shareholder's Equity (Unaudited)~~

Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income
Common Stock
Shares Amount Total
(Dollars in millions, shares in thousands)
Balance, December 31, 2016 138,632
$ 1,386
$ 2,820
$ 1,787
$ 2
$ 5,995
Net Income —
—
—
463
—
463
Dividends declared on common stock —
—
—
(324 ) —
(324 )
Balance, September 30, 2017 138,632
$ 1,386
$ 2,820
$ 1,926
$ 2
$ 6,134

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)


	September 30,		December 31,
	2023		2022
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,135	$	1,604
Accrued interest	213		154
Dividends payable	196		196
Short-term borrowings	1,217		1,162

Current portion long-term debt, including securitization bonds and finance leases	594		1,124
Derivative liabilities	145		342

Regulatory liabilities	52		34
Operating lease liabilities	18		13

Other	475		544

	4,045		5,173
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	17,497		15,807
Securitization bonds	153		172
Junior subordinated debentures	883		883
Finance lease liabilities	9		11
	18,542		16,873
Other Liabilities
Deferred income taxes	2,575		2,394
Regulatory liabilities	2,597		2,673
Asset retirement obligations	3,589		3,460
Unamortized investment tax credit	180		182
Derivative liabilities	154		315
Accrued pension liability	319		378
Accrued postretirement liability	288		287
Nuclear decommissioning	299		282
Operating lease liabilities	112		68
Other	176		197

	10,289		10,236
Commitments and Contingencies (Notes 5 and 12)

Equity
Common stock (No par value, 400,000,000 shares authorized, and 206,258,727 and 205,632,393 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively)	6,697		6,651
Retained earnings	4,197		3,808
Accumulated other comprehensive loss	(44)		(62)
Total DTE Energy Company Equity	10,850		10,397
Noncontrolling interests	4		4

Total Equity	10,854		10,401
Total Liabilities and Equity	$	43,730	$	42,683

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)


	Nine Months Ended September 30,
	2023		2022
	(In millions)
Operating Activities
Net Income	$	978	$	818
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	1,185		1,093
Nuclear fuel amortization	43		26
Allowance for equity funds used during construction	(26)		(20)
Deferred income taxes	119		15
Equity (earnings) losses of equity method investees	(7)		15
Dividends from equity method investees	3		4

Asset (gains) losses and impairments, net	(11)		(4)
Changes in assets and liabilities:
Accounts receivable, net	614		(150)
Inventories	(170)		(204)
Prepaid postretirement benefit costs	(45)		(60)
Accounts payable	(438)		228

Accrued pension liability	(59)		(71)
Accrued postretirement liability	1		(8)
Derivative assets and liabilities	(234)		77
Regulatory assets and liabilities	509		(552)
Other current and noncurrent assets and liabilities	(87)		205
Net cash from operating activities	2,375		1,412
Investing Activities
Plant and equipment expenditures — utility	(2,772)		(2,342)
Plant and equipment expenditures — non-utility	(41)		(55)


Proceeds from sale of nuclear decommissioning trust fund assets	527		707
Investment in nuclear decommissioning trust funds	(524)		(710)
Distributions from equity method investees	16		11
Contributions to equity method investees	(27)		(12)
Notes receivable	(56)		(13)
Other	(64)		(39)
Net cash used for investing activities	(2,941)		(2,453)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	2,278		1,771
Redemption of long-term debt	(1,146)		(316)


Short-term borrowings, net	55		236

Repurchase of common stock	—		(55)
Dividends paid on common stock	(564)		(514)






Other	(34)		(65)
Net cash from financing activities	589		1,057
Net Increase in Cash, Cash Equivalents, and Restricted Cash	23		16
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	43		35
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	66	$	51

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	401	$	331

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company

Consolidated Statements of Changes in Equity (Unaudited)


				Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests
	Common Stock
	Shares	Amount								Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2022	205,632	$	6,651	$	3,808	$	(62)	$	4	$	10,401
Net Income	—	—		445		—		—		445
Dividends declared on common stock ($0.95 per Common Share)	—	—		(196)		—		—		(196)
Issuance of common stock	76	9		—		—		—		9


Other comprehensive loss, net of tax	—	—		—		(3)		—		(3)
Stock-based compensation and other	401	(8)		(2)		—		—		(10)
Balance, March 31, 2023	206,109	$	6,652	$	4,055	$	(65)	$	4	$	10,646
Net Income	—	—		201		—		—		201
Dividends declared on common stock ($1.91 per Common Share)	—	—		(393)		—		—		(393)
Issuance of common stock	76	8		—		—		—		8


Other comprehensive income, net of tax	—	—		—		8		—		8
Stock-based compensation and other	(9)	16		(1)		—		—		15
Balance, June 30, 2023	206,176	$	6,676	$	3,862	$	(57)	$	4	$	10,485
Net Income	—	—		332		—		—		332

Issuance of common stock	75	9		—		—		—		9


Other comprehensive income, net of tax	—	—		—		13		—		13

Stock-based compensation and other	8	12		3		—		—		15
Balance, September 30, 2023	206,259	$	6,697	$	4,197	$	(44)	$	4	$	10,854


				Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests
	Common Stock
	Shares	Amount								Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2021	193,748	$	5,379	$	3,438	$	(112)	$	8	$	8,713

Net Income	—	—		394		—		—		394
Dividends declared on common stock ($0.89 per Common Share)	—	—		(171)		—		—		(171)

Repurchase of common stock	(465)	(55)		—		—		—		(55)

Other comprehensive income, net of tax	—	—		—		3		—		3
Stock-based compensation, net distributions to noncontrolling interests, and other	456	(14)		1		—		(4)		(17)
Balance, March 31, 2022	193,739	$	5,310	$	3,662	$	(109)	$	4	$	8,867

Net Income	—	—		37		—		—		37
Dividends declared on common stock ($1.77 per Common Share)	—	—		(343)		—		—		(343)



Other comprehensive income, net of tax	—	—		—		5		—		5

Stock-based compensation, net distributions to noncontrolling interests, and other	(3)	13		(1)		—		1		13
Balance, June 30, 2022	193,736	$	5,323	$	3,355	$	(104)	$	5	$	8,579

Net Income	—	—		387		—		—		387




Other comprehensive income, net of tax	—	—		—		6		—		6
Stock-based compensation, net contributions from noncontrolling interests, and other	6	14		(1)		—		1		14

Balance, September 30, 2022	193,742	$	5,337	$	3,741	$	(98)	$	6	$	8,986

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Operations (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Operating Revenues — Utility operations	$	1,623	$	1,844	$	4,324	$	4,896

Operating Expenses
Fuel and purchased power — utility	440		595		1,120		1,551
Operation and maintenance	371		403		1,099		1,167
Depreciation and amortization	334		304		979		899
Taxes other than income	87		85		255		257

	1,232		1,387		3,453		3,874
Operating Income	391		457		871		1,022

Other (Income) and Deductions
Interest expense	114		93		319		271
Interest income	(3)		—		(14)		—
Non-operating retirement benefits, net	(1)		(1)		(3)		(2)
Other income	(16)		(15)		(56)		(46)
Other expenses	9		11		22		37
	103		88		268		260
Income Before Income Taxes	288		369		603		762

Income Tax Expense	19		6		55		12

Net Income	$	269	$	363	$	548	$	750

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net Income	$	269	$	363	$	548	$	750


Other comprehensive income	—		—		—		—
Comprehensive Income	$	269	$	363	$	548	$	750

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited)


	September 30,		December 31,
	2023		2022
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	13	$	15
Restricted Cash	24		9
Accounts receivable (less allowance for doubtful accounts of $46 and $49, respectively)
Customer	794		727
Affiliates	9		8
Other	67		75
Inventories
Fuel	199		167
Materials and supplies	388		331



Regulatory assets	132		421
Prepaid property tax	133		54
Other	31		44
	1,790		1,851
Investments
Nuclear decommissioning trust funds	1,913		1,825
Other	49		44
	1,962		1,869
Property
Property, plant, and equipment	27,268		30,591
Accumulated depreciation and amortization	(6,376)		(8,095)
	20,892		22,496
Other Assets
Regulatory assets	6,102		3,219
Securitized regulatory assets	178		206


Prepaid postretirement costs — affiliates	371		345
Operating lease right-of-use assets	105		56
Other	218		194
	6,974		4,020
Total Assets	$	31,618	$	30,236

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)


	September 30,		December 31,
	2023		2022
	(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates	$	44	$	71
Other	591		637
Accrued interest	120		105

Current portion long-term debt, including securitization bonds and finance leases	542		248
Regulatory liabilities	49		33
Short-term borrowings
Affiliates	—		27
Other	656		568
Operating lease liabilities	15		9
Other	165		204
	2,182		1,902
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	10,172		9,282
Securitization bonds	153		172
Finance lease liabilities	—		1
	10,325		9,455
Other Liabilities
Deferred income taxes	3,056		2,946
Regulatory liabilities	1,729		1,778
Asset retirement obligations	3,356		3,221
Unamortized investment tax credit	180		182
Nuclear decommissioning	299		282
Accrued pension liability — affiliates	348		387
Accrued postretirement liability — affiliates	277		275
Operating lease liabilities	85		39
Other	69		74
	9,399		9,184
Commitments and Contingencies (Notes 5 and 12)

Shareholder’s Equity
Common stock ($10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding for both periods)	6,602		6,602
Retained earnings	3,110		3,093

Total Shareholder’s Equity	9,712		9,695
Total Liabilities and Shareholder’s Equity	$	31,618	$	30,236

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Cash Flows (Unaudited)


	Nine Months Ended September 30,
	2023		2022
	(In millions)
Operating Activities
Net Income	$	548	$	750
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	979		899
Nuclear fuel amortization	43		26
Allowance for equity funds used during construction	(25)		(18)
Deferred income taxes	59		11

Changes in assets and liabilities:
Accounts receivable, net	(57)		(77)
Inventories	(89)		(26)
Accounts payable	(33)		17
Prepaid postretirement benefit costs — affiliates	(26)		(37)
Accrued pension liability — affiliates	(39)		(40)
Accrued postretirement liability — affiliates	2		(6)
Regulatory assets and liabilities	402		(563)
Other current and noncurrent assets and liabilities	(183)		166
Net cash from operating activities	1,581		1,102
Investing Activities
Plant and equipment expenditures	(2,215)		(1,853)



Proceeds from sale of nuclear decommissioning trust fund assets	527		707
Investment in nuclear decommissioning trust funds	(524)		(710)

Notes receivable and other	(30)		(38)
Net cash used for investing activities	(2,242)		(1,894)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	1,284		1,118
Redemption of long-term debt	(121)		(316)

Capital contribution by parent company	—		296
Short-term borrowings, net — affiliates	(27)		25
Short-term borrowings, net — other	88		306
Dividends paid on common stock	(531)		(600)
Other	(19)		(15)
Net cash from financing activities	674		814
Net Increase in Cash, Cash Equivalents, and Restricted Cash	13		22
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	24		9
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	37	$	31

Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	295	$	242

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Electric Company

Consolidated Statements of Changes in Shareholder's Equity (Unaudited)


				Additional Paid-in Capital		Retained Earnings
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2022	138,632	$	1,386	$	5,216	$	3,093		$	9,695
Net Income	—	—		—		100			100
Dividends declared on common stock	—	—		—		(182)			(182)


Balance, March 31, 2023	138,632	$	1,386	$	5,216	$	3,011		$	9,613
Net Income	—	—		—		179			179
Dividends declared on common stock	—	—		—		(174)			(174)


Balance, June 30, 2023	138,632	$	1,386	$	5,216	$	3,016		$	9,618
Net Income	—	—		—		269			269
Dividends declared on common stock	—	—		—		(175)			(175)


Balance, September 30, 2023	138,632	$	1,386	$	5,216	$	3,110		$	9,712


				Additional Paid-in Capital		Retained Earnings
	Common Stock
	Shares	Amount						Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2021	138,632	$	1,386	$	4,616	$	2,901		$	8,903

Net Income	—	—		—		201			201
Dividends declared on common stock	—	—		—		(277)			(277)


Balance, March 31, 2022	138,632	$	1,386	$	4,616	$	2,825		$	8,827

Net Income	—	—		—		186			186
Dividends declared on common stock	—	—		—		(162)			(162)


Balance, June 30, 2022	138,632	$	1,386	$	4,616	$	2,849		$	8,851

Net Income	—	—		—		363			363
Dividends declared on common stock	—	—		—		(161)			(161)

Capital contribution by parent company	—	—		296		—			296
Balance, September 30, 2022	138,632	$	1,386	$	4,912	$	3,051		$	9,349

See Combined Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited)

Index of Combined Notes to Consolidated Financial Statements (Unaudited)

The Combined Notes to Consolidated Financial Statements (Unaudited) are a combined presentation for DTE Energy and DTE Electric. The following list indicates the Registrant(s) to which each note applies:

Note 1

Organization and Basis of Presentation

DTE Energy and DTE Electric

Note 2

Significant Accounting Policies

DTE Energy and DTE Electric

Note 3

New Accounting Pronouncements

DTE Energy and DTE Electric

Note 4

Revenue

DTE Energy and DTE Electric

Note 5

Regulatory Matters

DTE Energy and DTE Electric

Note 6

Earnings per Share

DTE Energy

Note 7

Fair Value

DTE Energy and DTE Electric

Note 8

Financial and Other Derivative Instruments

DTE Energy and DTE Electric

Note 9

Long-Term Debt

DTE Energy and DTE Electric

Note 10

Short-Term Credit Arrangements and Borrowings

DTE Energy and DTE Electric

Note 11

Leases

DTE Energy

Note 12

Commitments and Contingencies

DTE Energy and DTE Electric

Note 13

Retirement Benefits and Trusteed Assets

DTE Energy and DTE Electric

Note 14

Segment and Related Information

DTE Energy

~~Note 1~~

~~Organization and Basis of Presentation~~

~~DTE Energy and DTE Electric~~

~~Note 2~~

~~Significant Accounting Policies~~

~~DTE Energy and DTE Electric~~

~~Note 3~~

~~New Accounting Pronouncements~~

~~DTE Energy and DTE Electric~~

~~Note 4~~

~~Acquisition~~

~~DTE Energy~~

~~Note 5~~

~~Regulatory Matters~~

~~DTE Energy and DTE Electric~~

~~Note 6~~

~~Earnings per Share~~

~~DTE Energy~~

~~Note 7~~

~~Fair Value~~

~~DTE Energy and DTE Electric~~

~~Note 8~~

~~Financial and Other Derivative Instruments~~

~~DTE Energy and DTE Electric~~

~~Note 9~~

~~Long-Term Debt~~

~~DTE Energy and DTE Electric~~

~~Note 10~~

~~Short-Term Credit Arrangements and Borrowings~~

~~DTE Energy and DTE Electric~~

~~Note 11~~

~~Commitments and Contingencies~~

~~DTE Energy and DTE Electric~~

~~Note 12~~

~~Retirement Benefits and Trusteed Assets~~

~~DTE Energy and DTE Electric~~

~~Note 13~~

~~Segment and Related Information~~

~~DTE Energy~~

NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION

Corporate Structure

DTE Energy owns the following businesses:

•DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately ~~2.2~~2.3 million customers in southeastern ~~Michigan;~~Michigan

•DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million customers throughout Michigan and the sale of storage and transportation ~~capacity; and~~capacity

•Other businesses include (1) DTE Vantage, which is primarily involved in 1)renewable natural gas ~~pipelines, gathering,~~projects and ~~storage;~~providing custom energy solutions to industrial, commercial, and institutional customers, and 2) ~~power and industrial projects; and 3)~~ energy marketing and trading ~~operations.~~operations

DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businesses under DTE Energy, are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, the EPA, ~~the MDEQ,~~EGLE, and for DTE Energy, the ~~CFTC.~~CFTC and CARB.

Basis of Presentation

The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric ~~2016~~2022 Annual Report on Form 10-K.

The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.

The Consolidated Financial Statements are unaudited but, in the Registrants' opinions, include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, ~~2017.~~2023.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

Certain prior year balances for the Registrants were reclassified to match the current year's Consolidated Financial Statements presentation.

Principles of Consolidation

The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the equity investment is valued at cost ~~method is used.~~minus any impairments, if applicable. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.

The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.

Legal entities within the DTE ~~Energy's Power and Industrial Projects~~Vantage segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are generally accounted for ~~under the equity method.~~

DTE Energy owns a 55% interest in SGG, which owns and operates midstream natural gas assets. SGG has contracts through which certain construction risk is designed to pass-through to the customers, with DTE Energy retaining operational and customer default risk. SGG is a VIE with DTE Energy as the primary beneficiary. See Note 4 to the Consolidated Financial Statements, "Acquisition," for more information.

The Registrants hold variable interests in NEXUS, including a 50% ownership interest. NEXUS is a joint venture which is in the process of constructing a 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio, Michigan, and Ontario market centers. NEXUS is a VIE as it has insufficient equity at risk to finance its activities. The Registrants are not the primary beneficiaries, as the power to direct significant activities is shared between the owners of the equity interests. DTE Energy accounts for NEXUS under the equity method.

The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, ~~as well as,~~and an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.

DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of September 30, ~~2017,~~2023, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of September 30, ~~2017,~~2023, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no ~~significant~~material potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no ~~significant~~material potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

During 2022, DTE Electric financed regulatory assets for previously deferred costs related to the River Rouge generation plant and tree trimming surge program through the sale of bonds by a wholly-owned special purpose entity, DTE Securitization. DTE Securitization is a VIE. DTE Electric has the power to direct the most significant activities of DTE Securitization, including performing servicing activities such as billing and collecting surcharge revenue. Accordingly, DTE Electric is the primary beneficiary and DTE Securitization is consolidated by the Registrants. Securitization bond holders have no recourse to the Registrants' assets, except for those held by DTE Securitization. Surcharges collected by DTE Electric to pay for bond servicing and other qualified costs reflect securitization property solely owned by DTE Securitization. These surcharges are remitted to a trustee and are not available to other creditors of the Registrants.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial ~~Position and in Note 11 to the Consolidated Financial Statements, "Commitments and Contingencies," related to the REF guarantees and indemnities.~~Position. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment, notes receivable, and future funding commitments, and amounts which DTE Energy has guaranteed. See Note 11 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of the NEXUS guarantee arrangements.commitments.

The ~~following~~ table below summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of September 30, ~~2017~~2023 and December 31, ~~2016.~~2022. All assets and liabilities of a consolidated VIE are presented where it has been determined that aconsolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. Assets and liabilities of the VIEs are presented in aggregate due to the similar nature of the entities, except for DTE Electric amounts that reflect DTE Securitization and are separately stated. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table below.

September 30, 2017 December 31, 2016

SGG^(a)
Other Total
SGG^(a)
Other Total
(In millions)
ASSETS
Cash and cash equivalents $ 31
$ 13
$ 44
$ 36
$ 27
$ 63
Restricted cash —
8
8
—
7
7
Accounts receivable 11
30
41
8
34
42
Inventories 3
84
87
3
112
115
Property, plant, and equipment, net 397
70
467
398
76
474
Goodwill 25
—
25
17
—
17
Intangible assets 576
—
576
586
—
586
Other current and long-term assets 1
—
1
1
1
2
$ 1,044
$ 205
$ 1,249
$ 1,049
$ 257
$ 1,306

LIABILITIES
Accounts payable and accrued current liabilities $ 26
$ 29
$ 55
$ 19
$ 32
$ 51
Current portion long-term debt, including capital leases —
3
3
—
5
5
Mortgage bonds, notes, and other —
2
2
—
5
5
Other current and long-term liabilities 1
15
16
2
15
17
$ 27
$ 49
$ 76
$ 21
$ 57
$ 78

~~(a)Amounts shown are 100%~~During the third quarter 2023, a consolidated VIE of ~~SGG's~~DTE Vantage entered into a contract that restricts certain assets of the VIE to be used only to settle the VIE's obligations. As a result, the assets and liabilities of the VIE, which primarily include receivables and payables recognized in 2023, no longer meet the exclusion criteria above. Accordingly, these assets and liabilities have been added to the DTE Energy ~~owns 55%.~~amounts in the table below.

Amounts for the Registrants' consolidated VIEs are as follows:


	September 30, 2023				December 31, 2022
	DTE Energy		DTE Electric(a)		DTE Energy		DTE Electric(a)
	(In millions)
ASSETS
Cash and cash equivalents	$	11	$	—	$	14	$	—
Restricted cash	28		23		9		9
Accounts receivable	115		2		6		3



Securitized regulatory assets	178		178		206		206

Notes receivable	153		—		81		—
Other current and long-term assets	2		—		8		—
	$	487	$	203	$	324	$	218

LIABILITIES
Accounts payable	$	57	$	—	$	3	$	—
Short-term borrowings	—		—		81		—


Securitization bonds(b)	193		193		211		211

Other current and long-term liabilities	18		10		11		9
	$	268	$	203	$	306	$	220

(a)DTE Electric amounts reflect DTE Securitization.

(b)Includes $40 million and $39 million reported in Current portion of long-term debt on the Registrants' Consolidated Statements of Financial Position for the periods ended September 30, 2023 and December 31, 2022, respectively.

Amounts for DTE Energy's non-consolidated VIEs are as follows:


	September 30, 2023		December 31, 2022
	(In millions)
Investments in equity method investees	$	125	$	137
Notes receivable	$	15	$	15
Future funding commitments	$	1	$	2

September 30, 2017 December 31, 2016
(In millions)
Investments in equity method investees $ 716
$ 509
Notes receivable $ 17
$ 15
Future funding commitments $ 688
$ 692

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

Other Income

The following is a summary of DTE Energy's Other income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Allowance for equity funds used during construction	$	8	$	6	$	26	$	20
Contract services	5		7		18		21


Investment income(a)	—		—		9		—
Equity earnings (losses) of equity method investees	3		—		7		(15)
Other	(3)		3		10		9
	$	13	$	16	$	70	$	35

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Equity earnings of equity method investees $ 26
$ 14
$ 77
$ 49
Income from REF entities 20
20
60
59
Gains from trading securities 6
5
19
15
Allowance for equity funds used during construction 5
5
17
15
Contract services 9
5
17
16
Other 8
2
14
6
$ 74
$ 51
$ 204
$ 160
(a)Investment losses are recorded separately to Other expenses on the Consolidated Statements of Operations.

The following is a summary of DTE Electric's Other income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Allowance for equity funds used during construction	$	8	$	6	$	25	$	18
Contract services	6		7		18		21
Investment income(a)	—		—		6		—

Other	2		2		7		7
	$	16	$	15	$	56	$	46

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Gains from trading securities allocated from DTE Energy $ 6
$ 5
$ 19
$ 15
Contract services 9
5
18
16
Allowance for equity funds used during construction 4
4
14
13
Equity earnings of equity method investees —
—
1
1
Other 2
1
5
3
$ 21
$ 15
$ 57
$ 48
(a)Investment losses are recorded separately to Other expenses on the Consolidated Statements of Operations.

Changes in Accumulated Other Comprehensive Income (Loss)

~~For~~Comprehensive income (loss) is the ~~three~~change in common shareholders' equity during a period from transactions and ~~nine months ended September 30, 2017 and 2016, reclassifications out of~~events from non-owner sources, including Net Income. The amounts recorded to Accumulated other comprehensive income (loss) for DTE Energy include changes in benefit obligations, consisting of deferred actuarial losses and prior service costs, unrealized gains and losses from derivatives accounted for as cash flow hedges, and foreign currency translation adjustments, if any. DTE Energy releases income tax effects from accumulated other comprehensive income when the ~~Registrants were not material.~~ circumstances upon which they are premised cease to exist.

Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's ~~Equity.~~Equity, if any. For the three and nine months ended September 30, 2023 and 2022, reclassifications out of Accumulated other comprehensive income (loss) were not material.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Income Taxes

~~The effective tax rate of the Registrants~~Tax rates are ~~as follows:~~

Effective Tax Rate
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
DTE Energy 22 % 25 % 22 % 25 %
DTE Electric 35 % 35 % 35 % 36 %

~~The 3% decrease in DTE Energy's effective tax rate for the three months ended September 30, 2017 was primarily due to higher forecasted~~affected by estimated annual permanent items, production and investment tax credits, regulatory adjustments, and discrete items that may occur in ~~2017.~~any given period, but are not consistent from period to period. The ~~3% decrease in DTE Energy's~~tables below summarize how the Registrants' effective income tax ~~rate for~~rates have varied from the ~~nine months ended September 30, 2017 was primarily due to higher forecasted production~~statutory federal income tax ~~credits in 2017 and $13 million of excess tax benefits on stock-based compensation recognized in accordance with ASU 2016-09,~~ ~~Improvements to Employee Share-Based Payment Accounting, which was adopted effective July 1, 2016.~~rate:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
DTE Energy
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) due to:
State and local income taxes, net of federal benefit	4.8		4.4		4.5		4.5
Production tax credits	(7.8)		(9.1)		(6.4)		(9.4)
TCJA amortization	(4.9)		(13.6)		(4.2)		(14.8)
Investment tax credits	(3.8)		—		(2.6)		(0.1)
Enactment of West Virginia income tax legislation, net of federal benefit	—		—		(0.6)		—
Other	(3.0)		(1.2)		(1.9)		(1.2)
Effective income tax rate	6.3	%	1.5	%	9.8	%	—	%

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

DTE Energy's total amount of unrecognized tax benefits as of September 30, 2017 and December 31, 2016 was $10 million. The amount, if recognized, that would favorably impact DTE Energy's effective tax rate as of September 30, 2017 and December 31, 2016 was $6 million and $7 million, respectively. DTE Electric's total amount of unrecognized tax benefits as of September 30, 2017 and December 31, 2016 was $13 million, of which $8 million, if recognized, would favorably impact its effective tax rate. The Registrants do not anticipate any material changes to the unrecognized tax benefits in the next twelve months.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
DTE Electric
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) due to:
State and local income taxes, net of federal benefit	5.7		5.7		5.7		5.7
Production tax credits	(11.1)		(9.5)		(9.4)		(9.2)
TCJA amortization	(6.9)		(14.6)		(5.9)		(15.0)
Other	(1.9)		(0.9)		(2.2)		(0.9)
Effective income tax rate	6.8	%	1.7	%	9.2	%	1.6	%

DTE Electric had income tax receivables with DTE Energy of $9$7 million at September 30, ~~2017~~2023, primarily related to federal taxes, and $1 million at December 31, ~~2016.~~2022, primarily related to state taxes, which are included in Accounts Receivable — Affiliates on the DTE Electric Consolidated Statements of Financial Position.

During the second quarter 2023, DTE Energy and DTE Electric unrecognized tax benefits decreased by $10 million and $13 million, respectively, as a result of an audit settlement related to state exposures. Recognition of these state tax benefits, net of federal benefit, resulted in a reduction of $8 million and $10 million to Income Tax Expense on the respective DTE Energy and DTE Electric Consolidated Statements of Operations for the nine months ended September 30, 2023.

During the third quarter 2023, DTE Energy unrecognized tax benefits decreased by an additional $5 million due to recognition of a federal tax claim. Recognition of this federal tax benefit resulted in a $5 million reduction to Income Tax Expense on the DTE Energy Consolidated Statements of Operations for the three and nine months ended September 30, 2023. As of September 30, 2023, DTE Energy and DTE Electric have no remaining unrecognized tax benefits.

As of December 31, 2022, DTE Energy and DTE Electric had $5 million and $8 million of accrued interest pertaining to income taxes, respectively, included in Accrued Interest on the Consolidated Statements of Financial Position. As a result of the state tax audit settlement noted above, the Registrants have no remaining accrued interest pertaining to income taxes.

Unrecognized Compensation Costs

As of September 30, ~~2017,~~2023, DTE Energy had ~~$71~~$77 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of ~~1.35~~1.4 years.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of ~~$10~~$7 million and $7$9 million for the three months ended September 30, ~~2017~~2023 and ~~2016,~~2022, respectively, while such allocation was ~~$28~~$27 million and ~~$26~~$30 million for the nine months ended September 30, ~~2017~~2023 and ~~2016,~~2022, respectively.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash includes funds held in separate bank accounts and principally consists of amounts at DTE Securitization to pay for debt service and other qualified costs. Restricted cash designated for payments within one year is classified as a Current Asset.

~~NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS~~Financing Receivables

~~Recently Adopted Pronouncements~~

~~In July 2015, the FASB issued ASU No. 2015-11,~~ ~~Inventory (Topic 330), Simplifying the Measurement~~Financing receivables are primarily composed of ~~Inventory~~.trade receivables, notes receivable, and unbilled revenue. The ~~ASU replaces the current lower of cost or market test with a lower of cost or~~Registrants' financing receivables are stated at net realizable ~~value test when cost is determined~~value.

The Registrants monitor the credit quality of their financing receivables on a ~~first-in, first-out~~regular basis by reviewing credit quality indicators and monitoring for trigger events, such as a credit rating downgrade or ~~average cost basis. The standard is effective~~bankruptcy. Credit quality indicators include, but are not limited to, ratings by credit agencies where available, collection history, collateral, counterparty financial statements and other internal metrics. Utilizing such data, the Registrants have determined three internal grades of credit quality. Internal grade 1 includes financing receivables for ~~public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. It was applied prospectively. The~~counterparties where credit rating agencies have ranked the counterparty as investment grade. To the extent credit ratings are not available, the Registrants ~~adopted this ASU at January 1, 2017. The adoption of the ASU did not have a significant impact on the Registrants' Consolidated Financial Statements.~~

~~Recently Issued Pronouncements~~

~~In May 2014, the FASB issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers (Topic 606),~~ ~~as amended~~. ~~The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model~~utilize other credit quality indicators to determine the ~~measurement~~level of ~~revenue and timing of recognition. The core principle is that an entity will recognize revenue~~risk associated with the financing receivable. Internal grade 1 may include financing receivables for counterparties for which credit rating agencies have ranked the counterparty as below investment grade; however, due to ~~depict~~favorable information on other credit quality indicators, the ~~transfer of goods or services to customers at an amount that~~Registrants have determined the ~~entity expects~~risk level to be ~~entitled~~similar to that of an investment grade counterparty. Internal grade 2 includes financing receivables for counterparties with limited credit information and those with a higher risk profile based upon credit quality indicators. Internal grade 3 reflects financing receivables for which the counterparties have the greatest level of risk, including those in exchange for those goods or services. This ASU also requires expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. bankruptcy status.

The standard is to be applied retrospectively. The Registrants will adopt the standard effective January 1, 2018 using the modified retrospective approach. The Registrants are finalizing the assessment of the impact of the ASU, as amended, on their Consolidated Financial Statements. The ASU is not expected to significantly affectfollowing represents the Registrants' ~~results~~financing receivables by year of ~~operations.~~origination, classified by internal grade of credit risk, including current year-to-date gross write-offs, if any. The ~~Registrants will continue~~related credit quality indicators and risk ratings utilized to ~~evaluate~~develop the ~~impact of the ASU on existing revenue recognition policies~~internal grades have been updated through September 30, 2023.


	DTE Energy								DTE Electric
	Year of Origination
	2023		2022		2021 and Prior		Total		2023 and Prior
	(In millions)
Notes receivable
Internal grade 1	$	14	$	—	$	6	$	20	$	16
Internal grade 2	19		85		17		121		—

Total notes receivable(a)	$	33	$	85	$	23	$	141	$	16


Net investment in leases
Internal grade 1	$	—	$	—	$	37	$	37	$	—
Internal grade 2	—		65		185		250		—
Total net investment in leases(a)	$	—	$	65	$	222	$	287	$	—

(a)For DTE Energy and procedures. Industry-related issues being vetted through the final stages of the American Institute of Certified Public Accountants' Power and Utilities Industry Task Force process will continue to be monitored. The ASU will result in additional disclosures for revenue compared toDTE Electric, the current ~~guidance. Accordingly,~~portion is included in Current Assets — Other on the ~~Registrants are evaluating information that would be useful for users~~respective Consolidated Statements of Financial Position. For DTE Electric, the ~~Consolidated Financial Statements.~~

noncurrent portion is included in Other Assets — Other.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The allowance for doubtful accounts on accounts receivable for the utility entities is generally calculated using an aging approach that utilizes rates developed in reserve studies. DTE Electric and DTE Gas establish an allowance for uncollectible accounts based on historical losses and management's assessment of existing and future economic conditions, customer trends and other factors. Customer accounts are generally considered delinquent if the amount billed is not received by the due date, which is typically in 21 days, however, factors such as assistance programs may delay aggressive action. DTE Electric and DTE Gas generally assess late payment fees on trade receivables based on past-due terms with customers. Customer accounts are written off when collection efforts have been exhausted. The time period for write-off is 150 days after service has been terminated.

~~In February 2016,~~The customer allowance for doubtful accounts for non-utility businesses and other receivables for both utility and non-utility businesses is generally calculated based on specific review of probable future collections based on receivable balances generally in excess of 30 days. Existing and future economic conditions, customer trends and other factors are also considered. Receivables are written off on a specific identification basis and determined based upon the ~~FASB issued ASU No. 2016-02,~~ ~~Leases (Topic 842),~~ ~~a replacement of~~ ~~Leases (Topic 840)~~. This guidance requires a lessee to account for leases as finance or operating leases. Both types of leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will classify leases to determine how to recognize lease-related revenue and expense. This standard is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Registrants do not plan to early adopt the standard. A modified retrospective approach is required for leases existing or entered into after the beginningspecific circumstances of the earliest comparative period in the Consolidated Financial Statements, with certain practical expedients permitted. The Registrants expect an increase in assets and liabilities, however, they are currently assessing the impact of this ASU on their Consolidated Financial Statements. This assessment includes monitoring unresolved utility industry implementation guidance. The Registrants have conducted outreach activities across their lines of business and have begun implementation of a third-party software tool that will assist with the initial adoption and ongoing compliance.associated receivable.

~~In June 2016, the FASB issued ASU No. 2016-13,~~ ~~Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments~~. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entities will apply the new guidance as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effectiveNotes receivable for the Registrants beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

~~In March 2017, the FASB issued ASU No. 2017-07,~~ ~~Compensation~~ — ~~Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.~~ The amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The standard will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The ASU is effective for the Registrants for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Registrants will adopt the standard effective January 1, 2018. The components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits are disclosed in Note 12 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets." The ASU will not have a significant impact on the Registrants' Consolidated Financial Statements.

~~NOTE 4 — ACQUISITION~~

~~Gas Storage and Pipelines Acquisition~~

~~Effective October 1, 2016,~~ DTE Energy closed on the purchase of midstream natural gas assets in support of the strategy to continue to grow and earn competitive returns for shareholders. DTE Energy purchased 100% of AGS, located in Pennsylvania and West Virginia, and 40% of SGG, located in West Virginia, from M3 Midstream. In addition, DTE Energy purchased 15% of SGG from Vega Energy Partners, resulting in 55% total ownership of SGG by DTE Energy.

~~Consideration transferred for the entities acquired was approximately $1.2 billion paid in cash and the assumption of SGG debt of $204 million. The $204 million of debt was~~are primarily comprised of ~~DTE Energy's 55% interest in SGG of $112 million~~finance lease receivables and 45% related to noncontrolling interest partners of $92 million. The acquisition was financed through the issuance of equity units and senior notes. These entities are part of DTE Energy's Gas Storage and Pipelines segment which owns and manages a network of natural gas gathering, transmission, and storage facilities servicing the Midwest, Ontario, and Northeast markets. SGG has been deemed to be a VIE, and DTE Energy is the primary beneficiary. Thus, SGG's assets and liabilitiesloans that are included in Notes Receivable and Other current assets on DTE Energy's Consolidated Statements of Financial Position. ~~See Note 1~~Notes receivable for DTE Electric are primarily comprised of loans.

The Registrants establish an allowance for credit loss for principal and interest amounts due that are estimated to be uncollectible in accordance with the contractual terms of the note receivable. In determining the allowance for credit losses for notes receivable, the Registrants consider the historical payment experience and other factors that are expected to have a specific impact on the counterparty's ability to pay including existing and future economic conditions. Notes receivable are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. If amounts are no longer probable of collection, the Registrants may consider the note receivable impaired, adjust the allowance, and cease accruing interest (nonaccrual status).

Cash payments received on nonaccrual status notes receivable, that do not bring the account contractually current, are first applied to the ~~Consolidated Financial Statements, "Organization and Basis~~contractually owed past due interest, with any remainder applied to principal. Accrual of ~~Presentation,"~~interest is generally resumed when the note receivable becomes contractually current.

The following tables present a roll-forward of the activity for ~~more information.~~the Registrants' financing receivables credit loss reserves:


	DTE Energy				DTE Electric
	Trade accounts receivable		Other receivables			Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2023	$	78	$	1		$	79	$	49
Current period provision	44		—			44		28

Write-offs charged against allowance	(78)		—			(78)		(51)
Recoveries of amounts previously written off	31		—			31		20
Ending reserve balance, September 30, 2023	$	75	$	1		$	76	$	46


	DTE Energy				DTE Electric
	Trade accounts receivable		Other receivables			Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2022	$	89	$	3		$	92	$	54
Current period provision	49		—			49		33

Write-offs charged against allowance	(105)		(2)			(107)		(66)
Recoveries of amounts previously written off	45		—			45		28
Ending reserve balance, December 31, 2022	$	78	$	1		$	79	$	49

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

~~DTE Energy applied purchase accounting to~~Uncollectible expense for the ~~acquired entities. The excess purchase price over the fair value of net assets acquired was classified as goodwill. September 30, 2017 marked the expiration~~Registrants is primarily comprised of the ~~one-year~~current period ~~from~~provision for allowance for doubtful accounts and is summarized as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
DTE Energy	$	10	$	12	$	45	$	46
DTE Electric	$	11	$	12	$	28	$	28

There are no material amounts of past due financing receivables for the ~~acquisition to revise the fair value of assets acquired and liabilities assumed. As~~Registrants as of September 30, ~~2017,~~2023.

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Pronouncements

In March 2022, the ~~final working capital adjustments~~FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and ~~certain indemnification claims were settled.~~ Vintage Disclosures. The ~~settlements~~amendments in this update eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Loss (“CECL”) model under ASC 326 and ~~final revisions~~enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. Additionally, the amendments require the disclosure of current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Registrants adopted the ASU effective January 1, 2023 using the prospective approach, with no impact on the Registrants' financial position or results of operations. Gross write-offs, if any, will be disclosed in the Financing Receivables section of Note 2 to the purchase price allocation resulted in purchase accounting adjustments of approximately $7 million of additional goodwill. The factors contributing to the recognition of goodwill were based on various strategic benefits that are expected to be realized from the AGS and SGG acquisition. The acquisition provides DTE Energy with a platform for midstream growth and access to further investment opportunities in the Appalachian basin, an additional connection to the NEXUS Pipeline which should drive incremental volumes on the NEXUS Pipeline, and a new set of producer relationships that may lead to more partnering opportunities. The goodwill is expected to be deductible for income tax purposes.Consolidated Financial Statements, "Significant Accounting Policies."

The final allocation of the purchase price was based on estimated fair values of the AGS and SGG assets acquired and liabilities assumed at the date of acquisition, October 1, 2016. The components of the final purchase price allocation, inclusive of purchase accounting adjustments, are as follows:

(In millions)
Assets
Cash $ 83
Accounts receivable 24
Inventory 6
Property, plant, and equipment, net 719
Goodwill 275
Customer relationship intangibles 770
Other current assets 1
$ 1,878
Liabilities
Accounts payable $ 19
Other current liabilities 11
Long-term debt 204
Other long-term liabilities 20
$ 254
Less: Noncontrolling interest 392
Total cash consideration $ 1,232

The intangible assets recorded as a result of the acquisition pertain to existing customer relationships, which were valued at approximately $770 million as of the acquisition date. The fair value of the intangible assets acquired was estimated by applying the income approach. The income approach was based upon discounted projected future cash flows attributable to the existing contracts and agreements. The fair value measurement was based on significant unobservable inputs, including management estimates and assumptions, and thus represents a Level 3 measurement, pursuant to the applicable accounting guidance. Key estimates and inputs included revenue and expense projections and discount rates based on the risks associated with the entities. The intangible assets are amortized on a straight-line basis over a period of 40 years, which is based on the number of years the assets are expected to economically contribute to the business. The expected economic benefit incorporates existing customer contracts with a weighted-average amortization life of 10 years and expected renewal rates, based on the estimated volume and production lives of gas resources in the region.

~~The fair value of the noncontrolling interest in the table above was derived based on the purchase price DTE Energy paid for the 55% interest in SGG.~~

DTE Energy evaluated pre-acquisition contingencies relating to the purchase that existed as of the acquisition date. Based on the evaluation, DTE Energy determined that $30 million of certain pre-acquisition contingencies, related to repairing existing rights-of-way, were probable in nature and estimable as of the acquisition date. Accordingly, DTE Energy recorded its best estimates for these contingencies as part of purchase accounting, which are included in the Other current and long-term liabilities in the purchase price allocation table above.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 4 — REVENUE

Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment for DTE ~~Energy incurred $15~~Energy:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Electric(a)
Residential	$	861	$	882	$	2,173	$	2,273
Commercial	585		541		1,604		1,505
Industrial	190		167		545		498
Other(b)	(10)		257		12		631
Total Electric operating revenues	$	1,626	$	1,847	$	4,334	$	4,907

Gas
Gas sales	$	119	$	128	$	936	$	955
End User Transportation	44		42		184		195
Intermediate Transportation	16		15		63		60
Other(b)	48		45		62		148
Total Gas operating revenues	$	227	$	230	$	1,245	$	1,358

Other segment operating revenues
DTE Vantage	$	199	$	227	$	572	$	626
Energy Trading	$	893	$	3,024	$	3,365	$	8,059

(a)Revenues generally represent those of DTE Electric, except $3 million of ~~direct transaction costs~~Other revenues related to DTE Sustainable Generation for both the three months ended September 30, 2023 and 2022, and $10 million and $11 million for the ~~year~~nine months ended ~~December 31, 2016. These costs were primarily~~September 30, 2023 and 2022, respectively.

(b)Includes revenue adjustments related to ~~advisory fees~~various regulatory mechanisms, including the PSCR at the Electric segment and ~~included in Operation and maintenance in DTE Energy's 2016 Consolidated Statements of Operations.~~

~~DTE Energy's 2016 Consolidated Statements of Operations included Operating~~GCR at the Gas segment. Revenues — Non-utility operations of $39 million and Net Income of $4 million associated with the acquired entities for the three-month period following the acquisition date, excluding the $15 million transaction costs described above. The pro forma financial information was not presented for DTE Energy because the effects of the acquisition were not materialrelated to ~~the Consolidated Statements of Operations.~~

~~NOTE 5 — REGULATORY MATTERS~~

~~2016 Electric Rate Case Filing~~

~~DTE Electric filed a rate case with the MPSC on February 1, 2016 requesting an increase in base rates of $344 million~~these mechanisms may vary based on a projected twelve-month period ending July 31, 2017. On August 1, 2016, DTE Electric self-implemented a base rate increase of $245 million. On January 31, 2017, the MPSC issued an order approving an annual revenue increase of $184 million for service rendered on or after February 7, 2017. The MPSC authorized a return on equity of 10.1%. On April 28, 2017, DTE Electric filed to refund its customers their pro-rata share of the revenue collected through the self-implementation surcharge in effect from August 1, 2016 through February 7, 2017. On September 15, 2017, the MPSC approved a settlement authorizing DTE Electric to refund its customers $38.5 million of the self-implementation surcharge during the months of October through December 2017. DTE has recorded a refund liability for the settlement as of September 30, 2017.

~~2017 Electric Rate Case Filing~~

DTE Electric filed a rate case with the MPSC on April 19, 2017 requesting an increase in base rates of $231 million based on a projected twelve-month period ending October 31, 2018. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructure investments, environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in ~~sales, operation~~the cost of fuel, purchased power, and ~~maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. To mitigate the impact to its customers resulting from ASU No. 2017-07,~~ ~~Compensation~~ — ~~Retirement Benefits (Topic 715),~~ DTE Electric suggested regulatory accounting treatment for the pension and postretirement cost components previously included as capital overhead. If the MPSC adopts DTE Electric's suggestion, the rate request will be reduced. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." On September 8, 2017, DTE Electric filed an application with the MPSC for a $125 million self-implemented base rate increase effective November 1, 2017. A final MPSC order in this case is expected by April 2018.gas.

~~PSCR Proceedings~~

The PSCR process is designed to allow DTE Electric to recover all of its power supply costs if incurred under reasonable and prudent policies and practices. DTE Electric's power supply costs include fuel and related transportation costs, purchased and net interchange power costs, NOx and SO₂ ~~emission allowances costs, urea costs, transmission costs, MISO, and other related costs. The MPSC reviews these costs, policies, and practices for prudence in annual plan and reconciliation filings.~~

~~2015 PSCR Year~~ ~~— In March 2016, DTE Electric filed its 2015 PSCR reconciliation that~~Revenues included the ~~recovery~~following which were outside the scope of ~~approximately $13 million~~Topic 606:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)

Electric — Other revenues	$	8	$	7	$	18	$	15
Gas — Alternative Revenue Programs	$	—	$	—	$	4	$	—
Gas — Other revenues	$	2	$	2	$	7	$	6
DTE Vantage — Leases	$	19	$	24	$	44	$	63
Energy Trading — Derivatives	$	670	$	2,531	$	2,527	$	6,691

Deferred Revenue

The following is a summary of costs related to the pass through of a billing adjustment associated with a previous MPSC ordered customer refund. On July 12, 2017, the MPSC issued an order that disallowed recovery of this 2015 PSCR billing adjustment pass through of approximately $16 million, inclusive of interest. DTE Electric recorded the impact of the disallowance in the second quarter of 2017 and filed a claim of appeal with the Michigan Court of Appeals in August 2017.deferred revenue activity:


	DTE Energy
	(In millions)
Beginning Balance, January 1, 2023	$	94
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	113
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(42)
Ending Balance, September 30, 2023	$	165

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The deferred revenues at DTE Energy generally represent amounts paid by or receivables from customers for which the associated performance obligation has not yet been satisfied. Deferred revenues include amounts associated with REC performance obligations under certain wholesale full requirements power contracts. Deferred revenues associated with RECs are recognized as revenue when control of the RECs has transferred. Other performance obligations associated with deferred revenues include providing products and services related to customer prepayments. Deferred revenues associated with these products and services are recognized when control has transferred to the customer.

~~Certificate~~The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:


	DTE Energy
	(In millions)
2023	$	95
2024	68
2025	1
2026	1
2027	—
2028 and thereafter	—
	$	165

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under Topic 606, the Registrants did not disclose the value of ~~Necessity~~unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which revenue is recognized at the amount to which the Registrants have the right to invoice for goods provided and services performed, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.

~~On July 31, 2017,~~ Such contracts consist of varying types of performance obligations across the segments, including the supply and delivery of energy related products and services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related consideration under the contract is variable at inception of the contract. Contract lengths vary from cancellable to multi-year.

The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:


	DTE Energy		DTE Electric
	(In millions)
2023	$	33	$	2
2024	247		8
2025	184		—
2026	99		—
2027	67		—
2028 and thereafter	375		—
	$	1,005	$	10

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 5 — REGULATORY MATTERS

Ludington Accounting Application

During April 2022, DTE Electric and Consumers Energy Company (“Consumers”) filed a complaint against Toshiba America Energy Systems (“TAES”) and its parent corporation for defective and non-conforming work relating to the overhaul and upgrade of the Ludington Hydroelectric Pumped Storage Plant (“Ludington”). Refer to the Ludington Plant Contract Dispute section of Note 12 to the Consolidated Financial Statements, “Commitments and Contingencies,” for additional information regarding the complaint and ongoing legal proceedings.

DTE Electric and Consumers, joint owners of Ludington, believe that certain costs must be incurred in the near term for repairing and/or replacing defective work performed by TAES in order to ensure the continued safe and reliable operation of the plant. In November 2022, DTE Electric and Consumers filed an accounting application with the MPSC for authority to defer these costs as a regulatory asset. DTE Electric and Consumers requested the regulatory asset for their respective 49% and 51% shares of these costs, to be offset by any potential litigation proceeds. The parties also requested that appropriate recovery and ratemaking treatment be granted in a future rate case or other proceeding. In May 2023, the MPSC approved the accounting application as requested. Costs incurred and deferred as regulatory assets will be reviewed in future rate proceedings for cost recovery.

2023 Electric Rate Case Filing

DTE Electric filed a ~~request for authority~~rate case with the MPSC on February 10, 2023 requesting an increase in base rates of $622 million based on a projected twelve-month period ending November 30, 2024, and an increase in return on equity from 9.9% to ~~build~~10.25%. The requested increase in base rates is primarily due to increased investments in plant involving generation and the electric distribution system, as well as related increases to depreciation and property tax expenses. These investments will support DTE Energy's goals to reduce carbon emissions and improve power reliability. The requested increase in base rates is also due to a ~~1,100 megawatt natural gas fueled combined cycle~~projected sales decline from the level included in current rates and inflationary impacts on operating and interest costs. A final MPSC order in this case is expected in December 2023.

2023 Securitization Filing

On April 3, 2023, DTE Electric filed an application with the MPSC requesting a financing order to approve the securitization of $496 million of qualified costs related to the net book value of the St. Clair and Trenton Channel generation ~~facility at~~plants. The filing requested recovery of these qualifying costs from DTE Electric's ~~Belle River Power Plant.~~customers.

The MPSC issued a financing order on June 22, 2023 authorizing DTE Electric ~~requested~~to proceed with the ~~MPSC~~issuance of Securitization bonds for qualified costs up to ~~issue three CONs~~$602 million, increased for the ~~following: (1) power supplied by the proposed project is needed, (2) the size, fuel type, and other design characteristics~~inclusion of ~~the proposed project represent the most reasonable and prudent means of meeting the power need, and (3) the estimated capital~~deferred income taxes. These costs ~~of $989~~include up to $594 million for the ~~proposed project~~net book value of the St. Clair and Trenton Channel plants and up to $8 million for other qualified costs. The financing order further authorized customer charges for the timely recovery of debt service costs on the Securitization bonds and other ongoing qualified costs.

On November 1, 2023, DTE Electric closed on the issuance of Securitization bonds of $602 million, including two separate tranches of $301 million. Refer to Note 9 to the Consolidated Financial Statements, "Long-Term Debt," for additional information regarding the terms of the bonds and use of proceeds. For the fourth quarter, DTE Electric will reclassify $594 million of Regulatory assets to Securitized regulatory assets for the net book value of the St. Clair and Trenton Channel plants. Debt service costs for the first tranche will be ~~recoverable~~recovered over a period not to exceed 10 years and costs for the second tranche will be recovered over a period not to exceed 15 years.

Integrated Resource Plan

In November 2022, DTE Electric filed an Integrated Resource Plan (IRP) with the MPSC, a comprehensive plan to meet the electricity needs of customers over the next 20 years. The IRP included details on planned coal plant retirements and replacement generation, including investments in ~~rates from~~renewables and battery storage, with a focus on providing increasingly clean, reliable, and affordable electricity to customers.

On July 12, 2023, DTE Energy announced that DTE Electric reached a settlement agreement with the various stakeholders involved in the IRP. The MPSC issued an order approving the settlement agreement on July 26, 2023. The agreement confirmed DTE Electric's ~~customers.~~plans to convert its Belle River facility from a coal-fired power plant to a natural gas peaking resource in 2025-2026, and to retire the Monroe power plant generation units 3 and 4 in 2028. DTE Electric also ~~reserved~~accelerated its planned retirement of Monroe generation units 1 and 2 from 2035 to 2032.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The settlement agreement approved the ~~right~~recovery of undepreciated plant costs that will be retired at Belle River and Monroe. As a result, approximately $2.7 billion of net Property, plant, and equipment was reclassified to ~~revise, amend, or otherwise change~~a long-term regulatory asset during the ~~relief it is requesting~~third quarter 2023. Future capital expenditures will also be recovered, and the regulatory asset will be remeasured each reporting period for changes in ~~any way appropriate, including updating~~expenditures, retirements, and depreciation.

DTE Electric will securitize $1.05 billion of the ~~cost estimate within~~plant costs, including approximately $200 million for the ~~150 days~~estimated net book value of Belle River coal handling assets to be retired in 2025-2026. The remaining $845 million reflects the net book value of Monroe assets to be securitized upon the full retirement of the ~~filing date.~~plant in 2032. Securitization will include the issuance of bonds for the respective plant costs and customer charges for the timely recovery of debt service costs. DTE Electric ~~expects~~plans to reclassify amounts to Securitized regulatory assets upon completing the respective securitization financings. Terms of the securitization bonds and recovery periods for the debt service costs will also be determined at that time.

For the remaining net book value of Monroe plant assets, approximately $1.6 billion will be recovered through a regulatory asset with a return on equity of 9.0% and will be amortized over a 15-year period. Amortization will begin upon the issuance of an order in ~~this proceeding~~DTE Electric's next rate case, which is currently expected in early 2025. Until then, amounts will continue to be depreciated.

Pursuant to the IRP settlement agreement, DTE Electric has also committed to donate a total of $38 million, including $2 million each year from 2024 to 2027 to organizations providing various energy support to low-income customers. The remaining $30 million of donations will be made to organizations providing customers with bill assistance. The $30 million of donations may be made in varying annual amounts over the 15-year period of the Monroe regulatory asset discussed above, with a minimum amount of $1 million each year beginning in 2028. Organizations receiving donations will be determined at a later date in consultation with Michigan's Attorney General and MPSC ~~by April 28, 2018.~~staff, among others. Donations will not be recovered in rates and will be recorded as Other Expenses on the Consolidated Statements of Operations in future periods as the donations occur.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 6 — EARNINGS PER SHARE

Basic earnings per share is calculated by dividing ~~the~~ net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units and performance shares ~~and stock options~~ do not receive cash dividends; as such, these awards are not considered participating securities.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:


	Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016			2023		2022		2023		2022
	(In millions, except per share amounts)									(In millions, except per share amounts)
Basic Earnings per Share									Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	270	$	338	$	847	$	737	Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818

Less: Allocation of earnings to net restricted stock awards	1		—		2		1		Less: Allocation of earnings to net restricted stock awards	—		1		2		2
Net income available to common shareholders — basic	$	269	$	338	$	845	$	736	Net income available to common shareholders — basic	$	332	$	386	$	976	$	816

Average number of common shares outstanding	179		179		179		179

Average number of common shares outstanding — basic									Average number of common shares outstanding — basic	206		193		206		193

Basic Earnings per Common Share	$	1.51	$	1.88	$	4.72	$	4.10	Basic Earnings per Common Share	$	1.61	$	2.00	$	4.74	$	4.22

Diluted Earnings per Share									Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	270	$	338	$	847	$	737	Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818

Less: Allocation of earnings to net restricted stock awards	1		—		2		1		Less: Allocation of earnings to net restricted stock awards	—		1		2		2
Net income available to common shareholders — diluted	$	269	$	338	$	845	$	736	Net income available to common shareholders — diluted	$	332	$	386	$	976	$	816

Average number of common shares outstanding	179		179		179		179
Incremental shares attributable to:
Average dilutive performance share awards and stock options^(a)	—		1		—		1

Average number of common shares outstanding — basic									Average number of common shares outstanding — basic	206		193		206		193

Average performance share awards									Average performance share awards	—		1		—		1
Average number of common shares outstanding — diluted	179		180		179		180		Average number of common shares outstanding — diluted	206		194		206		194
Diluted Earnings per Common Share	$	1.51	$	1.88	$	4.72	$	4.10

Diluted Earnings per Common Share(a)									Diluted Earnings per Common Share(a)	$	1.61	$	1.99	$	4.74	$	4.21

September 30, 2017 December 31, 2016
(In millions)
FTRs — Other current assets $ 4
$ 2
Total derivatives not designated as hedging instrument $ 4
$ 2

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.

DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had ~~issued~~$1 million of letters of credit ~~of approximately $2 million~~issued and outstanding at September 30, ~~2017~~2023 and $81 million at December 31, ~~2016,~~2022, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $3$18 million and $2$82 million at September 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.

~~For DTE Energy, the total~~The following table presents net cash collateral ~~posted, net of cash collateral received, was $42 million and $34 million as of September 30, 2017 and December 31, 2016, respectively.~~offsetting arrangements for DTE Energy had $12 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $30 million as of September 30, 2017. DTE Energy had $7 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $28 million as of December 31, 2016. DTE Energy recorded cash collateral paid of $25 million and cash collateral received of $1 million not related to unrealized derivative positions as of September 30, 2017. DTE Energy recorded cash collateral paid of $18 million and cash collateral received of $5 million not related to unrealized derivative positions as of December 31, 2016. These amounts are included in Accounts receivable and Accounts payable andEnergy:


	September 30, 2023		December 31, 2022
	(In millions)
Cash collateral netted against Derivative assets	$	—	$	(90)
Cash collateral netted against Derivative liabilities	12		113
Cash collateral recorded in Accounts receivable(a)	52		77
Cash collateral recorded in Accounts payable(a)	(15)		(27)
Total net cash collateral posted (received)	$	49	$	73

(a)Amounts are recorded net by counterparty.

~~The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:~~

September 30, 2017 December 31, 2016
Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
(In millions)
Derivative assets
Commodity Contracts
Natural Gas $ 230
$ (151 ) $ 79
$ 348
$ (306 ) $ 42
Electricity 202
(148 ) 54
193
(157 ) 36
Other 4
—
4
2
—
2
Foreign currency exchange contracts 3
(2 ) 1
6
(5 ) 1
Total derivative assets $ 439
$ (301 ) $ 138
$ 549
$ (468 ) $ 81

Derivative liabilities
Commodity Contracts
Natural Gas $ (204 ) $ 151
$ (53 ) $ (461 ) $ 321
$ (140 )
Electricity (199 ) 164
(35 ) (189 ) 163
(26 )
Other (2 ) 2
—
(3 ) 2
(1 )
Foreign currency exchange contracts (4 ) 2
(2 ) (3 ) 3
—
Total derivative liabilities $ (409 ) $ 319
$ (90 ) $ (656 ) $ 489
$ (167 )

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:


	September 30, 2023						December 31, 2022
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position		Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
	(In millions)
Derivative assets
Commodity contracts(a)
Natural gas	$	441	$	(299)	$	142	$	744	$	(649)	$	95
Electricity	333		(198)		135		963		(643)		320
Environmental & Other	171		(162)		9		213		(196)		17
Interest rate contracts	22		—		22		1		—		1
Foreign currency exchange contracts	1		—		1		1		(1)		—
Total derivative assets	$	968	$	(659)	$	309	$	1,922	$	(1,489)	$	433

Derivative liabilities
Commodity contracts(a)
Natural gas	$	(476)	$	301	$	(175)	$	(1,018)	$	645	$	(373)
Electricity	(318)		208		(110)		(935)		665		(270)
Environmental & Other	(175)		162		(13)		(214)		201		(13)

Foreign currency exchange contracts	(1)		—		(1)		(2)		1		(1)
Total derivative liabilities	$	(970)	$	671	$	(299)	$	(2,169)	$	1,512	$	(657)

(a)For contracts with a clearing agent, DTE Energy nets all activity across commodities. This can result in some individual commodities having a contra balance.

The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:


	September 30, 2023								December 31, 2022
	Derivative Assets				Derivative Liabilities				Derivative Assets				Derivative Liabilities
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
	(In millions)
Total fair value of derivatives	$	733	$	235	$	(657)	$	(313)	$	1,517	$	405	$	(1,535)	$	(634)
Counterparty netting	(505)		(154)		505		154		(1,127)		(272)		1,127		272
Collateral adjustment	—		—		7		5		(62)		(28)		66		47
Total derivatives as reported	$	228	$	81	$	(145)	$	(154)	$	328	$	105	$	(342)	$	(315)

September 30, 2017 December 31, 2016
Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities
Current Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent
(In millions)
Total fair value of derivatives $ 301
$ 138
$ (297 ) $ (112 ) $ 447
$ 102
$ (493 ) $ (163 )
Counterparty netting (225 ) (64 ) 225
64
(396 ) (65 ) 396
65
Collateral adjustment —
(12 ) 30
—
(4 ) (3 ) 28
—
Total derivatives as reported $ 76
$ 62
$ (42 ) $ (48 ) $ 47
$ 34
$ (69 ) $ (98 )

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:

Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended September 30, Gain (Loss) Recognized in Income on Derivatives for the Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Commodity Contracts
Natural Gas Operating Revenues — Non-utility operations $ (14 ) $ 16
$ 63
$ (70 )
Natural Gas Fuel, purchased power, and gas — non-utility 10
(59 ) 56
(27 )
Electricity Operating Revenues — Non-utility operations 33
23
39
18
Other Operating Revenues — Non-utility operations 2
1
1
(1 )
Foreign currency exchange contracts Operating Revenues — Non-utility operations (2 ) —
(3 ) (4 )
Total $ 29
$ (19 ) $ 156
$ (84 )


	Location of Gain (Loss) Recognized in Income on Derivatives	Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended September 30,				Gain (Loss) Recognized in Income on Derivatives for the Nine Months Ended September 30,
		2023		2022		2023		2022
		(In millions)
Commodity contracts
Natural gas	Operating Revenues — Non-utility operations	$	(41)	$	(52)	$	89	$	(315)
Natural gas	Fuel, purchased power, gas, and other — non-utility	37		108		120		8
Electricity	Operating Revenues — Non-utility operations	85		61		30		173
Environmental & Other	Operating Revenues — Non-utility operations	(4)		(3)		(5)		15
Foreign currency exchange contracts	Operating Revenues — Non-utility operations	1		5		—		5
Total		$	78	$	119	$	234	$	(114)

Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, gas, and ~~gas~~other — non-utility.

The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of September 30, ~~2017:~~

2023:



Commodity						Number of Units
Natural ~~Gas~~gas (MMBtu)						~~1,751,191,598~~2,208,451,991
Electricity (MWh)						~~28,924,416~~37,535,900
Oil (Gallons)						4,740,000
Foreign ~~Currency Exchange (Canadian dollars)~~currency exchange ($ CAD)						~~89,049,511~~150,049,286
FTR (MWh)						98,119
Renewable Energy Certificates (MWh)						10,856,311
Carbon emissions (Metric Tons)						1,652,108
Interest rate contracts ($ USD)						500,000,000

Various subsidiaries 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”~~"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”~~"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 ~~coal)~~environmental) and the provisions and maturities of the underlying transactions. As of September 30, ~~2017,~~2023, 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 ~~approximately $470~~$437 million.

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

As of September 30, ~~2017,~~2023, DTE Energy had ~~approximately $339~~$761 millionof derivatives in net liability positions, for which hard triggers exist. There is no$12 million of collateral that has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for which contractual offset exists were ~~approximately $276~~$632 million. The net remaining amount of ~~approximately $63~~$117 million is derived from the ~~$470~~$437 millionnoted above.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 9 — LONG-TERM DEBT

Debt Issuances

Refer to the table below for debt issued through September 30, 2023:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	March	Mortgage bonds(a)	5.20%	2033	$	600
DTE Electric	March	Mortgage bonds(a)	5.40%	2053	600
DTE Energy	March	Term loan facility draw(b)	Variable	2023	200
DTE Energy	May	Senior notes(c)	4.875%	2028	800
DTE Electric	June	Tax-exempt revenue bonds(d)	3.875%	2053	100


					$	2,300

(a)Proceeds used for the repayment of short-term borrowings, for capital expenditures, and for other general corporate purposes.

(b)Proceeds used for general corporate purposes.

(c)Proceeds used for the repayment of amounts outstanding under the term loan facility.

(d)Tax-exempt revenue bonds are issued by a public body that loans the proceeds to DTE Electric with terms substantially mirroring the revenue bonds. Proceeds were used to finance costs relating to solid waste disposal facilities at the Monroe and St. Clair power plants. The bonds will be subject to mandatory tender in June 2030.

In ~~2017,~~June 2022, DTE Energy entered into a $1.125 billion unsecured term loan with a maturity date of December 2023. Any borrowings on the ~~following~~loan were determined to be long-term debt, as the term of the facility exceeded one year. Through the first quarter 2023, DTE Energy had drawn $1.0 billion on the term loan, bearing interest at SOFR plus 0.90% per annum. These borrowings were repaid in May and June 2023, as noted in the debt redemptions table below. Unused term loan capacity of $125 million terminated in June 2023 per the terms of the credit agreement.

In October 2023, DTE Gas issued $150 million of 5.57% First Mortgage Bonds due October 1, 2030 and $145 million of 5.73% First Mortgage Bonds due October 1, 2035 to a group of institutional investors in a private placement transaction. Proceeds have been used for the repayment of short-term borrowings and for general corporate purposes, including capital expenditures.

In November 2023, DTE Electric issued Securitization bonds of $602 million, including two separate tranches of $301 million. The first tranche was ~~issued:~~issued with an interest rate of 5.97% and a final maturity date of March 1, 2033. Principal payments will be due semi-annually beginning September 2024, with the final payment scheduled for March 2032. The second tranche was issued with an interest rate of 6.09% and a final maturity date of September 1, 2038. Payments will be due semi-annually beginning March 2032, with the final payment scheduled for September 2037.

The Securitization bonds were issued in alignment with Green Bond principles to support the closure and recovery of St. Clair and Trenton Channel generation plants and DTE Electric's transition to cleaner energy. Proceeds from the bonds were used to reimburse DTE Electric for qualified costs incurred for the net book value of the St. Clair and Trenton Channel plants and other qualified costs. The securitization financing order from the MPSC required that the net proceeds be subsequently applied by DTE Electric to retire existing debt or equity. Accordingly in the fourth quarter 2023, DTE Electric plans to use proceeds of approximately $300 million towards the retirement of debt and approximately $300 million to issue a special dividend to DTE Energy. Refer to Note 5 to the Consolidated Financial Statements, "Regulatory Matters," for additional information.

Company Month Type Interest Rate Maturity Amount
(In millions)
DTE Energy March
Senior Notes^(a)
3.80% 2027 $ 500
DTE Electric August
General and Refunding Mortgage Bonds^(b)
3.75% 2047 440
DTE Gas September
First Mortgage Bonds^(a)
3.08% 2029 40
DTE Gas September
First Mortgage Bonds^(a)
3.75% 2047 40
$ 1,020

Table of Contents


~~(a)~~	~~Proceeds were used for repayment of short-term borrowings and general corporate purposes.~~


~~(b)~~	~~Proceeds were used to repay~~ ~~$300 million~~ ~~of DTE Electric's 2008 series G 5.60% Senior Notes due on June 15, 2018, for the repayment of short-term borrowings and general corporate purposes.~~ DTE Energy Company — DTE Electric Company Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Debt Redemptions

Refer to the table below for debt redeemed through September 30, 2023:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Gas	April	Senior notes	6.44%	2023	$	25
DTE Energy	May	Term loan facility	Variable	2023	800
DTE Electric	June	Securitization bonds	2.64%	2023	19
DTE Energy	June	Term loan facility	Variable	2023	200
DTE Electric	September	Mortgage bonds	4.31%	2023	102
					$	1,146

In ~~2017, the following debt was redeemed:~~October 2023, DTE Electric redeemed at maturity its $100 million 2005 Series C 5.19% Senior Notes.

Company Month Type Interest Rate Maturity Amount
(In millions)
DTE Electric August Senior Notes 5.60% 2018 $ 300
DTE Energy September
Secured Note^(a)
7.29% 2029 77
DTE Energy Various Other Long-Term Debt Various 2017 8
$ 385


~~(a)~~	DTE Energy's Gas Storage and Pipelines segment recognized a $16 million net loss on extinguishment of debt associated with early repayment, consisting of $20 million of early redemption premiums and $4 million of unamortized debt premiums. The loss is reflected in Other (Income) and Deductions — Interest Expense on the Consolidated Statements of Operations.

NOTE 10 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. ~~Additionally,~~Letters of credit of up to $500 million may also be issued under the DTE Energy ~~has~~revolver. DTE Energy and DTE Electric also have other facilities to support letter of credit ~~issuance.~~issuance and increase liquidity.

The unsecured revolving credit agreements require ~~DTE Energy, DTE Electric, and DTE Gas to maintain~~ a total funded debt to capitalization ratio of no more than 0.70 to 1 for DTE Energy and 0.65 to 1.1 for DTE Electric and DTE Gas. In the agreements, ~~“total~~"total funded ~~debt”~~debt" means all indebtedness of each respective company and their consolidated subsidiaries, including ~~capital~~finance lease obligations, hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. ~~“Capitalization”~~"Capitalization" means the sum of (a) total funded debt plus (b) ~~“consolidated~~"consolidated net worth,”" which is equal to consolidated total equity of each respective company and their consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At September 30, ~~2017,~~2023, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.64 to 1, 0.54 to 1, ~~0.51 to 1,~~ and ~~0.48~~0.46 to 1, respectively, and were in compliance with this financial covenant.

During May 2023, DTE Energy paid the amount outstanding and terminated its unsecured Canadian revolving credit facility. In June 2023, DTE Energy entered into a new $100 million uncommitted letter of credit facility, with availability to either DTE Energy or DTE Electric.

In July 2023, DTE Energy entered into an additional $50 million uncommitted letter of credit facility. DTE Energy has also amended the terms of several other letter of credit facilities during 2023, including capacities and maturity dates.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The availability under ~~the~~these facilities ~~in place at~~as of September 30, ~~2017~~2023 is shown in the following table:

DTE Energy DTE Electric DTE Gas Total
(In millions)
Unsecured letter of credit facility, expiring in February 2019 $ 150
$ —
$ —
$ 150
Unsecured letter of credit facility, expiring in September 2019^(a)
70
—
—
70
Unsecured revolving credit facility, expiring April 2022 1,200
400
300
1,900
1,420
400
300
2,120
Amounts outstanding at September 30, 2017
Commercial paper issuances 98
311
250
659
Letters of credit 132
—
—
132
230
311
250
791
Net availability at September 30, 2017 $ 1,190
$ 89
$ 50
$ 1,329


	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured revolving credit facility, expiring October 2028	$	1,500	$	800	$	300	$	2,600
Unsecured letter of credit facility, expiring June 2024	175		—		—		175
Unsecured letter of credit facility, expiring February 2025	150		—		—		150
Unsecured letter of credit facility(a)	100		—		—		100
Unsecured letter of credit facility(b)	—		100		—		100
Unsecured letter of credit facility(a)	50		—		—		50

	1,975		900		300		3,175
Amounts outstanding at September 30, 2023

Commercial paper issuances	371		656		190		1,217

Letters of credit	144		23		—		167
	515		679		190		1,384
Net availability at September 30, 2023	$	1,460	$	221	$	110	$	1,791


~~(a)~~	~~In August 2017, DTE Energy amended its $70 million letter of credit facility. The facility's maturity date was extended from September 2017 to September 2019.~~

(a)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration.

(b)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration. DTE Energy ~~has approximately $17 million of other outstanding letters of credit which are used for various corporate purposes and are not included in the facilities described above.~~may also utilize availability under this facility.

In conjunction with maintaining certain ~~exchange traded~~exchange-traded risk management positions, DTE Energy may be required to post collateral with ~~its~~a clearing agent. DTE Energy has a demand financing agreement ~~for up to $100 million~~ with its clearing ~~agent. The agreement, as amended, also allows for up to $50 million of additional margin financing provided that DTE Energy posts a letter of credit for the incremental amount and~~agent, which allows the right of setoff with posted collateral. At September 30, ~~2017,~~2023, the capacity under ~~this~~the facility was ~~$100~~$200 million. The ~~amount~~amounts outstanding under ~~this agreement was $32~~demand financing agreements were $139 million and ~~$50~~$166 million at September 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively, and ~~was~~were fully offset by ~~the~~ posted collateral.

NOTE 11 — LEASES

Lessor

Interest income recognized under finance leases was $6 million for both the three months ended September 30, 2023 and 2022, and $20 million and $17 million for the nine months ended September 30, 2023 and 2022, respectively.

DTE Energy’s lease income associated with operating leases, included in Operating Revenues — Non-utility operations in the Consolidated Statements of Operations, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fixed payments	$	4	$	3	$	11	$	11
Variable payments	15		21		33		52
	$	19	$	24	$	44	$	63

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 12 — COMMITMENTS AND CONTINGENCIES

Environmental

DTE Electric

Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO₂ and ~~NOx.~~NOX. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce ~~NOx,~~ SO₂, NOX, mercury, and other emissions. Additional ~~rulemakings~~rule making may occur over the next few years which could require additional controls for SO₂, ~~NOx,~~NOX, and other hazardous air pollutants.

~~The Cross State Air Pollution Rule (CSAPR), required further reductions of SO~~₂ ~~and NOx emissions beginning in January 2015. On September 7, 2016,~~In 2015, the EPA finalized an update to the CSAPR ozone season program by issuing the CSAPR Update Rule. This rule is expected to reduce summertime (May-September) NOx emissions from power plants in 22 states in the eastern half of the U.S., including DTE Electric facilities. The CSAPR Update Rule is intended to reduce air quality impacts of the interstate transport of air pollution on downwind areas' ability to meet the 2008 ozone National Ambient Air Quality Standards ~~implementing power sector~~("NAAQS") for ground level ozone. In August 2018, the EPA designated southeast Michigan as "marginal non-attainment" with the 2015 ozone NAAQS. In January 2022, after collecting several years of data, the State submitted a request to the EPA for redesignation of the southeast Michigan ozone non-attainment area to attainment, and to accept their maintenance plan and emission ~~budgets and NOx allowance trading programs. DTE Electric expects~~inventories as a revision to ~~meet its obligations under CSAPR.~~the Michigan State Implementation Plan (SIP). On May 19, 2023, the EPA posted in the Federal Register the redesignation of attainment of the ozone standard for the seven-county Southeast Michigan region. DTE Electric does not expect ~~this rule~~a significant financial impact related to ~~have a material effect on its compliance program.~~

~~The EPA proposed revised air quality standards for ground level ozone in November 2014 and specifically requested comments on the form and level of~~ the ozone ~~standards. The standards were finalized in October 2015. The State of Michigan recommended to the EPA in October 2016 which areas~~NAAQS at this time, pending finalization of the state ~~are not attaining the new standard. The Registrants expect~~rules and implementation plans.

In May 2023, the EPA to designate areas as either attainment or non-attainment with the 2015 ozone standards in the fourth quarter of 2017. DTE Electric cannot predict the financial impact of the revised ozone standards at this time.

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

In July 2009, DTE Energy received a NOV/FOV from the EPA alleging, among other things, that five DTE Electric power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and operating permit requirements under the Clean Air Act. In June 2010, the EPA issued a NOV/FOV making similar allegations related to a project and outage at Unit 2 of the Monroe Power Plant. In March 2013, DTE Energy received a supplemental NOV from the EPA relating to the July 2009 NOV/FOV. The supplemental NOV alleged additional violations relating to the New Source Review provisions under the Clean Air Act, among other things.

In August 2010, the U.S. Department of Justice, at the request of the EPA, brought a civil suit in the U.S. District Court for the Eastern District of Michigan against DTE Energy and DTE Electric, related to the June 2010 NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant. In August 2011, the U.S. District Court judge granted DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric. In October 2011, the EPA filed a Notice of Appeal to the Court of Appeals for the Sixth Circuit. In March 2013, the Court of Appeals remanded the case to the U.S. District Court for review of the procedural component of the New Source Review notification requirements. In September 2013, the EPA filed a motion seeking leave to amend their complaint regarding the June 2010 NOV/FOV adding additional claims related to outage work performed at the Trenton Channel and Belle River Power Plants as well as additional claims related to work performed at the Monroe Power Plant. In March 2014, the U.S. District Court judge again granted DTE Energy's motion for summary judgment dismissing the civil case related to Monroe Unit 2. In April 2014, the U.S. District Court judge granted motions filed by the EPA and the Sierra Club to amend their New Source Review complaint adding additional claims for Monroe Units 1, 2, and 3, Belle River Units 1 and 2, and Trenton Channel Unit 9. In October 2014, the EPA and the U.S. Department of Justice filed a notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. The amended New Source Review claims were all stayed pending resolution of the appeal by the Court of Appeals for the Sixth Circuit. Oral arguments before the Sixth Circuit occurred in December 2015. On January 10, 2017, a divided panel of the Court reversed the decision of the U.S. District Court. On February 24, 2017, DTE Energy and DTE Electric filed a petition with the Sixth Circuit Court for a rehearing and a rehearing en banc, which was denied on May 1, 2017. On May 8, 2017, DTE Energy and DTE Electric filed a motion to stay the mandate pending filing of a petition for writ of certiorari with the U.S. Supreme Court. The Sixth Circuit granted the motion on May 16, 2017, staying the claims in district court until the U.S. Supreme Court disposes of the case. DTE Electric and DTE Energy filed a petition for writ of certiorari on July 31, 2017. Responses to the petition are due November 1, 2017.

The Registrants believe that the plants and generating units identified by the EPA and the Sierra Club have complied with all applicable federal environmental regulations. Depending upon the outcome of the litigation and further discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be required to install additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control equipment is not economical, engage in supplemental environmental programs, and/or pay fines. The Registrants cannot predict the financial impact or outcome of this matter, or the timing of its resolution.

~~The EPA has implemented regulatory actions under the Clean Air Act~~proposed new rules to address emissions of GHGs from existing, new, modified, or reconstructed sources in the utility sector and other sectors of the economy. Among these actions, the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. The carbon standards for new sources are not expected to have a material impact onpower sector. DTE Electric ~~since DTE Electric has no plans to build new coal-fired generation~~provided individual comments on the proposal and ~~any potential new gas generation will~~also worked with industry partners on a broader set of comments. The financial impact cannot be ~~able to comply with the standards. In February 2016, the U.S. Supreme Court granted petitioners' requests for~~estimated until a ~~stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending~~ final ~~review by the courts. The Clean Power Plan has no legal effect while the stay~~rule is issued, which is currently expected in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Additionally, federal agencies have been directed to conduct a review of all existing regulations that potentially burden the development and use of domestically produced energy resources. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA Clean Power Plan on existing sources at this time.early 2024.

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. ~~Impacts~~Potential impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

To comply with air pollution requirements, DTE Electric has spent approximately $2.4 ~~billion through 2016.~~billion. DTE Electric does not anticipate additional capital expenditures ~~through 2023.~~for air pollution requirements, subject to the results of future rulemakings.

Water — In response to an EPA ~~regulation,~~regulations and in accordance with the Clean Water Act section 316(b), DTE Electric was required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. ~~Based on the results of completed studies and expected future studies, DTE Electric may be required to install technologies to reduce the impacts of the water intake structures.~~ A final rule became effective in October ~~2015. The final rule requires~~2014, which required studies to be completed ~~by April 2018~~and submitted as part of the NPDES permit application process to determine the type of technology needed to reduce impacts to fish. DTE Electric has ~~initiated the process of completing~~completed the required ~~studies.~~studies and submitted reports for most of its generation plants, and a final study is in-process for Monroe power plant. Final compliance for the installation of any required technology to reduce the impacts of water intake structures will be determined by ~~each~~the state on a case by case, site specific basis. DTE Electric is currently evaluating the compliance options and working with the State of Michigan on ~~evaluating~~determining whether any controls are needed. These evaluations/studies may require modifications to some existing intake structures. It is not possible to quantify the impact of this ~~rulemaking~~rule making at this time.

As part of the Monroe power plant NPDES permit, EGLE has added requirements to evaluate the thermal discharge of the facility as it relates to Clean Water Act section 316(a) regulations. DTE Electric will submit to EGLE a biological demonstration study plan to evaluate the thermal discharge impacts to an aquatic community. After approval of the plan by EGLE and completion of field sampling, data will be processed and compiled into a comprehensive report. At the present time, DTE Electric cannot predict the outcome of this evaluation or financial impact.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured locally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedial investigations at contaminated sites, including three former MGP sites. Cleanup of one of the MGP sites is complete, and that site is closed. The investigations have revealed contamination related to the by-products of gas manufacturing at each MGP site. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the area surrounding an ash landfill, electrical distribution substations, electric generating power plants, and underground and ~~aboveground~~above ground storage tank locations. The findings of these investigations indicated that the estimated cost to remediate these sites is expected to be incurred over the next several years. At September 30, ~~2017~~2023 and December 31, ~~2016,~~2022, DTE Electric had $8$9 million and $10 million, respectively, accrued for remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site.

Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of ~~CCR,~~coal combustion residuals, commonly known as coal ash, became effective in October 2015 and ~~was revised~~has continued to be updated in ~~October 2016. In September 2017,~~subsequent years. The rule is based on the ~~EPA indicated that it intends to reconsider certain provisions~~continued listing of ~~the CCR Rule, but the nature~~coal ash as a non-hazardous waste and ~~timing of such a reconsideration is unknown.~~relies on various self-implementation design and performance standards. DTE Electric owns and operates three permitted engineered coal ash storage facilities to dispose of coal ash from coal-fired power plants and operates a number of smaller impoundments at its power ~~plants.~~plants subject to certain provisions in the CCR ~~obligations vary based on plant life, but include~~rule. At certain facilities, the ~~installation~~rule currently requires ongoing sampling and testing of monitoring wells, compliance with groundwater standards, and the closure of ~~landfills and~~ basins at the end of the useful life of the associated power ~~plant or~~plant.

On August 28, 2020, Part A of the CCR rule was published in the Federal Register and required all unlined impoundments to initiate closure as soon as technically feasible, but no later than April 11, 2021. Additionally, the rule amends certain reporting requirements and CCR website requirements. On November 12, 2020, Part B of the CCR Rule was published in the Federal Register and provides a ~~basin becomes inactive.~~process to determine if certain unlined impoundments with an alternative liner system may be sufficiently protective and therefore may continue to operate.

~~In November 2015,~~DTE Electric submitted applications to the EPA ~~finalized~~that support continued use of all impoundments through their active lives. The forced closure date of April 11, 2021 was effectively delayed, pending the ~~ELG Rule~~EPA completing review of the applications. On September 1, 2022, DTE Electric ceased receipt of CCR and non-CCR waste streams at the St. Clair power plant bottom ash basins and initiated closure. Therefore, DTE Electric withdrew the Part A rule demonstration for St. Clair, as it was no longer necessary for the ~~steam electric~~EPA to issue an extension of the April 11, 2021 deadline to cease receipt of waste.

On January 25, 2023, DTE Electric received notice of the EPA's proposed denial of Part B applications. DTE Electric provided comments on April 10, 2023, in response to the proposed decision. DTE Electric has since implemented projects at the Belle River power ~~generating industry which may require additional controls~~plant to ~~be installed between 2018 and 2023. Compliance schedules for individual facilities and individual~~cease receipt of waste ~~streams are determined through issuance of new wastewater permits by~~within any unlined CCR surface impoundments. Therefore, on September 21, 2023, DTE Electric withdrew the ~~State of Michigan. The State of Michigan has issued a National Pollutant Discharge Elimination System permit~~Part B applications for the Belle River ~~Power Plant establishing a compliance deadline of December 31, 2021. No new permits have been issued~~power plant, leaving only the part B application for ~~other facilities, consequently no compliance timelines have been established. Under~~ the ~~current rule, certain ELG requirements would be required to be performed in conjunction with the CCR. Over the next six years, to comply with the ELG requirements~~Monroe power plant fly ash basin pending final review of the ~~November 2015 rules~~EPA. If the EPA's final decision remains unchanged, DTE Electric does not expect the denied application to have a significant operational or financial impact; however, DTE Electric is continuing to review and ~~for CCR requirements, costs associated with the building~~analyze potential outcomes of ~~new facilities or installation of controls are estimated to be approximately $311 million.~~this matter.

On ~~April 12, 2017,~~May 18, 2023, the EPA granted a petition for reconsideration of the ELG Rule. The EPA also signed an administrative stay of the ELG Rule’s compliance deadlines for fly ash transport water, bottom ash transport water, and flue gas desulfurization (FGD) wastewater, among others. On June 6, 2017, the EPA publishedposted in the Federal Register a proposed rule to ~~postpone certain applicable deadlines within~~regulate legacy CCR surface impoundments and CCR management units. The rule proposes to expand the ~~ELG~~reach of the CCR rule to inactive electric generation sites and previously unregulated locations of CCR at a regulated facility. DTE Electric is currently evaluating the proposed rule. The financial impact of the proposed rule cannot be estimated until a final rule is issued, which is currently expected in mid-2024.

At the State level, legislation was ~~published on September 18, 2017, which extended~~signed in December 2018 and provides for further regulation of the ~~earliest compliance deadlines for~~CCR program in Michigan. Additionally, the ~~FGD wastewater and bottom ash transport until November 1, 2020 in order for~~statutory revision provides the basis of a CCR program that EGLE has submitted to the EPA for approval to ~~propose~~fully regulate the CCR program in Michigan in lieu of a Federal permit program. The EPA is currently working with EGLE in reviewing the submitted State program, and ~~finalize a new ruling. The ELG compliance requirements, final deadlines, and compliance costs~~DTE Electric will ~~not~~work with EGLE to implement the State program that may be ~~known until~~approved in the ~~EPA completes its reconsideration of the ELG Rule.~~

future.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

On October 13, 2020, the EPA finalized the ELG Reconsideration Rule which revised the regulations from the 2015 ELG rule for FGD wastewater and bottom ash transport water only. The Reconsideration Rule re-established the technology-based effluent limitations guidelines and standards applicable to FGD wastewater and bottom ash transport water. The EPA set the applicability dates for bottom ash transport water "as soon as possible" beginning October 13, 2021 and no later than December 31, 2025. FGD wastewater retrofits must be completed "as soon as possible" beginning October 13, 2021 and no later than December 31, 2025 or December 31, 2028 if a permittee decides to pursue the Voluntary Incentives Program (VIP) subcategory for FGD wastewater. If a facility applies for the VIP, they must meet more stringent standards, but are allowed an extended time period to meet the compliance requirements.

The Reconsideration Rule also provides additional compliance opportunities by finalizing low utilization and cessation of coal burning subcategories. The Reconsideration Rule provides new opportunities for DTE Electric to evaluate existing ELG compliance strategies and make any necessary adjustments to ensure full compliance with the ELGs in a cost-effective manner.

Compliance schedules for individual facilities and individual waste streams are determined through issuance of new NPDES permits by the State of Michigan. The State of Michigan has issued an NPDES permit for the Belle River power plant establishing compliance deadlines based on the 2020 Reconsideration Rule. On October 11, 2021, in consideration of the deadlines above, DTE Electric submitted a Notice of Planned Participation ("NOPP") to the State of Michigan that formally announced the intent to pursue compliance subcategories as ELG compliance options: the cessation of coal at the Belle River power plant no later than December 31, 2028 and the VIP for FGD wastewater at Monroe power plant by December 31, 2028.

On March 29, 2023, the EPA published two draft proposals to revise existing ELG rules. The first draft proposal reopened the cessation of coal compliance subcategory from the 2020 ELG rule and allow for compliance by committing to such cessation no later than December 31, 2028. This proposal was finalized by the EPA on May 30, 2023. The second draft proposal is a broader update to the ELG rules that includes revised compliance standards for FGD wastewater, bottom ash transport water, and other wastewater streams with a compliance date no later than December 31, 2029. DTE Electric's compliance strategy includes the conversion of the two generating units at the Belle River power plant to a natural gas peaking resource in 2025-2026, which was included in the NOPP filed in 2021. DTE Electric also submitted a new NOPP to apply for the cessation of coal compliance subcategory for generating units 3 and 4 at the Monroe power plant. DTE Electric plans to retire Monroe's generating units 1 and 2 in 2032.

DTE Electric continues to evaluate compliance strategies, technologies and system designs to achieve compliance with the EPA rules at the Monroe power plant.

DTE Electric currently estimates the impact of the CCR and ELG rules to be $481 million of capital expenditures, including $343 million for 2023 through 2027. This estimate may change in future periods as DTE Electric continues to evaluate the proposed EPA rule from May 18, 2023 to regulate legacy CCR surface impoundments and CCR management units, as noted above.

DTE Gas

Contaminated and Other Sites — DTE Gas owns or previously owned 14 former MGP sites. Investigations have revealed contamination related to the by-products of gas manufacturing at each site. Cleanup of ~~six of the~~eight MGP sites is complete and ~~the~~those sites are closed. DTE Gas has also completed partial closure of ~~six~~four additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established a cost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is also in the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As of September 30, ~~2017~~2023 and December 31, ~~2016,~~2022, DTE Gas had ~~$41~~$20 million and ~~$43~~$23 million, respectively, accrued for ~~remediation, respectively.~~remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows for amortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will prevent ~~environmental~~the associated investigation and remediation costs from having a material adverse impact on DTE Gas' results of operations.

Air — The EPA recently finalized its Good Neighbor Rule, which includes provisions for compressor engines operated for the transportation of natural gas. DTE Gas is assessing the applicability of the rule on its engines and what impacts that could have on operations. DTE Gas has not determined whether there will be a financial impact at this time.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Non-utility

DTE Energy's non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environment from various pollutants.

In March 2019, the EPA issued an FOV to EES Coke Battery, LLC ("EES Coke"), the Michigan coke battery facility that is a wholly-owned subsidiary of DTE Energy, alleging that the 2008 and 2014 permits issued by EGLE did not comply with the Clean Air Act. In September 2020, the EPA issued another FOV alleging EES Coke's 2018 and 2019 SO2 emissions exceeded projections and hence violated non-attainment new source review permitting requirements. EES Coke evaluated the EPA's alleged violations and believes that the permits approved by EGLE complied with the Clean Air Act. EES Coke responded to the EPA's September 2020 allegations demonstrating its actual emissions are compliant with non-attainment new source review requirements. On June 1, 2022, the U.S. Department of Justice, on behalf of the EPA, filed a complaint against EES Coke in the U.S. District Court for the Eastern District of Michigan alleging that EES Coke failed to comply with non-attainment new source review requirements under the Clean Air Act when it applied for the 2014 permit. In November 2022, the Sierra Club and City of River Rouge were granted intervention. At the present time, DTE Energy cannot predict the outcome or financial impact of this matter.

Separately, in December 2021, EGLE issued a Notice of Violation to EES Coke alleging excess visible emissions from pushing operations. In January 2022, EES Coke provided EGLE a response describing the corrective actions taken to prevent future recurrences. At the present time, EES Coke cannot predict the outcome or financial impact of this matter.

Other

In 2010, the EPA finalized a new one-hour SO₂ ambient air quality standard that requires states to submit plans and associated timelines for non-attainment areas that demonstrate attainment with the new SO₂ standard in phases. Phase 1 addresses non-attainment areas designated based on ambient monitoring data. Phase 2 addresses non-attainment areas with large sources of SO₂ and modeled concentrations exceeding the National Ambient Air Quality Standards for SO₂. Phase 3 addresses smaller sources of SO₂ with modeled or monitored exceedances of the new SO₂ standard.

Michigan's Phase 1 non-attainment area ~~includes~~included DTE Energy ~~facilities~~facilities. However, the EPA published a Federal Implementation Plan (FIP) for the area in ~~southwest Detroit and areas of Wayne County. Modeling runs by the MDEQ suggest~~June 2022 that ~~emission reductions may be required by significant sources of SO~~₂ ~~emissions in these areas, including DTE Electric power plants and DTE Energy's Michigan coke battery facility. As part of the state implementation plan process,~~did not impact any DTE Energy ~~has worked with the MDEQ to develop air permits reflecting significant SO~~₂ ~~emission reductions~~facilities. It is also not expected that ~~in combination with other non-DTE Energy sources' emission reduction strategies,~~Phase 3 will ~~help the state attain the standard and sustain its attainment. Since several non-DTE Energy sources are also part of the proposed compliance plan,~~have any impact on DTE ~~Energy is unable to determine the full impact of the final required emissions reductions at this time.~~Energy.

Michigan's Phase 2 non-attainment area includes DTE Electric facilities in St. Clair County. ~~State implementation plans (SIPs)~~The EPA approved a clean data determination request submitted by EGLE. This determination suspends certain planning requirements and sanctions for ~~Phase 2 areas describing~~ the ~~control strategy and timeline~~non-attainment area for ~~demonstrating compliance with~~as long as the ~~new~~area continues to attain the 2010 SO₂ ~~standard are due~~ air quality standards, but this does not automatically redesignate the area to attainment. Until the ~~EPA by April 2018. DTE Energy~~area is ~~currently working with the MDEQ to develop the required SIP.~~officially redesignated as attainment, DTE Energy is unable to determine the ~~full impact of the SIP strategy, as it is currently under development.~~

~~Synthetic Fuel Guarantees~~

DTE Energy discontinued the operations of its synthetic fuel production facilities throughout the United States as of December 31, 2007. DTE Energy provided certain guarantees and indemnities in conjunction with the sales of interests in its synfuel facilities. The guarantees cover potential commercial, environmental, oil price, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at September 30, 2017 was approximately $620 million. Payment under these guarantees is considered remote.impacts.

REF Guarantees

DTE Energy ~~has~~ provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its previously operated REF facilities. The guarantees cover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at September 30, ~~2017~~2023 was ~~approximately $364~~$414 million. ~~Payment under these guarantees is considered remote.~~

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

~~NEXUS Guarantees~~

NEXUS entered into certain 15-year capacity lease agreements for the transportation of natural gas with DTE Gas and Texas Eastern Transmission, LP, an unrelated third party. Pursuant to the terms of those agreements, in December 2016, DTE Energy executed separate guarantee agreements with DTE Gas and Texas Eastern Transmission, LP, with maximum potential payments totaling $75 million and $9 million at September 30, 2017, respectively; each representing 50% of all payment obligations due and payable by NEXUS. Should NEXUS fail to perform under the terms of those agreements, DTE Energy is required to perform on its behalf. Each guarantee terminates at the earlier of (i) such time as all of the guaranteed obligations have been fully performed, or (ii) two months following the end of the primary term of the capacity lease agreements. Subsequent to the NEXUS in-service date, the amount of each guarantee decreases annually as payments are made by NEXUS to each of the aforementioned counterparties. Payments under these guarantees are considered remote.

Other Guarantees

In certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. ~~Finally, the~~The Registrants may also provide indirect guarantees for the indebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling ~~$55~~$40 million at September 30, ~~2017. Payment~~2023. Payments under these guarantees isare considered remote.

Table of Contents

DTE Energy isCompany — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The Registrants are periodically required to obtain performance surety bonds in support of obligations to various governmental entities and other companies in connection with its operations. As of September 30, ~~2017,~~2023, DTE Energy had ~~approximately $57~~$325 million of performance bonds ~~outstanding.~~outstanding, including $151 million for DTE Electric. Performance bonds are not individually material, except for $130 million of bonds supporting Energy Trading operations. These bonds are meant to provide counterparties with additional assurance that Energy Trading will meet its contractual obligations for various commercial transactions. The terms of the bonds align with those of the underlying Energy Trading contracts and are estimated to be outstanding approximately 1 to 3 years. In the event that ~~such~~any performance bonds are called for nonperformance, ~~DTE Energy~~the Registrants would be obligated to reimburse the issuer of the performance bond. ~~DTE Energy is~~The Registrants are released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.

Labor Contracts

There are several bargaining units for DTE ~~Energy's~~Energy subsidiaries' approximately ~~4,800~~4,950 represented employees, including DTE Electric's approximately ~~2,600~~2,550 represented employees. ~~The majority~~This represents 49% and 57% of DTE Energy's and DTE Electric's total employees, respectively. Of these represented employees, less than 1% have contracts expiring within one year for DTE Energy. None of the represented employees ~~are under~~have contracts ~~that expire in 2020 and 2021.~~expiring within one year for DTE Electric.

Purchase Commitments

Utility capital expenditures and expenditures for non-utility businesses ~~and contributions to equity method investees~~ will be approximately ~~$2.5~~$4.2 billion and ~~$1.5~~$3.2 billion in ~~2017~~2023 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2023 annual capital expenditures.

Ludington Plant Contract Dispute

DTE Electric and Consumers Energy Company ("Consumers"), joint owners of the Ludington Hydroelectric Pumped Storage plant ("Ludington"), are parties to a 2010 engineering, procurement, and construction agreement with Toshiba America Energy Systems ("TAES"), under which TAES contracted to perform a major overhaul and upgrade of Ludington. The overhauled Ludington units are operational, but TAES' work has been defective and non-conforming. DTE Electric and Consumers have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. DTE Electric and Consumers have taken extensive efforts to resolve these ~~estimated 2017 expenditures~~issues with TAES, including a formal demand to TAES' parent, Toshiba Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations. In order to enforce the contract, DTE Electric and ~~contributions~~Consumers filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022.

In June 2022, TAES and Toshiba Corporation filed a motion to ~~equity method investees.~~dismiss the complaint, along with counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties' contract. During September 2022, the motion to dismiss the complaint was denied. DTE Electric believes the outstanding counterclaims are without merit, but would be liable for 49% of the damages if approved. In October 2022, the combined parties submitted a joint discovery plan to proceed with the litigation process and a potential trial during the second half of 2024. DTE Electric cannot predict the financial impact or outcome of this matter.

Refer to the Ludington Accounting Application section within Note 5 to the Consolidated Financial Statements, "Regulatory Matters," for additional information regarding costs to address TAES defective work and regulatory accounting treatment.

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Other Contingencies

The Registrants are involved in certain other legal, regulatory, administrative, and environmental proceedings before various courts, arbitration panels, and governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additional environmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters. The Registrants cannot predict the final disposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.

For a discussion of contingencies related to regulatory matters and derivatives, see Notes 5 and 8 to the Consolidated Financial Statements, "Regulatory ~~Matters,"~~Matters" and "Financial and Other Derivative Instruments," respectively.

~~DTE Energy Company — DTE Electric Company~~

~~Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)~~

NOTE 1213 — RETIREMENT BENEFITS AND TRUSTEED ASSETS

DTE Energy's subsidiary, DTE Energy Corporate Services, LLC, sponsors defined benefit pension plans and other postretirement benefit plans covering certain employees of the Registrants. Participants of all plans are solely DTE Energy and affiliate participants.

The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:


	Pension Benefits				Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Three Months Ended September 30,
Service cost	$	15	$	25	$	4	$	6
Interest cost	54		41		17		12
Expected return on plan assets	(89)		(87)		(28)		(32)
Amortization of:
Net actuarial loss	2		29		2		1
Prior service credit	(1)		—		(4)		(4)

Net periodic benefit cost (credit)	$	(19)	$	8	$	(9)	$	(17)


														Pension Benefits				Other Postretirement Benefits
	Pension Benefits						Other Postretirement Benefits							2023		2022		2023		2022
	2017			2016			2017			2016				(In millions)
Three Months Ended September 30,	(In millions)
Nine Months Ended September 30,													Nine Months Ended September 30,
Service cost	$	22		$	23		$	7		$	7		Service cost	$	43	$	72	$	13	$	20
Interest cost	53			55			18			20			Interest cost	161		124		49		36
Expected return on plan assets	(78		)	(77		)	(33		)	(33		)	Expected return on plan assets	(264)		(260)		(83)		(95)
Amortization of:													Amortization of:
Net actuarial loss	46			43			3			6			Net actuarial loss	5		86		7		3
Prior service cost (credit)	1			—			(3		)	(29		)
Prior service credit													Prior service credit	(2)		—		(14)		(14)
Settlements													Settlements	7		—		—		—
Net periodic benefit cost (credit)	$	44		$	44		$	(8	)	$	(29	)	Net periodic benefit cost (credit)	$	(50)	$	22	$	(28)	$	(50)

Pension Benefits Other Postretirement Benefits
2017 2016 2017 2016
Nine Months Ended September 30, (In millions)
Service cost $ 69
$ 69
$ 20
$ 20
Interest cost 160
164
55
60
Expected return on plan assets (233 ) (232 ) (98 ) (97 )
Amortization of:
Net actuarial loss 132
124
10
22
Prior service cost (credit) 1
—
(10 ) (88 )
Net periodic benefit cost (credit) $ 129
$ 125
$ (23 ) $ (83 )

~~The following tables detail the components of net periodic benefit costs (credits)~~DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified pension ~~benefits and~~plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is that assets contributed in multiemployer plans can be used to provide benefits for ~~DTE Electric:~~all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer.

Pension Benefits Other Postretirement Benefits
2017 2016 2017 2016
Three Months Ended September 30, (In millions)
Service cost $ 16
$ 18
$ 5
$ 5
Interest cost 40
42
14
15
Expected return on plan assets (56 ) (55 ) (23 ) (23 )
Amortization of:
Net actuarial loss 32
31
2
4
Prior service cost (credit) 1
—
(2 ) (22 )
Net periodic benefit cost (credit) $ 33
$ 36
$ (4 ) $ (21 )

Pension Benefits Other Postretirement Benefits
2017 2016 2017 2016
Nine Months Ended September 30, (In millions)
Service cost $ 53
$ 53
$ 15
$ 15
Interest cost 121
125
42
46
Expected return on plan assets (167 ) (165 ) (68 ) (68 )
Amortization of:
Net actuarial loss 94
88
6
15
Prior service cost (credit) 1
1
(7 ) (66 )
Net periodic benefit cost (credit) $ 102
$ 102
$ (12 ) $ (58 )

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position. For service costs recognized in earnings, these costs have historically been presented in Operation and maintenance in the Registrants' Consolidated Statements of Operations. For non-service costs recognized in earnings, these costs have historically been presented in Other (Income) and Deductions — Non-operating retirement benefits, net in DTE Energy's Consolidated Statements of Operations and Operation and maintenance in DTE Electric's Consolidated Statements of Operations.

In November 2022, DTE Electric received a rate order from the MPSC approving the deferral of qualified pension plan service and non-service costs that were previously being recognized in earnings. Therefore, the Registrants are recording these costs as Regulatory assets beginning in December 2022.

DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in regulatory assets, operation and maintenance expense, other income and deductions, and capital expenditures was a credit of $12 million and $28 million for the three and nine months ended September 30, 2023, respectively, and a cost of $9 million and $27 million for the three and nine months ended September 30, 2022, respectively. These amounts may include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following table details the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Service cost	$	3	$	5	$	10	$	15
Interest cost	12		10		37		28
Expected return on plan assets	(18)		(22)		(55)		(64)
Amortization of:
Net actuarial loss	—		2		—		4
Prior service credit	(3)		(4)		(10)		(10)
Net periodic benefit credit	$	(6)	$	(9)	$	(18)	$	(27)

Pension and Other Postretirement Contributions

~~During the first nine months of 2017,~~No contributions are currently expected for DTE ~~Energy made cash contributions of $220 million, including contributions from DTE Electric of $185 million, to its~~Energy's qualified pension ~~plans. At~~plans or postretirement benefit plans in 2023. Plans may be updated at the discretion of management and depending ~~upon~~on economic and financial market ~~conditions,~~conditions. DTE Energy ~~may make additional contributions~~anticipates a transfer of up to ~~$88~~$50 million ~~including additional contributions~~of qualified pension plan funds from DTE Gas to DTE Electric during the fourth quarter 2023 in exchange for cash consideration.

Table of ~~$85 million, to its pension plans in 2017.~~Contents

DTE Energy ~~does not anticipate making any contributions~~Company — DTE Electric Company

Combined Notes to ~~the other postretirement benefit plans in 2017.~~Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 1314 — SEGMENT AND RELATED INFORMATION

DTE Energy sets strategic goals, allocates resources, and evaluates performance based on the following structure:

Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately ~~2.2~~2.3 million residential, commercial, and industrial customers in southeastern Michigan.

Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.

~~Gas Storage and Pipelines~~ ~~consists of natural gas pipeline, gathering, and storage businesses.~~

~~Power and Industrial Projects~~ DTE Vantage is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy ~~and utility-type products and services~~solutions to industrial, commercial, and institutional ~~customers, produce reduced emissions fuel, and sell electricity from renewable energy projects.~~customers.

Energy Trading consists of energy marketing and trading operations.

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider. Such billing primarily consists of power sales, sale and transportation of natural gas, and renewable natural gas sales in the segments below, as well as charges from Electric to other segments for use of the shared capital assets of DTE Electric.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Electric	$	20	$	19	$	55	$	53
Gas	4		4		13		10
DTE Vantage	13		15		32		57
Energy Trading	20		39		65		78
Corporate and Other	—		—		—		—
	$	57	$	77	$	165	$	198

All inter-segment transactions and balances are eliminated in consolidation for DTE Energy. Centrally incurred costs such as labor and overheads are assigned directly to DTE Energy's business segments or allocated based on various cost drivers, depending on the nature of service provided.

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are also determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments:

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Electric $ 11
$ 15
$ 36
$ 32
Gas 1
5
6
8
Gas Storage and Pipelines 10
2
32
7
Power and Industrial Projects 138
178
462
476
Energy Trading 8
10
27
28
Corporate and Other 1
—
2
2
$ 169
$ 210
$ 565
$ 553

Table of Contents

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Financial data of DTE Energy's business segments follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Operating Revenues — Utility operations
Electric	$	1,623	$	1,844	$	4,324	$	4,896
Gas	227		230		1,245		1,358
Operating Revenues — Non-utility operations
Electric	3		3		10		11
DTE Vantage	199		227		572		626
Energy Trading	893		3,024		3,365		8,059
Corporate and Other	—		—		—		—
Reconciliation and Eliminations	(57)		(77)		(165)		(198)
Total	$	2,888	$	5,251	$	9,351	$	14,752


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric	$	268	$	363	$	547	$	750
Gas	(5)		(23)		190		179
DTE Vantage	56		26		109		68
Energy Trading	65		56		234		(80)
Corporate and Other	(52)		(35)		(102)		(99)


Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Utility operations
Electric $ 1,434
$ 1,608
$ 3,827
$ 3,976
Gas 152
160
929
911
Operating Revenues — Non-utility operations
Gas Storage and Pipelines 115
63
333
199
Power and Industrial Projects 537
524
1,592
1,414
Energy Trading 1,174
782
3,217
1,807
Corporate and Other 2
1
3
2
Reconciliation and Eliminations (169 ) (210 ) (565 ) (553 )
Total $ 3,245
$ 2,928
$ 9,336
$ 7,756

Table of Contents

Net Income (Loss) Attributable to DTE Energy by Segment:
Electric $ 219
$ 285
$ 463
$ 547
Gas (15 ) (4 ) 93
96
Gas Storage and Pipelines 36
28
121
93
Power and Industrial Projects 44
34
104
66
Energy Trading 1
(4 ) 97
(34 )
Corporate and Other (15 ) (1 ) (31 ) (31 )
Net Income Attributable to DTE Energy Company $ 270
$ 338
$ 847
$ 737

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

EXECUTIVE OVERVIEW

DTE Energy is a diversified energy company and is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy also operates ~~three~~two energy-related non-utility segments with operations throughout the United States.

The following table summarizes DTE Energy's financial results:


	Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016			2023		2022		2023		2022
	(In millions, except per share amounts)									(In millions, except per share amounts)
Net Income Attributable to DTE Energy Company	$	270	$	338	$	847	$	737	Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818
Diluted Earnings per Common Share	$	1.51	$	1.88	$	4.72	$	4.10	Diluted Earnings per Common Share	$	1.61	$	1.99	$	4.74	$	4.21

The decrease in Net Income inAttributable to DTE Energy Company for the ~~third quarter~~three months ended September 30, 2023 was ~~primarily~~ due to lower earnings in the Electric and Corporate and Other segments, partially offset by higher earnings in the ~~Power~~DTE Vantage, Gas, and ~~Industrial Projects and Gas Storage and Pipelines~~Energy Trading segments. The increase in Net Income inAttributable to DTE Energy Company for the nine-month period was primarily due to higher earnings in the Energy Trading, ~~Power~~DTE Vantage and ~~Industrial Projects, and~~ Gas ~~Storage and Pipelines~~ segments, partially offset by lower earnings in the Electric segment.

~~Please see detailed explanations of segment performance in the following "Results of Operations" section.~~

STRATEGY

DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and an attractive ~~dividend yield.~~dividend.

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

DTE Energy plans to reduce the carbon emissions of its electric utility operations by 32% by the end of 2023, 65% in 2028, 85% in 2032, and 90% by 2040 from 2005 carbon emissions levels. DTE Energy plans to end its use of coal-fired power plants in 2032 and is committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations.

To achieve the targeted 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.

For the gas utility, DTE Energy aims to ~~comply~~cut carbon emissions across the entire value chain. DTE Energy plans to reduce the carbon emissions from its gas utility operations by 65% by 2030 and 80% by 2040, and is committed to a goal of net zero emissions by 2050 from internal gas operations and gas suppliers. To achieve net zero, DTE Energy is working to source gas with ~~environmental requirements.~~ lower methane intensity, reduce emissions through its gas main renewal and pipeline integrity programs, and if necessary, use carbon offsets to address any remaining emissions. DTE Energy also aims to help DTE Gas customers reduce their emissions by approximately 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen and carbon capture and sequestration, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas.

Table of Contents

DTE Energy expects that ~~planned~~these initiatives at the electric and gas utilities will continue to provide significant opportunities for capital investments ~~will~~and result in earnings growth. DTE Energy is focused on executing its plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. DTE Energy ~~operates~~expects its goals for customer affordability to be aided by operational efficiencies and new opportunities resulting from the Inflation Reduction Act enacted in August 2022. Such opportunities include tax credits for renewable energy, nuclear generation, energy storage, and carbon capture and sequestration, which are expected to reduce the cost of owning related assets and reduce customer rate impacts from any future cost recoveries. DTE Energy's utilities operate in a constructive regulatory environment and ~~has~~have solid relationships with ~~its~~their regulators.

In May 2017, DTE Energy announced its plan to reduce carbon emissions. This goal will be attained by cutting carbon emissions 30% by the early 2020s, 45% by 2030, 75% by 2040, and more than 80% by 2050. To achieve this reduction, DTE Energy will transition away from coal-powered sources and incorporate more renewable energy, energy efficiency, demand response, and highly-efficient natural gas fueled power plants. DTE Energy has already begun the transition in the way it produces power through the continued retirement of its aging coal-fired plants. Refer to the "Capital Investments" section below for further discussion.

DTE Energy also has significant investments in non-utility ~~businesses.~~businesses and expects growth opportunities in its DTE Vantage segment. DTE Energy employs disciplined investment criteria when assessing growth opportunities that leverage its assets, skills, and expertise, and provides attractive returns and diversity in earnings and geography. Specifically, DTE Energy invests in targeted ~~energy~~ markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. ~~DTE Energy expects growth opportunities in the Gas Storage and Pipelines and Power and Industrial Projects segments.~~

A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced ~~short-term and long-term~~ financing. ~~Near-term growth~~Growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has an enterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related to commodity price changes, interest rates, and counterparty credit risk.

CAPITAL INVESTMENTS

DTE Energy's utility businesses will require significant capital investments to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with environmental regulations and ~~renewable energy requirements.~~achieve goals for carbon emission reductions. Capital plans may be regularly updated as these requirements and goals evolve and may be subject to regulatory approval.

DTE Electric's capital investments over the ~~2017-2021~~2023-2027 period are estimated at ~~$8.4~~$18 billion, comprised of ~~$3.2 billion for capital replacements and other projects, $3.2~~$9 billion for distribution infrastructure, ~~and $2.0~~$4 billion for ~~new generation.~~base infrastructure, and $5 billion for cleaner generation including renewables. DTE Electric has retired ~~four~~all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities and has announced plans to retire its remaining ~~thirteen~~six coal-fired generating units. ~~Seven of these coal-fired generating units will be retired through 2023 at~~DTE Electric plans to convert the ~~Trenton Channel, River Rouge, and St. Clair facilities. The remaining coal-fired generating~~two units at the Belle River ~~and~~facility from a base load coal plant to a natural gas peaking resource in 2025-2026. The four units at the Monroe ~~facilities~~facility are expected to be retired ~~by 2040. The~~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 ~~efficiency,~~waste reduction, demand response, battery storage, and natural gas fueled generation.

DTE Gas' capital investments over the 2023-2027 period are estimated at $3.6 billion, comprised of $2.0 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.

DTE Electric ~~plans to build a natural gas fueled combined cycle generation facility to provide approximately 1,100 megawatts of energy beginning in 2022. In the third quarter of 2017,~~and DTE Electric filed a CON with the MPSC seeking approval for the planned build of this natural gas plant. In September 2016, DTE Electric received an order from the MPSC in its amended Renewable Energy Plan approving two 150 megawatt wind projects expected to be constructed and in service between 2018 and 2020, and 25 megawatts of company-owned solar projects which will be constructed and in service between 2019 and 2020. DTE Electric constructed and placed in service 50 megawatts of solar generation in 2017. DTE Electric plansGas plan to seek regulatory approval for capital expenditures consistent with ~~prior ratemaking treatment.~~

DTE Gas' capital investments over the 2017-2021 period are estimated at $1.8 billion comprised of $1.0 billion for base infrastructure, $700 million for gas main renewal, meter move out, and pipeline integrity programs, and $100 million for expenditures related to the NEXUS Pipeline. DTE Gas plans to seek regulatory approval in general rate case filings for base infrastructure capital expenditures consistent with prior ratemaking treatment.

DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing ~~maintenance. Gas Storage and Pipelines' capital investments over~~maintenance in the ~~2017-2021 period are estimated at $2.2~~DTE Vantage segment, including approximately $1.0 billion to ~~$2.8~~$1.5 billion from 2023-2027 for ~~gathering~~renewable energy projects and ~~pipeline investments~~custom energy solutions, while expanding into carbon capture and expansions, including the NEXUS Pipeline. Power and Industrial Projects' capital investments over the 2017-2021 period are estimated at $600 million to $1.0 billion for investments in cogeneration and on-site energy projects.

sequestration.

ENVIRONMENTAL MATTERS

The Registrants are subject to extensive environmental ~~regulation.~~regulations, including those addressing climate change. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect to continue recovering environmental costs related to utility operations through rates charged to ~~customers.~~

~~DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO~~₂ and NOx. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce NOx, SO₂~~, mercury and other emissions. Additional rulemakings are expected over the next few years which could require additional controls for SO~~₂, NOx, and other hazardous air pollutants. To comply with these requirements, DTE Electric spent approximately $2.4 billion through 2016. DTE Electric does not anticipate additional capital expenditures through 2023.

The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. The carbon standards for new sources are not expected to have a material impact on DTE Electric, since DTE Electric has no plans to build new coal-fired generation and any potential new gas generation will be able to comply with the standards. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Additionally, federal agencies have been directed to conduct a review of all existing regulations that potentially burden the development and use of domestically produced energy resources. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA Clean Power Plan on existing sources at this time.

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives could also increase the economic viability of energy produced from renewable, natural gas fueled generation, and/or nuclear sources, energy ~~efficiency~~waste reduction initiatives, and the potential development of market-based trading of carbon instruments which could provide new business opportunities for DTE Energy's utility and non-utility segments. At the present time, it is not possible to quantify the financial impacts of these climate related regulatory initiatives on the Registrants or their customers.instruments.

For further discussion of environmental matters, see Note 1112 to the Consolidated Financial Statements, "Commitments and Contingencies."

Table of Contents

OUTLOOK

The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.

Looking forward, DTE Energy will focus on several areas that are expected to improve future performance:

•electric and gas customer satisfaction;

•electric distribution system reliability;

•new electric ~~generation;~~generation and storage;

•gas distribution system renewal;

•reducing carbon emissions at the electric and gas utilities;

•rate competitiveness and affordability;

•regulatory stability and investment recovery for the electric and gas utilities;

•strategic investments in growth projects at DTE Vantage;

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

•cost structure optimization across all business segments; and

•cash, capital, and liquidity to maintain or improve financial ~~strength; and~~

~~investments that integrate assets and leverage skills and expertise.~~strength.

DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic, financial, and risk criteria.

RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations includes financial information prepared in accordance with GAAP, as well as the non-GAAP financial measures, Utility Margin and Non-utility Margin, discussed below, which DTE Energy uses as measures of its operational performance. Generally, a non-GAAP financial measure is a numerical measure of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

~~DTE Energy uses Utility Margin and Non-utility Margin, non-GAAP financial measures, to assess its performance by reportable segment.~~

Utility Margin includes electric and gas Operating Revenues net of Fuel, purchased power, and gas expenses. The utilities’ fuel, purchased power, and natural gas supply are passed through to customers, and therefore, result in changes to the utilities’ revenues that are comparable to changes in such expenses. As such, DTE Energy believes Utility Margin provides a meaningful basis for evaluating the utilities’ operations across periods, as it excludes the revenue effect of fluctuations in these expenses.

The Non-utility Margin relates to our Power and Industrial Projects and Energy Trading segments. For the Power and Industrial Projects segment, Non-utility Margin primarily includes Operating Revenues net of Fuel, purchased power, and gas expenses. Operating Revenues include sales of refined coal to third parties and the affiliated Electric utility, metallurgical coke and related by-products, petroleum coke, renewable natural gas, and electricity, as well as rental income and revenues from utility-type consulting, management, and operational services. For the Energy Trading segment, Non-utility Margin includes revenue and realized and unrealized gains and losses from physical and financial power and gas marketing, optimization, and trading activities, net of Purchased power and gas related to these activities. DTE Energy evaluates its operating performance of these non-utility businesses using the measure of Operating Revenues net of Fuel, purchased power, and gas expenses.

Utility Margin and Non-utility Margin are not measures calculated in accordance with GAAP and should be viewed as a supplement to and not a substitute for the results of operations presented in accordance with GAAP. Utility Margin and Non-utility Margin do not intend to represent operating income, the most comparable GAAP measure, as an indicator of operating performance and are not necessarily comparable to similarly titled measures reported by other companies.

The following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information, described below, includes intercompany revenues, ~~and~~ expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric	$	268	$	363	$	547	$	750
Gas	(5)		(23)		190		179
DTE Vantage	56		26		109		68
Energy Trading	65		56		234		(80)
Corporate and Other	(52)		(35)		(102)		(99)


Net Income Attributable to DTE Energy Company	$	332	$	387	$	978	$	818

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric $ 219
$ 285
$ 463
$ 547
Gas (15 ) (4 ) 93
96
Gas Storage and Pipelines 36
28
121
93
Power and Industrial Projects 44
34
104
66
Energy Trading 1
(4 ) 97
(34 )
Corporate and Other (15 ) (1 ) (31 ) (31 )
Net Income Attributable to DTE Energy Company $ 270
$ 338
$ 847
$ 737

Table of Contents

ELECTRIC

The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction H(2) of Form 10-Q.

The Electric segment consists principally of DTE Electric. Electric results and outlook are discussed below:


										Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended September 30,				Nine Months Ended September 30,					2023		2022		2023		2022
	2017		2016		2017		2016			(In millions)
Operating Revenues									Operating Revenues
Utility operations									Utility operations	$	1,623	$	1,844	$	4,324	$	4,896
Non-utility operations									Non-utility operations	3		3		10		11
	(In millions)									1,626		1,847		4,334		4,907
Operating Revenues — Utility operations	$	1,434	$	1,608	$	3,827	$	3,976
Operating Expenses									Operating Expenses
Fuel and purchased power — utility	428		495		1,097		1,191		Fuel and purchased power — utility	438		593		1,113		1,543
Utility Margin	1,006		1,113		2,730		2,785
Operation and maintenance	349		363		1,068		1,019		Operation and maintenance	372		409		1,095		1,188
Depreciation and amortization	188		176		549		539		Depreciation and amortization	337		307		989		909
Taxes other than income	74		73		229		216		Taxes other than income	88		86		256		258

										1,235		1,395		3,453		3,898
Operating Income	395		501		884		1,011		Operating Income	391		452		881		1,009
Other (Income) and Deductions	58		60		172		162		Other (Income) and Deductions	104		84		279		248
Income Tax Expense	118		156		249		302		Income Tax Expense	19		5		55		11
Net Income Attributable to DTE Energy Company	$	219	$	285	$	463	$	547	Net Income Attributable to DTE Energy Company	$	268	$	363	$	547	$	750

See DTE Electric's Consolidated Statements of Operations for a complete view of its results. Differences between the Electric segment and DTE Electric's Consolidated Statements of Operations are primarily due to non-utility operations at DTE Sustainable Generation (some of which includes intra-segment activity that is eliminated in consolidation) and the classification of certain benefit costs. Refer to Note 13 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information.

~~Utility Margin~~Operating Revenues decreased ~~$107~~$221 million and ~~$55~~$573 million in the three and nine months ended September 30, ~~2017,~~2023, 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 decrease in both periods was due to the following:

~~The following table details~~


	Three Months		Nine Months
	(In millions)
Power Supply Cost Recovery	$	(89)	$	(321)
Weather	(105)		(222)
Base sales	(9)		(66)
Interconnection sales	(39)		(42)
COVID-19 voluntary refund amortization in 2022	(9)		(25)
Regulatory mechanism - RPS	(14)		11
Implementation of new rates	8		23
Rate Mix	26		50
Other regulatory mechanisms and other(a)	10		19
	$	(221)	$	(573)

______________________________

(a)Primarily includes regulatory mechanisms relating to DTE Securitization and EWR.

Table of Contents

Revenue results are impacted by changes in ~~various Utility Margin components relative~~sales volumes, which are summarized in the table below:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
	(In thousands of MWh)
DTE Electric Sales
Residential	4,292	4,803	11,070	12,393
Commercial	4,433	4,541	12,163	12,501
Industrial	2,202	2,271	6,477	6,464
Other	46	48	146	151
	10,973	11,663	29,856	31,509
Interconnection sales	2,314	1,766	5,229	3,551
Total DTE Electric Sales	13,287	13,429	35,085	35,060

DTE Electric Deliveries
Retail and wholesale	10,973	11,663	29,856	31,509
Electric retail access, including self-generators(a)	1,177	1,201	3,317	3,417
Total DTE Electric Sales and Deliveries	12,150	12,864	33,173	34,926

(a)Represents deliveries for self-generators that have purchased power from alternative energy suppliers to ~~the comparable prior period:~~supplement their power requirements.

Three Months Nine Months
(In millions)
Implementation of new rates $ —
$ 97
PSCR disallowance —
(13 )
Base sales (19 ) (14 )
Weather (84 ) (117 )
Regulatory mechanisms and other (4 ) (8 )
Decrease in Utility Margin $ (107 ) $ (55 )

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In thousands of MWh)
DTE Electric Sales
Residential 4,335
5,174
11,290
12,361
Commercial 4,801
5,085
13,208
13,427
Industrial 2,627
2,618
7,461
7,596
Other 48
57
188
193
11,811
12,934
32,147
33,577
Interconnection sales^(a)
318
456
2,330
1,992
Total DTE Electric Sales 12,129
13,390
34,477
35,569

DTE Electric Deliveries
Retail and wholesale 11,811
12,934
32,147
33,577
Electric retail access, including self-generators^(b)
1,249
1,241
3,636
3,731
Total DTE Electric Sales and Deliveries 13,060
14,175
35,783
37,308


~~(a)~~	~~Represents power that is not distributed by DTE Electric.~~


~~(b)~~	~~Represents deliveries for self-generators that have purchased power from alternative energy suppliers to supplement their power requirements.~~

~~Operation~~Fuel and ~~maintenance~~purchased power — utility expense decreased ~~$14~~$155 million and ~~increased $49~~$430 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The decrease in both periods was due to the following:


	Three Months
	(In millions)
Purchased power - lower market prices, partially offset by higher purchase volumes	$	(74)
Gas - lower prices, partially offset by higher consumption	(62)
Coal - lower consumption, partially offset by higher prices	(13)
Nuclear fuel - lower amortization due to 2023 outage	(4)
Other	(2)
	$	(155)


	Nine Months
	(In millions)
Purchased power - lower market prices and lower purchase volumes due to lower demand	$	(319)
Coal - lower consumption due to coal plant retirements, partially offset by higher prices	(84)
Gas - lower prices, partially offset by higher consumption primarily due to Blue Water Energy Center	(32)
Nuclear fuel - higher amortization due to refueling outage in 2022	17
Other	(12)
	$	(430)

Operation and maintenance expense decreased $37 million and $93 million in the three and nine months ended September 30, 2023, respectively. The decrease in the third quarter was primarily due to ~~decreased power~~lower corporate support costs of $20 million, lower RPS expense of $17 million, lower benefits and other compensation expense of $10 million, and lower plant generation ~~expenses~~expense of ~~$24~~$9 million, ~~related to outages,~~ partially offset by ~~increased~~higher distribution operations ~~expenses~~expense of ~~$7 million and increased expenses of $2 million related to the 2016 fire at a generation facility.~~ $20 million.

The ~~increase~~decrease in the nine-month period was primarily due to ~~increased~~lower plant generation expense of $103 million, lower benefits and other compensation expense of $39 million, lower corporate support costs of $35 million, lower legal expense of $15 million, and lower RPS expense of $12 million, partially offset by higher distribution operations expense of $101 million and higher EWR expense of $11 million. For both the third quarter and nine-month period, the lower plant generation expense was primarily due to lower outage costs and coal plant retirements, and the higher distribution operations expense was primarily due to higher storm restoration ~~expenses~~costs.

Table of ~~$24 million,~~Contents

Depreciation and amortization expense increased ~~distribution operations expenses of $7~~$30 million and $19 million related to the 2016 fire at a generation facility. DTE Electric expects the power plant generation expenses related to the 2016 fire at a generation facility to be partially reimbursed by insurance proceeds.

~~Depreciation and amortization~~ ~~expense increased $12 million and $10~~$80 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The increase in both periods was primarily due to a higher depreciable base.

Other (Income) and Deductions increased $20 million and $31 million in the three and nine months ended September 30, 2023, respectively. The increase in the third quarter was primarily due to ~~$15~~higher net interest expense of $18 million and higher non-operating retirement benefits expense of ~~increased expense from an increased depreciable base,~~$6 million, partially offset by ~~a decrease~~higher AFUDC equity of ~~$3 million in amortization of regulatory assets.~~$2 million. The increase in the nine-month period was primarily due to ~~$27~~higher net interest expense of $33 million and higher non-operating retirement benefits expense of ~~increased expenses from an increased depreciable base,~~$23 million, partially offset by a ~~decrease~~favorable change in investment earnings of ~~$10 million associated with the TRM and a decrease of $7 million in amortization of regulatory assets.~~

~~Other (Income) and Deductions~~ ~~decreased $2~~$18 million and higher AFUDC equity of $6 million.

Income Tax Expenseincreased ~~$10~~$14 million and $44 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~decrease~~increase in the third quarter was primarily due to ~~$2 million~~lower amortization of ~~contributions to not-for-profit organizations in 2016.~~the TCJA regulatory liability, partially offset by lower taxes resulting from lower earnings. The increase in the nine-month period was primarily due to lower ~~interest income~~amortization of ~~$8 million related to a sales~~the TCJA regulatory liability and ~~use~~lower production tax ~~settlement received in 2016 and higher interest expense of $10 million,~~credits, partially offset by ~~$5 million of higher investment~~lower taxes resulting from lower earnings and ~~$2 million~~tax benefits resulting from the settlement of ~~contributions to not-for-profit organizations in 2016.~~a state tax audit.

Outlook— DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric ~~expects to continue its efforts to improve productivity~~will maintain a strong focus on customers by increasing reliability and ~~decrease costs~~satisfaction while ~~improving customer satisfaction with consideration of~~keeping customer rate ~~affordability.~~increases affordable. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, ~~investment returns and changes in discount rate assumptions in benefit plans and health care costs, impact of 2016 Michigan energy legislation,~~ uncertainty of legislative or regulatory actions regarding climate change, and effects of energy ~~efficiency~~waste reduction programs.

DTE Electric filed a rate case with the MPSC on ~~April 19, 2017~~February 10, 2023 requesting an increase in base rates of ~~$231~~$622 million based on a projected twelve-month period ending ~~October 31, 2018.~~November 30, 2024, and an increase in return on equity from 9.9% to 10.25%. The requested increase in base rates is primarily due to anincreased investments in plant involving generation and the electric distribution system, as well as related increases to depreciation and property tax expenses. These investments will support DTE Energy's goals to reduce carbon emissions and improve power reliability. The requested increase in ~~net plant resulting~~base rates is also due to a projected sales decline from ~~infrastructure investments, environmental compliance,~~the level included in current rates and ~~reliability improvement projects. The rate filing also includes projected changes in sales, operation~~inflationary impacts on operating and maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5% on capital structure. On September 8, 2017, DTE Electric filed an application with the MPSC for a $125 million self-implemented base rate increase effective November 1, 2017.interest costs. A final MPSC order in this case is expected ~~by April 2018.~~in December 2023.

GAS

The Gas segment consists principally of DTE Gas. Gas results and outlook are discussed below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Operating Revenues — Utility operations	$	227	$	230	$	1,245	$	1,358

Operating Expenses
Cost of gas — utility	23		39		331		436
Operation and maintenance	115		130		366		405
Depreciation and amortization	51		47		153		140
Taxes other than income	23		21		82		76
Asset (gains) losses and impairments, net	—		—		(1)		—
	212		237		931		1,057
Operating Income (Loss)	15		(7)		314		301
Other (Income) and Deductions	23		22		64		65
Income Tax Expense (Benefit)	(3)		(6)		60		57
Net Income (Loss) Attributable to DTE Energy Company	$	(5)	$	(23)	$	190	$	179

Table of Contents

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Utility operations $ 152
$ 160
$ 929
$ 911
Cost of gas — utility 12
15
278
306
Utility Margin 140
145
651
605
Operation and maintenance 110
99
330
293
Depreciation and amortization 31
27
91
79
Taxes other than income 10
13
48
49
Operating Income (Loss) (11 ) 6
182
184
Other (Income) and Deductions 12
13
38
35
Income Tax Expense (Benefit) (8 ) (3 ) 51
53
Net Income (Loss) Attributable to DTE Energy Company $ (15 ) $ (4 ) $ 93
$ 96

Operating Revenues — Utility ~~Margin~~operations decreased $5$3 million and ~~increased $46~~$113 million in the three and nine months ended September 30, ~~2017,~~2023, 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:

~~The following table details~~


	Three Months		Nine Months
	(In millions)
Gas Cost Recovery	$	(16)	$	(105)
Weather	(2)		(64)
Voluntary refund	2		4
Regulatory mechanism - EWR	2		5
Base sales	1		8
Infrastructure recovery mechanism	10		29

Other	—		10
	$	(3)	$	(113)

Revenue results are impacted by changes in ~~various Utility Margin components relative to~~sales volumes, which are summarized in the ~~comparable prior period:~~table below:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
	(In Bcf)
Gas Markets
Gas sales	8	8	89	100
End-user transportation	40	33	129	124
	48	41	218	224
Intermediate transportation	121	125	401	404
Total Gas sales	169	166	619	628

Three Months Nine Months
(In millions)
Implementation of new rates $ 1
$ 70
Revenue decoupling mechanism —
6
Weather 2
(22 )
Other (8 ) (8 )
Increase (decrease) in Utility Margin $ (5 ) $ 46

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In Bcf)
Gas Markets
Gas sales 8
7
77
80
End-user transportation 34
38
119
136
42
45
196
216
Intermediate transportation 55
44
205
164
Total Gas sales 97
89
401
380

~~Operation and maintenance~~Cost of gas — utility expense ~~increased $11~~decreased $16 million and ~~$37~~$105 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~increase~~decrease in the third quarter was primarily due to ~~increased employee benefits expenses~~a lower cost of ~~$8 million and increased~~ gas ~~operations expenses~~ of $2$18 million. The ~~increase~~decrease in the nine-month period was primarily due to ~~increased employee benefits expenses~~lower sales volumes of ~~$24 million, increased corporate expenses of $8~~$55 million and ~~increased~~a lower cost of gas ~~operations expenses~~ of $5$50 million.

~~Depreciation~~Operation and ~~amortization~~ maintenanceexpense ~~increased $4~~decreased $15 million and ~~$12~~$39 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The decrease in the third quarter was primarily due to lower gas operations expense of $10 million and lower corporate support costs of $6 million. The decrease in the nine-month period was primarily due to lower gas operations expense of $29 million and lower corporate support costs of $16 million, partially offset by higher EWR expense of $3 million and higher legal expense of $2 million.

Depreciation and amortization expense increased $4 million and $13 million in the three and nine months ended September 30, 2023, respectively. The increase in both periods was primarily due to a higher depreciable base.

Taxes other than income expense increased ~~expense from an increased depreciable base~~$2 million and $6 million in the three and nine months ended September 30, 2023, respectively. The increase in both periods was primarily due to higher ~~depreciation rates.~~property taxes.

Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, and benefit plan design ~~changes, and investment returns and changes in discount rate assumptions in benefit plans and health care costs.~~changes. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability.

~~GAS STORAGE AND PIPELINES~~

Table of Contents

DTE VANTAGE

The ~~Gas Storage~~DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and ~~Pipelines segment consists of the non-utility~~pipeline-quality gas ~~pipelines~~ and ~~storage businesses. Gas Storage~~projects that deliver custom energy solutions to industrial, commercial, and ~~Pipelines~~institutional customers. DTE Vantage results and outlook are discussed below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Operating Revenues — Non-utility operations	$	199	$	227	$	572	$	626

Operating Expenses
Fuel, purchased power, and gas — non-utility	98		124		288		317
Operation and maintenance	50		64		171		194
Depreciation and amortization	14		13		39		39
Taxes other than income	2		3		7		8
Asset (gains) losses and impairments, net	(12)		1		(9)		(4)
	152		205		496		554
Operating Income	47		22		76		72
Other (Income) and Deductions	(7)		(9)		(25)		(10)
Income Taxes
Expense	15		8		28		20
Tax credits	(17)		(3)		(36)		(6)
	(2)		5		(8)		14


Net Income Attributable to DTE Energy Company	$	56	$	26	$	109	$	68

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Non-utility operations $ 115
$ 63
$ 333
$ 199
Cost of gas — Non-utility 8
—
23
—
Operation and maintenance 19
15
57
47
Depreciation and amortization 19
8
57
27
Taxes other than income 1
1
5
3
Asset (gains) losses and impairments, net 1
—
2
—
Operating Income 67
39
189
122
Other (Income) and Deductions 5
(9 ) (18 ) (28 )
Income Tax Expense 19
19
66
55
Net Income 43
29
141
95
Less: Net Income Attributable to Noncontrolling Interests 7
1
20
2
Net Income Attributable to DTE Energy Company $ 36
$ 28
$ 121
$ 93

Operating Revenues — Non-utility operations ~~increased $52~~decreased $28 million and ~~$134~~$54 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~increase~~decrease in both periods was ~~primarily~~ due to the ~~acquisition of AGS~~following:


	Three Months		Nine Months
	(In millions)
Lower demand and prices in the On-site business	$	(16)	$	(34)
Sales and prices in the Renewables business	2		(24)
Sale of project in the On-site business	(10)		(20)
Demand and prices in the Steel business	(5)		24


Other	1		—
	$	(28)	$	(54)

Fuel, purchased power, and ~~SGG and increased volumes from Susquehanna gathering.~~

~~Cost of~~ gas — ~~Non-utility~~ ~~increased $8~~non-utility expense decreased $26 million and $29 million in the three and nine months ended September 30, 2023, respectively. The decrease in both periods was due to the following:


	Three Months		Nine Months
	(In millions)
Lower demand and prices in the On-site business	$	(13)	$	(31)
Sale of project in the On-site business	(4)		(6)
Demand and prices in the Steel business	(12)		7


Other	3		1
	$	(26)	$	(29)

Table of Contents

Operation and maintenance expensedecreased $14 million and $23 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~increase~~decrease in ~~both periods~~the third quarter was primarily due to lower operating costs in the Renewables business of $6 million and lower operating costs in the On-site business of $6 million, which was primarily driven by ~~physical purchase~~a decrease of ~~gas from AGS customers for resale~~$3 million due to ~~optimize available transportation capacity.~~

~~Operation and maintenance~~ ~~expense and~~ ~~Depreciation and amortization~~ ~~expense~~ ~~increased~~the sale of a project. The decrease in the ~~three and nine months ended September 30, 2017, respectively. The increase in both periods~~nine-month period was primarily due to lower operating costs in the ~~acquisition~~Renewables business of ~~AGS~~$9 million and ~~SGG.~~

~~Other (Income) and Deductions~~ ~~decreased~~lower operating costs in the On-site business of $14 million, which was primarily driven by a decrease of $9 million to the sale of a project.

Asset (gains) losses and ~~$10~~impairments, net changed $13 million and $5 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~decrease~~change in ~~both periods~~the third quarter was primarily ~~driven by recognizing~~due to a ~~$16~~gain of $17 million ~~net loss on extinguishment~~resulting from a change in estimate of ~~debt within~~an asset retirement obligation in the ~~storage~~Steel business, partially offset by asset write-offs in other business units of $5 million. The change in the nine-month period was primarily due to the $17 million gain in the Steel business, partially offset by asset write-offs in other business units of $6 million. The net gain for the nine-month period was also partially offset by $5 million due to the settlement of contingent consideration relating to a 2017 acquisition in the Renewables business, which resulted in a loss of $2 million in 2023 compared to a gain of $3 million recorded in 2022.

Other (Income) and Deductions decreased $2 million and increased ~~AFUDC recorded on the NEXUS Pipeline.~~

~~Net Income Attributable to Noncontrolling Interests~~ ~~increased$6 million~~ ~~and $18~~$15 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The increase in ~~both periods~~the nine-month period was primarily due to ~~the acquisition of SGG.~~

~~See Note 4 to the Consolidated Financial Statements, "Acquisition," for discussion of the acquisition of AGS and SGG in October 2016.~~

~~Outlook —~~ The Susquehanna gathering system is being expanded with additional compression facilities and gathering lines as needed to accommodate shipper demand. DTE Energy believes its long-term agreement with Southwestern Energy Production Company and the quality of the natural gas reserves$11 million higher equity investment earnings in the ~~Marcellus region soundly positions Bluestone Pipeline~~Renewables business and ~~Susquehanna gathering system for future growth.~~

~~Progress continues on development activities on the NEXUS Pipeline,~~$4 million higher interest income associated with a transportation path to transport Appalachian Basin shale gas, including Utica and Marcellus shale gas, directly to consuming markets in northern Ohio, southeastern Michigan, and Dawn Ontario. DTE Energy owns a 50% partnership interestnew project in the NEXUS Pipeline, with an investment balance of $534 million at September 30, 2017. A FERC application was filed in the fourth quarter of 2015 and was approved on August 25, 2017. Construction is scheduled to commence in October 2017, with a third quarter 2018 in-service target date for the NEXUS Pipeline.Steel business.

The October 2016 acquisition of AGS and SGG provides a platform for midstream growth and access to further investment opportunities in the Appalachian basin, an additional connection to the NEXUS Pipeline which should drive incremental volumes on the NEXUS Pipeline, and a new set of producer relationships that may lead to more partnering opportunities.

~~In May 2017, DTE Energy filed a FERC application for approval of the Birdsboro Pipeline, a 14-mile lateral to serve a new power plant in Pennsylvania. DTE Energy is targeting a 2018 in-service date.~~

Gas Storage and Pipelines expects to maintain its steady growth by developing an asset portfolio with multiple growth platforms through investment in new projects and expansions. Gas Storage and Pipelines will continue to look for additional investment opportunities and other storage and pipeline projects at favorable prices.

~~POWER AND INDUSTRIAL PROJECTS~~

The Power and Industrial Projects segment is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, produce reduced emissions fuel, and sell electricity from renewable energy projects. Power and Industrial Projects results are discussed below:

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Non-utility operations $ 537
$ 524
$ 1,592
$ 1,414
Fuel, purchased power, and gas — non-utility 460
451
1,388
1,218
Non-utility Margin 77
73
204
196
Operation and maintenance 80
78
248
236
Depreciation and amortization 18
18
55
54
Taxes other than income 3
3
9
10
Asset (gains) losses and impairments, net 5
(1 ) 7
(1 )
Operating Loss (29 ) (25 ) (115 ) (103 )
Other (Income) and Deductions (21 ) (12 ) (60 ) (44 )
Income Taxes
Expense (Benefit) 2
1
(8 ) (11 )
Production Tax Credits (40 ) (34 ) (116 ) (85 )
(38 ) (33 ) (124 ) (96 )
Net Income 30
20
69
37
Less: Net Loss Attributable to Noncontrolling Interests (14 ) (14 ) (35 ) (29 )
Net Income Attributable to DTE Energy Company $ 44
$ 34
$ 104
$ 66

~~Operating Revenues~~Income Taxes — ~~Non-utility operations~~ Tax creditsincreased ~~$13~~$14 million and ~~$178~~$30 million in the three and nine months ended September 30, ~~2017, respectively. The increases are due to the following:~~

Three Months Nine Months
(In millions)
Lower coal prices offset by higher production associated with new projects in the REF business $ (17 ) $ 115
Higher sales due to improved conditions in the steel business 36
85
Lower production and one-time revenue recovery in third quarter 2016 in the renewables business (5 ) (16 )
Other (1 ) (6 )
$ 13
$ 178

~~Non-utility Margin~~ ~~increased $4 million and $8 million in the three and nine months ended September 30, 2017, respectively. The increases are due to the following:~~

Three Months Nine Months
(In millions)
Higher sales due to improved conditions in the steel business $ 11
$ 38
Lower sales primarily associated with expired contracts in the on-site business (3 ) (11 )
Lower production and one-time revenue recovery in third quarter 2016 in the renewables business (4 ) (13 )
Other —
(6 )
$ 4
$ 8

~~Operation and maintenance~~ ~~expense increased $2 million and $12 million in the three and nine months ended September 30, 2017,~~2023, respectively. The increase in the third quarter was primarily due to ~~higher maintenance~~investment tax credits of $11 million related to a new project in the renewables projects. The increase in the nine-month period was primarily due to $6 million of higher maintenance in the renewables projects and $5 million of higher spending due to new projects in the REF business.

~~Asset (gains) losses and impairments, net~~ decreased $6 million and $8 million in the three and nine months ended September 30, 2017, respectively. The decrease in both periods was primarily due to a $6 million impairment recorded in the petroleum coke business in 2017.

~~Other (Income) and Deductions~~ increased $9 million and $16 million in the three and nine months ended September 30, 2017, respectively. The increase in the third quarter was primarily due to a $6 million increase in equity earnings in the renewable business and a $4 million increase due to an insurance settlement in the renewableRenewables business. The increase in the nine-month period was primarily due to ~~a $6~~investment tax credits of $17 million increase in equity earnings in the renewable business, a $4 million increase due to an insurance settlement in the renewable business, a $3 million increase in equity earnings in the landfill gas business, and a $2 million increase due to an insurance settlement in the REF business.

~~Income Taxes — Production Tax Credits~~ ~~increased $6 million and $31 million in the three and nine months ended September 30, 2017, respectively. The increase in both periods was primarily due~~related to new projects in the ~~REF business.~~

~~Net Loss Attributable to Noncontrolling Interests~~ ~~increased $6~~Renewables business and $9 million for a new project in the ~~nine months ended September 30, 2017. The increase was due to higher production in the existing lease arrangements with investors at various REF facilities.~~On-site business.

Outlook — ~~Power and Industrial Projects has constructed and placed in service REF facilities at eleven sites including facilities located at eight third-party owned coal-fired power plants.~~ DTE Energy has sold membership interests in four of the facilities and entered into lease arrangements in three of the facilities. DTE Energy will continue to optimize these facilities by seeking investors or entering into lease arrangements for facilities operating at DTE Electric and other utility sites. DTE Energy is in the process of entering into a sublicense agreement with a third-party owned and operated REF facility.

DTE Energy expects sustained production levels of metallurgical coke and pulverized coal supplied to steel industry customers for 2018. The segment has four renewable power generation facilities in operation. On-site energy services will continue to be delivered in accordance with the terms of long-term contracts. In October 2017, a Power and Industrial Projects subsidiary and Ford Motor Company (Ford) entered into a 30-year agreement to build, own, and operate utility assets to supply utility services to Ford’s new Research & Engineering Campus located in Dearborn, Michigan. Simultaneously, DTE Electric and Ford entered into a 30-year agreement to supply steam to the campus using a combined heat and power facility owned by DTE Electric. Construction is scheduled to begin in the fourth quarter of 2017, with commercial operation expected to begin in late 2019. DTE Energy will continue to look for additional investment opportunities and other energy projects at favorable prices.

~~Power and Industrial Projects~~Vantage will continue to leverage its extensive energy-related operating experience and project management capability to develop additional renewable natural gas projects and other projects that will provide customer specific energy ~~projects~~solutions. DTE Vantage is also developing decarbonization opportunities relating to ~~serve energy intensive industrial customers.~~carbon capture and sequestration projects.

ENERGY TRADING

Energy Trading focuses on physical and financial power, ~~and~~ natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, environmental, and related services, which may include the management of associated storage and transportation contracts on the customers' behalf and the supply or purchase of ~~renewable energy credits~~environmental attributes to various customers. Energy Trading results and outlook are discussed below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Operating Revenues — Non-utility operations	$	893	$	3,024	$	3,365	$	8,059

Operating Expenses
Purchased power, gas, and other — non-utility	780		2,928		2,975		8,087
Operation and maintenance	23		16		62		51
Depreciation and amortization	2		2		4		4
Taxes other than income	—		1		4		6
	805		2,947		3,045		8,148
Operating Income (Loss)	88		77		320		(89)
Other (Income) and Deductions	1		3		8		18
Income Tax Expense (Benefit)	22		18		78		(27)
Net Income (Loss) Attributable to DTE Energy Company	$	65	$	56	$	234	$	(80)

Table of Contents

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Operating Revenues — Non-utility operations $ 1,174
$ 782
$ 3,217
$ 1,807
Purchased power and gas — non-utility 1,154
773
2,999
1,810
Non-utility Margin 20
9
218
(3 )
Operation and maintenance 15
14
50
46
Depreciation and amortization 1
1
3
2
Taxes other than income 1
1
4
2
Operating Income (Loss) 3
(7 ) 161
(53 )
Other (Income) and Deductions 1
—
2
3
Income Tax Expense (Benefit) 1
(3 ) 62
(22 )
Net Income (Loss) Attributable to DTE Energy Company $ 1
$ (4 ) $ 97
$ (34 )

Operating Revenues — Non-utility operations ~~increased$392~~decreased $2,131 million and ~~$1,410~~$4,694 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~increase in the third quarter was primarily due~~following tables detail changes relative to ~~higher volumes~~comparable prior periods:


	Three Months
	(In millions)
Gas structured and gas transportation strategies - ($2,025) primarily due to lower gas prices, ($84) settled financial hedges	$	(2,109)
Unrealized MTM - $21 gains compared to ($40) losses in the prior period	61
Other realized gain (loss)	(83)
	$	(2,131)


	Nine Months
	(In millions)
Gas structured and gas transportation strategies - ($4,651) primarily due to lower gas prices, ($100) settled financial hedges	$	(4,751)
Unrealized MTM - $105 gains compared to ($143) losses in the prior period	248
Other realized gain (loss)	(191)
	$	(4,694)

Purchased power, gas, ~~structured strategy. The increase in the nine-month period was primarily due to higher gas prices~~ and ~~higher volumes in the gas structured strategy.~~

~~Non-utility Margin~~ ~~increased $11~~other — non-utility expense decreased $2,148 million and ~~$221~~$5,112 million in the three and nine months ended September 30, ~~2017,~~2023, respectively. The ~~increases were due~~following tables detail changes relative to ~~the unrealized and realized margins presented in the following tables:~~comparable prior periods:

Three Months
(In millions)
Unrealized Margins^(a)

Favorable results, primarily in gas structured and power trading strategies^(b)
$ 53
Unfavorable results, primarily in gas trading and gas transportation strategies (15 )
$ 38
Realized Margins^(a)

Unfavorable results, primarily in power full requirements, environmental trading, power trading, and gas storage strategies^(c)
$ (39 )
Favorable results, primarily in the gas trading strategy 12
$ (27 )
Increase in Non-utility Margin $ 11


~~(a)~~	~~Natural~~Three Months
	(In millions)
Gas structured and gas ~~structured transactions typically involve a physical purchase or sale of natural~~transportation strategies - primarily lower gas prices	$	(2,085)
Unrealized MTM - ($36) gains compared to ($107) gains in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.prior period	71
Other realized (gain) loss	(134)
	$	(2,148)


~~(b)~~			~~Amount includes $39 million of timing related gains related to~~Nine Months
			(In millions)
Gas structured and gas transportation strategies ~~which will reverse in future periods as the underlying contracts settle.~~- primarily lower gas prices

$	(4,743)
~~(c)~~Unrealized MTM - ($119) gains compared to ($7) gains in the prior period			~~Amount includes $2 million of timing related gains related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.~~

Nine Months
(In millions)
Unrealized Margins^(a)

Favorable results, primarily in gas structured, gas full requirements, and environmental trading strategies^(b)
$ 158
Unfavorable results, primarily in gas trading and power full requirements strategies (15 )
$ 143
Realized Margins^(a)

Favorable results, primarily in gas structured, gas storage, and gas trading strategies^(c)
$ 94
Unfavorable results, primarily in power full requirements and power trading strategies (16 )
$ 78
Increase in Non-utility Margin $ 221

(112)
~~(a)~~Other realized (gain) loss			Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.

(257)
~~(b)~~			~~Amount includes $152 million of timing related gains related to gas strategies which will reverse in future periods as the underlying contracts settle.~~$

(5,112)
~~(c)~~	~~Amount includes $89 million of timing related losses related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.~~

Operation and maintenance expense increased $7 million and $11 million in the three and nine months ended September 30, 2023, respectively. The increase in both periods was primarily due to higher compensation costs.

Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.

Operating Income (Loss) increased $11 million for the three months ended September 30, 2023, which includes a $75 million unfavorable change in timing-related gains primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle. The increase also includes a $19 million favorable change in timing-related losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled.

Operating Income (Loss) increased $409 million for the nine months ended September 30, 2023, which includes a $391 million favorable change in timing-related gains and losses primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle. The increase also includes a $17 million favorable change in timing-related losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled.

Table of Contents

Other (Income) and Deductions decreased $2 million and $10 million in the three and nine months ended September 30, 2023, respectively. The decrease in the nine-month period was primarily due to lower contributions to not-for-profit organizations.

Outlook — In the near-term, Energy Trading expects market conditions to remain ~~challenging, and the~~challenging. The profitability of this segment may be impacted by the volatility in commodity prices and the uncertainty of impacts associated with ~~financial reform,~~ regulatory changes, and changes in operating rules of Regional Transmission Organizations. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments, ~~and~~ physical power and natural gas contracts, and certain environmental contracts are deemed ~~derivatives,~~derivatives; whereas, natural gas and environmental inventory, contracts for pipeline transportation, ~~renewable energy credits,~~storage assets, and ~~storage assets~~some environmental contracts are not derivatives. As a result, Energy Trading will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.

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.

CORPORATE AND OTHER

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds ~~energy-related investments.~~certain investments, including funds supporting regional development and economic growth. The net ~~losses~~loss of ~~$15~~$52 million and ~~$31~~$102 million infor the three and nine months ended September 30, ~~2017, represent~~2023, respectively, represents an increase of ~~$14~~$17 million and ~~no change~~$3 million from the net ~~losses~~loss of $1$35 million and ~~$31~~$99 million in the comparable ~~2016~~2022 periods. The increase in the third quarter was primarily due to higher net interest expense, higher state income taxes, and effective income tax rate adjustments. ~~For~~The increase in the nine-month period ~~decreases~~was primarily due to higher net interest expense, ~~and~~partially offset by effective income tax rate adjustments, ~~were offset by excess tax benefits on stock-based compensation recognized in accordance with ASU 2016-09,~~ ~~Improvements to Employee Share-Based Payment Accounting, which was adopted effective July 1, 2016.~~lower equity investment losses, and lower corporate overhead costs.

CAPITAL RESOURCES AND LIQUIDITY

Cash Requirements

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 ~~2017~~2023 will be approximately ~~$1.9~~$3.2 billion. DTE Energy anticipates base level utility capital ~~investments;~~investments, including environmental, renewable, and energy ~~optimization expenditures;~~waste reduction expenditures, and expenditures for non-utility ~~businesses; and contributions to equity method investees in 2017~~businesses of approximately ~~$2.5 billion.~~$4.2 billion in 2023. 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.

Refer below for analysis of cash flows relating to operating, investing, and financing activities, which reflect DTE Energy's change in financial condition. Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows, as applicable.


	Nine Months Ended September 30,
	2023		2022
	(in millions)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	$	43	$	35
Net cash from operating activities	2,375		1,412
Net cash used for investing activities	(2,941)		(2,453)
Net cash from financing activities	589		1,057
Net Increase in Cash, Cash Equivalents, and Restricted Cash	23		16
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	66	$	51

Nine Months Ended September 30,
2017 2016
Cash and Cash Equivalents (In millions)
Cash Flow From (Used For)
Operating Activities
Net Income $ 832
$ 710
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization 756
702
Nuclear fuel amortization 39
44
Allowance for equity funds used during construction (17 ) (15 )
Deferred income taxes 261
244
Asset (gains) losses and impairments, net 5
—
Working capital and other (326 ) 82
Net cash from operating activities 1,550
1,767
Investing Activities
Plant and equipment expenditures — utility (1,439 ) (1,267 )
Plant and equipment expenditures — non-utility (133 ) (75 )
Contributions to equity method investees (194 ) (199 )
Other (38 ) 38
Net cash used for investing activities (1,804 ) (1,503 )
Financing Activities
Issuance of long-term debt, net of issuance costs 1,010
646
Redemption of long-term debt (385 ) (322 )
Repurchase of long-term debt —
(59 )
Short-term borrowings, net 160
(89 )
Repurchase of common stock (51 ) (33 )
Dividends on common stock and other (509 ) (378 )
Net cash from (used for) financing activities 225
(235 )
Net Increase (Decrease) in Cash and Cash Equivalents $ (29 ) $ 29

Table of Contents

Cash from Operating Activities

A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.

~~Cash~~Net cash from operations ~~decreased~~increased by ~~$217~~$963 million in ~~the nine months ended September 30, 2017 compared~~2023. The increase was primarily due to ~~the nine months ended September 30, 2016. The decrease~~increases in ~~operating cash flows reflects a decrease to working capital adjustments, partially offset by an increase to~~ Net Income, Depreciation and amortization, Deferred income taxes, and ~~Depreciation~~cash from working capital items.

The change in working capital items in 2023 was primarily due to increases in cash related to Accounts receivable and ~~amortization.~~Regulatory assets and liabilities, partially offset by decreases in cash related to Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities.

Cash used for Investing Activities

Cash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant and equipment ~~expenditures.~~expenditures and acquisitions. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets.

Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy ~~requirements.~~goals.

Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth. DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria. For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings.

Net cash used for investing activities increased by ~~$301~~$488 million in ~~2017~~2023 primarily due to ~~increased capital~~an increase in utility plant and equipment expenditures and ~~the two acquisitions of landfill gas facilities, which are presented~~an increase in ~~Investing Activities — Other.~~cash used for Notes receivable.

Cash from ~~(used for)~~ Financing Activities

DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.

DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy ~~continually evaluates its leverage target, which is currently 50% to 53%,~~targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating.

Net cash from financing activities ~~increased~~decreased by ~~$460~~$468 million in ~~2017~~2023 primarily due to ~~an increase~~decreases in ~~Issuance~~cash related to Redemption of long-term debt and Short-term borrowings, net, partially offset by ~~an increase~~increases in ~~Redemption~~cash related to the Issuance of long-term debt, ~~Dividends on common stock,~~net of issuance costs and Repurchase of common stock.

Outlook

Sources of Cash

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 to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with new and existing state and federal regulations that will result in additional environmental and renewable energy investments 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 ~~primarily~~ in the ~~Gas Storage~~DTE Vantage segment, primarily related to renewable energy and ~~Pipelines~~custom energy solutions, while expanding into carbon capture and ~~Power~~sequestration. DTE Vantage expects enhanced growth opportunities in decarbonization as a result of the Inflation Reduction Act enacted in August 2022, including tax credits for renewable natural gas and ~~Industrial Projects segments.~~carbon capture projects.

Table of Contents

DTE ~~Energy~~Energy's utilities may be impacted by the timing of collection or refund of various recovery and tracking mechanisms, as a result of timing of MPSC orders. Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects.

DTE Energy has approximately $110 million in long-term debt, including capital leases, maturing in the next twelve months. The repayment of the debt is expected to be paid through internally generated funds or the issuance of long-term debt.

~~DTE Energy has approximately $1.4 billion of available liquidity at September 30, 2017, consisting of cash and amounts available under unsecured revolving credit agreements.~~

At the discretion of management and depending upon economic and financial market conditions, DTE Energy ~~may make additional contributions~~expects to issue up to ~~$88~~$100 million ~~including~~of equity in 2023. DTE Energy anticipates these discretionary equity issuances to be made through contributions ~~from DTE Electric of $85 million,~~ to ~~its pension plans in 2017.~~the dividend reinvestment plan and/or employee benefit plans.

Over the long-term, DTE Energy does not ~~anticipate making~~have any ~~contributions~~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 ~~other postretirement benefit plans~~issuance of debt and is monitoring the impact of rising interest rates on the cost of borrowing.

Uses of Cash

DTE Energy has $594 million in ~~2017.~~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.

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 2023. 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.

Various subsidiaries and an equity ~~investee~~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 ~~coal)~~environmental) and the provisions and maturities of the underlying transactions. As of September 30, ~~2017,~~2023, 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 $437 million.

Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements:


Note						Title
1						Organization and Basis of Presentation
2						Significant Accounting Policies
5						Regulatory Matters
8						Financial and Other Derivative Instruments
9						Long-Term Debt
10						Short-Term Credit Arrangements and Borrowings
12						Commitments and Contingencies
13						Retirement Benefits and Trusteed Assets

Also refer to the "Capital Investments" section above regarding DTE Energy's capital strategy and estimated spend over the next five years. For additional information regarding DTE Energy's future cash obligations, including scheduled debt maturities and interest payments, minimum lease payments, and future purchase commitments, refer to DTE Energy's Annual Report on Form 10-K for the year ended December 31, 2022.

Table of Contents

Liquidity

DTE Energy has approximately ~~$470 million.~~$1.8 billion of available liquidity at September 30, 2023, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.

DTE Energy believes it will have sufficient operating flexibility, cash resources, and funding sources to maintain adequate amounts of liquidity and to meet future operating cash and capital expenditure needs. However, virtually all of DTE Energy's businesses are capital intensive, or require access to capital, and the inability to access adequate capital could adversely impact earnings and cash flows.

See Notes 5, 9, 10, 11, and 12 to the Consolidated Financial Statements, "Regulatory Matters," "Long-Term Debt," "Short-Term Credit Arrangements and Borrowings," "Commitments and Contingencies," and "Retirement Benefits and Trusteed Assets," respectively.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

FAIR VALUE

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, ~~oil,~~some environmental contracts, and certain ~~coal~~ 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, ~~renewable energy credits,~~storage assets, and ~~storage assets.~~some environmental contracts. See Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and ~~renewable energy credits~~some environmental contracts which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the related physical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.

The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).

The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 7 to the Consolidated Financial Statements, "Fair Value."

The following table provides details on changes in DTE Energy's MTM net asset (or liability) position:


	DTE Energy
	(In millions)
MTM at December 31, 2022	$	(224)
Reclassified to realized upon settlement	(14)
Changes in fair value recorded to income	234
Amounts recorded to unrealized income	220
Changes in fair value recorded in Regulatory liabilities	3
Amounts recorded in other comprehensive income, pre-tax	22
Change in collateral	(11)
MTM at September 30, 2023	$	10

Nine Months Ended
September 30, 2017
(In millions)
MTM at December 31, 2016 $ (86 )
Reclassified to realized upon settlement (34 )
Changes in fair value recorded to income 156
Amounts recorded to unrealized income 122
Changes in fair value recorded in regulatory liabilities 15
Change in collateral (3 )
MTM at September 30, 2017 $ 48

Table of Contents

The table below shows the maturity of DTE Energy's MTM positions. The positions from ~~2020~~2026 and beyond principally represent longer tenor gas structured transactions:


Source of Fair Value	2023		2024		2025		2026 and Beyond		Total Fair Value
	(In millions)
Level 1	$	—	$	11	$	7	$	(2)	$	16
Level 2	13		(1)		—		(17)		(5)
Level 3	5		37		4		(59)		(13)
MTM before collateral adjustments	$	18	$	47	$	11	$	(78)	(2)
Collateral adjustments									12
MTM at September 30, 2023									$	10


Michigan						38-3217752
(State or other jurisdiction of incorporation or organization)						(I.R.S Employer Identification No.)


Michigan						38-0478650
(State or other jurisdiction of incorporation or organization)						(I.R.S Employer Identification No.)


				Page
			Definitions	1
			Filing Format	3
			Forward-Looking Statements	3
PART I - FINANCIAL INFORMATION
Item 1.			Financial Statements
			DTE Energy Consolidated Financial Statements (Unaudited)	5


				~~Page~~
			~~Definitions~~	1
			~~Filing Format~~	3
			~~Forward-Looking Statements~~	3
~~PART I - FINANCIAL INFORMATION~~
~~Item 1.~~	~~Financial Statements~~
	~~DTE Energy Consolidated Financial Statements (Unaudited)~~	5
	DTE Electric Consolidated Financial Statements (Unaudited)	11





			Combined Notes to Consolidated Financial Statements (Unaudited)	17
			Note 1 — Organization and Basis of Presentation	17
			Note 2 — Significant Accounting Policies	20
			Note 3 — New Accounting Pronouncements	2124
			Note 4 — ~~Acquisition~~Revenue	2225
			Note 5 — Regulatory Matters	2427
			Note 6 — Earnings Per Share	2529
			Note 7 ��— Fair Value	2630
			Note 8 — Financial and Other Derivative Instruments	3337
			Note 9 — Long-Term Debt	3843
			Note 10 — Short-Term Credit Arrangements and Borrowings	3844
			Note 11 — Leases	45
			Note 12 — Commitments and Contingencies	3946
			Note 1213 — Retirement Benefits and Trusteed Assets	4451
			Note 1314 — Segment and Related Information	4553



Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations	4655
Item 3.			Quantitative and Qualitative Disclosures About Market Risk	6169
Item 4.			Controls and Procedures	6472
PART II - OTHER INFORMATION
Item 1.			Legal Proceedings	6573
Item 1A.			Risk Factors	6573
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds	6573
Item 5.			Insider Trading Arrangements and Policies	73
Item 6.			Exhibits	6674
			Signatures	6775



~~AFUDC~~
AFUDC			Allowance for Funds Used During Construction

~~AGS~~ASU		Appalachia Gathering System is a midstream natural gas asset located in Pennsylvania and West Virginia. DTE Energy purchased 100% of AGS in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.

~~ANPR~~	~~Advanced Notice of Proposed Rulemaking~~

~~ASU~~	Accounting Standards Update issued by the FASB

~~CCR~~

CAD			Canadian Dollar (C$)

CARB			California Air Resources Board that administers California's Low Carbon Fuel Standard

Carbon emissions			Emissions of carbon containing compounds, including carbon dioxide and methane, that are identified as greenhouse gases

CCR			Coal Combustion Residuals

CFTC			U.S. Commodity Futures Trading Commission

~~CON~~COVID-19		~~Certificate~~	Coronavirus disease of ~~Necessity~~2019

DTE Electric			DTE Electric Company ~~(a direct~~(an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies

DTE Energy			DTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas, and numerous non-utility subsidiaries

DTE Gas			DTE Gas Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies

~~EGU~~DTE Securitization			DTE Electric ~~Generating Unit~~Securitization Funding I, LLC, a special purpose entity wholly-owned by DTE Electric. The entity was created to issue securitization bonds for certain qualified costs authorized by the MPSC and to recover debt service costs from DTE Electric customers

~~ELG~~DTE Sustainable Generation			DTE Sustainable Generation Holdings, LLC (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies



EGLE			Michigan Department of Environment, Great Lakes, and Energy, formerly known as Michigan Department of Environmental Quality



ELG			Effluent Limitations Guidelines

EPA			U.S. Environmental Protection Agency

Equity units			DTE Energy's ~~2016 Equity Units~~2019 equity units issued in ~~October 2016,~~November 2019, which were used to finance the ~~October 1, 2016~~former Gas Storage and Pipelines segment acquisition on December 4, 2019

~~FASB~~EWR			Energy Waste Reduction program, which includes a mechanism authorized by the MPSC allowing DTE Electric and DTE Gas to recover through rates certain costs relating to energy waste reduction

FASB			Financial Accounting Standards Board

FERC			Federal Energy Regulatory Commission

~~FOV~~FGD			Flue Gas Desulfurization

FOV			Finding of Violation

FTRs			Financial Transmission Rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission ~~grid.~~grid

GCR			A Gas Cost Recovery mechanism authorized by the MPSC that allows DTE Gas to recover through rates its natural gas ~~costs.~~costs

GHGs			Greenhouse gases

~~MDEQ~~		~~Michigan Department of Environmental Quality~~
Interconnection sales			Sales of power by DTE Electric into the energy market through MISO (Midcontinent Independent System Operation, Inc.), generally resulting from excess generation compared to customer demand
~~MGP~~
MGP			Manufactured Gas Plant

~~MISO~~MPSC		~~Midcontinent Independent System Operator, Inc.~~

~~MPSC~~	Michigan Public Service Commission

MTM			Mark-to-market


NAV			Net Asset Value

~~NEXUS~~Net zero		~~NEXUS~~	Goal for DTE Energy's utility operations and gas suppliers at DTE Gas ~~Transmission, LLC, a joint venture in which DTE Energy own a 50% partnership interest.~~that any carbon emissions put into the atmosphere will be balanced by those taken out of the atmosphere. Achieving this goal will include collective efforts to reduce carbon emissions and actions to offset any remaining emissions. Progress towards net zero goals is estimated and methodologies and calculations may vary from those of other utility businesses with similar targets

Non-utility			An entity that is not a public utility. Its conditions of service, prices of goods and services, and other operating related matters are not directly regulated by the ~~MPSC.~~MPSC

~~NOV~~	~~Notice of Violation~~

NO_X			Nitrogen Oxides

~~NRC~~NPDES			National Pollutant Discharge Elimination System

NRC			U.S. Nuclear Regulatory Commission



~~Production tax credits~~		Tax credits as authorized under Sections 45K and 45 of the Internal Revenue Code that are designed to stimulate investment in and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by the Internal Revenue Service.

PSCR			A Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related, and purchased power ~~costs.~~costs

~~REF~~REC			Renewable Energy Credit

REF			Reduced Emissions Fuel

Registrants			DTE Energy and DTE Electric

Retail access			Michigan legislation provided customers the option of access to alternative suppliers for electricity and natural ~~gas.~~gas

~~SGG~~RPS		~~Stonewall Gas Gathering is~~	Renewable Portfolio Standard program, which includes a ~~midstream natural gas asset located in West Virginia. DTE Energy purchased 55% of SGG in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.~~

SO₂	~~Sulfur Dioxide~~

~~TRM~~	~~A Transitional Reconciliation Mechanism~~mechanism authorized by the MPSC ~~that allows~~allowing DTE Electric to recover through rates ~~the deferred net incremental revenue requirement associated with the transition of City of Detroit's Public Lighting Department customers to DTE Electric's distribution system.~~its renewable energy costs

~~VIE~~	~~Variable Interest Entity~~






SO2						Sulfur Dioxide

SOFR						Secured Overnight Financing Rate

TCJA						Tax Cuts and Jobs Act of 2017, which reduced the corporate Federal income tax rate from 35% to 21%

Topic 606						FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended





VIE						Variable Interest Entity


Units of Measurement

Bcf		Billion cubic feet of natural gas

BTU	~~Heat~~	British thermal unit, heat value (energy content) of fuel

~~MMBtu~~



MMBtu		One million BTU

~~MWh~~	~~Megawatthour~~

MWh		Megawatt-hour of electricity



				Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income
	Common Stock
	Shares	Amount									Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2016	138,632	$	1,386	$	2,820	$	1,787		$	2	$	5,995
Net Income	—	—		—		463			—		463
Dividends declared on common stock	—	—		—		(324		)	—		(324		)
Balance, September 30, 2017	138,632	$	1,386	$	2,820	$	1,926		$	2	$	6,134



	September 30, 2017						December 31, 2016
	SGG^(a)		Other		Total		SGG^(a)		Other		Total
	(In millions)
ASSETS
Cash and cash equivalents	$	31	$	13	$	44	$	36	$	27	$	63
Restricted cash	—		8		8		—		7		7
Accounts receivable	11		30		41		8		34		42
Inventories	3		84		87		3		112		115
Property, plant, and equipment, net	397		70		467		398		76		474
Goodwill	25		—		25		17		—		17
Intangible assets	576		—		576		586		—		586
Other current and long-term assets	1		—		1		1		1		2
	$	1,044	$	205	$	1,249	$	1,049	$	257	$	1,306

LIABILITIES
Accounts payable and accrued current liabilities	$	26	$	29	$	55	$	19	$	32	$	51
Current portion long-term debt, including capital leases	—		3		3		—		5		5
Mortgage bonds, notes, and other	—		2		2		—		5		5
Other current and long-term liabilities	1		15		16		2		15		17
	$	27	$	49	$	76	$	21	$	57	$	78



	Effective Tax Rate
	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
DTE Energy	22	%	25	%	22	%	25	%
DTE Electric	35	%	35	%	35	%	36	%



	(In millions)
Assets
Cash	$	83
Accounts receivable	24
Inventory	6
Property, plant, and equipment, net	719
Goodwill	275
Customer relationship intangibles	770
Other current assets	1
	$	1,878
Liabilities
Accounts payable	$	19
Other current liabilities	11
Long-term debt	204
Other long-term liabilities	20
	$	254
Less: Noncontrolling interest	392
Total cash consideration	$	1,232


~~(a)~~	The 2016 equity units are potentially dilutive securities but were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2017, as the dilutive stock price threshold was not met.


~~(a)~~	~~Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.~~


~~(c)~~	At September 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $25 million. These commitments will be funded by existing nuclear decommissioning trust funds.


~~(d)~~	~~Excludes cash surrender value of life insurance investments.~~


~~(a)~~	At September 30, 2017 and December 31, 2016, available-for-sale securities of $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	Natural Gas		Electricity		Other		Total		Natural Gas		Electricity		Other		Total
	(In millions)
Net Assets (Liabilities) as of June 30	$	(54)	$	(4)	$	16	$	(42)	$	(362)	$	(96)	$	30	$	(428)
Transfers into Level 3 from Level 2	—		—		—		—		(3)		—		—		(3)
Transfers from Level 3 into Level 2	—		—		—		—		—		—		(5)		(5)
Total gains (losses)
Included in earnings(a)	1		79		(1)		79		(32)		40		(1)		7
Recorded in Regulatory liabilities	—		—		(2)		(2)		—		—		(4)		(4)
Purchases, issuances, and settlements


Settlements	25		(71)		(2)		(48)		84		(20)		(5)		59
Net Assets (Liabilities) as of September 30	$	(28)	$	4	$	11	$	(13)	$	(313)	$	(76)	$	15	$	(374)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30(a)	$	4	$	26	$	(6)	$	24	$	29	$	37	$	(5)	$	61
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30	$	—	$	—	$	1	$	1	$	—	$	—	$	(1)	$	(1)



	Three Months Ended September 30, 2017												Three Months Ended September 30, 2016
	Natural Gas			Electricity			Other			Total			Natural Gas			Electricity			Other			Total
	(In millions)
Net Assets (Liabilities) as of June 30	$	(17	)	$	6		$	5		$	(6	)	$	(62	)	$	(6	)	$	(1	)	$	(69	)
Transfers into Level 3 from Level 2	—			—			—			—			—			—			—			—
Transfers from Level 3 into Level 2	—			—			—			—			(1		)	—			—			(1		)
Total gains (losses)
Included in earnings	(8		)	33			1			26			(65		)	24			—			(41		)
Recorded in Regulatory liabilities	—			—			2			2			—			—			2			2
Purchases, issuances, and settlements
Settlements	23			(32		)	(6		)	(15		)	28			(24		)	(2		)	2
Net Assets (Liabilities) as of September 30	$	(2	)	$	7		$	2		$	7		$	(100	)	$	(6	)	$	(1	)	$	(107	)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$	(8	)	$	18		$	1		$	11		$	(50	)	$	6		$	—		$	(44	)



	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	Natural Gas		Electricity		Other		Total		Natural Gas		Electricity		Other		Total
	(In millions)
Net Assets (Liabilities) as of December 31	$	(255)	$	(33)	$	11	$	(277)	$	(179)	$	(45)	$	9	$	(215)

Transfers from Level 3 into Level 2	—		—		—		—		5		—				5
Total gains (losses)
Included in earnings(a)	163		109		1		273		(382)		22		1		(359)
Recorded in Regulatory liabilities	—		—		3		3		—		—		20		20
Purchases, issuances, and settlements


Settlements	64		(72)		(4)		(12)		243		(53)		(15)		175
Net Assets (Liabilities) as of September 30	$	(28)	$	4	$	11	$	(13)	$	(313)	$	(76)	$	15	$	(374)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30a)	$	94	$	94	$	(36)	$	152	$	(248)	$	(2)	$	(31)	$	(281)
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30	$	—	$	—	$	10	$	10	$	—	$	—	$	16	$	16



	Nine Months Ended September 30, 2017												Nine Months Ended September 30, 2016
	Natural Gas			Electricity			Other			Total			Natural Gas			Electricity			Other			Total
	(In millions)
Net Assets (Liabilities) as of December 31	$	(96	)	$	9		$	(1	)	$	(88	)	$	(5	)	$	6		$	(5	)	$	(4	)
Transfers into Level 3 from Level 2	—			—			—			—			—			—			—			—
Transfers from Level 3 into Level 2	—			—			—			—			—			—			—			—
Total gains (losses)
Included in earnings	38			45			1			84			(123		)	(22		)	1			(144		)
Recorded in Regulatory liabilities	—			—			15			15			—			—			6			6
Purchases, issuances, and settlements
Issuances	—			—			—			—			—			1			—			1
Settlements	56			(47		)	(13		)	(4		)	28			9			(3		)	34
Net Assets (Liabilities) as of September 30	$	(2	)	$	7		$	2		$	7		$	(100	)	$	(6	)	$	(1	)	$	(107	)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$	8		$	35		$	—		$	43		$	(165	)	$	(1	)	$	2		$	(164	)



	September 30, 2017								December 31, 2016
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable, excluding capital leases	$	36	$	—	$	—	$	36	$	36	$	—	$	—	$	36
Dividends payable	$	148	$	148	$	—	$	—	$	148	$	148	$	—	$	—
Short-term borrowings	$	659	$	—	$	659	$	—	$	499	$	—	$	499	$	—
Notes payable — Other^(a)	$	16	$	—	$	—	$	16	$	17	$	—	$	—	$	17
Long-term debt^(b)	$	11,897	$	1,554	$	10,522	$	744	$	11,270	$	1,465	$	9,384	$	1,056


~~(a)~~	~~Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.~~


~~(b)~~	~~Includes debt due within one year, unamortized debt discounts, premiums, and issuance costs. Excludes Capital lease obligations.~~


	September 30, 2023
	(In millions)
Due within one year	$	7
Due after one through five years	105
Due after five through ten years	86
Due after ten years	253
	$	451



Net Income (Loss) Attributable to DTE Energy by Segment:
Electric	$	219		$	285		$	463		$	547
Gas	(15		)	(4		)	93			96
Gas Storage and Pipelines	36			28			121			93
Power and Industrial Projects	44			34			104			66
Energy Trading	1			(4		)	97			(34		)
Corporate and Other	(15		)	(1		)	(31		)	(31		)
Net Income Attributable to DTE Energy Company	$	270		$	338		$	847		$	737



	Three Months
	(In millions)
Unrealized Margins^(a)
Favorable results, primarily in gas structured and power trading strategies^(b)	$	53
Unfavorable results, primarily in gas trading and gas transportation strategies	(15		)
	$	38
Realized Margins^(a)
Unfavorable results, primarily in power full requirements, environmental trading, power trading, and gas storage strategies^(c)	$	(39	)
Favorable results, primarily in the gas trading strategy	12
	$	(27	)
Increase in Non-utility Margin	$	11



	Nine Months Ended
	September 30, 2017
	(In millions)
MTM at December 31, 2016	$	(86	)
Reclassified to realized upon settlement	(34		)
Changes in fair value recorded to income	156
Amounts recorded to unrealized income	122
Changes in fair value recorded in regulatory liabilities	15
Change in collateral	(3		)
MTM at September 30, 2017	$	48



Source of Fair Value	2017			2018		2019		2020 and Beyond			Total Fair Value
	(In millions)
Level 1	$	(7	)	$	2	$	5	$	—		$	—
Level 2	5			6		6		6			23
Level 3	(14		)	17		12		(8		)	7
MTM before collateral adjustments	$	(16	)	$	25	$	23	$	(2	)	30
Collateral adjustments											18
MTM at September 30, 2017											$	48


	Credit Exposure Before Cash Collateral		Cash Collateral		Net Credit Exposure			Credit Exposure Before Cash Collateral		Cash Collateral		Net Credit Exposure
	(In millions)							(In millions)
Investment Grade^(a)							Investment Grade(a)
A− and Greater	$	242	$	—	$	242
A- and Greater							A- and Greater	$	366	$	—	$	366
BBB+ and BBB	282		—		282		BBB+ and BBB	331		(3)		328
BBB−	86		—		86
BBB-							BBB-	13		—		13
Total Investment Grade	610		—		610		Total Investment Grade	710		(3)		707
Non-investment grade^(b)	2		—		2		Non-investment grade(b)	7		—		7
Internally Rated — investment grade^(c)	266		—		266		Internally Rated — investment grade(c)	350		—		350
Internally Rated — non-investment grade^(d)	15		—		15		Internally Rated — non-investment grade(d)	11		—		11
Total	$	893	$	—	$	893	Total	$	1,078	$	(3)	$	1,075


~~(a)~~	This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented approximately 18% of the total gross credit exposure.


~~(c)~~	This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented approximately 11% of the total gross credit exposure.


	Assuming a 10% Increase in Prices/Rates						Assuming a 10% Decrease in Prices/Rates								Assuming a 10% Increase in Prices/Rates				Assuming a 10% Decrease in Prices/Rates
	As of September 30,						As of September 30,								As of September 30,				As of September 30,
Activity	2017			2016			2017			2016			Change in the Fair Value of	Activity	2023		2022		2023		2022		Change in the Fair Value of
	(In millions)														(In millions)
Environmental contracts														Environmental contracts	$	(7)	$	(8)	$	7	$	8	Commodity contracts
Gas contracts	$	3		$	17		$	(3	)	$	(17	)	Commodity contracts	Gas contracts	$	35	$	19	$	(35)	$	(19)	Commodity contracts
Power contracts	$	9		$	14		$	(11	)	$	(14	)	Commodity contracts	Power contracts	$	3	$	13	$	(4)	$	(13)	Commodity contracts
Oil contracts														Oil contracts	$	1	$	2	$	(1)	$	(2)	Commodity contracts
Interest rate risk — DTE Energy	$	(545	)	$	(388	)	$	548		$	408		Long-term debt	Interest rate risk — DTE Energy	$	(717)	$	(667)	$	776	$	718	Long-term debt
Interest rate risk — DTE Electric	$	(249	)	$	(235	)	$	267		$	252		Long-term debt	Interest rate risk — DTE Electric	$	(477)	$	(426)	$	524	$	466	Long-term debt


	Number of Shares Purchased(a)	Average Price Paid per Share(a)		Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Average Price Paid per Share	Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs
07/01/2023 — 07/31/2023	5,408	$	111.60	—	—	—
08/01/2023 — 08/31/2023	3,353	$	112.29	—	—	—
09/01/2023 — 09/30/2023	800	$	108.15	—	—	—
Total	9,561			—



	Number of Shares Purchased^(a)	Average Price Paid per Share^(a)		Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Average Price Paid per Share	Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs
07/01/2017 — 07/31/2017	2,287	$	106.05	—	—	—
08/01/2017 — 08/31/2017	7,066	$	97.73	—	—	—
09/01/2017 — 09/30/2017	440	$	97.78	—	—	—
Total	9,793			—