DTE ENERGY CO

DTE Energy Company operates primarily as a diversified energy company with utility operations consisting of DTE Electric and DTE Gas, alongside non-utility segments including DTE Vantage and Energy Trading. DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million customers ¹ in southeastern Michigan. DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million customers ² throughout Michigan and the sale of storage and transportation capacity. The non-utility DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy solutions to industrial, commercial, and institutional customers. The Energy Trading segment focuses on physical and financial power, 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.

The filing does not name specific primary competitors or provide quantified market share data relative to peers. DTE Electric's electrical generation operations seek to provide the energy needs of customers in a cost-effective manner and support DTE Energy's goal to reduce carbon emissions. Competition in the regulated electric distribution business is primarily from the on-site generation of industrial customers and from distributed generation applications by industrial and commercial customers. DTE Electric does not expect significant competition for distribution to any group of customers in the near term. Competition in the gas business primarily involves other natural gas transportation providers, as well as providers of alternative fuels and energy sources. The Energy Trading segment competes with electric and gas marketers, financial institutions, traders, utilities, and other energy providers.

DTE Energy generates revenue through its four operating segments: Electric, Gas, DTE Vantage, and Energy Trading. The Electric segment generates revenue from the generation, purchase, distribution, and sale of electricity to approximately 2.3 million residential, commercial, and industrial customers ³ in southeastern Michigan. The Gas segment generates revenue from the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million residential, commercial, and industrial customers ⁴ throughout Michigan and the sale of storage and transportation capacity. The DTE Vantage segment generates revenue from renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy solutions to industrial, commercial, and institutional customers. The Energy Trading segment generates revenue from physical and financial power, natural gas and environmental marketing and trading, structured transactions, and optimization of contracted natural gas pipeline transportation and storage positions. Revenues from year to year will vary due to weather conditions, economic factors, and regulatory events.

The Electric segment consists principally of DTE Electric, an electric utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million customers ⁵ in southeastern Michigan. Electricity is primarily generated by two coal-fired plants, a combined cycle natural gas plant, a hydroelectric pumped storage plant, a nuclear plant, wind and solar assets, and is supplemented with purchased power. DTE Electric owns generating facilities with a total net generation capacity of 12,414 MW ⁶ as of December 31, 2025, including 6,192 MW ⁷ from fossil-fueled steam-electric coal and natural gas/oil, 1,953 MW ⁸ from natural gas and oil-fueled peaking units, 1,141 MW ⁹ from nuclear-fueled steam-electric at Fermi 2, 1,122 MW ¹⁰ from hydroelectric pumped storage at Ludington, 14 MW ¹¹ from battery energy storage, and 1,992 MW ¹² from renewables. DTE Electric also has long-term contracts for 609 MW ¹³ of renewable power generated from wind, solar, and biomass facilities. The Electric segment also includes non-utility operations relating to renewable energy projects and other power generation assets at DTE Sustainable Generation.

The Gas segment consists principally of DTE Gas, a natural gas utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million residential, commercial, and industrial customers ¹⁴ throughout Michigan, and the sale of storage and transportation capacity. DTE Gas owns distribution, storage, and transportation properties including approximately 21,000 miles ¹⁵ of distribution mains, approximately 1,242,000 service pipelines ¹⁶, approximately 1,361,000 active meters ¹⁷, approximately 2,000 miles ¹⁸ of transmission pipelines, and four underground natural gas storage fields with an aggregate working gas storage capacity of approximately 139 Bcf ¹⁹. The DTE Vantage segment includes renewable gas recovery with ownership interests in twenty-two gas recovery sites ²⁰ in ten states, wholesale power and renewables with two renewable generating plants with a capacity of 70 MWs ²¹, on-site energy services, steel and petroleum coke production with a coke battery capacity of 1 million tons per year ²² and an investment in a second coke battery with a capacity of 1.2 million tons per year ²³, and emerging ventures in carbon capture and sequestration. The Energy Trading segment focuses on physical and financial power, natural gas and environmental marketing and trading.

During the period, DTE Energy issued several debt securities. In February 2025, DTE Energy issued $500 million ²⁴ of 5.20% Senior Notes due 2030. In May 2025, DTE Electric issued $500 million ²⁵ of 5.25% Mortgage Bonds due 2035, $500 million ²⁶ of 5.85% Mortgage Bonds due 2055, and $400 million ²⁷ of 4.25% Mortgage Bonds due 2027. In September 2025, DTE Energy issued $500 million ²⁸ of 4.88% Senior Notes due 2028, $500 million ²⁹ of 5.05% Senior Notes due 2035, and $500 million ³⁰ of 6.25% Junior Subordinated Debentures due 2085. In September 2025, DTE Gas issued $400 million ³¹ of 4.71% Mortgage Bonds due 2031, $400 million ³² of 5.36% Mortgage Bonds due 2037, and $400 million ³³ of 5.96% Mortgage Bonds due 2055. In November 2025, DTE Electric issued $500 million ³⁴ of 5.25% Mortgage Bonds due 2035 and $500 million ³⁵ of 5.85% Mortgage Bonds due 2055. DTE Energy also had an at-the-market program under which it sold 1,000,000 ³⁶ shares of common stock for net proceeds of $149 million ³⁷ in December 2025. DTE Energy redeemed $350 million ³⁸ of 3.38% Mortgage Bonds due 2025 at DTE Electric, $100 million ³⁹ of 5.97% Securitization Bonds due 2025 at DTE Electric, $300 million ⁴⁰ of 1.05% Senior Notes due 2025, $100 million ⁴¹ of 2.64% Securitization Bonds due 2025 at DTE Electric, $100 million ⁴² of 2.64% Securitization Bonds due December 2025 at DTE Electric, and $100 million ⁴³ of 3.74% Mortgage Bonds due 2025 at DTE Gas.

For the fiscal year ended December 31, 2025, DTE Energy reported operating revenues of $13,486 million ⁴⁴, compared to $12,604 million ⁴⁵ in 2024 and $11,743 million ⁴⁶ in 2023. Net income attributable to DTE Energy was $1,427 million ⁴⁷ in 2025, compared to $1,396 million ⁴⁸ in 2024 and $1,395 million ⁴⁹ in 2023. Diluted earnings per share were $6.91 ⁵⁰ in 2025, compared to $6.76 ⁵¹ in 2024 and $6.79 ⁵² in 2023. Operating income was $2,131 million ⁵³ in 2025, compared to $2,023 million ⁵⁴ in 2024 and $1,994 million ⁵⁵ in 2023. Net cash from operating activities was $3,726 million ⁵⁶ in 2025, compared to $3,503 million ⁵⁷ in 2024 and $3,225 million ⁵⁸ in 2023.

DTE Electric plans to transition away from coal-fired plants to renewable energy and other sources, including leveraging existing infrastructure at the Belle River power plant through a coal to natural gas conversion. To achieve long-term carbon reduction goals, DTE Electric plans to end the use of coal-fired power plants in 2032 ⁵⁹ and plans significant investments in solar, wind, and battery storage. DTE Electric expects this transition to renewables and natural gas to reduce future operating and fuel costs. DTE Electric will also continue to monitor the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, hydrogen, and carbon capture and sequestration. DTE Electric expects to generate production tax credits for wind and solar production and existing nuclear generation, as well as investment tax credits for solar and energy storage, which are expected to reduce the cost of owning assets that support its clean energy transition.

DTE Vantage intends to focus on acquiring and developing renewable energy projects and other energy projects, providing energy and utility-type services to commercial and industrial customers, and developing decarbonization opportunities related to carbon capture and sequestration projects. DTE Vantage plans to maximize the effectiveness of its related businesses as it expands, including optimizing tax credit opportunities related to renewable natural gas and carbon capture and sequestration. DTE Energy also aims to help DTE Gas customers reduce their emissions by approximately 35% ⁶⁰ 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.

The filing does not contain explicit margin trajectory or cost structure evolution targets with specific figures.

DTE Electric's distribution operations focus is on distributing energy in a safe, cost-effective, and reliable manner to customers. An increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption and potential for data centers, will drive a continued need for substantial grid investment over the long-term. DTE Electric is hardening and upgrading its infrastructure and has plans to build substations to provide additional capacity as customers shift to more electrification, including electric vehicles. DTE Electric seeks to increase operational efficiencies to maintain rate affordability and increase reliability and customer satisfaction through accelerated tree trimming, pole maintenance, enhanced grid automation to reduce outage duration, and increased underground distribution.

The filing does not contain specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy with exact figures for the upcoming period.

DTE Electric's generating capability is largely dependent upon the availability of coal and natural gas. DTE Electric has 99% ⁶¹ of its expected coal requirements under contract for 2026. DTE Electric's 2026 rail transportation is covered under long-term agreements. DTE Electric expects to cover all of its 2026 vessel transportation requirements for delivery of purchased coal to electric generating facilities through existing agreements. Natural gas purchase requirements for 2026 are expected to be approximately 89 Bcf ⁶². DTE Gas' gas distribution system has a planned maximum daily send-out capacity of 2.5 Bcf ⁶³, with approximately 65% ⁶⁴ of the volume coming from underground storage for 2025.

The electric retail access program in Michigan has placed a 10% ⁶⁵ cap on total retail access. Customers with retail access to alternative electric suppliers consisted primarily of industrial and commercial customers and represented approximately 10% ⁶⁶ of retail sales in 2025, 2024, and 2023. DTE Electric expects that customers with retail access to alternative electric suppliers will remain at approximately 10% ⁶⁷ of retail sales in 2026 and future years. As a result of legislation passed by the state of Michigan in the fourth quarter 2023, DTE Electric will be required to meet a 100% ⁶⁸ clean energy portfolio standard by 2040. The legislation also requires 50% ⁶⁹ of an electric utility's energy to be generated from renewable sources by 2030 and 60% ⁷⁰ by 2035.

DTE Energy faces material risks related to its significant environmental compliance expenditures, with estimated total future environmental expenditures through 2030 of $446 million ⁷¹, including $424 million ⁷² for coal combustion residuals and effluent limitations guidelines. The company's operations are subject to extensive regulation by the MPSC, FERC, NRC, EPA, and EGLE, and the amount and timing of cost recovery allowed as a result of regulatory proceedings could materially impact financial results. DTE Electric's generating capability is largely dependent upon the availability of coal and natural gas, and volatility in commodity markets could affect costs. The company's nuclear operations at Fermi 2, with a capacity of 1,141 MW ⁷³, expose it to health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities. DTE Vantage's operations are dependent upon a limited number of customers, and the loss of any one or a few customers could have a material adverse effect on the results of DTE Vantage. The Energy Trading business is dependent upon the availability of capital and an investment grade credit rating, and a material credit restriction would negatively impact its financial performance.

Management's message emphasizes DTE Energy's strategic priorities of achieving carbon reduction goals, maintaining reliability, and enhancing customer affordability. DTE Electric's electrical generation operations support DTE Energy's goal to reduce carbon emissions by 65% in 2028 ⁷⁴, 85% in 2032 ⁷⁵, and 90% by 2040 ⁷⁶ from 2005 carbon emissions levels, as well as net zero emissions by 2050 ⁷⁷. DTE Energy plans to reduce the carbon emissions from its gas utility operations by 65% by 2030 ⁷⁸ and 80% by 2040 ⁷⁹, and is committed to a goal of net zero carbon emissions by 2050 ⁸⁰ from internal gas operations and gas suppliers. To achieve long-term carbon reduction goals, DTE Electric plans to end the use of coal-fired power plants in 2032 ⁸¹ and plans significant investments in solar, wind, and battery storage. DTE Electric expects this transition to renewables and natural gas to reduce future operating and fuel costs. DTE Electric also expects to generate production tax credits for wind and solar production and existing nuclear generation, as well as investment tax credits for solar and energy storage, which are expected to reduce the cost of owning assets that support its clean energy transition, thereby reducing customer rate impacts from any future cost recoveries.