Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 149

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 ContentsDTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Derivative ActivitiesDTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the risks within each contract.  Accordingly, it records and manages the energy purchase and sale obligations under its 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 following describes the categories of activities represented by their operating characteristics and key risks:•Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gas purchases and sales, natural gas transportation, and storage capacity.  Changes in the value of derivatives in this category typically economically offset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting.  The difference in accounting treatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.•Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energy marketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.•Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, or putting capital at risk.  This activity is speculative in nature as opposed to hedging an existing exposure.•Other — Includes derivative activity at DTE Electric related to FTRs.  Changes in the value of derivative contracts at DTE Electric are recorded as Derivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in the PSCR mechanism when realized.The following table presents the fair value of derivative instruments for DTE Energy:March 31, 2025December 31, 2024DerivativeAssetsDerivative LiabilitiesDerivativeAssetsDerivative Liabilities(In millions)Derivatives designated as hedging instruments  Interest rate contracts $3 $— $20 $—   Foreign currency exchange contracts— (1)— (1)Total derivatives designated as hedging instruments$3 $(1)$20 $(1)Derivatives not designated as hedging instrumentsCom