Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 85

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 June 30,2025202420252024(In millions)Fixed payments$3 $3 $7 $7 Variable payments11 9 22 19 $14 $12 $29 $26 

NOTE 12 — COMMITMENTS AND CONTINGENCIES

EnvironmentalDTE ElectricAir — 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.  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 SO2, NOX, mercury, and other emissions.  Additional rule making may occur over the next few years which could require additional controls for SO2, NOX, and other hazardous air pollutants.

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Table of ContentsDTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

In March 2024, the EPA finalized the NAAQS for fine particulate matter, particles of pollution with diameters generally 2.5 micrometers and smaller (PM2.5).  It is likely that areas of Michigan in which DTE Electric operates will be designated as non-attainment in the future, and the state will be required to develop a SIP for such areas.  However, the EPA has announced its intention to review the standard.  No impact is expected in the near term, and any long-term financial impacts cannot be assessed at this time.In April 2024, the EPA finalized new rules to address emissions of GHGs from existing, new, modified, or reconstructed sources in the power sector.  In June 2025, the EPA proposed a rule to repeal the GHG standards along with an alternative to eliminate various portions of the standards.  The EPA intends to finalize the repeal or alternative by the end of 2025.  The financial impacts of the new rules are still being assessed.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.  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