Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 177

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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Income Tax Expense (Benefit) changed $21 million in the three months ended March 31, 2025.  The change was primarily due to higher investment tax credits in 2025.

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 will maintain a strong focus on customers by increasing reliability and satisfaction while working to keep customer rate increases affordable.  Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, uncertainty of legislative or regulatory actions regarding environmental compliance, and effects of energy waste reduction programs.

DTE Electric filed a rate case with the MPSC on April 24, 2025 requesting an increase in base rates of $574 million based on a projected twelve-month period ending December 31, 2026, and an increase in return on equity from 9.9% to 10.75%.  The requested increase in base rates was primarily due to capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy.  A final MPSC order in this case is expected in February 2026.

GAS SEGMENT

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

Three Months Ended March 31,20252024(In millions)Operating Revenues — Utility operations$876 $711 Operating ExpensesCost of gas — utility331 261 Operation and maintenance156 136 Depreciation and amortization54 54 Taxes other than income37 32 578 483 Operating Income298 228 Other (Income) and Deductions29 25 Income Tax Expense63 49 Net Income Attributable to DTE Energy Company$206 $154 

56

Operating Revenues — Utility operations increased $165 million in the three months ended March 31, 2025.  Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.  The increase was due to the following:

Three Months(In millions)Gas Cost Recovery$69 Weather52 Implementation of new rates45 Regulatory mechanism — RDM6 Midstream storage and transportation revenues5 Regulatory mechanism — EWR4 Infrastructure recovery mechanism(18)Other2