Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 52

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1
Chunk 52
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 CARB, and various state utility commissions.

13

Strategy and Competition

DTE Vantage will continue leveraging its energy-related operating experience and project management capability to grow its renewable energy and custom energy solutions businesses and develop its carbon capture and sequestration business.  DTE Vantage will also continue to pursue opportunities to provide asset management and operations services to third parties.  There are limited competitors for DTE Vantage's existing disparate businesses who provide similar products and services.  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.

DTE Vantage anticipates building around its core strengths in the markets where it operates.  In determining the markets in which to compete, DTE Vantage examines closely the regulatory and competitive environment, new and pending legislation, the number of competitors, and its ability to achieve sustainable margins.  DTE Vantage plans to maximize the effectiveness of its related businesses as it expands, including optimizing tax credit opportunities from the Inflation Reduction Act related to renewable natural gas and carbon capture and sequestration.

DTE Vantage intends to focus on the following areas for growth:

•Acquiring and developing renewable energy projects and other energy projects

•Providing energy and utility-type services to commercial and industrial customers

•Developing decarbonization opportunities related to carbon capture and sequestration projects

ENERGY TRADING SEGMENT

Description

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.  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 environmental attributes to various customers.  Energy Trading's customer base is predominantly utilities, local natural gas distribution companies, pipelines, producers and generators, and other marketing and trading companies.  Energy Trading also provides commodity risk management services to the other businesses within DTE Energy.

Energy Trading enters into derivative financial instruments as part of its marketing and hedging activities.  These financial instruments are generally accounted for under the MTM method, which results in the recognition in earnings of unrealized gains and losses from changes in the fair value of the derivatives.  Energy Trading utilizes forwards, futures, swaps, and option contracts to mitigate risk associated with marketing and trading activity, as