Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 91

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1A
Chunk 91
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 impact the Registrants' liquidity and results of operations.  The Registrants' costs of providing non-contributory defined benefit pension plans and other postretirement benefit plans are dependent upon a number of factors, such as the rates of return on plan assets, the level of interest rates used to measure the required minimum funding levels of the plans, future government regulation, and the Registrants' required or voluntary contributions made to the plans.  The performance of the debt and equity markets affects the value of assets that are held in trust to satisfy future obligations under the Registrants' plans.  The Registrants have significant benefit obligations and hold significant assets in trust to satisfy these obligations.  These assets are subject to market fluctuations and will yield uncertain returns, which may fall below the Registrants' projected return rates.  A decline in the market value of the pension and other postretirement benefit plan assets will increase the funding needs under the pension and other postretirement benefit plans if the actual asset returns do not recover these declines in the foreseeable future.  Additionally, the pension and other postretirement benefit plan liabilities are sensitive to changes in interest rates.  If interest rates decrease, the liabilities increase, resulting in increasing benefit expense and funding needs.  Also, if future increases in pension and other postretirement benefit costs as a result of reduced plan assets are not recoverable from the Registrants' utility customers, the results of operations and financial position of the Registrants could be negatively affected.  Without sustained growth in the plan investments over time to increase the value of plan assets, the Registrants could be required to fund these plans with significant amounts of cash.  Such cash funding obligations could have a material impact on the Registrants' cash flows, financial position, or results of operations.

The Registrants' ability to access capital markets is important.  The Registrants' ability to access capital markets is important to operate their businesses and to fund capital investments.  Turmoil in credit markets may constrain the ability of Registrants and their subsidiaries to issue new debt, including commercial paper, and to refinance existing debt.  Macroeconomic events may lead to higher interest rates on debt and could increase financing costs and adversely affect the Registrants' results of operations.  Rising interest rates could also reduce investor interest in DTE Energy's common stock, negatively impacting its share price and increasing its cost of equity.  In addition, the level of borrowing by other energy companies and the market as a whole could limit the Registrants' access to capital markets.