Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 78

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 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:June 30, 2025December 31, 2024DerivativeAssetsDerivative LiabilitiesDerivativeAssetsDerivative Liabilities(In millions)Derivatives designated as hedging instruments  Interest rate contracts $2 $(1)$20 $—   Foreign currency exchange contracts— (1)— (1)Total derivatives designated as hedging instruments$2 $(2)$20 $(1)Derivatives not designated as hedging instrumentsCommodity contractsNatural gas$327 $(321)$428 $(410)Electricity253 (225)187 (150)Environmental & Other129 (79)58 (44)Foreign currency exchange contracts— — 1 — Total derivatives not designated as hedging instruments$709 $(625)$674 $(604)Current$462 $(381)$488 $(441)Noncurrent249 (246)206 (164)Total derivatives$711 $(627)$694 $(605)The fair value of derivative instruments at DTE Electric was $30 million and $9 million at June 30, 2025 and December 31, 2024, respectively, comprised of FTRs recorded to Current Assets — Other on the Consolidated Statements of Financial Position and not designated as hedging instruments.

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

Certain of DTE Energy's derivative