Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 137

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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 occur.  The Registrants consolidate VIEs for which they are the primary beneficiary.  If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting.  When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE.  The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.Legal entities within the DTE Vantage segment enter into long-term contractual arrangements with customers to supply energy-related products or services.  The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk.  These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary.  In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are generally accounted for under the equity method.The Registrants hold ownership interests in certain limited partnerships.  The limited partnerships include investment funds which support regional development and economic growth, and an operational business providing energy-related products.  These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights.  The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts.  DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts.  As of June 30, 2025, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts.  As of June 30, 2025, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under