Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 180

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 8
Chunk 180
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 entities and other companies in connection with its operations.  As of June 30, 2025, DTE Energy had $406 million of performance bonds outstanding, including $231 million for DTE Electric.  Performance bonds are not individually material, except for $130 million of bonds supporting Energy Trading operations.  These bonds are meant to provide counterparties with additional assurance that Energy Trading will meet its contractual obligations for various commercial transactions.  The terms of the bonds align with those of the underlying Energy Trading contracts and are estimated to be outstanding approximately 1 to 3 years.  In the event that any performance bonds are called for nonperformance, the Registrants would be obligated to reimburse the issuer of the performance bond.  The Registrants are released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.Labor ContractsThere are several bargaining units for DTE Energy subsidiaries' approximately 4,700 represented employees, including DTE Electric's approximately 2,500 represented employees.  This represents 50% and 58% of DTE Energy's and DTE Electric's total employees, respectively.  Of these represented employees, approximately 3% have contracts expiring within one year for DTE Energy.  Less than 1% of the represented employees have contracts expiring within one year for DTE Electric.Purchase CommitmentsUtility capital expenditures and expenditures for non-utility businesses will be approximately $4.9 billion and $3.7 billion in 2025 for DTE Energy and DTE Electric, respectively.  The Registrants have made certain commitments in connection with the estimated 2025 annual capital expenditures.

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

Ludington Plant Contract DisputeDTE Electric and Consumers Energy Company ("Consumers"), joint owners of the Ludington Hydroelectric Pumped Storage plant ("Ludington"), entered into a 2010 engineering, procurement, and construction agreement with Toshiba International Corporation ("TIC"), under which TIC contracted to perform a major overhaul and upgrade of Ludington.  TIC later assigned the contract and all its obligations to Toshiba America Energy Systems ("TAES").  TAES' work under the contract was incomplete, defective, and non-conforming.  DTE Electric and Consumers repeatedly documented TAES' failures to perform under the contract and demanded that TAES provide a comprehensive plan