Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 69

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts.  Various inputs are used to value derivatives depending on the type of contract and availability of market data.  Exchange-traded derivative contracts are valued using quoted prices in active markets.  The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information.  Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors.  The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value.  The Registrants have obtained an understanding of how these prices are derived.  Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources.  Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period.  The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies.  The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy:Three Months Ended June 30, 2025Three Months Ended June 30, 2024Natural GasElectricityOtherTotalNatural GasElectricityOtherTotal(In millions)Net Assets (Liabilities) as of March 31$— $(91)$2 $(89)$(3)$(25)$2 $(26)Transfers into Level 3 from Level 22 — — 2 1 — — 1 Total gains (losses)Included in earnings(a)(20)182 2 164 31 93 (1)123 Recorded in Regulatory liabilities— — 28 28 — — 30 30 Purchases, issuances, and settlementsSettlements9