Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 187

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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 value recorded to income48 Amounts recorded to unrealized income9 Changes in fair value recorded in Regulatory liabilities(2)Amounts recorded in other comprehensive income, pre-tax(17)Change in collateral(44)MTM at March 31, 2025$18 

The table below shows the maturity of DTE Energy's MTM positions.  The positions from 2028 and beyond principally represent longer tenor gas structured transactions:

Source of Fair Value2025202620272028 and BeyondTotal Fair Value(In millions)Level 1$63 $38 $3 $(3)$101 Level 222 36 8 1 67 Level 3(56)(31)(2)— (89)MTM before collateral adjustments$29 $43 $9 $(2)79 Collateral adjustments(61)MTM at March 31, 2025$18 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Price Risk

The Electric and Gas businesses have commodity price risk, primarily related to the purchases of coal, natural gas, uranium, and electricity.  However, the Registrants do not bear significant exposure to earnings risk, as such changes are included in the PSCR and GCR regulatory rate-recovery mechanisms.  Earnings may be indirectly impacted if PSCR or GCR charges increase such that it impacts the collectability of receivables and increases uncollectible expense.  Refer to the Allowance for Doubtful Accounts section below for additional information. 

Changes in the price of natural gas can also impact the valuation of lost and unaccounted for gas, storage sales, and transportation services revenue at the Gas segment.  The Gas segment manages its market price risk related to storage sales revenue primarily through the sale of long-term storage contracts.  The Registrants are exposed to short-term cash flow or liquidity risk as a result of the time differential between actual cash settlements and regulatory rate recovery.

The DTE Vantage segment is subject to price risk for electricity, natural gas, coal products, and environmental attributes generated from its renewable natural gas investments.  DTE Energy manages its exposure to commodity price risk through the use of long-term contracts and hedging instruments, when available.

DTE Energy's Energy Trading business segment has exposure to electricity, natural gas, environmental, crude oil, heating oil, and foreign currency exchange price fluctuations.  These risks are managed by the energy marketing and trading operations through the use of