Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 110

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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 These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, and futures contracts, within predetermined risk parameters.

64

Credit Risk

Allowance for Doubtful Accounts

The Registrants regularly review contingent matters, existing and future economic conditions, customer trends and other factors relating to customers and their contracts and record provisions for amounts considered at risk of probable loss in the allowance for doubtful accounts.  The Registrants believe their accrued amounts are adequate for probable loss.  The Registrants manage this risk by working at the state and federal levels to promote funding programs for low-income customers, providing energy assistance programs and support, and promoting timely customer payments through adherence to MPSC billing practice rules relating to payment arrangements, energy disconnects, and restores.

Trading Activities

DTE Energy is exposed to credit risk through trading activities.  Credit risk is the potential loss that may result if the trading counterparties fail to meet their contractual obligations.  DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties.

The following table displays the credit quality of DTE Energy's trading counterparties as of March 31, 2025:

Credit ExposureBefore CashCollateralCashCollateralNet CreditExposure(In millions)Investment Grade(a)A- and Greater$555 $— $555 BBB+ and BBB391 — 391 BBB-16 — 16 Total Investment Grade962 — 962 Non-investment grade(b)33 — 33 Internally Rated — investment grade(c)424 — 424 Internally Rated — non-investment grade(d)42 (6)36 Total$1,461 $(6)$1,455 

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(a)This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB-assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s).  The five largest counterparty exposures, combined, for this category represented 23% of the total gross credit exposure.

(b)This category includes counterparties with credit ratings that are below investment grade.  The five largest counterparty exposures, combined, for this category represented 2% of the total gross credit exposure.

(c)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s but are considered