Company: DTK
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000936340-25-000223
Chunk: 187

Company: DTE ENERGY CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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ued)

NOTE 14 — COMMITMENTS AND CONTINGENCIES

EnvironmentalDTE ElectricAir — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO2 and NOX.  The EPA and the state of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution.  These rules have led to controls on fossil-fueled power plants to reduce SO2, NOX, mercury, and other emissions.  Additional rule making may occur over the next few years which could require additional controls for SO2, NOX, and other hazardous air pollutants.In March 2024, the EPA finalized the NAAQS for fine particulate matter, particles of pollution with diameters generally 2.5 micrometers and smaller (PM2.5).  It is likely that areas of Michigan in which DTE Electric operates will be designated as non-attainment in the future, and the state will be required to develop a SIP for such areas.  However, the EPA has announced its intention to review the standard.  No impact is expected in the near term, and any long-term financial impacts cannot be assessed at this time.In April 2024, the EPA finalized new rules to address emissions of GHGs from existing, new, modified, or reconstructed sources in the power sector.  In June 2025, the EPA proposed a rule to repeal the GHG standards along with an alternative to eliminate various portions of the standards.  The EPA intends to finalize the repeal or alternative by the end of 2025.  The financial impacts of the new rules are still being assessed.Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers.  Potential impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical.  DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.To comply with air pollution requirements, DTE Electric has spent approximately $2.4 billion.  DTE Electric does not anticipate additional capital expenditures for air pollution requirements, subject to the results of future rulemakings.Water — In response to EPA regulations and in accordance with the Clean Water Act section