Company: DTK
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000936340-25-000223
Chunk: 155

Company: DTE ENERGY CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 DTE Securitization II to pay for debt service and other qualified costs.  Restricted cash also consists of funds held to satisfy contractual obligations related to a large construction project at DTE Vantage.  Restricted cash designated for payments within one year is classified as a Current Asset.Financing ReceivablesFinancing receivables are primarily composed of trade receivables, notes receivable, and unbilled revenue.  The Registrants' financing receivables are stated at net realizable value.The Registrants monitor the credit quality of their financing receivables on a regular basis by reviewing credit quality indicators and monitoring for trigger events, such as a credit rating downgrade or bankruptcy.  Credit quality indicators include, but are not limited to, ratings by credit agencies where available, collection history, collateral, counterparty financial statements and other internal metrics.  Utilizing such data, the Registrants have determined three internal grades of credit quality.  Internal grade 1 includes financing receivables for counterparties where credit rating agencies have ranked the counterparty as investment grade.  To the extent credit ratings are not available, the Registrants utilize other credit quality indicators to determine the level of risk associated with the financing receivable.  Internal grade 1 may include financing receivables for counterparties for which credit rating agencies have ranked the counterparty as below investment grade; however, due to favorable information on other credit quality indicators, the Registrants have determined the risk level to be similar to that of an investment grade counterparty.  Internal grade 2 includes financing receivables for counterparties with limited credit information and those with a higher risk profile based upon credit quality indicators.  Internal grade 3 reflects financing receivables for which the counterparties have the greatest level of risk, including those in bankruptcy status.The following represents the Registrants' financing receivables by year of origination as determined by the date the original agreement was executed, classified by internal grade of credit risk, including current year-to-date gross write-offs, if any.  The related credit quality indicators and risk ratings utilized to develop the internal grades have been updated through September 30, 2025.DTE EnergyDTE Electric(a)Year of Origination202520242023 and PriorTotal2025 and Prior(In millions)Notes receivableInternal grade 1$131 $4 $27 $162 $158 Internal grade 22 853 253 1,108 — Total notes receivable(b)$133 $857 $