Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 75

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 Non-utility operations.  Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, gas, and other — non-utility.The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of March 31, 2025:CommodityNumber of UnitsNatural gas (MMBtu)2,285,028,944 Electricity (MWh)45,449,172 Foreign currency exchange ($ CAD)75,578,851 FTR (MWh)28,094 Renewable Energy Certificates (MWh)12,206,500 Carbon emissions (Metric Tons)822,788 Interest rate contracts ($ USD)400,000,000 Various subsidiaries and equity investees of DTE Energy have entered into derivative and non-derivative contracts which contain ratings triggers and are guaranteed by DTE Energy.  These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy’s credit rating is downgraded below investment grade.  Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific.  For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post.  The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and environmental) and the provisions and maturities of the underlying transactions.  As of March 31, 2025, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $384 million.As of March 31, 2025, DTE Energy had $623 million of derivatives in net liability positions, for which hard triggers exist.  There is no collateral that has been posted against such liabilities, including cash and letters of credit.  Associated derivative net asset positions for which contractual offset exists were $511 million.  The net remaining amount of $112 million is derived from the $384 million