Company: DTK
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000936340-25-000223
Chunk: 86

Company: DTE ENERGY CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.

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Table of ContentsDTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Vantage — DTE Vantage manages and operates renewable gas recovery projects, power generation assets, and other customer specific energy solutions.  Long-term contracts and hedging instruments are used in the marketing and management of the segment assets.  These contracts and hedging instruments are generally not derivatives and are therefore accounted for under the accrual method.Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments.  Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations.  These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts.  Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar.  These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk.  These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees.  DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty.  DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information.  Based on DTE Energy's credit policies and its September 30, 2025 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.Derivative ActivitiesDTE Energy manages its MTM risk on a