Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 87

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 87
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 provide a comprehensive plan or otherwise met its performance obligations.  As a result of TAES' defaults, DTE Electric and Consumers terminated the contract.  In order to enforce their rights under the contract and parent guaranty, and to pursue appropriate damages, DTE Electric and Consumers filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022.In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties' contract.  In September 2022, the motion to dismiss the complaint was denied.  DTE Electric believes the outstanding counterclaims are without merit, but would be liable for 49% of the damages if approved.  In October 2022, the combined parties submitted a joint discovery plan to proceed with the litigation process and a potential trial during the second half of 2025.  DTE Electric cannot predict the financial impact or outcome of this matter.In May 2023, the MPSC approved a jointly-filed request by DTE Electric and Consumers for authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba Corporation moves forward.  DTE Electric currently estimates its share of these repair and replacement costs ranges from $350 million to $400 million.  Such costs will be offset by any potential litigation proceeds received from TAES or Toshiba Corporation.  DTE Electric and Consumers will have the opportunity to seek recovery and ratemaking treatment for amounts which are not recovered from TAES or Toshiba Corporation.Other ContingenciesThe Registrants are involved in certain other legal, regulatory, administrative, and environmental proceedings before various courts, arbitration panels, and governmental agencies concerning claims arising in the ordinary course of business.  These proceedings include certain contract disputes, additional environmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters.  The Registrants cannot predict the final disposition of such proceedings.  The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss.  The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.For a discussion of contingencies related to regulatory matters and derivatives, see Notes 5 and 8 to the Consolidated Financial Statements, "Regulatory Matters" and