Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 2

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7A
Chunk 2
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 DTE Energy's exposure to interest rate risk arises primarily from changes in U.S. Treasury rates, commercial paper rates, credit spreads, and SOFR.  As of December 31, 2024, DTE Energy had floating rate debt of $1.1 billion and a floating rate debt-to-total debt ratio of 4.8%.

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Table of Contents

Foreign Currency Exchange Risk

DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts.  These contracts are denominated in Canadian dollars and are primarily for the purchase and sale of natural gas and power, as well as for long-term transportation capacity.  To limit DTE Energy's exposure to foreign currency exchange fluctuations, DTE Energy has entered into a series of foreign currency exchange forward contracts through December 2032.

Summary of Sensitivity Analyses

Sensitivity analyses were performed on the fair values of commodity contracts for DTE Energy and long-term debt obligations for the Registrants.  The commodity contracts listed below principally relate to energy marketing and trading activities.  The sensitivity analyses involved increasing and decreasing forward prices and rates at December 31, 2024 and 2023 by a hypothetical 10% and calculating the resulting change in the fair values.  The hypothetical losses related to long-term debt would be realized only if DTE Energy transferred all of its fixed-rate long-term debt to other creditors.

The results of the sensitivity analyses:

Assuming a10% Increase in Prices/RatesAssuming a10% Decrease in Prices/RatesAs of December 31,As of December 31,Activity2024202320242023Change in the Fair Value of(In millions)Gas contracts$26 $40 $(26)$(40)Commodity contractsPower contracts$1 $1 $(1)$(1)Commodity contractsEnvironmental contracts$(8)$(7)$8 $7 Commodity contractsOil contracts$— $1 $— $(1)Commodity contractsInterest rate risk — DTE Energy$(789)$(733)$848 $786 Long-term debtInterest rate risk — DTE Electric$(494)$(492)$538 $535 Long-term debt

For further discussion of market risk, see Management's Discussion and Analysis in Item 7 of this Report and Note 12 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

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