Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 89

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1A
Chunk 89
---
 repairs and incur material unplanned expenses.  The expenses of storm restoration efforts may not be fully recoverable through the regulatory process.  Prolonged and/or more frequent outages caused by increasingly extreme weather may result in decreased revenues and could also negatively impact DTE Energy's reputation and customer satisfaction or result in increased regulatory oversight.  Related damages to customer assets could subject DTE Energy to litigation.  DTE Gas can also experience higher than anticipated expenses from emergency repairs on its gas distribution infrastructure required as a result of weather-related issues.

20

Unplanned outages at our power plants and other generating assets may be costly.  Unforeseen maintenance may be required to safely produce electricity or comply with environmental regulations.  As a result of unforeseen maintenance, the Registrants may be required to make spot market purchases of electricity that exceed the costs of generation.  The Registrants' financial performance may be negatively affected if unable to recover such increased costs.

A work interruption may adversely affect the Registrants.  There are several bargaining units for DTE Energy's approximately 4,800 and DTE Electric's approximately 2,550 represented employees.  The majority of represented employees are under contracts that expire in 2027.  A union choosing to strike would have an impact on the Registrants' businesses.  The Registrants are unable to predict the effect a work stoppage would have on their costs of operations and financial performance.

DTE Energy may not achieve the carbon emissions goals of its electric and gas utilities.  DTE Energy has announced the voluntary commitments of its electric and gas utilities to achieve net zero carbon emissions by 2050, along with intermediate emissions reduction goals at various points in the intervening years.  DTE Energy must also comply with the state of Michigan's requirement to meet a 100% clean energy standard by 2040.  Technology research and developments, innovations, and advancements are critical to DTE Energy's ability to achieve these commitments, but they may not evolve as anticipated in order to provide cost-effective alternatives to traditional energy sources.  State and municipal restrictions on the siting of renewable energy assets could also impair efforts to meet our stated targets.  Additionally, we cannot guarantee that we will continue to receive regulatory approval of our capital plans to transition to renewable energy and other new technologies.  Other factors that may impact DTE Energy's ability to achieve these emissions reduction goals include our service territory size and capacity needs remaining in line with current expectations, the impacts on our business of future regulations or legislation,