Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 164

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 Energy Trading will meet its contractual obligations for various commercial transactions.  The terms of the bonds align with those of the underlying Energy Trading contracts and are estimated to be outstanding approximately 1 to 3 years.  In the event that any performance bonds are called for nonperformance, the Registrants would be obligated to reimburse the issuer of the performance bond.  The Registrants are released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.

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

Labor ContractsThere are several bargaining units for DTE Energy subsidiaries' approximately 4,750 represented employees, including DTE Electric's approximately 2,500 represented employees.  This represents 50% and 58% of DTE Energy's and DTE Electric's total employees, respectively.  Of these represented employees, less than 1% have contracts expiring within one year for DTE Energy.  Less than 1% of the represented employees have contracts expiring within one year for DTE Electric.Purchase CommitmentsUtility capital expenditures and expenditures for non-utility businesses will be approximately $4.9 billion and $3.7 billion in 2025 for DTE Energy and DTE Electric, respectively.  The Registrants have made certain commitments in connection with the estimated 2025 annual capital expenditures.Ludington Plant Contract DisputeDTE Electric and Consumers Energy Company ("Consumers"), joint owners of the Ludington Hydroelectric Pumped Storage plant ("Ludington"), entered into a 2010 engineering, procurement, and construction agreement with Toshiba International Corporation ("TIC"), under which TIC contracted to perform a major overhaul and upgrade of Ludington.  TIC later assigned the contract and all its obligations to Toshiba America Energy Systems ("TAES").  TAES' work under the contract was incomplete, defective, and non-conforming.  DTE Electric and Consumers documented TAES' failures to perform under the contract and demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations.  DTE Electric and Consumers engaged in extensive efforts to resolve these issues with TAES, including a formal demand to TAES' parent, Toshiba Corporation, under a parent guaranty it provided.  TAES did not provide a comprehensive plan or otherwise met its performance obligations.  As a result