Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 131

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 131
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, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.

The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract.  Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).

The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels.  The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).  For further discussion of the fair value hierarchy, see Note 11 to the Consolidated Financial Statements, "Fair Value."

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The following table provides details on changes in DTE Energy's MTM net asset (or liability) position:

Total(In millions)MTM at December 31, 2023$97 Reclassified to realized upon settlement(342)Changes in fair value recorded to income347 Amounts recorded to unrealized income5 Changes in fair value recorded in Regulatory liabilities21 Amounts recorded in other comprehensive income, pretax38 Change in collateral(89)MTM at December 31, 2024$72 

The table below shows the maturity of DTE Energy's MTM positions.  The positions from 2028 and beyond principally represent longer tenor gas structured transactions:

Source of Fair Value2025202620272028 and BeyondTotal Fair Value(In millions)Level 1$(6)$22 $8 $(4)$20 Level 240 13 5 (2)56 Level 313 2 (4)2 13 MTM before collateral adjustments$47 $37 $9 $(4)89 Collateral adjustments(17)MTM at December 31, 2024$72