Company: DTK
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000936340-25-000182
Chunk: 196

Company: DTE ENERGY CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 8
Chunk 196
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 and higher AFUDC equity of $3 million The increase in the six-month period was primarily due to higher net interest expense of $29 million, partially offset by higher AFUDC equity of $9 million.

Income Tax Expense (Benefit) changed $48 million and $69 million in the three and six months ended June 30, 2025, respectively.  The change in both periods was primarily due to higher investment tax credits in 2025 and lower earnings, partially offset by lower production tax credits in 2025.

Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity.  DTE Electric expects that planned significant capital investments will result in earnings growth.  DTE Electric will maintain a strong focus on customers by increasing reliability and satisfaction while working to keep customer rate increases affordable.  Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, uncertainty of legislative or regulatory actions regarding environmental compliance, and effects of energy waste reduction programs.

DTE Electric filed a rate case with the MPSC on April 24, 2025 requesting an increase in base rates of $574 million based on a projected twelve-month period ending December 31, 2026, and an increase in return on equity from 9.9% to 10.75%.  The requested increase in base rates was primarily due to capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy.  A final MPSC order in this case is expected in February 2026.

59

GAS SEGMENT

The Gas segment consists principally of DTE Gas.  Gas results and outlook are discussed below:

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(In millions)Operating Revenues — Utility operations$316 $289 $1,192 $1,000 Operating ExpensesCost of gas — utility45 38 376 299 Operation and maintenance149 128 305 264 Depreciation and amortization55 55 109 109 Taxes other than income33 32 70 64 282 253 860 736 Operating Income34 36 332 264 Other (Income) and Deductions26 21 55 46 Income Tax Expense2 3 65 52 Net Income Attributable to DTE Energy Company$6 $12