Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 24

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 3
Chunk 24
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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 March 31, 2025, DTE Energy had floating rate debt of $513 million and a floating rate debt-to-total debt ratio of 2.3%.

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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 March 31, 2025 and 2024 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 March 31,As of March 31,Activity2025202420252024Change in the Fair Value of(In millions)Environmental contracts$(8)$(10)$8 $10 Commodity contractsGas contracts$48 $39 $(48)$(39)Commodity contractsPower contracts$(3)$(2)$3 $2 Commodity contractsOil contracts$— $1 $— $(1)Commodity contractsInterest rate risk — DTE Energy$(789)$(781)$845 $837 Long-term debtInterest rate risk — DTE Electric$(484)$(515)$526 $560 Long-term debt

For further discussion of market risk, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

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