Company: DTK
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000936340-25-000223
Chunk: 71

Company: DTE ENERGY CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 the Consolidated Financial Statements, "Commitments and Contingencies," for additional information regarding the CCR regulations.In the third quarter of 2025, DTE Electric initiated preparatory steps to facilitate the license termination of the Fermi 1 facility, as required by the NRC.  The NRC mandates license termination by 2032.  Following management's reassessment of project timing and estimated cash flows, the Registrants recorded an additional $47 million accrual related to the decommissioning of Fermi 1.  The expense is reflected in Asset (gains) losses and impairments, net in the Registrants' Consolidated Statements of Operations.  Key risks to successful project completion remain, primarily due to uncertainties around contamination levels in piping and volume of waste material.  The estimate may be revised as more site-specific information becomes available.

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

NOTE 7 — REGULATORY MATTERS

2022 Electric PSCR ReconciliationIn March 2023, DTE Electric filed its 2022 PSCR Reconciliation that included the under-recovery of approximately $421 million of power supply costs incurred under reasonable and prudent policies and practices.  The request was subsequently reduced to $416 million.  On February 27, 2025, the MPSC issued an order approving recovery of $387 million of these costs resulting in a disallowance of approximately $33 million, inclusive of interest.  The disallowance was included in Operating Revenues – Utility operations and Interest expense on the Consolidated Statements of Operation in the first quarter of 2025.2025 Electric Rate Case FilingDTE 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.

NOTE 8 — EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period.