Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 85

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1A
Chunk 85
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 participation, there continues to be legislative and financial risk associated with the electric retail access program.  Electric retail access migration is sensitive to market price and full service electric price changes.  The Registrants are required under current regulation to provide full service to retail access customers that choose to return, potentially resulting in the need for additional generating capacity.

Environmental laws and liability may be costly.  The Registrants are subject to, and affected by, numerous environmental regulations.  These regulations govern air emissions, water quality, wastewater discharge, and disposal of solid and hazardous waste.  Compliance with these regulations can significantly increase capital spending, operating expenses, and plant down times, and can negatively affect the affordability of the rates charged to customers.

Uncertainty around future environmental regulations creates difficulty planning long-term capital projects in the Registrants' generation fleet and for DTE Energy's gas distribution businesses.  These laws and regulations require the Registrants to seek a variety of environmental licenses, permits, inspections, and other regulatory approvals.  The Registrants could be required to install expensive pollution control measures or limit or cease activities, including the retirement of certain generating plants, based on these regulations.  Additionally, the Registrants may become a responsible party for environmental cleanup at sites identified by a regulatory body.  The Registrants cannot predict with certainty the amount and timing of future expenditures related to environmental matters because of the difficulty of estimating cleanup costs.  There is also uncertainty in quantifying liabilities under environmental laws that impose joint and several liability on potentially responsible parties.

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The Registrants may also incur liabilities as a result of potential future requirements to address climate change issues.  Proposals for voluntary initiatives and mandatory controls are being discussed in Michigan, the United States, and worldwide to reduce GHGs such as carbon dioxide, a by-product of burning fossil fuels.  If increased regulations of GHG emissions are implemented, or if existing deadlines for these regulations are accelerated, the operations of DTE Electric's fossil-fueled generation assets may be significantly impacted.  Increased environmental regulation may also result in greater energy efficiency requirements and decreased demand at both the electric and gas utilities.  Since there can be no assurances that environmental costs may be recovered through the regulatory process, the Registrants' financial performance may be negatively impacted as a result of environmental matters.

Any perceived or alleged failure by the Registrants to comply with environmental regulations could lead to fines or penalties imposed by regulatory bodies or could result in adverse public statements and reputational damage affecting the Registrants.  Adverse statements, whether