UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended September 30, 2022

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 1-11607

DTE Energy Company

Michigan	38-3217752
(State or other jurisdiction of incorporation or organization)	(I.R.S Employer Identification No.)

Commission File Number: 1-2198

DTE Electric Company

Michigan	38-0478650
(State or other jurisdiction of incorporation or organization)	(I.R.S Employer Identification No.)

Registrants address of principal executive offices: One Energy Plaza, Detroit, Michigan 48226-1279

Registrants telephone number, including area code: (313) 235-4000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Exchange on which Registered
Common stock, without par value	DTE	New York Stock Exchange
2017 Series E 5.25% Junior Subordinated Debentures due 2077	DTW	New York Stock Exchange
2019 6.25% Corporate Units	DTP	New York Stock Exchange
2020 Series G 4.375% Junior Subordinated Debentures due 2080	DTB	New York Stock Exchange
2021 Series E 4.375% Junior Subordinated Debentures due 2081	DTG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

DTE Energy Company (DTE Energy) Yes ☒ No ☐ DTE Electric Company (DTE Electric) Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

DTE Energy Yes ☒ No ☐ DTE Electric Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

DTE Energy	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
	☒	☐	☐	☐	☐
DTE Electric	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
	☐	☐	☒	☐	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

DTE Energy Yes ☐ No ☒ DTE Electric Yes ☐ No ☒

Number of shares of Common Stock outstanding at September 30, 2022:

Registrant	Description	Shares
DTE Energy	Common Stock, without par value	193,741,991
DTE Electric	Common Stock, $10 par value, indirectly-owned by DTE Energy	138,632,324

This combined Form 10-Q is filed separately by two registrants: DTE Energy and DTE Electric. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. DTE Electric makes no representation as to information relating exclusively to DTE Energy.

DTE Electric, an indirect wholly-owned subsidiary of DTE Energy, meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instructions H(2) of Form 10-Q.

TABLE OF CONTENTS

		Page
	Definitions	1
	Filing Format	3
	Forward-Looking Statements	3
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements
	DTE Energy Consolidated Financial Statements (Unaudited)	5
	DTE Electric Consolidated Financial Statements (Unaudited)	12
	Combined Notes to Consolidated Financial Statements (Unaudited)	18
	Note 1 — Organization and Basis of Presentation	18
	Note 2 — Significant Accounting Policies	21
	Note 3 — New Accounting Pronouncements	25
	Note 4 — Discontinued Operations	26
	Note 5 — Revenue	27
	Note 6 — Regulatory Matters	29
	Note 7 — Earnings Per Share	30
	Note 8 — Fair Value	31
	Note 9 — Financial and Other Derivative Instruments	39
	Note 10 — Long-Term Debt	44
	Note 11 — Short-Term Credit Arrangements and Borrowings	45
	Note 12 — Leases	46
	Note 13 — Commitments and Contingencies	47
	Note 14 — Retirement Benefits and Trusteed Assets	52
	Note 15 — Segment and Related Information	54
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	56
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	71
Item 4.	Controls and Procedures	73
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	74
Item 1A.	Risk Factors	74
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	74
Item 6.	Exhibits	75
	Signatures	76

DEFINITIONS

ACE	Affordable Clean Energy
ASU	Accounting Standards Update issued by the FASB
CAD	Canadian Dollar (C$)
CARB	California Air Resources Board that administers California's Low Carbon Fuel Standard
Carbon emissions	Emissions of carbon containing compounds, including carbon dioxide and methane, that are identified as greenhouse gases
CCR	Coal Combustion Residuals
CFTC	U.S. Commodity Futures Trading Commission
COVID-19	Coronavirus disease of 2019
DTE Electric	DTE Electric Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
DTE Energy	DTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas, and numerous non-utility subsidiaries
DTE Gas	DTE Gas Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
DTE Securitization	DTE Electric Securitization Funding I, LLC, a special purpose entity wholly-owned by DTE Electric. The entity was created to issue securitization bonds for certain qualified costs authorized by the MPSC and to recover debt service costs from DTE Electric customers
DTE Sustainable Generation	DTE Sustainable Generation Holdings, LLC (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
DT Midstream	DT Midstream, Inc., formerly DTE Energy's natural gas pipeline, storage, and gathering non-utility business comprising the Gas Storage and Pipelines segment and certain DTE Energy holding company activity in the Corporate and Other segment, which separated from DTE Energy and became an independent public company on July 1, 2021
EGLE	Michigan Department of Environment, Great Lakes, and Energy, formerly known as Michigan Department of Environmental Quality
EGU	Electric Generating Unit
ELG	Effluent Limitations Guidelines
EPA	U.S. Environmental Protection Agency
Equity units	DTE Energy's 2019 equity units issued in November 2019, which were used to finance the Gas Storage and Pipelines acquisition on December 4, 2019
EWR	Energy Waste Reduction program, which includes a mechanism authorized by the MPSC allowing DTE Electric and DTE Gas to recover through rates certain costs relating to energy waste reduction
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
FGD	Flue Gas Desulfurization
FOV	Finding of Violation
FTRs	Financial Transmission Rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission grid
GCR	A Gas Cost Recovery mechanism authorized by the MPSC that allows DTE Gas to recover through rates its natural gas costs
GHGs	Greenhouse gases
Green Bonds	A financing option to fund projects that have a positive environmental impact based upon a specified set of criteria. The proceeds are required to be used for eligible green expenditures

1

DEFINITIONS

MGP	Manufactured Gas Plant
MPSC	Michigan Public Service Commission
MTM	Mark-to-market
NAV	Net Asset Value
Net zero	Collective efforts to reduce the carbon emissions of DTE Energy's utility operations and gas suppliers to DTE Gas, as well as efforts to offset an amount equivalent to any remaining emissions. Progress towards net zero goals is estimated and methodologies and calculations may vary from those of other utility businesses with similar targets
Non-utility	An entity that is not a public utility. Its conditions of service, prices of goods and services, and other operating related matters are not directly regulated by the MPSC
NOX	Nitrogen Oxides
NPDES	National Pollutant Discharge Elimination System
NRC	U.S. Nuclear Regulatory Commission
Production tax credits	Tax credits as authorized under Section 45 of the Internal Revenue Code that are designed to stimulate investment in and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by the Internal Revenue Service
PSCR	A Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related, and purchased power costs
REC	Renewable Energy Credit
REF	Reduced Emissions Fuel
Registrants	DTE Energy and DTE Electric
Retail access	Michigan legislation provided customers the option of access to alternative suppliers for electricity and natural gas
RPS	Renewable Portfolio Standard program, which includes a mechanism authorized by the MPSC allowing DTE Electric to recover through rates its renewable energy costs
RSN	Remarketable Senior Note
SIP	State Implementation Plan
SO2	Sulfur Dioxide
SOFR	Secured Overnight Financing Rate
TCJA	Tax Cuts and Jobs Act of 2017, which reduced the corporate Federal income tax rate from 35% to 21%
Topic 606	FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended
VIE	Variable Interest Entity

Units of Measurement
Bcf	Billion cubic feet of natural gas
BTU	British thermal unit, heat value (energy content) of fuel
MMBtu	One million BTU
MWh	Megawatt-hour of electricity

2

FILING FORMAT

This combined Form 10-Q is separately filed by DTE Energy and DTE Electric. Information in this combined Form 10-Q relating to each individual Registrant is filed by such Registrant on its own behalf. DTE Electric makes no representation regarding information relating to any other companies affiliated with DTE Energy other than its own subsidiaries. Neither DTE Energy, nor any of DTE Energy’s other subsidiaries (other than DTE Electric), has any obligation in respect of DTE Electric's debt securities, and holders of such debt securities should not consider the financial resources or results of operations of DTE Energy nor any of DTE Energy’s other subsidiaries (other than DTE Electric and its own subsidiaries (in relevant circumstances)) in making a decision with respect to DTE Electric's debt securities. Similarly, none of DTE Electric nor any other subsidiary of DTE Energy has any obligation in respect to debt securities of DTE Energy. This combined Form 10-Q should be read in its entirety. No one section of this combined Form 10-Q deals with all aspects of the subject matter of this combined Form 10-Q. This combined Form 10-Q should be read in conjunction with the Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements and with Management's Discussion and Analysis included in the combined DTE Energy and DTE Electric 2021 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

Certain information presented herein includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of the Registrants. Words such as "anticipate," "believe," "expect," "may," "could," "projected," "aspiration," "plans," and "goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of the Registrants including, but not limited to, the following:

•the duration and impact of the COVID-19 pandemic on the Registrants and customers;

•impact of regulation by the EPA, EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures;

•the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs;

•economic conditions and population changes in the Registrants' geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas;

•the operational failure of electric or gas distribution systems or infrastructure;

•impact of volatility in prices in international steel markets and in prices of environmental attributes generated from renewable natural gas investments on the operations of DTE Vantage;

•the risk of a major safety incident;

•environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;

•the cost of protecting assets and customer data against, or damage due to, cyber incidents and terrorism;

•health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities;

•volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations;

•changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;

•advances in technology that produce power, store power, or reduce power consumption;

•changes in the financial condition of significant customers and strategic partners;

3

•the potential for losses on investments, including nuclear decommissioning trust and benefit plan assets and the related increases in future expense and contributions;

•access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;

•instability in capital markets which could impact availability of short and long-term financing;

•impacts of inflation and the timing and extent of changes in interest rates;

•the level of borrowings;

•the potential for increased costs or delays in completion of significant capital projects;

•changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits;

•the effects of weather and other natural phenomena, including climate change, on operations and sales to customers, and purchases from suppliers;

•unplanned outages at our generation plants;

•employee relations and the impact of collective bargaining agreements;

•the availability, cost, coverage, and terms of insurance and stability of insurance providers;

•cost reduction efforts and the maximization of plant and distribution system performance;

•the effects of competition;

•changes in and application of accounting standards and financial reporting regulations;

•changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues;

•successful execution of new business development and future growth plans;

•contract disputes, binding arbitration, litigation, and related appeals;

•the ability of the electric and gas utilities to achieve net zero emissions goals; and

•the risks discussed in the Registrants' public filings with the Securities and Exchange Commission.

New factors emerge from time to time. The Registrants cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. The Registrants undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

Part I — Financial Information

Item 1. Financial Statements

4

DTE Energy Company

Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions, except per share amounts)
Operating Revenues
Utility operations	$	2,053	$	1,875	$	6,196	$	5,483
Non-utility operations	3,198		1,840		8,556		4,834
	5,251		3,715		14,752		10,317
Operating Expenses
Fuel, purchased power, and gas — utility	594		477		1,901		1,411
Fuel, purchased power, gas, and other — non-utility	3,023		1,766		8,324		4,708
Operation and maintenance	608		615		1,803		1,750
Depreciation and amortization	369		344		1,093		1,010
Taxes other than income	111		106		349		329
Asset (gains) losses and impairments, net	1		2		(4)		29
	4,706		3,310		13,466		9,237
Operating Income	545		405		1,286		1,080
Other (Income) and Deductions
Interest expense	171		156		486		477
Interest income	(10)		(6)		(26)		(16)
Non-operating retirement benefits, net	(5)		3		(13)		10
Loss on extinguishment of debt	—		376		—		384
Other income	(16)		(90)		(35)		(187)
Other expenses	12		30		56		50
	152		469		468		718
Income (Loss) Before Income Taxes	393		(64)		818		362
Income Tax Expense (Benefit) (Note 2)	6		(119)		—		(124)
Net Income from Continuing Operations	387		55		818		486
Income (Loss) from Discontinued Operations, Net of Taxes (Note 4)	—		(33)		—		112
Net Income	387		22		818		598
Less: Net Income (Loss) Attributable to Noncontrolling Interests
Continuing operations	—		(3)		—		(9)
Discontinued operations	—		—		—		6
Net Income Attributable to DTE Energy Company	$	387	$	25	$	818	$	601
Basic Earnings per Common Share
Continuing operations	2.00		0.30		4.22		2.55
Discontinued operations	—		(0.17)		—		0.55
Total	$	2.00	$	0.13	$	4.22	$	3.10
Diluted Earnings per Common Share
Continuing operations	1.99		0.30		4.21		2.55
Discontinued operations	—		(0.17)		—		0.55
Total	$	1.99	$	0.13	$	4.21	$	3.10
Weighted Average Common Shares Outstanding
Basic	193		193		193		193
Diluted	194		194		194		194

See Combined Notes to Consolidated Financial Statements (Unaudited)

5

DTE Energy Company

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions)
Net Income	$	387	$	22	$	818	$	598
Other comprehensive income, net of tax:
Benefit obligations, net of taxes of $—, $1, $2, and $2, respectively	2		2		7		5
Net unrealized gains on derivatives, net of taxes of $1, $1, $2, and $2, respectively	4		4		7		6
Other comprehensive income	6		6		14		11
Comprehensive income	393		28		832		609
Less: Comprehensive loss attributable to noncontrolling interests	—		(3)		—		(3)
Comprehensive Income Attributable to DTE Energy Company	$	393	$	31	$	832	$	612

See Combined Notes to Consolidated Financial Statements (Unaudited)

6

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited)

	September 30,		December 31,
	2022		2021
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	26	$	28
Restricted cash	25		7
Accounts receivable (less allowance for doubtful accounts of $95 and $92, respectively)
Customer	1,781		1,695
Other	199		135
Inventories
Fuel and gas	540		368
Materials, supplies, and other	508		490
Derivative assets	395		181
Regulatory assets	511		195
Other	325		218
	4,310		3,317
Investments
Nuclear decommissioning trust funds	1,764		2,071
Investments in equity method investees	169		187
Other	157		194
	2,090		2,452
Property
Property, plant, and equipment	38,550		37,083
Accumulated depreciation and amortization	(10,451)		(10,139)
	28,099		26,944
Other Assets
Goodwill	1,993		1,993
Regulatory assets	3,583		3,482
Securitized regulatory assets	214		—
Intangible assets	170		177
Notes receivable	316		310
Derivative assets	123		90
Prepaid postretirement costs	738		678
Operating lease right-of-use assets	91		97
Other	227		179
	7,455		7,006
Total Assets	$	41,954	$	39,719

See Combined Notes to Consolidated Financial Statements (Unaudited)

7

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)

	September 30,		December 31,
	2022		2021
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,619	$	1,414
Accrued interest	157		140
Dividends payable	171		171
Short-term borrowings	994		758
Current portion long-term debt, including securitization bonds and finance leases	1,425		2,874
Derivative liabilities	498		238
Regulatory liabilities	54		156
Operating lease liabilities	13		14
Other	535		581
	5,466		6,346
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	16,354		13,629
Securitization bonds	192		—
Junior subordinated debentures	883		883
Finance lease liabilities	13		19
	17,442		14,531
Other Liabilities
Deferred income taxes	2,313		2,163
Regulatory liabilities	2,731		3,106
Asset retirement obligations	3,425		3,162
Unamortized investment tax credit	183		158
Derivative liabilities	256		192
Accrued pension liability	268		339
Accrued postretirement liability	350		358
Nuclear decommissioning	272		321
Operating lease liabilities	69		74
Other	193		256
	10,060		10,129
Commitments and Contingencies (Notes 6 and 13)
Equity
Common stock (No par value, 400,000,000 shares authorized, and 193,741,991 and 193,747,509 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively)	5,337		5,379
Retained earnings	3,741		3,438
Accumulated other comprehensive loss	(98)		(112)
Total DTE Energy Company Equity	8,980		8,705
Noncontrolling interests	6		8
Total Equity	8,986		8,713
Total Liabilities and Equity	$	41,954	$	39,719

See Combined Notes to Consolidated Financial Statements (Unaudited)

8

DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended September 30,
	2022		2021
	(In millions)
Operating Activities
Net Income	$	818	$	598
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	1,093		1,092
Nuclear fuel amortization	26		44
Allowance for equity funds used during construction	(20)		(20)
Deferred income taxes	15		(36)
Equity (earnings) losses of equity method investees	15		(90)
Dividends from equity method investees	4		78
Loss on extinguishment of debt	—		384
Asset (gains) losses and impairments, net	(4)		46
Changes in assets and liabilities:
Accounts receivable, net	(150)		(8)
Inventories	(204)		(209)
Prepaid postretirement benefit costs	(60)