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 March 31, 2023

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:

Registrant	Title of Each Class	Trading Symbol(s)	Name of Exchange on which Registered
DTE Energy Company (DTE Energy)	Common stock, without par value	DTE	New York Stock Exchange
DTE Energy	2017 Series E 5.25% Junior Subordinated Debentures due 2077	DTW	New York Stock Exchange
DTE Energy	2020 Series G 4.375% Junior Subordinated Debentures due 2080	DTB	New York Stock Exchange
DTE Energy	2021 Series E 4.375% Junior Subordinated Debentures due 2081	DTG	New York Stock Exchange
DTE Electric Company (DTE Electric)	None		None

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 March 31, 2023:

Registrant	Description	Shares
DTE Energy	Common Stock, without par value	206,109,174
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)	11
	Combined Notes to Consolidated Financial Statements (Unaudited)	17
	Note 1 — Organization and Basis of Presentation	17
	Note 2 — Significant Accounting Policies	20
	Note 3 — New Accounting Pronouncements	24
	Note 4 — Revenue	24
	Note 5 — Regulatory Matters	26
	Note 6 — Earnings Per Share	27
	Note 7 — Fair Value	28
	Note 8 — Financial and Other Derivative Instruments	35
	Note 9 — Long-Term Debt	40
	Note 10 — Short-Term Credit Arrangements and Borrowings	40
	Note 11 — Leases	41
	Note 12 — Commitments and Contingencies	42
	Note 13 — Retirement Benefits and Trusteed Assets	47
	Note 14 — Segment and Related Information	48
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	67
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 6.	Exhibits	69
	Signatures	70

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
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 former Gas Storage and Pipelines segment 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
MGP	Manufactured Gas Plant
MPSC	Michigan Public Service Commission
MTM	Mark-to-market
NAV	Net Asset Value

1

DEFINITIONS

Net zero	Goal for DTE Energy's utility operations and gas suppliers at DTE Gas that any carbon emissions put into the atmosphere will be balanced by those taken out of the atmosphere. Achieving this goal will include collective efforts to reduce carbon emissions and actions to offset 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
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
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 2022 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:

•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;

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

3

•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 March 31,
	2023		2022
	(In millions, except per share amounts)
Operating Revenues
Utility operations	$	2,060	$	2,234
Non-utility operations	1,719		2,343
	3,779		4,577
Operating Expenses
Fuel, purchased power, and gas — utility	584		700
Fuel, purchased power, gas, and other — non-utility	1,437		2,242
Operation and maintenance	600		596
Depreciation and amortization	385		358
Taxes other than income	122		123
Asset (gains) losses and impairments, net	(1)		—
	3,127		4,019
Operating Income	652		558
Other (Income) and Deductions
Interest expense	191		154
Interest income	(17)		(8)
Non-operating retirement benefits, net	3		(3)
Other income	(26)		(8)
Other expenses	6		13
	157		148
Income Before Income Taxes	495		410
Income Tax Expense	50		16
Net Income Attributable to DTE Energy Company	$	445	$	394
Basic Earnings per Common Share
Net Income Attributable to DTE Energy Company	$	2.16	$	2.03
Diluted Earnings per Common Share
Net Income Attributable to DTE Energy Company	$	2.16	$	2.03
Weighted Average Common Shares Outstanding
Basic	206		193
Diluted	206		194

See Combined Notes to Consolidated Financial Statements (Unaudited)

5

DTE Energy Company

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
	2023		2022
	(In millions)
Net Income	$	445	$	394
Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $— and $1, respectively	1		3
Net unrealized losses on derivatives, net of taxes of $(1) and $—, respectively	(4)		—
Other comprehensive income (loss)	(3)		3
Comprehensive Income Attributable to DTE Energy Company	$	442	$	397

See Combined Notes to Consolidated Financial Statements (Unaudited)

6

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited)

	March 31,		December 31,
	2023		2022
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	115	$	33
Restricted cash	22		10
Accounts receivable (less allowance for doubtful accounts of $84 and $79, respectively)
Customer	1,515		2,038
Other	178		144
Inventories
Fuel and gas	285		433
Materials, supplies, and other	521		509
Derivative assets	206		328
Regulatory assets	434		450
Other	261		235
	3,537		4,180
Investments
Nuclear decommissioning trust funds	1,896		1,825
Investments in equity method investees	173		165
Other	156		165
	2,225		2,155
Property
Property, plant, and equipment	39,901		39,346
Accumulated depreciation and amortization	(10,714)		(10,579)
	29,187		28,767
Other Assets
Goodwill	1,993		1,993
Regulatory assets	3,869		3,886
Securitized regulatory assets	197		206
Intangible assets	164		166
Notes receivable	334		331
Derivative assets	68		105
Prepaid postretirement costs	593		571
Operating lease right-of-use assets	86		89
Other	265		234
	7,569		7,581
Total Assets	$	42,518	$	42,683

See Combined Notes to Consolidated Financial Statements (Unaudited)

7

DTE Energy Company

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

	March 31,		December 31,
	2023		2022
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,085	$	1,604
Accrued interest	174		154
Dividends payable	196		196
Short-term borrowings	130		1,162
Current portion long-term debt, including securitization bonds and finance leases	1,723		1,124
Derivative liabilities	143		342
Gas inventory equalization	100		—
Regulatory liabilities	39		34
Operating lease liabilities	12		13
Other	434		544
	4,036		5,173
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	16,597		15,807
Securitization bonds	172		172
Junior subordinated debentures	883		883
Finance lease liabilities	10		11
	17,662		16,873
Other Liabilities
Deferred income taxes	2,466		2,394
Regulatory liabilities	2,673		2,673
Asset retirement obligations	3,509		3,460
Unamortized investment tax credit	182		182
Derivative liabilities	177		315
Accrued pension liability	346		378
Accrued postretirement liability	279		287
Nuclear decommissioning	294		282
Operating lease liabilities	65		68
Other	183		197
	10,174		10,236
Commitments and Contingencies (Notes 5 and 12)
Equity
Common stock (No par value, 400,000,000 shares authorized, and 206,109,174 and 205,632,393 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively)	6,652		6,651
Retained earnings	4,055		3,808
Accumulated other comprehensive loss	(65)		(62)
Total DTE Energy Company Equity	10,642		10,397
Noncontrolling interests	4		4
Total Equity	10,646		10,401
Total Liabilities and Equity	$	42,518	$	42,683

See Combined Notes to Consolidated Financial Statements (Unaudited)

8

DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2023		2022
	(In millions)
Operating Activities
Net Income	$	445	$	394
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	385		358
Nuclear fuel amortization	16		3
Allowance for equity funds used during construction	(9)		(8)
Deferred income taxes	52		18
Equity (earnings) losses of equity method investees	(4)		11
Dividends from equity method investees	1		1
Asset (gains) losses and impairments, net	(1)		—
Changes in assets and liabilities:
Accounts receivable, net	486		18
Inventories	133		129
Prepaid postretirement benefit costs	(22)		(27)
Accounts payable	(419)		(42)
Gas inventory equalization	100		108
Accrued pension liability	(32)		(25)
Accrued postretirement liability	(8)		(8)
Derivative assets and liabilities	(178)		108
Regulatory assets and liabilities	159		(154)
Other current and noncurrent assets and liabilities	(180)		(76)
Net cash from operating activities	924		808
Investing Activities
Plant and equipment expenditures — utility	(924)		(737)
Plant and equipment expenditures — non-utility	(13)		(27)
Proceeds from sale of nuclear decommissioning trust fund assets	166		207
Investment in nuclear decommissioning trust funds	(168)		(209)
Distributions from equity method investees	4		2
Contributions to equity method investees	(10)		(1)
Notes receivable	14		(8)
Other	(50)		(9)
Net cash used for investing activities	(981)		(782)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs	1,386		1,119
Redemption of long-term debt	—		(250)
Short-term borrowings, net	(1,032)		(514)
Repurchase of common stock	—		(55)
Dividends paid on common stock	(188)		(171)
Other	(15)		(34)
Net cash from financing activities	151		95
Net Increase in Cash, Cash Equivalents, and Restricted Cash	94		121
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	43		35
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	137	$	156
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	333	$	300

See Combined Notes to Consolidated Financial Statements (Unaudited)

9

DTE Energy Company

Consolidated Statements of Changes in Equity (Unaudited)

				Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Common Stock
	Shares	Amount								Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2022	205,632	$	6,651	$	3,808	$	(62)	$	4	$	10,401
Net Income	—	—		445		—		—		445
Dividends declared on common stock ($0.95 per Common Share)	—	—		(196)		—		—		(196)
Issuance of common stock	76	9		—		—		—		9
Other comprehensive loss, net of tax	—	—		—		(3)		—		(3)
Stock-based compensation and other	401	(8)		(2)		—		—		(10)
Balance, March 31, 2023	206,109	$	6,652	$	4,055	$	(65)	$	4	$	10,646

See Combined Notes to Consolidated Financial Statements (Unaudited)

				Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests
	Common Stock
	Shares	Amount								Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2021	193,748	$	5,379	$	3,438	$	(112)	$	8	$	8,713
Net Income	—	—		394		—		—		394
Dividends declared on common stock ($0.89 per Common Share)	—	—		(171)		—		—		(171)
Repurchase of common stock	(465)	(55)		—		—		—		(55)
Other comprehensive income, net of tax	—	—		—		3		—		3
Stock-based compensation, net distributions to noncontrolling interests, and other	456	(14)		1		—		(4)		(17)
Balance, March 31, 2022	193,739	$	5,310	$	3,662	$	(109)	$	4	$	8,867

See Combined Notes to Consolidated Financial Statements (Unaudited)

10

DTE Electric Company

Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
	2023		2022
	(In millions)
Operating Revenues — Utility operations	$	1,375	$	1,486
Operating Expenses
Fuel and purchased power — utility	365		440
Operation and maintenance	411		381
Depreciation and amortization	317		294
Taxes other than income	84		88
	1,177		1,203
Operating Income	198		283
Other (Income) and Deductions
Interest expense	102		87
Interest income	(6)		—
Non-operating retirement benefits, net	(1)		(1)
Other income	(20)		(16)
Other expenses	6		9
	81		79
Income Before Income Taxes	117		204
Income Tax Expense	17		3
Net Income	$	100	$	201

See Combined Notes to Consolidated Financial Statements (Unaudited)

11