DTE Energy 2012 Annual Report Download - page 97

Table of Contents


Labor Contracts
There are several bargaining units for the Company’s approximately 4,900 represented employees. The majority of represented employees are under
contracts that expire in June and October 2013.
Purchase Commitments
As of December 31, 2012, the Company was party to numerous long-term purchase commitments relating to a variety of goods and services required for
the Company’s business. These agreements primarily consist of fuel supply commitments and energy trading contracts. The Company estimates that these
commitments will be approximately $4.4 billion from 2013 through 2052 as detailed in the following table:

2013 $1,937
2014 1,199
2015 424
2016 147
2017 88
2018 — 2052 582
$4,377
The Company also estimates that 2013 capital expenditures will be approximately $ 2.2 billion. The Company has made certain commitments in
connection with expected capital expenditures.
Bankruptcies
The Company purchases and sells electricity, gas, coal, coke and other energy products from and to governmental entities and numerous companies
operating in the steel, automotive, energy, retail, financial and other industries. Certain of its customers have filed for bankruptcy protection under Chapter 11
of the U.S. Bankruptcy Code. The Company regularly reviews contingent matters relating to these customers and its purchase and sale contracts and records
provisions for amounts considered at risk of probable loss. The Company believes its accrued amounts are adequate for probable loss. The final resolution of
these matters may have a material effect on its consolidated financial statements.
Other Contingencies
The Company is involved in certain other legal, regulatory, administrative and environmental proceedings before various courts, arbitration panels and
governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additional
environmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters. The Company cannot predict the final
disposition of such proceedings. The Company regularly reviews legal matters and records provisions for claims that it can estimate and are considered
probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Company’s operations or financial statements in
the periods they are resolved.
See Notes 4 and 11 for a discussion of contingencies related to derivatives and regulatory matters.

Pension Plan Benefits
The Company has qualified defined benefit retirement plans for eligible represented and non-represented employees. The plans are noncontributory and
cover substantially all employees. The plans provide traditional retirement benefits based on the employees’ years of benefit service, average final
compensation and age at retirement. In addition, certain represented and non-represented employees are covered under cash balance provisions that determine
benefits on annual employer contributions and interest credits. The Company also maintains supplemental nonqualified, noncontributory, retirement benefit
plans for selected management employees. These plans provide for benefits that supplement those provided by DTE Energy’s other retirement plans.
95