DTE Energy 2014 Annual Report Download - page 95

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As of December 31, 2014, 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, renewable energy contracts and energy trading contracts. The
Company estimates that these commitments will be approximately $9.0 billion from 2015 through 2051 as detailed in the following table:
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2015 $ 2,384
2016 1,258
2017 742
2018 477
2019 431
2020 and thereafter 3,723
$ 9,015
The Company also estimates that 2015 capital expenditures and contributions to equity method investments will be approximately $2.6 billion. The
Company has made certain commitments in connection with expected capital expenditures.
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The Company purchases and sells electricity, natural 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
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.
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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.
For a discussion of contingencies related to regulatory matters and derivatives see Notes 8 and 12 to the Consolidated Financial Statements,
"Regulatory Matters" and "Financial and Other Derivative Instruments".
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The Company has qualified defined benefit retirement plans for eligible represented and non-represented employees. The plans are noncontributory,
and 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.
Effective January 1, 2012 for non-represented employees, and in June 2011 and March 2013 for the majority of represented employees, the Company
discontinued offering a defined benefit retirement plan to newly hired employees. In its place, the Company will annually contribute an amount equivalent
to 4% (8% for certain DTE Gas represented employees) of an employee's eligible pay to the employee's defined contribution retirement savings plan.
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