“Interest Expense A net decrease in interest expense of $368 million was primarily due to: • $171 million benefit related to cost recoveries authorized under the TKM Settlement Agreement; • $243 million benefit related to cost recoveries under the Woolsey Settlement Agreement; partially offset by: • $38 million pass-through expense mainly associated with wildfire mitigation efforts and utility owned energy storage projects (offset in "Operating Revenue" above); • $8 million higher interest expense from higher borrowings.”
“The increase in both periods was due to the following: Three Months (In millions) Purchased power - higher prices and higher volumes primarily due to lower generation $ 67 Higher transmission expenses 16 Gas - higher consumption partially offset by lower prices 7 Nuclear fuel - lower amortization due to refueling outage in 2026 (10) Coal - lower consumption and prices (37) Other 1 $ 44 57 Table of Contents Six Months (In millions) Gas - higher consumption and prices $ 116 Purchased power - higher prices and higher volumes primarily due to lower generation 98 Higher transmission expenses 26 Nuclear fuel - lower amortization due to refueling outage in 2026 (14) Coal - lower consumption and prices (84) Other 2 $ 144 Fuel and purchased power — non-utility expense increased $5 million and $18 million in the three and six months ended June 30, 2026, respectively.”
“These procedures also included, among others, (i) evaluating the reasonableness of management’s assessment of impacts arising from correspondence with regulators and changes in laws and regulations; (ii) evaluating the sufficiency of the disclosures in the consolidated financial statements; and (iii) testing, on a sample basis, the regulatory assets and liabilities, including those subject to pending rate orders and regulatory proceedings, by considering (a) the provisions and formulas outlined in rate orders; (b) other regulatory correspondence; and (c) application of relevant regulatory precedents. /s/ PricewaterhouseCoopers LLP Detroit, Michigan February 17, 2026 We have served as the Company’s auditor since 2008.”