Short-Term Credit Arrangements and Borrowings (Notes)

6 Months Ended

Jun. 30, 2013

Short-term Debt [Abstract]

SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Electric has a $300 million unsecured revolving credit agreement with a syndicate of 19 banks that can be used for general corporate borrowings, but is intended to provide liquidity support for the Company's commercial paper program. No one bank provides more than 8.7% of the commitment in the facility. Borrowings under the facility are available at prevailing short-term interest rates. The facility will expire in April 2018. At June 30, 2013, there was $96 million outstanding against the facility, while there was $130 million outstanding against the facility at December 31, 2012.

The agreement requires the Company to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In the agreement, “total funded debt” means all indebtedness of the Company and its consolidatedsubsidiaries, including capital lease obligations, hedge agreements and guarantees of third parties' debt, but excluding contingent obligations and nonrecourse and junior subordinated debt. “Capitalization” means the sum of (a) total funded debt plus (b) “consolidated net worth,” which is equal to consolidated total stockholders' equity of the Company and its consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At June 30, 2013, the total funded debt to total capitalization ratio for DTE Electric was 0.53 to 1 and in compliance with this financial covenant.