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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Assets and liabilities measured and recorded at fair value on a recurring basis
The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis as of September 30, 2015 and December 31, 2014:
 
September 30, 2015
 
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Netting
(a)
 
Net Balance
 
Level 1
 
Level 2
 
Level 3
 
Netting
(a)
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents (b)
$
11

 
$
3

 
$
—

 
$
—

 
$
14

 
$
13

 
$
99

 
$
—

 
$
—

 
$
112

Nuclear decommissioning trusts
742

 
457

 
—

 
—

 
1,199

 
792

 
449

 
—

 
—

 
1,241

Other investments (c)
127

 
18

 
—

 
—

 
145

 
100

 
50

 
—

 
—

 
150

Derivative assets:
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
Commodity Contracts:
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
162

 
87

 
54

 
(244
)
 
59

 
555

 
140

 
92

 
(681
)
 
106

Electricity
—

 
204

 
47

 
(179
)
 
72

 
—

 
295

 
47

 
(280
)
 
62

Other
17

 
—

 
5

 
(17
)
 
5

 
42

 
—

 
3

 
(42
)
 
3

Other derivative contracts (d)
—

 
10

 
—

 
(8
)
 
2

 
—

 
4

 
—

 
(3
)
 
1

Total derivative assets
179

 
301

 
106

 
(448
)
 
138

 
597

 
439

 
142

 
(1,006
)
 
172

Total
$
1,059

 
$
779

 
$
106

 
$
(448
)
 
$
1,496

 
$
1,502

 
$
1,037

 
$
142

 
$
(1,006
)
 
$
1,675

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts:
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
Natural Gas
$
(195
)
 
$
(49
)
 
$
(33
)
 
$
249

 
$
(28
)
 
$
(578
)
 
$
(78
)
 
$
(62
)
 
$
679

 
$
(39
)
Electricity
—

 
(200
)
 
(44
)
 
190

 
(54
)
 
—

 
(290
)
 
(52
)
 
298

 
(44
)
Other
(13
)
 
(4
)
 
(6
)
 
22

 
(1
)
 
(32
)
 
(9
)
 
(4
)
 
45

 
—

Other derivative contracts (d)
—

 
(7
)
 
—

 
7

 
—

 
—

 
(5
)
 
—

 
3

 
(2
)
Total derivative liabilities
(208
)
 
(260
)
 
(83
)
 
468

 
(83
)
 
(610
)
 
(382
)
 
(118
)
 
1,025

 
(85
)
Total
$
(208
)
 
$
(260
)
 
$
(83
)
 
$
468

 
$
(83
)
 
$
(610
)
 
$
(382
)
 
$
(118
)
 
$
1,025

 
$
(85
)
Net Assets (Liabilities) at the end of the period
$
851

 
$
519

 
$
23

 
$
20

 
$
1,413

 
$
892

 
$
655

 
$
24

 
$
19

 
$
1,590

Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
159

 
$
225

 
$
78

 
$
(358
)
 
$
104

 
$
582

 
$
504

 
$
109

 
$
(955
)
 
$
240

Noncurrent (e)
900

 
554

 
28

 
(90
)
 
1,392

 
920

 
533

 
33

 
(51
)
 
1,435

Total Assets
$
1,059

 
$
779

 
$
106

 
$
(448
)
 
$
1,496

 
$
1,502

 
$
1,037

 
$
142

 
$
(1,006
)
 
$
1,675

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(160
)
 
$
(198
)
 
$
(61
)
 
$
363

 
$
(56
)
 
$
(572
)
 
$
(357
)
 
$
(112
)
 
$
964

 
$
(77
)
Noncurrent
(48
)
 
(62
)
 
(22
)
 
105

 
(27
)
 
(38
)
 
(25
)
 
(6
)
 
61

 
(8
)
Total Liabilities
$
(208
)
 
$
(260
)
 
$
(83
)
 
$
468

 
$
(83
)
 
$
(610
)
 
$
(382
)
 
$
(118
)
 
$
1,025

 
$
(85
)
Net Assets (Liabilities) at the end of the period
$
851

 
$
519

 
$
23

 
$
20

 
$
1,413

 
$
892

 
$
655

 
$
24

 
$
19

 
$
1,590

_______________________________________
(a)
Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.
(b)
At September 30, 2015, available-for-sale securities of $14 million included $6 million and $8 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2014, available-for-sale securities of $112 million, included $105 million and $7 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(c)
Excludes cash surrender value of life insurance investments.
(d)
Primarily includes foreign currency exchange contracts.
(e)
Includes $145 million and $150 million at September 30, 2015 and December 31, 2014, respectively, of other investments that are included in DTE Energy's Consolidated Statements of Financial Position in Other investments.
The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of September 30, 2015 and December 31, 2014:
 
September 30, 2015
 
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Net Balance
 
Level 1
 
Level 2
 
Level 3
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents (a)
$
5

 
$
3

 
$
—

 
$
8

 
$
5

 
$
99

 
$
—

 
$
104

Nuclear decommissioning trusts
742

 
457

 
—

 
1,199

 
792

 
449

 
—

 
1,241

Other investments
7

 
—

 
—

 
7

 
97

 
50

 
—

 
147

Derivative assets — FTRs
—

 
—

 
5

 
5

 
—

 
—

 
3

 
3

Total
$
754

 
$
460

 
$
5

 
$
1,219

 
$
894

 
$
598

 
$
3

 
$
1,495

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
5

 
$
3

 
$
5

 
$
13

 
$
5

 
$
99

 
$
3

 
$
107

Noncurrent
749

 
457

 
—

 
1,206

 
889

 
499

 
—

 
1,388

Total Assets
$
754

 
$
460

 
$
5

 
$
1,219

 
$
894

 
$
598

 
$
3

 
$
1,495

_______________________________________
(a)
At September 30, 2015, available-for-sale securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2014, available-for-sale securities of $104 million included $96 million and $8 million of cash equivalents included in Restricted cash and Other investments, respectively, on DTE Electric's Consolidated Statements of Financial Position.
Fair value reconciliation of level 3 assets and liabilities measured at fair value on a recurring basis
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy for the three and nine months ended September 30, 2015 and 2014:
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of June 30
$
(8
)
 
$
3

 
$
1

 
$
(4
)
 
$
(20
)
 
$
(27
)
 
$
7

 
$
(40
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
(4
)
 
—

 
—

 
(4
)
Total gains (losses):
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Included in earnings
24

 
18

 
(3
)
 
39

 
(2
)
 
13

 
(1
)
 
10

Recorded in regulatory assets/liabilities
—

 
—

 
3

 
3

 
—

 
—

 
(3
)
 
(3
)
Purchases, issuances, and settlements:
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Purchases
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Issuances
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Settlements
5

 
(18
)
 
(2
)
 
(15
)
 
(3
)
 
(3
)
 
—

 
(6
)
Net Assets (Liabilities) as of September 30
$
21

 
$
3

 
$
(1
)
 
$
23

 
$
(28
)
 
$
(17
)
 
$
3

 
$
(42
)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2015 and 2014 and reflected in Operating revenues and Fuel, purchased power and gas in DTE Energy's Consolidated Statements of Operations
$
18

 
$
(3
)
 
$
(3
)
 
$
12

 
$
(7
)
 
$
14

 
$
(1
)
 
$
6

 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
30

 
$
(5
)
 
$
(1
)
 
$
24

 
$
(52
)
 
$
13

 
$
3

 
$
(36
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
2

 
—

 
—

 
2

Total gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(11
)
 
42

 
(5
)
 
26

 
(45
)
 
26

 
(2
)
 
(21
)
Recorded in regulatory assets/liabilities
—

 
—

 
14

 
14

 
—

 
—

 
9

 
9

Purchases, issuances, and settlements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases
—

 
2

 
—

 
2

 
—

 
1

 
—

 
1

Issuances
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Settlements
2

 
(36
)
 
(9
)
 
(43
)
 
67

 
(55
)
 
(7
)
 
5

Net Assets (Liabilities) as of September 30
$
21

 
$
3

 
$
(1
)
 
$
23

 
$
(28
)
 
$
(17
)
 
$
3

 
$
(42
)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2015 and 2014 and reflected in Operating revenues and Fuel, purchased power and gas in DTE Energy's Consolidated Statements of Operations
$
(94
)
 
$
8

 
$
(4
)
 
$
(90
)
 
$
(23
)
 
$
(6
)
 
$
(1
)
 
$
(30
)
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Electric for the three and nine months ended September 30, 2015 and 2014:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In millions)
Net Assets as of beginning of period
$
5

 
$
7

 
$
3

 
$
3

Change in fair value recorded in regulatory assets/liabilities
3

 
(3
)
 
14

 
9

Purchases, issuances, and settlements:
 
 
 
 
 
 
 
Settlements
(3
)
 
—

 
(12
)
 
(8
)
Net Assets as of September 30
$
5

 
$
4

 
$
5

 
$
4

The amount of total gains (losses) included in Regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2015 and 2014 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
1

 
$
(1
)
 
$
5

 
$
4
Unobservable inputs related to Level 3 assets and liabilities
The following table presents the unobservable inputs related to DTE Energy's Level 3 assets and liabilities as of September 30, 2015:
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
54

 
$
(33
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.73
) —
 
$
6.57
/MMBtu
 
$
(0.11
)/MMBtu
Electricity
 
$
47

 
$
(44
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(8
) —
 
$
15
/MWh
 
$
1
/MWh

The following table presents the unobservable inputs related to DTE Energy's Level 3 assets and liabilities as of December 31, 2014:
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
92

 
$
(62
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(2.28
) —
 
$
7.83
/MMBtu
 
$
(0.22
)/MMBtu
Electricity
 
$
47

 
$
(52
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(14
) —
 
$
15
/MWh
 
$
4
/MWh
Carrying amount of fair value of financial instruments
The following table presents the carrying amount and fair value of financial instruments for DTE Energy as of September 30, 2015 and December 31, 2014:
 
September 30, 2015
 
December 31, 2014
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable, excluding capital leases
$
34

 
$
—

 
$
—

 
$
34

 
$
41

 
$
—

 
$
—

 
$
41

Dividends payable
$
131

 
$
131

 
$
—

 
$
—

 
$
122

 
$
122

 
$
—

 
$
—

Short-term borrowings
$
185

 
$
—

 
$
185

 
$
—

 
$
398

 
$
—

 
$
398

 
$
—

Long-term debt, excluding capital leases
$
9,310

 
$
480

 
$
8,289

 
$
1,186

 
$
8,606

 
$
489

 
$
8,308

 
$
706


The following table presents the carrying amount and fair value of financial instruments for DTE Electric as of September 30, 2015 and December 31, 2014:
 
September 30, 2015
 
December 31, 2014
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable, excluding capital leases
$
6

 
$
—

 
$
—

 
$
6

 
$
12

 
$
—

 
$
—

 
$
12

Notes receivable — affiliates
$
4

 
$
—

 
$
—

 
$
4

 
$
8

 
$
—

 
$
—

 
$
8

Short-term borrowings — affiliates
$
68

 
$
—

 
$
—

 
$
68

 
$
84

 
$
—

 
$
—

 
$
84

Short-term borrowings — other
$
46

 
$
—

 
$
46

 
$
—

 
50

 
$
—

 
$
50

 
$
—

Long-term debt, excluding capital leases
$
5,644

 
$
—

 
$
5,496

 
$
562

 
$
5,259

 
$
—

 
$
5,341

 
$
496
Fair value of nuclear decommissioning trust fund assets
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
 
September 30, 2015
 
December 31, 2014
 
(In millions)
Fermi 2
$
1,175

 
$
1,221

Fermi 1
3

 
3

Low-level radioactive waste
21

 
17

Total
$
1,199

 
$
1,241
Schedule of realized gain (loss)
The following table sets forth DTE Electric's gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In millions)
Realized gains
$
8

 
$
8

 
$
30

 
$
24

Realized losses
$
(10
)
 
$
(3
)
 
$
(23
)
 
$
(14
)
Proceeds from sales of securities
$
187

 
$
177

 
$
627

 
$
652
Fair value and unrealized gains for nuclear decommissioning trust fund
The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:
 
September 30, 2015
 
December 31, 2014
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
708

 
$
169

 
$
(74
)
 
$
756

 
$
204

 
$
(39
)
Debt securities
484

 
18

 
(2
)
 
474

 
21

 
(2
)
Cash and cash equivalents
7

 
—

 
—

 
11

 
—

 
—

 
$
1,199

 
$
187

 
$
(76
)
 
$
1,241

 
$
225

 
$
(41
)