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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2016
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 March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
December 31, 2015
 
Level
1
 
Level
2
 
Level
3
 
Other
(a)
 
Netting
(b)
 
Net Balance
 
Level
1
 
Level
2
 
Level
3
 
Other
(a)
 
Netting
(b)
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents (c)
$
11

 
$
3

 
$
—

 
$
—

 
$
—

 
$
14

 
$
13

 
$
3

 
$
—

 
$
—

 
$
—

 
$
16

Nuclear decommissioning trusts
752

 
491

 
—

 
3

 
—

 
1,246

 
759

 
473

 
—

 
4

 
—

 
1,236

Other investments (d)
154

 
—

 
—

 
—

 
—

 
154

 
149

 
—

 
—

 
—

 
—

 
149

Derivative assets:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 
Commodity Contracts:
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Natural Gas
133

 
89

 
76

 
—

 
(216
)
 
82

 
193

 
91

 
103

 
—

 
(285
)
 
102

Electricity
—

 
305

 
72

 
—

 
(299
)
 
78

 
—

 
239

 
68

 
—

 
(232
)
 
75

Other
3

 
—

 
1

 
—

 
(3
)
 
1

 
2

 
—

 
3

 
—

 
(2
)
 
3

Foreign currency exchange contracts
—

 
6

 
—

 
—

 
(5
)
 
1

 
—

 
12

 
—

 
—

 
(9
)
 
3

Total derivative assets
136

 
400

 
149


—

 
(523
)
 
162

 
195

 
342

 
174

 
—


(528
)
 
183

Total
$
1,053

 
$
894

 
$
149


$
3

 
$
(523
)
 
$
1,576

 
$
1,116

 
$
818

 
$
174

 
$
4


$
(528
)
 
$
1,584

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts:
 

 
 

 
 

 
 
 
 

 
 
 
 

 
 

 
 

 
 
 
 

 
 
Natural Gas
$
(188
)
 
$
(52
)
 
$
(110
)
 
$
—

 
$
258

 
$
(92
)
 
$
(218
)
 
$
(57
)
 
$
(108
)
 
$
—

 
$
294

 
$
(89
)
Electricity
—

 
(308
)
 
(88
)
 
—

 
327

 
(69
)
 
—

 
(243
)
 
(62
)
 
—

 
253

 
(52
)
Other
(5
)
 
—

 
(8
)
 
—

 
12

 
(1
)
 
(2
)
 
—

 
(8
)
 
—

 
8

 
(2
)
Foreign currency exchange contracts
—

 
(4
)
 
—

 
—

 
3

 
(1
)
 
—

 
(7
)
 
—

 
—

 
7

 
—

Total derivative liabilities
(193
)
 
(364
)
 
(206
)
 
—

 
600

 
(163
)
 
(220
)
 
(307
)
 
(178
)
 
—

 
562

 
(143
)
Total
$
(193
)
 
$
(364
)
 
$
(206
)
 
$
—

 
$
600

 
$
(163
)
 
$
(220
)
 
$
(307
)
 
$
(178
)
 
$
—

 
$
562

 
$
(143
)
Net Assets (Liabilities) at the end of the period
$
860

 
$
530

 
$
(57
)
 
$
3

 
$
77

 
$
1,413

 
$
896

 
$
511

 
$
(4
)
 
$
4

 
$
34

 
$
1,441

Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
118

 
$
325

 
$
98

 
$
—

 
$
(418
)
 
$
123

 
$
174

 
$
284

 
$
128

 
$
—

 
$
(441
)
 
$
145

Noncurrent
935

 
569

 
51

 
3

 
(105
)
 
1,453

 
942

 
534

 
46

 
4

 
(87
)
 
1,439

Total Assets
$
1,053

 
$
894

 
$
149

 
$
3

 
$
(523
)
 
$
1,576

 
$
1,116

 
$
818

 
$
174

 
$
4

 
$
(528
)
 
$
1,584

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(150
)
 
$
(296
)
 
$
(99
)
 
$
—

 
$
478

 
$
(67
)
 
$
(174
)
 
$
(260
)
 
$
(87
)
 
$
—

 
$
464

 
$
(57
)
Noncurrent
(43
)
 
(68
)
 
(107
)
 
—

 
122

 
(96
)
 
(46
)
 
(47
)
 
(91
)
 
—

 
98

 
(86
)
Total Liabilities
$
(193
)
 
$
(364
)
 
$
(206
)
 
$
—

 
$
600

 
$
(163
)
 
$
(220
)
 
$
(307
)
 
$
(178
)
 
$
—

 
$
562

 
$
(143
)
Net Assets (Liabilities) at the end of the period
$
860

 
$
530

 
$
(57
)
 
$
3

 
$
77

 
$
1,413

 
$
896

 
$
511

 
$
(4
)
 
$
4

 
$
34

 
$
1,441

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
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.
(c)
At March 31, 2016, available-for-sale securities of $14 million included $7 million and $7 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2015, available-for-sale securities of $16 million, included $8 million and $8 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(d)
Excludes cash surrender value of life insurance investments.
The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
 
Other
(a)
 
Net Balance
 
Level 1
 
Level 2
 
Level 3
 
Other
(a)
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents (b)
$
4

 
$
3

 
$
—

 
$
—

 
$
7

 
$
5

 
$
3

 
$
—

 
$
—

 
$
8

Nuclear decommissioning trusts
752

 
491

 
—

 
3

 
1,246

 
759

 
473

 
—

 
4

 
1,236

Other investments
8

 
—

 
—

 
—

 
8

 
8

 
—

 
—

 
—

 
8

Derivative assets — FTRs
—

 
—

 
1

 
—

 
1

 
—

 
—

 
3

 
—

 
3

Total
$
764

 
$
494

 
$
1

 
$
3

 
$
1,262

 
$
772

 
$
476

 
$
3

 
$
4

 
$
1,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
4

 
$
3

 
$
1

 
$
—

 
$
8

 
$
5

 
$
3

 
$
3

 
$
—

 
$
11

Noncurrent
760

 
491

 
—

 
3

 
1,254

 
767

 
473

 
—

 
4

 
1,244

Total Assets
$
764

 
$
494

 
$
1

 
$
3

 
$
1,262

 
$
772

 
$
476

 
$
3

 
$
4

 
$
1,255

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
At March 31, 2016, available-for-sale securities of $7 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 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.
Fair value reconciliation of level 3 assets and liabilities measured at fair value on a recurring basis
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy for the three months ended March 31, 2016 and 2015:
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
(5
)
 
$
6

 
$
(5
)
 
$
(4
)
 
$
30

 
$
(5
)
 
$
(1
)
 
$
24

Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
(1
)
 
(1
)
Transfers from Level 3 into Level 2
(1
)
 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

Total gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(20
)
 
(58
)
 
(1
)
 
(79
)
 
(29
)
 
7

 
(2
)
 
(24
)
Recorded in Regulatory assets
—

 
—

 
(2
)
 
(2
)
 
—

 
—

 
(2
)
 
(2
)
Purchases, issuances, and settlements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
(8
)
 
36

 
1

 
29

 
(1
)
 
(9
)
 
1

 
(9
)
Net Assets (Liabilities) as of March 31
$
(34
)
 
$
(16
)
 
$
(7
)
 
$
(57
)
 
$
—

 
$
(7
)
 
$
(5
)
 
$
(12
)
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 March 31, 2016 and 2015 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(72
)
 
$
(3
)
 
$
(1
)
 
$
(76
)
 
$
(91
)
 
$
(3
)
 
$
(2
)
 
$
(96
)
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 months ended March 31, 2016 and 2015:
 
Three Months Ended March 31,
 
2016
 
2015
 
(In millions)
Net Assets as of December 31
$
3

 
$
3

Change in fair value recorded in Regulatory assets
(2
)
 
(2
)
Purchases, issuances, and settlements:
 
 
 
Settlements
—

 
—

Net Assets as of March 31
$
1

 
$
1

The amount of total gains (losses) included in Regulatory assets attributed to the change in unrealized gains (losses) related to assets held at March 31, 2016 and 2015 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
—

 
$
—
Unobservable inputs related to Level 3 assets and liabilities
The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities as of March 31, 2016 and December 31, 2015:
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
76

 
$
(110
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.21
) —
 
$
3.62
/MMBtu
 
$
(0.12
)/MMBtu
Electricity
 
$
72

 
$
(88
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(14
) —
 
$
13
/MWh
 
$
1
/MWh

 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
103

 
$
(108
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.50
) —
 
$
2.77
/MMBtu
 
$
(0.19
)/MMBtu
Electricity
 
$
68

 
$
(62
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(11
) —
 
$
14
/MWh
 
$
2
/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 March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
December 31, 2015
 
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
$
32

 
$
—

 
$
—

 
$
32

 
$
32

 
$
—

 
$
—

 
$
32

Dividends payable
$
131

 
$
131

 
$
—

 
$
—

 
$
131

 
$
131

 
$
—

 
$
—

Short-term borrowings
$
365

 
$
—

 
$
365

 
$
—

 
$
499

 
$
—

 
$
499

 
$
—

Long-term debt, excluding capital leases
$
9,201

 
$
495

 
$
8,353

 
$
1,299

 
$
9,210

 
$
496

 
$
8,136

 
$
1,203


The following table presents the carrying amount and fair value of financial instruments for DTE Electric as of March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
December 31, 2015
 
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
$
5

 
$
—

 
$
—

 
$
5

 
$
5

 
$
—

 
$
—

 
$
5

Short-term borrowings — affiliates
$
97

 
$
—

 
$
—

 
$
97

 
$
75

 
$
—

 
$
—

 
$
75

Short-term borrowings — other
$
211

 
$
—

 
$
211

 
$
—

 
272

 
$
—

 
$
272

 
$
—

Long-term debt, excluding capital leases
$
5,579

 
$
—

 
$
5,501

 
$
717

 
$
5,588

 
$
—

 
$
5,432

 
$
545
Fair value of nuclear decommissioning trust fund assets
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
 
March 31, 2016
 
December 31, 2015
 
(In millions)
Fermi 2
$
1,220

 
$
1,211

Fermi 1
3

 
3

Low-level radioactive waste
23

 
22

Total
$
1,246

 
$
1,236
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 March 31,
 
2016
 
2015
 
(In millions)
Realized gains
$
9

 
$
9

Realized losses
$
(15
)
 
$
(7
)
Proceeds from sales of securities
$
260

 
$
246
Fair value and unrealized gains and losses 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:
 
March 31, 2016
 
December 31, 2015
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
728

 
$
199

 
$
(68
)
 
$
731

 
$
195

 
$
(68
)
Debt securities
512

 
24

 
(2
)
 
499

 
16

 
(4
)
Cash and cash equivalents
6

 
—

 
—

 
6

 
—

 
—

 
$
1,246

 
$
223

 
$
(70
)
 
$
1,236

 
$
211

 
$
(72
)