10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended March 31, 2018

Commission File Number	Registrants, State of Incorporation, Address, and Telephone Number	I.R.S. Employer Identification No.
1-11607	DTE Energy Company (a Michigan corporation) One Energy Plaza Detroit, Michigan 48226-1279 313-235-4000	38-3217752
1-2198	DTE Electric Company (a Michigan corporation) One Energy Plaza Detroit, Michigan 48226-1279 313-235-4000	38-0478650

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

DTE Energy Company (DTE Energy) Yes x No o DTE Electric Company (DTE Electric) Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

DTE Energy Yes x No o DTE Electric Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

DTE Energy	Large accelerated filer x	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o	Emerging growth company o
			(Do not check if a smaller reporting company)
DTE Electric	Large accelerated filer o	Accelerated filer o	Non-accelerated filer x	Smaller reporting company o	Emerging growth company o
			(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

DTE Energy Yes o No x DTE Electric Yes o No x

Number of shares of Common Stock outstanding at March 31, 2018:

Registrant	Description	Shares
DTE Energy	Common Stock, without par value	181,483,163
DTE Electric	Common Stock, $10 par value, directly owned by DTE Energy	138,632,324

This combined Form 10-Q is filed separately by two registrants: DTE Energy and DTE Electric. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. DTE Electric makes no representation as to information relating exclusively to DTE Energy.

DTE Electric, a wholly-owned subsidiary of DTE Energy, meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instructions H(2) of Form 10-Q.

THIS PAGE INTENTIONALLY LEFT BLANK

TABLE OF CONTENTS

		Page
	Definitions	1
	Filing Format	3
	Forward-Looking Statements	3
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements
	DTE Energy Consolidated Financial Statements (Unaudited)	5
	DTE Electric Consolidated Financial Statements (Unaudited)	11
	Combined Notes to Consolidated Financial Statements (Unaudited)	17
	Note 1 — Organization and Basis of Presentation	17
	Note 2 — Significant Accounting Policies	20
	Note 3 — New Accounting Pronouncements	22
	Note 4 — Revenue	24
	Note 5 — Regulatory Matters	28
	Note 6 — Earnings Per Share	29
	Note 7 — Fair Value	29
	Note 8 — Financial and Other Derivative Instruments	36
	Note 9 — Short-Term Credit Arrangements and Borrowings	40
	Note 10 — Commitments and Contingencies	41
	Note 11 — Retirement Benefits and Trusteed Assets	46
	Note 12 — Segment and Related Information	47
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	67
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 6.	Exhibits	69
	Signatures	70

DEFINITIONS

AFUDC	Allowance for Funds Used During Construction
AGS	Appalachia Gathering System is a midstream natural gas asset located in Pennsylvania and West Virginia. DTE Energy purchased 100% of AGS in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.
ANPR	Advanced Notice of Proposed Rulemaking
ASU	Accounting Standards Update issued by the FASB
CCR	Coal Combustion Residuals
CFTC	U.S. Commodity Futures Trading Commission
CON	Certificate of Necessity
DTE Electric	DTE Electric Company (a direct wholly-owned subsidiary of DTE Energy) and subsidiary companies
DTE Energy	DTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas, and numerous non-utility subsidiaries
DTE Gas	DTE Gas Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
EGU	Electric Generating Unit
ELG	Effluent Limitations Guidelines
EPA	U.S. Environmental Protection Agency
Equity units	DTE Energy's 2016 Equity Units issued in October 2016, which were used to finance the October 1, 2016 Gas Storage and Pipelines acquisition
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
FOV	Finding of Violation
FTRs	Financial Transmission Rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission grid.
GCR	A Gas Cost Recovery mechanism authorized by the MPSC that allows DTE Gas to recover through rates its natural gas costs.
GHGs	Greenhouse gases
MDEQ	Michigan Department of Environmental Quality
MGP	Manufactured Gas Plant
MPSC	Michigan Public Service Commission
MTM	Mark-to-market
NAV	Net Asset Value
NEXUS	NEXUS Gas Transmission, LLC, a joint venture in which DTE Energy own a 50% partnership interest.
Non-utility	An entity that is not a public utility. Its conditions of service, prices of goods and services, and other operating related matters are not directly regulated by the MPSC.
NOV	Notice of Violation
NOX	Nitrogen Oxides
NRC	U.S. Nuclear Regulatory Commission

1

DEFINITIONS

Production tax credits	Tax credits as authorized under Sections 45K and 45 of the Internal Revenue Code that are designed to stimulate investment in and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by the Internal Revenue Service.
PSCR	A Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related, and purchased power costs.
REC	Renewable Energy Credit
REF	Reduced Emissions Fuel
Registrants	DTE Energy and DTE Electric
Retail access	Michigan legislation provided customers the option of access to alternative suppliers for electricity and natural gas.
SGG	Stonewall Gas Gathering is a midstream natural gas asset located in West Virginia. DTE Energy purchased 55% of SGG in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.
SO2	Sulfur Dioxide
TCJA	Tax Cuts and Jobs Act of 2017
TCJA rate reduction reserve	Beginning January 1, 2018, as a result of the change in the corporate tax rate, DTE Electric and DTE Gas have reduced revenue and recorded an offsetting regulatory liability
Topic 606	FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended
TRM	A Transitional Reconciliation Mechanism authorized by the MPSC that allows DTE Electric to recover through rates the deferred net incremental revenue requirement associated with the transition of City of Detroit's Public Lighting Department customers to DTE Electric's distribution system.
VIE	Variable Interest Entity

Units of Measurement
BTU	Heat value (energy content) of fuel
MMBtu	One million BTU
MWh	Megawatthour of electricity

2

FILING FORMAT

This combined Form 10-Q is separately filed by DTE Energy and DTE Electric. Information in this combined Form 10-Q relating to each individual Registrant is filed by such Registrant on its own behalf. DTE Electric makes no representation regarding information relating to any other companies affiliated with DTE Energy other than its own subsidiaries. Neither DTE Energy, nor any of DTE Energy’s other subsidiaries (other than DTE Electric), has any obligation in respect of DTE Electric's debt securities, and holders of such debt securities should not consider the financial resources or results of operations of DTE Energy nor any of DTE Energy’s other subsidiaries (other than DTE Electric and its own subsidiaries (in relevant circumstances)) in making a decision with respect to DTE Electric's debt securities. Similarly, none of DTE Electric nor any other subsidiary of DTE Energy has any obligation in respect of debt securities of DTE Energy. This combined Form 10-Q should be read in its entirety. No one section of this combined Form 10-Q deals with all aspects of the subject matter of this combined Form 10-Q. This combined Form 10-Q should be read in conjunction with the Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements and with Management's Discussion and Analysis included in the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

Certain information presented herein includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of the Registrants. Words such as “anticipate,” “believe,” “expect,” “may,” “could,” “projected,” “aspiration,” “plans,” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of the Registrants including, but not limited to, the following:

• impact of regulation by the EPA, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures;

• the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs;

• economic conditions and population changes in the Registrants' geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas;

• environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;

• the cost of protecting assets against, or damage due to, cyber crime and terrorism;

• health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities;

• volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy;

• impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations;

• impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations;

• volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations;

• changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;

• advances in technology that produce power or reduce power consumption;

• changes in the financial condition of DTE Energy's significant customers and strategic partners;

• the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions;

3

• access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;

• instability in capital markets which could impact availability of short and long-term financing;

• the timing and extent of changes in interest rates;

• the level of borrowings;

• the potential for increased costs or delays in completion of significant capital projects;

• changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits;

• the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers;

• unplanned outages;

• employee relations and the impact of collective bargaining agreements;

• the risk of a major safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility;

• the availability, cost, coverage, and terms of insurance and stability of insurance providers;

• cost reduction efforts and the maximization of plant and distribution system performance;

• the effects of competition;

• changes in and application of accounting standards and financial reporting regulations;

• changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues;

• contract disputes, binding arbitration, litigation, and related appeals; and

• the risks discussed in the Registrants' public filings with the Securities and Exchange Commission.

New factors emerge from time to time. The Registrants cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. The Registrants undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

4

Part I — Financial Information

Item 1. Financial Statements

DTE Energy Company

Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
	2018			2017
	(In millions, except per share amounts)
Operating Revenues
Utility operations	$	1,740		$	1,718
Non-utility operations	2,013			1,518
	3,753			3,236
Operating Expenses
Fuel, purchased power, and gas — utility	553			529
Fuel, purchased power, and gas — non-utility	1,773			1,180
Operation and maintenance	534			584
Depreciation and amortization	281			249
Taxes other than income	111			109
Asset (gains) losses and impairments, net	(3		)	—
	3,249			2,651
Operating Income	504			585
Other (Income) and Deductions
Interest expense	135			125
Interest income	(3		)	(3		)
Non-operating retirement benefits, net	9			16
Other income	(81		)	(64		)
Other expenses	25			7
	85			81
Income Before Income Taxes	419			504
Income Tax Expense	68			110
Net Income	351			394
Less: Net Loss Attributable to Noncontrolling Interests	(10		)	(6		)
Net Income Attributable to DTE Energy Company	$	361		$	400
Basic Earnings per Common Share
Net Income Attributable to DTE Energy Company	$	2.01		$	2.23
Diluted Earnings per Common Share
Net Income Attributable to DTE Energy Company	$	2.00		$	2.23
Weighted Average Common Shares Outstanding
Basic	180			179
Diluted	180			179
Dividends Declared per Common Share	$	0.88		$	0.83

See Combined Notes to Consolidated Financial Statements (Unaudited)

5

DTE Energy Company

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
	2018			2017
	(In millions)
Net Income	$	351		$	394
Other comprehensive income (loss), net of tax:
Implementation of ASU 2016-01	(5		)	—
Benefit obligations, net of taxes of $1, and $2, respectively	2			4
Other comprehensive income (loss)	(3		)	4
Comprehensive income	348			398
Less: Comprehensive loss attributable to noncontrolling interests	(10		)	(6		)
Comprehensive Income Attributable to DTE Energy Company	$	358		$	404

See Combined Notes to Consolidated Financial Statements (Unaudited)

6

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited)

	March 31,			December 31,
	2018			2017
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	164		$	66
Restricted cash	22			23
Accounts receivable (less allowance for doubtful accounts of $54 and $49, respectively)
Customer	1,709			1,758
Other	116			98
Inventories
Fuel and gas	237			399
Materials and supplies	360			380
Derivative assets	84			103
Regulatory assets	44			55
Other	221			199
	2,957			3,081
Investments
Nuclear decommissioning trust funds	1,481			1,492
Investments in equity method investees	1,141			1,073
Other	230			232
	2,852			2,797
Property
Property, plant, and equipment	31,656			31,424
Accumulated depreciation and amortization	(10,786		)	(10,703		)
	20,870			20,721
Other Assets
Goodwill	2,293			2,293
Regulatory assets	3,715			3,723
Intangible assets	867			867
Notes receivable	70			73
Derivative assets	58			51
Other	159			161
	7,162			7,168
Total Assets	$	33,841		$	33,767

See Combined Notes to Consolidated Financial Statements (Unaudited)

7

DTE Energy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)

	March 31,			December 31,
	2018			2017
	(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	920		$	1,171
Accrued interest	132			111
Dividends payable	160			158
Short-term borrowings	635			621
Current portion long-term debt, including capital leases	106			109
Derivative liabilities	69			99
Gas inventory equalization	85			—
Regulatory liabilities	23			18
Other	411			525
	2,541			2,812
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	11,040			11,039
Junior subordinated debentures	1,145			1,145
Capital lease obligations	—			1
	12,185			12,185
Other Liabilities
Deferred income taxes	1,936			1,888
Regulatory liabilities	3,001			2,875
Asset retirement obligations	2,361			2,320
Unamortized investment tax credit	122			122
Derivative liabilities	58			47
Accrued pension liability	737			924
Accrued postretirement liability	25			61
Nuclear decommissioning	219			220
Other	293			323
	8,752			8,780
Commitments and Contingencies (Notes 5 and 10)
Equity
Common stock, without par value, 400,000,000 shares authorized, and 181,483,163 and 179,386,967 shares issued and outstanding, respectively	4,163			3,989
Retained earnings	5,848			5,643
Accumulated other comprehensive loss	(123		)	(120		)
Total DTE Energy Company Equity	9,888			9,512
Noncontrolling interests	475			478
Total Equity	10,363			9,990
Total Liabilities and Equity	$	33,841		$	33,767

See Combined Notes to Consolidated Financial Statements (Unaudited)

8

DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Activities
Net Income	$	351		$	394
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	281			249
Nuclear fuel amortization	15			12
Allowance for equity funds used during construction	(7		)	(7		)
Deferred income taxes	60			100
Equity earnings of equity method investees	(21		)	(26		)
Dividends from equity method investees	15			18
Changes in assets and liabilities:
Accounts receivable, net	33			84
Inventories	182			135
Accounts payable	(136		)	(33		)
Gas inventory equalization	85			86
Accrued pension liability	(187		)	(130		)
Accrued postretirement liability	(36		)	27
Derivative assets and liabilities	(7		)	(100		)
Regulatory assets and liabilities	148			128
Other current and noncurrent assets and liabilities	62			(150		)
Net cash from operating activities	838			787
Investing Activities
Plant and equipment expenditures — utility	(466		)	(533		)
Plant and equipment expenditures — non-utility	(61		)	(22		)
Proceeds from sale of nuclear decommissioning trust fund assets	336			394
Investment in nuclear decommissioning trust funds	(337		)	(378		)
Distributions from equity method investees	4			6
Contributions to equity method investees	(64		)	(112		)
Other	2			3
Net cash used for investing activities	(586		)	(642		)
Financing Activities
Issuance of long-term debt, net of issuance costs	—			496
Short-term borrowings, net	14			(440		)
Repurchase of common stock	—			(51		)
Dividends on common stock	(158		)	(148		)
REF contributions from noncontrolling interests	12			11
Other	(23		)	(24		)
Net cash used for financing activities	(155		)	(156		)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	97			(11		)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	89			113
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	186		$	102
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	179		$	196

See Combined Notes to Consolidated Financial Statements (Unaudited)

9

DTE Energy Company

Consolidated Statements of Changes in Equity (Unaudited)

					Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
	Common Stock
	Shares	Amount												Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2017	179,387	$	3,989		$	5,643		$	(120	)	$	478		$	9,990
Implementation of ASU 2016-01	—	—			5			(5		)	—			—
Net Income (Loss)	—	—			361			—			(10		)	351
Dividends declared on common stock	—	—			(160		)	—			—			(160		)
Contribution of common stock to pension plan	1,751	175			—			—			—			175
Benefit obligations, net of tax	—	—			—			2			—			2
Stock-based compensation, net contributions from noncontrolling interests, and other	345	(1		)	(1		)	—			7			5
Balance, March 31, 2018	181,483	$	4,163		$	5,848		$	(123	)	$	475		$	10,363

See Combined Notes to Consolidated Financial Statements (Unaudited)

10

DTE Electric Company

Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Utility operations	$	1,205		$	1,175
Operating Expenses
Fuel and purchased power — utility	339			314
Operation and maintenance	320			383
Depreciation and amortization	212			181
Taxes other than income	81			80
	952			958
Operating Income	253			217
Other (Income) and Deductions
Interest expense	68			66
Other income	(27		)	(19		)
Other expenses	25			7
	66			54
Income Before Income Taxes	187			163
Income Tax Expense	47			57
Net Income	$	140		$	106

See Combined Notes to Consolidated Financial Statements (Unaudited)

11

DTE Electric Company

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
	2018		2017
	(In millions)
Net Income	$	140	$	106
Other comprehensive income, net of tax:
Implementation of ASU 2016-01	3		—
Other comprehensive income	3		—
Comprehensive Income	$	143	$	106

See Combined Notes to Consolidated Financial Statements (Unaudited)

12

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited)

	March 31,			December 31,
	2018			2017
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	16		$	15
Accounts receivable (less allowance for doubtful accounts of $31 for both periods)
Customer	754			791
Affiliates	14			20
Other	39			37
Inventories
Fuel	138			190
Materials and supplies	277			275
Regulatory assets	40			50
Prepaid property tax	91			48
Other	18			20
	1,387			1,446
Investments
Nuclear decommissioning trust funds	1,481			1,492
Other	36			36
	1,517			1,528
Property
Property, plant, and equipment	23,098			22,972
Accumulated depreciation and amortization	(8,023		)	(7,984		)
	15,075			14,988
Other Assets
Regulatory assets	3,009			3,005
Intangible assets	31			25
Prepaid postretirement costs — affiliates	113			113
Other	123			123
	3,276			3,266
Total Assets	$	21,255		$	21,228

See Combined Notes to Consolidated Financial Statements (Unaudited)

13

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)

	March 31,		December 31,
	2018		2017
	(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates	$	61	$	52
Other	295		416
Accrued interest	70		72
Current portion long-term debt, including capital leases	2		5
Regulatory liabilities	21		17
Short-term borrowings
Affiliates	142		116
Other	380		238
Other	133		145
	1,104		1,061
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	6,018		6,017
Capital lease obligations	—		1
	6,018		6,018
Other Liabilities
Deferred income taxes	2,127		2,088
Regulatory liabilities	2,218		2,137
Asset retirement obligations	2,165		2,125
Unamortized investment tax credit	120		120
Nuclear decommissioning	219		220
Accrued pension liability — affiliates	633		811
Accrued postretirement liability — affiliates	287		311
Other	74		72
	7,843		7,884
Commitments and Contingencies (Notes 5 and 10)
Shareholder’s Equity
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding	4,306		4,306
Retained earnings	1,984		1,956
Accumulated other comprehensive income	—		3
Total Shareholder’s Equity	6,290		6,265
Total Liabilities and Shareholder’s Equity	$	21,255	$	21,228

See Combined Notes to Consolidated Financial Statements (Unaudited)

14

DTE Electric Company

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Activities
Net Income	$	140		$	106
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	212			181
Nuclear fuel amortization	15			12
Allowance for equity funds used during construction	(5		)	(6		)
Deferred income taxes	48			57
Changes in assets and liabilities:
Accounts receivable, net	39			58
Inventories	50			44
Accounts payable	(30		)	26
Accrued pension liability — affiliates	(178		)	(123		)
Accrued postretirement liability — affiliates	(24		)	21
Regulatory assets and liabilities	97			122
Other current and noncurrent assets and liabilities	(41		)	(87		)
Net cash from operating activities	323			411
Investing Activities
Plant and equipment expenditures	(370		)	(408		)
Proceeds from sale of nuclear decommissioning trust fund assets	336			394
Investment in nuclear decommissioning trust funds	(337		)	(378		)
Other	—			5
Net cash used for investing activities	(371		)	(387		)
Financing Activities
Short-term borrowings, net — affiliate	26			88
Short-term borrowings, net — other	142			(3		)
Dividends on common stock	(115		)	(108		)
Other	(4		)	(3		)
Net cash from (used for) financing activities	49			(26		)
Net Increase (Decrease) in Cash and Cash Equivalents	1			(2		)
Cash and Cash Equivalents at Beginning of Period	15			13
Cash and Cash Equivalents at End of Period	$	16		$	11
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	109		$	134

See Combined Notes to Consolidated Financial Statements (Unaudited)

15

DTE Electric Company

Consolidated Statements of Changes in Shareholder's Equity (Unaudited)

				Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income
	Common Stock
	Shares	Amount										Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2017	138,632	$	1,386	$	2,920	$	1,956		$	3		$	6,265
Implementation of ASU 2016-01	—	—		—		3			(3		)	—
Net Income	—	—		—		140			—			140
Dividends declared on common stock	—	—		—		(115		)	—			(115		)
Balance, March 31, 2018	138,632	$	1,386	$	2,920	$	1,984		$	—		$	6,290

See Combined Notes to Consolidated Financial Statements (Unaudited)

16

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited)

Index of Combined Notes to Consolidated Financial Statements (Unaudited)

The Combined Notes to Consolidated Financial Statements (Unaudited) are a combined presentation for DTE Energy and DTE Electric. The following list indicates the Registrant(s) to which each note applies:

Note 1	Organization and Basis of Presentation	DTE Energy and DTE Electric
Note 2	Significant Accounting Policies	DTE Energy and DTE Electric
Note 3	New Accounting Pronouncements	DTE Energy and DTE Electric
Note 4	Revenue	DTE Energy and DTE Electric
Note 5	Regulatory Matters	DTE Energy and DTE Electric
Note 6	Earnings per Share	DTE Energy
Note 7	Fair Value	DTE Energy and DTE Electric
Note 8	Financial and Other Derivative Instruments	DTE Energy and DTE Electric
Note 9	Short-Term Credit Arrangements and Borrowings	DTE Energy and DTE Electric
Note 10	Commitments and Contingencies	DTE Energy and DTE Electric
Note 11	Retirement Benefits and Trusteed Assets	DTE Energy and DTE Electric
Note 12	Segment and Related Information	DTE Energy

NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION

Corporate Structure

DTE Energy owns the following businesses:

• DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.2 million customers in southeastern Michigan;

• DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million customers throughout Michigan and the sale of storage and transportation capacity; and

• Other businesses involved in 1) services related to the gathering, transportation, and storage of natural gas; 2) power and industrial projects; and 3) energy marketing and trading operations.

DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businesses under DTE Energy, are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, the EPA, the MDEQ, and for DTE Energy, the CFTC.

Basis of Presentation

The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K.

The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.

The Consolidated Financial Statements are unaudited but, in the Registrants' opinions include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2018.

17

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

Certain prior year balances for DTE Energy were reclassified to match the current year's Consolidated Financial Statements presentation. Due to the implementation of ASU 2017-07, amounts previously included in Operation and maintenance were reclassified to Non-operating retirement benefits, net on the Consolidated Statements of Operations. See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

Principles of Consolidation

The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.

The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.

Legal entities within DTE Energy's Power and Industrial Projects segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are accounted for under the equity method.

DTE Energy owns a 55% interest in SGG, which owns and operates midstream natural gas assets. SGG has contracts through which certain construction risk is designed to pass-through to the customers, with DTE Energy retaining operational and customer default risk. SGG is a VIE with DTE Energy as the primary beneficiary.

The Registrants have variable interests in NEXUS, which include DTE Energy's 50% ownership interest and DTE Electric's transportation services contract. NEXUS is a joint venture which is in the process of constructing a 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio, Michigan, and Ontario market centers. NEXUS is a VIE as it has insufficient equity at risk to finance its activities. The Registrants are not the primary beneficiaries, as the power to direct significant activities is shared between the owners of the equity interests. DTE Energy accounts for its ownership interest in NEXUS under the equity method.

The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, as well as an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.

18

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no significant potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no significant potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position and in Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," related to the REF guarantees and indemnities. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment, notes receivable, future funding commitments, and amounts which DTE Energy has guaranteed. See Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of the NEXUS guarantee arrangements.

The following table summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of March 31, 2018 and December 31, 2017. All assets and liabilities of a consolidated VIE are presented where it has been determined that aconsolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table below.

	March 31, 2018						December 31, 2017
	SGG(a)		Other		Total		SGG(a)		Other		Total
	(In millions)
ASSETS
Cash and cash equivalents	$	29	$	12	$	41	$	23	$	14	$	37
Restricted cash	—		8		8		—		8		8
Accounts receivable	11		37		48		11		42		53
Inventories	3		66		69		3		114		117
Property, plant, and equipment, net	386		73		459		400		75		475
Goodwill	25		—		25		25		—		25
Intangible assets	568		—		568		572		—		572
Other current and long-term assets	2		—		2		4		—		4
	$	1,024	$	196	$	1,220	$	1,038	$	253	$	1,291
LIABILITIES
Accounts payable and accrued current liabilities	$	2	$	35	$	37	$	26	$	47	$	73
Current portion long-term debt, including capital leases	—		4		4		—		4		4
Mortgage bonds, notes, and other	—		—		—		—		1		1
Other current and long-term liabilities	2		15		17		1		16		17
	$	4	$	54	$	58	$	27	$	68	$	95

_____________________________________

(a)Amounts shown are 100% of SGG's assets and liabilities, of which DTE Energy owns 55%.

19

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Amounts for DTE Energy's non-consolidated VIEs are as follows:

	March 31, 2018		December 31, 2017
	(In millions)
Investments in equity method investees	$	866	$	811
Notes receivable	$	17	$	17
Future funding commitments	$	551	$	598

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

Other Income

The following is a summary of DTE Energy's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Income from REF entities	$	23	$	18
Equity earnings of equity method investees	21		26
Contract services	20		4
Allowance for equity funds used during construction	7		7
Gains from equity securities	—		8
Other	10		1
	$	81	$	64

The following is a summary of DTE Electric's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Contract services	$	20	$	4
Allowance for equity funds used during construction	5		6
Gains from equity securities allocated from DTE Energy	—		8
Other	2		1
	$	27	$	19

Changes in Accumulated Other Comprehensive Income (Loss)

For the three months endedMarch 31, 2018 and 2017, reclassifications out of Accumulated other comprehensive income (loss) for the Registrants were not material. Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity. For further discussion regarding changes in Accumulated other comprehensive income (loss), see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

20

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Income Taxes

The 2018 estimated annual effective tax rates for DTE Energy and DTE Electric are 13% and 22%, respectively. These tax rates are affected by estimated annual permanent items, including AFUDC equity, production tax credits, and other flow-through items, as well as discrete items that may occur in any given period, but are not consistent from period to period.

The interim effective tax rate of the Registrants are as follows:

	Effective Tax Rate
	Three Months Ended March 31,
	2018		2017
DTE Energy	16	%	22	%
DTE Electric	25	%	35	%

The 6%decrease in DTE Energy's effective tax rate for the three months ended March 31, 2018 was primarily due to the reduction of the corporate tax rate from 35% to 21%, which became effective in 2018. The decrease in the effective tax rate was partially offset by true-up adjustments to the remeasurement of deferred taxes in 2018 of $21 million, which increased the effective tax rate by 5%, and the reduction of excess tax benefits on stock-based compensation of $10 million, which increased the effective tax rate by 2%. For further discussion regarding the true-up adjustments, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

The 10%decrease in DTE Electric's effective tax rate for the three months ended March 31, 2018 was primarily due to the reduction of the corporate tax rate from 35% to 21%, which became effective in 2018, partially offset by true-up adjustments to the remeasurement of deferred taxes in 2018 of $8 million, which increased the effective tax rate by 4%.

DTE Energy's total amount of unrecognized tax benefits as of March 31, 2018 was $8 million, of which $8 million, if recognized, would favorably impact its effective tax rate. DTE Electric's total amount of unrecognized tax benefits as of March 31, 2018 was $10 million, of which $10 million, if recognized, would favorably impact its effective tax rate. The Registrants do not anticipate any material changes to the unrecognized tax benefits in the next twelve months.

DTE Electric had income tax receivables with DTE Energy of $13 million and $12 million at March 31, 2018 and December 31, 2017, respectively.

Unrecognized Compensation Costs

As of March 31, 2018, DTE Energy had $111 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.75 years.

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $9 million and $8 million for the three months ended March 31, 2018 and 2017, respectively.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash consists of funds held to satisfy requirements of certain debt and DTE Energy partnership operating agreements. Restricted cash designated for interest and principal payments within one year is classified as a Current Asset.

21

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following is a table that provides a reconciliation of DTE Energy's Cash and cash equivalents as well as Restricted cash reported within the Consolidated Statements of Financial Position that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Cash and cash equivalents	$	164	$	82
Restricted cash	22		20
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	186	$	102

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also required expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is to be applied retrospectively. The Registrants adopted the standard effective January 1, 2018 using the modified retrospective approach. Under the modified retrospective approach, the information for periods prior to the adoption date has not been restated and continues to be reported under the accounting standards in effect for those periods. As permitted under the standard, the Registrants have elected to apply the guidance only to those contracts that were not completed at January 1, 2018, and have elected not to restate the impacts of any contract modifications made prior to the earliest period presented.

The adoption of the ASU did not have a significant impact on the Registrants' financial position or results of operations, but required additional disclosures for revenue. See Note 4 to the Consolidated Financial Statements, "Revenue."

In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update required that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The Registrants adopted the standard effective January 1, 2018. The standard has been applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. As permitted by the standard, the Registrants have used benefit cost amounts disclosed for prior periods as the basis for retrospective application in the income statement. As a result of regulatory mechanisms, the impact to the Consolidated Financial Statements was not material for the first quarter of 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as amended. The new guidance is intended to improve the recognition and measurement of financial instruments. The guidance primarily impacts accounting for equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) and financial liabilities under the fair value option. The guidance requires equity investments to be generally measured at fair value, with subsequent changes in fair value recognized in net income. The guidance requires entities to make a cumulative-effect adjustment to the Statements of Financial Position as of the beginning of the first reporting period in which the guidance is effective. The Registrants adopted the standard effective January 1, 2018. Upon adoption, DTE Energy and DTE Electric recorded a cumulative-effect adjustment to reclassify $5 million and $3 million of unrealized gains from Accumulated other comprehensive income (loss) to Retained earnings, respectively.

22

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118. The Amendments in this update add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118). SAB 118 directs taxpayers to consider the implications of the TCJA as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 10 to the Consolidated Financial Statements, "Income Taxes," within the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K and in accordance with SAB 118, the Registrants recorded amounts that were considered provisional. In first quarter of 2018, DTE Energy and DTE Electric recorded true-up adjustments to the remeasurement of deferred taxes of $21 million and $8 million, respectively. The impact of the true-up adjustments was an increase in Income Tax Expense, of which $16 million was attributable to the regulated utilities and offset to Regulatory liabilities.The true-up adjustments were a result of further analysis for items subject to further consideration at December 31, 2017 under SAB 118 and primarily related to timing differences not recoverable from DTE Electric and DTE Gas customers. The Registrants will continue to analyze the amounts throughout 2018, which may result in additional changes.

Recently Issued Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), as amended. This guidance requires a lessee to account for leases as finance or operating leases, and disclose key information about leasing arrangements. Both types of leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition, depending on the lease classification. The Registrants will adopt the standard on January 1, 2019. As originally issued, the standard requires a modified retrospective approach for leases existing or entered into after the beginning of the earliest comparative period in the Consolidated Financial Statements. The Registrants are evaluating the transition practical expedients available under the guidance, such as retaining the current lease assessment and classifications for existing leases at the effective date, and not applying the new guidance to land easements that exist or expire before the effective date.

A third-party software tool is being implemented that will assist with the initial adoption and ongoing compliance of the standard. The Registrants are evaluating contracts for leases and abstracting the required data, as well as evaluating new business processes, internal controls, and accounting policies. In addition, the Registrants are monitoring utility industry implementation issues for purchase power agreements, pipeline laterals, and other industry specific arrangements. While the Registrants expect an increase in assets and liabilities, as well as additional disclosures, they are still assessing the impact of this ASU on their Consolidated Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in current generally accepted accounting principles with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entities will apply the new guidance as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effective for the Registrants beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The amendments in this update also require entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

23

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 4 — REVENUE

Significant Accounting Policy

Upon the adoption of Topic 606, revenue is measured based upon the consideration specified in a contract with a customer at the time when performance obligations are satisfied. Under Topic 606, a performance obligation is a promise in a contract to transfer a distinct good or service or a series of distinct goods or services to the customer. The Registrants recognize revenue when performance obligations are satisfied by transferring control over a product or service to a customer. The Registrants have determined control to be transferred when the product is delivered or the service is provided to the customer. For the three months ended March 31, 2018, recognition of revenue for the Registrants subsequent to the adoption of Topic 606 is substantially similar in amount and approach to that prior to adoption.

Rates for DTE Electric and DTE Gas include provisions to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are included in Regulatory assets or liabilities on the Registrants' Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors.

For discussion of derivative contracts, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment for DTE Energy:

	Three Months Ended March 31, 2018
	(In millions)
Electric(a)
Residential	$	586
Commercial	429
Industrial	176
Other(b)	14
Total Electric operating revenues(c)	$	1,205
Gas
Gas sales	$	457
End User Transportation	85
Intermediate Transportation	18
Other(d)	(10		)
Total Gas operating revenues(e)	$	550
Other segment operating revenues(f)
Gas Storage and Pipelines	$	119
Power and Industrial Projects	$	567
Energy Trading	$	1,498

_______________________________________

(a) Revenues under the Electric segment generally represent those of DTE Electric.

(b) Includes a reduction of $39 million in revenues related to TCJA rate reduction reserve.

(c) Includes $5 million of other revenues which are outside the scope of Topic 606.

(d) Includes a reduction of $32 million in revenues related to TCJA rate reduction reserve.

(e) Includes a reduction of $3 million under Alternative Revenue Programs and $2 million of other revenues which are both outside the scope of Topic 606.

(f) Includes revenues outside the scope of Topic 606 primarily related to $445 million of contracts accounted for as leases at the Power and Industrial Projects segment and $1.2 billion related to derivatives at the Energy Trading segment.

24

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Nature of Goods and Services

The following is a description of principal activities, separated by reportable segments, from which DTE Energy generates revenue. For more detailed information about reportable segments, see Note 12 to the Consolidated Financial Statements, “Segment and Related Information.”

The Registrants have contracts with customers which may contain more than one performance obligation. When more than one performance obligation exists in a contract, the consideration under the contract is allocated to the performance obligations based on the relative standalone selling price. DTE Energy generally determines stand alone selling prices based on the prices charged to customers or the use of the adjusted market assessment approach. The adjusted market assessment approach involves the evaluation of the market in which DTE Energy sells goods or services and estimating the price that a customer in that market would be willing to pay.

Under Topic 606, when a customer simultaneously receives and consumes the product or service provided, revenue is considered to be recognized over time. Alternatively, if it is determined that the criteria for recognition of revenue over time is not met, the revenue is considered to be recognized at a point in time.

Electric

Electric consists principally of DTE Electric. Electric revenues are primarily comprised of the supply and delivery of electricity, and related capacity. Revenues are primarily associated with cancelable contracts, with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. The Registrants have determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined utilizing approved tariff rates and estimated meter volumes. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class are known. Revenues are typically subject to tariff rates based upon customer class and type of service, and are billed and received monthly. Tariff rates are determined by the MPSC on a per kWh or monthly basis.

Gas

Gas revenues are primarily comprised of the supply and delivery of natural gas, and other services including storage, transportation, and appliance maintenance. Revenues are primarily associated with cancelable contracts with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined using both estimated meter volumes and estimated usage based upon the number of unbilled days and historical temperatures. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class and service type are known. Revenues are typically subject to tariff rates or other rates subject to regulatory oversight and are billed and received monthly. Tariff rates are determined by the MPSC on a per unit or monthly basis.

Gas Storage and Pipelines

Gas Storage and Pipelines revenues generally consist of services related to the gathering, transportation, and storage of natural gas. Contracts are primarily long-term in nature. Revenues, including estimated unbilled amounts, are generally recognized over time based upon services provided or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Revenues are typically billed and received monthly. Pricing for such revenues may consist of demand rates, commodity rates, transportation rates, and other associated fees. Consideration may consist of both fixed and variable components. Generally, uncertainties in the variable consideration components are resolved and revenues are known at the time of recognition.

Power and Industrial Projects

Power and Industrial Projects revenues consist primarily of contracts accounted for as leases which are outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

25

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Revenues at Power and Industrial Projects, within the scope of Topic 606, generally consist of sales of blast furnace coke and coke oven gas, electricity, equipment maintenance services, and other energy related products and services. Revenues, including estimated unbilled amounts, for the sale of blast furnace coke are generally recognized at a point in time when the product is delivered, which represents the transfer of control to the customer. Other revenues are generally recognized over time based upon services provided or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Market based pricing structures exist in such contracts including adjustments for consumer price or other indices. Consideration may consist of both fixed and variable components. Generally, uncertainties in the variable consideration components are resolved and revenues are known at the time of recognition. Billing terms vary and are generally monthly with payment terms typically within 30 days following billing.

Energy Trading

Energy Trading revenues consist primarily of derivative contracts outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

Revenues, including estimated unbilled amounts, within the scope of Topic 606 arising from the sale of natural gas, electricity, power capacity, and other energy related products are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Revenues are known at the time of recognition. Payment for the aforementioned revenues is generally due from customers in the month following delivery.

Revenues associated with RECs are recognized at a point in time when control of the RECs are transferred to the customer which is deemed to be when the subject RECs are entered for transfer to the customer in the applicable regulatory tracking system. Revenues associated with RECs under a wholesale full requirements power contract are deferred until control has been transferred. The deferred revenues represent a contract liability for which payment has been received and the amounts have been estimated using the adjusted market assessment approach. With the exception of RECs, generally all other performance obligations associated with wholesale full requirements power contracts are satisfied over time in conjunction with the delivery of power. At the time power is delivered, DTE Energy may not have control over the RECs as the RECs are not self-generated and may not yet have been procured resulting in deferred revenues.

Deferred Revenue

The following is a summary of deferred revenue activity:

	DTE Energy
	(In millions)
Beginning Balance, January 1, 2018	$	56
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	14
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(16		)
Ending Balance, March 31, 2018	$	54

The deferred revenues at DTE Energy generally represent amounts paid by or receivable from customers for which the associated performance obligation has not yet been satisfied.

Deferred revenues include amounts associated with REC performance obligations under certain wholesale full requirements power contracts. Deferred revenues associated with RECs are recognized as revenue when control of the RECs has transferred.

Other performance obligations associated with deferred revenues include providing products and services related to customer prepayments. Deferred revenues associated with these products and services are recognized when control has transferred to the customer.

26

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:

	DTE Energy
	(In millions)
2018	$	23
2019	9
2020	1
2021	5
2022	6
2023 and thereafter	10
	$	54

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under Topic 606, the Registrants did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which revenue is recognized at the amount to which the Registrants have the right to invoice for goods provided and services performed, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.

Such contracts consist of varying types of performance obligations across the segments, including the supply and delivery of energy related products and services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related consideration under the contract is variable at inception of the contract. Contract lengths vary from cancelable to multi-year.

The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:

	DTE Energy		DTE Electric
	(In millions)
2018	$	159	$	6
2019	238		8
2020	168		—
2021	128		—
2022	103		—
2023 and thereafter	351		—
Total	$	1,147	$	14

Other Matters

DTE Energy has recognized charges of $25 million related to expense recognized for estimated uncollectible accounts receivable for the three months ended March 31, 2018. DTE Electric has recognized charges of $14 million related to expense recognized for estimated uncollectible accounts receivable for the three months ended March 31, 2018.

27

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 5 — REGULATORY MATTERS

2017 Electric Rate Case Filing

DTE Electric filed a rate case with the MPSC on April 19, 2017 requesting an increase in base rates of $231 million based on a projected twelve-month period ending October 31, 2018. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructure investments, environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. To mitigate the impact to its customers resulting from ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), DTE Electric implemented regulatory accounting treatment. As such, beginning January 1, 2018, pension and postretirement cost components previously included as capital overhead are being deferred. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." On November 1, 2017, DTE Electric self-implemented a base rate increase of $125 million. On April 18, 2018, the MPSC issued an order approving an annual revenue increase of $65.2 million for service rendered on or after May 1, 2018. The MPSC authorized a return on equity of 10.0%. DTE Electric has recorded a refund liability of $25 million, representing the total estimated refund due to customers, inclusive of interest, at March 31, 2018.

Certificate of Necessity

On July 31, 2017, DTE Electric filed a request for authority to build a 1,100 megawatt natural gas fueled combined cycle generation facility at DTE Electric's Belle River Power Plant. DTE Electric requested the MPSC to issue three CONs for the following: (1) power supplied by the proposed project is needed, (2) the size, fuel type, and other design characteristics of the proposed project represent the most reasonable and prudent means of meeting the power need, and (3) the estimated capital costs of $989 million for the proposed project will be recoverable in rates from DTE Electric's customers. DTE Electric expects an order in this proceeding from the MPSC by April 27, 2018.

2017 Gas Rate Case Filing

DTE Gas filed a rate case with the MPSC on November 22, 2017 requesting an increase in base rates of $85.1 million based on a projected twelve-month period ending September 30, 2019. The requested increase in base rates is primarily due to an increase in net plant. The rate filing also requests an increase in return on equity from 10.1% to 10.5% and includes projected changes in sales, operations, maintenance expenses, and working capital. To mitigate the impact to its customers resulting from ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), DTE Gas suggested regulatory accounting treatment, consistent with the methodology approved by the MPSC in the 2017 DTE Electric Rate Case order. As such, beginning January 1, 2018, pension and postretirement cost components previously included as capital overhead are being deferred. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." A final MPSC order in this case is expected by September 2018.

2017 Tax Reform

On December 27, 2017, the MPSC issued an order to consider changes in the rates of all Michigan rate-regulated utilities to reflect the effects of the federal TCJA. On January 19, 2018, DTE Electric and DTE Gas filed information with the MPSC regarding the potential change in revenue requirements due to the TCJA effective January 1, 2018, and outlined their recommended method to flow the current and deferred tax benefits of those impacts to ratepayers.

On February 22, 2018, the MPSC issued an order in this case requiring utilities, including DTE Electric and DTE Gas, to follow a 3-step approach of credits and calculations. The first step is to establish Credit A, through contested cases. Credit A is a going-forward tax credit to reflect the reduction of the corporate tax rate from 35% to 21%. DTE Gas submitted its Credit A filing on March 28, 2018, reflecting a reduction in revenues of $38.2 million. The proposed new rates are expected to be effective July 1, 2018. DTE Electric is required to file its Credit A application by May 18, 2018. The second step is to establish Credit B, through contested cases. Credit B is a backward-looking tax credit to reflect the reduction of the corporate rate of 35% to 21%, for the period January 1, 2018 through the date Credit A is established. The Credit B filing is required within sixty days after Credit A is implemented. DTE Electric and DTE Gas have been deferring the impact of the reduction to the corporate tax rate since January 1, 2018. The third step is to perform Calculation C, through contested cases. Calculation C will address all remaining issues relative to the new tax law, which is primarily the remeasurement of deferred taxes and how the amounts deferred as Regulatory liabilities will flow to ratepayers. DTE Electric and DTE Gas are required to file Calculation C no later than October 1, 2018, unless they file a new general rate case prior to October 1, 2018, and address Calculation C within that filing.

28

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 6 — EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units, performance shares, and stock options do not receive cash dividends; as such, these awards are not considered participating securities.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — basic	$	360	$	399
Average number of common shares outstanding	180		179
Basic Earnings per Common Share	$	2.01	$	2.23
Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — diluted	$	360	$	399
Average number of common shares outstanding	180		179
Diluted Earnings per Common Share(a)	$	2.00	$	2.23

_______________________________________

(a) The 2016 Equity Units excluded from the calculation of diluted EPS were approximately 6.6 million and 6.8 million for the three months endedMarch 31, 2018 and 2017, respectively, as the dilutive stock price threshold was not met.

NOTE 7 — FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at March 31, 2018 and December 31, 2017. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.

29

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined as follows:

• Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access as of the reporting date.

• Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

• Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

30

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:

	March 31, 2018																	December 31, 2017
	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)	$	16		$	—		$	—		$	—	$	—		$	16		$	16		$	3		$	—		$	—	$	—		$	19
Nuclear decommissioning trusts
Equity securities	933			—			—			—		—			933			978			—			—			—		—			978
Fixed income securities	14			516			—			—		—			530			18			477			—			—		—			495
Private equity securities	—			—			—			5		—			5			—			—			—			5		—			5
Cash equivalents	13			—			—			—		—			13			14			—			—			—		—			14
Other investments(d)
Equity securities	117			—			—			—		—			117			118			—			—			—		—			118
Fixed income securities	70			—			—			—		—			70			72			—			—			—		—			72
Cash equivalents	4			—			—			—		—			4			4			—			—			—		—			4
Derivative assets
Commodity contracts
Natural gas	49			92			66			—		(118		)	89			148			112			97			—		(256		)	101
Electricity	—			162			21			—		(135		)	48			—			243			42			—		(241		)	44
Other	—			—			5			—		—			5			—			—			9			—		—			9
Foreign currency exchange contracts	—			2			—			—		(2		)	—			—			1			—			—		(1		)	—
Total derivative assets	49			256			92			—		(255		)	142			148			356			148			—		(498		)	154
Total	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Derivative liabilities
Commodity contracts
Natural gas	$	(58	)	$	(62	)	$	(76	)	$	—	$	126		$	(70	)	$	(141	)	$	(111	)	$	(126	)	$	—	$	263		$	(115	)
Electricity	—			(164		)	(34		)	—		142			(56		)	—			(245		)	(30		)	—		246			(29		)
Other	—			—			(1		)	—		—			(1		)	—			—			(1		)	—		1			—
Foreign currency exchange contracts	—			(2		)	—			—		2			—			—			(3		)	—			—		1			(2		)
Total derivative liabilities	(58		)	(228		)	(111		)	—		270			(127		)	(141		)	(359		)	(157		)	—		511			(146		)
Total	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713
Assets
Current	$	65		$	194		$	51		$	—	$	(210	)	$	100		$	157		$	298		$	104		$	—	$	(437	)	$	122
Noncurrent	1,151			578			41			5		(45		)	1,730			1,211			538			44			5		(61		)	1,737
Total Assets	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Current	$	(53	)	$	(183	)	$	(53	)	$	—	$	220		$	(69	)	$	(137	)	$	(313	)	$	(108	)	$	—	$	459		$	(99	)
Noncurrent	(5		)	(45		)	(58		)	—		50			(58		)	(4		)	(46		)	(49		)	—		52			(47		)
Total Liabilities	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713

_______________________________________

(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, 2018, equity securities of $16 million consisted of $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. At December 31, 2017, equity securities of $19 million consisted of $8 million and $11 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.

31

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:

	March 31, 2018										December 31, 2017
	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)	$	8	$	—	$	—	$	—	$	8	$	8	$	3	$	—	$	—	$	11
Nuclear decommissioning trusts
Equity securities	933		—		—		—		933		978		—		—		—		978
Fixed income securities	14		516		—		—		530		18		477		—		—		495
Private equity securities	—		—		—		5		5		—		—		—		5		5
Cash equivalents	13		—		—		—		13		14		—		—		—		14
Other investments
Equity securities	11		—		—		—		11		11		—		—		—		11
Derivative assets — FTRs	—		—		5		—		5		—		—		9		—		9
Total	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523
Assets
Current	$	8	$	—	$	5	$	—	$	13	$	8	$	3	$	9	$	—	$	20
Noncurrent	971		516		—		5		1,492		1,021		477		—		5		1,503
Total Assets	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523

_______________________________________

(a) Amounts represent assets valued at NAV as a practical expedient for fair value.

(b) At March 31, 2018, equity securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2017, equity securities of $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.

Cash Equivalents

Cash equivalents include investments with maturities of three months or less when purchased. The cash equivalents shown in the fair value table are comprised of short-term investments and money market funds.

Nuclear Decommissioning Trusts and Other Investments

The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through institutional mutual funds and commingled funds. Other assets such as private market investments are used to enhance long-term returns while improving portfolio diversification. All pricing for investments in this category are classified as NAV assets. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. Non-exchange-traded fixed income securities are valued based upon quotations available from brokers or pricing services. The institutional mutual funds hold exchange-traded equity or debt securities (exchange and non-exchange traded) and are valued based on publicly available NAVs. A primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee determines that another price source is considered preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Registrants selectively corroborate the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by DTE Energy's Trust Investments Department which reports to DTE Energy's Vice President and Treasurer.

32

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Derivative Assets and Liabilities

Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.

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:

	Three Months Ended March 31, 2018												Three Months Ended March 31, 2017
	Natural Gas			Electricity			Other			Total			Natural Gas			Electricity			Other			Total
	(In millions)
Net Assets (Liabilities) as of January 1	$	(29	)	$	12		$	8		$	(9	)	$	(96	)	$	9		$	(1	)	$	(88	)
Transfers into Level 3 from Level 2	—			—			—			—			—			—			—			—
Transfers from Level 3 into Level 2	(3		)	—			—			(3		)	—			—			—			—
Total gains (losses)
Included in earnings	(70		)	131			—			61			52			(9		)	1			44
Recorded in Regulatory liabilities	—			—			—			—			—			—			2			2
Purchases, issuances, and settlements
Settlements	92			(156		)	(4		)	(68		)	29			(6		)	(4		)	19
Net Assets (Liabilities) as of March 31	$	(10	)	$	(13	)	$	4		$	(19	)	$	(15	)	$	(6	)	$	(2	)	$	(23	)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$	(58	)	$	(10	)	$	—		$	(68	)	$	35		$	(3	)	$	—		$	32

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:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Net Assets as of beginning of period	$	9		$	2
Change in fair value recorded in Regulatory liabilities	—			2
Purchases, issuances, and settlements
Settlements	(4		)	(3		)
Net Assets as of March 31	$	5		$	1
The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at March 31, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position	$	3		$	—

33

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in market liquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period.

There were no transfers between Levels 1 and 2 for the Registrants during the three months endedMarch 31, 2018 and 2017, and there were no transfers from or into Level 3 for DTE Electric during the same periods.

The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:

	March 31, 2018
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	66	$	(76	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.37	)	—	$	4.10	/MMBtu	$	(0.08	)/MMBtu
Electricity	$	21	$	(34	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(6	)	—	$	8	/MWh	$	—

	December 31, 2017
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	97	$	(126	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.10	)	—	$	9.75	/MMBtu	$	(0.03	)/MMBtu
Electricity	$	42	$	(30	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(5	)	—	$	15	/MWh	$	2	/MWh

The unobservable inputs used in the fair value measurement of the electricity and natural gas commodity types consist of inputs that are less observable due in part to lack of available broker quotes, supported by little, if any, market activity at the measurement date or are based on internally developed models. Certain basis prices (i.e., the difference in pricing between two locations) included in the valuation of natural gas and electricity contracts were deemed unobservable.

The inputs listed above would have a direct impact on the fair values of the above security types if they were adjusted. A significant increase (decrease) in the basis price would result in a higher (lower) fair value for long positions, with offsetting impacts to short positions.

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments for DTE Energy:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable(a), excluding capital leases	$	37	$	—	$	—	$	37	$	38	$	—	$	—	$	38
Dividends payable	$	160	$	160	$	—	$	—	$	158	$	158	$	—	$	—
Short-term borrowings	$	635	$	—	$	635	$	—	$	621	$	—	$	621	$	—
Notes payable — Other(b), excluding capital leases	$	12	$	—	$	—	$	12	$	12	$	—	$	—	$	12
Long-term debt(c)	$	12,289	$	1,874	$	10,136	$	813	$	12,288	$	1,939	$	10,571	$	764

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

34

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents the carrying amount and fair value of financial instruments for DTE Electric:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Short-term borrowings — affiliates	$	142	$	—	$	—	$	142	$	116	$	—	$	—	$	116
Short-term borrowings — other	$	380	$	—	$	380	$	—	$	238	$	—	$	238	$	—
Notes payable — Other(b), excluding capital leases	$	2	$	—	$	—	$	2	$	2	$	—	$	—	$	2
Long-term debt(c)	$	6,018	$	—	$	6,194	$	171	$	6,017	$	—	$	6,441	$	171

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

For further fair value information on financial and derivative instruments, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Nuclear Decommissioning Trust Funds

DTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of its operating licenses. This obligation is reflected as an Asset retirement obligation on DTE Electric's Consolidated Statements of Financial Position. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste.

The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:

	March 31, 2018		December 31, 2017
	(In millions)
Fermi 2	$	1,463	$	1,475
Fermi 1	3		3
Low-level radioactive waste	15		14
	$	1,481	$	1,492

The costs of securities sold are determined on the basis of specific identification. 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,
	2018			2017
	(In millions)
Realized gains	$	23		$	23
Realized losses	$	(9	)	$	(8	)
Proceeds from sale of securities	$	336		$	394

Realized gains and losses from the sale of securities and unrealized gains and losses incurred by the Fermi 2 trust are recorded to the Regulatory asset and Nuclear decommissioning liability. Realized gains and losses from the sale of securities and unrealized gains and losses on the low-level radioactive waste funds are recorded to the Nuclear decommissioning liability.

35

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:

	March 31, 2018							December 31, 2017
	Fair Value		Unrealized Gains		Unrealized Losses			Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	933	$	302	$	(38	)	$	978	$	320	$	(32	)
Fixed income securities	530		8		(7		)	495		13		(3		)
Private equity securities	5		—		—			5		—		—
Cash equivalents	13		—		—			14		—		—
	$	1,481	$	310	$	(45	)	$	1,492	$	333	$	(35	)

The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:

	March 31, 2018
	(In millions)
Due within one year	$	25
Due after one through five years	108
Due after five through ten years	117
Due after ten years	280
	$	530

Other Securities

At March 31, 2018 and December 31, 2017, the Registrants' securities were comprised primarily of money market and equity securities. Losses related to equity securities held at March 31, 2018 were $3 million and gains related to equity securities held at March 31, 2017 were $8 million for the Registrants. The gains or losses related to the Rabbi Trust assets, included in Other investments at DTE Energy, are allocated from DTE Energy to DTE Electric.

NOTE 8 — FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS

The Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of Financial Position unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. Gains or losses from the ineffective portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative and hedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period.

The Registrants’ primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk management policies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivative instruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain coal forwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas inventory, pipeline transportation contracts, renewable energy credits, and natural gas storage assets.

36

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward energy contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

DTE Gas — DTE Gas purchases, stores, transports, distributes, and sells natural gas, and sells storage and transportation capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2021. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. DTE Gas may also sell forward transportation and storage capacity contracts. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.

Gas Storage and Pipelines — This segment is primarily engaged in services related to the gathering, transportation, and storage of natural gas. Primarily fixed-priced contracts are used in the marketing and management of transportation and storage services. Generally, these contracts are not derivatives and are therefore accounted for under the accrual method.

Power and Industrial Projects — This segment manages and operates energy and pulverized coal projects, a coke battery, reduced emissions fuel projects, landfill gas recovery, and power generation assets. Primarily fixed-price contracts are used in the marketing and management of the segment assets. These contracts are generally not derivatives and are therefore accounted for under the accrual method.

Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.

Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information. Based on DTE Energy's credit policies and its March 31, 2018 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.

Derivative Activities

DTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the risks within each contract. Accordingly, it records and manages the energy purchase and sale obligations under its contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The following describes the categories of activities represented by their operating characteristics and key risks:

• Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gas purchases and sales, natural gas transportation, and storage capacity. Changes in the value of derivatives in this category typically economically offset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting. The difference in accounting treatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.

37

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

• Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energy marketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.

• Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, or putting capital at risk. This activity is speculative in nature as opposed to hedging an existing exposure.

• Other — Includes derivative activity at DTE Electric related to FTRs. Changes in the value of derivative contracts at DTE Electric are recorded as Derivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in the PSCR mechanism when realized.

The following table presents the fair value of derivative instruments for DTE Energy:

	March 31, 2018					December 31, 2017
	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
	(In millions)
Derivatives not designated as hedging instruments
Commodity contracts
Natural gas	$	207	$	(196	)	$	357	$	(378	)
Electricity	183		(198		)	285		(275		)
Other	5		(1		)	9		(1		)
Foreign currency exchange contracts	2		(2		)	1		(3		)
Total derivatives not designated as hedging instruments	$	397	$	(397	)	$	652	$	(657	)
Current	$	294	$	(289	)	$	540	$	(558	)
Noncurrent	103		(108		)	112		(99		)
Total derivatives	$	397	$	(397	)	$	652	$	(657	)

The following table presents the fair value of derivative instruments for DTE Electric:

	March 31, 2018		December 31, 2017
	(In millions)
FTRs — Other current assets	$	5	$	9
Total derivatives not designated as hedging instruments	$	5	$	9

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.

DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had issued letters of credit of $1 million and $4 million outstanding at March 31, 2018 and December 31, 2017, respectively, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $5 million and $4 million at March 31, 2018 and December 31, 2017, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.

38

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

For DTE Energy, the total cash collateral posted, net of cash collateral received, was $18 million and $28 million as of March 31, 2018 and December 31, 2017, respectively. DTE Energy had $7 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $22 million as of March 31, 2018. DTE Energy had $9 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $22 million as of December 31, 2017. DTE Energy recorded cash collateral paid of $15 million and cash collateral received of $12 million not related to unrealized derivative positions as of March 31, 2018. DTE Energy recorded cash collateral paid of $18 million and cash collateral received of $3 million not related to unrealized derivative positions as of December 31, 2017. These amounts are included in Accounts receivable and Accounts payable and are recorded net by counterparty.

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:

	March 31, 2018									December 31, 2017
	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
	(In millions)
Derivative assets
Commodity contracts
Natural gas	$	207		$	(118	)	$	89		$	357		$	(256	)	$	101
Electricity	183			(135		)	48			285			(241		)	44
Other	5			—			5			9			—			9
Foreign currency exchange contracts	2			(2		)	—			1			(1		)	—
Total derivative assets	$	397		$	(255	)	$	142		$	652		$	(498	)	$	154
Derivative liabilities
Commodity contracts
Natural gas	$	(196	)	$	126		$	(70	)	$	(378	)	$	263		$	(115	)
Electricity	(198		)	142			(56		)	(275		)	246			(29		)
Other	(1		)	—			(1		)	(1		)	1			—
Foreign currency exchange contracts	(2		)	2			—			(3		)	1			(2		)
Total derivative liabilities	$	(397	)	$	270		$	(127	)	$	(657	)	$	511		$	(146	)

The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:

	March 31, 2018												December 31, 2017
	Derivative Assets						Derivative Liabilities						Derivative Assets						Derivative Liabilities
	Current			Noncurrent			Current			Noncurrent			Current			Noncurrent			Current			Noncurrent
	(In millions)
Total fair value of derivatives	$	294		$	103		$	(289	)	$	(108	)	$	540		$	112		$	(558	)	$	(99	)
Counterparty netting	(205		)	(43		)	205			43			(437		)	(52		)	437			52
Collateral adjustment	(5		)	(2		)	15			7			—			(9		)	22			—
Total derivatives as reported	$	84		$	58		$	(69	)	$	(58	)	$	103		$	51		$	(99	)	$	(47	)

39

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:

Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended March 31,
		2018			2017
		(In millions)
Commodity contracts
Natural gas	Operating Revenues — Non-utility operations	$	(110	)	$	57
Natural gas	Fuel, purchased power, and gas — non-utility	52			61
Electricity	Operating Revenues — Non-utility operations	129			(7		)
Other	Operating Revenues — Non-utility operations	(1		)	—
Foreign currency exchange contracts	Operating Revenues — Non-utility operations	2			—
Total		$	72		$	111

Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, and gas — non-utility.

The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of March 31, 2018:

Commodity	Number of Units
Natural gas (MMBtu)	1,858,053,782
Electricity (MWh)	38,397,695
Foreign currency exchange (Canadian dollars)	103,281,830

Various subsidiaries of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy’s credit rating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”) state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”) are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and coal) and the provisions and maturities of the underlying transactions. As of March 31, 2018, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $513 million.

As of March 31, 2018, DTE Energy had $290 million of derivatives in net liability positions, for which hard triggers exist. There is nocollateral that has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for which contractual offset exists were $230 million. The net remaining amount of $60 million is derived from the $513 millionnoted above.

NOTE 9 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance.

40

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The agreements require DTE Energy, DTE Electric, and DTE Gas to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In the agreements, “total funded debt” means all indebtedness of each respective company and their consolidated subsidiaries, including capital lease obligations, hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. “Capitalization” means the sum of (a) total funded debt plus (b) “consolidated net worth,” which is equal to consolidated total equity of each respective company and their 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 March 31, 2018, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.53 to 1, 0.51 to 1, and 0.46 to 1, respectively, and were in compliance with this financial covenant.

The availability under the facilities in place at March 31, 2018 is shown in the following table:

	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured letter of credit facility, expiring in February 2019	$	150	$	—	$	—	$	150
Unsecured letter of credit facility, expiring in September 2019	70		—		—		70
Unsecured revolving credit facility, expiring April 2022	1,200		400		300		1,900
	1,420		400		300		2,120
Amounts outstanding at March 31, 2018
Commercial paper issuances	—		380		255		635
Letters of credit	221		—		—		221
	221		380		255		856
Net availability at March 31, 2018	$	1,199	$	20	$	45	$	1,264

DTE Energy has $9 million of other outstanding letters of credit which are used for various corporate purposes and are not included in the facilities described above.

In conjunction with maintaining certain exchange traded risk management positions, DTE Energy may be required to post collateral with its clearing agent. DTE Energy has a demand financing agreement for up to $100 million with its clearing agent. The agreement, as amended, also allows for up to $50 million of additional margin financing provided that DTE Energy posts a letter of credit for the incremental amount and allows the right of setoff with posted collateral. At March 31, 2018, the capacity under this facility was $125 million. The amount outstanding under this agreement was $84 million and $56 million at March 31, 2018 and December 31, 2017, respectively, and was fully offset by the posted collateral.

NOTE 10 — COMMITMENTS AND CONTINGENCIES

Environmental

DTE Electric

Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO₂ and NO_X. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce SO₂, NO_X, mercury, and other emissions. Additional rulemakings may occur over the next few years which could require additional controls for SO₂, NO_X, and other hazardous air pollutants.

The EPA proposed revised air quality standards for ground level ozone in November 2014 and specifically requested comments on the form and level of the ozone standards. The standards were finalized in October 2015. The State of Michigan recommended to the EPA in October 2016 which areas of the state are not attaining the new standard. In November 2017, the EPA completed the majority of the United States attainment/unclassifiable area designations. The Registrants expect the EPA to complete the remaining designations, including the non-attainment area descriptions with the 2015 ozone standards by the second quarter of 2018. DTE Electric cannot predict the financial impact of the revised ozone standards at this time.

41

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

In July 2009, DTE Energy received a NOV/FOV from the EPA alleging, among other things, that five DTE Electric power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and operating permit requirements under the Clean Air Act. In June 2010, the EPA issued a NOV/FOV making similar allegations related to a project and outage at Unit 2 of the Monroe Power Plant. In March 2013, DTE Energy received a supplemental NOV from the EPA relating to the July 2009 NOV/FOV. The supplemental NOV alleged additional violations relating to the New Source Review provisions under the Clean Air Act, among other things.

In August 2010, the U.S. Department of Justice, at the request of the EPA, brought a civil suit in the U.S. District Court for the Eastern District of Michigan against DTE Energy and DTE Electric, related to the June 2010 NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant. In August 2011, the U.S. District Court judge granted DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric. In October 2011, the EPA filed a Notice of Appeal to the Court of Appeals for the Sixth Circuit. In March 2013, the Court of Appeals remanded the case to the U.S. District Court for review of the procedural component of the New Source Review notification requirements. In September 2013, the EPA filed a motion seeking leave to amend their complaint regarding the June 2010 NOV/FOV adding additional claims related to outage work performed at the Trenton Channel and Belle River Power Plants as well as additional claims related to work performed at the Monroe Power Plant. In March 2014, the U.S. District Court judge again granted DTE Energy's motion for summary judgment dismissing the civil case related to Monroe Unit 2. In April 2014, the U.S. District Court judge granted motions filed by the EPA and the Sierra Club to amend their New Source Review complaint adding additional claims for Monroe Units 1, 2, and 3, Belle River Units 1 and 2, and Trenton Channel Unit 9. In October 2014, the EPA and the U.S. Department of Justice filed a notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. The amended New Source Review claims were all stayed pending resolution of the appeal by the Court of Appeals for the Sixth Circuit. On January 10, 2017, a divided panel of the Court reversed the decision of the U.S. District Court. On May 8, 2017, DTE Energy and DTE Electric filed a motion to stay the mandate pending filing of a petition for writ of certiorari with the U.S. Supreme Court. The Sixth Circuit granted the motion on May 16, 2017, staying the claims in the U.S. District Court until the U.S. Supreme Court disposes of the case. DTE Electric and DTE Energy filed a petition for writ of certiorari on July 31, 2017. On December 11, 2017, the U.S. Supreme Court denied certiorari. As a result of the Supreme Court electing not to review the matter, the case was sent back to the U.S. District Court for further proceedings.

The Registrants believe that the plants and generating units identified by the EPA and the Sierra Club have complied with all applicable federal environmental regulations. Depending upon the outcome of the litigation and further discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be required to install additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control equipment is not economical, engage in supplemental environmental programs, and/or pay fines. The Registrants cannot predict the financial impact or outcome of this matter, or the timing of its resolution.

The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, in 2015 the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA's repeal and possible replacement of the Clean Power Plan on existing sources at this time.

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

To comply with air pollution requirements, DTE Electric spent approximately $2.4 billion through 2017. DTE Electric does not anticipate additional capital expenditures through 2024.

42

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Water — In response to an EPA regulation, DTE Electric was required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. Based on the results of completed studies and expected future studies, DTE Electric may be required to install technologies to reduce the impacts of the water intake structures. A final rule became effective in October 2014. The final rule requires studies to be completed and submitted as part of the National Pollutant Discharge Elimination System (NPDES) permit application process to determine the type of technology needed to reduce impacts to fish. DTE Electric has initiated the process of completing the required studies. Final compliance for the installation of any required technology will be determined by each state on a case by case, site specific basis. DTE Electric is currently evaluating the compliance options and working with the State of Michigan on evaluating whether any controls are needed. These evaluations/studies may require modifications to some existing intake structures. It is not possible to quantify the impact of this rulemaking at this time.

Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured locally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedial investigations at contaminated sites, including three former MGP sites. The investigations have revealed contamination related to the by-products of gas manufacturing at each MGP site. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the area surrounding an ash landfill, electrical distribution substations, electric generating power plants, and underground and aboveground storage tank locations. The findings of these investigations indicated that the estimated cost to remediate these sites is expected to be incurred over the next several years. At March 31, 2018 and December 31, 2017, DTE Electric had $6 million accrued for remediation. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site.

Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of coal combustion residuals, commonly known as coal ash, became effective in October 2015, and was revised in October 2016. On March 15, 2018, the EPA published a proposed rule for public comment that is expected to be issued in final form in 2019. Some of the proposed rule provisions could change compliance and closure plans for CCR units if included in the final rule. DTE Electric owns and operates three permitted engineered coal ash storage facilities to dispose of coal ash from coal-fired power plants and operates a number of smaller impoundments at its power plants. CCR obligations vary based on plant life, but include the installation of monitoring wells, compliance with groundwater standards, and the closure of landfills and basins at the end of the useful life of the associated power plant or as a basin becomes inactive.

In November 2015, the EPA finalized the ELG Rule for the steam electric power generating industry which may require additional controls to be installed between 2018 and 2023. Compliance schedules for individual facilities and individual waste streams are determined through issuance of new wastewater permits by the State of Michigan. The State of Michigan has issued a National Pollutant Discharge Elimination System permit for the Belle River Power Plant establishing a compliance deadline of December 31, 2021. No new permits have been issued for other facilities, consequently no compliance timelines have been established. Under the current rule, certain ELG requirements would be required to be performed in conjunction with the CCR. Over the next six years, to comply with the ELG requirements of the November 2015 rules and for the CCR requirements, costs associated with the building of new facilities or installation of controls are estimated to be approximately $283 million.

On April 12, 2017, the EPA granted a petition for reconsideration of the ELG Rule. The EPA also signed an administrative stay of the ELG Rule’s compliance deadlines for fly ash transport water, bottom ash transport water, and flue gas desulfurization (FGD) wastewater, among others. On June 6, 2017, the EPA published in the Federal Register a proposed rule to postpone certain applicable deadlines within the ELG rule. The final rule was published on September 18, 2017, which extended the earliest compliance deadlines for the FGD wastewater and bottom ash transport until November 1, 2020 in order for the EPA to propose and finalize a new ruling. The ELG compliance requirements, final deadlines, and compliance costs will not be known until the EPA completes its reconsideration of the ELG Rule.

43

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Gas

Contaminated and Other Sites — DTE Gas owns or previously owned, 14 former MGP sites. Investigations have revealed contamination related to the by-products of gas manufacturing at each site. Cleanup of six of the MGP sites is complete, and the sites are closed. DTE Gas has also completed partial closure of six additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established a cost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is also in the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As of March 31, 2018 and December 31, 2017, DTE Gas had $40 million and $41 million accrued for remediation, respectively.  Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows for amortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will prevent environmental costs from having a material adverse impact on DTE Gas' results of operations.

Non-utility

DTE Energy's non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environment from various pollutants.

Other

In 2010, the EPA finalized a new one-hour SO₂ ambient air quality standard that requires states to submit plans and associated timelines for non-attainment areas that demonstrate attainment with the new SO₂ standard in phases. Phase 1 addresses non-attainment areas designated based on ambient monitoring data. Phase 2 addresses non-attainment areas with large sources of SO₂ and modeled concentrations exceeding the National Ambient Air Quality Standards for SO₂. Phase 3 addresses smaller sources of SO₂ with modeled or monitored exceedances of the new SO₂ standard.

Michigan's Phase 1 non-attainment area includes DTE Energy facilities in southwest Detroit and areas of Wayne County. Modeling runs by the MDEQ suggest that emission reductions may be required by significant sources of SO₂ emissions in these areas, including DTE Electric power plants and DTE Energy's Michigan coke battery facility. As part of the state implementation plan process, DTE Energy has worked with the MDEQ to develop air permits reflecting significant SO₂ emission reductions that, in combination with other non-DTE Energy sources' emission reduction strategies, will help the state attain the standard and sustain its attainment. Since several non-DTE Energy sources are also part of the proposed compliance plan, DTE Energy is unable to determine the full impact of the final required emissions reductions at this time.

Michigan's Phase 2 non-attainment area includes DTE Electric facilities in St. Clair County. State implementation plan (SIP) submittal and EPA approval describing the control strategy and timeline for demonstrating compliance with the new SO₂ standard is the next step in the process, expected to be completed by the end of the year. DTE Energy is currently working with the MDEQ to develop the required SIP. DTE Energy is unable to determine the full impact of the SIP strategy.

Synthetic Fuel Guarantees

DTE Energy discontinued the operations of its synthetic fuel production facilities throughout the United States as of December 31, 2007. DTE Energy provided certain guarantees and indemnities in conjunction with the sales of interests in its synfuel facilities. The guarantees cover potential commercial, environmental, oil price, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at March 31, 2018 was approximately $400 million. Payments under these guarantees are considered remote.

REF Guarantees

DTE Energy has provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its REF facilities. The guarantees cover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at March 31, 2018 was approximately $420 million. Payments under these guarantees are considered remote.

44

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NEXUS Guarantees

NEXUS entered into certain 15-year capacity lease agreements for the transportation of natural gas with DTE Gas and Texas Eastern Transmission, LP, an unrelated third party. Pursuant to the terms of those agreements, in December 2016, DTE Energy executed separate guarantee agreements with DTE Gas and Texas Eastern Transmission, LP, with maximum potential payments totaling $82 million and $11 million at March 31, 2018, respectively; each representing 50% of all payment obligations due and payable by NEXUS. Should NEXUS fail to perform under the terms of those agreements, DTE Energy is required to perform on its behalf. Each guarantee terminates at the earlier of (i) such time as all of the guaranteed obligations have been fully performed, or (ii) two months following the end of the primary term of the capacity lease agreements. Subsequent to the NEXUS in-service date, the amount of each guarantee decreases annually as payments are made by NEXUS to each of the aforementioned counterparties. Payments under these guarantees are considered remote.

Other Guarantees

In certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. Finally, the Registrants may provide indirect guarantees for the indebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling $55 million at March 31, 2018. Payments under these guarantees are considered remote.

DTE Energy is periodically required to obtain performance surety bonds in support of obligations to various governmental entities and other companies in connection with its operations. As of March 31, 2018, DTE Energy had $59 million of performance bonds outstanding. In the event that such bonds are called for nonperformance, DTE Energy would be obligated to reimburse the issuer of the performance bond. DTE Energy is released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.

Labor Contracts

There are several bargaining units for DTE Energy subsidiaries' approximate 5,000 represented employees, including DTE Electric's approximate 2,700 represented employees. The majority of the represented employees are under contracts that expire in 2020 and 2021.

Purchase Commitments

Utility capital expenditures, expenditures for non-utility businesses, and contributions to equity method investees will be approximately $3.6 billion and $1.9 billion in 2018 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2018 annual capital expenditures and contributions to equity method investees.

Other Contingencies

The Registrants are 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 Registrants cannot predict the final disposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.

For a discussion of contingencies related to regulatory matters and derivatives, see Notes 5 and 8 to the Consolidated Financial Statements, "Regulatory Matters" and "Financial and Other Derivative Instruments," respectively.

45

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 11 — RETIREMENT BENEFITS AND TRUSTEED ASSETS

The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:

	Pension Benefits						Other Postretirement Benefits
	2018			2017			2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	25		$	24		$	7		$	7
Interest cost	50			54			17			18
Expected return on plan assets	(82		)	(78		)	(36		)	(33		)
Amortization of:
Net actuarial loss	44			43			3			3
Prior service credit	—			—			—			(3		)
Net periodic benefit cost (credit)	$	37		$	43		$	(9	)	$	(8	)

DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are sponsored by DTE Energy's subsidiary, DTE Energy Corporate Services, LLC. DTE Electric accounts for its participation in DTE Energy's qualified and nonqualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer. Plan participants of all plans are solely DTE Energy and affiliate participants.

DTE Energy's subsidiaries are responsible for their share of qualified and nonqualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in capital expenditures and operating and maintenance expense were $30 million and $35 million for the three months endedMarch 31, 2018 and 2017, respectively. These amounts include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following tables detail the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:

	Other Postretirement Benefits
	2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	5		$	5
Interest cost	13			14
Expected return on plan assets	(24		)	(23		)
Amortization of:
Net actuarial loss	2			2
Prior service credit	—			(2		)
Net periodic benefit credit	$	(4	)	$	(4	)

Pension and Other Postretirement Contributions

During 2018, DTE Energy contributed the following amounts of DTE Energy common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust:

Date	Number of Shares	Price per Share	Amount
			(In millions)
March 7, 2018	1,751,401	$99.92	$	175

46

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The above contribution was made on behalf of DTE Electric, who paid DTE Energy cash consideration of $175 million in March 2018. During the first three months of 2017, DTE Energy made cash contributions of $126 million, including contributions from DTE Electric of $125 million, to its pension plans. At the discretion of management and depending upon financial market conditions, DTE Energy may make additional contributions up to $25 million to its pension plans in 2018, with no additional contributions planned from DTE Electric.

DTE Energy does not anticipate making any contributions to the other postretirement benefit plans in 2018.

NOTE 12 — SEGMENT AND RELATED INFORMATION

DTE Energy sets strategic goals, allocates resources, and evaluates performance based on the following structure:

Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan.

Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.

Gas Storage and Pipelines is primarily engaged in services related to the gathering, transportation, and storage of natural gas.

Power and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, produce reduced emissions fuel, and sell electricity and pipeline-quality gas from renewable energy projects.

Energy Trading consists of energy marketing and trading operations.

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds energy-related investments.

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Electric	$	13	$	12
Gas	2		3
Gas Storage and Pipelines	8		7
Power and Industrial Projects	155		168
Energy Trading	7		11
Corporate and Other	1		1
	$	186	$	202

47

DTE Energy Company — DTE Electric Company

Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Financial data of DTE Energy's business segments follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Utility operations
Electric	$	1,205		$	1,175
Gas	550			557
Operating Revenues — Non-utility operations
Gas Storage and Pipelines	119			105
Power and Industrial Projects	567			548
Energy Trading	1,498			1,052
Corporate and Other	—			1
Reconciliation and Eliminations	(186		)	(202		)
Total	$	3,753		$	3,236

Net Income (Loss) Attributable to DTE Energy by Segment:
Electric	$	140		$	106
Gas	104			107
Gas Storage and Pipelines	62			45
Power and Industrial Projects	45			30
Energy Trading	31			96
Corporate and Other	(21		)	16
Net Income Attributable to DTE Energy Company	$	361		$	400

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

EXECUTIVE OVERVIEW

DTE Energy is a diversified energy company and is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy operates three energy-related non-utility segments with operations throughout the United States.

48

The following table summarizes DTE Energy's financial results:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share amounts)
Net Income Attributable to DTE Energy Company	$	361	$	400
Diluted Earnings per Common Share	$	2.00	$	2.23

The decrease in Net Income in the three months endedMarch 31, 2018 was primarily due to lower earnings in the Energy Trading and Corporate and Other segments, partially offset by higher earnings in the Electric, Gas Storage and Pipelines, and Power and Industrial Projects segments. The decrease in the first quarter of 2018 was also due to true-up adjustments for the remeasurement of deferred taxes of $21 million. The impact of the true-up adjustments was an increase in Income Tax Expense, of which $16 million was attributable to the regulated utilities and offset to Regulatory liabilities.Total Income Tax Expense decreased from the prior year due to the reduction of the corporate tax rate from 35% to 21%, which became effective in 2018.

Please see detailed explanations of segment performance in the following "Results of Operations" section.

DTE Energy's strategy is to achieve long-term earnings growth, a strong balance sheet, and an attractive dividend yield.

DTE Energy's utilities are investing capital to improve customer reliability through investments in base infrastructure and new generation, and to comply with environmental requirements. DTE Energy expects that planned significant capital investments will result in earnings growth. DTE Energy is focused on executing plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. DTE Energy operates in a constructive regulatory environment and has solid relationships with its regulators.

In May 2017, DTE Energy announced its plan to reduce carbon emissions. This goal will be attained by cutting carbon emissions 30% by the early 2020s, 45% by 2030, 75% by 2040, and more than 80% by 2050. To achieve this reduction, DTE Energy will transition away from coal-powered sources and incorporate more renewable energy, energy efficiency, demand response, and highly-efficient natural gas fueled power plants. DTE Energy has already begun the transition in the way it produces power through the continued retirement of its aging coal-fired plants. Refer to the "Capital Investments" section below for further discussion.

DTE Energy has significant investments in non-utility businesses. DTE Energy employs disciplined investment criteria when assessing growth opportunities that leverage its assets, skills, and expertise, and provides diversity in earnings and geography. Specifically, DTE Energy invests in targeted energy markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. DTE Energy expects growth opportunities in the Gas Storage and Pipelines and Power and Industrial Projects segments.

A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced short-term and long-term financing. Near-term growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has an enterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related to commodity price changes, interest rates, and counterparty credit risk.

CAPITAL INVESTMENTS

DTE Energy's utility businesses require significant capital investments to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with environmental regulations and renewable energy requirements.

49

DTE Electric's capital investments over the 2018-2022 period are estimated at $10.4 billion comprised of $4.1 billion for capital replacements and other projects, $4.3 billion for distribution infrastructure, and $2.0 billion for new generation. DTE Electric has retired four coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities and has announced plans to retire its remaining thirteen coal-fired generating units. Seven of these coal-fired generating units will be retired through 2023 at the Trenton Channel, River Rouge, and St. Clair facilities. The remaining coal-fired generating units at the Belle River and Monroe facilities are expected to be retired by 2040. The retired facilities will be replaced with renewables, energy efficiency, demand response, and natural gas fueled generation. DTE Electric constructed and placed in service 50 megawatts of solar generation in 2017. DTE Electric plans to build a natural gas fueled combined cycle generation facility to provide approximately 1,100 megawatts of energy beginning in 2022. In the third quarter of 2017, DTE Electric filed a CON with the MPSC seeking approval for the planned build of this natural gas plant. In March 2018, DTE Electric filed its 2018 Renewable Energy Plan with the MPSC proposing approximately 1,000 additional megawatts of energy from new wind and solar projects to be completed by 2022. The MPSC had previously approved 300 of the 1,000 additional megawatts for wind projects in an MPSC order received in September 2016. In January 2018, DTE Electric filed with the MPSC its five-year distribution operations investment and maintenance plan to improve system reliability. DTE Electric plans to seek regulatory approval for capital expenditures consistent with prior ratemaking treatment.

DTE Gas' capital investments over the 2018-2022 period are estimated at $2.1 billion comprised of $950 million for base infrastructure, $1.1 billion for gas main renewal, meter move out, and pipeline integrity programs, and $10 million for expenditures related to the NEXUS Pipeline. DTE Gas plans to seek regulatory approval in general rate case filings for base infrastructure capital expenditures consistent with prior ratemaking treatment.

DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance. Gas Storage and Pipelines' capital investments over the 2018-2022 period are estimated at $2.8 billion to $3.4 billion for gathering and pipeline investments and expansions, including the NEXUS Pipeline. Power and Industrial Projects' capital investments over the 2018-2022 period are estimated at $800 million to $1.2 billion for investments in cogeneration and on-site energy projects.

ENVIRONMENTAL MATTERS

The Registrants are subject to extensive environmental regulation. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect to continue recovering environmental costs related to utility operations through rates charged to customers, as authorized by the MPSC.

DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO₂ and NO_X. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce SO₂, NO_X, mercury, and other emissions. Additional rulemakings may occur over the next few years which could require additional controls for SO₂, NO_X, and other hazardous air pollutants. To comply with existing requirements, DTE Electric spent approximately $2.4 billion through 2017. DTE Electric does not anticipate additional capital expenditures through 2024.

The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, in 2015 the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA's repeal and possible replacement of the Clean Power Plan on existing sources at this time.

50

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives, could also increase the economic viability of energy produced from renewable, natural gas fueled generation, and/or nuclear sources, energy efficiency initiatives, and the potential development of market-based trading of carbon instruments which could provide new business opportunities for DTE Energy's utility and non-utility segments. At the present time, it is not possible to quantify the financial impacts of these climate related regulatory initiatives on the Registrants or their customers.

For further discussion of environmental matters, see Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies."

OUTLOOK

The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.

Looking forward, DTE Energy will focus on several areas that are expected to improve future performance:

• electric and gas customer satisfaction;

• electric distribution system reliability;

• new electric generation;

• gas distribution system renewal;

• rate competitiveness and affordability;

• regulatory stability and investment recovery for the electric and gas utilities;

• employee safety and engagement;

• cost structure optimization across all business segments;

• cash, capital, and liquidity to maintain or improve financial strength; and

• investments that integrate assets and leverage skills and expertise.

DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic, financial, and risk criteria.

RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations includes financial information prepared in accordance with GAAP, as well as the non-GAAP financial measures, Utility Margin and Non-utility Margin, discussed below, which DTE Energy uses as measures of its operational performance. Generally, a non-GAAP financial measure is a numerical measure of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

DTE Energy uses Utility Margin and Non-utility Margin, non-GAAP financial measures, to assess its performance by reportable segment.

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Utility Margin includes electric and gas Operating Revenues net of Fuel, purchased power, and gas expenses. The utilities’ fuel, purchased power, and natural gas supply are passed through to customers, and therefore, result in changes to the utilities’ revenues that are comparable to changes in such expenses. As such, DTE Energy believes Utility Margin provides a meaningful basis for evaluating the utilities’ operations across periods, as it excludes the revenue effect of fluctuations in these expenses.

The Non-utility Margin relates to the Power and Industrial Projects and Energy Trading segments. For the Power and Industrial Projects segment, Non-utility Margin primarily includes Operating Revenues net of Fuel, purchased power, and gas expenses. Operating Revenues include sales of refined coal to third parties and the affiliated Electric utility, metallurgical coke and related by-products, petroleum coke, renewable natural gas, and electricity, as well as rental income and revenues from utility-type consulting, management, and operational services. For the Energy Trading segment, Non-utility Margin includes revenue and realized and unrealized gains and losses from physical and financial power and gas marketing, optimization, and trading activities, net of Purchased power and gas related to these activities. DTE Energy evaluates its operating performance of these non-utility businesses using the measure of Operating Revenues net of Fuel, purchased power, and gas expenses.

Utility Margin and Non-utility Margin are not measures calculated in accordance with GAAP and should be viewed as a supplement to and not a substitute for the results of operations presented in accordance with GAAP. Utility Margin and Non-utility Margin do not intend to represent operating income, the most comparable GAAP measure, as an indicator of operating performance and are not necessarily comparable to similarly titled measures reported by other companies.

The following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information, described below, includes intercompany revenues and expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric	$	140		$	106
Gas	104			107
Gas Storage and Pipelines	62			45
Power and Industrial Projects	45			30
Energy Trading	31			96
Corporate and Other	(21		)	16
Net Income Attributable to DTE Energy Company	$	361		$	400

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ELECTRIC

The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction H(2) of Form 10-Q.

The Electric segment consists principally of DTE Electric. Electric results are discussed below:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Operating Revenues — Utility operations	$	1,205	$	1,175
Fuel and purchased power — utility	339		314
Utility Margin	866		861
Operation and maintenance	312		371
Depreciation and amortization	212		181
Taxes other than income	81		80
Operating Income	261		229
Other (Income) and Deductions	74		66
Income Tax Expense	47		57
Net Income Attributable to DTE Energy Company	$	140	$	106

See DTE Electric's Consolidated Statements of Operations for a complete view of its results.

Utility Marginincreased$5 million in the three months endedMarch 31, 2018. Revenues associated with certain mechanisms and surcharges are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.

The following table details changes in various Utility Margin components relative to the comparable prior period:

	Three Months
	(In millions)
Implementation of new rates	$	14
Weather	25
Base sales	(5		)
TCJA rate reduction reserve	(39		)
Regulatory mechanisms and other	10
Increase in Utility Margin	$	5

	Three Months Ended March 31,
	2018	2017
	(In thousands of MWh)
DTE Electric Sales
Residential	3,677	3,518
Commercial	4,030	4,083
Industrial	2,604	2,375
Other	57	79
	10,368	10,055
Interconnection sales(a)	1,082	672
Total DTE Electric Sales	11,450	10,727
DTE Electric Deliveries
Retail and wholesale	10,368	10,055
Electric retail access, including self-generators(b)	1,142	1,194
Total DTE Electric Sales and Deliveries	11,510	11,249

______________________________

(a) Represents power that is not distributed by DTE Electric.

(b) Represents deliveries for self-generators that have purchased power from alternative energy suppliers to supplement their power requirements.

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Operation and maintenance expense decreased$59 million in the three months endedMarch 31, 2018. The decrease was primarily due to decreased power plant generation expenses of $24 million, lower storm restoration expenses of $30 million, and a one-time benefits expense reimbursement of $9 million. The decrease in power plant generation expenses includes a decrease of $9 million of costs related to the 2016 fire at a generation facility incurred in 2017 and $7 million in related insurance proceeds received in 2018.

Depreciation and amortization expense increased$31 million in the three months endedMarch 31, 2018. The increase was primarily due to $14 million increased expense due to an increased depreciable base and an increase of $18 million associated with the TRM.

Other (Income) and Deductionsincreased$8 million in the three months endedMarch 31, 2018. The increase was primarily due to higher interest expense of $2 million and lower investment earnings of $10 million, partially offset by decreased non-operating retirement benefits, net of $4 million.

Outlook— DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability. Looking forward, additional factors may impact earnings, such as weather, the outcome of regulatory proceedings, benefit plan design changes, investment returns and changes in discount rate assumptions in benefit plans and health care costs, impact of 2016 Michigan energy legislation, uncertainty of legislative or regulatory actions regarding climate change, and effects of energy waste reduction programs.

DTE Electric filed a rate case with the MPSC on April 19, 2017 requesting an increase in base rates of $231 million based on a projected twelve-month period ending October 31, 2018. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructure investments, environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. On November 1, 2017, DTE Electric self-implemented a base rate increase of $125 million. On April 18, 2018, the MPSC issued an order approving an annual revenue increase of $65.2 million for service rendered on or after May 1, 2018. The MPSC authorized a return on equity of 10.0%. DTE Electric has recorded a refund liability of $25 million, representing the total estimated refund due to customers, inclusive of interest, at March 31, 2018.

On January 19, 2018, DTE Electric filed information with the MPSC regarding the potential change in revenue requirements due to the TCJA effective January 1, 2018, and outlined its recommended method to flow the current and deferred tax benefits of those impacts to ratepayers.

On February 22, 2018, the MPSC issued an order in this case requiring utilities, including DTE Electric, to follow a 3-step approach of credits and calculations. The first step is to establish Credit A, through contested cases. Credit A is a going-forward tax credit to reflect the reduction of the corporate tax rate from 35% to 21%. The proposed new rates are expected to be effective July 1, 2018. DTE Electric is required to file its Credit A application by May 18, 2018. The second step is to establish Credit B, through contested cases. Credit B is a backward-looking tax credit to reflect the reduction of the corporate rate of 35% to 21%, for the period January 1, 2018 through the date Credit A is established. The Credit B filing is required within sixty days after Credit A is implemented. DTE Electric has been deferring the impact of the reduction to the corporate tax rate since January 1, 2018. The third step is to perform Calculation C, through contested cases. Calculation C will address all remaining issues relative to the new tax law, which is primarily the remeasurement of deferred taxes and how the amounts deferred as Regulatory liabilities will flow to ratepayers. DTE Electric is required to file Calculation C no later than October 1, 2018, unless it files a new general rate case prior to October 1, 2018, and address Calculation C within that filing.

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GAS

The Gas segment consists principally of DTE Gas. Gas results are discussed below:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Operating Revenues — Utility operations	$	550	$	557
Cost of gas — utility	220		221
Utility Margin	330		336
Operation and maintenance	111		107
Depreciation and amortization	32		30
Taxes other than income	21		20
Operating Income	166		179
Other (Income) and Deductions	14		13
Income Tax Expense	48		59
Net Income Attributable to DTE Energy Company	$	104	$	107

Utility Margindecreased$6 million in the three months endedMarch 31, 2018. Revenues associated with certain surcharges are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.

The following table details changes in various Utility Margin components relative to the comparable prior period:

	Three Months
	(In millions)
Weather	30
Midstream storage and transportation revenues	2
Revenue decoupling mechanism	(3		)
TCJA rate reduction reserve	(32		)
Other	(3		)
Decrease in Utility Margin	$	(6	)

	Three Months Ended March 31,
	2018	2017
	(In Bcf)
Gas Markets
Gas sales	62	53
End-user transportation	59	52
	121	105
Intermediate transportation	72	82
Total Gas sales	193	187

Operation and maintenance expense increased$4 million in the three months endedMarch 31, 2018. The increase was primarily due to increased uncollectible and gas operations expenses partially offset by a one-time benefits expense reimbursement.

Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, and investment returns and changes in discount rate assumptions in benefit plans and health care costs. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability.

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DTE Gas filed a rate case with the MPSC on November 22, 2017 requesting an increase in base rates of $85.1 million based on a projected twelve-month period ending September 30, 2019. The requested increase in base rates is primarily due to an increase in net plant. The rate filing also includes projected changes in sales, operations, maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. A final MPSC order in this case is expected by September 2018.

On January 19, 2018, DTE Gas filed information with the MPSC regarding the potential change in revenue requirements due to the TCJA effective January 1, 2018, and outlined its recommended method to flow the current and deferred tax benefits of those impacts to ratepayers.

On February 22, 2018, the MPSC issued an order in this case requiring utilities, including DTE Gas, to follow a 3-step approach of credits and calculations. The first step is to establish Credit A, through contested cases. Credit A is a going-forward tax credit to reflect the reduction of the corporate tax rate from 35% to 21%. DTE Gas submitted its Credit A filing on March 28, 2018, reflecting a reduction in revenues of $38.2 million. The second step is to establish Credit B, through contested cases. Credit B is a backward-looking tax credit to reflect the reduction of the corporate rate of 35% to 21%, for the period January 1, 2018 through the date Credit A is established. The Credit B filing is required within sixty days after Credit A is implemented. DTE Gas has been deferring the impact of the reduction to the corporate tax rate since January 1, 2018. The third step is to perform Calculation C, through contested cases. Calculation C will address all remaining issues relative to the new tax law, which is primarily the remeasurement of deferred taxes and how the amounts deferred as Regulatory liabilities will flow to ratepayers. DTE Gas is required to file Calculation C no later than October 1, 2018, unless it files a new general rate case prior to October 1, 2018, and address Calculation C within that filing.

GAS STORAGE AND PIPELINES

The Gas Storage and Pipelines segment consists of the non-utility gas pipelines and storage businesses. Gas Storage and Pipelines results are discussed below:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Non-utility operations	$	119		$	105
Cost of gas — Non-utility	4			6
Operation and maintenance	23			19
Depreciation and amortization	20			19
Taxes other than income	3			3
Asset (gains) losses and impairments, net	(2		)	—
Operating Income	71			58
Other (Income) and Deductions	(17		)	(14		)
Income Tax Expense	19			21
Net Income	69			51
Less: Net Income Attributable to Noncontrolling Interests	7			6
Net Income Attributable to DTE Energy Company	$	62		$	45

Operating Revenues — Non-utility operationsincreased$14 million in the three months endedMarch 31, 2018. The increase was primarily due to increased pipeline and gathering volumes.

Cost of gas — Non-utilitydecreased$2 million in the three months endedMarch 31, 2018. The decrease was primarily driven by less physical gas purchases from AGS customers for resale to optimize available transportation capacity.

Operation and maintenanceexpense increased$4 million in the three months endedMarch 31, 2018. The increase was primarily due to additional compression activity on the Bluestone Pipeline and Susquehanna gathering systems.

Outlook — The Bluestone Pipeline and Susquehanna gathering system are being expanded with additional compression facilities and gathering lines as needed to accommodate shipper demand. DTE Energy believes its long-term agreement with Southwestern Energy Production Company and the quality of the natural gas reserves in the Marcellus region soundly positions Bluestone Pipeline and Susquehanna gathering system for future growth.

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Progress continues on development activities on the NEXUS Pipeline, a transportation path to transport Appalachian Basin shale gas, including Utica and Marcellus shale gas, directly to consuming markets in northern Ohio, southeastern Michigan, and Dawn Ontario. DTE Energy owns a 50% partnership interest in the NEXUS Pipeline, with an investment balance of $704 million at March 31, 2018. The FERC application was approved on August 25, 2017 and construction commenced in October 2017. DTE Energy anticipates a third quarter 2018 in-service date for the NEXUS Pipeline.

AGS and SGG provide a platform for midstream growth and access to further investment opportunities in the Appalachian basin, an additional connection to the NEXUS Pipeline which should drive incremental volumes on the NEXUS Pipeline, and a new set of producer relationships that may lead to more partnering opportunities.

In March 2018, the FERC application was approved for the Birdsboro Pipeline, a 14-mile lateral to serve a new power plant in Pennsylvania. DTE Energy is targeting a 2018 in-service date.

Gas Storage and Pipelines expects to maintain its steady growth by developing an asset portfolio with multiple growth platforms through investment in new projects and expansions. Gas Storage and Pipelines will continue to look for additional investment opportunities and other storage and pipeline projects at favorable prices.

POWER AND INDUSTRIAL PROJECTS

The Power and Industrial Projects segment is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, produce reduced emissions fuel, and sell electricity and pipeline-quality gas from renewable energy projects. Power and Industrial Projects results are discussed below:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Non-utility operations	$	567		$	548
Fuel, purchased power, and gas — non-utility	498			486
Non-utility Margin	69			62
Operation and maintenance	82			82
Depreciation and amortization	16			18
Taxes other than income	4			4
Operating Loss	(33		)	(42		)
Other (Income) and Deductions	(18		)	(16		)
Income Taxes
Benefit	—			(6		)
Production Tax Credits	(43		)	(38		)
	(43		)	(44		)
Net Income	28			18
Less: Net Loss Attributable to Noncontrolling Interests	(17		)	(12		)
Net Income Attributable to DTE Energy Company	$	45		$	30

Operating Revenues — Non-utility operationsincreased$19 million in the three months endedMarch 31, 2018. The increase was due to the following:

	(In millions)
Higher demand due to improved conditions in the steel business	$	27
New projects and higher production in the renewables business	5
Lower coal prices, offset by higher production in the REF business	(8		)
Project termination in the on-site business	(5		)
	$	19

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Non-utility Marginincreased$7 million in the three months endedMarch 31, 2018. The increase was due to the following:

	(In millions)
Higher demand due to improved conditions in the steel business	$	4
New projects, higher production, and lower fuel cost in the renewables business	4
Project termination in the on-site business	(1		)
	$	7

Income Taxes — Production Tax Creditsincreased$5 million in the three months endedMarch 31, 2018. The increase was primarily due to the higher production in the REF business.

Net Loss Attributable to Noncontrolling Interestsincreased$5 million in the three months endedMarch 31, 2018. The increase was primarily due to higher production in the REF business.

Outlook — Power and Industrial Projects has constructed and placed in service REF facilities at eleven sites including facilities located at eight third-party owned coal-fired power plants. DTE Energy has sold membership interests in four of the facilities and entered into lease arrangements in three of the facilities. One of the third-party owned lease facilities ceased operations and the lease arrangement terminated effective April 2018. After the termination date, the REF business has ten remaining sites at seven third-party owned coal-fired power plants. DTE Energy will continue to optimize the remaining facilities by seeking investors or entering into lease arrangements for facilities operating at DTE Electric and other utility sites.

Power and Industrial Projects will continue to leverage its extensive energy-related operating experience and project management capability to develop additional energy projects to serve energy intensive industrial customers.

ENERGY TRADING

Energy Trading focuses on physical and financial power and natural gas marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, and related services, which may include the management of associated storage and transportation contracts on the customers' behalf, and the supply or purchase of renewable energy credits to various customers. Energy Trading results are discussed below:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Operating Revenues — Non-utility operations	$	1,498	$	1,052
Purchased power and gas — non-utility	1,436		873
Non-utility Margin	62		179
Operation and maintenance	17		19
Depreciation and amortization	1		1
Taxes other than income	2		1
Operating Income	42		158
Other (Income) and Deductions	1		1
Income Tax Expense	10		61
Net Income Attributable to DTE Energy Company	$	31	$	96

Operating Revenues — Non-utility operationsincreased$446 million in the three months endedMarch 31, 2018. The increase was primarily due to higher volumes and higher gas prices in the gas structured strategy.

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Non-utility Margindecreased$117 million in the three months endedMarch 31, 2018. The decrease was due to the unrealized and realized margins presented in the following table:

	(In millions)
Unrealized Margins(a)
Unfavorable results, primarily in gas structured and gas storage strategies(b)	$	(98	)
Favorable results, primarily in the gas trading strategy	6
	(92		)
Realized Margins(a)
Unfavorable results, primarily in power full requirements, gas full requirements, and gas and power trading strategies	(58		)
Favorable results, primarily in the gas storage strategy(c)	33
	(25		)
Decrease in Non-utility Margin	$	(117	)

_______________________________________

(a) Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.

(b) Amount includes $103 million of timing related losses related to gas strategies which will reverse in future periods as the underlying contracts settle.

(c) Amount includes $17 million of timing related losses related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.

Outlook — In the near-term, Energy Trading expects market conditions to remain challenging, and the profitability of this segment may be impacted by the volatility in commodity prices and the uncertainty of impacts associated with financial reform, regulatory changes, and changes in operating rules of Regional Transmission Organizations. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments and physical power and natural gas contracts are deemed derivatives, whereas natural gas inventory, pipeline transportation, renewable energy credits, and storage assets are not derivatives. As a result, Energy Trading will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.

See also the "Fair Value" section herein and Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

CORPORATE AND OTHER

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds energy-related investments. The net loss of $21 million in the three months endedMarch 31, 2018, represents a decrease of $37 million from the net income of $16 million in the comparable 2017 period. The decrease was primarily due to effective income tax rate adjustments, higher interest expense, a reduction in the corporate tax rate from the TCJA in December 2017, and lower excess tax benefits on stock-based compensation.

CAPITAL RESOURCES AND LIQUIDITY

Cash Requirements

DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire, and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 2018 will be approximately $2.0 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and energy waste reduction expenditures; expenditures for non-utility businesses; and contributions to equity method investees in 2018 of approximately $3.6 billion. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria.

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	Three Months Ended March 31,
	2018			2017
	(In millions)
Cash, Cash Equivalents, and Restricted Cash
Cash Flow From (Used For)
Operating Activities
Net Income	$	351		$	394
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	281			249
Nuclear fuel amortization	15			12
Allowance for equity funds used during construction	(7		)	(7		)
Deferred income taxes	60			100
Working capital and other	138			39
Net cash from operating activities	838			787
Investing Activities
Plant and equipment expenditures — utility	(466		)	(533		)
Plant and equipment expenditures — non-utility	(61		)	(22		)
Contributions to equity method investees	(64		)	(112		)
Other	5			25
Net cash used for investing activities	(586		)	(642		)
Financing Activities
Issuance of long-term debt, net of issuance costs	—			496
Short-term borrowings, net	14			(440		)
Repurchase of common stock	—			(51		)
Dividends on common stock	(158		)	(148		)
REF contributions from noncontrolling interests	12			11
Other	(23		)	(24		)
Net cash used for financing activities	(155		)	(156		)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	$	97		$	(11	)

Cash from Operating Activities

A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.

Cash from operations increased by $51 million in 2018 due primarily to an increase in Depreciation and amortization, and working capital adjustments, partially offset by a decrease to Net Income, and Deferred income taxes.

The change in working capital items in 2018 was primarily related to increases of cash from Inventories, and Other current and noncurrent assets and liabilities, and a decrease in cash used for Derivative assets and liabilities, partially offset by increases in cash used for Accounts payable, Accrued pension obligation, and Accrued postretirement obligation, and a decrease in cash from Accounts receivable, net.

Cash used for Investing Activities

Cash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant and equipment expenditures. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets.

Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy requirements.

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Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth. DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria. For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings.

Net cash used for investing activities decreased by $56 million in 2018 primarily due to a decrease in Plant and equipment expenditures — utility, and Contributions to equity method investees, primarily to the NEXUS pipeline, partially offset by an increase in Plant and equipment expenditures — non-utility.

Net Cash used for Financing Activities

DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.

DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy continually evaluates its leverage target, which is currently 50% to 54%, to ensure it is consistent with the objective of a strong investment grade debt rating.

Net cash used for financing activities decreased by $1 million in 2018 primarily due to a decrease in cash used for Short-term borrowings, net, and Repurchases of common stock, partially offset by a decrease to Issuances of long-term debt.

Outlook

DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with new and existing state and federal regulations that will result in additional environmental and renewable energy investments which will increase the base from which rates are determined. Non-utility growth is expected from additional investments, primarily in the Gas Storage and Pipelines and Power and Industrial Projects segments.

DTE Energy may be impacted by the timing of collection or refund of various recovery and tracking mechanisms, as a result of timing of MPSC orders. Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects.

DTE Energy has approximately $110 million in long-term debt, including capital leases, maturing in the next twelve months. The repayment of the debt is expected to be paid through internally generated funds or the issuance of long-term debt.

DTE Energy has approximately $1.4 billion of available liquidity at March 31, 2018, consisting of cash and amounts available under unsecured revolving credit agreements.

DTE Energy expects to issue equity up to $300 million in 2018 through the dividend reinvestment plan and pension and other employee benefit plans.

At the discretion of management, and depending upon financial market conditions, DTE Energy may make additional contributions up to $25 million to its pension plans in 2018. DTE Energy does not anticipate making any contributions to the other postretirement benefit plans in 2018.

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Various subsidiaries and equity investees of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade. Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and coal) and the provisions and maturities of the underlying transactions. As of March 31, 2018, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $513 million.

DTE Energy believes it will have sufficient operating flexibility, cash resources, and funding sources to maintain adequate amounts of liquidity and to meet future operating cash and capital expenditure needs. However, virtually all of DTE Energy's businesses are capital intensive, or require access to capital, and the inability to access adequate capital could adversely impact earnings and cash flows.

See Notes 5, 9, 10, and 11 to the Consolidated Financial Statements, "Regulatory Matters," "Short-Term Credit Arrangements and Borrowings," "Commitments and Contingencies," and "Retirement Benefits and Trusteed Assets," respectively.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

FAIR VALUE

Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, oil, and certain coal forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas inventory, pipeline transportation contracts, renewable energy credits, and storage assets. See Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and renewable energy credits which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the related physical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.

The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).

The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 7 to the Consolidated Financial Statements, "Fair Value."

62

The following table provides details on changes in DTE Energy's MTM net asset (or liability) position:

	DTE Energy
	(In millions)
MTM at December 31, 2017	$	8
Reclassified to realized upon settlement	(66		)
Changes in fair value recorded to income	72
Amounts recorded to unrealized income	6
Change in collateral	1
MTM at March 31, 2018	$	15

The table below shows the maturity of DTE Energy's MTM positions. The positions from 2021 and beyond principally represent longer tenor gas structured transactions:

Source of Fair Value	2018			2019		2020			2021 and Beyond			Total Fair Value
	(In millions)
Level 1	$	(10	)	$	2	$	(1	)	$	—		$	(9	)
Level 2	10			8		4			6			28
Level 3	(20		)	12		3			(14		)	(19		)
MTM before collateral adjustments	$	(20	)	$	22	$	6		$	(8	)	—
Collateral adjustments												15
MTM at March 31, 2018												$	15

63

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Price Risk

The Electric and Gas businesses have commodity price risk, primarily related to the purchases of coal, natural gas, uranium, and electricity. However, the Registrants do not bear significant exposure to earnings risk, as such changes are included in the PSCR and GCR regulatory rate-recovery mechanisms. In addition, changes in the price of natural gas can impact the valuation of lost and stolen gas, storage sales, and transportation services revenue at the Gas segment. The Gas segment manages its market price risk related to storage sales revenue primarily through the sale of long-term storage contracts. The Registrants are exposed to short-term cash flow or liquidity risk as a result of the time differential between actual cash settlements and regulatory rate recovery.

DTE Energy's Gas Storage and Pipelines segment has exposure to natural gas price fluctuations which impact the pricing for natural gas storage, gathering, and transportation. DTE Energy manages its exposure through the use of short, medium, and long-term storage, gathering, and transportation contracts.

DTE Energy's Power and Industrial Projects business segment is subject to electricity, natural gas, and coal product price risk. DTE Energy manages its exposure to commodity price risk through the use of long-term contracts.

DTE Energy's Energy Trading business segment has exposure to electricity, natural gas, coal, crude oil, heating oil, and foreign currency exchange price fluctuations. These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, and futures contracts, within pre-determined risk parameters.

Credit Risk

The Registrants regularly review contingent matters relating to customers and their contracts and record provisions for amounts considered at risk of probable loss in the allowance for doubtful accounts. The Registrants believe their accrued amounts are adequate for probable loss.

64

Trading Activities

DTE Energy is exposed to credit risk through trading activities. Credit risk is the potential loss that may result if the trading counterparties fail to meet their contractual obligations. DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties.

The following table displays the credit quality of DTE Energy's trading counterparties as of March 31, 2018:

	Credit Exposure Before Cash Collateral		Cash Collateral			Net Credit Exposure
	(In millions)
Investment Grade(a)
A− and Greater	$	268	$	(2	)	$	266
BBB+ and BBB	270		(5		)	265
BBB−	90		—			90
Total Investment Grade	628		(7		)	621
Non-investment grade(b)	20		—			20
Internally Rated — investment grade(c)	328		(1		)	327
Internally Rated — non-investment grade(d)	63		(11		)	52
Total	$	1,039	$	(19	)	$	1,020

_______________________________________

(a) This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented 13% of the total gross credit exposure.

(b) This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented 2% of the total gross credit exposure.

(c) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 14% of the total gross credit exposure.

(d) This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, and are considered non-investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 3% of the total gross credit exposure.

Other

The Registrants engage in business with customers that are non-investment grade. The Registrants closely monitor the credit ratings of these customers and, when deemed necessary and permitted under the tariffs, request collateral or guarantees from such customers to secure their obligations.

Interest Rate Risk

DTE Energy is subject to interest rate risk in connection with the issuance of debt. In order to manage interest costs, DTE Energy may use treasury locks and interest rate swap agreements. DTE Energy's exposure to interest rate risk arises primarily from changes in U.S. Treasury rates, commercial paper rates, and London Inter-Bank Offered Rates (LIBOR). As of March 31, 2018, DTE Energy had a floating rate debt-to-total debt ratio of 4.9%.

Foreign Currency Exchange Risk

DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts. These contracts are denominated in Canadian dollars and are primarily for the purchase and sale of natural gas and power, as well as for long-term transportation capacity. To limit DTE Energy's exposure to foreign currency exchange fluctuations, DTE Energy has entered into a series of foreign currency exchange forward contracts through June 2022.

65

Summary of Sensitivity Analyses

Sensitivity analyses were performed on the fair values of commodity contracts for DTE Energy and long-term debt obligations for the Registrants. The commodity contracts listed below principally relate to energy marketing and trading activities. The sensitivity analyses involved increasing and decreasing forward prices and rates at March 31, 2018 and 2017 by a hypothetical 10% and calculating the resulting change in the fair values.

The results of the sensitivity analyses:

	Assuming a 10% Increase in Prices/Rates						Assuming a 10% Decrease in Prices/Rates
	As of March 31,						As of March 31,
Activity	2018			2017			2018			2017			Change in the Fair Value of
	(In millions)
Gas contracts	$	18		$	21		$	(19	)	$	(21	)	Commodity contracts
Power contracts	$	5		$	9		$	(8	)	$	(10	)	Commodity contracts
Interest rate risk — DTE Energy	$	(593	)	$	(540	)	$	572		$	526		Long-term debt
Interest rate risk — DTE Electric	$	(250	)	$	(232	)	$	268		$	249		Long-term debt

For further discussion of market risk, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

66

Item 4.Controls and Procedures

DTE Energy

(a) Evaluation of disclosure controls and procedures

Management of DTE Energy carried out an evaluation, under the supervision and with the participation of DTE Energy's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Energy's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2018, which is the end of the period covered by this report. Based on this evaluation, DTE Energy's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Energy in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Energy's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.

(b) Changes in internal control over financial reporting

There have been no changes in DTE Energy's internal control over financial reporting during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, DTE Energy's internal control over financial reporting.

DTE Electric

(a) Evaluation of disclosure controls and procedures

Management of DTE Electric carried out an evaluation, under the supervision and with the participation of DTE Electric's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Electric's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2018, which is the end of the period covered by this report. Based on this evaluation, DTE Electric's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Electric in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Electric's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.

(b) Changes in internal control over financial reporting

There have been no changes in DTE Electric's internal control over financial reporting during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, DTE Electric's internal control over financial reporting.

67

Part II — Other Information

Item 1. Legal Proceedings

An FOV was issued by the EPA to DTE Electric in 2017 alleging violations related to exceedances of the mercury emission limits for the Monroe Power Plant. DTE Electric is currently working with the EPA to address the alleged violations. At this time, DTE Electric cannot predict the impact of the final settlement.

For information on legal proceedings and matters related to the Registrants, see Notes 5 and 10 to the Consolidated Financial Statements, "Regulatory Matters" and "Commitments and Contingencies," respectively.

Item 1A. Risk Factors

There are various risks associated with the operations of the Registrants' businesses. To provide a framework to understand the operating environment of the Registrants, a brief explanation of the more significant risks associated with the Registrants' businesses is provided in Part 1, Item 1A. Risk Factors in DTE Energy's and DTE Electric's combined 2017 Annual Report on Form 10-K. Although the Registrants have tried to identify and discuss key risk factors, others could emerge in the future.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of DTE Energy Equity Securities by the Issuer and Affiliated Purchasers

On March 7, 2018, DTE Energy contributed $175 million of its common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust. The contribution consisted of 1,751,401 shares valued at $99.92 per share, the closing market price of DTE Energy common stock on that date. The shares were contributed to the trust in a private placement transaction made in reliance upon the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended. The common stock contribution was made on behalf of DTE Electric, who paid DTE Energy cash consideration of $175 million in March 2018.

The following table provides information about DTE Energy purchases of equity securities that are registered by DTE Energy pursuant to Section 12 of the Exchange Act of 1934 for the quarter ended March 31, 2018:

	Number of Shares Purchased(a)	Average Price Paid per Share(a)		Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Average Price Paid per Share	Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs
01/01/2018 — 01/31/2018	3,105	$	95.63	—	—	—
02/01/2018 — 02/28/2018	48,877	$	101.08	—	—	—
03/01/2018 — 03/31/2018	1,014	$	99.08	—	—	—
Total	52,996			—

_______________________________________

(a) Represents shares of common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the price in effect at the grant date.

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Item 6. Exhibits

Exhibit Number	Description	DTE Energy	DTE Electric
	(i) Exhibits filed herewith:
12.83	Computation of Ratio of Earnings to Fixed Charges	X
12.84	Computation of Ratio of Earnings to Fixed Charges		X
31.145	Chief Executive Officer Section 302 Form 10-Q Certification of Periodic Report	X
31.146	Chief Financial Officer Section 302 Form 10-Q Certification of Periodic Report	X
31.147	Chief Executive Officer Section 302 Form 10-Q Certification of Periodic Report		X
31.148	Chief Financial Officer Section 302 Form 10-Q Certification of Periodic Report		X
101.INS	XBRL Instance Document	X	X
101.SCH	XBRL Taxonomy Extension Schema	X	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	X	X
101.DEF	XBRL Taxonomy Extension Definition Database	X	X
101.LAB	XBRL Taxonomy Extension Label Linkbase	X	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	X	X
	(ii) Exhibits furnished herewith:
32.145	Chief Executive Officer Section 906 Form 10-Q Certification of Periodic Report	X
32.146	Chief Financial Officer Section 906 Form 10-Q Certification of Periodic Report	X
32.147	Chief Executive Officer Section 906 Form 10-Q Certification of Periodic Report		X
32.148	Chief Financial Officer Section 906 Form 10-Q Certification of Periodic Report		X

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. The signature for each undersigned Registrant shall be deemed to relate only to matters having reference to such Registrant and any subsidiaries thereof.

Date:	April 25, 2018
			DTE ENERGY COMPANY
		By:	/S/ JEFFREY A. JEWELL
			Jeffrey A. Jewell Vice President, Controller, and Chief Accounting Officer
			(Duly Authorized Officer)
			DTE ELECTRIC COMPANY
		By:	/S/ JEFFREY A. JEWELL
			Jeffrey A. Jewell Vice President, Controller, and Chief Accounting Officer
			(Duly Authorized Officer)

70

EX-12.83

Exhibit 12.83

DTE Energy Company

Computation of Ratio of Earnings to Fixed Charges

	Three Months Ended		Year Ended December 31,
	March 31, 2018		2017			2016		2015			2014			2013
	(In millions)
Earnings:
Pretax earnings	$	419	$	1,287		$	1,105	$	950		$	1,275		$	922
Adjustments to earnings(a)	—		(19		)	23		(3		)	(15		)	(26		)
Fixed charges	142		561			493		473			453			461
Net earnings	$	561	$	1,829		$	1,621	$	1,420		$	1,713		$	1,357
Fixed Charges:
Interest expense(b)	$	134	$	531		$	468	$	446		$	424		$	432
Adjustments to fixed charges(c)	8		30			25		27			29			29
Fixed charges	$	142	$	561		$	493	$	473		$	453		$	461
Ratio of earnings to fixed charges	3.95		3.26			3.29		3.00			3.78			2.94

_______________________________________

(a) Adjustments include the removal of the impact of earnings from non-consolidated entities and the inclusion of capitalized interest costs.

(b) Includes interest on uncertain positions.

(c) Adjustments include the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined and capitalized interest costs.

EX-12.84

Exhibit 12.84

DTE Electric Company

Computation of Ratio of Earnings to Fixed Charges

	Three Months Ended			Year Ended December 31,
	March 31, 2018			2017			2016			2015			2014			2013
	(In millions)
Earnings:
Pretax earnings	$	187		$	928		$	975		$	836		$	830		$	741
Adjustments to earnings(a)	(2		)	(9		)	(8		)	(11		)	(11		)	(7		)
Fixed charges	71			288			278			277			267			281
Net earnings	$	256		$	1,207		$	1,245		$	1,102		$	1,086		$	1,015
Fixed Charges:
Interest expense(b)	$	67		$	271		$	261		$	255		$	247		$	264
Adjustments to fixed charges(c)	4			17			17			22			20			17
Fixed charges	$	71		$	288		$	278		$	277		$	267		$	281
Ratio of earnings to fixed charges	3.61			4.19			4.48			3.98			4.07			3.61

_______________________________________

(a) Adjustments include the removal of the impact of earnings from non-consolidated entities and the inclusion of capitalized interest costs.

(b) Includes interest on uncertain positions.

(c) Adjustments include the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined and capitalized interest costs.

EX-31.145

Exhibit 31.145

FORM 10-Q CERTIFICATION

I, Gerard M. Anderson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ GERARD M. ANDERSON	Date:	April 25, 2018
Gerard M. Anderson Chairman of the Board and Chief Executive Officer of DTE Energy Company

EX-31.146

Exhibit 31.146

FORM 10-Q CERTIFICATION

I, Peter B. Oleksiak, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ PETER B. OLEKSIAK	Date:	April 25, 2018
Peter B. Oleksiak Senior Vice President and Chief Financial Officer of DTE Energy Company

EX-31.147

Exhibit 31.147

FORM 10-Q CERTIFICATION

I, Gerard M. Anderson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Electric Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ GERARD M. ANDERSON	Date:	April 25, 2018
Gerard M. Anderson  Chairman of the Board and Chief Executive Officer of DTE Electric Company

EX-31.148

Exhibit 31.148

FORM 10-Q CERTIFICATION

I, Peter B. Oleksiak, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Electric Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ PETER B. OLEKSIAK	Date:	April 25, 2018
Peter B. Oleksiak Senior Vice President and Chief Financial Officer of DTE Electric Company

EX-32.145

Exhibit 32.145

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Energy Company (the “Company”) for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerard M. Anderson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2018	/S/ GERARD M. ANDERSON
		Gerard M. Anderson Chairman of the Board and Chief Executive Officer of DTE Energy Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.146

Exhibit 32.146

CERTIFICATION PURSUANT TO

18 U. S. C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Energy Company (the “Company”) for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Peter B. Oleksiak, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2018	/S/ PETER B. OLEKSIAK
		Peter B. Oleksiak Senior Vice President and Chief Financial Officer of DTE Energy Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.147

Exhibit 32.147

CERTIFICATION PURSUANT TO

18 U. S. C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Electric Company (the “Company”) for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerard M. Anderson, certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2018	/S/ GERARD M. ANDERSON
		Gerard M. Anderson Chairman of the Board and Chief Executive Officer of DTE Electric Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.148

Exhibit 32.148

CERTIFICATION PURSUANT TO

18 U. S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Electric Company (the “Company”) for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Peter B. Oleksiak, certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2018	/S/ PETER B. OLEKSIAK
		Peter B. Oleksiak Senior Vice President and Chief Financial Officer of DTE Electric Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2018 shares
Entity Registrant Name	DTE ENERGY CO
Entity Central Index Key	0000936340
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	181,483,163
DTE Electric
Entity Registrant Name	DTE ELECTRIC CO
Entity Central Index Key	0000028385
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	138,632,324

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Revenues
Utility operations	$ 1,740	$ 1,718
Non-utility operations	2,013	1,518
Operating Revenues	3,753	3,236
Operating Expenses
Fuel, purchased power, and gas — utility	553	529
Fuel, purchased power, and gas — non-utility	1,773	1,180
Operation and maintenance	534	584
Depreciation and amortization	281	249
Taxes other than income	111	109
Asset (gains) losses and impairments, net	(3)	0
Operating Expenses	3,249	2,651
Operating Income	504	585
Other (Income) and Deductions
Interest expense	135	125
Interest income	(3)	(3)
Non-operating retirement benefits, net	9	16
Other income	(81)	(64)
Other expenses	25	7
Total Other (Income) and Deductions	85	81
Income Before Income Taxes	419	504
Income Tax Expense	68	110
Net Income	351	394
Less: Net Loss Attributable to Noncontrolling Interests	(10)	(6)
Net Income Attributable to DTE Energy Company/DTE Electric Company	$ 361	$ 400
Basic Earnings per Common Share
Net Income Attributable to DTE Energy Company (in dollars per share)	$ 2.01	$ 2.23
Diluted Earnings per Common Share
Net Income Attributable to DTE Energy Company (in dollars per share)	$ 2.00	$ 2.23
Weighted Average Common Shares Outstanding
Basic (in shares)	180	179
Diluted (in shares)	180	179
Dividends Declared per Common Share (in dollars per share)	$ 0.8825	$ 0.825
DTE Electric
Operating Revenues
Utility operations	$ 1,205	$ 1,175
Operating Expenses
Fuel and purchased power — utility	339	314
Operation and maintenance	320	383
Depreciation and amortization	212	181
Taxes other than income	81	80
Operating Expenses	952	958
Operating Income	253	217
Other (Income) and Deductions
Interest expense	68	66
Other income	(27)	(19)
Other expenses	25	7
Total Other (Income) and Deductions	66	54
Income Before Income Taxes	187	163
Income Tax Expense	47	57
Net Income Attributable to DTE Energy Company/DTE Electric Company	$ 140	$ 106

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Income	$ 351	$ 394
Net Income	361	400
Other comprehensive income (loss), net of tax:
Implementation of ASU 2016-01	(5)	0
Benefit obligations, net of taxes of $1, and $2, respectively	2	4
Other comprehensive income (loss)	(3)	4
Comprehensive income	348	398
Less: Comprehensive loss attributable to noncontrolling interests	(10)	(6)
Comprehensive Income Attributable to DTE Energy Company/DTE Electric Company	358	404
DTE Electric
Net Income	140	106
Other comprehensive income (loss), net of tax:
Implementation of ASU 2016-01	3	0
Other comprehensive income (loss)	3	0
Comprehensive Income Attributable to DTE Energy Company/DTE Electric Company	$ 143	$ 106

XML

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Tax effect on benefit obligation	$ 1	$ 2

XML

Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 164	$ 66
Restricted cash	22	23
Accounts receivable (less allowance for doubtful accounts)
Customer	1,709	1,758
Other	116	98
Inventories
Fuel and gas	237	399
Materials and supplies	360	380
Derivative assets	84	103
Regulatory assets	44	55
Other	221	199
Total Current Assets	2,957	3,081
Investments
Nuclear decommissioning trust funds	1,481	1,492
Investments in equity method investees	1,141	1,073
Other	230	232
Total Investments	2,852	2,797
Property
Property, plant, and equipment	31,656	31,424
Accumulated depreciation and amortization	(10,786)	(10,703)
Property, plant, and equipment, net	20,870	20,721
Other Assets
Goodwill	2,293	2,293
Regulatory assets	3,715	3,723
Intangible assets	867	867
Notes receivable	70	73
Derivative assets	58	51
Other	159	161
Total Other Assets	7,162	7,168
Total Assets	33,841	33,767
Accounts payable
Accounts payable	920	1,171
Accrued interest	132	111
Dividends payable	160	158
Short-term borrowings	635	621
Current portion long-term debt, including capital leases	106	109
Derivative liabilities	69	99
Gas inventory equalization	85	0
Regulatory liabilities	23	18
Short-term borrowings
Other	411	525
Total Current Liabilities	2,541	2,812
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	11,040	11,039
Junior subordinated debentures	1,145	1,145
Capital lease obligations	0	1
Total Long-Term Debt (net of current portion)	12,185	12,185
Other Liabilities
Deferred income taxes	1,936	1,888
Regulatory liabilities	3,001	2,875
Asset retirement obligations	2,361	2,320
Unamortized investment tax credit	122	122
Derivative liabilities	58	47
Accrued pension liability	737	924
Accrued postretirement liability	25	61
Nuclear decommissioning	219	220
Other	293	323
Total Other Liabilities	8,752	8,780
Commitments and Contingencies (Notes 5 and 10)
Equity
Common stock	4,163	3,989
Retained earnings	5,848	5,643
Accumulated other comprehensive income (loss)	(123)	(120)
Total DTE Energy/DTE Electric Company Equity	9,888	9,512
Noncontrolling interests	475	478
Total Equity	10,363	9,990
Total Liabilities and Equity	33,841	33,767
DTE Electric
Current Assets
Cash and cash equivalents	16	15
Accounts receivable (less allowance for doubtful accounts)
Customer	754	791
Affiliates	14	20
Other	39	37
Inventories
Fuel and gas	138	190
Materials and supplies	277	275
Regulatory assets	40	50
Prepaid property tax	91	48
Other	18	20
Total Current Assets	1,387	1,446
Investments
Nuclear decommissioning trust funds	1,481	1,492
Other	36	36
Total Investments	1,517	1,528
Property
Property, plant, and equipment	23,098	22,972
Accumulated depreciation and amortization	(8,023)	(7,984)
Property, plant, and equipment, net	15,075	14,988
Other Assets
Regulatory assets	3,009	3,005
Intangible assets	31	25
Prepaid postretirement costs — affiliates	113	113
Other	123	123
Total Other Assets	3,276	3,266
Total Assets	21,255	21,228
Accounts payable
Affiliates	61	52
Other	295	416
Accrued interest	70	72
Current portion long-term debt, including capital leases	2	5
Regulatory liabilities	21	17
Short-term borrowings
Affiliates	142	116
Other	380	238
Other	133	145
Total Current Liabilities	1,104	1,061
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other	6,018	6,017
Capital lease obligations	0	1
Total Long-Term Debt (net of current portion)	6,018	6,018
Other Liabilities
Deferred income taxes	2,127	2,088
Regulatory liabilities	2,218	2,137
Asset retirement obligations	2,165	2,125
Unamortized investment tax credit	120	120
Nuclear decommissioning	219	220
Accrued pension liability — affiliates	633	811
Accrued postretirement liability — affiliates	287	311
Other	74	72
Total Other Liabilities	7,843	7,884
Commitments and Contingencies (Notes 5 and 10)
Equity
Common stock	4,306	4,306
Retained earnings	1,984	1,956
Accumulated other comprehensive income (loss)	0	3
Total DTE Energy/DTE Electric Company Equity	6,290	6,265
Total Liabilities and Equity	$ 21,255	$ 21,228

XML

Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 54	$ 49
Shareholder’s Equity
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	181,483,163	179,386,967
Common stock, shares outstanding (in shares)	181,483,163	179,386,967
DTE Electric
Allowance for doubtful accounts	$ 31	$ 31
Shareholder’s Equity
Par value (in dollars per share)	$ 10	$ 10
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	138,632,324	138,632,324
Common stock, shares outstanding (in shares)	138,632,324	138,632,324

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities
Net Income	$ 351	$ 394
Net Income	361	400
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	281	249
Nuclear fuel amortization	15	12
Allowance for equity funds used during construction	(7)	(7)
Deferred income taxes	60	100
Equity earnings of equity method investees	(21)	(26)
Dividends from equity method investees	15	18
Changes in assets and liabilities:
Accounts receivable, net	33	84
Inventories	182	135
Accounts payable	(136)	(33)
Gas inventory equalization	85	86
Accrued pension liability	(187)	(130)
Accrued postretirement liability	(36)	27
Derivative assets and liabilities	(7)	(100)
Regulatory assets and liabilities	148	128
Other current and noncurrent assets and liabilities	62	(150)
Net cash from operating activities	838	787
Investing Activities
Plant and equipment expenditures — utility	(466)	(533)
Plant and equipment expenditures — non-utility	(61)	(22)
Proceeds from sale of nuclear decommissioning trust fund assets	336	394
Investment in nuclear decommissioning trust funds	(337)	(378)
Distributions from equity method investees	4	6
Contributions to equity method investees	(64)	(112)
Other	2	3
Net cash used for investing activities	(586)	(642)
Financing Activities
Issuance of long-term debt, net of issuance costs	0	496
Short-term borrowings, net	14	(440)
Repurchase of common stock	0	(51)
Dividends on common stock	(158)	(148)
REF contributions from noncontrolling interests	12	11
Other	(23)	(24)
Net cash used for financing activities	(155)	(156)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	97	(11)
Cash and Cash Equivalents at Beginning of Period	66
Cash and Cash Equivalents at End of Period	164	82
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	89	113
Cash, Cash Equivalents, and Restricted Cash at End of Period	186	102
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	179	196
DTE Electric
Operating Activities
Net Income	140	106
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization	212	181
Nuclear fuel amortization	15	12
Allowance for equity funds used during construction	(5)	(6)
Deferred income taxes	48	57
Changes in assets and liabilities:
Accounts receivable, net	39	58
Inventories	50	44
Accounts payable	(30)	26
Accrued pension liability — affiliates	(178)	(123)
Accrued postretirement liability — affiliates	(24)	21
Regulatory assets and liabilities	97	122
Other current and noncurrent assets and liabilities	(41)	(87)
Net cash from operating activities	323	411
Investing Activities
Plant and equipment expenditures	(370)	(408)
Proceeds from sale of nuclear decommissioning trust fund assets	336	394
Investment in nuclear decommissioning trust funds	(337)	(378)
Other	0	5
Net cash used for investing activities	(371)	(387)
Financing Activities
Short-term borrowings, net — affiliate	26	88
Short-term borrowings, net — other	142	(3)
Dividends on common stock	(115)	(108)
Other	(4)	(3)
Net cash used for financing activities	49	(26)
Net Increase (Decrease) in Cash and Cash Equivalents	1	(2)
Cash and Cash Equivalents at Beginning of Period	15	13
Cash and Cash Equivalents at End of Period	16	11
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$ 109	$ 134

XML

Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	DTE Electric	DTE Electric Common Stock	DTE Electric Additional Paid-in Capital	DTE Electric Retained Earnings	DTE Electric Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Implementation of ASU 2016-01	$ 0		$ 5	$ (5)		$ 0			$ 3	$ (3)
Beginning Balance (in shares) at Dec. 31, 2017	179,386,967	179,387,000				138,632,324	138,632,000
Beginning Balance at Dec. 31, 2017	$ 9,990	$ 3,989	5,643	(120)	$ 478
Beginning Balance at Dec. 31, 2017	9,512					$ 6,265	$ 1,386	$ 2,920	1,956	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	351		361		(10)
Net Income	361					140			140
Dividends declared on common stock	(160)		(160)			$ (115)			(115)
Contribution of common stock to pension plan (in shares)		1,751,000
Contribution of common stock to pension plan	175	$ 175
Benefit obligations, net of tax	2			2
Stock-based compensation, net contributions from noncontrolling interests, and other (in shares)		345,000
Stock-based compensation, net contributions from noncontrolling interests, and other	$ 5	$ (1)	(1)		7
Ending Balance (in shares) at Mar. 31, 2018	181,483,163	181,483,000				138,632,324	138,632,000
Ending Balance at Mar. 31, 2018	$ 10,363	$ 4,163	$ 5,848	$ (123)	$ 475
Ending Balance at Mar. 31, 2018	$ 9,888					$ 6,290	$ 1,386	$ 2,920	$ 1,984	$ 0

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

ORGANIZATION AND BASIS OF PRESENTATION

Corporate Structure

DTE Energy owns the following businesses:

• DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.2 million customers in southeastern Michigan;

• DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million customers throughout Michigan and the sale of storage and transportation capacity; and

• Other businesses involved in 1) services related to the gathering, transportation, and storage of natural gas; 2) power and industrial projects; and 3) energy marketing and trading operations.

DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businesses under DTE Energy, are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, the EPA, the MDEQ, and for DTE Energy, the CFTC.

Basis of Presentation

The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K.

The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.

The Consolidated Financial Statements are unaudited but, in the Registrants' opinions include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2018.

The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

Certain prior year balances for DTE Energy were reclassified to match the current year's Consolidated Financial Statements presentation. Due to the implementation of ASU 2017-07, amounts previously included in Operation and maintenance were reclassified to Non-operating retirement benefits, net on the Consolidated Statements of Operations. See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

Principles of Consolidation

The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.

The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.

Legal entities within DTE Energy's Power and Industrial Projects segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are accounted for under the equity method.

DTE Energy owns a 55% interest in SGG, which owns and operates midstream natural gas assets. SGG has contracts through which certain construction risk is designed to pass-through to the customers, with DTE Energy retaining operational and customer default risk. SGG is a VIE with DTE Energy as the primary beneficiary.

The Registrants have variable interests in NEXUS, which include DTE Energy's 50% ownership interest and DTE Electric's transportation services contract. NEXUS is a joint venture which is in the process of constructing a 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio, Michigan, and Ontario market centers. NEXUS is a VIE as it has insufficient equity at risk to finance its activities. The Registrants are not the primary beneficiaries, as the power to direct significant activities is shared between the owners of the equity interests. DTE Energy accounts for its ownership interest in NEXUS under the equity method.

The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, as well as an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.

DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no significant potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no significant potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position and in Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," related to the REF guarantees and indemnities. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment, notes receivable, future funding commitments, and amounts which DTE Energy has guaranteed. See Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of the NEXUS guarantee arrangements.

The following table summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of March 31, 2018 and December 31, 2017. All assets and liabilities of a consolidated VIE are presented where it has been determined that aconsolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table below.

	March 31, 2018						December 31, 2017
	SGG(a)		Other		Total		SGG(a)		Other		Total
	(In millions)
ASSETS
Cash and cash equivalents	$	29	$	12	$	41	$	23	$	14	$	37
Restricted cash	—		8		8		—		8		8
Accounts receivable	11		37		48		11		42		53
Inventories	3		66		69		3		114		117
Property, plant, and equipment, net	386		73		459		400		75		475
Goodwill	25		—		25		25		—		25
Intangible assets	568		—		568		572		—		572
Other current and long-term assets	2		—		2		4		—		4
	$	1,024	$	196	$	1,220	$	1,038	$	253	$	1,291
LIABILITIES
Accounts payable and accrued current liabilities	$	2	$	35	$	37	$	26	$	47	$	73
Current portion long-term debt, including capital leases	—		4		4		—		4		4
Mortgage bonds, notes, and other	—		—		—		—		1		1
Other current and long-term liabilities	2		15		17		1		16		17
	$	4	$	54	$	58	$	27	$	68	$	95

_____________________________________

(a)Amounts shown are 100% of SGG's assets and liabilities, of which DTE Energy owns 55%.

Amounts for DTE Energy's non-consolidated VIEs are as follows:

	March 31, 2018		December 31, 2017
	(In millions)
Investments in equity method investees	$	866	$	811
Notes receivable	$	17	$	17
Future funding commitments	$	551	$	598

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

SIGNIFICANT ACCOUNTING POLICIES

Other Income

The following is a summary of DTE Energy's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Income from REF entities	$	23	$	18
Equity earnings of equity method investees	21		26
Contract services	20		4
Allowance for equity funds used during construction	7		7
Gains from equity securities	—		8
Other	10		1
	$	81	$	64

The following is a summary of DTE Electric's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Contract services	$	20	$	4
Allowance for equity funds used during construction	5		6
Gains from equity securities allocated from DTE Energy	—		8
Other	2		1
	$	27	$	19

Changes in Accumulated Other Comprehensive Income (Loss)

For the three months endedMarch 31, 2018 and 2017, reclassifications out of Accumulated other comprehensive income (loss) for the Registrants were not material. Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity. For further discussion regarding changes in Accumulated other comprehensive income (loss), see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

Income Taxes

The 2018 estimated annual effective tax rates for DTE Energy and DTE Electric are 13% and 22%, respectively. These tax rates are affected by estimated annual permanent items, including AFUDC equity, production tax credits, and other flow-through items, as well as discrete items that may occur in any given period, but are not consistent from period to period.

The interim effective tax rate of the Registrants are as follows:

	Effective Tax Rate
	Three Months Ended March 31,
	2018		2017
DTE Energy	16	%	22	%
DTE Electric	25	%	35	%

The 6%decrease in DTE Energy's effective tax rate for the three months ended March 31, 2018 was primarily due to the reduction of the corporate tax rate from 35% to 21%, which became effective in 2018. The decrease in the effective tax rate was partially offset by true-up adjustments to the remeasurement of deferred taxes in 2018 of $21 million, which increased the effective tax rate by 5%, and the reduction of excess tax benefits on stock-based compensation of $10 million, which increased the effective tax rate by 2%. For further discussion regarding the true-up adjustments, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

The 10%decrease in DTE Electric's effective tax rate for the three months ended March 31, 2018 was primarily due to the reduction of the corporate tax rate from 35% to 21%, which became effective in 2018, partially offset by true-up adjustments to the remeasurement of deferred taxes in 2018 of $8 million, which increased the effective tax rate by 4%.

DTE Energy's total amount of unrecognized tax benefits as of March 31, 2018 was $8 million, of which $8 million, if recognized, would favorably impact its effective tax rate. DTE Electric's total amount of unrecognized tax benefits as of March 31, 2018 was $10 million, of which $10 million, if recognized, would favorably impact its effective tax rate. The Registrants do not anticipate any material changes to the unrecognized tax benefits in the next twelve months.

DTE Electric had income tax receivables with DTE Energy of $13 million and $12 million at March 31, 2018 and December 31, 2017, respectively.

Unrecognized Compensation Costs

As of March 31, 2018, DTE Energy had $111 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.75 years.

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $9 million and $8 million for the three months ended March 31, 2018 and 2017, respectively.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash consists of funds held to satisfy requirements of certain debt and DTE Energy partnership operating agreements. Restricted cash designated for interest and principal payments within one year is classified as a Current Asset.

The following is a table that provides a reconciliation of DTE Energy's Cash and cash equivalents as well as Restricted cash reported within the Consolidated Statements of Financial Position that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Cash and cash equivalents	$	164	$	82
Restricted cash	22		20
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	186	$	102

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also required expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is to be applied retrospectively. The Registrants adopted the standard effective January 1, 2018 using the modified retrospective approach. Under the modified retrospective approach, the information for periods prior to the adoption date has not been restated and continues to be reported under the accounting standards in effect for those periods. As permitted under the standard, the Registrants have elected to apply the guidance only to those contracts that were not completed at January 1, 2018, and have elected not to restate the impacts of any contract modifications made prior to the earliest period presented.

The adoption of the ASU did not have a significant impact on the Registrants' financial position or results of operations, but required additional disclosures for revenue. See Note 4 to the Consolidated Financial Statements, "Revenue."

In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update required that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The Registrants adopted the standard effective January 1, 2018. The standard has been applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. As permitted by the standard, the Registrants have used benefit cost amounts disclosed for prior periods as the basis for retrospective application in the income statement. As a result of regulatory mechanisms, the impact to the Consolidated Financial Statements was not material for the first quarter of 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as amended. The new guidance is intended to improve the recognition and measurement of financial instruments. The guidance primarily impacts accounting for equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) and financial liabilities under the fair value option. The guidance requires equity investments to be generally measured at fair value, with subsequent changes in fair value recognized in net income. The guidance requires entities to make a cumulative-effect adjustment to the Statements of Financial Position as of the beginning of the first reporting period in which the guidance is effective. The Registrants adopted the standard effective January 1, 2018. Upon adoption, DTE Energy and DTE Electric recorded a cumulative-effect adjustment to reclassify $5 million and $3 million of unrealized gains from Accumulated other comprehensive income (loss) to Retained earnings, respectively.

In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118. The Amendments in this update add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118). SAB 118 directs taxpayers to consider the implications of the TCJA as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 10 to the Consolidated Financial Statements, "Income Taxes," within the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K and in accordance with SAB 118, the Registrants recorded amounts that were considered provisional. In first quarter of 2018, DTE Energy and DTE Electric recorded true-up adjustments to the remeasurement of deferred taxes of $21 million and $8 million, respectively. The impact of the true-up adjustments was an increase in Income Tax Expense, of which $16 million was attributable to the regulated utilities and offset to Regulatory liabilities.The true-up adjustments were a result of further analysis for items subject to further consideration at December 31, 2017 under SAB 118 and primarily related to timing differences not recoverable from DTE Electric and DTE Gas customers. The Registrants will continue to analyze the amounts throughout 2018, which may result in additional changes.

Recently Issued Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), as amended. This guidance requires a lessee to account for leases as finance or operating leases, and disclose key information about leasing arrangements. Both types of leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition, depending on the lease classification. The Registrants will adopt the standard on January 1, 2019. As originally issued, the standard requires a modified retrospective approach for leases existing or entered into after the beginning of the earliest comparative period in the Consolidated Financial Statements. The Registrants are evaluating the transition practical expedients available under the guidance, such as retaining the current lease assessment and classifications for existing leases at the effective date, and not applying the new guidance to land easements that exist or expire before the effective date.

A third-party software tool is being implemented that will assist with the initial adoption and ongoing compliance of the standard. The Registrants are evaluating contracts for leases and abstracting the required data, as well as evaluating new business processes, internal controls, and accounting policies. In addition, the Registrants are monitoring utility industry implementation issues for purchase power agreements, pipeline laterals, and other industry specific arrangements. While the Registrants expect an increase in assets and liabilities, as well as additional disclosures, they are still assessing the impact of this ASU on their Consolidated Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in current generally accepted accounting principles with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entities will apply the new guidance as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effective for the Registrants beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The amendments in this update also require entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

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Revenue

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Significant Accounting Policy

Upon the adoption of Topic 606, revenue is measured based upon the consideration specified in a contract with a customer at the time when performance obligations are satisfied. Under Topic 606, a performance obligation is a promise in a contract to transfer a distinct good or service or a series of distinct goods or services to the customer. The Registrants recognize revenue when performance obligations are satisfied by transferring control over a product or service to a customer. The Registrants have determined control to be transferred when the product is delivered or the service is provided to the customer. For the three months ended March 31, 2018, recognition of revenue for the Registrants subsequent to the adoption of Topic 606 is substantially similar in amount and approach to that prior to adoption.

Rates for DTE Electric and DTE Gas include provisions to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are included in Regulatory assets or liabilities on the Registrants' Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors.

For discussion of derivative contracts, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment for DTE Energy:

	Three Months Ended March 31, 2018
	(In millions)
Electric(a)
Residential	$	586
Commercial	429
Industrial	176
Other(b)	14
Total Electric operating revenues(c)	$	1,205
Gas
Gas sales	$	457
End User Transportation	85
Intermediate Transportation	18
Other(d)	(10		)
Total Gas operating revenues(e)	$	550
Other segment operating revenues(f)
Gas Storage and Pipelines	$	119
Power and Industrial Projects	$	567
Energy Trading	$	1,498

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(a) Revenues under the Electric segment generally represent those of DTE Electric.

(b) Includes a reduction of $39 million in revenues related to TCJA rate reduction reserve.

(c) Includes $5 million of other revenues which are outside the scope of Topic 606.

(d) Includes a reduction of $32 million in revenues related to TCJA rate reduction reserve.

(e) Includes a reduction of $3 million under Alternative Revenue Programs and $2 million of other revenues which are both outside the scope of Topic 606.

(f) Includes revenues outside the scope of Topic 606 primarily related to $445 million of contracts accounted for as leases at the Power and Industrial Projects segment and $1.2 billion related to derivatives at the Energy Trading segment.

Nature of Goods and Services

The following is a description of principal activities, separated by reportable segments, from which DTE Energy generates revenue. For more detailed information about reportable segments, see Note 12 to the Consolidated Financial Statements, “Segment and Related Information.”

The Registrants have contracts with customers which may contain more than one performance obligation. When more than one performance obligation exists in a contract, the consideration under the contract is allocated to the performance obligations based on the relative standalone selling price. DTE Energy generally determines stand alone selling prices based on the prices charged to customers or the use of the adjusted market assessment approach. The adjusted market assessment approach involves the evaluation of the market in which DTE Energy sells goods or services and estimating the price that a customer in that market would be willing to pay.

Under Topic 606, when a customer simultaneously receives and consumes the product or service provided, revenue is considered to be recognized over time. Alternatively, if it is determined that the criteria for recognition of revenue over time is not met, the revenue is considered to be recognized at a point in time.

Electric

Electric consists principally of DTE Electric. Electric revenues are primarily comprised of the supply and delivery of electricity, and related capacity. Revenues are primarily associated with cancelable contracts, with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. The Registrants have determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined utilizing approved tariff rates and estimated meter volumes. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class are known. Revenues are typically subject to tariff rates based upon customer class and type of service, and are billed and received monthly. Tariff rates are determined by the MPSC on a per kWh or monthly basis.

Gas

Gas revenues are primarily comprised of the supply and delivery of natural gas, and other services including storage, transportation, and appliance maintenance. Revenues are primarily associated with cancelable contracts with the exception of certain long-term contracts with commercial and industrial customers. Revenues, including estimated unbilled amounts, are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Unbilled revenues are typically determined using both estimated meter volumes and estimated usage based upon the number of unbilled days and historical temperatures. Estimated unbilled amounts recognized in revenue are subject to adjustment in the following reporting period as actual volumes by customer class and service type are known. Revenues are typically subject to tariff rates or other rates subject to regulatory oversight and are billed and received monthly. Tariff rates are determined by the MPSC on a per unit or monthly basis.

Gas Storage and Pipelines

Gas Storage and Pipelines revenues generally consist of services related to the gathering, transportation, and storage of natural gas. Contracts are primarily long-term in nature. Revenues, including estimated unbilled amounts, are generally recognized over time based upon services provided or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Revenues are typically billed and received monthly. Pricing for such revenues may consist of demand rates, commodity rates, transportation rates, and other associated fees. Consideration may consist of both fixed and variable components. Generally, uncertainties in the variable consideration components are resolved and revenues are known at the time of recognition.

Power and Industrial Projects

Power and Industrial Projects revenues consist primarily of contracts accounted for as leases which are outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

Revenues at Power and Industrial Projects, within the scope of Topic 606, generally consist of sales of blast furnace coke and coke oven gas, electricity, equipment maintenance services, and other energy related products and services. Revenues, including estimated unbilled amounts, for the sale of blast furnace coke are generally recognized at a point in time when the product is delivered, which represents the transfer of control to the customer. Other revenues are generally recognized over time based upon services provided or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Market based pricing structures exist in such contracts including adjustments for consumer price or other indices. Consideration may consist of both fixed and variable components. Generally, uncertainties in the variable consideration components are resolved and revenues are known at the time of recognition. Billing terms vary and are generally monthly with payment terms typically within 30 days following billing.

Energy Trading

Energy Trading revenues consist primarily of derivative contracts outside of the scope of Topic 606. For performance obligations within the scope of Topic 606, the timing of revenue recognition is dependent upon when control over the associated product or service is transferred.

Revenues, including estimated unbilled amounts, within the scope of Topic 606 arising from the sale of natural gas, electricity, power capacity, and other energy related products are generally recognized over time based upon volumes delivered or through the passage of time ratably based upon providing a stand-ready service. DTE Energy has determined that the above methods represent a faithful depiction of the transfer of control to the customer. Revenues are known at the time of recognition. Payment for the aforementioned revenues is generally due from customers in the month following delivery.

Revenues associated with RECs are recognized at a point in time when control of the RECs are transferred to the customer which is deemed to be when the subject RECs are entered for transfer to the customer in the applicable regulatory tracking system. Revenues associated with RECs under a wholesale full requirements power contract are deferred until control has been transferred. The deferred revenues represent a contract liability for which payment has been received and the amounts have been estimated using the adjusted market assessment approach. With the exception of RECs, generally all other performance obligations associated with wholesale full requirements power contracts are satisfied over time in conjunction with the delivery of power. At the time power is delivered, DTE Energy may not have control over the RECs as the RECs are not self-generated and may not yet have been procured resulting in deferred revenues.

Deferred Revenue

The following is a summary of deferred revenue activity:

	DTE Energy
	(In millions)
Beginning Balance, January 1, 2018	$	56
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	14
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(16		)
Ending Balance, March 31, 2018	$	54

The deferred revenues at DTE Energy generally represent amounts paid by or receivable from customers for which the associated performance obligation has not yet been satisfied.

Deferred revenues include amounts associated with REC performance obligations under certain wholesale full requirements power contracts. Deferred revenues associated with RECs are recognized as revenue when control of the RECs has transferred.

Other performance obligations associated with deferred revenues include providing products and services related to customer prepayments. Deferred revenues associated with these products and services are recognized when control has transferred to the customer.

The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:

	DTE Energy
	(In millions)
2018	$	23
2019	9
2020	1
2021	5
2022	6
2023 and thereafter	10
	$	54

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under Topic 606, the Registrants did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which revenue is recognized at the amount to which the Registrants have the right to invoice for goods provided and services performed, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.

Such contracts consist of varying types of performance obligations across the segments, including the supply and delivery of energy related products and services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related consideration under the contract is variable at inception of the contract. Contract lengths vary from cancelable to multi-year.

The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:

	DTE Energy		DTE Electric
	(In millions)
2018	$	159	$	6
2019	238		8
2020	168		—
2021	128		—
2022	103		—
2023 and thereafter	351		—
Total	$	1,147	$	14

Other Matters

DTE Energy has recognized charges of $25 million related to expense recognized for estimated uncollectible accounts receivable for the three months ended March 31, 2018. DTE Electric has recognized charges of $14 million related to expense recognized for estimated uncollectible accounts receivable for the three months ended March 31, 2018.

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Regulatory Matters

3 Months Ended

Mar. 31, 2018

Public Utilities, General Disclosures [Abstract]

Regulatory Matters

REGULATORY MATTERS

2017 Electric Rate Case Filing

DTE Electric filed a rate case with the MPSC on April 19, 2017 requesting an increase in base rates of $231 million based on a projected twelve-month period ending October 31, 2018. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructure investments, environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. To mitigate the impact to its customers resulting from ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), DTE Electric implemented regulatory accounting treatment. As such, beginning January 1, 2018, pension and postretirement cost components previously included as capital overhead are being deferred. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." On November 1, 2017, DTE Electric self-implemented a base rate increase of $125 million. On April 18, 2018, the MPSC issued an order approving an annual revenue increase of $65.2 million for service rendered on or after May 1, 2018. The MPSC authorized a return on equity of 10.0%. DTE Electric has recorded a refund liability of $25 million, representing the total estimated refund due to customers, inclusive of interest, at March 31, 2018.

Certificate of Necessity

On July 31, 2017, DTE Electric filed a request for authority to build a 1,100 megawatt natural gas fueled combined cycle generation facility at DTE Electric's Belle River Power Plant. DTE Electric requested the MPSC to issue three CONs for the following: (1) power supplied by the proposed project is needed, (2) the size, fuel type, and other design characteristics of the proposed project represent the most reasonable and prudent means of meeting the power need, and (3) the estimated capital costs of $989 million for the proposed project will be recoverable in rates from DTE Electric's customers. DTE Electric expects an order in this proceeding from the MPSC by April 27, 2018.

2017 Gas Rate Case Filing

DTE Gas filed a rate case with the MPSC on November 22, 2017 requesting an increase in base rates of $85.1 million based on a projected twelve-month period ending September 30, 2019. The requested increase in base rates is primarily due to an increase in net plant. The rate filing also requests an increase in return on equity from 10.1% to 10.5% and includes projected changes in sales, operations, maintenance expenses, and working capital. To mitigate the impact to its customers resulting from ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), DTE Gas suggested regulatory accounting treatment, consistent with the methodology approved by the MPSC in the 2017 DTE Electric Rate Case order. As such, beginning January 1, 2018, pension and postretirement cost components previously included as capital overhead are being deferred. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." A final MPSC order in this case is expected by September 2018.

2017 Tax Reform

On December 27, 2017, the MPSC issued an order to consider changes in the rates of all Michigan rate-regulated utilities to reflect the effects of the federal TCJA. On January 19, 2018, DTE Electric and DTE Gas filed information with the MPSC regarding the potential change in revenue requirements due to the TCJA effective January 1, 2018, and outlined their recommended method to flow the current and deferred tax benefits of those impacts to ratepayers.

On February 22, 2018, the MPSC issued an order in this case requiring utilities, including DTE Electric and DTE Gas, to follow a 3-step approach of credits and calculations. The first step is to establish Credit A, through contested cases. Credit A is a going-forward tax credit to reflect the reduction of the corporate tax rate from 35% to 21%. DTE Gas submitted its Credit A filing on March 28, 2018, reflecting a reduction in revenues of $38.2 million. The proposed new rates are expected to be effective July 1, 2018. DTE Electric is required to file its Credit A application by May 18, 2018. The second step is to establish Credit B, through contested cases. Credit B is a backward-looking tax credit to reflect the reduction of the corporate rate of 35% to 21%, for the period January 1, 2018 through the date Credit A is established. The Credit B filing is required within sixty days after Credit A is implemented. DTE Electric and DTE Gas have been deferring the impact of the reduction to the corporate tax rate since January 1, 2018. The third step is to perform Calculation C, through contested cases. Calculation C will address all remaining issues relative to the new tax law, which is primarily the remeasurement of deferred taxes and how the amounts deferred as Regulatory liabilities will flow to ratepayers. DTE Electric and DTE Gas are required to file Calculation C no later than October 1, 2018, unless they file a new general rate case prior to October 1, 2018, and address Calculation C within that filing.

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units, performance shares, and stock options do not receive cash dividends; as such, these awards are not considered participating securities.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — basic	$	360	$	399
Average number of common shares outstanding	180		179
Basic Earnings per Common Share	$	2.01	$	2.23
Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — diluted	$	360	$	399
Average number of common shares outstanding	180		179
Diluted Earnings per Common Share(a)	$	2.00	$	2.23

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(a) The 2016 Equity Units excluded from the calculation of diluted EPS were approximately 6.6 million and 6.8 million for the three months endedMarch 31, 2018 and 2017, respectively, as the dilutive stock price threshold was not met.

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Fair Value

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at March 31, 2018 and December 31, 2017. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined as follows:

• Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access as of the reporting date.

• Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

• Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:

	March 31, 2018																	December 31, 2017
	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)	$	16		$	—		$	—		$	—	$	—		$	16		$	16		$	3		$	—		$	—	$	—		$	19
Nuclear decommissioning trusts
Equity securities	933			—			—			—		—			933			978			—			—			—		—			978
Fixed income securities	14			516			—			—		—			530			18			477			—			—		—			495
Private equity securities	—			—			—			5		—			5			—			—			—			5		—			5
Cash equivalents	13			—			—			—		—			13			14			—			—			—		—			14
Other investments(d)
Equity securities	117			—			—			—		—			117			118			—			—			—		—			118
Fixed income securities	70			—			—			—		—			70			72			—			—			—		—			72
Cash equivalents	4			—			—			—		—			4			4			—			—			—		—			4
Derivative assets
Commodity contracts
Natural gas	49			92			66			—		(118		)	89			148			112			97			—		(256		)	101
Electricity	—			162			21			—		(135		)	48			—			243			42			—		(241		)	44
Other	—			—			5			—		—			5			—			—			9			—		—			9
Foreign currency exchange contracts	—			2			—			—		(2		)	—			—			1			—			—		(1		)	—
Total derivative assets	49			256			92			—		(255		)	142			148			356			148			—		(498		)	154
Total	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Derivative liabilities
Commodity contracts
Natural gas	$	(58	)	$	(62	)	$	(76	)	$	—	$	126		$	(70	)	$	(141	)	$	(111	)	$	(126	)	$	—	$	263		$	(115	)
Electricity	—			(164		)	(34		)	—		142			(56		)	—			(245		)	(30		)	—		246			(29		)
Other	—			—			(1		)	—		—			(1		)	—			—			(1		)	—		1			—
Foreign currency exchange contracts	—			(2		)	—			—		2			—			—			(3		)	—			—		1			(2		)
Total derivative liabilities	(58		)	(228		)	(111		)	—		270			(127		)	(141		)	(359		)	(157		)	—		511			(146		)
Total	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713
Assets
Current	$	65		$	194		$	51		$	—	$	(210	)	$	100		$	157		$	298		$	104		$	—	$	(437	)	$	122
Noncurrent	1,151			578			41			5		(45		)	1,730			1,211			538			44			5		(61		)	1,737
Total Assets	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Current	$	(53	)	$	(183	)	$	(53	)	$	—	$	220		$	(69	)	$	(137	)	$	(313	)	$	(108	)	$	—	$	459		$	(99	)
Noncurrent	(5		)	(45		)	(58		)	—		50			(58		)	(4		)	(46		)	(49		)	—		52			(47		)
Total Liabilities	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713

_______________________________________

(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, 2018, equity securities of $16 million consisted of $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. At December 31, 2017, equity securities of $19 million consisted of $8 million and $11 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, 2018										December 31, 2017
	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)	$	8	$	—	$	—	$	—	$	8	$	8	$	3	$	—	$	—	$	11
Nuclear decommissioning trusts
Equity securities	933		—		—		—		933		978		—		—		—		978
Fixed income securities	14		516		—		—		530		18		477		—		—		495
Private equity securities	—		—		—		5		5		—		—		—		5		5
Cash equivalents	13		—		—		—		13		14		—		—		—		14
Other investments
Equity securities	11		—		—		—		11		11		—		—		—		11
Derivative assets — FTRs	—		—		5		—		5		—		—		9		—		9
Total	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523
Assets
Current	$	8	$	—	$	5	$	—	$	13	$	8	$	3	$	9	$	—	$	20
Noncurrent	971		516		—		5		1,492		1,021		477		—		5		1,503
Total Assets	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523

_______________________________________

(a) Amounts represent assets valued at NAV as a practical expedient for fair value.

(b) At March 31, 2018, equity securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2017, equity securities of $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.

Cash Equivalents

Cash equivalents include investments with maturities of three months or less when purchased. The cash equivalents shown in the fair value table are comprised of short-term investments and money market funds.

Nuclear Decommissioning Trusts and Other Investments

The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through institutional mutual funds and commingled funds. Other assets such as private market investments are used to enhance long-term returns while improving portfolio diversification. All pricing for investments in this category are classified as NAV assets. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. Non-exchange-traded fixed income securities are valued based upon quotations available from brokers or pricing services. The institutional mutual funds hold exchange-traded equity or debt securities (exchange and non-exchange traded) and are valued based on publicly available NAVs. A primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee determines that another price source is considered preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Registrants selectively corroborate the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by DTE Energy's Trust Investments Department which reports to DTE Energy's Vice President and Treasurer.

Derivative Assets and Liabilities

Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.

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:

	Three Months Ended March 31, 2018												Three Months Ended March 31, 2017
	Natural Gas			Electricity			Other			Total			Natural Gas			Electricity			Other			Total
	(In millions)
Net Assets (Liabilities) as of January 1	$	(29	)	$	12		$	8		$	(9	)	$	(96	)	$	9		$	(1	)	$	(88	)
Transfers into Level 3 from Level 2	—			—			—			—			—			—			—			—
Transfers from Level 3 into Level 2	(3		)	—			—			(3		)	—			—			—			—
Total gains (losses)
Included in earnings	(70		)	131			—			61			52			(9		)	1			44
Recorded in Regulatory liabilities	—			—			—			—			—			—			2			2
Purchases, issuances, and settlements
Settlements	92			(156		)	(4		)	(68		)	29			(6		)	(4		)	19
Net Assets (Liabilities) as of March 31	$	(10	)	$	(13	)	$	4		$	(19	)	$	(15	)	$	(6	)	$	(2	)	$	(23	)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$	(58	)	$	(10	)	$	—		$	(68	)	$	35		$	(3	)	$	—		$	32

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:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Net Assets as of beginning of period	$	9		$	2
Change in fair value recorded in Regulatory liabilities	—			2
Purchases, issuances, and settlements
Settlements	(4		)	(3		)
Net Assets as of March 31	$	5		$	1
The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at March 31, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position	$	3		$	—

Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in market liquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period.

There were no transfers between Levels 1 and 2 for the Registrants during the three months endedMarch 31, 2018 and 2017, and there were no transfers from or into Level 3 for DTE Electric during the same periods.

The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:

	March 31, 2018
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	66	$	(76	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.37	)	—	$	4.10	/MMBtu	$	(0.08	)/MMBtu
Electricity	$	21	$	(34	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(6	)	—	$	8	/MWh	$	—

	December 31, 2017
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	97	$	(126	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.10	)	—	$	9.75	/MMBtu	$	(0.03	)/MMBtu
Electricity	$	42	$	(30	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(5	)	—	$	15	/MWh	$	2	/MWh

The unobservable inputs used in the fair value measurement of the electricity and natural gas commodity types consist of inputs that are less observable due in part to lack of available broker quotes, supported by little, if any, market activity at the measurement date or are based on internally developed models. Certain basis prices (i.e., the difference in pricing between two locations) included in the valuation of natural gas and electricity contracts were deemed unobservable.

The inputs listed above would have a direct impact on the fair values of the above security types if they were adjusted. A significant increase (decrease) in the basis price would result in a higher (lower) fair value for long positions, with offsetting impacts to short positions.

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments for DTE Energy:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable(a), excluding capital leases	$	37	$	—	$	—	$	37	$	38	$	—	$	—	$	38
Dividends payable	$	160	$	160	$	—	$	—	$	158	$	158	$	—	$	—
Short-term borrowings	$	635	$	—	$	635	$	—	$	621	$	—	$	621	$	—
Notes payable — Other(b), excluding capital leases	$	12	$	—	$	—	$	12	$	12	$	—	$	—	$	12
Long-term debt(c)	$	12,289	$	1,874	$	10,136	$	813	$	12,288	$	1,939	$	10,571	$	764

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

The following table presents the carrying amount and fair value of financial instruments for DTE Electric:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Short-term borrowings — affiliates	$	142	$	—	$	—	$	142	$	116	$	—	$	—	$	116
Short-term borrowings — other	$	380	$	—	$	380	$	—	$	238	$	—	$	238	$	—
Notes payable — Other(b), excluding capital leases	$	2	$	—	$	—	$	2	$	2	$	—	$	—	$	2
Long-term debt(c)	$	6,018	$	—	$	6,194	$	171	$	6,017	$	—	$	6,441	$	171

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

For further fair value information on financial and derivative instruments, see Note 8 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."

Nuclear Decommissioning Trust Funds

DTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of its operating licenses. This obligation is reflected as an Asset retirement obligation on DTE Electric's Consolidated Statements of Financial Position. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste.

The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:

	March 31, 2018		December 31, 2017
	(In millions)
Fermi 2	$	1,463	$	1,475
Fermi 1	3		3
Low-level radioactive waste	15		14
	$	1,481	$	1,492

The costs of securities sold are determined on the basis of specific identification. 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,
	2018			2017
	(In millions)
Realized gains	$	23		$	23
Realized losses	$	(9	)	$	(8	)
Proceeds from sale of securities	$	336		$	394

Realized gains and losses from the sale of securities and unrealized gains and losses incurred by the Fermi 2 trust are recorded to the Regulatory asset and Nuclear decommissioning liability. Realized gains and losses from the sale of securities and unrealized gains and losses on the low-level radioactive waste funds are recorded to the Nuclear decommissioning liability.

The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:

	March 31, 2018							December 31, 2017
	Fair Value		Unrealized Gains		Unrealized Losses			Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	933	$	302	$	(38	)	$	978	$	320	$	(32	)
Fixed income securities	530		8		(7		)	495		13		(3		)
Private equity securities	5		—		—			5		—		—
Cash equivalents	13		—		—			14		—		—
	$	1,481	$	310	$	(45	)	$	1,492	$	333	$	(35	)

The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:

	March 31, 2018
	(In millions)
Due within one year	$	25
Due after one through five years	108
Due after five through ten years	117
Due after ten years	280
	$	530

Other Securities

At March 31, 2018 and December 31, 2017, the Registrants' securities were comprised primarily of money market and equity securities. Losses related to equity securities held at March 31, 2018 were $3 million and gains related to equity securities held at March 31, 2017 were $8 million for the Registrants. The gains or losses related to the Rabbi Trust assets, included in Other investments at DTE Energy, are allocated from DTE Energy to DTE Electric.

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Financial and Other Derivative Instruments

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial and Other Derivative Instruments

FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS

The Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of Financial Position unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. Gains or losses from the ineffective portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative and hedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period.

The Registrants’ primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk management policies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivative instruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain coal forwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas inventory, pipeline transportation contracts, renewable energy credits, and natural gas storage assets.

DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward energy contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

DTE Gas — DTE Gas purchases, stores, transports, distributes, and sells natural gas, and sells storage and transportation capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2021. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. DTE Gas may also sell forward transportation and storage capacity contracts. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.

Gas Storage and Pipelines — This segment is primarily engaged in services related to the gathering, transportation, and storage of natural gas. Primarily fixed-priced contracts are used in the marketing and management of transportation and storage services. Generally, these contracts are not derivatives and are therefore accounted for under the accrual method.

Power and Industrial Projects — This segment manages and operates energy and pulverized coal projects, a coke battery, reduced emissions fuel projects, landfill gas recovery, and power generation assets. Primarily fixed-price contracts are used in the marketing and management of the segment assets. These contracts are generally not derivatives and are therefore accounted for under the accrual method.

Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.

Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information. Based on DTE Energy's credit policies and its March 31, 2018 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.

Derivative Activities

DTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the risks within each contract. Accordingly, it records and manages the energy purchase and sale obligations under its contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The following describes the categories of activities represented by their operating characteristics and key risks:

• Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gas purchases and sales, natural gas transportation, and storage capacity. Changes in the value of derivatives in this category typically economically offset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting. The difference in accounting treatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.

• Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energy marketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.

• Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, or putting capital at risk. This activity is speculative in nature as opposed to hedging an existing exposure.

• Other — Includes derivative activity at DTE Electric related to FTRs. Changes in the value of derivative contracts at DTE Electric are recorded as Derivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in the PSCR mechanism when realized.

The following table presents the fair value of derivative instruments for DTE Energy:

	March 31, 2018					December 31, 2017
	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
	(In millions)
Derivatives not designated as hedging instruments
Commodity contracts
Natural gas	$	207	$	(196	)	$	357	$	(378	)
Electricity	183		(198		)	285		(275		)
Other	5		(1		)	9		(1		)
Foreign currency exchange contracts	2		(2		)	1		(3		)
Total derivatives not designated as hedging instruments	$	397	$	(397	)	$	652	$	(657	)
Current	$	294	$	(289	)	$	540	$	(558	)
Noncurrent	103		(108		)	112		(99		)
Total derivatives	$	397	$	(397	)	$	652	$	(657	)

The following table presents the fair value of derivative instruments for DTE Electric:

	March 31, 2018		December 31, 2017
	(In millions)
FTRs — Other current assets	$	5	$	9
Total derivatives not designated as hedging instruments	$	5	$	9

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.

DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had issued letters of credit of $1 million and $4 million outstanding at March 31, 2018 and December 31, 2017, respectively, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $5 million and $4 million at March 31, 2018 and December 31, 2017, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.

For DTE Energy, the total cash collateral posted, net of cash collateral received, was $18 million and $28 million as of March 31, 2018 and December 31, 2017, respectively. DTE Energy had $7 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $22 million as of March 31, 2018. DTE Energy had $9 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $22 million as of December 31, 2017. DTE Energy recorded cash collateral paid of $15 million and cash collateral received of $12 million not related to unrealized derivative positions as of March 31, 2018. DTE Energy recorded cash collateral paid of $18 million and cash collateral received of $3 million not related to unrealized derivative positions as of December 31, 2017. These amounts are included in Accounts receivable and Accounts payable and are recorded net by counterparty.

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:

	March 31, 2018									December 31, 2017
	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
	(In millions)
Derivative assets
Commodity contracts
Natural gas	$	207		$	(118	)	$	89		$	357		$	(256	)	$	101
Electricity	183			(135		)	48			285			(241		)	44
Other	5			—			5			9			—			9
Foreign currency exchange contracts	2			(2		)	—			1			(1		)	—
Total derivative assets	$	397		$	(255	)	$	142		$	652		$	(498	)	$	154
Derivative liabilities
Commodity contracts
Natural gas	$	(196	)	$	126		$	(70	)	$	(378	)	$	263		$	(115	)
Electricity	(198		)	142			(56		)	(275		)	246			(29		)
Other	(1		)	—			(1		)	(1		)	1			—
Foreign currency exchange contracts	(2		)	2			—			(3		)	1			(2		)
Total derivative liabilities	$	(397	)	$	270		$	(127	)	$	(657	)	$	511		$	(146	)

The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:

	March 31, 2018												December 31, 2017
	Derivative Assets						Derivative Liabilities						Derivative Assets						Derivative Liabilities
	Current			Noncurrent			Current			Noncurrent			Current			Noncurrent			Current			Noncurrent
	(In millions)
Total fair value of derivatives	$	294		$	103		$	(289	)	$	(108	)	$	540		$	112		$	(558	)	$	(99	)
Counterparty netting	(205		)	(43		)	205			43			(437		)	(52		)	437			52
Collateral adjustment	(5		)	(2		)	15			7			—			(9		)	22			—
Total derivatives as reported	$	84		$	58		$	(69	)	$	(58	)	$	103		$	51		$	(99	)	$	(47	)

The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:

Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended March 31,
		2018			2017
		(In millions)
Commodity contracts
Natural gas	Operating Revenues — Non-utility operations	$	(110	)	$	57
Natural gas	Fuel, purchased power, and gas — non-utility	52			61
Electricity	Operating Revenues — Non-utility operations	129			(7		)
Other	Operating Revenues — Non-utility operations	(1		)	—
Foreign currency exchange contracts	Operating Revenues — Non-utility operations	2			—
Total		$	72		$	111

Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, and gas — non-utility.

The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of March 31, 2018:

Commodity	Number of Units
Natural gas (MMBtu)	1,858,053,782
Electricity (MWh)	38,397,695
Foreign currency exchange (Canadian dollars)	103,281,830

Various subsidiaries of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy’s credit rating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”) state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”) are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and coal) and the provisions and maturities of the underlying transactions. As of March 31, 2018, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $513 million.

As of March 31, 2018, DTE Energy had $290 million of derivatives in net liability positions, for which hard triggers exist. There is nocollateral that has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for which contractual offset exists were $230 million. The net remaining amount of $60 million is derived from the $513 millionnoted above.

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Short-Term Credit Arrangements and Borrowings

3 Months Ended

Mar. 31, 2018

Short-term Debt [Abstract]

Short-Term Credit Arrangements and Borrowings

SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance.

The agreements require DTE Energy, DTE Electric, and DTE Gas to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In the agreements, “total funded debt” means all indebtedness of each respective company and their consolidated subsidiaries, including capital lease obligations, hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. “Capitalization” means the sum of (a) total funded debt plus (b) “consolidated net worth,” which is equal to consolidated total equity of each respective company and their 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 March 31, 2018, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.53 to 1, 0.51 to 1, and 0.46 to 1, respectively, and were in compliance with this financial covenant.

The availability under the facilities in place at March 31, 2018 is shown in the following table:

	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured letter of credit facility, expiring in February 2019	$	150	$	—	$	—	$	150
Unsecured letter of credit facility, expiring in September 2019	70		—		—		70
Unsecured revolving credit facility, expiring April 2022	1,200		400		300		1,900
	1,420		400		300		2,120
Amounts outstanding at March 31, 2018
Commercial paper issuances	—		380		255		635
Letters of credit	221		—		—		221
	221		380		255		856
Net availability at March 31, 2018	$	1,199	$	20	$	45	$	1,264

DTE Energy has $9 million of other outstanding letters of credit which are used for various corporate purposes and are not included in the facilities described above.

In conjunction with maintaining certain exchange traded risk management positions, DTE Energy may be required to post collateral with its clearing agent. DTE Energy has a demand financing agreement for up to $100 million with its clearing agent. The agreement, as amended, also allows for up to $50 million of additional margin financing provided that DTE Energy posts a letter of credit for the incremental amount and allows the right of setoff with posted collateral. At March 31, 2018, the capacity under this facility was $125 million. The amount outstanding under this agreement was $84 million and $56 million at March 31, 2018 and December 31, 2017, respectively, and was fully offset by the posted collateral.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Environmental

DTE Electric

Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO₂ and NO_X. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce SO₂, NO_X, mercury, and other emissions. Additional rulemakings may occur over the next few years which could require additional controls for SO₂, NO_X, and other hazardous air pollutants.

The EPA proposed revised air quality standards for ground level ozone in November 2014 and specifically requested comments on the form and level of the ozone standards. The standards were finalized in October 2015. The State of Michigan recommended to the EPA in October 2016 which areas of the state are not attaining the new standard. In November 2017, the EPA completed the majority of the United States attainment/unclassifiable area designations. The Registrants expect the EPA to complete the remaining designations, including the non-attainment area descriptions with the 2015 ozone standards by the second quarter of 2018. DTE Electric cannot predict the financial impact of the revised ozone standards at this time.

In July 2009, DTE Energy received a NOV/FOV from the EPA alleging, among other things, that five DTE Electric power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and operating permit requirements under the Clean Air Act. In June 2010, the EPA issued a NOV/FOV making similar allegations related to a project and outage at Unit 2 of the Monroe Power Plant. In March 2013, DTE Energy received a supplemental NOV from the EPA relating to the July 2009 NOV/FOV. The supplemental NOV alleged additional violations relating to the New Source Review provisions under the Clean Air Act, among other things.

In August 2010, the U.S. Department of Justice, at the request of the EPA, brought a civil suit in the U.S. District Court for the Eastern District of Michigan against DTE Energy and DTE Electric, related to the June 2010 NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant. In August 2011, the U.S. District Court judge granted DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric. In October 2011, the EPA filed a Notice of Appeal to the Court of Appeals for the Sixth Circuit. In March 2013, the Court of Appeals remanded the case to the U.S. District Court for review of the procedural component of the New Source Review notification requirements. In September 2013, the EPA filed a motion seeking leave to amend their complaint regarding the June 2010 NOV/FOV adding additional claims related to outage work performed at the Trenton Channel and Belle River Power Plants as well as additional claims related to work performed at the Monroe Power Plant. In March 2014, the U.S. District Court judge again granted DTE Energy's motion for summary judgment dismissing the civil case related to Monroe Unit 2. In April 2014, the U.S. District Court judge granted motions filed by the EPA and the Sierra Club to amend their New Source Review complaint adding additional claims for Monroe Units 1, 2, and 3, Belle River Units 1 and 2, and Trenton Channel Unit 9. In October 2014, the EPA and the U.S. Department of Justice filed a notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. The amended New Source Review claims were all stayed pending resolution of the appeal by the Court of Appeals for the Sixth Circuit. On January 10, 2017, a divided panel of the Court reversed the decision of the U.S. District Court. On May 8, 2017, DTE Energy and DTE Electric filed a motion to stay the mandate pending filing of a petition for writ of certiorari with the U.S. Supreme Court. The Sixth Circuit granted the motion on May 16, 2017, staying the claims in the U.S. District Court until the U.S. Supreme Court disposes of the case. DTE Electric and DTE Energy filed a petition for writ of certiorari on July 31, 2017. On December 11, 2017, the U.S. Supreme Court denied certiorari. As a result of the Supreme Court electing not to review the matter, the case was sent back to the U.S. District Court for further proceedings.

The Registrants believe that the plants and generating units identified by the EPA and the Sierra Club have complied with all applicable federal environmental regulations. Depending upon the outcome of the litigation and further discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be required to install additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control equipment is not economical, engage in supplemental environmental programs, and/or pay fines. The Registrants cannot predict the financial impact or outcome of this matter, or the timing of its resolution.

The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, in 2015 the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA's repeal and possible replacement of the Clean Power Plan on existing sources at this time.

Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

To comply with air pollution requirements, DTE Electric spent approximately $2.4 billion through 2017. DTE Electric does not anticipate additional capital expenditures through 2024.

Water — In response to an EPA regulation, DTE Electric was required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. Based on the results of completed studies and expected future studies, DTE Electric may be required to install technologies to reduce the impacts of the water intake structures. A final rule became effective in October 2014. The final rule requires studies to be completed and submitted as part of the National Pollutant Discharge Elimination System (NPDES) permit application process to determine the type of technology needed to reduce impacts to fish. DTE Electric has initiated the process of completing the required studies. Final compliance for the installation of any required technology will be determined by each state on a case by case, site specific basis. DTE Electric is currently evaluating the compliance options and working with the State of Michigan on evaluating whether any controls are needed. These evaluations/studies may require modifications to some existing intake structures. It is not possible to quantify the impact of this rulemaking at this time.

Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured locally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedial investigations at contaminated sites, including three former MGP sites. The investigations have revealed contamination related to the by-products of gas manufacturing at each MGP site. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the area surrounding an ash landfill, electrical distribution substations, electric generating power plants, and underground and aboveground storage tank locations. The findings of these investigations indicated that the estimated cost to remediate these sites is expected to be incurred over the next several years. At March 31, 2018 and December 31, 2017, DTE Electric had $6 million accrued for remediation. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site.

Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of coal combustion residuals, commonly known as coal ash, became effective in October 2015, and was revised in October 2016. On March 15, 2018, the EPA published a proposed rule for public comment that is expected to be issued in final form in 2019. Some of the proposed rule provisions could change compliance and closure plans for CCR units if included in the final rule. DTE Electric owns and operates three permitted engineered coal ash storage facilities to dispose of coal ash from coal-fired power plants and operates a number of smaller impoundments at its power plants. CCR obligations vary based on plant life, but include the installation of monitoring wells, compliance with groundwater standards, and the closure of landfills and basins at the end of the useful life of the associated power plant or as a basin becomes inactive.

In November 2015, the EPA finalized the ELG Rule for the steam electric power generating industry which may require additional controls to be installed between 2018 and 2023. Compliance schedules for individual facilities and individual waste streams are determined through issuance of new wastewater permits by the State of Michigan. The State of Michigan has issued a National Pollutant Discharge Elimination System permit for the Belle River Power Plant establishing a compliance deadline of December 31, 2021. No new permits have been issued for other facilities, consequently no compliance timelines have been established. Under the current rule, certain ELG requirements would be required to be performed in conjunction with the CCR. Over the next six years, to comply with the ELG requirements of the November 2015 rules and for the CCR requirements, costs associated with the building of new facilities or installation of controls are estimated to be approximately $283 million.

On April 12, 2017, the EPA granted a petition for reconsideration of the ELG Rule. The EPA also signed an administrative stay of the ELG Rule’s compliance deadlines for fly ash transport water, bottom ash transport water, and flue gas desulfurization (FGD) wastewater, among others. On June 6, 2017, the EPA published in the Federal Register a proposed rule to postpone certain applicable deadlines within the ELG rule. The final rule was published on September 18, 2017, which extended the earliest compliance deadlines for the FGD wastewater and bottom ash transport until November 1, 2020 in order for the EPA to propose and finalize a new ruling. The ELG compliance requirements, final deadlines, and compliance costs will not be known until the EPA completes its reconsideration of the ELG Rule.

DTE Gas

Contaminated and Other Sites — DTE Gas owns or previously owned, 14 former MGP sites. Investigations have revealed contamination related to the by-products of gas manufacturing at each site. Cleanup of six of the MGP sites is complete, and the sites are closed. DTE Gas has also completed partial closure of six additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established a cost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is also in the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As of March 31, 2018 and December 31, 2017, DTE Gas had $40 million and $41 million accrued for remediation, respectively.  Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows for amortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will prevent environmental costs from having a material adverse impact on DTE Gas' results of operations.

Non-utility

DTE Energy's non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environment from various pollutants.

Other

In 2010, the EPA finalized a new one-hour SO₂ ambient air quality standard that requires states to submit plans and associated timelines for non-attainment areas that demonstrate attainment with the new SO₂ standard in phases. Phase 1 addresses non-attainment areas designated based on ambient monitoring data. Phase 2 addresses non-attainment areas with large sources of SO₂ and modeled concentrations exceeding the National Ambient Air Quality Standards for SO₂. Phase 3 addresses smaller sources of SO₂ with modeled or monitored exceedances of the new SO₂ standard.

Michigan's Phase 1 non-attainment area includes DTE Energy facilities in southwest Detroit and areas of Wayne County. Modeling runs by the MDEQ suggest that emission reductions may be required by significant sources of SO₂ emissions in these areas, including DTE Electric power plants and DTE Energy's Michigan coke battery facility. As part of the state implementation plan process, DTE Energy has worked with the MDEQ to develop air permits reflecting significant SO₂ emission reductions that, in combination with other non-DTE Energy sources' emission reduction strategies, will help the state attain the standard and sustain its attainment. Since several non-DTE Energy sources are also part of the proposed compliance plan, DTE Energy is unable to determine the full impact of the final required emissions reductions at this time.

Michigan's Phase 2 non-attainment area includes DTE Electric facilities in St. Clair County. State implementation plan (SIP) submittal and EPA approval describing the control strategy and timeline for demonstrating compliance with the new SO₂ standard is the next step in the process, expected to be completed by the end of the year. DTE Energy is currently working with the MDEQ to develop the required SIP. DTE Energy is unable to determine the full impact of the SIP strategy.

Synthetic Fuel Guarantees

DTE Energy discontinued the operations of its synthetic fuel production facilities throughout the United States as of December 31, 2007. DTE Energy provided certain guarantees and indemnities in conjunction with the sales of interests in its synfuel facilities. The guarantees cover potential commercial, environmental, oil price, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at March 31, 2018 was approximately $400 million. Payments under these guarantees are considered remote.

REF Guarantees

DTE Energy has provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its REF facilities. The guarantees cover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at March 31, 2018 was approximately $420 million. Payments under these guarantees are considered remote.

NEXUS Guarantees

NEXUS entered into certain 15-year capacity lease agreements for the transportation of natural gas with DTE Gas and Texas Eastern Transmission, LP, an unrelated third party. Pursuant to the terms of those agreements, in December 2016, DTE Energy executed separate guarantee agreements with DTE Gas and Texas Eastern Transmission, LP, with maximum potential payments totaling $82 million and $11 million at March 31, 2018, respectively; each representing 50% of all payment obligations due and payable by NEXUS. Should NEXUS fail to perform under the terms of those agreements, DTE Energy is required to perform on its behalf. Each guarantee terminates at the earlier of (i) such time as all of the guaranteed obligations have been fully performed, or (ii) two months following the end of the primary term of the capacity lease agreements. Subsequent to the NEXUS in-service date, the amount of each guarantee decreases annually as payments are made by NEXUS to each of the aforementioned counterparties. Payments under these guarantees are considered remote.

Other Guarantees

In certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. Finally, the Registrants may provide indirect guarantees for the indebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling $55 million at March 31, 2018. Payments under these guarantees are considered remote.

DTE Energy is periodically required to obtain performance surety bonds in support of obligations to various governmental entities and other companies in connection with its operations. As of March 31, 2018, DTE Energy had $59 million of performance bonds outstanding. In the event that such bonds are called for nonperformance, DTE Energy would be obligated to reimburse the issuer of the performance bond. DTE Energy is released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.

Labor Contracts

There are several bargaining units for DTE Energy subsidiaries' approximate 5,000 represented employees, including DTE Electric's approximate 2,700 represented employees. The majority of the represented employees are under contracts that expire in 2020 and 2021.

Purchase Commitments

Utility capital expenditures, expenditures for non-utility businesses, and contributions to equity method investees will be approximately $3.6 billion and $1.9 billion in 2018 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2018 annual capital expenditures and contributions to equity method investees.

Other Contingencies

The Registrants are 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 Registrants cannot predict the final disposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.

For a discussion of contingencies related to regulatory matters and derivatives, see Notes 5 and 8 to the Consolidated Financial Statements, "Regulatory Matters" and "Financial and Other Derivative Instruments," respectively.

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Retirement Benefits and Trusteed Assets

3 Months Ended

Mar. 31, 2018

Defined Benefit Plan [Abstract]

Retirement Benefits and Trusteed Assets

RETIREMENT BENEFITS AND TRUSTEED ASSETS

The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:

	Pension Benefits						Other Postretirement Benefits
	2018			2017			2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	25		$	24		$	7		$	7
Interest cost	50			54			17			18
Expected return on plan assets	(82		)	(78		)	(36		)	(33		)
Amortization of:
Net actuarial loss	44			43			3			3
Prior service credit	—			—			—			(3		)
Net periodic benefit cost (credit)	$	37		$	43		$	(9	)	$	(8	)

DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are sponsored by DTE Energy's subsidiary, DTE Energy Corporate Services, LLC. DTE Electric accounts for its participation in DTE Energy's qualified and nonqualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer. Plan participants of all plans are solely DTE Energy and affiliate participants.

DTE Energy's subsidiaries are responsible for their share of qualified and nonqualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in capital expenditures and operating and maintenance expense were $30 million and $35 million for the three months endedMarch 31, 2018 and 2017, respectively. These amounts include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following tables detail the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:

	Other Postretirement Benefits
	2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	5		$	5
Interest cost	13			14
Expected return on plan assets	(24		)	(23		)
Amortization of:
Net actuarial loss	2			2
Prior service credit	—			(2		)
Net periodic benefit credit	$	(4	)	$	(4	)

Pension and Other Postretirement Contributions

During 2018, DTE Energy contributed the following amounts of DTE Energy common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust:

Date	Number of Shares	Price per Share	Amount
			(In millions)
March 7, 2018	1,751,401	$99.92	$	175

The above contribution was made on behalf of DTE Electric, who paid DTE Energy cash consideration of $175 million in March 2018. During the first three months of 2017, DTE Energy made cash contributions of $126 million, including contributions from DTE Electric of $125 million, to its pension plans. At the discretion of management and depending upon financial market conditions, DTE Energy may make additional contributions up to $25 million to its pension plans in 2018, with no additional contributions planned from DTE Electric.

DTE Energy does not anticipate making any contributions to the other postretirement benefit plans in 2018.

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Segment and Related Information

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment and Related Information

SEGMENT AND RELATED INFORMATION

DTE Energy sets strategic goals, allocates resources, and evaluates performance based on the following structure:

Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan.

Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.

Gas Storage and Pipelines is primarily engaged in services related to the gathering, transportation, and storage of natural gas.

Power and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, produce reduced emissions fuel, and sell electricity and pipeline-quality gas from renewable energy projects.

Energy Trading consists of energy marketing and trading operations.

Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds energy-related investments.

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Electric	$	13	$	12
Gas	2		3
Gas Storage and Pipelines	8		7
Power and Industrial Projects	155		168
Energy Trading	7		11
Corporate and Other	1		1
	$	186	$	202

Financial data of DTE Energy's business segments follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Utility operations
Electric	$	1,205		$	1,175
Gas	550			557
Operating Revenues — Non-utility operations
Gas Storage and Pipelines	119			105
Power and Industrial Projects	567			548
Energy Trading	1,498			1,052
Corporate and Other	—			1
Reconciliation and Eliminations	(186		)	(202		)
Total	$	3,753		$	3,236

Net Income (Loss) Attributable to DTE Energy by Segment:
Electric	$	140		$	106
Gas	104			107
Gas Storage and Pipelines	62			45
Power and Industrial Projects	45			30
Energy Trading	31			96
Corporate and Other	(21		)	16
Net Income Attributable to DTE Energy Company	$	361		$	400

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K.

The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.

The Consolidated Financial Statements are unaudited but, in the Registrants' opinions include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2018.

The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.

Reclassification

Certain prior year balances for DTE Energy were reclassified to match the current year's Consolidated Financial Statements presentation.

Principles of Consolidation

Principles of Consolidation

The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.

The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.

Legal entities within DTE Energy's Power and Industrial Projects segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are accounted for under the equity method.

DTE Energy owns a 55% interest in SGG, which owns and operates midstream natural gas assets. SGG has contracts through which certain construction risk is designed to pass-through to the customers, with DTE Energy retaining operational and customer default risk. SGG is a VIE with DTE Energy as the primary beneficiary.

The Registrants have variable interests in NEXUS, which include DTE Energy's 50% ownership interest and DTE Electric's transportation services contract. NEXUS is a joint venture which is in the process of constructing a 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio, Michigan, and Ontario market centers. NEXUS is a VIE as it has insufficient equity at risk to finance its activities. The Registrants are not the primary beneficiaries, as the power to direct significant activities is shared between the owners of the equity interests. DTE Energy accounts for its ownership interest in NEXUS under the equity method.

The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, as well as an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.

DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of March 31, 2018, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no significant potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no significant potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position and in Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," related to the REF guarantees and indemnities. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment, notes receivable, future funding commitments, and amounts which DTE Energy has guaranteed. See Note 10 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of the NEXUS guarantee arrangements.

Changes in Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income (Loss)

For the three months endedMarch 31, 2018 and 2017, reclassifications out of Accumulated other comprehensive income (loss) for the Registrants were not material. Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity. For further discussion regarding changes in Accumulated other comprehensive income (loss), see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash consists of funds held to satisfy requirements of certain debt and DTE Energy partnership operating agreements. Restricted cash designated for interest and principal payments within one year is classified as a Current Asset.

Recently Adopted and Recently Issued Pronouncements

Recently Adopted Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also required expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is to be applied retrospectively. The Registrants adopted the standard effective January 1, 2018 using the modified retrospective approach. Under the modified retrospective approach, the information for periods prior to the adoption date has not been restated and continues to be reported under the accounting standards in effect for those periods. As permitted under the standard, the Registrants have elected to apply the guidance only to those contracts that were not completed at January 1, 2018, and have elected not to restate the impacts of any contract modifications made prior to the earliest period presented.

The adoption of the ASU did not have a significant impact on the Registrants' financial position or results of operations, but required additional disclosures for revenue. See Note 4 to the Consolidated Financial Statements, "Revenue."

In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update required that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The Registrants adopted the standard effective January 1, 2018. The standard has been applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. As permitted by the standard, the Registrants have used benefit cost amounts disclosed for prior periods as the basis for retrospective application in the income statement. As a result of regulatory mechanisms, the impact to the Consolidated Financial Statements was not material for the first quarter of 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as amended. The new guidance is intended to improve the recognition and measurement of financial instruments. The guidance primarily impacts accounting for equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) and financial liabilities under the fair value option. The guidance requires equity investments to be generally measured at fair value, with subsequent changes in fair value recognized in net income. The guidance requires entities to make a cumulative-effect adjustment to the Statements of Financial Position as of the beginning of the first reporting period in which the guidance is effective. The Registrants adopted the standard effective January 1, 2018. Upon adoption, DTE Energy and DTE Electric recorded a cumulative-effect adjustment to reclassify $5 million and $3 million of unrealized gains from Accumulated other comprehensive income (loss) to Retained earnings, respectively.

In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118. The Amendments in this update add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118). SAB 118 directs taxpayers to consider the implications of the TCJA as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 10 to the Consolidated Financial Statements, "Income Taxes," within the combined DTE Energy and DTE Electric 2017 Annual Report on Form 10-K and in accordance with SAB 118, the Registrants recorded amounts that were considered provisional. In first quarter of 2018, DTE Energy and DTE Electric recorded true-up adjustments to the remeasurement of deferred taxes of $21 million and $8 million, respectively. The impact of the true-up adjustments was an increase in Income Tax Expense, of which $16 million was attributable to the regulated utilities and offset to Regulatory liabilities.The true-up adjustments were a result of further analysis for items subject to further consideration at December 31, 2017 under SAB 118 and primarily related to timing differences not recoverable from DTE Electric and DTE Gas customers. The Registrants will continue to analyze the amounts throughout 2018, which may result in additional changes.

Recently Issued Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), as amended. This guidance requires a lessee to account for leases as finance or operating leases, and disclose key information about leasing arrangements. Both types of leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition, depending on the lease classification. The Registrants will adopt the standard on January 1, 2019. As originally issued, the standard requires a modified retrospective approach for leases existing or entered into after the beginning of the earliest comparative period in the Consolidated Financial Statements. The Registrants are evaluating the transition practical expedients available under the guidance, such as retaining the current lease assessment and classifications for existing leases at the effective date, and not applying the new guidance to land easements that exist or expire before the effective date.

A third-party software tool is being implemented that will assist with the initial adoption and ongoing compliance of the standard. The Registrants are evaluating contracts for leases and abstracting the required data, as well as evaluating new business processes, internal controls, and accounting policies. In addition, the Registrants are monitoring utility industry implementation issues for purchase power agreements, pipeline laterals, and other industry specific arrangements. While the Registrants expect an increase in assets and liabilities, as well as additional disclosures, they are still assessing the impact of this ASU on their Consolidated Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in current generally accepted accounting principles with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entities will apply the new guidance as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effective for the Registrants beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The amendments in this update also require entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

Revenue Recognition

Upon the adoption of Topic 606, revenue is measured based upon the consideration specified in a contract with a customer at the time when performance obligations are satisfied. Under Topic 606, a performance obligation is a promise in a contract to transfer a distinct good or service or a series of distinct goods or services to the customer. The Registrants recognize revenue when performance obligations are satisfied by transferring control over a product or service to a customer. The Registrants have determined control to be transferred when the product is delivered or the service is provided to the customer. For the three months ended March 31, 2018, recognition of revenue for the Registrants subsequent to the adoption of Topic 606 is substantially similar in amount and approach to that prior to adoption.

Rates for DTE Electric and DTE Gas include provisions to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are included in Regulatory assets or liabilities on the Registrants' Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at March 31, 2018 and December 31, 2017. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined as follows:

• Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access as of the reporting date.

• Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

• Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

Nuclear Decommissioning Trusts and Other Investments

Nuclear Decommissioning Trusts and Other Investments

The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through institutional mutual funds and commingled funds. Other assets such as private market investments are used to enhance long-term returns while improving portfolio diversification. All pricing for investments in this category are classified as NAV assets. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. Non-exchange-traded fixed income securities are valued based upon quotations available from brokers or pricing services. The institutional mutual funds hold exchange-traded equity or debt securities (exchange and non-exchange traded) and are valued based on publicly available NAVs. A primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee determines that another price source is considered preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Registrants selectively corroborate the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by DTE Energy's Trust Investments Department which reports to DTE Energy's Vice President and Treasurer.

Derivative Assets and Liabilities

Derivative Assets and Liabilities

Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.

Fair Value Transfer

Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in market liquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period.

Derivatives

The Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of Financial Position unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. Gains or losses from the ineffective portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative and hedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period.

The Registrants’ primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk management policies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivative instruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain coal forwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas inventory, pipeline transportation contracts, renewable energy credits, and natural gas storage assets.

DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward energy contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

DTE Gas — DTE Gas purchases, stores, transports, distributes, and sells natural gas, and sells storage and transportation capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2021. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. DTE Gas may also sell forward transportation and storage capacity contracts. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.

Gas Storage and Pipelines — This segment is primarily engaged in services related to the gathering, transportation, and storage of natural gas. Primarily fixed-priced contracts are used in the marketing and management of transportation and storage services. Generally, these contracts are not derivatives and are therefore accounted for under the accrual method.

Power and Industrial Projects — This segment manages and operates energy and pulverized coal projects, a coke battery, reduced emissions fuel projects, landfill gas recovery, and power generation assets. Primarily fixed-price contracts are used in the marketing and management of the segment assets. These contracts are generally not derivatives and are therefore accounted for under the accrual method.

Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.

Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.

Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information. Based on DTE Energy's credit policies and its March 31, 2018 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.

Derivatives, Offsetting Fair Value Amounts

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.

DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had issued letters of credit of $1 million and $4 million outstanding at March 31, 2018 and December 31, 2017, respectively, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $5 million and $4 million at March 31, 2018 and December 31, 2017, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.

Derivatives, Methods of Accounting, Derivatives Not Designated or Qualifying as Hedges

Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, and gas — non-utility.

Income Tax

The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.

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Organization and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2018

Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

Schedule of Variable Interest Entities

The following table summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of March 31, 2018 and December 31, 2017. All assets and liabilities of a consolidated VIE are presented where it has been determined that aconsolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table below.

	March 31, 2018						December 31, 2017
	SGG(a)		Other		Total		SGG(a)		Other		Total
	(In millions)
ASSETS
Cash and cash equivalents	$	29	$	12	$	41	$	23	$	14	$	37
Restricted cash	—		8		8		—		8		8
Accounts receivable	11		37		48		11		42		53
Inventories	3		66		69		3		114		117
Property, plant, and equipment, net	386		73		459		400		75		475
Goodwill	25		—		25		25		—		25
Intangible assets	568		—		568		572		—		572
Other current and long-term assets	2		—		2		4		—		4
	$	1,024	$	196	$	1,220	$	1,038	$	253	$	1,291
LIABILITIES
Accounts payable and accrued current liabilities	$	2	$	35	$	37	$	26	$	47	$	73
Current portion long-term debt, including capital leases	—		4		4		—		4		4
Mortgage bonds, notes, and other	—		—		—		—		1		1
Other current and long-term liabilities	2		15		17		1		16		17
	$	4	$	54	$	58	$	27	$	68	$	95

_____________________________________

(a)Amounts shown are 100% of SGG's assets and liabilities, of which DTE Energy owns 55%.

Summary of Amounts for Non-Consolidated Variable Interest Entities

Amounts for DTE Energy's non-consolidated VIEs are as follows:

	March 31, 2018		December 31, 2017
	(In millions)
Investments in equity method investees	$	866	$	811
Notes receivable	$	17	$	17
Future funding commitments	$	551	$	598

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of Other Income

The following is a summary of DTE Energy's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Income from REF entities	$	23	$	18
Equity earnings of equity method investees	21		26
Contract services	20		4
Allowance for equity funds used during construction	7		7
Gains from equity securities	—		8
Other	10		1
	$	81	$	64

The following is a summary of DTE Electric's Other income:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Contract services	$	20	$	4
Allowance for equity funds used during construction	5		6
Gains from equity securities allocated from DTE Energy	—		8
Other	2		1
	$	27	$	19

Schedule of Effective Tax Rate

The interim effective tax rate of the Registrants are as follows:

	Effective Tax Rate
	Three Months Ended March 31,
	2018		2017
DTE Energy	16	%	22	%
DTE Electric	25	%	35	%

Schedule of Cash and Cash Equivalents

The following is a table that provides a reconciliation of DTE Energy's Cash and cash equivalents as well as Restricted cash reported within the Consolidated Statements of Financial Position that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Cash and cash equivalents	$	164	$	82
Restricted cash	22		20
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	186	$	102

Schedule of Cash and Restricted Cash

The following is a table that provides a reconciliation of DTE Energy's Cash and cash equivalents as well as Restricted cash reported within the Consolidated Statements of Financial Position that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Cash and cash equivalents	$	164	$	82
Restricted cash	22		20
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$	186	$	102

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Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment for DTE Energy:

	Three Months Ended March 31, 2018
	(In millions)
Electric(a)
Residential	$	586
Commercial	429
Industrial	176
Other(b)	14
Total Electric operating revenues(c)	$	1,205
Gas
Gas sales	$	457
End User Transportation	85
Intermediate Transportation	18
Other(d)	(10		)
Total Gas operating revenues(e)	$	550
Other segment operating revenues(f)
Gas Storage and Pipelines	$	119
Power and Industrial Projects	$	567
Energy Trading	$	1,498

_______________________________________

(a) Revenues under the Electric segment generally represent those of DTE Electric.

(b) Includes a reduction of $39 million in revenues related to TCJA rate reduction reserve.

(c) Includes $5 million of other revenues which are outside the scope of Topic 606.

(d) Includes a reduction of $32 million in revenues related to TCJA rate reduction reserve.

(e) Includes a reduction of $3 million under Alternative Revenue Programs and $2 million of other revenues which are both outside the scope of Topic 606.

(f) Includes revenues outside the scope of Topic 606 primarily related to $445 million of contracts accounted for as leases at the Power and Industrial Projects segment and $1.2 billion related to derivatives at the Energy Trading segment.

Contract with Customer, Liability

The following is a summary of deferred revenue activity:

	DTE Energy
	(In millions)
Beginning Balance, January 1, 2018	$	56
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	14
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(16		)
Ending Balance, March 31, 2018	$	54

Remaining Performance Obligation, Expected Timing of Satisfaction

The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:

	DTE Energy		DTE Electric
	(In millions)
2018	$	159	$	6
2019	238		8
2020	168		—
2021	128		—
2022	103		—
2023 and thereafter	351		—
Total	$	1,147	$	14

The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:

	DTE Energy
	(In millions)
2018	$	23
2019	9
2020	1
2021	5
2022	6
2023 and thereafter	10
	$	54

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — basic	$	360	$	399
Average number of common shares outstanding	180		179
Basic Earnings per Common Share	$	2.01	$	2.23
Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	361	$	400
Less: Allocation of earnings to net restricted stock awards	1		1
Net income available to common shareholders — diluted	$	360	$	399
Average number of common shares outstanding	180		179
Diluted Earnings per Common Share(a)	$	2.00	$	2.23

_______________________________________

(a) The 2016 Equity Units excluded from the calculation of diluted EPS were approximately 6.6 million and 6.8 million for the three months endedMarch 31, 2018 and 2017, respectively, as the dilutive stock price threshold was not met.

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

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:

	March 31, 2018																	December 31, 2017
	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)	$	16		$	—		$	—		$	—	$	—		$	16		$	16		$	3		$	—		$	—	$	—		$	19
Nuclear decommissioning trusts
Equity securities	933			—			—			—		—			933			978			—			—			—		—			978
Fixed income securities	14			516			—			—		—			530			18			477			—			—		—			495
Private equity securities	—			—			—			5		—			5			—			—			—			5		—			5
Cash equivalents	13			—			—			—		—			13			14			—			—			—		—			14
Other investments(d)
Equity securities	117			—			—			—		—			117			118			—			—			—		—			118
Fixed income securities	70			—			—			—		—			70			72			—			—			—		—			72
Cash equivalents	4			—			—			—		—			4			4			—			—			—		—			4
Derivative assets
Commodity contracts
Natural gas	49			92			66			—		(118		)	89			148			112			97			—		(256		)	101
Electricity	—			162			21			—		(135		)	48			—			243			42			—		(241		)	44
Other	—			—			5			—		—			5			—			—			9			—		—			9
Foreign currency exchange contracts	—			2			—			—		(2		)	—			—			1			—			—		(1		)	—
Total derivative assets	49			256			92			—		(255		)	142			148			356			148			—		(498		)	154
Total	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Derivative liabilities
Commodity contracts
Natural gas	$	(58	)	$	(62	)	$	(76	)	$	—	$	126		$	(70	)	$	(141	)	$	(111	)	$	(126	)	$	—	$	263		$	(115	)
Electricity	—			(164		)	(34		)	—		142			(56		)	—			(245		)	(30		)	—		246			(29		)
Other	—			—			(1		)	—		—			(1		)	—			—			(1		)	—		1			—
Foreign currency exchange contracts	—			(2		)	—			—		2			—			—			(3		)	—			—		1			(2		)
Total derivative liabilities	(58		)	(228		)	(111		)	—		270			(127		)	(141		)	(359		)	(157		)	—		511			(146		)
Total	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713
Assets
Current	$	65		$	194		$	51		$	—	$	(210	)	$	100		$	157		$	298		$	104		$	—	$	(437	)	$	122
Noncurrent	1,151			578			41			5		(45		)	1,730			1,211			538			44			5		(61		)	1,737
Total Assets	$	1,216		$	772		$	92		$	5	$	(255	)	$	1,830		$	1,368		$	836		$	148		$	5	$	(498	)	$	1,859
Liabilities
Current	$	(53	)	$	(183	)	$	(53	)	$	—	$	220		$	(69	)	$	(137	)	$	(313	)	$	(108	)	$	—	$	459		$	(99	)
Noncurrent	(5		)	(45		)	(58		)	—		50			(58		)	(4		)	(46		)	(49		)	—		52			(47		)
Total Liabilities	$	(58	)	$	(228	)	$	(111	)	$	—	$	270		$	(127	)	$	(141	)	$	(359	)	$	(157	)	$	—	$	511		$	(146	)
Net Assets (Liabilities) at end of period	$	1,158		$	544		$	(19	)	$	5	$	15		$	1,703		$	1,227		$	477		$	(9	)	$	5	$	13		$	1,713

_______________________________________

(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, 2018, equity securities of $16 million consisted of $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. At December 31, 2017, equity securities of $19 million consisted of $8 million and $11 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, 2018										December 31, 2017
	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)	$	8	$	—	$	—	$	—	$	8	$	8	$	3	$	—	$	—	$	11
Nuclear decommissioning trusts
Equity securities	933		—		—		—		933		978		—		—		—		978
Fixed income securities	14		516		—		—		530		18		477		—		—		495
Private equity securities	—		—		—		5		5		—		—		—		5		5
Cash equivalents	13		—		—		—		13		14		—		—		—		14
Other investments
Equity securities	11		—		—		—		11		11		—		—		—		11
Derivative assets — FTRs	—		—		5		—		5		—		—		9		—		9
Total	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523
Assets
Current	$	8	$	—	$	5	$	—	$	13	$	8	$	3	$	9	$	—	$	20
Noncurrent	971		516		—		5		1,492		1,021		477		—		5		1,503
Total Assets	$	979	$	516	$	5	$	5	$	1,505	$	1,029	$	480	$	9	$	5	$	1,523

_______________________________________

(a) Amounts represent assets valued at NAV as a practical expedient for fair value.

(b) At March 31, 2018, equity 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:

	Three Months Ended March 31, 2018												Three Months Ended March 31, 2017
	Natural Gas			Electricity			Other			Total			Natural Gas			Electricity			Other			Total
	(In millions)
Net Assets (Liabilities) as of January 1	$	(29	)	$	12		$	8		$	(9	)	$	(96	)	$	9		$	(1	)	$	(88	)
Transfers into Level 3 from Level 2	—			—			—			—			—			—			—			—
Transfers from Level 3 into Level 2	(3		)	—			—			(3		)	—			—			—			—
Total gains (losses)
Included in earnings	(70		)	131			—			61			52			(9		)	1			44
Recorded in Regulatory liabilities	—			—			—			—			—			—			2			2
Purchases, issuances, and settlements
Settlements	92			(156		)	(4		)	(68		)	29			(6		)	(4		)	19
Net Assets (Liabilities) as of March 31	$	(10	)	$	(13	)	$	4		$	(19	)	$	(15	)	$	(6	)	$	(2	)	$	(23	)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$	(58	)	$	(10	)	$	—		$	(68	)	$	35		$	(3	)	$	—		$	32

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:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Net Assets as of beginning of period	$	9		$	2
Change in fair value recorded in Regulatory liabilities	—			2
Purchases, issuances, and settlements
Settlements	(4		)	(3		)
Net Assets as of March 31	$	5		$	1
The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at March 31, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position	$	3		$	—

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:

	March 31, 2018
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	66	$	(76	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.37	)	—	$	4.10	/MMBtu	$	(0.08	)/MMBtu
Electricity	$	21	$	(34	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(6	)	—	$	8	/MWh	$	—

	December 31, 2017
Commodity Contracts	Derivative Assets		Derivative Liabilities			Valuation Techniques	Unobservable Input	Range							Weighted Average
	(In millions)
Natural Gas	$	97	$	(126	)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.10	)	—	$	9.75	/MMBtu	$	(0.03	)/MMBtu
Electricity	$	42	$	(30	)	Discounted Cash Flow	Forward basis price (per MWh)	$	(5	)	—	$	15	/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:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Notes receivable(a), excluding capital leases	$	37	$	—	$	—	$	37	$	38	$	—	$	—	$	38
Dividends payable	$	160	$	160	$	—	$	—	$	158	$	158	$	—	$	—
Short-term borrowings	$	635	$	—	$	635	$	—	$	621	$	—	$	621	$	—
Notes payable — Other(b), excluding capital leases	$	12	$	—	$	—	$	12	$	12	$	—	$	—	$	12
Long-term debt(c)	$	12,289	$	1,874	$	10,136	$	813	$	12,288	$	1,939	$	10,571	$	764

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

The following table presents the carrying amount and fair value of financial instruments for DTE Electric:

	March 31, 2018								December 31, 2017
	Carrying		Fair Value						Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
	(In millions)
Short-term borrowings — affiliates	$	142	$	—	$	—	$	142	$	116	$	—	$	—	$	116
Short-term borrowings — other	$	380	$	—	$	380	$	—	$	238	$	—	$	238	$	—
Notes payable — Other(b), excluding capital leases	$	2	$	—	$	—	$	2	$	2	$	—	$	—	$	2
Long-term debt(c)	$	6,018	$	—	$	6,194	$	171	$	6,017	$	—	$	6,441	$	171

_______________________________________

(a) Current portion included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.

(b) Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.

(c) Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.

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, 2018		December 31, 2017
	(In millions)
Fermi 2	$	1,463	$	1,475
Fermi 1	3		3
Low-level radioactive waste	15		14
	$	1,481	$	1,492

Schedule of Realized Gains and Losses and Proceeds from Sale of Securities by Nuclear Decommissioning Trust Funds

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,
	2018			2017
	(In millions)
Realized gains	$	23		$	23
Realized losses	$	(9	)	$	(8	)
Proceeds from sale of securities	$	336		$	394

Fair Value and Unrealized Gains and Losses for Nuclear Decommissioning Trust Funds

The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:

	March 31, 2018							December 31, 2017
	Fair Value		Unrealized Gains		Unrealized Losses			Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	933	$	302	$	(38	)	$	978	$	320	$	(32	)
Fixed income securities	530		8		(7		)	495		13		(3		)
Private equity securities	5		—		—			5		—		—
Cash equivalents	13		—		—			14		—		—
	$	1,481	$	310	$	(45	)	$	1,492	$	333	$	(35	)

Fair Value of the Fixed Income Securities Held in Nuclear Decommissioning Trust Funds

The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:

	March 31, 2018
	(In millions)
Due within one year	$	25
Due after one through five years	108
Due after five through ten years	117
Due after ten years	280
	$	530

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Financial and Other Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table presents the fair value of derivative instruments for DTE Energy:

	March 31, 2018					December 31, 2017
	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
	(In millions)
Derivatives not designated as hedging instruments
Commodity contracts
Natural gas	$	207	$	(196	)	$	357	$	(378	)
Electricity	183		(198		)	285		(275		)
Other	5		(1		)	9		(1		)
Foreign currency exchange contracts	2		(2		)	1		(3		)
Total derivatives not designated as hedging instruments	$	397	$	(397	)	$	652	$	(657	)
Current	$	294	$	(289	)	$	540	$	(558	)
Noncurrent	103		(108		)	112		(99		)
Total derivatives	$	397	$	(397	)	$	652	$	(657	)

The following table presents the fair value of derivative instruments for DTE Electric:

	March 31, 2018		December 31, 2017
	(In millions)
FTRs — Other current assets	$	5	$	9
Total derivatives not designated as hedging instruments	$	5	$	9

Netting Offsets of Derivative Assets and Liabilities

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:

	March 31, 2018									December 31, 2017
	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
	(In millions)
Derivative assets
Commodity contracts
Natural gas	$	207		$	(118	)	$	89		$	357		$	(256	)	$	101
Electricity	183			(135		)	48			285			(241		)	44
Other	5			—			5			9			—			9
Foreign currency exchange contracts	2			(2		)	—			1			(1		)	—
Total derivative assets	$	397		$	(255	)	$	142		$	652		$	(498	)	$	154
Derivative liabilities
Commodity contracts
Natural gas	$	(196	)	$	126		$	(70	)	$	(378	)	$	263		$	(115	)
Electricity	(198		)	142			(56		)	(275		)	246			(29		)
Other	(1		)	—			(1		)	(1		)	1			—
Foreign currency exchange contracts	(2		)	2			—			(3		)	1			(2		)
Total derivative liabilities	$	(397	)	$	270		$	(127	)	$	(657	)	$	511		$	(146	)

Netting Offsets of Derivative Assets and Liabilities Reconciliation to the Statements of Financial Position

The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:

	March 31, 2018												December 31, 2017
	Derivative Assets						Derivative Liabilities						Derivative Assets						Derivative Liabilities
	Current			Noncurrent			Current			Noncurrent			Current			Noncurrent			Current			Noncurrent
	(In millions)
Total fair value of derivatives	$	294		$	103		$	(289	)	$	(108	)	$	540		$	112		$	(558	)	$	(99	)
Counterparty netting	(205		)	(43		)	205			43			(437		)	(52		)	437			52
Collateral adjustment	(5		)	(2		)	15			7			—			(9		)	22			—
Total derivatives as reported	$	84		$	58		$	(69	)	$	(58	)	$	103		$	51		$	(99	)	$	(47	)

Gain (Loss) Recognized in Income on Derivatives

The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:

Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended March 31,
		2018			2017
		(In millions)
Commodity contracts
Natural gas	Operating Revenues — Non-utility operations	$	(110	)	$	57
Natural gas	Fuel, purchased power, and gas — non-utility	52			61
Electricity	Operating Revenues — Non-utility operations	129			(7		)
Other	Operating Revenues — Non-utility operations	(1		)	—
Foreign currency exchange contracts	Operating Revenues — Non-utility operations	2			—
Total		$	72		$	111

Volume of Commodity Contracts

The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of March 31, 2018:

Commodity	Number of Units
Natural gas (MMBtu)	1,858,053,782
Electricity (MWh)	38,397,695
Foreign currency exchange (Canadian dollars)	103,281,830

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Short-Term Credit Arrangements and Borrowings (Tables)

3 Months Ended

Mar. 31, 2018

Short-term Debt [Abstract]

Schedule of Line of Credit Facilities

The availability under the facilities in place at March 31, 2018 is shown in the following table:

	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured letter of credit facility, expiring in February 2019	$	150	$	—	$	—	$	150
Unsecured letter of credit facility, expiring in September 2019	70		—		—		70
Unsecured revolving credit facility, expiring April 2022	1,200		400		300		1,900
	1,420		400		300		2,120
Amounts outstanding at March 31, 2018
Commercial paper issuances	—		380		255		635
Letters of credit	221		—		—		221
	221		380		255		856
Net availability at March 31, 2018	$	1,199	$	20	$	45	$	1,264

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Retirement Benefits and Trusteed Assets (Tables)

3 Months Ended

Mar. 31, 2018

Defined Benefit Plan [Abstract]

Schedule of Net Periodic Benefit Costs (Credits)

The following tables detail the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:

	Other Postretirement Benefits
	2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	5		$	5
Interest cost	13			14
Expected return on plan assets	(24		)	(23		)
Amortization of:
Net actuarial loss	2			2
Prior service credit	—			(2		)
Net periodic benefit credit	$	(4	)	$	(4	)

The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:

	Pension Benefits						Other Postretirement Benefits
	2018			2017			2018			2017
Three Months Ended March 31,	(In millions)
Service cost	$	25		$	24		$	7		$	7
Interest cost	50			54			17			18
Expected return on plan assets	(82		)	(78		)	(36		)	(33		)
Amortization of:
Net actuarial loss	44			43			3			3
Prior service credit	—			—			—			(3		)
Net periodic benefit cost (credit)	$	37		$	43		$	(9	)	$	(8	)

Schedule of Defined Benefit Plans Disclosures

During 2018, DTE Energy contributed the following amounts of DTE Energy common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust:

Date	Number of Shares	Price per Share	Amount
			(In millions)
March 7, 2018	1,751,401	$99.92	$	175

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Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Electric	$	13	$	12
Gas	2		3
Gas Storage and Pipelines	8		7
Power and Industrial Projects	155		168
Energy Trading	7		11
Corporate and Other	1		1
	$	186	$	202

Financial data of DTE Energy's business segments follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Operating Revenues — Utility operations
Electric	$	1,205		$	1,175
Gas	550			557
Operating Revenues — Non-utility operations
Gas Storage and Pipelines	119			105
Power and Industrial Projects	567			548
Energy Trading	1,498			1,052
Corporate and Other	—			1
Reconciliation and Eliminations	(186		)	(202		)
Total	$	3,753		$	3,236

Net Income (Loss) Attributable to DTE Energy by Segment:
Electric	$	140		$	106
Gas	104			107
Gas Storage and Pipelines	62			45
Power and Industrial Projects	45			30
Energy Trading	31			96
Corporate and Other	(21		)	16
Net Income Attributable to DTE Energy Company	$	361		$	400

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Organization and Basis of Presentation (Details Textuals) customer in Millions	Mar. 31, 2018 USD ($) customer
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of electric utility customers | customer	2.2
Number of gas utility customers | customer	1.3
Significant potential exposure | $	$ 0
DTE Electric
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Significant potential exposure | $	$ 0
NEXUS pipeline
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Ownership interest	50.00%
West Virginia | Midstream Natural Gas Assets
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Percent of assets acquired	55.00%

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Organization and Basis of Presentation (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
ASSETS
Cash and cash equivalents	$ 164	$ 66	$ 82
Restricted cash	22	23	$ 20
Accounts receivable	1,709	1,758
Property, plant, and equipment, net	20,870	20,721
Goodwill	2,293	2,293
Intangible assets	867	867
Total Assets	33,841	33,767
LIABILITIES
Current portion long-term debt, including capital leases	106	109
Mortgage bonds, notes, and other	11,040	11,039
Variable interest entity, primary beneficiary, restricted
ASSETS
Cash and cash equivalents	41	37
Restricted cash	8	8
Accounts receivable	48	53
Inventories	69	117
Property, plant, and equipment, net	459	475
Goodwill	25	25
Intangible assets	568	572
Other current and long-term assets	2	4
Total Assets	1,220	1,291
LIABILITIES
Accounts payable and accrued current liabilities	37	73
Current portion long-term debt, including capital leases	4	4
Mortgage bonds, notes, and other	0	1
Other current and long-term liabilities	17	17
Total liabilities	58	95
SGG
ASSETS
Cash and cash equivalents	29	23
Restricted cash	0	0
Accounts receivable	11	11
Inventories	3	3
Property, plant, and equipment, net	386	400
Goodwill	25	25
Intangible assets	568	572
Other current and long-term assets	2	4
Total Assets	1,024	1,038
LIABILITIES
Accounts payable and accrued current liabilities	2	26
Current portion long-term debt, including capital leases	0	0
Mortgage bonds, notes, and other	0	0
Other current and long-term liabilities	2	1
Total liabilities	$ 4	27
VIE ownership and non-ownership percentage	100.00%
VIE ownership percentage	55.00%
Other
ASSETS
Cash and cash equivalents	$ 12	14
Restricted cash	8	8
Accounts receivable	37	42
Inventories	66	114
Property, plant, and equipment, net	73	75
Goodwill	0	0
Intangible assets	0	0
Other current and long-term assets	0	0
Total Assets	196	253
LIABILITIES
Accounts payable and accrued current liabilities	35	47
Current portion long-term debt, including capital leases	4	4
Mortgage bonds, notes, and other	0	1
Other current and long-term liabilities	15	16
Total liabilities	$ 54	$ 68

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Organization and Basis of Presentation (Non-Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Investments in equity method investees	$ 1,141	$ 1,073
Notes receivable	70	73
Variable interest entity, non-consolidated
Variable Interest Entity [Line Items]
Investments in equity method investees	866	811
Notes receivable	17	17
Future funding commitments	$ 551	$ 598

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Significant Accounting Policies Significant Accounting Policies (Other Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Other Nonoperating Income, by Component [Line Items]
Income from REF entities	$ 23	$ 18
Equity earnings of equity method investees	21	26
Contract services	20	4
Allowance for equity funds used during construction	7	7
Gains from equity securities	0	8
Other	10	1
Total other income	81	64
DTE Electric
Schedule of Other Nonoperating Income, by Component [Line Items]
Contract services	20	4
Allowance for equity funds used during construction	5	6
Gains from equity securities	0	8
Other	2	1
Total other income	$ 27	$ 19

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Significant Accounting Policies (Income Taxes) (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Income Taxes [Line Items]
Effective Tax Rate	16.00%	22.00%
DTE Electric
Schedule of Income Taxes [Line Items]
Effective Tax Rate	25.00%	35.00%

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Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Significant Accounting Policies [Line Items]
Effective Tax Rate	16.00%	22.00%
Effective tax rate increase (decrease)	(6.00%)
Income tax (expense) benefit due to remeasurement of deferred taxes	$ 21
Measurement period increase (decrease) in effective tax rate	5.00%
ASU 2016-09 excess tax benefit amount	$ 10
ASU 2016-09 excess tax benefit (percentage)	2.00%
Unrecognized tax benefits	$ 8
Unrecognized tax benefits that would impact effective tax rate	8
Unrecognized compensation cost	$ 111
Recognition period (in years)	1 year 9 months
DTE Electric
Significant Accounting Policies [Line Items]
Effective Tax Rate	25.00%	35.00%
Effective tax rate increase (decrease)	(10.00%)
Income tax (expense) benefit due to remeasurement of deferred taxes	$ 8
Measurement period increase (decrease) in effective tax rate	4.00%
Unrecognized tax benefits	$ 10
Unrecognized tax benefits that would impact effective tax rate	10
DTE Electric | DTE Energy
Significant Accounting Policies [Line Items]
Income tax receivable	13			$ 12
Allocated costs	$ 9	$ 8
Forecast
Significant Accounting Policies [Line Items]
Effective Tax Rate			13.00%
Forecast | DTE Electric
Significant Accounting Policies [Line Items]
Effective Tax Rate			22.00%

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Significant Accounting Policies (Cash and Restricted Cash) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 164	$ 66	$ 82
Restricted cash	22	23	20
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$ 186	$ 89	$ 102	$ 113

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New Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		$ 0
Income tax (expense) benefit	$ 21
DTE Electric
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		0
Income tax (expense) benefit	8
Other Regulatory Assets (Liabilities)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax (expense) benefit	$ 16
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		(5)
Accumulated Other Comprehensive Income (Loss) | DTE Electric
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		(3)
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		(5)
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | DTE Electric
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		(3)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		5
Retained Earnings | DTE Electric
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		3
Retained Earnings | Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		5
Retained Earnings | Accounting Standards Update 2016-01 | DTE Electric
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Implementation of ASU 2016-01		$ 3

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 3,753	$ 3,236
Electric
Disaggregation of Revenue [Line Items]
Revenues	1,205
Reduction of revenue due to Tax Cuts and Jobs Act	39
Other revenue outside scope of Topic 606	5
Electric | Residential
Disaggregation of Revenue [Line Items]
Revenues	586
Electric | Commercial
Disaggregation of Revenue [Line Items]
Revenues	429
Electric | Industrial
Disaggregation of Revenue [Line Items]
Revenues	176
Electric | Other
Disaggregation of Revenue [Line Items]
Revenues	14
Gas
Disaggregation of Revenue [Line Items]
Revenues	550
Reduction of revenue due to Tax Cuts and Jobs Act	32
Other revenue outside scope of Topic 606	2
Alternative revenue programs	(3)
Gas | Other
Disaggregation of Revenue [Line Items]
Revenues	(10)
Gas | Gas sales
Disaggregation of Revenue [Line Items]
Revenues	457
Gas | End User Transportation
Disaggregation of Revenue [Line Items]
Revenues	85
Gas | Intermediate Transportation
Disaggregation of Revenue [Line Items]
Revenues	18
Gas Storage and Pipelines
Disaggregation of Revenue [Line Items]
Revenues	119
Power and Industrial Projects
Disaggregation of Revenue [Line Items]
Revenues	567
Lease revenue outside scope of Topic 606	445
Energy Trading
Disaggregation of Revenue [Line Items]
Revenues	1,498
Gain (loss) on derivative outside scope of Topic 606	$ 1,200

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Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue from External Customer [Line Items]
Allowance for doubtful accounts receivable write-offs	$ 25
DTE Electric
Revenue from External Customer [Line Items]
Allowance for doubtful accounts receivable write-offs	$ 14
Other | Power and Industrial Projects
Revenue from External Customer [Line Items]
Payment terms	30 days

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Revenue - Deferred Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Contract Liability [Roll Forward]
Beginning Balance, January 1, 2018	$ 56
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period	14
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(16)
Ending Balance, March 31, 2018	$ 54

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Revenue - Expected Recognition of Deferred Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 23
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 9
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 5
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10
Remaining performance obligation, expected timing of satisfaction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 54

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Revenue - Expected Timing of Performance Obligation Satisfaction (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 23
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 9
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 5
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10
Remaining performance obligation, expected timing of satisfaction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 54
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 159
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 238
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 8
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 168
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 128
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 103
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Remaining performance obligation, expected timing of satisfaction	1 year
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 351
Remaining performance obligation, expected timing of satisfaction
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Remaining performance obligation, expected timing of satisfaction
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,147
Fixed-price Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | DTE Electric
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14

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Regulatory Matters (Details Textuals) $ in Millions	Apr. 18, 2018 USD ($)	Mar. 28, 2018 USD ($)	Nov. 22, 2017 USD ($)	Nov. 01, 2017 USD ($)	Apr. 19, 2017 USD ($)	Mar. 31, 2018 USD ($)	Jul. 31, 2017 USD ($) certificate MW
DTE Electric | MPSC
Public Utilities, General Disclosures [Line Items]
Amount of power associated with natural gas fueled combined cycle generation facility requesting to build | MW							1,100
Number of certificates of necessity requested to be issued | certificate							3
Estimated capital costs							$ 989.0
DTE Electric | MPSC | Electric Rate Case Filing 2017
Public Utilities, General Disclosures [Line Items]
Requested rate increase				$ 125.0	$ 231.0
Return on equity percent					10.10%
Return on equity requested percent					10.50%
DTE Electric | MPSC | Electric Rate Case Filing 2017 | Refundable self-implemented rates
Public Utilities, General Disclosures [Line Items]
Regulatory liabilities						$ 25.0
DTE Gas
Public Utilities, General Disclosures [Line Items]
Reduction of revenue due to Tax Cuts and Jobs Act		$ 38.2
DTE Gas | MPSC | DTE Gas Rate Case Filing 2017
Public Utilities, General Disclosures [Line Items]
Requested rate increase			$ 85.1
Return on equity percent			10.10%
Return on equity requested percent			10.50%
Subsequent event | DTE Electric | MPSC | Electric Rate Case Filing 2017
Public Utilities, General Disclosures [Line Items]
Return on equity percent	10.00%
Approved rate increase	$ 65.2

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$ 361	$ 400
Less: Allocation of earnings to net restricted stock awards	1	1
Net income available to common shareholders — basic	$ 360	$ 399
Average number of common shares outstanding (in shares)	180.0	179.0
Basic Earnings per Common Share (in dollars per share)	$ 2.01	$ 2.23
Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$ 361	$ 400
Less: Allocation of earnings to net restricted stock awards	1	1
Net income available to common shareholders — diluted	$ 360	$ 399
Average number of common shares outstanding (in shares)	180.0	179.0
Diluted Earnings per Common Share (in dollars per share)	$ 2.00	$ 2.23
Antidilutive securities excluded from computation of earnings per share (in shares)	6.6	6.8

XML

Fair Value (Assets and Liabilities Recorded at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative assets
Derivative assets, gross	$ 397	$ 652
Derivative asset, netting	(255)	(498)
Derivative assets, net	142	154
Derivative liabilities
Derivative liabilities, gross	(397)	(657)
Derivative liability, netting	270	511
Derivative liabilities, net	(127)	(146)
Current derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(289)	(558)
Noncurrent derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(108)	(99)
Natural gas
Derivative assets
Derivative assets, gross	207	357
Derivative asset, netting	(118)	(256)
Derivative assets, net	89	101
Derivative liabilities
Derivative liabilities, gross	(196)	(378)
Derivative liability, netting	126	263
Derivative liabilities, net	(70)	(115)
Electricity
Derivative assets
Derivative assets, gross	183	285
Derivative asset, netting	(135)	(241)
Derivative assets, net	48	44
Derivative liabilities
Derivative liabilities, gross	(198)	(275)
Derivative liability, netting	142	246
Derivative liabilities, net	(56)	(29)
Other
Derivative assets
Derivative assets, gross	5	9
Derivative asset, netting	0	0
Derivative assets, net	5	9
Derivative liabilities
Derivative liabilities, gross	(1)	(1)
Derivative liability, netting	0	1
Derivative liabilities, net	(1)	0
Foreign currency exchange contracts
Derivative assets
Derivative assets, gross	2	1
Derivative asset, netting	(2)	(1)
Derivative assets, net	0	0
Derivative liabilities
Derivative liabilities, gross	(2)	(3)
Derivative liability, netting	2	1
Derivative liabilities, net	0	(2)
Recurring
Assets
Cash equivalents	16	19
Derivative assets
Derivative asset, netting	(255)	(498)
Derivative assets, net	142	154
Total assets	1,830	1,859
Private equity securities	5	5
Derivative liabilities
Derivative liability, netting	270	511
Derivative liabilities, net	(127)	(146)
Net Assets (Liabilities) at the end of the period	1,703	1,713
Net Assets (Liabilities) at the end of the period, netting	15	13
Recurring | DTE Electric
Assets
Cash equivalents	8	11
Derivative assets
Total assets	1,505	1,523
Private equity securities	5	5
Recurring | Current assets
Derivative assets
Derivative asset, netting	(210)	(437)
Total assets	100	122
Recurring | Current assets | DTE Electric
Derivative assets
Total assets	13	20
Recurring | Noncurrent assets
Derivative assets
Derivative asset, netting	(45)	(61)
Total assets	1,730	1,737
Private equity securities	5	5
Recurring | Noncurrent assets | DTE Electric
Derivative assets
Total assets	1,492	1,503
Private equity securities	5	5
Recurring | Current derivative liabilities
Derivative liabilities
Derivative liability, netting	220	459
Derivative liabilities, net	(69)	(99)
Recurring | Noncurrent derivative liabilities
Derivative liabilities
Derivative liability, netting	50	52
Derivative liabilities, net	(58)	(47)
Recurring | Restricted assets
Assets
Cash equivalents	8	8
Recurring | Other
Assets
Cash equivalents	8	11
Recurring | Other | DTE Electric
Assets
Cash equivalents	8	11
Recurring | Natural gas
Derivative assets
Derivative asset, netting	(118)	(256)
Derivative assets, net	89	101
Derivative liabilities
Derivative liability, netting	126	263
Derivative liabilities, net	(70)	(115)
Recurring | Electricity
Derivative assets
Derivative asset, netting	(135)	(241)
Derivative assets, net	48	44
Derivative liabilities
Derivative liability, netting	142	246
Derivative liabilities, net	(56)	(29)
Recurring | Other
Derivative assets
Derivative asset, netting	0	0
Derivative assets, net	5	9
Derivative liabilities
Derivative liability, netting	0	1
Derivative liabilities, net	(1)	0
Recurring | Foreign currency exchange contracts
Derivative assets
Derivative asset, netting	(2)	(1)
Derivative assets, net	0	0
Derivative liabilities
Derivative liability, netting	2	1
Derivative liabilities, net	0	(2)
Recurring | Derivative assets — FTRs | DTE Electric
Derivative assets
Derivative assets, net	5	9
Recurring | Cash equivalents
Assets
Nuclear decommissioning trusts	13	14
Other investments	4	4
Recurring | Cash equivalents | DTE Electric
Assets
Nuclear decommissioning trusts	13	14
Recurring | Equity securities
Assets
Nuclear decommissioning trusts	933	978
Other investments	117	118
Recurring | Equity securities | DTE Electric
Assets
Nuclear decommissioning trusts	933	978
Other investments	11	11
Recurring | Fixed income securities
Assets
Nuclear decommissioning trusts	530	495
Other investments	70	72
Recurring | Fixed income securities | DTE Electric
Assets
Nuclear decommissioning trusts	530	495
Recurring | Level 1
Assets
Cash equivalents	16	16
Derivative assets
Derivative assets, gross	49	148
Total assets	1,216	1,368
Derivative liabilities
Derivative liabilities, gross	(58)	(141)
Net Assets (Liabilities) at the end of the period	1,158	1,227
Recurring | Level 1 | DTE Electric
Assets
Cash equivalents	8	8
Derivative assets
Total assets	979	1,029
Recurring | Level 1 | Current assets
Derivative assets
Total assets	65	157
Recurring | Level 1 | Current assets | DTE Electric
Derivative assets
Total assets	8	8
Recurring | Level 1 | Noncurrent assets
Derivative assets
Total assets	1,151	1,211
Recurring | Level 1 | Noncurrent assets | DTE Electric
Derivative assets
Total assets	971	1,021
Recurring | Level 1 | Current derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(53)	(137)
Recurring | Level 1 | Noncurrent derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(5)	(4)
Recurring | Level 1 | Natural gas
Derivative assets
Derivative assets, gross	49	148
Derivative liabilities
Derivative liabilities, gross	(58)	(141)
Recurring | Level 1 | Electricity
Derivative assets
Derivative assets, gross	0	0
Derivative liabilities
Derivative liabilities, gross	0	0
Recurring | Level 1 | Other
Derivative assets
Derivative assets, gross	0	0
Derivative liabilities
Derivative liabilities, gross	0	0
Recurring | Level 1 | Foreign currency exchange contracts
Derivative assets
Derivative assets, gross	0	0
Derivative liabilities
Derivative liabilities, gross	0	0
Recurring | Level 1 | Derivative assets — FTRs | DTE Electric
Derivative assets
Derivative assets, net	0	0
Recurring | Level 1 | Cash equivalents
Assets
Nuclear decommissioning trusts	13	14
Other investments	4	4
Recurring | Level 1 | Cash equivalents | DTE Electric
Assets
Nuclear decommissioning trusts	13	14
Recurring | Level 1 | Equity securities
Assets
Nuclear decommissioning trusts	933	978
Other investments	117	118
Recurring | Level 1 | Equity securities | DTE Electric
Assets
Nuclear decommissioning trusts	933	978
Other investments	11	11
Recurring | Level 1 | Fixed income securities
Assets
Nuclear decommissioning trusts	14	18
Other investments	70	72
Recurring | Level 1 | Fixed income securities | DTE Electric
Assets
Nuclear decommissioning trusts	14	18
Recurring | Level 2
Assets
Cash equivalents	0	3
Derivative assets
Derivative assets, gross	256	356
Total assets	772	836
Derivative liabilities
Derivative liabilities, gross	(228)	(359)
Net Assets (Liabilities) at the end of the period	544	477
Recurring | Level 2 | DTE Electric
Assets
Cash equivalents	0	3
Derivative assets
Total assets	516	480
Recurring | Level 2 | Current assets
Derivative assets
Total assets	194	298
Recurring | Level 2 | Current assets | DTE Electric
Derivative assets
Total assets	0	3
Recurring | Level 2 | Noncurrent assets
Derivative assets
Total assets	578	538
Recurring | Level 2 | Noncurrent assets | DTE Electric
Derivative assets
Total assets	516	477
Recurring | Level 2 | Current derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(183)	(313)
Recurring | Level 2 | Noncurrent derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(45)	(46)
Recurring | Level 2 | Natural gas
Derivative assets
Derivative assets, gross	92	112
Derivative liabilities
Derivative liabilities, gross	(62)	(111)
Recurring | Level 2 | Electricity
Derivative assets
Derivative assets, gross	162	243
Derivative liabilities
Derivative liabilities, gross	(164)	(245)
Recurring | Level 2 | Other
Derivative assets
Derivative assets, gross	0	0
Derivative liabilities
Derivative liabilities, gross	0	0
Recurring | Level 2 | Foreign currency exchange contracts
Derivative assets
Derivative assets, gross	2	1
Derivative liabilities
Derivative liabilities, gross	(2)	(3)
Recurring | Level 2 | Derivative assets — FTRs | DTE Electric
Derivative assets
Derivative assets, net	0	0
Recurring | Level 2 | Cash equivalents
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 2 | Cash equivalents | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Recurring | Level 2 | Equity securities
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 2 | Equity securities | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 2 | Fixed income securities
Assets
Nuclear decommissioning trusts	516	477
Other investments	0	0
Recurring | Level 2 | Fixed income securities | DTE Electric
Assets
Nuclear decommissioning trusts	516	477
Recurring | Level 3
Assets
Cash equivalents	0	0
Derivative assets
Derivative assets, gross	92	148
Total assets	92	148
Derivative liabilities
Derivative liabilities, gross	(111)	(157)
Net Assets (Liabilities) at the end of the period	(19)	(9)
Recurring | Level 3 | DTE Electric
Assets
Cash equivalents	0	0
Derivative assets
Total assets	5	9
Recurring | Level 3 | Current assets
Derivative assets
Total assets	51	104
Recurring | Level 3 | Current assets | DTE Electric
Derivative assets
Total assets	5	9
Recurring | Level 3 | Noncurrent assets
Derivative assets
Total assets	41	44
Recurring | Level 3 | Noncurrent assets | DTE Electric
Derivative assets
Total assets	0	0
Recurring | Level 3 | Current derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(53)	(108)
Recurring | Level 3 | Noncurrent derivative liabilities
Derivative liabilities
Derivative liabilities, gross	(58)	(49)
Recurring | Level 3 | Natural gas
Derivative assets
Derivative assets, gross	66	97
Derivative liabilities
Derivative liabilities, gross	(76)	(126)
Recurring | Level 3 | Electricity
Derivative assets
Derivative assets, gross	21	42
Derivative liabilities
Derivative liabilities, gross	(34)	(30)
Recurring | Level 3 | Other
Derivative assets
Derivative assets, gross	5	9
Derivative liabilities
Derivative liabilities, gross	(1)	(1)
Recurring | Level 3 | Foreign currency exchange contracts
Derivative assets
Derivative assets, gross	0	0
Derivative liabilities
Derivative liabilities, gross	0	0
Recurring | Level 3 | Derivative assets — FTRs | DTE Electric
Derivative assets
Derivative assets, net	5	9
Recurring | Level 3 | Cash equivalents
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 3 | Cash equivalents | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Recurring | Level 3 | Equity securities
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 3 | Equity securities | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 3 | Fixed income securities
Assets
Nuclear decommissioning trusts	0	0
Other investments	0	0
Recurring | Level 3 | Fixed income securities | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring
Assets
Nuclear decommissioning trusts	5	5
Derivative assets
Private equity securities	5	5
Private Equity Funds | Recurring | DTE Electric
Assets
Nuclear decommissioning trusts	5	5
Derivative assets
Private equity securities	5	5
Private Equity Funds | Recurring | Level 1
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring | Level 1 | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring | Level 2
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring | Level 2 | DTE Electric
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring | Level 3
Assets
Nuclear decommissioning trusts	0	0
Private Equity Funds | Recurring | Level 3 | DTE Electric
Assets
Nuclear decommissioning trusts	$ 0	$ 0

XML

Fair Value (Reconciliation of Level 3 Assets and Liabilities at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Assets (Liabilities) as of beginning of period	$ (9)	$ (88)
Transfers into Level 3 from Level 2	0	0
Transfers from Level 3 into Level 2	(3)	0
Total gains (losses):
Included in earnings	61	44
Recorded in/Change in fair value recorded in Regulatory liabilities	0	2
Purchases, issuances, and settlements
Settlements	(68)	19
Net Assets (Liabilities) as of end of period	(19)	(23)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	(68)	32
DTE Electric
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Assets (Liabilities) as of beginning of period	9	2
Total gains (losses):
Recorded in/Change in fair value recorded in Regulatory liabilities	0	2
Purchases, issuances, and settlements
Settlements	(4)	(3)
Net Assets (Liabilities) as of end of period	5	1
The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at March 31, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position	3	0
Natural gas
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Assets (Liabilities) as of beginning of period	(29)	(96)
Transfers into Level 3 from Level 2	0	0
Transfers from Level 3 into Level 2	(3)	0
Total gains (losses):
Included in earnings	(70)	52
Recorded in/Change in fair value recorded in Regulatory liabilities	0	0
Purchases, issuances, and settlements
Settlements	92	29
Net Assets (Liabilities) as of end of period	(10)	(15)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	(58)	35
Electricity
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Assets (Liabilities) as of beginning of period	12	9
Transfers into Level 3 from Level 2	0	0
Transfers from Level 3 into Level 2	0	0
Total gains (losses):
Included in earnings	131	(9)
Recorded in/Change in fair value recorded in Regulatory liabilities	0	0
Purchases, issuances, and settlements
Settlements	(156)	(6)
Net Assets (Liabilities) as of end of period	(13)	(6)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	(10)	(3)
Other
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Assets (Liabilities) as of beginning of period	8	(1)
Transfers into Level 3 from Level 2	0	0
Transfers from Level 3 into Level 2	0	0
Total gains (losses):
Included in earnings	0	1
Recorded in/Change in fair value recorded in Regulatory liabilities	0	2
Purchases, issuances, and settlements
Settlements	(4)	(4)
Net Assets (Liabilities) as of end of period	4	(2)
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, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations	$ 0	$ 0

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Fair Value (Unobservable Inputs related to Level 3 Assets and Liabilities) (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) $ / MMBTU $ / MWh	Dec. 31, 2017 USD ($) $ / MMBTU $ / MWh
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	$ 397	$ 652
Derivative Liabilities	(397)	(657)
Recurring | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	92	148
Derivative Liabilities	(111)	(157)
Natural gas
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	207	357
Derivative Liabilities	(196)	(378)
Natural gas | Recurring | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	66	97
Derivative Liabilities	$ (76)	$ (126)
Natural gas | Minimum | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MMBTU	(1.37)	(1.10)
Natural gas | Maximum | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MMBTU	4.10	9.75
Natural gas | Weighted Average | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MMBTU	(0.08)	(0.03)
Electricity
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	$ 183	$ 285
Derivative Liabilities	(198)	(275)
Electricity | Recurring | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Derivative Assets	21	42
Derivative Liabilities	$ (34)	$ (30)
Electricity | Minimum | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MWh	(6)	(5)
Electricity | Maximum | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MWh	8	15
Electricity | Weighted Average | Discounted Cash Flow | Level 3
Unobservable Inputs Valuation Techniques [Line Items]
Forward basis price | $ / MWh	0	2

XML

Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable, excluding capital leases	$ 37	$ 38
Dividends payable	160	158
Short-term borrowings	635	621
Notes payable — Other	12	12
Long-term debt	12,289	12,288
Carrying amount | DTE Electric
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	380	238
Notes payable — Other	2	2
Long-term debt	6,018	6,017
Carrying amount | DTE Electric | Affiliates
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	142	116
Fair value | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable, excluding capital leases	0	0
Dividends payable	160	158
Short-term borrowings	0	0
Notes payable — Other	0	0
Long-term debt	1,874	1,939
Fair value | Level 1 | DTE Electric
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	0	0
Notes payable — Other	0	0
Long-term debt	0	0
Fair value | Level 1 | DTE Electric | Affiliates
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	0	0
Fair value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable, excluding capital leases	0	0
Dividends payable	0	0
Short-term borrowings	635	621
Notes payable — Other	0	0
Long-term debt	10,136	10,571
Fair value | Level 2 | DTE Electric
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	380	238
Notes payable — Other	0	0
Long-term debt	6,194	6,441
Fair value | Level 2 | DTE Electric | Affiliates
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	0	0
Fair value | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable, excluding capital leases	37	38
Dividends payable	0	0
Short-term borrowings	0	0
Notes payable — Other	12	12
Long-term debt	813	764
Fair value | Level 3 | DTE Electric
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	0	0
Notes payable — Other	2	2
Long-term debt	171	171
Fair value | Level 3 | DTE Electric | Affiliates
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term borrowings	$ 142	$ 116

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Fair Value (Fair Value of Nuclear Decommissioning Trust Fund Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	$ 1,481	$ 1,492
DTE Electric
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	1,481	1,492
DTE Electric | Nuclear decommissioning trust fund
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	1,481	1,492
DTE Electric | Nuclear decommissioning trust fund | Fermi 2
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	1,463	1,475
DTE Electric | Nuclear decommissioning trust fund | Fermi 1
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	3	3
DTE Electric | Nuclear decommissioning trust fund | Low-level radioactive waste
Schedule of Available-for-sale Securities [Line Items]
Nuclear decommissioning trust funds	$ 15	$ 14

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Fair Value (Gains and Losses and Proceeds from the Sale of Securities by the Nuclear Decommissioning Trust Funds) (Details) - DTE Electric - Nuclear decommissioning trust fund - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Realized gains	$ 23	$ 23
Realized losses	(9)	(8)
Proceeds from sale of securities	$ 336	$ 394

XML

Fair Value (Fair Value and Unrealized Gains and Losses for the Nuclear Decommissioning Trust Funds) (Details) - DTE Electric - Nuclear decommissioning trust fund - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Equity securities, fair value	$ 933	$ 978
Fixed income securities, fair value	530	495
Private equity securities, fair value	5	5
Cash equivalents, fair value	13	14
Fair Value	1,481	1,492
Equity securities, unrealized gains	302	320
Fixed income securities, unrealized gains	8	13
Private equity securities, unrealized gains	0	0
Unrealized Gains	310	333
Equity securities, unrealized losses	(38)	(32)
Fixed income securities, unrealized losses	(7)	(3)
Private equity securities, unrealized losses	0	0
Unrealized Losses	$ (45)	$ (35)

XML

Fair Value (Fair Value of Fixed Income Securities Held in Nuclear Decommissioning Trust Funds (Details) - Fixed income securities - Nuclear decommissioning trust fund $ in Millions	Mar. 31, 2018 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Due within one year	$ 25
Due after one through five years	108
Due after five through ten years	117
Due after ten years	280
Available-for-sale securities total	$ 530

XML

Fair Value (Details Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Equity securities realized loss	$ 3,000,000
Equity securities realized gain (loss)	0	$ 8,000,000
DTE Electric
Fair Value, Option, Quantitative Disclosures [Line Items]
Equity securities realized gain (loss)	0	8,000,000
Accumulated net unrealized investment gain (loss)
Fair Value, Option, Quantitative Disclosures [Line Items]
Unrealized losses on available for sale securities	0	0
Accumulated net unrealized investment gain (loss) | DTE Electric
Fair Value, Option, Quantitative Disclosures [Line Items]
Unrealized losses on available for sale securities	$ 0	$ 0

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Financial and Other Derivative Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 397	$ 652
Derivative Liabilities	(397)	(657)
Current derivative assets
Derivatives, Fair Value [Line Items]
Derivative Assets	294	540
Current derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(289)	(558)
Noncurrent derivative assets
Derivatives, Fair Value [Line Items]
Derivative Assets	103	112
Noncurrent derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(108)	(99)
Natural gas
Derivatives, Fair Value [Line Items]
Derivative Assets	207	357
Derivative Liabilities	(196)	(378)
Electricity
Derivatives, Fair Value [Line Items]
Derivative Assets	183	285
Derivative Liabilities	(198)	(275)
Other
Derivatives, Fair Value [Line Items]
Derivative Assets	5	9
Derivative Liabilities	(1)	(1)
Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	2	1
Derivative Liabilities	(2)	(3)
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	397	652
Derivative Liabilities	(397)	(657)
Derivatives not designated as hedging instruments | DTE Electric
Derivatives, Fair Value [Line Items]
Derivative Assets	5	9
Derivatives not designated as hedging instruments | Natural gas
Derivatives, Fair Value [Line Items]
Derivative Assets	207	357
Derivative Liabilities	(196)	(378)
Derivatives not designated as hedging instruments | Electricity
Derivatives, Fair Value [Line Items]
Derivative Assets	183	285
Derivative Liabilities	(198)	(275)
Derivatives not designated as hedging instruments | Other
Derivatives, Fair Value [Line Items]
Derivative Assets	5	9
Derivative Liabilities	(1)	(1)
Derivatives not designated as hedging instruments | Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	2	1
Derivative Liabilities	(2)	(3)
Derivatives not designated as hedging instruments | FTRs — Other current assets | DTE Electric
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 5	$ 9

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Financial and Other Derivative Instruments (Details Textuals) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Letters of credit that could be used to offset net derivative liabilities	$ 1,000,000	$ 4,000,000
Letters of credit received that could be used to offset net derivative assets	5,000,000	4,000,000
Cash collateral posted, net of cash collateral received	18,000,000	28,000,000
Collateral adjustment on derivative assets	7,000,000	9,000,000
Collateral adjustment on derivative liabilities	22,000,000	22,000,000
Cash collateral paid	15,000,000	18,000,000
Cash collateral received	12,000,000	$ 3,000,000
Additional collateral, aggregate fair value	513,000,000
Derivative net liability position aggregate fair value	290,000,000
Collateral already posted fair value	0
Derivative net asset position, fair value	230,000,000
Remaining amount of offsets to derivative net liability positions for hard and soft trigger provisions	$ 60,000,000

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Financial and Other Derivative Instruments (Netting Offsets of Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative assets
Derivative assets	$ 397	$ 652
Gross Amounts Offset in the Consolidated Statements of Financial Position	(255)	(498)
Derivative assets, net	142	154
Derivative liabilities
Derivative liabilities	(397)	(657)
Gross Amounts Offset in the Consolidated Statements of Financial Position	270	511
Derivative liabilities, net	(127)	(146)
Natural gas
Derivative assets
Derivative assets	207	357
Gross Amounts Offset in the Consolidated Statements of Financial Position	(118)	(256)
Derivative assets, net	89	101
Derivative liabilities
Derivative liabilities	(196)	(378)
Gross Amounts Offset in the Consolidated Statements of Financial Position	126	263
Derivative liabilities, net	(70)	(115)
Electricity
Derivative assets
Derivative assets	183	285
Gross Amounts Offset in the Consolidated Statements of Financial Position	(135)	(241)
Derivative assets, net	48	44
Derivative liabilities
Derivative liabilities	(198)	(275)
Gross Amounts Offset in the Consolidated Statements of Financial Position	142	246
Derivative liabilities, net	(56)	(29)
Other
Derivative assets
Derivative assets	5	9
Gross Amounts Offset in the Consolidated Statements of Financial Position	0	0
Derivative assets, net	5	9
Derivative liabilities
Derivative liabilities	(1)	(1)
Gross Amounts Offset in the Consolidated Statements of Financial Position	0	1
Derivative liabilities, net	(1)	0
Foreign currency exchange contracts
Derivative assets
Derivative assets	2	1
Gross Amounts Offset in the Consolidated Statements of Financial Position	(2)	(1)
Derivative assets, net	0	0
Derivative liabilities
Derivative liabilities	(2)	(3)
Gross Amounts Offset in the Consolidated Statements of Financial Position	2	1
Derivative liabilities, net	$ 0	$ (2)

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Financial and Other Derivative Instruments (Netting Offsets Reconciliation to Balance Sheet) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative Assets
Derivative assets	$ 397	$ 652
Collateral adjustment	(7)	(9)
Derivative assets, current	84	103
Derivative assets, noncurrent	58	51
Derivative Liabilities
Derivative liabilities	(397)	(657)
Collateral adjustment	22	22
Derivative liabilities, current	(69)	(99)
Derivative liabilities, noncurrent	(58)	(47)
Current derivative assets
Derivative Assets
Derivative assets	294	540
Counterparty netting	(205)	(437)
Collateral adjustment	(5)	0
Derivative assets, current	84	103
Noncurrent derivative assets
Derivative Assets
Derivative assets	103	112
Counterparty netting	(43)	(52)
Collateral adjustment	(2)	(9)
Derivative assets, noncurrent	58	51
Current derivative liabilities
Derivative Liabilities
Derivative liabilities	(289)	(558)
Counterparty netting	205	437
Collateral adjustment	15	22
Derivative liabilities, current	(69)	(99)
Noncurrent derivative liabilities
Derivative Liabilities
Derivative liabilities	(108)	(99)
Counterparty netting	43	52
Collateral adjustment	7	0
Derivative liabilities, noncurrent	$ (58)	$ (47)

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Financial and Other Derivative Instruments (Effect of Derivatives not Designated as Hedging Instruments on the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	$ 72	$ 111
Natural gas | Operating Revenues — Non-utility operations
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	(110)	57
Natural gas | Fuel, purchased power, and gas — non-utility
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	52	61
Electricity | Operating Revenues — Non-utility operations
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	129	(7)
Other | Operating Revenues — Non-utility operations
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	(1)	0
Foreign currency exchange contracts | Operating Revenues — Non-utility operations
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivatives	$ 2	$ 0

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Financial and Other Derivative Instruments (Cumulative Gross Volume of Derivative Contracts Outstanding) (Details)	3 Months Ended
	Mar. 31, 2018 CAD ($) MMBTU MWh
Natural gas (MMBtu)
Derivative [Line Items]
Commodity | MMBTU	1,858,053,782
Electricity (MWh)
Derivative [Line Items]
Commodity | MWh	38,397,695
Foreign currency exchange (Canadian dollars)
Derivative [Line Items]
Foreign currency exchange (Canadian dollars) | $	$ 103,281,830

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Short-Term Credit Arrangements and Borrowings (Details Textuals)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Short-term Debt [Line Items]
Other outstanding letters of credit	$ 856,000,000
Letter of credit
Short-term Debt [Line Items]
Other outstanding letters of credit	$ 221,000,000
DTE Electric
Short-term Debt [Line Items]
Ratio of indebtedness to net capital	0.51
Other outstanding letters of credit	$ 380,000,000
DTE Electric | Letter of credit
Short-term Debt [Line Items]
Other outstanding letters of credit	$ 0
DTE Gas
Short-term Debt [Line Items]
Ratio of indebtedness to net capital	0.46
Other outstanding letters of credit	$ 255,000,000
DTE Gas | Letter of credit
Short-term Debt [Line Items]
Other outstanding letters of credit	$ 0
DTE Energy
Short-term Debt [Line Items]
Ratio of indebtedness to net capital	0.53
Other outstanding letters of credit	$ 221,000,000
DTE Energy | Letter of credit
Short-term Debt [Line Items]
Other outstanding letters of credit	221,000,000
DTE Energy | Demand financing agreement
Short-term Debt [Line Items]
Maximum borrowing capacity, financing agreement	100,000,000
Maximum additional margin financing	50,000,000
Amount outstanding	84,000,000	$ 56,000,000
DTE Energy | Demand financing agreement plus letter of credit
Short-term Debt [Line Items]
Maximum borrowing capacity, financing agreement	125,000,000
DTE Energy | Other outstanding letters of credit | Letter of credit
Short-term Debt [Line Items]
Other outstanding letters of credit	$ 9,000,000
Maximum
Short-term Debt [Line Items]
Ratio of indebtedness to net capital	0.65

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Short-Term Credit Arrangements and Borrowings (Details)	Mar. 31, 2018 USD ($)
Availability under combined facilities
Maximum borrowing capacity	$ 2,120,000,000
Amounts outstanding	856,000,000
Net availability	1,264,000,000
DTE Electric
Availability under combined facilities
Maximum borrowing capacity	400,000,000
Amounts outstanding	380,000,000
Net availability	20,000,000
DTE Gas
Availability under combined facilities
Maximum borrowing capacity	300,000,000
Amounts outstanding	255,000,000
Net availability	45,000,000
DTE Energy
Availability under combined facilities
Maximum borrowing capacity	1,420,000,000
Amounts outstanding	221,000,000
Net availability	1,199,000,000
Letter of credit
Availability under combined facilities
Amounts outstanding	221,000,000
Letter of credit | DTE Electric
Availability under combined facilities
Amounts outstanding	0
Letter of credit | DTE Gas
Availability under combined facilities
Amounts outstanding	0
Letter of credit | DTE Energy
Availability under combined facilities
Amounts outstanding	221,000,000
Letter of credit | Unsecured letter of credit facility, expiring in February 2019
Availability under combined facilities
Maximum borrowing capacity	150,000,000
Letter of credit | Unsecured letter of credit facility, expiring in February 2019 | DTE Electric
Availability under combined facilities
Maximum borrowing capacity	0
Letter of credit | Unsecured letter of credit facility, expiring in February 2019 | DTE Gas
Availability under combined facilities
Maximum borrowing capacity	0
Letter of credit | Unsecured letter of credit facility, expiring in February 2019 | DTE Energy
Availability under combined facilities
Maximum borrowing capacity	150,000,000
Letter of credit | Unsecured letter of credit facility, expiring in September 2019
Availability under combined facilities
Maximum borrowing capacity	70,000,000
Letter of credit | Unsecured letter of credit facility, expiring in September 2019 | DTE Electric
Availability under combined facilities
Maximum borrowing capacity	0
Letter of credit | Unsecured letter of credit facility, expiring in September 2019 | DTE Gas
Availability under combined facilities
Maximum borrowing capacity	0
Letter of credit | Unsecured letter of credit facility, expiring in September 2019 | DTE Energy
Availability under combined facilities
Maximum borrowing capacity	70,000,000
Revolving credit facility | Unsecured revolving credit facility, expiring April 2022
Availability under combined facilities
Maximum borrowing capacity	1,900,000,000
Revolving credit facility | Unsecured revolving credit facility, expiring April 2022 | DTE Electric
Availability under combined facilities
Maximum borrowing capacity	400,000,000
Revolving credit facility | Unsecured revolving credit facility, expiring April 2022 | DTE Gas
Availability under combined facilities
Maximum borrowing capacity	300,000,000
Revolving credit facility | Unsecured revolving credit facility, expiring April 2022 | DTE Energy
Availability under combined facilities
Maximum borrowing capacity	1,200,000,000
Commercial paper issuances
Availability under combined facilities
Amounts outstanding	635,000,000
Commercial paper issuances | DTE Electric
Availability under combined facilities
Amounts outstanding	380,000,000
Commercial paper issuances | DTE Gas
Availability under combined facilities
Amounts outstanding	255,000,000
Commercial paper issuances | DTE Energy
Availability under combined facilities
Amounts outstanding	$ 0

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Commitments and Contingencies (Details Textuals) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) employee site facility NOV	Dec. 31, 2017 USD ($)	Jul. 31, 2009 plant
Loss Contingencies [Line Items]
Unrecorded unconditional purchase obligation	$ 3,600
Workforce subject to collective bargaining arrangements | Labor force concentration risk
Loss Contingencies [Line Items]
Number of employees | employee	5,000
Synthetic fuel
Loss Contingencies [Line Items]
Number of days after expiration of statutes of limitations	90 days
Maximum potential liability	$ 400
Reduced emissions fuel guarantees
Loss Contingencies [Line Items]
Number of days after expiration of statutes of limitations	90 days
Maximum potential liability	$ 420
NEXUS pipeline
Loss Contingencies [Line Items]
Guarantee termination, minimum threshold, period following end of primary term of capacity lease agreements	2 months
Other guarantees
Loss Contingencies [Line Items]
Maximum potential liability	$ 55
Performance surety bonds
Loss Contingencies [Line Items]
Performance bonds outstanding	$ 59
DTE Electric
Loss Contingencies [Line Items]
Number of power plants in violation | plant			5
Number of NOVs/FOVs | NOV	2
Environmental capital expenditures through prior year end		$ 2,400
Number of former Mgp sites | site	3
Accrued for remediation	$ 6	6
Number of permitted engineered coal ash storage facilities owned | facility	3
Time period to comply with coal combustion residual requirements and effluent limitations guidelines	6 years
Unrecorded unconditional purchase obligation	$ 1,900
DTE Electric | Workforce subject to collective bargaining arrangements | Labor force concentration risk
Loss Contingencies [Line Items]
Number of employees | employee	2,700
DTE Electric | Coal combustion residual rule
Loss Contingencies [Line Items]
Estimated costs associated with building new facilities	$ 283
DTE Gas
Loss Contingencies [Line Items]
Number of former Mgp sites | site	14
Accrued for remediation	$ 40	$ 41
Amortization period (in years)	10 years
DTE Gas | NEXUS pipeline
Loss Contingencies [Line Items]
Maximum potential liability	$ 82
Lease agreement term	15 years
Percentage of payment obligations due	50.00%
DTE Gas | Clean up completed and site closed
Loss Contingencies [Line Items]
Number of former Mgp sites | site	6
DTE Gas | Partial closure complete
Loss Contingencies [Line Items]
Number of former Mgp sites | site	6
Texas Eastern Transmission, LP | NEXUS pipeline
Loss Contingencies [Line Items]
Maximum potential liability	$ 11
Lease agreement term	15 years
Percentage of payment obligations due	50.00%

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Retirement Benefits and Trusteed Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 25	$ 24
Interest cost	50	54
Expected return on plan assets	(82)	(78)
Amortization of net actuarial loss	44	43
Amortization of prior service cost (credit)	0	0
Net periodic benefit cost (credit)	37	43
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	7	7
Interest cost	17	18
Expected return on plan assets	(36)	(33)
Amortization of net actuarial loss	3	3
Amortization of prior service cost (credit)	0	(3)
Net periodic benefit cost (credit)	(9)	(8)
Other Postretirement Benefits | DTE Electric
Defined Benefit Plan Disclosure [Line Items]
Service cost	5	5
Interest cost	13	14
Expected return on plan assets	(24)	(23)
Amortization of net actuarial loss	2	2
Amortization of prior service cost (credit)	0	(2)
Net periodic benefit cost (credit)	$ (4)	$ (4)

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Retirement Benefits and Trusteed Assets (Details Textuals) - USD ($)		3 Months Ended
	Mar. 07, 2018	Mar. 31, 2018	Mar. 31, 2017
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Maximum contribution amount		$ 25,000,000
Pension Benefits | DTE Electric
Defined Benefit Plan Disclosure [Line Items]
Pension cost	$ 175,000,000	30,000,000	$ 35,000,000
Maximum contribution amount		0
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Maximum contribution amount		$ 0
Qualified Plan | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			126,000,000
Qualified Plan | Pension Benefits | DTE Electric
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			$ 125,000,000

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Retirement Benefits and Trusteed Assets - VEBA Contributions (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Mar. 07, 2018	Mar. 31, 2018
Defined Contribution Plan Disclosure [Line Items]
Contribution of common stock to pension plan		$ 175
Pension Benefits
Defined Contribution Plan Disclosure [Line Items]
Shares contributed to VEBA trust (in shares)	1,751,401
Shares contributed to VEBA trust (in dollars per share)	$ 99.92
Contribution of common stock to pension plan	$ 175

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Segment and Related Information (Details Textuals) customer in Millions	Mar. 31, 2018 customer
Segment Reporting [Abstract]
Number of electric utility customers	2.2
Number of gas utility customers	1.3

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Segment and Related Information (Financial Data - Inter-segment Billing) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ (3,753)	$ (3,236)
Electric
Segment Reporting Information [Line Items]
Revenues	(1,205)
Gas
Segment Reporting Information [Line Items]
Revenues	(550)
Gas Storage and Pipelines
Segment Reporting Information [Line Items]
Revenues	(119)
Power and Industrial Projects
Segment Reporting Information [Line Items]
Revenues	(567)
Energy Trading
Segment Reporting Information [Line Items]
Revenues	(1,498)
Reconciliation and Eliminations
Segment Reporting Information [Line Items]
Revenues	186	202
Reconciliation and Eliminations | Electric
Segment Reporting Information [Line Items]
Revenues	13	12
Reconciliation and Eliminations | Gas
Segment Reporting Information [Line Items]
Revenues	2	3
Reconciliation and Eliminations | Gas Storage and Pipelines
Segment Reporting Information [Line Items]
Revenues	8	7
Reconciliation and Eliminations | Power and Industrial Projects
Segment Reporting Information [Line Items]
Revenues	155	168
Reconciliation and Eliminations | Energy Trading
Segment Reporting Information [Line Items]
Revenues	7	11
Reconciliation and Eliminations | Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ 1	$ 1

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Segment and Related Information (Financial Data - Operating Revenues including Inter-segment Revenues) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Utility operations	$ 1,740	$ 1,718
Operating Revenues — Non-utility operations	2,013	1,518
Revenues	3,753	3,236
Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Non-utility operations	(186)	(202)
Revenues	(186)	(202)
Electric
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,205
Electric | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Utility operations	1,205	1,175
Electric | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(13)	(12)
Gas
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	550
Gas | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Utility operations	550	557
Gas | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(2)	(3)
Gas Storage and Pipelines
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	119
Gas Storage and Pipelines | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Non-utility operations	119	105
Gas Storage and Pipelines | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(8)	(7)
Power and Industrial Projects
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	567
Power and Industrial Projects | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Non-utility operations	567	548
Power and Industrial Projects | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(155)	(168)
Energy Trading
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,498
Energy Trading | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Non-utility operations	1,498	1,052
Energy Trading | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(7)	(11)
Corporate and Other | Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating Revenues — Non-utility operations	0	1
Corporate and Other | Reconciliation and Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ (1)	$ (1)

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Segment and Related Information (Financial Data - Net Income (Loss) Attributable to DTE Energy by Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	$ 361	$ 400
Electric
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	140	106
Gas
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	104	107
Gas Storage and Pipelines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	62	45
Power and Industrial Projects
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	45	30
Energy Trading
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	31	96
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Income Attributable to DTE Energy Company	$ (21)	$ 16