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Fair Value (Tables)
 9 Months Ended
Sep. 30, 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:
 
September 30, 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)
$
33

 
$
3

 
$
—

 
$
—

 
$
—

 
$
36

 
$
16

 
$
3

 
$
—

 
$
—

 
$
—

 
$
19

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
973

 
—

 
—

 
—

 
—

 
973

 
978

 
—

 
—

 
—

 
—

 
978

Fixed income securities
5

 
519

 
—

 
—

 
—

 
524

 
18

 
477

 
—

 
—

 
—

 
495

Private equity securities
—

 
—

 
—

 
11

 
—

 
11

 
—

 
—

 
—

 
5

 
—

 
5

Cash equivalents
17

 
—

 
—

 
—

 
—

 
17

 
14

 
—

 
—

 
—

 
—

 
14

Other investments(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
125

 
—

 
—

 
—

 
—

 
125

 
118

 
—

 
—

 
—

 
—

 
118

Fixed income securities
69

 
—

 
—

 
—

 
—

 
69

 
72

 
—

 
—

 
—

 
—

 
72

Cash equivalents
4

 
—

 
—

 
—

 
—

 
4

 
4

 
—

 
—

 
—

 
—

 
4

Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
75

 
72

 
53

 
—

 
(139
)
 
61

 
148

 
112

 
97

 
—

 
(256
)
 
101

Electricity
—

 
190

 
44

 
—

 
(173
)
 
61

 
—

 
243

 
42

 
—

 
(241
)
 
44

Other
1

 
—

 
6

 
—

 
(1
)
 
6

 
—

 
—

 
9

 
—

 
—

 
9

Foreign currency exchange contracts
—

 
1

 
—

 
—

 
(1
)
 
—

 
—

 
1

 
—

 
—

 
(1
)
 
—

Total derivative assets
76

 
263

 
103


—

 
(314
)
 
128

 
148

 
356

 
148

 
—


(498
)
 
154

Total
$
1,302

 
$
785

 
$
103


$
11

 
$
(314
)
 
$
1,887

 
$
1,368

 
$
836

 
$
148

 
$
5


$
(498
)
 
$
1,859

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
$
(69
)
 
$
(61
)
 
$
(99
)
 
$
—

 
$
139

 
$
(90
)
 
$
(141
)
 
$
(111
)
 
$
(126
)
 
$
—

 
$
263

 
$
(115
)
Electricity
—

 
(173
)
 
(54
)
 
—

 
172

 
(55
)
 
—

 
(245
)
 
(30
)
 
—

 
246

 
(29
)
Other
(1
)
 
—

 
—

 
—

 
1

 
—

 
—

 
—

 
(1
)
 
—

 
1

 
—

Foreign currency exchange contracts
—

 
(1
)
 
—

 
—

 
1

 
—

 
—

 
(3
)
 
—

 
—

 
1

 
(2
)
Total derivative liabilities
(70
)
 
(235
)
 
(153
)
 
—

 
313

 
(145
)
 
(141
)
 
(359
)
 
(157
)
 
—

 
511

 
(146
)
Total
$
(70
)
 
$
(235
)
 
$
(153
)
 
$
—

 
$
313

 
$
(145
)
 
$
(141
)
 
$
(359
)
 
$
(157
)
 
$
—

 
$
511

 
$
(146
)
Net Assets (Liabilities) at end of period
$
1,232

 
$
550

 
$
(50
)
 
$
11

 
$
(1
)
 
$
1,742

 
$
1,227

 
$
477

 
$
(9
)
 
$
5

 
$
13

 
$
1,713

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
108

 
$
213

 
$
76

 
$
—

 
$
(264
)
 
$
133

 
$
157

 
$
298

 
$
104

 
$
—

 
$
(437
)
 
$
122

Noncurrent
1,194

 
572

 
27

 
11

 
(50
)
 
1,754

 
1,211

 
538

 
44

 
5

 
(61
)
 
1,737

Total Assets
$
1,302

 
$
785

 
$
103

 
$
11

 
$
(314
)
 
$
1,887

 
$
1,368

 
$
836

 
$
148

 
$
5

 
$
(498
)
 
$
1,859

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(62
)
 
$
(194
)
 
$
(86
)
 
$
—

 
$
263

 
$
(79
)
 
$
(137
)
 
$
(313
)
 
$
(108
)
 
$
—

 
$
459

 
$
(99
)
Noncurrent
(8
)
 
(41
)
 
(67
)
 
—

 
50

 
(66
)
 
(4
)
 
(46
)
 
(49
)
 
—

 
52

 
(47
)
Total Liabilities
$
(70
)
 
$
(235
)
 
$
(153
)
 
$
—

 
$
313

 
$
(145
)
 
$
(141
)
 
$
(359
)
 
$
(157
)
 
$
—

 
$
511

 
$
(146
)
Net Assets (Liabilities) at end of period
$
1,232

 
$
550

 
$
(50
)
 
$
11

 
$
(1
)
 
$
1,742

 
$
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 September 30, 2018, the $36 million consisted of $21 million, $4 million, and $11 million of cash equivalents included in Cash and Cash equivalents, Restricted cash, and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2017, the $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:
 
September 30, 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

 
$
3

 
$
—

 
$
—

 
$
11

 
$
8

 
$
3

 
$
—

 
$
—

 
$
11

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
973

 
—

 
—

 
—

 
973

 
978

 
—

 
—

 
—

 
978

Fixed income securities
5

 
519

 
—

 
—

 
524

 
18

 
477

 
—

 
—

 
495

Private equity securities
—

 
—

 


 
11

 
11

 
—

 
—

 
—

 
5

 
5

Cash equivalents
17

 
—

 
—

 
—

 
17

 
14

 
—

 
—

 
—

 
14

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
12

 
—

 
—

 
—

 
12

 
11

 
—

 
—

 
—

 
11

Derivative assets — FTRs
—

 
—

 
6

 
—

 
6

 
—

 
—

 
9

 
—

 
9

Total
$
1,015

 
$
522

 
$
6

 
$
11

 
$
1,554

 
$
1,029

 
$
480

 
$
9

 
$
5

 
$
1,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
8

 
$
3

 
$
6

 
$
—

 
$
17

 
$
8

 
$
3

 
$
9

 
$
—

 
$
20

Noncurrent
1,007

 
519

 
—

 
11

 
1,537

 
1,021

 
477

 
—

 
5

 
1,503

Total Assets
$
1,015

 
$
522

 
$
6

 
$
11

 
$
1,554

 
$
1,029

 
$
480

 
$
9

 
$
5

 
$
1,523

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
At September 30, 2018, the $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2017, the $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.
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 September 30, 2018
 
Three Months Ended September 30, 2017
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of June 30
$
(25
)
 
$
(13
)
 
$
15

 
$
(23
)
 
$
(17
)
 
$
6

 
$
5

 
$
(6
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(30
)
 
21

 
—

 
(9
)
 
(8
)
 
33

 
1

 
26

Recorded in Regulatory liabilities
—

 
—

 
(8
)
 
(8
)
 
—

 
—

 
2

 
2

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
9

 
(18
)
 
(1
)
 
(10
)
 
23

 
(32
)
 
(6
)
 
(15
)
Net Assets (Liabilities) as of September 30
$
(46
)
 
$
(10
)
 
$
6

 
$
(50
)
 
$
(2
)
 
$
7

 
$
2

 
$
7

The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 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
$
(31
)
 
$
10

 
$
(1
)
 
$
(22
)
 
$
(8
)
 
$
18

 
$
1

 
$
11

 
Nine Months Ended September 30, 2018
 
Nine Months Ended September 30, 2017
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
(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
(128
)
 
25

 
1

 
(102
)
 
38

 
45

 
1

 
84

Recorded in Regulatory liabilities
—

 
—

 
6

 
6

 
—

 
—

 
15

 
15

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
114

 
(47
)
 
(9
)
 
58

 
56

 
(47
)
 
(13
)
 
(4
)
Net Assets (Liabilities) as of September 30
$
(46
)
 
$
(10
)
 
$
6

 
$
(50
)
 
$
(2
)
 
$
7

 
$
2

 
$
7

The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 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
$
(109
)
 
$
4

 
$
(3
)
 
$
(108
)
 
$
8

 
$
35

 
$
—

 
$
43

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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Net Assets as of beginning of period
$
15

 
$
8

 
$
9

 
$
2

Change in fair value recorded in Regulatory liabilities
(8
)
 
2

 
6

 
15

Purchases, issuances, and settlements
 
 
 
 
 
 
 
Settlements
(1
)
 
(6
)
 
(9
)
 
(13
)
Net Assets as of September 30
$
6

 
$
4

 
$
6

 
$
4

The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at September 30, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
(2
)
 
$
1

 
$
6

 
$
4
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:
 
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
53

 
$
(99
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.81
)
—
 
$
5.99
/MMBtu
 
$
(0.12
)/MMBtu
Electricity
 
$
44

 
$
(54
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(6
)
—
 
$
9
/MWh
 
$
1
/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:
 
September 30, 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
$
161

 
$
161

 
$
—

 
$
—

 
$
158

 
$
158

 
$
—

 
$
—

Short-term borrowings
$
77

 
$
—

 
$
77

 
$
—

 
$
621

 
$
—

 
$
621

 
$
—

Notes payable — Other(b), excluding capital leases
$
11

 
$
—

 
$
—

 
$
11

 
$
12

 
$
—

 
$
—

 
$
12

Long-term debt(c)
$
13,621

 
$
1,840

 
$
11,094

 
$
930

 
$
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:
 
September 30, 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
$
143

 
$
—

 
$
—

 
$
143

 
$
116

 
$
—

 
$
—

 
$
116

Short-term borrowings — other
$
51

 
$
—

 
$
51

 
$
—

 
$
238

 
$
—

 
$
238

 
$
—

Notes payable — Other(a), excluding capital leases
$
2

 
$
—

 
$
—

 
$
2

 
$
2

 
$
—

 
$
—

 
$
2

Long-term debt(b)
$
6,537

 
$
—

 
$
6,715

 
$
—

 
$
6,017

 
$
—

 
$
6,441

 
$
171

_______________________________________
(a)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)
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:
 
September 30, 2018
 
December 31, 2017
 
(In millions)
Fermi 2
$
1,507

 
$
1,475

Fermi 1
3

 
3

Low-level radioactive waste
15

 
14


$
1,525

 
$
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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Realized gains
$
10

 
$
14

 
$
52

 
$
63

Realized losses
$
(7
)
 
$
(7
)
 
$
(22
)
 
$
(23
)
Proceeds from sale of securities
$
194

 
$
246

 
$
810

 
$
951
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:
 
September 30, 2018
 
December 31, 2017
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
973

 
$
337

 
$
(45
)
 
$
978

 
$
320

 
$
(32
)
Fixed income securities
524

 
5

 
(10
)
 
495

 
13

 
(3
)
Private equity securities
11

 
—

 
—

 
5

 
—

 
—

Cash equivalents
17

 
—

 
—

 
14

 
—

 
—

 
$
1,525

 
$
342

 
$
(55
)
 
$
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:
 
September 30, 2018
 
(In millions)
Due within one year
$
27

Due after one through five years
99

Due after five through ten years
118

Due after ten years
280

 
$
524