Short-Term Credit Arrangements and Borrowings

3 Months Ended

Mar. 31, 2023

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. DTE Energy also has other facilities to support letter of credit issuance.

The unsecured revolving credit agreements require a total funded debt to capitalization ratio of no more than 0.70 to 1 for DTE Energy and 0.65 to 1 for DTE Electric and DTE Gas. In the agreements, "total funded debt" means all indebtedness of each respective company and their consolidated subsidiaries, including finance 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, 2023, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.63 to 1, 0.53 to 1, and 0.46 to 1, respectively, and were in compliance with this financial covenant.

The availability under these facilities as of March 31, 2023 is shown in the following table:


	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured revolving credit facility, expiring October 2027	$	1,500	$	800	$	300	$	2,600

Unsecured Canadian revolving credit facility, expiring May 2023	81		—		—		81
Unsecured letter of credit facility, expiring February 2025	150		—		—		150
Unsecured letter of credit facility, expiring June 2023	375		—		—		375
Unsecured letter of credit facility(a)	50		—		—		50
	2,156		800		300		3,256
Amounts outstanding at March 31, 2023
Revolver borrowings	80		—		—		80
Commercial paper issuances	50		—		—		50

Letters of credit	315		—		—		315
	445		—		—		445
Net availability at March 31, 2023	$	1,711	$	800	$	300	$	2,811

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(a)Uncommitted letter of credit facility with automatic renewal provision for each July and therefore no expiration.

In conjunction with maintaining certain exchange-traded risk management positions, DTE Energy may be required to post collateral with a clearing agent. DTE Energy has a demand financing agreement with its clearing agent, which allows the right of setoff with posted collateral. At March 31, 2023, the capacity under the facility was $200 million. The amounts outstanding under demand financing agreements were $145 million and $166 million at March 31, 2023 and December 31, 2022, respectively, and were fully offset by posted collateral.