Retirement Benefits and Trusteed Assets

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Retirement Benefits and Trusteed Assets

RETIREMENT BENEFITS AND TRUSTEED ASSETS

DTE Energy's subsidiary, DTE Energy Corporate Services, LLC, sponsors defined benefit pension plans and other postretirement benefit plans covering certain employees of the Registrants. Participants of all plans are solely DTE Energy and affiliate participants.

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
	2023		2022		2023		2022
	(In millions)
Three Months Ended September 30,
Service cost	$	15	$	25	$	4	$	6
Interest cost	54		41		17		12
Expected return on plan assets	(89)		(87)		(28)		(32)
Amortization of:
Net actuarial loss	2		29		2		1
Prior service credit	(1)		—		(4)		(4)
Net periodic benefit cost (credit)	$	(19)	$	8	$	(9)	$	(17)

	Pension Benefits				Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Nine Months Ended September 30,
Service cost	$	43	$	72	$	13	$	20
Interest cost	161		124		49		36
Expected return on plan assets	(264)		(260)		(83)		(95)
Amortization of:
Net actuarial loss	5		86		7		3
Prior service credit	(2)		—		(14)		(14)
Settlements	7		—		—		—
Net periodic benefit cost (credit)	$	(50)	$	22	$	(28)	$	(50)

DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified 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 that 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.

As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position. For service costs recognized in earnings, these costs have historically been presented in Operation and maintenance in the Registrants' Consolidated Statements of Operations. For non-service costs recognized in earnings, these costs have historically been presented in Other (Income) and Deductions — Non-operating retirement benefits, net in DTE Energy's Consolidated Statements of Operations and Operation and maintenance in DTE Electric's Consolidated Statements of Operations.

In November 2022, DTE Electric received a rate order from the MPSC approving the deferral of qualified pension plan service and non-service costs that were previously being recognized in earnings. Therefore, the Registrants are recording these costs as Regulatory assets beginning in December 2022.

DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in regulatory assets, operation and maintenance expense, other income and deductions, and capital expenditures was a credit of $12 million and $28 million for the three and nine months ended September 30, 2023, respectively, and a cost of $9 million and $27 million for the three and nine months ended September 30, 2022, respectively. These amounts may include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Service cost	$	3	$	5	$	10	$	15
Interest cost	12		10		37		28
Expected return on plan assets	(18)		(22)		(55)		(64)
Amortization of:
Net actuarial loss	—		2		—		4
Prior service credit	(3)		(4)		(10)		(10)
Net periodic benefit credit	$	(6)	$	(9)	$	(18)	$	(27)

Pension and Other Postretirement Contributions

No contributions are currently expected for DTE Energy's qualified pension plans or postretirement benefit plans in 2023. Plans may be updated at the discretion of management and depending on economic and financial market conditions. DTE Energy anticipates a transfer of up to $50 million of qualified pension plan funds from DTE Gas to DTE Electric during the fourth quarter 2023 in exchange for cash consideration.