SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

At March 31, 2013, DTE Energy and its wholly owned subsidiaries, DTE Electric and DTE Gas, had unsecured revolving credit agreements with a syndicate of 20 banks that could be used for general corporate borrowings, but were intended to provide liquidity support for each of the companies’ commercial paper programs. No one bank provided more than 8.5% of the commitment in any facility. Borrowings under the facilities were available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance.

In April 2013, DTE Energy and its wholly owned subsidiaries, DTE Electric and DTE Gas, entered into second amended and restated five-year unsecured revolving credit agreements with a syndicate of 19 banks. No one bank provided more than 8.7% of the commitment in any facility. The amended and restated agreements extend the expiration of the credit facilities from October 2016 to April 2018 and reduced the credit availability for DTE Gas from $400 million to $300 million and increased the credit availability for DTE Energy from $1.1 billion to $1.2 billion.

The above agreements require the Company 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 the Company and its 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 stockholders’ equity of the Company and its 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, 2013, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric and DTE Gas are 0.48 to 1, 0.53 to 1 and 0.45 to 1, respectively, and are in compliance with this financial covenant. The availability under the facilities in place at March 31, 2013 is shown in the following table:



	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured letter of credit facility, expiring in May 2013	$	50	$	—	$	—	$	50
Unsecured letter of credit facility, expiring in August 2015	125		—		—		125
Unsecured revolving credit facility, expiring October 2016	1,100		300		400		1,800
Total credit facilities at March 31, 2013	1,275		300		400		1,975
Amounts outstanding at March 31, 2013:
Letters of credit	173		—		—		173
	173		—		—		173
Net availability at March 31, 2013	$	1,102	$	300	$	400	$	1,802

The Company has other outstanding letters of credit which are not included in the above described facilities totaling approximately $39 million which are used for various corporate purposes.

In conjunction with maintaining certain exchange traded risk management positions, the Company may be required to post cash collateral with its clearing agent. The Company 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 the Company posts a letter of credit for the incremental amount. At March 31, 2013, a $40 million letter of credit was in place, raising the capacity under this facility to $140 million. The $40 million letter of credit is included in the table above. The amount outstanding under this agreement was $58 million and $65 million at March 31, 2013 and December 31, 2012, respectively.