Short-Term Credit Arrangements and Borrowings

3 Months Ended

Mar. 31, 2015

Short-term Debt [Abstract]

Short-Term Credit Arrangements and Borrowings

SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy and its wholly owned subsidiaries, 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 facilities are available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance.

The agreements require the Registrants and DTE Gas to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. At March 31, 2015, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric and DTE Gas were 0.50 to 1, 0.52 to 1 and 0.47 to 1, respectively, and are in compliance with this financial covenant. The availability under the facilities in place at March 31, 2015 is shown in the following table:

	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured letter of credit facility, expiring in February 2017	$	100	$	—	$	—	$	100
Unsecured letter of credit facility, expiring in August 2015	125		—		—		125
Unsecured revolving credit facility, expiring April 2018	1,200		300		300		1,800
	1,425		300		300		2,025
Amounts outstanding at March 31, 2015:
Letters of credit	255		—		—		255
	255		—		—		255
Net availability at March 31, 2015	$	1,170	$	300	$	300	$	1,770

In February 2015, DTE Energy amended its $100 million letter of credit facility. The facility's maturity date was amended from February 2015 to February 2017.

In April 2015, DTE Energy, DTE Electric and DTE Gas, entered into third amended and restated five-year unsecured revolving credit agreements. The agreements' expiration was amended from April 2018 to April 2020. As part of this amendment, DTE Electric increased its $300 million unsecured revolving credit facility to $400 million.

DTE Energy has other outstanding letters of credit which are not included in the above described facilities totaling approximately $35 million which are used for various corporate purposes.

In conjunction with maintaining certain exchange traded risk management positions, DTE Energy may be required to post cash 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. At March 31, 2015, a $50 million letter of credit was in place, raising the capacity under this facility to $150 million. The $50 million letter of credit is included in the table above. The amount outstanding under this agreement was $74 million and $37 million at March 31, 2015 and December 31, 2014, respectively.