XML 43 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2016
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 as of September 30, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
 
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)
$
14

 
$
3

 
$
—

 
$
—

 
$
—

 
$
17

 
$
13

 
$
3

 
$
—

 
$
—

 
$
—

 
$
16

Nuclear decommissioning trusts
891

 
430

 
—

 
—

 
—

 
1,321

 
759

 
473

 
—

 
4

 
—

 
1,236

Other investments (d)
165

 
—

 
—

 
—

 
—

 
165

 
149

 
—

 
—

 
—

 
—

 
149

Derivative assets:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 
Commodity Contracts:
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Natural Gas
114

 
106

 
44

 
—

 
(209
)
 
55

 
193

 
91

 
103

 
—

 
(285
)
 
102

Electricity
—

 
175

 
38

 
—

 
(169
)
 
44

 
—

 
239

 
68

 
—

 
(232
)
 
75

Other
2

 
2

 
3

 
—

 
(4
)
 
3

 
2

 
—

 
3

 
—

 
(2
)
 
3

Foreign currency exchange contracts
—

 
5

 
—

 
—

 
(5
)
 
—

 
—

 
12

 
—

 
—

 
(9
)
 
3

Total derivative assets
116

 
288

 
85


—

 
(387
)
 
102

 
195

 
342

 
174

 
—


(528
)
 
183

Total
$
1,186

 
$
721

 
$
85


$
—

 
$
(387
)
 
$
1,605

 
$
1,116

 
$
818

 
$
174

 
$
4


$
(528
)
 
$
1,584

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts:
 

 
 

 
 

 
 
 
 

 
 
 
 

 
 

 
 

 
 
 
 

 
 
Natural Gas
$
(135
)
 
$
(82
)
 
$
(144
)
 
$
—

 
$
218

 
$
(143
)
 
$
(218
)
 
$
(57
)
 
$
(108
)
 
$
—

 
$
294

 
$
(89
)
Electricity
—

 
(182
)
 
(44
)
 
—

 
185

 
(41
)
 
—

 
(243
)
 
(62
)
 
—

 
253

 
(52
)
Other
(4
)
 
(3
)
 
(4
)
 
—

 
11

 
—

 
(2
)
 
—

 
(8
)
 
—

 
8

 
(2
)
Foreign currency exchange contracts
—

 
(3
)
 
—

 
—

 
3

 
—

 
—

 
(7
)
 
—

 
—

 
7

 
—

Total derivative liabilities
(139
)
 
(270
)
 
(192
)
 
—

 
417

 
(184
)
 
(220
)
 
(307
)
 
(178
)
 
—

 
562

 
(143
)
Total
$
(139
)
 
$
(270
)
 
$
(192
)
 
$
—

 
$
417

 
$
(184
)
 
$
(220
)
 
$
(307
)
 
$
(178
)
 
$
—

 
$
562

 
$
(143
)
Net Assets (Liabilities) at the end of the period
$
1,047

 
$
451

 
$
(107
)
 
$
—

 
$
30

 
$
1,421

 
$
896

 
$
511

 
$
(4
)
 
$
4

 
$
34

 
$
1,441

Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
104

 
$
220

 
$
52

 
$
—

 
$
(303
)
 
$
73

 
$
174

 
$
284

 
$
128

 
$
—

 
$
(441
)
 
$
145

Noncurrent
1,082

 
501

 
33

 
—

 
(84
)
 
1,532

 
942

 
534

 
46

 
4

 
(87
)
 
1,439

Total Assets
$
1,186

 
$
721

 
$
85

 
$
—

 
$
(387
)
 
$
1,605

 
$
1,116

 
$
818

 
$
174

 
$
4

 
$
(528
)
 
$
1,584

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(109
)
 
$
(207
)
 
$
(92
)
 
$
—

 
$
323

 
$
(85
)
 
$
(174
)
 
$
(260
)
 
$
(87
)
 
$
—

 
$
464

 
$
(57
)
Noncurrent
(30
)
 
(63
)
 
(100
)
 
—

 
94

 
(99
)
 
(46
)
 
(47
)
 
(91
)
 
—

 
98

 
(86
)
Total Liabilities
$
(139
)
 
$
(270
)
 
$
(192
)
 
$
—

 
$
417

 
$
(184
)
 
$
(220
)
 
$
(307
)
 
$
(178
)
 
$
—

 
$
562

 
$
(143
)
Net Assets (Liabilities) at the end of the period
$
1,047

 
$
451

 
$
(107
)
 
$
—

 
$
30

 
$
1,421

 
$
896

 
$
511

 
$
(4
)
 
$
4

 
$
34

 
$
1,441

_______________________________________
(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, 2016, available-for-sale securities of $17 million included $6 million and $11 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2015, available-for-sale securities of $16 million, included $8 million and $8 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, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
 
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

 
$
5

 
$
3

 
$
—

 
$
—

 
$
8

Nuclear decommissioning trusts
891

 
430

 
—

 
—

 
1,321

 
759

 
473

 
—

 
4

 
1,236

Other investments
8

 
—

 
—

 
—

 
8

 
8

 
—

 
—

 
—

 
8

Derivative assets — FTRs
—

 
—

 
3

 
—

 
3

 
—

 
—

 
3

 
—

 
3

Total
$
907

 
$
433

 
$
3

 
$
—

 
$
1,343

 
$
772

 
$
476

 
$
3

 
$
4

 
$
1,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
8

 
$
3

 
$
3

 
$
—

 
$
14

 
$
5

 
$
3

 
$
3

 
$
—

 
$
11

Noncurrent
899

 
430

 
—

 
—

 
1,329

 
767

 
473

 
—

 
4

 
1,244

Total Assets
$
907

 
$
433

 
$
3

 
$
—

 
$
1,343

 
$
772

 
$
476

 
$
3

 
$
4

 
$
1,255

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
At September 30, 2016, available-for-sale securities of $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2015, available-for-sale securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.
Fair value reconciliation of level 3 assets and liabilities measured at fair value on a recurring basis
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy for the three and nine months ended September 30, 2016 and 2015:
 
Three Months Ended September 30, 2016
 
Three Months Ended September 30, 2015
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of June 30
$
(62
)
 
$
(6
)
 
$
(1
)
 
$
(69
)
 
$
(8
)
 
$
3

 
$
1

 
$
(4
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
(1
)
 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

Total gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(65
)
 
24

 
—

 
(41
)
 
24

 
18

 
(3
)
 
39

Recorded in Regulatory liabilities
—

 
—

 
2

 
2

 
—

 
—

 
3

 
3

Purchases, issuances, and settlements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
28

 
(24
)
 
(2
)
 
2

 
5

 
(18
)
 
(2
)
 
(15
)
Net Assets (Liabilities) as of September 30
$
(100
)
 
$
(6
)
 
$
(1
)
 
$
(107
)
 
$
21

 
$
3

 
$
(1
)
 
$
23

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, 2016 and 2015 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(50
)
 
$
6

 
$
—

 
$
(44
)
 
$
18

 
$
(3
)
 
$
(3
)
 
$
12

 
Nine Months Ended September 30, 2016
 
Nine Months Ended September 30, 2015
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
(5
)
 
$
6

 
$
(5
)
 
$
(4
)
 
$
30

 
$
(5
)
 
$
(1
)
 
$
24

Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(123
)
 
(22
)
 
1

 
(144
)
 
(11
)
 
42

 
(5
)
 
26

Recorded in Regulatory liabilities
—

 
—

 
6

 
6

 
—

 
—

 
14

 
14

Purchases, issuances, and settlements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases
—

 
1

 
—

 
1

 
—

 
2

 
—

 
2

Settlements
28

 
9

 
(3
)
 
34

 
2

 
(36
)
 
(9
)
 
(43
)
Net Assets (Liabilities) as of September 30
$
(100
)
 
$
(6
)
 
$
(1
)
 
$
(107
)
 
$
21

 
$
3

 
$
(1
)
 
$
23

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, 2016 and 2015 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(165
)
 
$
(1
)
 
$
2

 
$
(164
)
 
$
(94
)
 
$
8

 
$
(4
)
 
$
(90
)
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 for the three and nine months ended September 30, 2016 and 2015:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(In millions)
Net Assets as of beginning of period
$
4

 
$
5

 
$
3

 
$
3

Change in fair value recorded in Regulatory liabilities
2

 
3

 
6

 
14

Purchases, issuances, and settlements:
 
 
 
 
 
 
 
Settlements
(3
)
 
(3
)
 
(6
)
 
(12
)
Net Assets as of September 30
$
3

 
$
5

 
$
3

 
$
5

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, 2016 and 2015 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
1

 
$
1

 
$
3

 
$
5
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 as of September 30, 2016 and December 31, 2015:
 
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
44

 
$
(144
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(2.08
) —
 
$
5.75
/MMBtu
 
$
(0.07
)/MMBtu
Electricity
 
$
38

 
$
(44
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(10
) —
 
$
14
/MWh
 
$
1
/MWh

 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
103

 
$
(108
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.50
) —
 
$
2.77
/MMBtu
 
$
(0.19
)/MMBtu
Electricity
 
$
68

 
$
(62
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(11
) —
 
$
14
/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 as of September 30, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable, excluding capital leases
$
33

 
$
—

 
$
—

 
$
33

 
$
32

 
$
—

 
$
—

 
$
32

Dividends payable
$
138

 
$
138

 
$
—

 
$
—

 
$
131

 
$
131

 
$
—

 
$
—

Short-term borrowings
$
410

 
$
—

 
$
410

 
$
—

 
$
499

 
$
—

 
$
499

 
$
—

Notes payable (a)
$
15

 
$
—

 
$
—

 
$
15

 
$
—

 
$
—

 
$
—

 
$
—

Long-term debt, excluding capital leases
$
9,481

 
$
802

 
$
8,588

 
$
1,322

 
$
9,210

 
$
496

 
$
8,136

 
$
1,203


_______________________________________
(a)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
The following table presents the carrying amount and fair value of financial instruments for DTE Electric as of September 30, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable, excluding capital leases
$
5

 
$
—

 
$
—

 
$
5

 
$
5

 
$
—

 
$
—

 
$
5

Notes receivable — affiliates
$
64

 
$
—

 
$
—

 
$
64

 
$
—

 
$
—

 
$
—

 
$
—

Short-term borrowings — affiliates
$
112

 
$
—

 
$
—

 
$
112

 
$
75

 
$
—

 
$
—

 
$
75

Short-term borrowings — other
$
—

 
$
—

 
$
—

 
$
—

 
$
272

 
$
—

 
$
272

 
$
—

Notes payable — other (a)
$
4

 
$
—

 
$
—

 
$
4

 
$
—

 
$
—

 
$
—

 
$
—

Long-term debt, excluding capital leases
$
5,877

 
$
—

 
$
6,082

 
$
602

 
$
5,588

 
$
—

 
$
5,432

 
$
545


_______________________________________
(a)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
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, 2016
 
December 31, 2015
 
(In millions)
Fermi 2
$
1,292

 
$
1,211

Fermi 1
3

 
3

Low-level radioactive waste
26

 
22

Total
$
1,321

 
$
1,236
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,
 
2016
 
2015
 
2016
 
2015
 
(In millions)
Realized gains
$
13

 
$
8

 
$
59

 
$
30

Realized losses
$
(8
)
 
$
(10
)
 
$
(48
)
 
$
(23
)
Proceeds from sale of securities
$
394

 
$
187

 
$
1,135

 
$
627
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, 2016
 
December 31, 2015
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
872

 
$
213

 
$
(47
)
 
$
731

 
$
195

 
$
(68
)
Debt securities
439

 
25

 
(1
)
 
499

 
16

 
(4
)
Cash and cash equivalents
10

 
—

 
—

 
6

 
—

 
—

 
$
1,321

 
$
238

 
$
(48
)
 
$
1,236

 
$
211

 
$
(72
)