XML 48 R27.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2017
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:
 
June 30, 2017
 
December 31, 2016
 
Level
1
 
Level
2
 
Level
3
 
Netting(a)
 
Net Balance
 
Level
1
 
Level
2
 
Level
3
 
Netting(a)
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents(b)
$
15

 
$
3

 
$
—

 
$
—

 
$
18

 
$
14

 
$
3

 
$
—

 
$
—

 
$
17

Nuclear decommissioning trusts(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
911

 
—

 
—

 
—

 
911

 
887

 
—

 
—

 
—

 
887

Fixed income securities
9

 
470

 
—

 
—

 
479

 
11

 
414

 
—

 
—

 
425

Cash equivalents
2

 
—

 
—

 
—

 
2

 
8

 
—

 
—

 
—

 
8

Other investments(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
114

 
—

 
—

 
—

 
114

 
104

 
—

 
—

 
—

 
104

Fixed income securities
65

 
—

 
—

 
—

 
65

 
61

 
—

 
—

 
—

 
61

Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
74

 
96

 
56

 
(155
)
 
71

 
216

 
79

 
53

 
(306
)
 
42

Electricity
—

 
206

 
60

 
(207
)
 
59

 
—

 
154

 
39

 
(157
)
 
36

Other
—

 
—

 
8

 
—

 
8

 
—

 
—

 
2

 
—

 
2

Foreign currency exchange contracts
—

 
3

 
—

 
(2
)
 
1

 
—

 
6

 
—

 
(5
)
 
1

Total derivative assets
74

 
305

 
124


(364
)
 
139

 
216

 
239

 
94

 
(468
)
 
81

Total
$
1,190

 
$
778

 
$
124


$
(364
)
 
$
1,728

 
$
1,301

 
$
656

 
$
94

 
$
(468
)
 
$
1,583

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
$
(74
)
 
$
(69
)
 
$
(73
)
 
$
156

 
$
(60
)
 
$
(226
)
 
$
(86
)
 
$
(149
)
 
$
321

 
$
(140
)
Electricity
—

 
(214
)
 
(54
)
 
227

 
(41
)
 
—

 
(159
)
 
(30
)
 
163

 
(26
)
Other
—

 
—

 
(3
)
 
3

 
—

 
—

 
—

 
(3
)
 
2

 
(1
)
Foreign currency exchange contracts
—

 
(2
)
 
—

 
1

 
(1
)
 
—

 
(3
)
 
—

 
3

 
—

Total derivative liabilities
(74
)
 
(285
)
 
(130
)
 
387

 
(102
)
 
(226
)
 
(248
)
 
(182
)
 
489

 
(167
)
Total
$
(74
)
 
$
(285
)
 
$
(130
)
 
$
387

 
$
(102
)
 
$
(226
)
 
$
(248
)
 
$
(182
)
 
$
489

 
$
(167
)
Net Assets (Liabilities) at end of period
$
1,116

 
$
493

 
$
(6
)
 
$
23

 
$
1,626

 
$
1,075

 
$
408

 
$
(88
)
 
$
21

 
$
1,416

Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
74

 
$
225

 
$
74

 
$
(274
)
 
$
99

 
$
205

 
$
199

 
$
60

 
$
(400
)
 
$
64

Noncurrent
1,116

 
553

 
50

 
(90
)
 
1,629

 
1,096

 
457

 
34

 
(68
)
 
1,519

Total Assets
$
1,190

 
$
778

 
$
124

 
$
(364
)
 
$
1,728

 
$
1,301

 
$
656

 
$
94

 
$
(468
)
 
$
1,583

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(61
)
 
$
(215
)
 
$
(58
)
 
$
295

 
$
(39
)
 
$
(203
)
 
$
(211
)
 
$
(79
)
 
$
424

 
$
(69
)
Noncurrent
(13
)
 
(70
)
 
(72
)
 
92

 
(63
)
 
(23
)
 
(37
)
 
(103
)
 
65

 
(98
)
Total Liabilities
$
(74
)
 
$
(285
)
 
$
(130
)
 
$
387

 
$
(102
)
 
$
(226
)
 
$
(248
)
 
$
(182
)
 
$
489

 
$
(167
)
Net Assets (Liabilities) at end of period
$
1,116

 
$
493

 
$
(6
)
 
$
23

 
$
1,626

 
$
1,075

 
$
408

 
$
(88
)
 
$
21

 
$
1,416


_______________________________________
(a)
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.
(b)
At June 30, 2017, available-for-sale securities of $18 million, included $7 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, 2016, available-for-sale securities of $17 million, included $7 million and $10 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(c)
At June 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $15 million. These commitments will be funded by existing nuclear decommissioning trust funds.
(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:
 
June 30, 2017
 
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
 
Net Balance
 
Level 1
 
Level 2
 
Level 3
 
Net Balance
 
(In millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents(a)
$
8

 
$
3

 
$
—

 
$
11

 
$
8

 
$
3

 
$
—

 
$
11

Nuclear decommissioning trusts(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
911

 
—

 
—

 
911

 
887

 
—

 
—

 
887

Fixed income securities
9

 
470

 
—

 
479

 
11

 
414

 
—

 
425

Cash equivalents
2

 
—

 
—

 
2

 
8

 
—

 
—

 
8

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
9

 
—

 
—

 
9

 
9

 
—

 
—

 
9

Derivative assets — FTRs
—

 
—

 
8

 
8

 
—

 
—

 
2

 
2

Total
$
939

 
$
473

 
$
8

 
$
1,420

 
$
923

 
$
417

 
$
2

 
$
1,342

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
8

 
$
3

 
$
8

 
$
19

 
$
8

 
$
3

 
$
2

 
$
13

Noncurrent
931

 
470

 
—

 
1,401

 
915

 
414

 
—

 
1,329

Total Assets
$
939

 
$
473

 
$
8

 
$
1,420

 
$
923

 
$
417

 
$
2

 
$
1,342

_______________________________________
(a)
At June 30, 2017 and December 31, 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, respectively.
(b)
At June 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $15 million. These commitments will be funded by existing nuclear decommissioning trust funds.
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:
 
Three Months Ended June 30, 2017
 
Three Months Ended June 30, 2016
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Liabilities as of March 31
$
(15
)
 
$
(6
)
 
$
(2
)
 
$
(23
)
 
$
(34
)
 
$
(16
)
 
$
(7
)
 
$
(57
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(6
)
 
21

 
—

 
15

 
(36
)
 
12

 
2

 
(22
)
Recorded in Regulatory liabilities
—

 
—

 
11

 
11

 
—

 
—

 
6

 
6

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Settlements
4

 
(9
)
 
(4
)
 
(9
)
 
8

 
(3
)
 
(2
)
 
3

Net Assets (Liabilities) as of June 30
$
(17
)
 
$
6

 
$
5

 
$
(6
)
 
$
(62
)
 
$
(6
)
 
$
(1
)
 
$
(69
)
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 June 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(20
)
 
$
20

 
$
—

 
$
—

 
$
(41
)
 
$
(4
)
 
$
2

 
$
(43
)
 
Six Months Ended June 30, 2017
 
Six Months Ended June 30, 2016
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
(96
)
 
$
9

 
$
(1
)
 
$
(88
)
 
$
(5
)
 
$
6

 
$
(5
)
 
$
(4
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
(1
)
Total gains (losses)
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Included in earnings
46

 
11

 
1

 
58

 
(56
)
 
(46
)
 
1

 
(101
)
Recorded in Regulatory liabilities
—

 
—

 
13

 
13

 
—

 
—

 
4

 
4

Purchases, issuances, and settlements
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Issuances
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Settlements
33

 
(14
)
 
(8
)
 
11

 
—

 
33

 
(1
)
 
32

Net Assets (Liabilities) as of June 30
$
(17
)
 
$
6

 
$
5

 
$
(6
)
 
$
(62
)
 
$
(6
)
 
$
(1
)
 
$
(69
)
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 June 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
16

 
$
17

 
$
(1
)
 
$
32

 
$
(113
)
 
$
(7
)
 
$
1

 
$
(119
)
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:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Net Assets as of beginning of period
$
1

 
$
1

 
$
2

 
$
3

Change in fair value recorded in Regulatory liabilities
11

 
6

 
13

 
4

Purchases, issuances, and settlements
 
 
 
 
 
 
 
Settlements
(4
)
 
(3
)
 
(7
)
 
(3
)
Net Assets as of June 30
$
8

 
$
4

 
$
8

 
$
4

The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at June 30, 2017 and 2016 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
8

 
$
4

 
$
8

 
$
4
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:
 
 
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
56

 
$
(73
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.30
)
—
 
$
6.35
/MMBtu
 
$
(0.08
)/MMBtu
Electricity
 
$
60

 
$
(54
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(4
)
—
 
$
8
/MWh
 
$
1
/MWh
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
53

 
$
(149
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.00
)
—
 
$
7.90
/MMBtu
 
$
(0.05
)/MMBtu
Electricity
 
$
39

 
$
(30
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(6
)
—
 
$
12
/MWh
 
$
1
/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:
 
June 30, 2017
 
December 31, 2016
 
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

 
$
36

 
$
—

 
$
—

 
$
36

Dividends payable
$
296

 
$
296

 
$
—

 
$
—

 
$
148

 
$
148

 
$
—

 
$
—

Short-term borrowings
$
420

 
$
—

 
$
420

 
$
—

 
$
499

 
$
—

 
$
499

 
$
—

Notes payable — Other(a)
$
17

 
$
—

 
$
—

 
$
17

 
$
17

 
$
—

 
$
—

 
$
17

Long-term debt(b)
$
11,762

 
$
1,553

 
$
10,241

 
$
830

 
$
11,270

 
$
1,465

 
$
9,384

 
$
1,056

_______________________________________
(a)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
(b)
Includes debt due within one year, unamortized debt discounts, premiums, and issuance costs. Excludes Capital lease obligations.
The following table presents the carrying amount and fair value of financial instruments for DTE Electric:
 
June 30, 2017
 
December 31, 2016
 
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

Short-term borrowings — affiliates
$
78

 
$
—

 
$
—

 
$
78

 
$
117

 
$
—

 
$
—

 
$
117

Short-term borrowings — other
$
326

 
$
—

 
$
326

 
$
—

 
$
62

 
$
—

 
$
62

 
$
—

Notes payable — Other(a)
$
5

 
$
—

 
$
—

 
$
5

 
$
6

 
$
—

 
$
—

 
$
6

Long-term debt(b)
$
5,880

 
$
—

 
$
6,214

 
$
160

 
$
5,878

 
$
—

 
$
6,026

 
$
264

_______________________________________
(a)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)
Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.
Fair Value of Nuclear Decommissioning Trust Fund Assets
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
 
June 30, 2017
 
December 31, 2016
 
(In millions)
Fermi 2
$
1,377

 
$
1,291

Fermi 1
3

 
3

Low-level radioactive waste
12

 
26

Total
$
1,392

 
$
1,320
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 June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Realized gains
$
26

 
$
37

 
$
49

 
$
46

Realized losses
$
(8
)
 
$
(25
)
 
$
(16
)
 
$
(40
)
Proceeds from sale of securities
$
311

 
$
481

 
$
705

 
$
741
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:
 
June 30, 2017
 
December 31, 2016
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
911

 
$
257

 
$
(38
)
 
$
887

 
$
222

 
$
(46
)
Fixed income securities
479

 
14

 
(3
)
 
425

 
11

 
(5
)
Cash equivalents
2

 
—

 
—

 
8

 
—

 
—

 
$
1,392

 
$
271

 
$
(41
)
 
$
1,320

 
$
233

 
$
(51
)
Fair Value of the Fixed Income Securities Held in Nuclear Decommissioning Trust Funds
The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:
 
June 30, 2017
 
(In millions)
Due within one year
$
15

Due after one through five years
99

Due after five through ten years
103

Due after ten years
262

 
$
479