XML 46 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value (Tables)
 9 Months Ended
Sep. 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:
 
September 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)
$
16

 
$
3

 
$
—

 
$
—

 
$
19

 
$
14

 
$
3

 
$
—

 
$
—

 
$
17

Nuclear decommissioning trusts(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
949

 
—

 
—

 
—

 
949

 
887

 
—

 
—

 
—

 
887

Fixed income securities
10

 
474

 
—

 
—

 
484

 
11

 
414

 
—

 
—

 
425

Cash equivalents
6

 
—

 
—

 
—

 
6

 
8

 
—

 
—

 
—

 
8

Other investments(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
120

 
—

 
—

 
—

 
120

 
104

 
—

 
—

 
—

 
104

Fixed income securities
63

 
—

 
—

 
—

 
63

 
58

 
—

 
—

 
—

 
58

Cash equivalents
4

 
—

 
—

 
—

 
4

 
3

 
—

 
—

 
—

 
3

Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
64

 
104

 
62

 
(151
)
 
79

 
216

 
79

 
53

 
(306
)
 
42

Electricity
—

 
155

 
47

 
(148
)
 
54

 
—

 
154

 
39

 
(157
)
 
36

Other
—

 
—

 
4

 
—

 
4

 
—

 
—

 
2

 
—

 
2

Foreign currency exchange contracts
—

 
3

 
—

 
(2
)
 
1

 
—

 
6

 
—

 
(5
)
 
1

Total derivative assets
64

 
262

 
113


(301
)
 
138

 
216

 
239

 
94

 
(468
)
 
81

Total
$
1,232

 
$
739

 
$
113


$
(301
)
 
$
1,783

 
$
1,301

 
$
656

 
$
94

 
$
(468
)
 
$
1,583

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
$
(64
)
 
$
(76
)
 
$
(64
)
 
$
151

 
$
(53
)
 
$
(226
)
 
$
(86
)
 
$
(149
)
 
$
321

 
$
(140
)
Electricity
—

 
(159
)
 
(40
)
 
164

 
(35
)
 
—

 
(159
)
 
(30
)
 
163

 
(26
)
Other
—

 
—

 
(2
)
 
2

 
—

 
—

 
—

 
(3
)
 
2

 
(1
)
Foreign currency exchange contracts
—

 
(4
)
 
—

 
2

 
(2
)
 
—

 
(3
)
 
—

 
3

 
—

Total derivative liabilities
(64
)
 
(239
)
 
(106
)
 
319

 
(90
)
 
(226
)
 
(248
)
 
(182
)
 
489

 
(167
)
Total
$
(64
)
 
$
(239
)
 
$
(106
)
 
$
319

 
$
(90
)
 
$
(226
)
 
$
(248
)
 
$
(182
)
 
$
489

 
$
(167
)
Net Assets (Liabilities) at end of period
$
1,168

 
$
500

 
$
7

 
$
18

 
$
1,693

 
$
1,075

 
$
408

 
$
(88
)
 
$
21

 
$
1,416

Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
65

 
$
194

 
$
61

 
$
(225
)
 
$
95

 
$
205

 
$
199

 
$
60

 
$
(400
)
 
$
64

Noncurrent
1,167

 
545

 
52

 
(76
)
 
1,688

 
1,096

 
457

 
34

 
(68
)
 
1,519

Total Assets
$
1,232

 
$
739

 
$
113

 
$
(301
)
 
$
1,783

 
$
1,301

 
$
656

 
$
94

 
$
(468
)
 
$
1,583

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(60
)
 
$
(183
)
 
$
(54
)
 
$
255

 
$
(42
)
 
$
(203
)
 
$
(211
)
 
$
(79
)
 
$
424

 
$
(69
)
Noncurrent
(4
)
 
(56
)
 
(52
)
 
64

 
(48
)
 
(23
)
 
(37
)
 
(103
)
 
65

 
(98
)
Total Liabilities
$
(64
)
 
$
(239
)
 
$
(106
)
 
$
319

 
$
(90
)
 
$
(226
)
 
$
(248
)
 
$
(182
)
 
$
489

 
$
(167
)
Net Assets (Liabilities) at end of period
$
1,168

 
$
500

 
$
7

 
$
18

 
$
1,693

 
$
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 September 30, 2017, available-for-sale securities of $19 million, included $8 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 September 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $25 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:
 
September 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
949

 
—

 
—

 
949

 
887

 
—

 
—

 
887

Fixed income securities
10

 
474

 
—

 
484

 
11

 
414

 
—

 
425

Cash equivalents
6

 
—

 
—

 
6

 
8

 
—

 
—

 
8

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
10

 
—

 
—

 
10

 
9

 
—

 
—

 
9

Derivative assets — FTRs
—

 
—

 
4

 
4

 
—

 
—

 
2

 
2

Total
$
983

 
$
477

 
$
4

 
$
1,464

 
$
923

 
$
417

 
$
2

 
$
1,342

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
8

 
$
3

 
$
4

 
$
15

 
$
8

 
$
3

 
$
2

 
$
13

Noncurrent
975

 
474

 
—

 
1,449

 
915

 
414

 
—

 
1,329

Total Assets
$
983

 
$
477

 
$
4

 
$
1,464

 
$
923

 
$
417

 
$
2

 
$
1,342

_______________________________________
(a)
At September 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.
(b)
At September 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $25 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 September 30, 2017
 
Three Months Ended September 30, 2016
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of June 30
$
(17
)
 
$
6

 
$
5

 
$
(6
)
 
$
(62
)
 
$
(6
)
 
$
(1
)
 
$
(69
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
(1
)
Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(8
)
 
33

 
1

 
26

 
(65
)
 
24

 
—

 
(41
)
Recorded in Regulatory liabilities
—

 
—

 
2

 
2

 
—

 
—

 
2

 
2

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
23

 
(32
)
 
(6
)
 
(15
)
 
28

 
(24
)
 
(2
)
 
2

Net Assets (Liabilities) as of September 30
$
(2
)
 
$
7

 
$
2

 
$
7

 
$
(100
)
 
$
(6
)
 
$
(1
)
 
$
(107
)
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, 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
$
(8
)
 
$
18

 
$
1

 
$
11

 
$
(50
)
 
$
6

 
$
—

 
$
(44
)
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 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
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gains (losses)
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Included in earnings
38

 
45

 
1

 
84

 
(123
)
 
(22
)
 
1

 
(144
)
Recorded in Regulatory liabilities
—

 
—

 
15

 
15

 
—

 
—

 
6

 
6

Purchases, issuances, and settlements
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Issuances
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Settlements
56

 
(47
)
 
(13
)
 
(4
)
 
28

 
9

 
(3
)
 
34

Net Assets (Liabilities) as of September 30
$
(2
)
 
$
7

 
$
2

 
$
7

 
$
(100
)
 
$
(6
)
 
$
(1
)
 
$
(107
)
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, 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
$
8

 
$
35

 
$
—

 
$
43

 
$
(165
)
 
$
(1
)
 
$
2

 
$
(164
)
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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Net Assets as of beginning of period
$
8

 
$
4

 
$
2

 
$
3

Change in fair value recorded in Regulatory liabilities
2

 
2

 
15

 
6

Purchases, issuances, and settlements
 
 
 
 
 
 
 
Settlements
(6
)
 
(3
)
 
(13
)
 
(6
)
Net Assets as of September 30
$
4

 
$
3

 
$
4

 
$
3

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, 2017 and 2016 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
1

 
$
1

 
$
4

 
$
3
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:
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
62

 
$
(64
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.92
)
—
 
$
6.36
/MMBtu
 
$
(0.03
)/MMBtu
Electricity
 
$
47

 
$
(40
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(10
)
—
 
$
7
/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:
 
September 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
$
36

 
$
—

 
$
—

 
$
36

 
$
36

 
$
—

 
$
—

 
$
36

Dividends payable
$
148

 
$
148

 
$
—

 
$
—

 
$
148

 
$
148

 
$
—

 
$
—

Short-term borrowings
$
659

 
$
—

 
$
659

 
$
—

 
$
499

 
$
—

 
$
499

 
$
—

Notes payable — Other(a)
$
16

 
$
—

 
$
—

 
$
16

 
$
17

 
$
—

 
$
—

 
$
17

Long-term debt(b)
$
11,897

 
$
1,554

 
$
10,522

 
$
744

 
$
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:
 
September 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
$
66

 
$
—

 
$
—

 
$
66

 
$
117

 
$
—

 
$
—

 
$
117

Short-term borrowings — other
$
311

 
$
—

 
$
311

 
$
—

 
$
62

 
$
—

 
$
62

 
$
—

Notes payable — Other(a)
$
5

 
$
—

 
$
—

 
$
5

 
$
6

 
$
—

 
$
—

 
$
6

Long-term debt(b)
$
6,016

 
$
—

 
$
6,395

 
$
163

 
$
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:
 
September 30, 2017
 
December 31, 2016
 
(In millions)
Fermi 2
$
1,423

 
$
1,291

Fermi 1
3

 
3

Low-level radioactive waste
13

 
26

Total
$
1,439

 
$
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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Realized gains
$
14

 
$
13

 
$
63

 
$
59

Realized losses
$
(7
)
 
$
(8
)
 
$
(23
)
 
$
(48
)
Proceeds from sale of securities
$
246

 
$
394

 
$
951

 
$
1,135
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, 2017
 
December 31, 2016
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
949

 
$
287

 
$
(34
)
 
$
887

 
$
222

 
$
(46
)
Fixed income securities
484

 
14

 
(2
)
 
425

 
11

 
(5
)
Cash equivalents
6

 
—

 
—

 
8

 
—

 
—

 
$
1,439

 
$
301

 
$
(36
)
 
$
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:
 
September 30, 2017
 
(In millions)
Due within one year
$
15

Due after one through five years
100

Due after five through ten years
111

Due after ten years
258

 
$
484