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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2019
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(a):
 
September 30, 2019
 
December 31, 2018
 
Level
1
 
Level
2
 
Level
3
 
Other(b)
 
Netting(c)
 
Net Balance
 
Level
1
 
Level
2
 
Level
3
 
Other(b)
 
Netting(c)
 
Net Balance
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents(d)
$
21

 
$
—

 
$
—

 
$
—

 
$
—

 
$
21

 
$
16

 
$
2

 
$
—

 
$
—

 
$
—

 
$
18

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
990

 
—

 
—

 
—

 
—

 
990

 
851

 
—

 
—

 
—

 
—

 
851

Fixed income securities
9

 
535

 
—

 
—

 
—

 
544

 
12

 
490

 
—

 
—

 
—

 
502

Private equity and other
—

 
—

 
—

 
34

 
—

 
34

 
—

 
—

 
—

 
20

 
—

 
20

Cash equivalents
9

 
—

 
—

 
—

 
—

 
9

 
5

 
—

 
—

 
—

 
—

 
5

Other investments(e)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
130

 
—

 
—

 
—

 
—

 
130

 
110

 
—

 
—

 
—

 
—

 
110

Fixed income securities
78

 
—

 
—

 
—

 
—

 
78

 
69

 
—

 
—

 
—

 
—

 
69

Cash equivalents
4

 
—

 
—

 
—

 
—

 
4

 
4

 
—

 
—

 
—

 
—

 
4

Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
109

 
90

 
54

 
—

 
(189
)
 
64

 
199

 
87

 
63

 
—

 
(277
)
 
72

Electricity
—

 
128

 
36

 
—

 
(124
)
 
40

 
—

 
247

 
56

 
—

 
(252
)
 
51

Other
5

 
—

 
5

 
—

 
(5
)
 
5

 
—

 
—

 
7

 
—

 
(1
)
 
6

Foreign currency exchange contracts
—

 
2

 
—

 
—

 
—

 
2

 
—

 
4

 
—

 
—

 
—

 
4

Total derivative assets
114

 
220

 
95


—

 
(318
)
 
111

 
199

 
338

 
126

 
—


(530
)
 
133

Total
$
1,355

 
$
755

 
$
95


$
34

 
$
(318
)
 
$
1,921

 
$
1,266

 
$
830

 
$
126

 
$
20


$
(530
)
 
$
1,712

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
$
(130
)
 
$
(72
)
 
$
(95
)
 
$
—

 
$
189

 
$
(108
)
 
$
(197
)
 
$
(71
)
 
$
(112
)
 
$
—

 
$
272

 
$
(108
)
Electricity
—

 
(127
)
 
(28
)
 
—

 
124

 
(31
)
 
—

 
(227
)
 
(58
)
 
—

 
240

 
(45
)
Other
(7
)
 
(1
)
 
—

 
—

 
5

 
(3
)
 
—

 
(1
)
 
—

 
—

 
1

 
—

Interest rate contracts
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(3
)
 
—

 
—

 
—

 
(3
)
Total derivative liabilities
(137
)
 
(200
)
 
(123
)
 
—

 
318

 
(142
)
 
(197
)
 
(302
)
 
(170
)
 
—

 
513

 
(156
)
Total
$
(137
)
 
$
(200
)
 
$
(123
)
 
$
—

 
$
318

 
$
(142
)
 
$
(197
)
 
$
(302
)
 
$
(170
)
 
$
—

 
$
513

 
$
(156
)
Net Assets (Liabilities) at end of period
$
1,218

 
$
555

 
$
(28
)
 
$
34

 
$
—

 
$
1,779

 
$
1,069

 
$
528

 
$
(44
)
 
$
20

 
$
(17
)
 
$
1,556

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
130

 
$
175

 
$
62

 
$
—

 
$
(271
)
 
$
96

 
$
212

 
$
273

 
$
96

 
$
—

 
$
(461
)
 
$
120

Noncurrent
1,225

 
580

 
33

 
34

 
(47
)
 
1,825

 
1,054

 
557

 
30

 
20

 
(69
)
 
1,592

Total Assets
$
1,355

 
$
755

 
$
95

 
$
34

 
$
(318
)
 
$
1,921

 
$
1,266

 
$
830

 
$
126

 
$
20

 
$
(530
)
 
$
1,712

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(123
)
 
$
(163
)
 
$
(53
)
 
$
—

 
$
271

 
$
(68
)
 
$
(191
)
 
$
(251
)
 
$
(76
)
 
$
—

 
$
451

 
$
(67
)
Noncurrent
(14
)
 
(37
)
 
(70
)
 
—

 
47

 
(74
)
 
(6
)
 
(51
)
 
(94
)
 
—

 
62

 
(89
)
Total Liabilities
$
(137
)
 
$
(200
)
 
$
(123
)
 
$
—

 
$
318

 
$
(142
)
 
$
(197
)
 
$
(302
)
 
$
(170
)
 
$
—

 
$
513

 
$
(156
)
Net Assets (Liabilities) at end of period
$
1,218

 
$
555

 
$
(28
)
 
$
34

 
$
—

 
$
1,779

 
$
1,069

 
$
528

 
$
(44
)
 
$
20

 
$
(17
)
 
$
1,556


_______________________________________
(a)
See footnotes on following page.
_______________________________________
(b)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(c)
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.
(d)
At September 30, 2019, the $21 million consisted of $10 million and $11 million of cash equivalents included in Cash and cash equivalents and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2018, the $18 million consisted of $3 million, $5 million and $10 million of cash equivalents included in Cash and cash equivalents, Restricted cash, and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(e)
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, 2019
 
December 31, 2018
 
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)
$
11

 
$
—

 
$
—

 
$
—

 
$
11

 
$
8

 
$
2

 
$
—

 
$
—

 
$
10

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
990

 
—

 
—

 
—

 
990

 
851

 
—

 
—

 
—

 
851

Fixed income securities
9

 
535

 
—

 
—

 
544

 
12

 
490

 
—

 
—

 
502

Private equity and other
—

 
—

 
—

 
34

 
34

 
—

 
—

 
—

 
20

 
20

Cash equivalents
9

 
—

 
—

 
—

 
9

 
5

 
—

 
—

 
—

 
5

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
12

 
—

 
—

 
—

 
12

 
10

 
—

 
—

 
—

 
10

Derivative assets — FTRs
—

 
—

 
5

 
—

 
5

 
—

 
—

 
6

 
—

 
6

Total
$
1,031

 
$
535

 
$
5

 
$
34

 
$
1,605

 
$
886

 
$
492

 
$
6

 
$
20

 
$
1,404

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
11

 
$
—

 
$
5

 
$
—

 
$
16

 
$
8

 
$
2

 
$
6

 
$
—

 
$
16

Noncurrent
1,020

 
535

 
—

 
34

 
1,589

 
878

 
490

 
—

 
20

 
1,388

Total Assets
$
1,031

 
$
535

 
$
5

 
$
34

 
$
1,605

 
$
886

 
$
492

 
$
6

 
$
20

 
$
1,404

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
At September 30, 2019, the $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position. At December 31, 2018, the $10 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.
Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents 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, 2019
 
Three Months Ended September 30, 2018
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of June 30
$
(10
)
 
$
10

 
$
9

 
$
9

 
$
(25
)
 
$
(13
)
 
$
15

 
$
(23
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(35
)
 
37

 
—

 
2

 
(30
)
 
21

 
—

 
(9
)
Recorded in Regulatory liabilities
—

 
—

 
(3
)
 
(3
)
 
—

 
—

 
(8
)
 
(8
)
Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
4

 
(39
)
 
(1
)
 
(36
)
 
9

 
(18
)
 
(1
)
 
(10
)
Net Assets (Liabilities) as of September 30
$
(41
)
 
$
8

 
$
5

 
$
(28
)
 
$
(46
)
 
$
(10
)
 
$
6

 
$
(50
)
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, 2019 and 2018 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(36
)
 
$
15

 
$
(1
)
 
$
(22
)
 
$
(31
)
 
$
10

 
$
(1
)
 
$
(22
)
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of December 31
$
(49
)
 
$
(2
)
 
$
7

 
$
(44
)
 
$
(29
)
 
$
12

 
$
8

 
$
(9
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
—

 
—

 
—

 
—

 
(3
)
 
—

 
—

 
(3
)
Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(4
)
 
47

 
(1
)
 
42

 
(128
)
 
25

 
1

 
(102
)
Recorded in Regulatory liabilities
—

 
—

 
3

 
3

 
—

 
—

 
6

 
6

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
12

 
(37
)
 
(4
)
 
(29
)
 
114

 
(47
)
 
(9
)
 
58

Net Assets (Liabilities) as of September 30
$
(41
)
 
$
8

 
$
5

 
$
(28
)
 
$
(46
)
 
$
(10
)
 
$
6

 
$
(50
)
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, 2019 and 2018 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
)
 
$
32

 
$
(6
)
 
$
6

 
$
(109
)
 
$
4

 
$
(3
)
 
$
(108
)
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,
 
2019
 
2018
 
2019
 
2018
 
(In millions)
Net Assets as of beginning of period
$
9

 
$
15

 
$
6

 
$
9

Change in fair value recorded in Regulatory liabilities
(3
)
 
(8
)
 
3

 
6

Purchases, issuances, and settlements
 
 
 
 
 
 
 
Settlements
(1
)
 
(1
)
 
(4
)
 
(9
)
Net Assets as of September 30
$
5

 
$
6

 
$
5

 
$
6

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, 2019 and 2018 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
(1
)
 
$
(2
)
 
$
5

 
$
6
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, 2019
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
54

 
$
(95
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.55
)
—
 
$
6.17
/MMBtu
 
$
(0.09
)/MMBtu
Electricity
 
$
36

 
$
(28
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(13
)
—
 
$
7
/MWh
 
$
—

 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
63

 
$
(112
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(2.15
)
—
 
$
5.59
/MMBtu
 
$
(0.10
)/MMBtu
Electricity
 
$
56

 
$
(58
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(7
)
—
 
$
9
/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, 2019
 
December 31, 2018
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable(a), excluding lessor finance leases
$
178

 
$
—

 
$
—

 
$
178

 
$
40

 
$
—

 
$
—

 
$
40

Dividends payable
$
173

 
$
173

 
$
—

 
$
—

 
$
172

 
$
172

 
$
—

 
$
—

Short-term borrowings
$
724

 
$
—

 
$
724

 
$
—

 
$
609

 
$
—

 
$
609

 
$
—

Notes payable — Other(b), excluding lessee finance leases
$
27

 
$
—

 
$
—

 
$
27

 
$
41

 
$
—

 
$
—

 
$
41

Long-term debt(c)
$
15,056

 
$
1,277

 
$
14,216

 
$
1,138

 
$
13,622

 
$
1,796

 
$
10,712

 
$
1,317

_______________________________________
(a)
Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.
(b)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
(c)
Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes finance lease obligations.
The following table presents the carrying amount and fair value of financial instruments for DTE Electric:
 
September 30, 2019
 
December 31, 2018
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable — Other(a), excluding lessor finance leases
$
14

 
$
—

 
$
—

 
$
14

 
$
6

 
$
—

 
$
—

 
$
6

Short-term borrowings — affiliates
$
97

 
$
—

 
$
—

 
$
97

 
$
101

 
$
—

 
$
—

 
$
101

Short-term borrowings — other
$
382

 
$
—

 
$
382

 
$
—

 
$
149

 
$
—

 
$
149

 
$
—

Notes payable — Other(b), excluding lessee finance leases
$
23

 
$
—

 
$
—

 
$
23

 
$
21

 
$
—

 
$
—

 
$
21

Long-term debt(c)
$
7,179

 
$
—

 
$
7,996

 
$
176

 
$
6,538

 
$
—

 
$
6,552

 
$
161

_______________________________________
(a)
Included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(c)
Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes finance 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, 2019
 
December 31, 2018
 
(In millions)
Fermi 2
$
1,567

 
$
1,372

Fermi 1
3

 
3

Low-level radioactive waste
7

 
3


$
1,577

 
$
1,378
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,
 
2019
 
2018
 
2019
 
2018
 
(In millions)
Realized gains
$
15

 
$
10

 
$
43

 
$
52

Realized losses
$
(8
)
 
$
(7
)
 
$
(25
)
 
$
(22
)
Proceeds from sale of securities
$
198

 
$
194

 
$
594

 
$
810
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, 2019
 
December 31, 2018
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
990

 
$
335

 
$
(53
)
 
$
851

 
$
235

 
$
(79
)
Fixed income securities
544

 
27

 
(1
)
 
502

 
7

 
(8
)
Private equity and other
34

 
—

 
—

 
20

 
—

 
—

Cash equivalents
9

 
—

 
—

 
5

 
—

 
—

 
$
1,577

 
$
362

 
$
(54
)
 
$
1,378

 
$
242

 
$
(87
)
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, 2019
 
(In millions)
Due within one year
$
23

Due after one through five years
98

Due after five through ten years
108

Due after ten years
315

 
$
544