Retirement Benefits and Trusteed Assets

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Retirement Benefits and Trusteed Assets

RETIREMENT BENEFITS AND TRUSTEED ASSETS

The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:

	Pension Benefits				Other Postretirement Benefits
	Three Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Service cost	$	25	$	21	$	7	$	5
Interest cost	46		55		14		18
Expected return on plan assets	(84)		(82)		(32)		(30)
Amortization of:
Net actuarial loss	43		33		4		3
Prior service credit	—		—		(5)		(3)
Settlements	2		—		—		—
Net periodic benefit cost (credit)	$	32	$	27	$	(12)	$	(7)

	Pension Benefits				Other Postretirement Benefits
	Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Service cost	$	74	$	63	$	20	$	16
Interest cost	139		164		42		53
Expected return on plan assets	(250)		(244)		(96)		(92)
Amortization of:
Net actuarial loss	129		99		12		9
Prior service credit	—		—		(15)		(7)
Settlements	2		—		—		—
Net periodic benefit cost (credit)	$	94	$	82	$	(37)	$	(21)

DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are sponsored by DTE Energy's subsidiary, DTE Energy Corporate Services, LLC. DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer. As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position. In addition, the service cost and non-service cost components are presented in Operation and maintenance in DTE Electric's Consolidated Statements of Operations. The same non-service cost components are presented in Other (Income) and Deductions — Non-operating retirement benefits, net in DTE Energy's Consolidated Statements of Operations. Plan participants of all plans are solely DTE Energy and affiliate participants.

DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in capital expenditures and operating and maintenance expense were $28 million and $23 million for the three months ended September 30, 2020 and 2019, respectively, and $79 million and $68 million for the nine months ended September 30, 2020 and 2019, respectively. These amounts include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following tables detail the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)				(In millions)
Service cost	$	5	$	4	$	15	$	12
Interest cost	11		13		32		40
Expected return on plan assets	(21)		(21)		(65)		(63)
Amortization of:
Net actuarial loss	2		1		8		3
Prior service credit	(3)		(1)		(10)		(5)
Net periodic benefit credit	$	(6)	$	(4)	$	(20)	$	(13)

Pension and Other Postretirement Contributions

For the nine months ended September 30, 2020, DTE Energy made contributions of $84 million to its qualified pension plans, including $82 million of common stock and $2 million of cash contributions. Details of the contribution of common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust are as follows:

Date	Number of Shares	Price per Share		Amount
				(In millions)
September 8, 2020	694,444	$	118.08	$	82

The above contribution was made on behalf of DTE Electric and DTE Gas, for which DTE Electric and DTE Gas paid DTE Energy cash consideration of $60 million and $22 million, respectively, in September 2020. DTE Energy is currently assessing whether any additional contributions will be made to its pension plans in 2020. If any further contributions are made, they are not expected to be material to the Consolidated Financial Statements. No contributions are anticipated for DTE Energy's postretirement benefit plans in 2020.