Fair Value (Tables)

3 Months Ended

Mar. 31, 2021

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:


	March 31, 2021												December 31, 2020
	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)	$	1,500	$	—	$	—	$	—	$	—	$	1,500	$	438	$	—	$	—	$	—	$	—	$	438
Nuclear decommissioning trusts
Equity securities	999		—		—		205		—		1,204		947		—		—		222		—		1,169
Fixed income securities	107		385		—		86		—		578		102		371		—		82		—		555
Private equity and other	—		—		—		122		—		122		—		—		—		104		—		104

Cash equivalents	20		—		—		—		—		20		27		—		—		—		—		27
Other investments(d)
Equity securities	58		—		—		—		—		58		55		—		—		—		—		55
Fixed income securities	7		—		—		—		—		7		8		—		—		—		—		8
Cash equivalents	98		—		—		—		—		98		97		—		—		—		—		97

Derivative assets
Commodity contracts(e)
Natural gas	49		72		42		—		(106)		57		99		74		60		—		(156)		77
Electricity	—		118		20		—		(100)		38		—		128		52		—		(120)		60
Environmental & Other	—		258		1		—		(244)		15		—		150		4		—		(135)		19

Total derivative assets	49		448		63		—		(450)		110		99		352		116		—		(411)		156
Total	$	2,838	$	833	$	63	$	413	$	(450)	$	3,697	$	1,773	$	723	$	116	$	408	$	(411)	$	2,609

Liabilities
Derivative liabilities
Commodity contracts(e)
Natural gas	$	(36)	$	(79)	$	(131)	$	—	$	108	$	(138)	$	(88)	$	(59)	$	(76)	$	—	$	151	$	(72)
Electricity	—		(111)		(39)		—		98		(52)		—		(126)		(42)		—		125		(43)
Environmental & Other	—		(250)		—		—		238		(12)		—		(137)		—		—		129		(8)

Foreign currency exchange contracts	—		(6)		—		—		—		(6)		—		(5)				—		—		(5)

Total	$	(36)	$	(446)	$	(170)	$	—	$	444	$	(208)	$	(88)	$	(327)	$	(118)	$	—	$	405	$	(128)
Net Assets (Liabilities) at end of period	$	2,802	$	387	$	(107)	$	413	$	(6)	$	3,489	$	1,685	$	396	$	(2)	$	408	$	(6)	$	2,481
Assets
Current	$	1,545	$	282	$	44	$	—	$	(298)	$	1,573	$	532	$	260	$	92	$	—	$	(330)	$	554
Noncurrent	1,293		551		19		413		(152)		2,124		1,241		463		24		408		(81)		2,055
Total Assets	$	2,838	$	833	$	63	$	413	$	(450)	$	3,697	$	1,773	$	723	$	116	$	408	$	(411)	$	2,609
Liabilities
Current	$	(34)	$	(252)	$	(83)	$	—	$	280	$	(89)	$	(84)	$	(223)	$	(79)	$	—	$	318	$	(68)
Noncurrent	(2)		(194)		(87)		—		164		(119)		(4)		(104)		(39)		—		87		(60)
Total Liabilities	$	(36)	$	(446)	$	(170)	$	—	$	444	$	(208)	$	(88)	$	(327)	$	(118)	$	—	$	405	$	(128)
Net Assets (Liabilities) at end of period	$	2,802	$	387	$	(107)	$	413	$	(6)	$	3,489	$	1,685	$	396	$	(2)	$	408	$	(6)	$	2,481

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(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)Amounts consisted of $1 million and $2 million of cash equivalents included in Restricted cash on DTE Energy's Consolidated Statements of Financial Position at March 31, 2021 and December 31, 2020, respectively. All other amounts are included in Cash and cash equivalents on the Consolidated Statements of Financial Position.

(d)Excludes cash surrender value of life insurance investments.

(e)For contracts with a clearing agent, DTE Energy nets all activity across commodities. This can result in some individual commodities having a contra balance.

The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:


	March 31, 2021										December 31, 2020
	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)	$	864	$	—	$	—	$	—	$	864	$	4	$	—	$	—	$	—	$	4
Nuclear decommissioning trusts
Equity securities	999		—		—		205		1,204		947		—		—		222		1,169
Fixed income securities	107		385		—		86		578		102		371		—		82		555
Private equity and other	—		—		—		122		122		—		—		—		104		104

Cash equivalents	20		—		—		—		20		27		—		—		—		27
Other investments
Equity securities	17		—		—		—		17		16		—		—		—		16

Cash equivalents	11		—		—		—		11		11		—		—		—		11
Derivative assets — FTRs	—		—		1		—		1		—		—		4		—		4
Total	$	2,018	$	385	$	1	$	413	$	2,817	$	1,107	$	371	$	4	$	408	$	1,890

Assets
Current	$	864	$	—	$	1	$	—	$	865	$	4	$	—	$	4	$	—	$	8
Noncurrent	1,154		385		—		413		1,952		1,103		371		—		408		1,882
Total Assets	$	2,018	$	385	$	1	$	413	$	2,817	$	1,107	$	371	$	4	$	408	$	1,890

_______________________________________

(a)Amounts represent assets valued at NAV as a practical expedient for fair value.

(b)Amounts are included in Cash and cash equivalents 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 March 31, 2021								Three Months Ended March 31, 2020
	Natural Gas		Electricity		Other		Total		Natural Gas		Electricity		Other		Total
	(In millions)
Net Assets (Liabilities) as of January 1	$	(16)	$	10	$	4	$	(2)	$	(15)	$	16	$	3	$	4

Transfers from Level 3 into Level 2	—		—		—		—		(1)		—		—		(1)
Total gains (losses)
Included in earnings	(67)		26		—		(41)		24		20		—		44
Recorded in Regulatory liabilities	—		—		(1)		(1)		—		—		(2)		(2)
Purchases, issuances, and settlements


Settlements	(6)		(55)		(2)		(63)		—		(21)		—		(21)
Net Assets (Liabilities) as of March 31	$	(89)	$	(19)	$	1	$	(107)	$	8	$	15	$	1	$	24
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31(a)	$	(93)	$	(7)	$	—	$	(100)	$	19	$	21	$	—	$	40

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(a)Amounts are reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, gas, and other — non-utility in DTE Energy's Consolidated Statements of Operations.

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 March 31,
		2021		2020
		(In millions)
Net Assets as of January 1		$	4	$	3
Change in fair value recorded in Regulatory liabilities		(1)		(2)
Purchases, issuances, and settlements
Settlements		(2)		—
Net Assets as of March 31		$	1	$	1

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:


	March 31, 2021
Commodity Contracts	Derivative Assets		Derivative Liabilities		Valuation Techniques	Unobservable Input	Range						Weighted Average
	(In millions)
Natural Gas	$	42	$	(131)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(1.10)	—	$	2.45	/MMBtu	$	(0.10)	/MMBtu
Electricity	$	20	$	(39)	Discounted Cash Flow	Forward basis price (per MWh)	$	(9)	—	$	6	/MWh	$	(1)	/MWh


	December 31, 2020
Commodity Contracts	Derivative Assets		Derivative Liabilities		Valuation Techniques	Unobservable Input	Range						Weighted Average
	(In millions)
Natural Gas	$	60	$	(76)	Discounted Cash Flow	Forward basis price (per MMBtu)	$	(0.86)	—	$	2.50	/MMBtu	$	(0.07)	/MMBtu
Electricity	$	52	$	(42)	Discounted Cash Flow	Forward basis price (per MWh)	$	(9)	—	$	6	/MWh	$	—	/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:


	March 31, 2021								December 31, 2020
	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	$	140	$	—	$	—	$	140	$	141	$	—	$	—	$	141
Short-term borrowings	$	52	$	—	$	52	$	—	$	38	$	—	$	38	$	—
Notes payable(b)	$	6	$	—			$	6	$	19	$	—	$	—	$	19
Long-term debt(c)	$	20,432	$	2,537	$	17,950	$	1,496	$	19,439	$	2,547	$	18,230	$	1,397

_______________________________________

(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:


	March 31, 2021								December 31, 2020
	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)	$	16	$	—	$	—	$	16	$	16	$	—	$	—	$	16

Short-term borrowings — affiliates	$	78	$	—	$	—	$	78	$	101	$	—	$	—	$	101

Notes payable(b)	$	4	$	—	$	—	$	4	$	17	$	—	$	—	$	17
Long-term debt(c)	$	9,226	$	—	$	9,756	$	340	$	8,236	$	—	$	9,579	$	379

_______________________________________

(a)Included in Other 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:


	March 31, 2021		December 31, 2020
	(In millions)
Fermi 2	$	1,909	$	1,841
Fermi 1	3		3
Low-level radioactive waste	12		11
	$	1,924	$	1,855

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 March 31,
		2021		2020
		(In millions)
Realized gains		$	24	$	31
Realized losses		$	(2)	$	(16)
Proceeds from sale of securities		$	271	$	439

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:


	March 31, 2021						December 31, 2020
	Fair Value		Unrealized Gains		Unrealized Losses		Fair Value		Unrealized Gains		Unrealized Losses
	(In millions)
Equity securities	$	1,204	$	504	$	(6)	$	1,169	$	481	$	(6)
Fixed income securities	578		18		(6)		555		20		(1)
Private equity and other	122		12		—		104		—		—

Cash equivalents	20		—		—		27		—		—
	$	1,924	$	534	$	(12)	$	1,855	$	501	$	(7)

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:


	March 31, 2021
	(In millions)
Due within one year	$	18
Due after one through five years	127
Due after five through ten years	109
Due after ten years	238
	$	492

Summary of Gains (Losses) Related to the Trust

The following table summarizes the Registrant's gains (losses) related to the trust:


	Three Months Ended March 31,
		2021		2020
		(In millions)
Gains (losses) related to equity securities		$	2	$	(23)
Gains (losses) related to fixed income securities		—		(8)
		$	2	$	(31)