Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of Other Income

The following is a summary of DTE Energy's Other income:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Equity earnings of equity method investees	$	41	$	30	$	73	$	59
Income from REF entities	21		29		45		52
Contract services	7		6		15		13
Allowance for equity funds used during construction	6		7		13		13
Gains from rabbi trust securities(a)	2		22		4		22
Other	6		7		9		7
	$	83	$	101	$	159	$	166

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(a)Losses from rabbi trust securities are recorded separately to Other expenses on the Consolidated Statements of Operations.

The following is a summary of DTE Electric's Other income:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Contract services	$	7	$	6	$	15	$	13
Allowance for equity funds used during construction	6		6		12		12
Gains from rabbi trust securities allocated from DTE Energy(a)	2		22		4		22
Other	4		3		7		3
	$	19	$	37	$	38	$	50

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(a)Losses from rabbi trust securities are recorded separately to Other expenses on the Consolidated Statements of Operations.

Schedule of Effective Tax Rates

The interim effective tax rates of the Registrants are as follows:

	Effective Tax Rate
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
DTE Energy	11	%	2	%	8	%	8	%
DTE Electric	10	%	12	%	10	%	12	%

Schedule of Financing Receivables Classified by Internal Grade of Credit Risk

The following represents the Registrants' financing receivables by year of origination, classified by internal grade of credit risk. The related credit quality indicators and risk ratings utilized to develop the internal grades have been updated through June 30, 2021.

	DTE Energy								DTE Electric
	Year of origination
	2021		2020		2019 and Prior		Total		2021 and Prior
	(In millions)
Notes receivable
Internal grade 1	$	—	$	—	$	24	$	24	$	14
Internal grade 2	1		86		22		109		2
Internal grade 3	—		—		11		11		—
Total notes receivable(a)	$	1	$	86	$	57	$	144	$	16
Net investment in leases
Net investment in leases, internal grade 1	$	—	$	3	$	39	$	42	$	—
Net investment in leases, internal grade 2	—		160		1		161		—
Total net investment in leases(a)	$	—	$	163	$	40	$	203	$	—

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(a)For DTE Energy, included in Current Assets — Other and Other Assets — Notes Receivable on the Consolidated Statements of Financial Position. For DTE Electric, included in Current Assets — Other and Other Assets — Other on the Consolidated Statements of Financial Position.

Schedule of Roll-Forward of Activity for Financing Receivables Credit Loss Reserves

The following tables present a roll-forward of the activity for the Registrants' financing receivables credit loss reserves:

	DTE Energy						DTE Electric
	Trade accounts receivable		Other receivables		Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2021	$	101	$	3	$	104	$	57
Current period provision	33		1		34		17
Write-offs charged against allowance	(60)		(1)		(61)		(40)
Recoveries of amounts previously written off	38		—		38		22
Ending reserve balance, June 30, 2021	$	112	$	3	$	115	$	56

	DTE Energy						DTE Electric
	Trade accounts receivable		Other receivables		Total		Trade and other accounts receivable
	(In millions)
Beginning reserve balance, January 1, 2020	$	87	$	4	$	91	$	46
Current period provision	100		3		103		61
Write-offs charged against allowance	(136)		(4)		(140)		(80)
Recoveries of amounts previously written off	50		—		50		30
Ending reserve balance, December 31, 2020	$	101	$	3	$	104	$	57

Schedule of Uncollectible Expense

Uncollectible expense for the Registrants is primarily comprised of the current period provision for allowance for doubtful accounts and is summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
DTE Energy	$	4	$	15	$	35	$	48
DTE Electric	5		9		16		26