Long-Term Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-Term Debt

DTE Energy's long-term debt outstanding and interest rates of debt outstanding at December 31 were:

	Interest Rate(a)	Maturity Date	2022		2021
			(In millions)
Mortgage bonds, notes, and other
DTE Energy debt, unsecured	3.4%	2023 — 2030	$	5,105	$	5,555
DTE Electric debt, principally secured	3.7%	2023 — 2052	9,572		8,988
DTE Gas debt, principally secured	4.0%	2023 — 2052	2,325		2,065
			17,002		16,608
Unamortized debt discount			(26)		(23)
Unamortized debt issuance costs			(92)		(90)
Long-term debt due within one year			(1,077)		(2,866)
			$	15,807	$	13,629
Securitization bonds(b)
DTE Electric securitization bonds	2.8%	2027 — 2036	$	215	$	—
Unamortized debt issuance costs			(4)
Long-term debt due within one year			(39)		—
			$	172	$	—
Junior Subordinated Debentures
Subordinated debentures	4.8%	2077 — 2081	$	910	$	910
Unamortized debt issuance costs			(27)		(27)
			$	883	$	883

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(a)Weighted average interest rate as of December 31, 2022.

(b)Bonds are held by DTE Securitization, a special purpose entity consolidated by DTE Electric. Refer to Note 1 to the Consolidated Financial Statements, “Organization and Basis of Presentation,” for additional information regarding DTE Securitization and restrictions related to these bonds.

DTE Electric's long-term debt outstanding and interest rates of debt outstanding at December 31 were:

	Interest Rate(a)	Maturity Date	2022		2021
			(In millions)
Mortgage bonds, notes, and other
Long-term debt, principally secured	3.7%	2023 — 2052	$	9,572	$	8,988
Unamortized debt discount			(22)		(19)
Unamortized debt issuance costs			(65)		(62)
Long-term debt due within one year			(203)		(316)
			$	9,282	$	8,591
Securitization bonds(b)
DTE Electric securitization bonds	2.8%	2027 — 2036	$	215	$	—
Unamortized debt issuance costs			(4)
Long-term debt due within one year			(39)		—
			$	172	$	—

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(a)Weighted average interest rate as of December 31, 2022.

(b)Bonds are held by DTE Securitization, a special purpose entity consolidated by DTE Electric. Refer to Note 1 to the Consolidated Financial Statements, “Organization and Basis of Presentation,” for additional information regarding DTE Securitization and restrictions related to these bonds.

Debt Issuances

In 2022, the following debt was issued:

Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	February	Mortgage bonds(a)	3.00%	2032	$	500
DTE Electric	February	Mortgage bonds(b)	3.65%	2052	400
DTE Electric	March	Securitization bonds(c)	2.64%	2027(d)	184
DTE Electric	March	Securitization bonds(c)	3.11%	2036(e)	52
DTE Energy	August	Term loan facility draw	Variable	2023	400
DTE Gas	September	Mortgage bonds(a)	4.76%	2032	130
DTE Gas	September	Mortgage bonds(a)	5.05%	2052	130
DTE Energy	November	Term loan facility draw	Variable	2023	200
DTE Energy	December	Term loan facility draw	Variable	2023	200
					$	2,196

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(a)Proceeds used for the repayment of short-term borrowings, for capital expenditures, and for other general corporate purposes.

(b)Bonds were issued as Green Bonds with proceeds to be used for eligible green expenditures, including costs related to the generation of solar and wind energy, purchases of renewable energy from wind and solar power facilities, and energy optimization programs.

(c)Proceeds were used to reimburse DTE Electric for qualified costs previously incurred, including the net book value of the River Rouge generation plant, tree trimming surge program costs, and other qualified costs. The securitization financing order from the MPSC required that the net proceeds be subsequently applied by DTE Electric to retire existing debt or equity. Accordingly, DTE Electric used proceeds of $115 million towards retirement of the 2012 Series A Mortgage bonds noted in the Debt Redemptions table below and issued a one-time special dividend of $115 million to DTE Energy. Refer to Note 9 to the Consolidated Financial Statements, “Regulatory Matters,” for additional information.

(d)Principal payments on the bonds are being made semi-annually beginning December 2022, with the final payment scheduled for December 2026.

(e)Principal payments on the bonds will be made semi-annually beginning June 2027, with the final payment scheduled for December 2035.

In June 2022, DTE Energy entered into a $1.125 billion unsecured term loan with a maturity date of December 2023. Any borrowings on the loan were determined to be long-term debt, as the term of the facility exceeds one year. DTE Energy had mandatory draw obligations of at least $400 million within sixty days of closing and a total of $800 million within six months of closing. DTE Energy complied with these obligations, as noted in the table above. These draws are included in the current portion of long-term debt on DTE Energy's Consolidated Statements of Financial Position as of December 31, 2022. Borrowings under the term loan are for the general corporate purposes of DTE Energy and its subsidiaries, bearing interest at SOFR plus 0.90% per annum. Any unused capacity under the loan will terminate if not drawn by June 24, 2023.

Other terms of the loan are consistent with DTE Energy's unsecured revolving credit agreements. Refer to Note 16 to the Consolidated Financial Statements, "Short-Term Credit Arrangements and Borrowings," for additional information regarding the unsecured revolving credit agreements.

Debt Redemptions

In 2022, the following debt was redeemed:

Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	March	Mortgage bonds	2.65%	2022	$	250
DTE Electric	September	Mortgage bonds	6.95%	2022	66
DTE Energy	November	Senior Notes	2.25%	2022	500
DTE Energy	November	Senior Notes	0.55%	2022	750
DTE Electric	December	Securitization Bonds	2.64%	2022	21
					$	1,587

The following table shows the Registrants' scheduled debt maturities, excluding any unamortized discount on debt:

	2023		2024		2025		2026		2027		2028 and Thereafter		Total
	(In millions)
DTE Energy(a)(b)	$	1,116	$	2,416	$	1,261	$	819	$	196	$	12,319	$	18,127
DTE Electric(b)	$	242	$	440	$	391	$	219	$	5	$	8,490	$	9,787

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(a)Amounts include DTE Electric's scheduled debt maturities.

(b)Amounts include DTE Securitization scheduled debt maturities.

The following table shows scheduled interest payments related to the Registrants' long-term debt:

	2023		2024		2025		2026		2027		2028 and Thereafter		Total
	(In millions)
DTE Energy(a)(b)	$	669	$	601	$	511	$	495	$	469	$	7,712	$	10,457
DTE Electric(b)	$	357	$	340	$	325	$	316	$	310	$	4,375	$	6,023

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(a)Amounts include DTE Electric's scheduled interest payments.

(b)Amounts include DTE Securitization scheduled interest payments.

Junior Subordinated Debentures

DTE Energy has the right to defer interest payments on the Junior Subordinated Debentures. Should DTE Energy exercise this right, it cannot declare or pay dividends on, or redeem, purchase or acquire, any of its capital stock during the deferral period. Any deferred interest payments will bear additional interest at the rate associated with the related debt issue. As of December 31, 2022, no interest payments have been deferred on the Junior Subordinated Debentures.

Cross Default Provisions

Substantially all of the net utility properties of DTE Electric and DTE Gas are subject to the lien of mortgages. Should DTE Electric or DTE Gas fail to timely pay their indebtedness under these mortgages, such failure may create cross defaults in the indebtedness of DTE Energy.

Remarketable Senior Notes

In November 2019, DTE Energy issued $1.3 billion of equity units, initially in the form of Corporate Units. Each Corporate Unit consisted of a stock purchase contract and a 1/20 interest in a RSN issued by DTE Energy. The stock purchase contracts obligated the holders to purchase shares of DTE Energy's common stock at a future settlement date. The RSNs were pledged as collateral to secure the purchase of common stock under the related stock purchase contracts.

In August 2022, DTE Energy remarketed the $1.3 billion 2019 Series F 2.25% RSNs pursuant to the terms of the 2019 equity units. DTE Energy elected to pull forward the maturity of the notes to November 1, 2024, compared to the original maturity date of November 1, 2025. As a result of the remarketing, the interest rate was reset to 4.22%, payable semi-annually at the new rate beginning August 8, 2022. At December 31, 2022, the notes are included in Mortgage, bonds, notes and other within DTE Energy's Consolidated Statements of Financial Position.

DTE Energy did not receive any proceeds for the remarketing. All proceeds belonged to the investors holding the 2019 equity units and were temporarily used to purchase a portfolio of treasury securities. The securities were released on behalf of investors on the related stock purchase contracts settlement date of November 1, 2022 to pay the purchase price to DTE Energy for the issuance of approximately 11.9 million shares of common stock. The proceeds DTE Energy received from the settlement of the purchase contract were primarily used to retire $1.25 billion of maturing debt on November 1, 2022.