Short-Term Credit Arrangements and Borrowings

12 Months Ended

Dec. 31, 2024

Short-Term Credit Arrangements and Borrowings

SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. Letters of credit of up to $500 million may also be issued under the DTE Energy revolver. DTE Energy and DTE Electric also have other facilities to support letter of credit issuance and increase liquidity.

The unsecured revolving credit agreements require a total funded debt to capitalization ratio of no more than 0.70 to 1 for DTE Energy and 0.65 to 1 for DTE Electric and DTE Gas. In the agreements, "total funded debt" means all indebtedness of each respective company and their consolidated subsidiaries, including finance lease obligations, hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. "Capitalization" means the sum of (a) total funded debt plus (b) "consolidated net worth," which is equal to consolidated total equity of each respective company and their consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At December 31, 2024, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.65 to 1, 0.52 to 1, and 0.49 to 1, respectively, and were in compliance with this financial covenant.

The availability under the facilities in place at December 31, 2024 is shown in the following table:


	DTE Energy		DTE Electric		DTE Gas		Total
	(In millions)
Unsecured revolving credit facility, expiring October 2029	$	1,500	$	800	$	300	$	2,600

Unsecured letter of credit facility, expiring June 2025(a)	175		—		—		175
Unsecured letter of credit facility, expiring February 2025	150		—		—		150
Unsecured letter of credit facilities, expiring June 2026	100		—		—		100
Unsecured letter of credit facility(b)	50		—		—		50
Unsecured letter of credit facility(c)	—		125		—		125


	1,975		925		300		3,200
Amounts outstanding at December 31, 2024

Commercial paper issuances	392		666		9		1,067
Letters of credit	117		124		—		241

	509		790		9		1,308
Net availability at December 31, 2024	$	1,466	$	135	$	291	$	1,892

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(a)Uncommitted letter of credit facility.

(b)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration.

(c)Uncommitted letter of credit facility with automatic renewal provision and therefore no expiration. DTE Energy may also utilize availability under this facility.

For both DTE Energy and DTE Electric, the weighted average interest rate for short-term borrowings was 4.7% and 5.6% at December 31, 2024 and 2023, respectively. For information related to affiliate short-term borrowings, refer to Note 22 of the Consolidated Financial Statements, "Related Party Transactions."

In conjunction with maintaining certain exchange-traded risk management positions, DTE Energy may be required to post collateral with a clearing agent. DTE Energy has a demand financing agreement with its clearing agent which allows the right of setoff with posted collateral. At December 31, 2024, the capacity under the facility was $200 million. The amounts outstanding under demand financing agreements were $49 million and $152 million at December 31, 2024 and 2023, respectively, and were fully offset by posted collateral.

Dividend Restrictions

Certain of DTE Energy’s credit facilities contain a provision requiring DTE Energy to maintain a total funded debt to capitalization ratio, as defined in the agreements, of no more than 0.70 to 1, which has the effect of limiting the amount of dividends DTE Energy can pay in order to maintain compliance with this provision. At December 31, 2024, the effect of this provision was a restriction on dividend payments to no more than $2.5 billion of DTE Energy's Retained earnings of $4.9 billion. There are no other effective limitations with respect to DTE Energy’s ability to pay dividends.