New factors emerge from time to time. WeThe Registrants cannot predict what factors may arise or how such factors may cause our results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. WeThe Registrants undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

References in this report to “we,” “us,” “our” or “Company” are to DTE Electric.

Our generating plants areElectric is regulated by numerous federal and state governmental agencies, including, but not limited to, the MPSC, the FERC, the NRC, the EPA, and the MDEQ. Electricity is generated from our fossil-fuel plants, a hydroelectric pumped storage plant, a nuclear plant, and our wind and other renewable assets and is supplemented with purchased from electricity generators, suppliers and wholesalers.power. The electricity we produce and purchase is sold, or distributed through the retail access program, to three major classes of customers: residential, commercial, and industrial, throughout southeastern Michigan.

OurDTE Electric's power is generated from a variety of fuels and is supplemented with purchased power. We expectDTE Electric expects to have an adequate supply of fuel and purchased power to meet ourits obligation to serve customers. OurDTE Electric's generating capability is heavily dependent upon the availability of coal. Coal is purchased from various sources in different geographic areas under agreements that vary in both pricing and terms. We expectDTE Electric expects to obtain the majority of ourits coal requirements through long-term contracts, with the balance to be obtained through short-term agreements and spot purchases. We haveDTE Electric has long-term and short-term contracts for the purchase of approximately 22.137.9 million tons of low-sulfur western coal to be delivered from 2013 through 2015 and approximately 3.53.0 million tons of Appalachian coal to be delivered from 2013 through 2014.2016 to 2021. All of these contracts have pricing schedules. We haveDTE Electric has approximately 81%98% of our 2013the expected coal requirements for 2016 under contract. Given the geographic diversity of supply, we believe weDTE Electric believes it can meet ourits expected generation requirements. We leaseDTE Electric leases a fleet of rail cars and have ourhas the expected western coal rail requirements under contract through 2015.2018. All of ourthe expected eastern coal rail requirements are under contract through 2013. Our2016. Contracts covering expected vessel transportation requirements for delivery of purchased coal to ourelectric generating facilities are under contract through 2014.

In 2008, a renewable portfolio standard was established for Michigan electric providers targeting 10% of electricity sold to retail customers from renewable energy by 2015. DTE Electric has approximately 720expects to retire Trenton Channel Unit 7 (110 MW) in April 2016. Over the next fifteen years, DTE Electric expects to retire additional coal-fired generation and to increase the proportion of its generation mix attributable to natural gas-fired generation and renewables. DTE Electric acquired two simple-cycle natural gas facilities in 2015. In January 2015, DTE Electric acquired a 732 MW simple-cycle natural gas facility in Carson City, Michigan (Montcalm County) that was placed in service in 2002 and 2003. In October 2015, DTE Electric acquired a 350 MW simple-cycle natural gas facility in East China Township, Michigan (St. Clair County) that was placed in service in 2002. These acquisitions are included in Natural gas and Oil-fueled Peaking Units in the table above. See Note 4 to the Consolidated Financial Statements in Item 8 of owned or contracted renewable energy, principally wind turbines located in Gratiot, Tuscola, Huronthis Report, "Acquisitions and Sanilac counties in Michigan, at December 31, 2012 representing approximately 8% of electricity sold to retail customers. Approximately 510 MW is in commercial operation at December 31, 2012 with an additional 210 MW expected in commercial operation in 2013 or early 2014.

See Notes 3, 7, 8, 11, and 14 of17 to the Notes to Consolidated Financial Statements in Item 8 of this Report.Report, "Asset Retirement Obligations", "Regulatory Matters", "Fair Value", and "Commitments and Contingencies".

We strive to be the preferred supplier ofDTE Electric's electrical generation operations seek to provide the energy needs of customers in southeast Michigan. We can accomplish this goal by workinga cost effective manner. With potential capacity constraints in the MISO region, there will be increased dependency on DTE Electric's generation to provide reliable service and price stability for customers. This generation will require a large investment due to DTE Electric's aging coal fleet along with our customers, communities and regulatory agencies to be a reliable, low-cost supplier of electricity. To ensure generation and network reliability we continue to make capital investments in our generating plants and distribution system, which will improve plant availability, operating efficiencies andincreased environmental compliance in areas that have a positive impact on reliability with the goal of high customer satisfaction.regulations.

OurDTE Electric's distribution operations focus is on improving reliability, restoration timedistributing energy in a safe, cost effective, and reliable manner to customers. DTE Electric seeks to increase operational efficiencies to increase customer satisfaction at an affordable rate.

WeThe Registrants are subject to extensive environmental regulation. Weregulation and expect to continue recovering environmental costs related to utility operations through rates charged to our customers. The following table summarizes ourDTE Energy's, including DTE Electric's, estimated significant future environmental expenditures based upon current regulations. The amounts reported in the following table do not include any expenditures related to the EPA Clean Power Plan as discussed below. Actual costs to comply could vary substantially. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented.

WeThe Registrants are also in the process of cleaning up other sites where contamination is present as a result of historical and ongoing utility operations. These other sites include an engineered ash storage facility, electricalelectric distribution substations, gas pipelines, electric generating power plants, and underground and aboveground storage tank locations. Cleanup activities associated with these sites will be conducted over the next several years. Any significant change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for these sites and affect the Company'sRegistrants' financial position and cash flows and the rates we charge ourcharged to their customers.

WeDTE Energy had approximately 4,80010,000 employees as of December 31, 2012,2015, of which approximately 2,7004,900 were represented by unions. DTE Electric had approximately 4,500 employees as of December 31, 2015, of which approximately 2,600 were represented by unions. There are several bargaining units for DTE Energy’s represented employees. The majority of our unionrepresented employees for both DTE Energy and DTE Electric are under a contractcontracts that expiresexpire in June 2013.2016 and 2017.