UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended September 30, 20172022
Or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
dte-20220930_g1.jpg
Commission File Number: 1-11607
DTE Energy Company
Michigan38-3217752
(State or other jurisdiction of incorporation or organization)(I.R.S Employer Identification No.)
Commission File Number: 1-2198
DTE Electric Company
Michigan38-0478650
(State or other jurisdiction of incorporation or organization)(I.R.S Employer Identification No.)
Registrants address of principal executive offices: One Energy Plaza, Detroit, Michigan 48226-1279
Registrants telephone number, including area code: (313) 235-4000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Exchange on which Registered
Common stock, without par valueDTENew York Stock Exchange
Commission File Number2017 Series E 5.25% Junior Subordinated Debentures due 2077Registrants; State of Incorporation; Address; and Telephone NumberDTWI.R.S. Employer Identification No.New York Stock Exchange
1-11607
DTE Energy Company
(a Michigan corporation)
One Energy Plaza
Detroit, Michigan 48226-1279
313-235-4000
38-3217752
2019 6.25% Corporate UnitsDTPNew York Stock Exchange
1-2198
DTE Electric Company
(a Michigan corporation)
One Energy Plaza
Detroit, Michigan 48226-1279
313-235-4000
38-0478650
2020 Series G 4.375% Junior Subordinated Debentures due 2080DTBNew York Stock Exchange
2021 Series E 4.375% Junior Subordinated Debentures due 2081DTGNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
DTE Energy Company (DTE Energy)    Yes x No oDTE Electric Company (DTE Electric)    Yes x No o
DTE Energy Company (DTE Energy)Yes☒No☐DTE Electric Company (DTE Electric)Yes☒No☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
DTE Energy                Yes x No oDTE Electric                Yes x No o
DTE EnergyYes☒No☐DTE ElectricYes☒No☐


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large"large accelerated filer,” “accelerated" "accelerated filer,” “smaller" "smaller reporting company,”" and “emerging"emerging growth company”company" in Rule 12b-2 of the Exchange Act.
DTE EnergyLarge accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
☒☐☐☐☐
DTE EnergyElectric
Large accelerated filerx
Accelerated filero
Non-accelerated filero
Smaller reporting companyo
(Do not check if a smaller
reporting company)
Emerging growth companyo
DTE Electric
Large accelerated filer o
☐
Accelerated filer o
☐
Non-accelerated filer x
☒
Smaller reporting company o
☐
(Do not check if a smaller
reporting company)
Emerging growth company o
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
DTE Energy                Yes o No xDTE Electric                Yes o No x
DTE EnergyYes☐No☒DTE ElectricYes☐No☒
Number of shares of Common Stock outstanding at September 30, 2017:
2022:
RegistrantDescriptionShares
DTE EnergyCommon Stock, without par value179,390,286193,741,991 
DTE ElectricCommon Stock, $10 par value, directly ownedindirectly-owned by DTE Energy138,632,324
This combined Form 10-Q is filed separately by two registrants: DTE Energy and DTE Electric. Information contained herein relating to anany individual registrant is filed by such registrant solely on its own behalf. DTE Electric makes no representation as to information relating exclusively to DTE Energy.
DTE Electric, aan indirect wholly-owned subsidiary of DTE Energy, meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instructions H(2) of Form 10-Q.






















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TABLE OF CONTENTS

Page
1
3
3
PART I - FINANCIAL INFORMATION
DTE Energy Consolidated Financial Statements (Unaudited)
5
Page
Definitions
1
Filing Format
3
Forward-Looking Statements
3
PART I - FINANCIAL INFORMATION
Item 1.
Financial Statements
DTE Energy Consolidated Financial Statements (Unaudited)
5
DTE Electric Consolidated Financial Statements (Unaudited)
1112
1718
Note 1 — Organization and Basis of Presentation
1718
Note 2 — Significant Accounting Policies
2021
Note 3 — New Accounting Pronouncements
2125
Note 4 — AcquisitionDiscontinued Operations
2226
Note 5 — Regulatory MattersRevenue
2427
Note 6 — Regulatory Matters
29
Note 7 — Earnings Per Share
2530
Note 7 ��8 — Fair Value
2631
Note 89 — Financial and Other Derivative Instruments
3339
Note 910 — Long-Term Debt
3844
Note 1011 — Short-Term Credit Arrangements and Borrowings
3845
Note 1112 — Leases
46
Note 13 — Commitments and Contingencies
3947
Note 1214 — Retirement Benefits and Trusteed Assets
4452
Note 1315 — Segment and Related Information
4554
4656
6171
6473
PART II - OTHER INFORMATION
6574
6574
6574
6675
6776


Table of Contents



DEFINITIONS

ACEAffordable Clean Energy
AFUDCAllowance for Funds Used During Construction
ASU
AGSAppalachia Gathering System is a midstream natural gas asset located in Pennsylvania and West Virginia. DTE Energy purchased 100% of AGS in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.
ANPRAdvanced Notice of Proposed Rulemaking
ASUAccounting Standards Update issued by the FASB
CCR
CADCanadian Dollar (C$)
CARBCalifornia Air Resources Board that administers California's Low Carbon Fuel Standard
Carbon emissionsEmissions of carbon containing compounds, including carbon dioxide and methane, that are identified as greenhouse gases
CCRCoal Combustion Residuals
CFTCU.S. Commodity Futures Trading Commission
CONCOVID-19CertificateCoronavirus disease of Necessity2019
DTE ElectricDTE Electric Company (a direct(an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
DTE EnergyDTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas, and numerous non-utility subsidiaries
DTE GasDTE Gas Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
EGUDTE SecuritizationDTE Electric Securitization Funding I, LLC, a special purpose entity wholly-owned by DTE Electric. The entity was created to issue securitization bonds for certain qualified costs authorized by the MPSC and to recover debt service costs from DTE Electric customers
DTE Sustainable GenerationDTE Sustainable Generation Holdings, LLC (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies
DT MidstreamDT Midstream, Inc., formerly DTE Energy's natural gas pipeline, storage, and gathering non-utility business comprising the Gas Storage and Pipelines segment and certain DTE Energy holding company activity in the Corporate and Other segment, which separated from DTE Energy and became an independent public company on July 1, 2021
EGLEMichigan Department of Environment, Great Lakes, and Energy, formerly known as Michigan Department of Environmental Quality
EGUElectric Generating Unit
ELGEffluent Limitations Guidelines
EPAU.S. Environmental Protection Agency
Equity unitsDTE Energy's 2016 Equity Units2019 equity units issued in October 2016,November 2019, which were used to finance the October 1, 2016 Gas Storage and Pipelines acquisition on December 4, 2019
FASBEWREnergy Waste Reduction program, which includes a mechanism authorized by the MPSC allowing DTE Electric and DTE Gas to recover through rates certain costs relating to energy waste reduction
FASBFinancial Accounting Standards Board
FERCFederal Energy Regulatory Commission
FOVFGDFlue Gas Desulfurization
FOVFinding of Violation
FTRsFinancial Transmission Rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission grid.grid
GCRA Gas Cost Recovery mechanism authorized by the MPSC that allows DTE Gas to recover through rates its natural gas costs.costs
GHGsGreenhouse gases
MDEQGreen BondsMichigan DepartmentA financing option to fund projects that have a positive environmental impact based upon a specified set of Environmental Qualitycriteria. The proceeds are required to be used for eligible green expenditures
MGP
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DEFINITIONS
MGPManufactured Gas Plant
MISOMPSCMidcontinent Independent System Operator, Inc.
MPSCMichigan Public Service Commission
MTMMark-to-market
NAVNet Asset Value
NEXUSNet zeroNEXUSCollective efforts to reduce the carbon emissions of DTE Energy's utility operations and gas suppliers to DTE Gas, Transmission, LLC, a joint venture in which DTE Energy own a 50% partnership interest.as well as efforts to offset an amount equivalent to any remaining emissions. Progress towards net zero goals is estimated and methodologies and calculations may vary from those of other utility businesses with similar targets
Non-utilityAn entity that is not a public utility. Its conditions of service, prices of goods and services, and other operating related matters are not directly regulated by the MPSC.MPSC
NOVNotice of Violation
NOX
Nitrogen Oxides
NRCNPDESNational Pollutant Discharge Elimination System
NRCU.S. Nuclear Regulatory Commission

1


DEFINITIONS

Production tax creditsTax credits as authorized under Sections 45K andSection 45 of the Internal Revenue Code that are designed to stimulate investment in and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by the Internal Revenue Service.Service
PSCRA Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related, and purchased power costs.costs
REFRECRenewable Energy Credit
REFReduced Emissions Fuel
RegistrantsDTE Energy and DTE Electric
Retail accessMichigan legislation provided customers the option of access to alternative suppliers for electricity and natural gas.gas
SGGRPSStonewall Gas Gathering isRenewable Portfolio Standard program, which includes a midstream natural gas asset located in West Virginia. DTE Energy purchased 55% of SGG in October 2016, and this asset is part of DTE Energy's Gas Storage and Pipelines segment.
SO2
Sulfur Dioxide
TRMA Transitional Reconciliation Mechanismmechanism authorized by the MPSC that allowsallowing DTE Electric to recover through rates the deferred net incremental revenue requirement associated with the transition of City of Detroit's Public Lighting Department customers to DTE Electric's distribution system.its renewable energy costs
VIERSNVariable Interest EntityRemarketable Senior Note
SIPState Implementation Plan
SO2
Sulfur Dioxide
SOFRSecured Overnight Financing Rate
TCJATax Cuts and Jobs Act of 2017, which reduced the corporate Federal income tax rate from 35% to 21%
Topic 606FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended
VIEVariable Interest Entity

Units of Measurement
BcfBillion cubic feet of natural gas
BTUHeatBritish thermal unit, heat value (energy content) of fuel
MMBtu
MMBtuOne million BTU
MWhMegawatthour
MWhMegawatt-hour of electricity


2
Table of Contents



FILING FORMAT



This combined Form 10-Q is separately filed by DTE Energy and DTE Electric. Information in this combined Form 10-Q relating to each individual Registrant is filed by such Registrant on its own behalf. DTE Electric makes no representation regarding information relating to any other companies affiliated with DTE Energy other than its own subsidiaries. Neither DTE Energy, nor any of DTE Energy’s other subsidiaries (other than DTE Electric), has any obligation in respect of DTE Electric's debt securities, and holders of such debt securities should not consider the financial resources or results of operations of DTE Energy nor any of DTE Energy’s other subsidiaries (other than DTE Electric and its own subsidiaries (in relevant circumstances)) in making a decision with respect to DTE Electric's debt securities. Similarly, none of DTE Electric nor any other subsidiary of DTE Energy has any obligation in respect ofto debt securities of DTE Energy. This combined Form 10-Q should be read in its entirety. No one section of this combined Form 10-Q deals with all aspects of the subject matter of this combined Form 10-Q. This combined Form 10-Q report should be read in conjunction with the Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements and with Management's Discussion and Analysis included in the combined DTE Energy and DTE Electric 20162021 Annual Report on Form 10-K.


FORWARD-LOOKING STATEMENTS
Certain information presented herein includes “forward-looking statements”"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of the Registrants. Words such as “anticipate,” “believe,” “expect,” “may,” “could,” “projected,” “aspiration,” “plans,”"anticipate," "believe," "expect," "may," "could," "projected," "aspiration," "plans," and “goals”"goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of the Registrants including, but not limited to, the following:
•the duration and impact of the COVID-19 pandemic on the Registrants and customers;
•impact of regulation by the EPA, EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures;
•the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs;
•economic conditions and population changes in the Registrants' geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas;
•the operational failure of electric or gas distribution systems or infrastructure;
•impact of volatility in prices in international steel markets and in prices of environmental attributes generated from renewable natural gas investments on the operations of DTE Vantage;
•the risk of a major safety incident;
•environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;
•the cost of protecting assets and customer data against, or damage due to, cyber incidents and terrorism;
•health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities;
changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;
volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy;
impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations;
impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations;
•volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations;
•changes in the cost and availability of coal and other raw materials, purchased power, and natural gas;
•advances in technology that produce power, store power, or reduce power consumption;
•changes in the financial condition of DTE Energy's significant customers and strategic partners;
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•the potential for losses on investments, including nuclear decommissioning trust and benefit plan assets and the related increases in future expense and contributions;
•access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;
•instability in capital markets which could impact availability of short and long-term financing;


•impacts of inflation and the timing and extent of changes in interest rates;
•the level of borrowings;
•the potential for increased costs or delays in completion of significant capital projects;
•changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits;
•the effects of weather and other natural phenomena, including climate change, on operations and sales to customers, and purchases from suppliers;
•unplanned outages;outages at our generation plants;
the cost of protecting assets against, or damage due to, cyber crime and terrorism;
•employee relations and the impact of collective bargaining agreements;
the risk of a major safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility;
•the availability, cost, coverage, and terms of insurance and stability of insurance providers;
•cost reduction efforts and the maximization of plant and distribution system performance;
•the effects of competition;
•changes in and application of accounting standards and financial reporting regulations;
•changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues;
•successful execution of new business development and future growth plans;
•contract disputes, binding arbitration, litigation, and related appeals;
implementation•the ability of new information systems;the electric and gas utilities to achieve net zero emissions goals; and
•the risks discussed in the Registrants' public filings with the Securities and Exchange Commission.
New factors emerge from time to time. The Registrants cannot predict what factors may arise or how such factors may cause 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. The 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.



Part I — Financial Information
Item 1. Financial Statements

4
Table of Contents
DTE Energy Company

Consolidated Statements of Operations (Unaudited)
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions, except per share amounts)
Operating Revenues       
Utility operations$1,573
 $1,748
 $4,714
 $4,847
Non-utility operations1,672
 1,180
 4,622
 2,909
 3,245
 2,928
 9,336
 7,756
        
Operating Expenses       
Fuel, purchased power, and gas — utility437
 503
 1,362
 1,482
Fuel, purchased power, and gas — non-utility1,469
 1,034
 3,897
 2,527
Operation and maintenance566
 562
 1,725
 1,620
Depreciation and amortization258
 230
 756
 702
Taxes other than income91
 92
 297
 282
Asset (gains) losses and impairments, net6
 —
 9
 (1)
 2,827
 2,421
 8,046
 6,612
Operating Income418
 507
 1,290
 1,144
        
Other (Income) and Deductions       
Interest expense146
 114
 404
 341
Interest income(4) (3) (9) (17)
Other income(74) (51) (204) (160)
Other expenses13
 12
 26
 27
 81
 72
 217
 191
Income Before Income Taxes337
 435
 1,073
 953
        
Income Tax Expense74
 110
 241
 243
        
Net Income263
 325
 832
 710
        
Less: Net Loss Attributable to Noncontrolling Interests(7) (13) (15) (27)
        
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737
        
Basic Earnings per Common Share       
Net Income Attributable to DTE Energy Company$1.51
 $1.88
 $4.72
 $4.10
        
Diluted Earnings per Common Share       
Net Income Attributable to DTE Energy Company$1.51
 $1.88
 $4.72
 $4.10
        
Weighted Average Common Shares Outstanding       
Basic179
 179
 179
 179
Diluted179
 180
 179
 180
Dividends Declared per Common Share$0.825
 $0.77
 $2.475
 $2.23


Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions, except per share amounts)
Operating Revenues
Utility operations$2,053 $1,875 $6,196 $5,483 
Non-utility operations3,198 1,840 8,556 4,834 
5,251 3,715 14,752 10,317 
Operating Expenses
Fuel, purchased power, and gas — utility594 477 1,901 1,411 
Fuel, purchased power, gas, and other — non-utility3,023 1,766 8,324 4,708 
Operation and maintenance608 615 1,803 1,750 
Depreciation and amortization369 344 1,093 1,010 
Taxes other than income111 106 349 329 
Asset (gains) losses and impairments, net1 2 (4)29 
4,706 3,310 13,466 9,237 
Operating Income545 405 1,286 1,080 
Other (Income) and Deductions
Interest expense171 156 486 477 
Interest income(10)(6)(26)(16)
Non-operating retirement benefits, net(5)3 (13)10 
Loss on extinguishment of debt— 376 — 384 
Other income(16)(90)(35)(187)
Other expenses12 30 56 50 
152 469 468 718 
Income (Loss) Before Income Taxes393 (64)818 362 
Income Tax Expense (Benefit) (Note 2)6 (119)— (124)
Net Income from Continuing Operations387 55 818 486 
Income (Loss) from Discontinued Operations, Net of Taxes (Note 4)— (33)— 112 
Net Income387 22 818 598 
Less: Net Income (Loss) Attributable to Noncontrolling Interests
Continuing operations— (3)— (9)
Discontinued operations— — — 6 
Net Income Attributable to DTE Energy Company$387 $25 $818 $601 
Basic Earnings per Common Share
Continuing operations2.00 0.30 4.22 2.55 
Discontinued operations— (0.17)— 0.55 
Total$2.00 $0.13 $4.22 $3.10 
Diluted Earnings per Common Share
Continuing operations1.99 0.30 4.21 2.55 
Discontinued operations— (0.17)— 0.55 
Total$1.99 $0.13 $4.21 $3.10 
Weighted Average Common Shares Outstanding
Basic193 193 193 193 
Diluted194 194 194 194 
See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Energy Company

Consolidated Statements of Comprehensive Income (Unaudited)

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Net Income$263
 $325
 $832
 $710
        
Other comprehensive income, net of tax:       
Benefit obligations, net of taxes of $2, $2, $6, and $3, respectively3
 4
 10
 6
Net unrealized gains on investments during the period, net of taxes of $1, respectively—
 1
 1
 1
Foreign currency translation2
 (1) 2
 —
Other comprehensive income5
 4
 13
 7
        
Comprehensive income268
 329
 845
 717
Less: Comprehensive loss attributable to noncontrolling interests(7) (13) (15) (27)
Comprehensive Income Attributable to DTE Energy Company$275
 $342
 $860
 $744

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Energy Company

Consolidated Statements of Financial Position (Unaudited)

 September 30, December 31,
 2017 2016
 (In millions)
ASSETS
Current Assets   
Cash and cash equivalents$63
 $92
Restricted cash23
 21
Accounts receivable (less allowance for doubtful accounts of $39 and $41, respectively)   
Customer1,395
 1,522
Other166
 71
Inventories   
Fuel and gas453
 416
Materials and supplies363
 356
Derivative assets76
 47
Regulatory assets6
 42
Other270
 195
 2,815
 2,762
Investments   
Nuclear decommissioning trust funds1,439
 1,320
Investments in equity method investees971
 752
Other224
 201
 2,634
 2,273
Property   
Property, plant, and equipment30,924
 30,029
Accumulated depreciation and amortization(10,617) (10,299)
 20,307
 19,730
Other Assets   
Goodwill2,293
 2,286
Regulatory assets3,828
 3,871
Intangible assets883
 842
Notes receivable74
 73
Derivative assets62
 34
Other175
 170
 7,315
 7,276
Total Assets$33,071
 $32,041


See Combined Notes to Consolidated Financial Statements (Unaudited)

5

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DTE Energy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)

 September 30, December 31,
 2017 2016
 (In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities   
Accounts payable$994
 $1,079
Accrued interest131
 96
Dividends payable148
 148
Short-term borrowings659
 499
Current portion long-term debt, including capital leases109
 14
Derivative liabilities42
 69
Regulatory liabilities86
 34
Other429
 498
 2,598
 2,437
Long-Term Debt (net of current portion)   
Mortgage bonds, notes, and other11,038
 10,506
Junior subordinated debentures756
 756
Capital lease obligations1
 7
 11,795
 11,269
Other Liabilities 
  
Deferred income taxes4,396
 4,162
Regulatory liabilities489
 555
Asset retirement obligations2,288
 2,197
Unamortized investment tax credit138
 93
Derivative liabilities48
 98
Accrued pension liability922
 1,152
Accrued postretirement liability6
 36
Nuclear decommissioning213
 194
Other325
 349
 8,825
 8,836
Commitments and Contingencies (Notes 5 and 11)   



 

Equity   
Common stock, without par value, 400,000,000 shares authorized, and 179,390,286 and 179,432,581 shares issued and outstanding, respectively3,978
 4,030
Retained earnings5,515
 5,114
Accumulated other comprehensive loss(120) (133)
Total DTE Energy Company Equity9,373
 9,011
Noncontrolling interests480
 488
Total Equity9,853
 9,499
Total Liabilities and Equity$33,071
 $32,041

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Energy Company

Consolidated Statements of Cash Flows (Unaudited)

 Nine Months Ended September 30,
 2017 2016
 (In millions)
Operating Activities   
Net Income$832
 $710
Adjustments to reconcile Net Income to Net cash from operating activities:   
Depreciation and amortization756
 702
Nuclear fuel amortization39
 44
Allowance for equity funds used during construction(17) (15)
Deferred income taxes261
 244
Equity earnings of equity method investees(77) (49)
Dividends from equity method investees55
 52
Asset (gains) losses and impairments, net5
 —
Changes in assets and liabilities:   
Accounts receivable, net43
 6
Inventories(41) 10
Accounts payable25
 39
Accrued pension liability(230) (1)
Accrued postretirement liability(30) (80)
Derivative assets and liabilities(133) 122
Regulatory assets and liabilities260
 93
Other current and noncurrent assets and liabilities(198) (110)
Net cash from operating activities1,550
 1,767
Investing Activities   
Plant and equipment expenditures — utility(1,439) (1,267)
Plant and equipment expenditures — non-utility(133) (75)
Proceeds from sale of nuclear decommissioning trust fund assets951
 1,135
Investment in nuclear decommissioning trust funds(936) (1,140)
Distributions from equity method investees10
 8
Contributions to equity method investees(194) (199)
Other(63) 35
Net cash used for investing activities(1,804) (1,503)
Financing Activities   
Issuance of long-term debt, net of issuance costs1,010
 646
Redemption of long-term debt(385) (322)
Repurchase of long-term debt—
 (59)
Short-term borrowings, net160
 (89)
Repurchase of common stock(51) (33)
Dividends on common stock(444) (393)
Other(65) 15
Net cash from (used for) financing activities225
 (235)
Net Increase (Decrease) in Cash and Cash Equivalents(29) 29
Cash and Cash Equivalents at Beginning of Period92
 37
Cash and Cash Equivalents at End of Period$63
 $66
    
Supplemental disclosure of non-cash investing and financing activities   
Plant and equipment expenditures in accounts payable$222
 $168

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Energy Company

Consolidated Statements of Changes in Equity (Unaudited)

     Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests  
 Common Stock     
 Shares Amount    Total
 (Dollars in millions, shares in thousands)
Balance, December 31, 2016179,433
 $4,030
 $5,114
 $(133) $488
 $9,499
Net Income (Loss)—
 —
 847
 —
 (15) 832
Dividends declared on common stock—
 —
 (444) —
 —
 (444)
Repurchase of common stock(524) (51) —
 —
 —
 (51)
Benefit obligations, net of tax—
 —
 —
 10
 —
 10
Net change in unrealized gains on investments, net of tax—
 —
 —
 1
 —
 1
Foreign currency translation—
 —
 —
 2
 —
 2
Stock-based compensation, net contributions from noncontrolling interests, and other481
 (1) (2) —
 7
 4
Balance, September 30, 2017179,390
 $3,978
 $5,515
 $(120) $480
 $9,853

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Electric Company

Consolidated Statements of Operations (Unaudited)

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Utility operations$1,434
 $1,608
 $3,827
 $3,976
        
Operating Expenses       
Fuel and purchased power — utility428
 495
 1,097
 1,191
Operation and maintenance349
 363
 1,068
 1,019
Depreciation and amortization188
 176
 549
 539
Taxes other than income74
 73
 229
 216
 1,039
 1,107
 2,943
 2,965
Operating Income395
 501
 884
 1,011
        
Other (Income) and Deductions       
Interest expense68
 66
 206
 196
Interest income—
 —
 —
 (8)
Other income(21) (15) (57) (48)
Other expenses11
 9
 23
 22
 58
 60
 172
 162
Income Before Income Taxes337
 441
 712
 849
        
Income Tax Expense118
 156
 249
 302
        
Net Income$219
 $285
 $463
 $547

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Electric Company

Consolidated Statements of Comprehensive Income (Unaudited)


Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In millions)(In millions)
Net Income$219
 $285
 $463
 $547
Net Income$387 $22 $818 $598 
Other comprehensive income, net of tax:Other comprehensive income, net of tax:
Benefit obligations, net of taxes of $—, $1, $2, and $2, respectivelyBenefit obligations, net of taxes of $—, $1, $2, and $2, respectively2 2 7 5 
Net unrealized gains on derivatives, net of taxes of $1, $1, $2, and $2, respectivelyNet unrealized gains on derivatives, net of taxes of $1, $1, $2, and $2, respectively4 4 7 6 
Other comprehensive income—
 —
 —
 —
Other comprehensive income6 6 14 11 
Comprehensive Income$219
 $285
 $463
 $547
Comprehensive incomeComprehensive income393 28 832 609 
Less: Comprehensive loss attributable to noncontrolling interestsLess: Comprehensive loss attributable to noncontrolling interests— (3)— (3)
Comprehensive Income Attributable to DTE Energy CompanyComprehensive Income Attributable to DTE Energy Company$393 $31 $832 $612 

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Electric Company

Consolidated Statements of Financial Position (Unaudited)

 September 30, December 31,
 2017 2016
 (In millions)
ASSETS
Current Assets   
Cash and cash equivalents$12
 $13
Accounts receivable (less allowance for doubtful accounts of $23 and $25, respectively)   
Customer770
 728
Affiliates16
 12
Other86
 29
Inventories   
Fuel182
 225
Materials and supplies282
 271
Regulatory assets5
 36
Prepaid property tax107
 45
Other14
 18
 1,474
 1,377
Investments   
Nuclear decommissioning trust funds1,439
 1,320
Other35
 36
 1,474
 1,356
Property   
Property, plant, and equipment22,606
 22,094
Accumulated depreciation and amortization(7,921) (7,721)
 14,685
 14,373
Other Assets   
Regulatory assets3,108
 3,113
Intangible assets33
 31
Prepaid postretirement costs — affiliates114
 114
Other124
 125
 3,379
 3,383
Total Assets$21,012
 $20,489


See Combined Notes to Consolidated Financial Statements (Unaudited)

6

Table of Contents
DTE ElectricEnergy Company

Consolidated Statements of Financial Position (Unaudited) — (Continued)

 September 30, December 31,
 2017 2016
 (In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities   
Accounts payable   
Affiliates$52
 $58
Other371
 452
Accrued interest70
 65
Current portion long-term debt, including capital leases5
 6
Regulatory liabilities70
 27
Short-term borrowings   
Affiliates66
 117
Other311
 62
Other146
 146
 1,091
 933
Long-Term Debt (net of current portion)   
Mortgage bonds, notes, and other6,016
 5,878
Capital lease obligations1
 7
 6,017
 5,885
Other Liabilities   
Deferred income taxes3,985
 3,793
Regulatory liabilities189
 229
Asset retirement obligations2,094
 2,012
Unamortized investment tax credit136
 90
Nuclear decommissioning213
 194
Accrued pension liability — affiliates826
 1,008
Accrued postretirement liability — affiliates252
 269
Other75
 81
 7,770
 7,676
Commitments and Contingencies (Notes 5 and 11)
 
    
Shareholder’s Equity   
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding4,206
 4,206
Retained earnings1,926
 1,787
Accumulated other comprehensive income2
 2
Total Shareholder’s Equity6,134
 5,995
Total Liabilities and Shareholder’s Equity$21,012
 $20,489


September 30,December 31,
20222021
(In millions)
ASSETS
Current Assets
Cash and cash equivalents$26 $28 
Restricted cash25 7 
Accounts receivable (less allowance for doubtful accounts of $95 and $92, respectively)
Customer1,781 1,695 
Other199 135 
Inventories
Fuel and gas540 368 
Materials, supplies, and other508 490 
Derivative assets395 181 
Regulatory assets511 195 
Other325 218 
4,310 3,317 
Investments
Nuclear decommissioning trust funds1,764 2,071 
Investments in equity method investees169 187 
Other157 194 
2,090 2,452 
Property
Property, plant, and equipment38,550 37,083 
Accumulated depreciation and amortization(10,451)(10,139)
28,099 26,944 
Other Assets
Goodwill1,993 1,993 
Regulatory assets3,583 3,482 
Securitized regulatory assets214 — 
Intangible assets170 177 
Notes receivable316 310 
Derivative assets123 90 
Prepaid postretirement costs738 678 
Operating lease right-of-use assets91 97 
Other227 179 
7,455 7,006 
Total Assets$41,954 $39,719 
See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Electric Company

Consolidated Statements of Cash Flows (Unaudited)

 Nine Months Ended September 30,
 2017 2016
 (In millions)
Operating Activities   
Net Income$463
 $547
Adjustments to reconcile Net Income to Net cash from operating activities:   
Depreciation and amortization549
 539
Nuclear fuel amortization39
 44
Allowance for equity funds used during construction(14) (13)
Deferred income taxes248
 298
Changes in assets and liabilities:   
Accounts receivable, net(104) (135)
Inventories32
 18
Accounts payable32
 59
Accrued pension liability — affiliates(182) 9
Accrued postretirement liability — affiliates(17) (52)
Regulatory assets and liabilities223
 100
Other current and noncurrent assets and liabilities(174) (119)
Net cash from operating activities1,095
 1,295
Investing Activities   
Plant and equipment expenditures(1,103) (999)
Notes receivable, including affiliates5
 (64)
Proceeds from sale of nuclear decommissioning trust fund assets951
 1,135
Investment in nuclear decommissioning trust funds(936) (1,140)
Other(5) 40
Net cash used for investing activities(1,088) (1,028)
Financing Activities   
Issuance of long-term debt, net of issuance costs435
 355
Redemption of long-term debt(300) (10)
Repurchase of long-term debt—
 (59)
Short-term borrowings, net — affiliate(51) 37
Short-term borrowings, net — other249
 (272)
Dividends on common stock(324) (315)
Other(17) (2)
Net cash used for financing activities(8) (266)
Net Increase (Decrease) in Cash and Cash Equivalents(1) 1
Cash and Cash Equivalents at Beginning of Period13
 15
Cash and Cash Equivalents at End of Period$12
 $16
    
Supplemental disclosure of non-cash investing and financing activities   
Plant and equipment expenditures in accounts payable$112
 $118

See Combined Notes to Consolidated Financial Statements (Unaudited)


DTE Electric Company

Consolidated Statements of Changes in Shareholder's Equity (Unaudited)

     Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income  
 Common Stock     
 Shares Amount    Total
 (Dollars in millions, shares in thousands)
Balance, December 31, 2016138,632
 $1,386
 $2,820
 $1,787
 $2
 $5,995
Net Income—
 —
 —
 463
 —
 463
Dividends declared on common stock—
 —
 —
 (324) —
 (324)
Balance, September 30, 2017138,632
 $1,386
 $2,820
 $1,926
 $2
 $6,134


See Combined Notes to Consolidated Financial Statements (Unaudited)

7
Table of Contents
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)

September 30,December 31,
20222021
(In millions, except shares)
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$1,619 $1,414 
Accrued interest157 140 
Dividends payable171 171 
Short-term borrowings994 758 
Current portion long-term debt, including securitization bonds and finance leases1,425 2,874 
Derivative liabilities498 238 
Regulatory liabilities54 156 
Operating lease liabilities13 14 
Other535 581 
5,466 6,346 
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other16,354 13,629 
Securitization bonds192 — 
Junior subordinated debentures883 883 
Finance lease liabilities13 19 
17,442 14,531 
Other Liabilities  
Deferred income taxes2,313 2,163 
Regulatory liabilities2,731 3,106 
Asset retirement obligations3,425 3,162 
Unamortized investment tax credit183 158 
Derivative liabilities256 192 
Accrued pension liability268 339 
Accrued postretirement liability350 358 
Nuclear decommissioning272 321 
Operating lease liabilities69 74 
Other193 256 
10,060 10,129 
Commitments and Contingencies (Notes 6 and 13)
Equity
Common stock (No par value, 400,000,000 shares authorized, and 193,741,991 and 193,747,509 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively)5,337 5,379 
Retained earnings3,741 3,438 
Accumulated other comprehensive loss(98)(112)
Total DTE Energy Company Equity8,980 8,705 
Noncontrolling interests6 8 
Total Equity8,986 8,713 
Total Liabilities and Equity$41,954 $39,719 

See Combined Notes to Consolidated Financial Statements (Unaudited)
8
Table of Contents
DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
20222021
(In millions)
Operating Activities
Net Income$818 $598 
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization1,093 1,092 
Nuclear fuel amortization26 44 
Allowance for equity funds used during construction(20)(20)
Deferred income taxes15 (36)
Equity (earnings) losses of equity method investees15 (90)
Dividends from equity method investees4 78 
Loss on extinguishment of debt— 384 
Asset (gains) losses and impairments, net(4)46 
Changes in assets and liabilities:
Accounts receivable, net(150)(8)
Inventories(204)(209)
Prepaid postretirement benefit costs(60)(59)
Accounts payable228 225 
Accrued pension liability(71)(65)
Accrued postretirement liability(8)(9)
Derivative assets and liabilities77 309 
Regulatory assets and liabilities(552)270 
Other current and noncurrent assets and liabilities205 (178)
Net cash from operating activities1,412 2,372 
Investing Activities
Plant and equipment expenditures — utility(2,342)(2,591)
Plant and equipment expenditures — non-utility(55)(109)
Proceeds from sale of assets4 2 
Proceeds from sale of nuclear decommissioning trust fund assets707 854 
Investment in nuclear decommissioning trust funds(710)(853)
Distributions from equity method investees11 11 
Contributions to equity method investees(12)(7)
Notes receivable(13)(65)
Other(43)(22)
Net cash used for investing activities(2,453)(2,780)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs1,771 4,033 
Redemption of long-term debt(316)(3,242)
Short-term borrowings, net236 323 
Repurchase of common stock(55)(66)
Dividends paid on common stock(514)(631)
Contributions from noncontrolling interests3 35 
Distributions to noncontrolling interests(5)(33)
Prepayment costs for extinguishment of long-term debt— (361)
Transfer of cash to DT Midstream at separation— (37)
Other(63)(73)
Net cash from (used for) financing activities1,057 (52)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash16 (460)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period35 516 
Cash, Cash Equivalents, and Restricted Cash at End of Period$51 $56 
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable$331 $386 
Separation of DT Midstream net assets, excluding cash transferred$— $3,962 

See Combined Notes to Consolidated Financial Statements (Unaudited)
9
Table of Contents
DTE Energy Company
Consolidated Statements of Changes in Equity (Unaudited)

Retained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests
Common Stock
SharesAmountTotal
(Dollars in millions, shares in thousands)
Balance, December 31, 2021193,748 $5,379 $3,438 $(112)$8 $8,713 
Net Income— — 394 — — 394 
Dividends declared on common stock ($0.89 per Common Share)— — (171)— — (171)
Repurchase of common stock(465)(55)— — — (55)
Other comprehensive income, net of tax— — — 3 — 3 
Stock-based compensation, net distributions to noncontrolling interests, and other456 (14)1 — (4)(17)
Balance, March 31, 2022193,739 $5,310 $3,662 $(109)$4 $8,867 
Net Income— — 37 — — 37 
Dividends declared on common stock ($1.77 per Common Share)— — (343)— — (343)
Other comprehensive income, net of tax— — — 5 — 5 
Stock-based compensation, net contributions from noncontrolling interests, and other(3)13 (1)— 1 13 
Balance, June 30, 2022193,736 $5,323 $3,355 $(104)$5 $8,579 
Net Income— — 387 — — 387 
Other comprehensive income, net of tax— — — 6 — 6 
Stock-based compensation, net contributions from noncontrolling interests, and other6 14 (1)— 1 14 
Balance, September 30, 2022193,742 $5,337 $3,741 $(98)$6 $8,986 

See Combined Notes to Consolidated Financial Statements (Unaudited)

10
Table of Contents
DTE Energy Company
Consolidated Statements of Changes in Equity (Unaudited) — (Continued)

Retained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests
Common Stock
SharesAmountTotal
(Dollars in millions, shares in thousands)
Balance, December 31, 2020193,771 $5,406 $7,156 $(137)$164 $12,589 
Net Income— — 397 — — 397 
Dividends declared on common stock ($1.09 per Common Share)— — (210)— — (210)
Repurchase of common stock(430)(54)— — — (54)
Other comprehensive income, net of tax— — — 3 — 3 
Stock-based compensation, net distributions to noncontrolling interests, and other386 (8)(1)— (2)(11)
Balance, March 31, 2021193,727 $5,344 $7,342 $(134)$162 $12,714 
Net Income— — 179 — — 179 
Dividends declared on common stock ($1.91 per Common Share)— — (370)— — (370)
Other comprehensive income, net of tax— — — 2 — 2 
Stock-based compensation, net distributions to noncontrolling interests, and other25 17 (2)— (1)14 
Balance, June 30, 2021193,752 $5,361 $7,149 $(132)$161 $12,539 
Net Income (Loss)— — 25 — (3)22 
Repurchase of common stock(99)(12)— — — (12)
Other comprehensive income, net of tax— — — 6 — 6 
Stock-based compensation, net contributions from noncontrolling interests, and other74 17 1 — 5 23 
Separation of DT Midstream— — (3,858)10 (151)(3,999)
Balance, September 30, 2021193,727 $5,366 $3,317 $(116)$12 $8,579 

See Combined Notes to Consolidated Financial Statements (Unaudited)

11
Table of Contents
DTE Electric Company
Consolidated Statements of Operations (Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Operating Revenues — Utility operations$1,844 $1,700 $4,896 $4,468 
Operating Expenses
Fuel and purchased power — utility595 462 1,551 1,185 
Operation and maintenance403 410 1,167 1,122 
Depreciation and amortization304 278 899 810 
Taxes other than income85 83 257 245 
1,387 1,233 3,874 3,362 
Operating Income457 467 1,022 1,106 
Other (Income) and Deductions
Interest expense93 84 271 251 
Non-operating retirement benefits, net(1)— (2)(1)
Other income(15)(14)(46)(52)
Other expenses11 8 37 26 
88 78 260 224 
Income Before Income Taxes369 389 762 882 
Income Tax Expense6 45 12 92 
Net Income$363 $344 $750 $790 

See Combined Notes to Consolidated Financial Statements (Unaudited)
12
Table of Contents
DTE Electric Company
Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Net Income$363 $344 $750 $790 
Other comprehensive income— — — — 
Comprehensive Income$363 $344 $750 $790 

See Combined Notes to Consolidated Financial Statements (Unaudited)
13
Table of Contents
DTE Electric Company
Consolidated Statements of Financial Position (Unaudited)

September 30,December 31,
20222021
(In millions)
ASSETS
Current Assets
Cash and cash equivalents$8 $9 
Restricted Cash23 — 
Accounts receivable (less allowance for doubtful accounts of $53 and $54, respectively)
Customer756 694 
Affiliates32 36 
Other59 40 
Inventories
Fuel180 171 
Materials and supplies319 316 
Regulatory assets424 168 
Prepaid property tax125 57 
Other49 44 
1,975 1,535 
Investments
Nuclear decommissioning trust funds1,764 2,071 
Other39 44 
1,803 2,115 
Property
Property, plant, and equipment29,909 28,849 
Accumulated depreciation and amortization(7,928)(7,676)
21,981 21,173 
Other Assets
Regulatory assets3,110 2,968 
Securitized regulatory assets214 — 
Prepaid postretirement costs — affiliates439 402 
Operating lease right-of-use assets57 64 
Other188 148 
4,008 3,582 
Total Assets$29,767 $28,405 

See Combined Notes to Consolidated Financial Statements (Unaudited)
14
Table of Contents
DTE Electric Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)

September 30,December 31,
20222021
(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates$72 $83 
Other551 567 
Accrued interest91 95 
Current portion long-term debt, including securitization bonds and finance leases148 322 
Regulatory liabilities52 154 
Short-term borrowings
Affiliates78 53 
Other459 153 
Operating lease liabilities9 10 
Other196 206 
1,656 1,643 
Long-Term Debt (net of current portion)
Mortgage bonds, notes, and other9,380 8,591 
Securitization bonds192 — 
Finance lease liabilities2 7 
9,574 8,598 
Other Liabilities
Deferred income taxes2,876 2,741 
Regulatory liabilities1,860 2,221 
Asset retirement obligations3,186 2,932 
Unamortized investment tax credit183 158 
Nuclear decommissioning272 321 
Accrued pension liability — affiliates365 405 
Accrued postretirement liability — affiliates334 340 
Operating lease liabilities41 46 
Other71 97 
9,188 9,261 
Commitments and Contingencies (Notes 6 and 13)
Shareholder’s Equity
Common stock ($10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding for both periods)6,298 6,002 
Retained earnings3,051 2,901 
Total Shareholder’s Equity9,349 8,903 
Total Liabilities and Shareholder’s Equity$29,767 $28,405 

See Combined Notes to Consolidated Financial Statements (Unaudited)
15
Table of Contents
DTE Electric Company
Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended September 30,
20222021
(In millions)
Operating Activities
Net Income$750 $790 
Adjustments to reconcile Net Income to Net cash from operating activities:
Depreciation and amortization899 810 
Nuclear fuel amortization26 44 
Allowance for equity funds used during construction(18)(18)
Deferred income taxes11 90 
Changes in assets and liabilities:
Accounts receivable, net(77)(25)
Inventories(26)(19)
Accounts payable17 40 
Prepaid postretirement benefit costs — affiliates(37)(36)
Accrued pension liability — affiliates(40)(34)
Accrued postretirement liability — affiliates(6)(6)
Regulatory assets and liabilities(563)229 
Other current and noncurrent assets and liabilities166 (259)
Net cash from operating activities1,102 1,606 
Investing Activities
Plant and equipment expenditures(1,853)(2,152)
Proceeds from sale of assets4 — 
Proceeds from sale of nuclear decommissioning trust fund assets707 854 
Investment in nuclear decommissioning trust funds(710)(853)
Notes receivable and other(42)(22)
Net cash used for investing activities(1,894)(2,173)
Financing Activities
Issuance of long-term debt, net of discount and issuance costs1,118 986 
Redemption of long-term debt(316)(321)
Capital contribution by parent company296 273 
Short-term borrowings, net — affiliate25 (69)
Short-term borrowings, net — other306 159 
Dividends paid on common stock(600)(441)
Other(15)(18)
Net cash from financing activities814 569 
Net Increase in Cash, Cash Equivalents, and Restricted Cash22 2 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period9 16 
Cash, Cash Equivalents, and Restricted Cash at End of Period$31 $18 
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable$242 $307 

See Combined Notes to Consolidated Financial Statements (Unaudited)
16
Table of Contents
DTE Electric Company
Consolidated Statements of Changes in Shareholder's Equity (Unaudited)

Additional Paid-in CapitalRetained Earnings
Common Stock
SharesAmountTotal
(Dollars in millions, shares in thousands)
Balance, December 31, 2021138,632 $1,386 $4,616 $2,901 $8,903 
Net Income— — — 201 201 
Dividends declared on common stock— — — (277)(277)
Balance, March 31, 2022138,632 $1,386 $4,616 $2,825 $8,827 
Net Income— — — 186 186 
Dividends declared on common stock— — — (162)(162)
Balance, June 30, 2022138,632 $1,386 $4,616 $2,849 $8,851 
Net Income— — — 363 363 
Dividends declared on common stock— — — (161)(161)
Capital contribution by parent company— — 296 — 296 
Balance, September 30, 2022138,632 $1,386 $4,912 $3,051 $9,349 

Additional Paid-in CapitalRetained Earnings
Common Stock
SharesAmountTotal
(Dollars in millions, shares in thousands)
Balance, December 31, 2020138,632 $1,386 $4,061 $2,623 $8,070 
Net Income— — — 208 208 
Dividends declared on common stock— — — (147)(147)
Balance, March 31, 2021138,632 $1,386 $4,061 $2,684 $8,131 
Net Income— — — 238 238 
Dividends declared on common stock— — — (146)(146)
Balance, June 30, 2021138,632 $1,386 $4,061 $2,776 $8,223 
Net Income— — — 344 344 
Dividends declared on common stock— — — (148)(148)
Capital contribution by parent company273 273 
Balance, September 30, 2021138,632 $1,386 $4,334 $2,972 $8,692 

See Combined Notes to Consolidated Financial Statements (Unaudited)

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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited)

Index of Combined Notes to Consolidated Financial Statements (Unaudited)
The Combined Notes to Consolidated Financial Statements (Unaudited) are a combined presentation for DTE Energy and DTE Electric. The following list indicates the Registrant(s) to which each note applies:
Note 1Organization and Basis of PresentationDTE Energy and DTE Electric
Note 2Significant Accounting PoliciesDTE Energy and DTE Electric
Note 3New Accounting PronouncementsDTE Energy and DTE Electric
Note 4Discontinued OperationsDTE Energy
Note 5RevenueDTE Energy and DTE Electric
Note 6Regulatory MattersDTE Energy and DTE Electric
Note 7Earnings per ShareDTE Energy
Note 8Fair ValueDTE Energy and DTE Electric
Note 9Financial and Other Derivative InstrumentsDTE Energy and DTE Electric
Note 10Long-Term DebtDTE Energy and DTE Electric
Note 11Short-Term Credit Arrangements and BorrowingsDTE Energy and DTE Electric
Note 12LeasesDTE Energy
Note 13Commitments and ContingenciesDTE Energy and DTE Electric
Note 14Retirement Benefits and Trusteed AssetsDTE Energy and DTE Electric
Note 15Segment and Related InformationDTE Energy
Note 1Organization and Basis of PresentationDTE Energy and DTE Electric
Note 2Significant Accounting PoliciesDTE Energy and DTE Electric
Note 3New Accounting PronouncementsDTE Energy and DTE Electric
Note 4AcquisitionDTE Energy
Note 5Regulatory MattersDTE Energy and DTE Electric
Note 6Earnings per ShareDTE Energy
Note 7Fair ValueDTE Energy and DTE Electric
Note 8Financial and Other Derivative InstrumentsDTE Energy and DTE Electric
Note 9Long-Term DebtDTE Energy and DTE Electric
Note 10Short-Term Credit Arrangements and BorrowingsDTE Energy and DTE Electric
Note 11Commitments and ContingenciesDTE Energy and DTE Electric
Note 12Retirement Benefits and Trusteed AssetsDTE Energy and DTE Electric
Note 13Segment and Related InformationDTE Energy


NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION
Corporate Structure
DTE Energy owns the following businesses:
•DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.22.3 million customers in southeastern Michigan;
•DTE Gas is a public utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million customers throughout Michigan and the sale of storage and transportation capacity; and
•Other businesses include (1) DTE Vantage, which is primarily involved in 1)renewable natural gas pipelines, gathering,projects and storage;providing industrial energy services and was formerly involved in reduced emissions fuel projects until 2022, and 2) power and industrial projects; and 3) energy marketing and trading operations.
DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businesses under DTE Energy, are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, the EPA, the MDEQ,EGLE, and for DTE Energy, the CFTC.CFTC and CARB.
Basis of Presentation
The Consolidated Financial Statements should be read in conjunction with the Combined Notes to Consolidated Financial Statements included in the combined DTE Energy and DTE Electric 20162021 Annual Report on Form 10-K.
The accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the United States of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.
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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
The Consolidated Financial Statements are unaudited but, in the Registrants' opinions, include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Combined Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2017.

17

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

2022.
The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated Financial Statements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.
Certain prior year balances for the Registrants were reclassified to match the current year's Consolidated Financial Statements presentation.
Separation of DT Midstream
On July 1, 2021, DTE Energy completed the separation of DT Midstream, its former natural gas pipeline, storage and gathering non-utility business. Financial results of DT Midstream in the prior period are presented as Income from discontinued operations, net of taxes on DTE Energy's Consolidated Statements of Operations.
No adjustments were made to the historical activity within the Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows, or the Consolidated Statements of Changes in Equity. Unless noted otherwise, discussion in the Notes to the Consolidated Financial Statements relate to continuing operations. Refer to Note 4 to the Consolidated Financial Statements, “Discontinued Operations,” for additional information.
Principles of Consolidation
The Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority owned investments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. When the Registrants do not influence the operating policies of an investee, the equity investment is valued at cost method is used.minus any impairments, if applicable. These Consolidated Financial Statements also reflect the Registrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.
The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are the primary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed.
Legal entities within the DTE Energy's Power and Industrial ProjectsVantage segment enter into long-term contractual arrangements with customers to supply energy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers, with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primary beneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore are generally accounted for under the equity method.
DTE Energy owns a 55% interest in SGG, which owns and operates midstream natural gas assets. SGG has contracts through which certain construction risk is designed to pass-through to the customers, with DTE Energy retaining operational and customer default risk. SGG is a VIE with DTE Energy as the primary beneficiary. See Note 4 to the Consolidated Financial Statements, "Acquisition," for more information.
The Registrants hold variable interests in NEXUS, including a 50% ownership interest. NEXUS is a joint venture which is in the process of constructing a 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio, Michigan, and Ontario market centers. NEXUS is a VIE as it has insufficient equity at risk to finance its activities. The Registrants are not the primary beneficiaries, as the power to direct significant activities is shared between the owners of the equity interests. DTE Energy accounts for NEXUS under the equity method.
The Registrants hold ownership interests in certain limited partnerships. The limited partnerships include investment funds which support regional development and economic growth, as well as,and an operational business providing energy-related products. These entities are generally VIEs as a result of certain characteristics of the limited partnership voting rights. The ownership interests are accounted for under the equity method as the Registrants are not the primary beneficiaries.
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DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEs through certain of its long-term purchase contracts. As of September 30, 2017,2022, the carrying amount of assets and liabilities in DTE Energy's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capital accounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As of September 30, 2017,2022, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTE Electric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financial support associated with these long-term contracts. There is no significantmaterial potential exposure to loss as a result of DTE Energy's variable interests through these long-term purchase and sale contracts. In addition, there is no significantmaterial potential exposure to loss as a result of DTE Electric's variable interests through these long-term purchase contracts.

18

DTE Energy Company —In the first quarter 2022, DTE Electric Company
Combined Notesfinanced regulatory assets for previously deferred costs related to Consolidated Financial Statements (Unaudited) — (Continued)

the River Rouge generation plant and tree trimming surge program through the sale of bonds by a wholly-owned special purpose entity, DTE Securitization. DTE Securitization is a VIE. DTE Electric has the power to direct the most significant activities of DTE Securitization, including performing servicing activities such as billing and collecting surcharge revenue. Accordingly, DTE Electric is the primary beneficiary and DTE Securitization is consolidated by the Registrants.
The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position and in Note 11 to the Consolidated Financial Statements, "Commitments and Contingencies," related to the REF guarantees and indemnities.Position. For non-consolidated VIEs, the maximum risk exposure of the Registrants is generally limited to their investment, notes receivable, and future funding commitments, and amounts which DTE Energy has guaranteed. See Note 11 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of the NEXUS guarantee arrangements.commitments.
The following table summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of September 30, 20172022 and December 31, 2016.2021. All assets and liabilities of a consolidated VIE are presented where it has been determined that aconsolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. VIEs, in which DTE Energy holds a majority voting interest and is the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligations have been excluded from the table below.
 September 30, 2017 December 31, 2016
 
SGG(a)
 Other Total 
SGG(a)
 Other Total
 (In millions)
ASSETS           
Cash and cash equivalents$31
 $13
 $44
 $36
 $27
 $63
Restricted cash—
 8
 8
 —
 7
 7
Accounts receivable11
 30
 41
 8
 34
 42
Inventories3
 84
 87
 3
 112
 115
Property, plant, and equipment, net397
 70
 467
 398
 76
 474
Goodwill25
 —
 25
 17
 —
 17
Intangible assets576
 —
 576
 586
 —
 586
Other current and long-term assets1
 —
 1
 1
 1
 2
 $1,044
 $205
 $1,249
 $1,049
 $257
 $1,306
            
LIABILITIES           
Accounts payable and accrued current liabilities$26
 $29
 $55
 $19
 $32
 $51
Current portion long-term debt, including capital leases—
 3
 3
 —
 5
 5
Mortgage bonds, notes, and other—
 2
 2
 —
 5
 5
Other current and long-term liabilities1
 15
 16
 2
 15
 17
 $27
 $49
 $76
 $21
 $57
 $78

(a)Amounts shown are 100% of SGG's assets and liabilities, of which DTE Energy owns 55%.
Amounts for DTE Energy's non-consolidatedthe Registrants' consolidated VIEs are as follows:
September 30, 2022December 31, 2021
DTE Energy
DTE Electric(a)
DTE Energy
(In millions)
ASSETS
Cash and cash equivalents$10 $— $11 
Restricted cash23 23 6 
Securitized regulatory assets214 214 — 
Notes receivable80 — 70 
Other current and long-term assets14 2 8 
$341 $239 $95 
LIABILITIES
Short-term borrowings$79 $— $75 
Securitization bonds(b)
232 232 — 
Other current and long-term liabilities17 11 5 
$328 $243 $80 

(a)DTE Electric amounts reflect DTE Securitization, which was a new VIE beginning the first quarter of 2022. See Note 6 to the Consolidated Financial Statements, "Regulatory Matters."
 September 30, 2017 December 31, 2016
 (In millions)
Investments in equity method investees$716
 $509
Notes receivable$17
 $15
Future funding commitments$688
 $692


(b)Includes $40 million reported in Current portion of long-term debt on the Registrants' Consolidated Statements of Financial Position for the period ended September 30, 2022.
19
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DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Amounts for DTE Energy's non-consolidated VIEs are as follows:
September 30, 2022December 31, 2021
(In millions)
Investments in equity method investees$141 $172 
Notes receivable$15 $13 
Future funding commitments$2 $3 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
Other Income
The following is a summary of DTE Energy's Other income:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Contract services$7 $6 $21 $21 
Allowance for equity funds used during construction6 7 20 20 
Income from REF entities— 57 — 102 
Gains from rabbi trust securities(a)
— — — 4 
Equity earnings (losses) of equity method investees— 17 (15)31 
Other3 3 9 9 
$16 $90 $35 $187 

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Equity earnings of equity method investees$26
 $14
 $77
 $49
Income from REF entities20
 20
 60
 59
Gains from trading securities6
 5
 19
 15
Allowance for equity funds used during construction5
 5
 17
 15
Contract services9
 5
 17
 16
Other8
 2
 14
 6
 $74
 $51
 $204
 $160
(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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Contract services$7 $6 $21 $21 
Allowance for equity funds used during construction6 6 18 18 
Gains from rabbi trust securities allocated from DTE Energy(a)
— — — 4 
Other2 2 7 9 
$15 $14 $46 $52 

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Gains from trading securities allocated from DTE Energy$6
 $5
 $19
 $15
Contract services9
 5
 18
 16
Allowance for equity funds used during construction4
 4
 14
 13
Equity earnings of equity method investees—
 —
 1
 1
Other2
 1
 5
 3
 $21
 $15
 $57
 $48
(a)Losses from rabbi trust securities are recorded separately to Other expenses on the Consolidated Statements of Operations.
Changes in Accumulated Other Comprehensive Income (Loss)
ForComprehensive income (loss) is the threechange in common shareholders' equity during a period from transactions and nine months ended September 30, 2017 and 2016, reclassifications out ofevents from non-owner sources, including Net Income. The amounts recorded to Accumulated other comprehensive income (loss) for DTE Energy include changes in benefit obligations, consisting of deferred actuarial losses and prior service costs, unrealized gains and losses from derivatives accounted for as cash flow hedges, and foreign currency translation adjustments. DTE Energy releases income tax effects from accumulated other comprehensive income when the Registrants were not material. circumstances upon which they are premised cease to exist.
Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity.Equity, if any. For the three and nine months ended September 30, 2022 and 2021, reclassifications out of Accumulated other comprehensive income (loss) were not material.
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DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
Income Taxes
The interim effective tax raterates of the Registrants are as follows:
Effective Tax Rate
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
DTE Energy2 %186 %— %(34)%
DTE Electric2 %12 %2 %10 %
 Effective Tax Rate
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
DTE Energy22% 25% 22% 25%
DTE Electric35% 35% 35% 36%
These tax rates are affected by estimated annual permanent items, production tax credits, regulatory adjustments, and discrete items that may occur in any given period, but are not consistent from period to period. DTE Energy's effective tax rates in 2021 were significantly impacted by pre-tax losses in the third quarter, driven primarily by the loss on extinguishment of debt and reclassification of DT Midstream earnings to discontinued operations.
The 3%184% decrease in DTE Energy's effective tax rate for the three months ended September 30, 20172022 was primarily due to higher forecasteda deferred tax remeasurement of 133% in 2021, production tax credits of 57%, and amortization of the TCJA regulatory liability of 32%, partially offset by a valuation allowance of 28% in 2017. 2021 and recognition of a deferred intercompany gain of 13% in 2021.
The 3% decrease34% increase in DTE Energy'sEnergy’s effective tax rate for the nine months ended September 30, 20172022 was primarily due to higher forecasteda deferred tax remeasurement of 23% in 2021 and closure of the REF business and resulting decrease in production tax credits of 17%, partially offset by a valuation allowance of 5% in 2017 and $13 million of excess tax benefits on stock-based compensation recognized2021.
The 10% decrease in accordance with ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which was adopted effective July 1, 2016.

20

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Energy's total amount of unrecognized tax benefits as of September 30, 2017 and December 31, 2016 was $10 million. The amount, if recognized, that would favorably impact DTE Energy'sElectric's effective tax rate as offor the three months ended September 30, 20172022 and December 31, 2016 was $6 million and $7 million, respectively.the 8% decrease in DTE Electric's total amount of unrecognizedeffective tax benefits as ofrate for the nine months ended September 30, 2017 and December 31, 20162022 were primarily due to higher amortization of the TCJA regulatory liability, which was $13 million, of which $8 million, if recognized, would favorably impact its effective tax rate. The Registrants do not anticipate any material changesdriven by the accelerated amortization approved in DTE Electric's prior year accounting applications to the unrecognized tax benefits in the next twelve months.MPSC.
DTE Electric had income tax receivables with DTE Energy related to federal and state taxes of $9$31 million and $33 million at September 30, 20172022 and December 31, 2016.2021, respectively, which are included in Accounts Receivable - Affiliates on the DTE Electric Consolidated Statements of Financial Position. DTE Electric also had income tax payables with DTE Energy related to state taxes of $2 million at December 31, 2021, which are included in Accounts Payable - Affiliates on the DTE Electric Consolidated Statements of Financial Position.
DTE Energy and DTE Electric had respective unrecognized tax benefits of $10 million and $13 million related to state exposures at September 30, 2022, which are included in Current Liabilities - Other on the Registrants' Consolidated Statements of Financial Position. Of these benefits, the Registrants believe it is reasonably possible that $8 million at DTE Energy and $9 million at DTE Electric will be recognized in the next 12 months. If recognized, these benefits would favorably impact effective tax rates and reduce tax expense in future periods by $6 million at DTE Energy and $7 million at DTE Electric, net of federal benefit.
During the third quarter 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA included several new tax provisions, including a corporate alternative minimum tax and various tax incentives for energy and climate initiatives. Enactment of this legislation did not impact the Registrants' financial statements for the period ended September 30, 2022. The Registrants do not expect the legislation to have a significant impact in the near term and continue to assess any potential long-term impacts.
Unrecognized Compensation Costs
As of September 30, 2017,2022, DTE Energy had $71$81 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.351.4 years.
Allocated Stock-Based Compensation
DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $10$9 million and $7$10 million for the three months ended September 30, 20172022 and 2016,2021, respectively, while such allocation was $28$30 million and $26$35 million for the nine months ended September 30, 20172022 and 2016,2021, respectively.

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS
Recently Adopted Pronouncements
In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory. The ASU replaces the current lower of cost or market test with a lower of cost or net realizable value test when cost is determined on a first-in, first-out or average cost basis. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. It was applied prospectively. The Registrants adopted this ASU at January 1, 2017. The adoption of the ASU did not have a significant impact on the Registrants' Consolidated Financial Statements.
Recently Issued Pronouncements
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also requires expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is to be applied retrospectively. The Registrants will adopt the standard effective January 1, 2018 using the modified retrospective approach. The Registrants are finalizing the assessment of the impact of the ASU, as amended, on their Consolidated Financial Statements. The ASU is not expected to significantly affect the Registrants' results of operations. The Registrants will continue to evaluate the impact of the ASU on existing revenue recognition policies and procedures. Industry-related issues being vetted through the final stages of the American Institute of Certified Public Accountants' Power and Utilities Industry Task Force process will continue to be monitored. The ASU will result in additional disclosures for revenue compared to the current guidance. Accordingly, the Registrants are evaluating information that would be useful for users of the Consolidated Financial Statements.

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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash includes funds held in separate bank accounts and principally consists of amounts at DTE Securitization to pay for debt service and other qualified costs. Restricted cash designated for payments within one year is classified as a Current Asset.
Financing Receivables
Financing receivables are primarily composed of trade receivables, notes receivable, and unbilled revenue. The Registrants' financing receivables are stated at net realizable value.
The Registrants monitor the credit quality of their financing receivables on a regular basis by reviewing credit quality indicators and monitoring for trigger events, such as a credit rating downgrade or bankruptcy. Credit quality indicators include, but are not limited to, ratings by credit agencies where available, collection history, collateral, counterparty financial statements and other internal metrics. Utilizing such data, the Registrants have determined three internal grades of credit quality. Internal grade 1 includes financing receivables for counterparties where credit rating agencies have ranked the counterparty as investment grade. To the extent credit ratings are not available, the Registrants utilize other credit quality indicators to determine the level of risk associated with the financing receivable. Internal grade 1 may include financing receivables for counterparties for which credit rating agencies have ranked the counterparty as below investment grade; however, due to favorable information on other credit quality indicators, the Registrants have determined the risk level to be similar to that of an investment grade counterparty. Internal grade 2 includes financing receivables for counterparties with limited credit information and those with a higher risk profile based upon credit quality indicators. Internal grade 3 reflects financing receivables for which the counterparties have the greatest level of risk, including those in bankruptcy status.
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 September 30, 2022.
DTE EnergyDTE Electric
Year of Origination
202220212020 and PriorTotal2022 and Prior
(In millions)
Notes receivable
Internal grade 1$— $— $21 $21 $17 
Internal grade 225 3 16 44 — 
Total notes receivable(a)
$25 $3 $37 $65 $17 
Net investment in leases
Net investment in leases, internal grade 1$— $— $38 $38 $— 
Net investment in leases, internal grade 264 — 189 253 — 
Total net investment in leases(a)
$64 $— $227 $291 $— 

(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 on the Consolidated Statements of Financial Position.
The allowance for doubtful accounts on accounts receivable for the utility entities is generally calculated using an aging approach that utilizes rates developed in reserve studies. DTE Electric and DTE Gas establish an allowance for uncollectible accounts based on historical losses and management's assessment of existing and future economic conditions, customer trends and other factors. Customer accounts are generally considered delinquent if the amount billed is not received by the due date, which is typically in 21 days, however, factors such as assistance programs may delay aggressive action. DTE Electric and DTE Gas generally assess late payment fees on trade receivables based on past-due terms with customers. Customer accounts are written off when collection efforts have been exhausted. The time period for write-off is 150 days after service has been terminated.
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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
The customer allowance for doubtful accounts for non-utility businesses and other receivables for both utility and non-utility businesses is generally calculated based on specific review of probable future collections based on receivable balances generally in excess of 30 days. Existing and future economic conditions, customer trends and other factors are also considered. Receivables are written off on a specific identification basis and determined based upon the specific circumstances of the associated receivable.
Notes receivable for DTE Energy are primarily comprised of finance lease receivables and loans that are included in Notes Receivable and Other current assets on DTE Energy's Consolidated Statements of Financial Position. Notes receivable for DTE Electric are primarily comprised of loans.
Notes receivable are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. The Registrants cease accruing interest (nonaccrual status), consider a note receivable impaired, and establish an allowance for credit loss when it is probable that all principal and interest amounts due will not be collected in accordance with the contractual terms of the note receivable. In February 2016,determining the allowance for credit losses for notes receivable, the Registrants consider the historical payment experience and other factors that are expected to have a specific impact on the counterparty's ability to pay including existing and future economic conditions.
Cash payments received on nonaccrual status notes receivable, that do not bring the account contractually current, are first applied to the contractually owed past due interest, with any remainder applied to principal. Accrual of interest is generally resumed when the note receivable becomes contractually current.
The following tables present a roll-forward of the activity for the Registrants' financing receivables credit loss reserves:
DTE EnergyDTE Electric
Trade accounts receivableOther receivablesTotalTrade and other accounts receivable
(In millions)
Beginning reserve balance, January 1, 2022$89 $3 $92 $54 
Current period provision41 — 41 25 
Write-offs charged against allowance(72)— (72)(47)
Recoveries of amounts previously written off34 — 34 21 
Ending reserve balance, September 30, 2022$92 $3 $95 $53 
DTE EnergyDTE Electric
Trade accounts receivableOther receivablesTotalTrade and other accounts receivable
(In millions)
Beginning reserve balance, January 1, 2021$101 $3 $104 $57 
Current period provision53 1 54 36 
Write-offs charged against allowance(126)(1)(127)(77)
Recoveries of amounts previously written off61 — 61 38 
Ending reserve balance, December 31, 2021$89 $3 $92 $54 
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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
DTE Energy$12 $7 $46 $42 
DTE Electric$12 $10 $28 $26 
There are no material amounts of past due financing receivables for the Registrants as of September 30, 2022.

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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS
Recently Adopted Pronouncements
In July 2021, the FASB issued ASU No. 2016-02, 2021-05, Leases (Topic 842), : Lessors – Certain Leases with Variable Lease Payments. The amendments in this update modify lease classification requirements for lessors, providing that lease contracts with variable lease payments that do not depend on a replacement of Leases (Topic 840). This guidance requiresreference index or a lessee to account forrate should be classified as operating leases if they would have been classified as financea sales-type or operating leases. Both types of leases will resultdirect financing lease and resulted in the lessee recognizingrecognition of a right-of-use asset and a correspondingselling loss at lease liability on its balance sheet, with differing methodology for income statement recognition. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will classify leases to determine how to recognize lease-related revenue and expense. This standard is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted.commencement. The Registrants do not plan to early adoptadopted the standard. A modified retrospective approach is required for leases existing or entered into afterASU effective January 1, 2022 using the beginningprospective approach. The adoption of the earliest comparative period inASU did not have a significant impact on the Registrants' Consolidated Financial Statements, with certain practical expedients permitted. The Registrants expect an increase in assets and liabilities, however, they are currently assessing the impact of this ASU on their Consolidated Financial Statements. This assessment includes monitoring unresolved utility industry implementation guidance. The Registrants have conducted outreach activities across their lines of business and have begun implementation of a third-party software tool that will assist with the initial adoption and ongoing compliance.
In June 2016,October 2021, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses2021-08, Business Combinations (Topic 326)805): Measurement of Credit Losses on Financial InstrumentsAccounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update replacerequire contract assets and contract liabilities acquired in a business combination to be recognized and measured by the incurred loss impairment methodologyacquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The Registrants early adopted the ASU effective January 1, 2022, which had no impact on the Registrants' Consolidated Financial Statements for the current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entitiesperiod. The Registrants will apply the new guidance as a cumulative-effect adjustmentprospectively to retained earnings asany future business combinations.
Recently Issued Pronouncements
In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Loss (“CECL”) model under ASC 326 and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. Additionally, the amendments require the disclosure of current period gross write-offs for financing receivables and net investment in leases by year of origination in the beginning of the first reporting period in which the guidance is adopted.vintage disclosures. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2019,2022, and interim periods therein. Early adoption is permitted. The Registrants will apply the guidance prospectively after the effective date.
In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify that contractual sale restrictions should not be considered when measuring the fair value of equity securities subject to such restrictions. The amendments also require the disclosure of the fair value of such equity securities, the nature and remaining duration of the restrictions, and the circumstances leading to a lapse in the restrictions. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2023, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.
In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The standard will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The ASU is effective for the Registrants for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Registrants will adopt the standard effective January 1, 2018. The components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits are disclosed in Note 12 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets." The ASU will not have a significant impact on the Registrants' Consolidated Financial Statements.

NOTE 4 — ACQUISITION
Gas Storage and Pipelines Acquisition
Effective October 1, 2016, DTE Energy closed on the purchase of midstream natural gas assets in support of the strategy to continue to grow and earn competitive returns for shareholders. DTE Energy purchased 100% of AGS, located in Pennsylvania and West Virginia, and 40% of SGG, located in West Virginia, from M3 Midstream. In addition, DTE Energy purchased 15% of SGG from Vega Energy Partners, resulting in 55% total ownership of SGG by DTE Energy.
Consideration transferred for the entities acquired was approximately $1.2 billion paid in cash and the assumption of SGG debt of $204 million. The $204 million of debt was comprised of DTE Energy's 55% interest in SGG of $112 million and 45% related to noncontrolling interest partners of $92 million. The acquisition was financed through the issuance of equity units and senior notes. These entities are part of DTE Energy's Gas Storage and Pipelines segment which owns and manages a network of natural gas gathering, transmission, and storage facilities servicing the Midwest, Ontario, and Northeast markets. SGG has been deemed to be a VIE, and DTE Energy is the primary beneficiary. Thus, SGG's assets and liabilities are included in DTE Energy's Consolidated Statements of Financial Position. See Note 1 to the Consolidated Financial Statements, "Organization and Basis of Presentation," for more information.

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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 4 — DISCONTINUED OPERATIONS
Separation of DT Midstream
On July 1, 2021, DTE Energy applied purchase accounting tocompleted the acquired entities. The excess purchase price over the fair valueseparation of net assets acquired was classified as goodwill. September 30, 2017 marked the expiration of the one-year period from the acquisition to revise the fair value of assets acquiredDT Midstream, its former natural gas pipeline, storage, and liabilities assumed. As of September 30, 2017, the final working capital adjustments and certain indemnification claims were settled. The settlements and final revisions to the purchase price allocation resulted in purchase accounting adjustments of approximately $7 million of additional goodwill. The factors contributing to the recognition of goodwill were based on various strategic benefits that are expected to be realized from the AGS and SGG acquisition. The acquisition provides DTE Energy with a platform for midstream growth and access to further investment opportunities in the Appalachian basin, an additional connection to the NEXUS Pipeline which should drive incremental volumes on the NEXUS Pipeline, and a new set of producer relationships that may lead to more partnering opportunities. The goodwill is expected to be deductible for income tax purposes.
The final allocation of the purchase price was based on estimated fair values of the AGS and SGG assets acquired and liabilities assumed at the date of acquisition, October 1, 2016. The components of the final purchase price allocation, inclusive of purchase accounting adjustments, are as follows:
 (In millions)
Assets 
Cash$83
Accounts receivable24
Inventory6
Property, plant, and equipment, net719
Goodwill275
Customer relationship intangibles770
Other current assets1
 $1,878
Liabilities 
Accounts payable$19
Other current liabilities11
Long-term debt204
Other long-term liabilities20
 $254
Less: Noncontrolling interest392
Total cash consideration$1,232
The intangible assets recorded as a result of the acquisition pertain to existing customer relationships, which were valued at approximately $770 million as of the acquisition date. The fair value of the intangible assets acquired was estimated by applying the income approach. The income approach was based upon discounted projected future cash flows attributable to the existing contracts and agreements. The fair value measurement was based on significant unobservable inputs, including management estimates and assumptions, and thus represents a Level 3 measurement, pursuant to the applicable accounting guidance. Key estimates and inputs included revenue and expense projections and discount rates based on the risks associated with the entities. The intangible assets are amortized on a straight-line basis over a period of 40 years, which is based on the number of years the assets are expected to economically contribute to thegathering non-utility business. The expected economic benefit incorporates existing customer contracts with a weighted-average amortization lifetable below reflects the financial results of 10 years and expected renewal rates, based on the estimated volume and production lives of gas resources in the region.
The fair value of the noncontrolling interest in the table above was derived based on the purchase price DTE Energy paid for the 55% interest in SGG.
DTE Energy evaluated pre-acquisition contingencies relating to the purchaseDT Midstream that existed as of the acquisition date. Based on the evaluation, DTE Energy determined that $30 million of certain pre-acquisition contingencies, related to repairing existing rights-of-way, were probable in nature and estimable as of the acquisition date. Accordingly, DTE Energy recorded its best estimates for these contingencies as part of purchase accounting, which are included in discontinued operations within the Other currentConsolidated Statements of Operations. These results include the impact of tax-related adjustments and long-term liabilities inall transaction costs related to the purchase price allocation table above.separation. General corporate overhead costs have been excluded and no portion of corporate interest costs were allocated to discontinued operations.

Three Months Ended September 30,Nine Months Ended September 30,
20212021
(In millions)
Operating Revenues — Non-utility operations$— $405 
Operating Expenses
Cost of gas and other — non-utility— 15 
Operation and maintenance(a)
30 124 
Depreciation and amortization— 82 
Taxes other than income— 13 
Asset (gains) losses and impairments, net— 17 
30 251 
Operating Income (Loss)(30)154 
Other (Income) and Deductions
Interest expense— 50 
Interest income— (4)
Other income— (62)
— (16)
Income (Loss) from Discontinued Operations Before Income Taxes(30)170 
Income Tax Expense3 58 
Net Income (Loss) from Discontinued Operations, Net of Taxes(33)112 
Less: Net Income Attributable to Noncontrolling Interests— 6 
Net Income (Loss) from Discontinued Operations$(33)$106 

(a)Includes separation transaction costs of $30 million and $59 million for the three and nine months ended September 30, 2021, respectively, for various legal, accounting and other professional services fees.
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DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Energy incurred $15 millionThe following table is a summary of direct transaction costs for the year ended December 31, 2016. These costs were primarily related to advisory feessignificant non-cash items and capital expenditures of discontinued operations included in Operation and maintenance in DTE Energy's 2016 Consolidated Statements of Operations.Cash Flows:
DTE Energy's 2016 Consolidated Statements of Operations included Operating Revenues — Non-utility operations of $39 million and Net Income of $4 million associated with the acquired entities for the three-month period following the acquisition date, excluding the $15 million transaction costs described above. The pro forma financial information was not presented for DTE Energy because the effects of the acquisition were not material to the Consolidated Statements of Operations.
Nine Months Ended September 30,
2021
(In millions)
Operating Activities
Depreciation and amortization$82 
Deferred income taxes57 
Equity earnings of equity method investees(59)
Asset (gains) losses and impairments, net19 
Investing Activities
Plant and equipment expenditures — non-utility(60)


NOTE 5 — REGULATORY MATTERSREVENUE
2016 Electric Rate Case FilingDisaggregation of Revenue
The following is a summary of revenues disaggregated by segment for DTE Energy:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Electric(a)
Residential$882 $885 $2,273 $2,262 
Commercial541 533 1,505 1,452 
Industrial167 167 498 473 
Other(b)
257 117 631 290 
Total Electric operating revenues$1,847 $1,702 $4,907 $4,477 
Gas
Gas sales$128 $95 $955 $726 
End User Transportation42 38 195 171 
Intermediate Transportation15 16 60 59 
Other(b)
45 44 148 114 
Total Gas operating revenues$230 $193 $1,358 $1,070 
Other segment operating revenues
DTE Vantage$227 $372 $626 $1,132 
Energy Trading$3,024 $1,602 $8,059 $4,208 

(a)Revenues generally represent those of DTE Electric, filed a rate case withexcept $3 million and $2 million of Other revenues related to DTE Sustainable Generation for the MPSC on February 1, 2016 requesting an increase in base rates of $344three months ended September 30, 2022 and 2021, respectively, and $11 million and $9 million for the nine months ended September 30, 2022 and 2021, respectively.
(b)Includes revenue adjustments related to various regulatory mechanisms, including the PSCR at the Electric segment and GCR at the Gas segment. Revenues related to these mechanisms may vary based on a projected twelve-month period ending July 31, 2017. On August 1, 2016, DTE Electric self-implemented a base rate increase of $245 million. On January 31, 2017, the MPSC issued an order approving an annual revenue increase of $184 million for service rendered on or after February 7, 2017. The MPSC authorized a return on equity of 10.1%. On April 28, 2017, DTE Electric filed to refund its customers their pro-rata share of the revenue collected through the self-implementation surcharge in effect from August 1, 2016 through February 7, 2017. On September 15, 2017, the MPSC approved a settlement authorizing DTE Electric to refund its customers $38.5 million of the self-implementation surcharge during the months of October through December 2017. DTE has recorded a refund liability for the settlement as of September 30, 2017.
2017 Electric Rate Case Filing
DTE Electric filed a rate case with the MPSC on April 19, 2017 requesting an increase in base rates of $231 million based on a projected twelve-month period ending October 31, 2018. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructure investments, environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operationthe cost of fuel, purchased power, and maintenance expenses, and working capital. The rate filing also requests an increase in return on equity from 10.1% to 10.5%. To mitigate the impact to its customers resulting from ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), DTE Electric suggested regulatory accounting treatment for the pension and postretirement cost components previously included as capital overhead. If the MPSC adopts DTE Electric's suggestion, the rate request will be reduced. For further discussion of ASU No. 2017-07, see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." On September 8, 2017, DTE Electric filed an application with the MPSC for a $125 million self-implemented base rate increase effective November 1, 2017. A final MPSC order in this case is expected by April 2018.
PSCR Proceedings
The PSCR process is designed to allow DTE Electric to recover all of its power supply costs if incurred under reasonable and prudent policies and practices. DTE Electric's power supply costs include fuel and related transportation costs, purchased and net interchange power costs, NOx and SO2 emission allowances costs, urea costs, transmission costs, MISO, and other related costs. The MPSC reviews these costs, policies, and practices for prudence in annual plan and reconciliation filings.
2015 PSCR Year — In March 2016, DTE Electric filed its 2015 PSCR reconciliation that included the recovery of approximately $13 million of costs related to the pass through of a billing adjustment associated with a previous MPSC ordered customer refund. On July 12, 2017, the MPSC issued an order that disallowed recovery of this 2015 PSCR billing adjustment pass through of approximately $16 million, inclusive of interest. DTE Electric recorded the impact of the disallowance in the second quarter of 2017 and filed a claim of appeal with the Michigan Court of Appeals in August 2017.

gas.
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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Revenues included the following which were outside the scope of Topic 606:
Certificate
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Electric — Other revenues$7 $6 $15 $14 
Gas — Other revenues$2 $1 $6 $5 
DTE Vantage — Leases$24 $26 $63 $70 
Energy Trading — Derivatives$2,531 $1,324 $6,691 $3,377 
Deferred Revenue
The following is a summary of Necessitydeferred revenue activity:
DTE Energy
(In millions)
Beginning Balance, January 1, 2022$78 
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period86 
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(54)
Ending Balance, September 30, 2022$110
The deferred revenues at DTE Energy generally represent amounts paid by or receivable from customers for which the associated performance obligation has not yet been satisfied.
Deferred revenues include amounts associated with REC performance obligations under certain wholesale full requirements power contracts. Deferred revenues associated with RECs are recognized as revenue when control of the RECs has transferred.
Other performance obligations associated with deferred revenues include providing products and services related to customer prepayments. Deferred revenues associated with these products and services are recognized when control has transferred to the customer.
The following table represents deferred revenue amounts for DTE Energy that are expected to be recognized as revenue in future periods:
DTE Energy
(In millions)
2022$42 
202364 
20241 
20252 
2026— 
2027 and thereafter1 
$110 
Transaction Price Allocated to the Remaining Performance Obligations
In accordance with optional exemptions available under Topic 606, the Registrants did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which revenue is recognized at the amount to which the Registrants have the right to invoice for goods provided and services performed, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.
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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
Such contracts consist of varying types of performance obligations across the segments, including the supply and delivery of energy related products and services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related consideration under the contract is variable at inception of the contract. Contract lengths vary from cancellable to multi-year.
The Registrants expect to recognize revenue for the following amounts related to fixed consideration associated with remaining performance obligations in each of the future periods noted:
DTE EnergyDTE Electric
(In millions)
2022$43 $2 
2023292 7 
2024192 7 
2025118 1 
202667 — 
2027 and thereafter355 — 
$1,067 $17 

NOTE 6 — REGULATORY MATTERS
2021 Securitization Filing
On July 31, 2017, June 23, 2021, the MPSC issued a financing order authorizing DTE Electric to issue Securitization bonds for qualified costs of up to $236 million, including $73 million for the net book value of the River Rouge generation plant, $157 million for tree trimming surge program costs, and $6 million for other qualified costs. The financing order further authorized customer charges for the timely recovery of the debt service costs on the Securitization bonds and other ongoing qualified costs.
On March 17, 2022, DTE Electric closed on the issuance of Securitization bonds of $236 million. Refer to Note 10 to the Consolidated Financial Statements, “Long-Term Debt,” for additional information regarding the terms of the bonds and use of proceeds. Upon closing the transaction, DTE Electric recognized Securitized regulatory assets of $230 million, which were reclassified from existing Regulatory assets for the net book value of the River Rouge plant and tree trimming surge program. Debt service costs relating to tree trimming will be recovered over a period not to exceed 5 years, while amounts relating to River Rouge will be recovered over a period not to exceed 14 years.
2022 Electric Rate Case Filing
DTE Electric filed a request for authority to build a 1,100 megawatt natural gas fueled combined cycle generation facility at DTE Electric's Belle River Power Plant. DTE Electric requestedrate case with the MPSC on January 21, 2022 requesting an increase in base rates of $388 million based on a projected twelve-month period ending October 31, 2023. The requested increase in base rates is primarily due to issue three CONs for the following: (1) power supplied by the proposed project is needed, (2) the size, fuel type,an increase in net plant resulting from generation and other design characteristics of the proposed project represent the most reasonabledistribution investments, as well as related increases to depreciation and prudent means of meeting the power need,property tax expenses. The rate filing also requested an increase in return on equity from 9.9% to 10.25% and (3) the estimated capital costs of $989 million for the proposed project will be recoverableincludes projected changes in rates from DTE Electric's customers. DTE Electric also reserved the right to revise, amend, or otherwise change the relief it is requesting in any way appropriate, including updating of the cost estimate within the 150 days of the filing date. DTE Electric expects ansales. A final MPSC order in this proceeding from the MPSC by April 28, 2018.case is expected in November 2022.


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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
NOTE 67 — EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units and performance shares and stock options do not receive cash dividends; as such, these awards are not considered participating securities.
The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In millions, except per share amounts)(In millions, except per share amounts)
Basic Earnings per Share       Basic Earnings per Share
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737
Net Income Attributable to DTE Energy Company — continuing operationsNet Income Attributable to DTE Energy Company — continuing operations$387 $58 $818 $495 
Less: Allocation of earnings to net restricted stock awards1
 —
 2
 1
Less: Allocation of earnings to net restricted stock awards1 — 2 1 
$386 $58 $816 $494 
Net Income Attributable to DTE Energy Company — discontinued operationsNet Income Attributable to DTE Energy Company — discontinued operations— (33)— 106 
Net income available to common shareholders — basic$269
 $338
 $845
 $736
Net income available to common shareholders — basic$386 $25 $816 $600 
       
Average number of common shares outstanding179
 179
 179
 179
Average number of common shares outstanding — basicAverage number of common shares outstanding — basic193 193 193 193 
Income from continuing operationsIncome from continuing operations$2.00 $0.30 $4.22 $2.55 
Income from discontinued operationsIncome from discontinued operations— (0.17)— 0.55 
Basic Earnings per Common Share$1.51
 $1.88
 $4.72
 $4.10
Basic Earnings per Common Share$2.00 $0.13 $4.22 $3.10 
       
Diluted Earnings per Share       Diluted Earnings per Share
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737
Net Income Attributable to DTE Energy Company — continuing operationsNet Income Attributable to DTE Energy Company — continuing operations$387 $58 $818 $495 
Less: Allocation of earnings to net restricted stock awards1
 —
 2
 1
Less: Allocation of earnings to net restricted stock awards1 — 2 1 
$386 $58 $816 $494 
Net Income Attributable to DTE Energy Company — discontinued operationsNet Income Attributable to DTE Energy Company — discontinued operations— (33)— 106 
Net income available to common shareholders — diluted$269
 $338
 $845
 $736
Net income available to common shareholders — diluted$386 $25 $816 $600 
       
Average number of common shares outstanding179
 179
 179
 179
Incremental shares attributable to:       
Average dilutive performance share awards and stock options(a)
—
 1
 —
 1
Average number of common shares outstanding — basicAverage number of common shares outstanding — basic193 193 193 193 
Average dilutive equity units and performance share awardsAverage dilutive equity units and performance share awards1 1 1 1 
Average number of common shares outstanding — diluted179
 180
 179
 180
Average number of common shares outstanding — diluted194 194 194 194 
Diluted Earnings per Common Share$1.51
 $1.88
 $4.72
 $4.10
Income from continuing operationsIncome from continuing operations$1.99 $0.30 $4.21 $2.55 
Income from discontinued operationsIncome from discontinued operations— (0.17)— 0.55 
Diluted Earnings per Common Share(a)
Diluted Earnings per Common Share(a)
$1.99 $0.13 $4.21 $3.10 

(a)The 2016 equity units are potentially dilutive securities but were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2017, as the dilutive stock price threshold was not met.

(a)Equity units excluded from the calculation of diluted EPS were approximately 10.1 million and 11.1 million for the three months ended September 30, 2022 and 2021, respectively, and 10.2 million and 11.5 million for the nine months ended September 30, 2022 and 2021, respectively, as the dilutive stock price threshold was not met.


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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 78 — FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at September 30, 20172022 and December 31, 2016.2021. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.
A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined as follows:
•Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access as of the reporting date.
•Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
•Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

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Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:
September 30, 2022December 31, 2021
September 30, 2017 December 31, 2016Level
1		Level
2		Level
3
Other(a)
Netting(b)
Net BalanceLevel
1		Level
2		Level
3
Other(a)
Netting(b)
Net Balance
Level
1		 Level
2		 Level
3		 
Netting(a)
 Net Balance Level
1		 Level
2		 Level
3		 
Netting(a)
 Net Balance(In millions)
(In millions)
Assets:                   
Cash equivalents(b)
$16
 $3
 $—
 $—
 $19
 $14
 $3
 $—
 $—
 $17
Nuclear decommissioning trusts(c)
                   
AssetsAssets
Cash equivalents(c)
Cash equivalents(c)
$26 $— $— $— $— $26 $4 $— $— $— $— $4 
Nuclear decommissioning trustsNuclear decommissioning trusts
Equity securities949
 —
 —
 —
 949
 887
 —
 —
 —
 887
Equity securities653 — — 155 — 808 917 — — 190 — 1,107 
Fixed income securities10
 474
 —
 —
 484
 11
 414
 —
 —
 425
Fixed income securities102 357 — 91 — 550 124 418 — 102 — 644 
Private equity and otherPrivate equity and other— — — 259 — 259 — — — 205 — 205 
Hedge funds and similar investmentsHedge funds and similar investments77 41 — — — 118 58 18 — — — 76 
Cash equivalents6
 —
 —
 —
 6
 8
 —
 —
 —
 8
Cash equivalents29 — — — — 29 39 — — — — 39 
Other investments(d)
                   
Other investments(d)
Equity securities120
 —
 —
 —
 120
 104
 —
 —
 —
 104
Equity securities52 — — — — 52 68 — — — — 68 
Fixed income securities63
 —
 —
 —
 63
 58
 —
 —
 —
 58
Fixed income securities7 — — — — 7 7 — — — — 7 
Cash equivalents4
 —
 —
 —
 4
 3
 —
 —
 —
 3
Cash equivalents71 — — — — 71 86 — — — — 86 
Derivative assets                   Derivative assets
Commodity Contracts                   
Natural Gas64
 104
 62
 (151) 79
 216
 79
 53
 (306) 42
Commodity contracts(e)
Commodity contracts(e)
Natural gasNatural gas554 233 104 — (852)39 273 115 66 — (394)60 
Electricity—
 155
 47
 (148) 54
 —
 154
 39
 (157) 36
Electricity— 1,185 437 — (1,160)462 — 500 143 — (441)202 
Other—
 —
 4
 —
 4
 —
 —
 2
 —
 2
Environmental & OtherEnvironmental & Other— 222 16 — (224)14 — 285 9 — (285)9 
Foreign currency exchange contracts—
 3
 —
 (2) 1
 —
 6
 —
 (5) 1
Foreign currency exchange contracts— 3 — — — 3 — — — — — — 
Total derivative assets64
 262
 113

(301) 138
 216
 239
 94
 (468) 81
Total derivative assets554 1,643 557 — (2,236)518 273 900 218 — (1,120)271 
Total$1,232
 $739
 $113

$(301) $1,783
 $1,301
 $656
 $94
 $(468) $1,583
Total$1,571 $2,041 $557 $505 $(2,236)$2,438 $1,576 $1,336 $218 $497 $(1,120)$2,507 
Liabilities:                   
LiabilitiesLiabilities
Derivative liabilities                   Derivative liabilities
Commodity Contracts                   
Natural Gas$(64) $(76) $(64) $151
 $(53) $(226) $(86) $(149) $321
 $(140)
Commodity contracts(e)
Commodity contracts(e)
Natural gasNatural gas$(293)$(483)$(417)$— $772 $(421)$(177)$(172)$(245)$— $347 $(247)
Electricity—
 (159) (40) 164
 (35) —
 (159) (30) 163
 (26)Electricity— (1,064)(513)— 1,244 (333)— (434)(188)— 443 (179)
Other—
 —
 (2) 2
 —
 —
 —
 (3) 2
 (1)
Environmental & OtherEnvironmental & Other— (224)(1)— 226 1 — (288)— — 288 — 
Foreign currency exchange contracts—
 (4) —
 2
 (2) —
 (3) —
 3
 —
Foreign currency exchange contracts— (1)— — — (1)— (4)— — — (4)
Total derivative liabilities(64) (239) (106) 319
 (90) (226) (248) (182) 489
 (167)
Total$(64) $(239) $(106) $319
 $(90) $(226) $(248) $(182) $489
 $(167)Total$(293)$(1,772)$(931)$— $2,242 $(754)$(177)$(898)$(433)$— $1,078 $(430)
Net Assets (Liabilities) at end of period$1,168
 $500
 $7
 $18
 $1,693
 $1,075
 $408
 $(88) $21
 $1,416
Net Assets (Liabilities) at end of period$1,278 $269 $(374)$505 $6 $1,684 $1,399 $438 $(215)$497 $(42)$2,077 
Assets:                   
AssetsAssets
Current$65
 $194
 $61
 $(225) $95
 $205
 $199
 $60
 $(400) $64
Current$453 $1,340 $442 $— $(1,814)$421 $227 $646 $166 $— $(854)$185 
Noncurrent1,167
 545
 52
 (76) 1,688
 1,096
 457
 34
 (68) 1,519
Noncurrent1,118 701 115 505 (422)2,017 1,349 690 52 497 (266)2,322 
Total Assets$1,232
 $739
 $113
 $(301) $1,783
 $1,301
 $656
 $94
 $(468) $1,583
Total Assets$1,571 $2,041 $557 $505 $(2,236)$2,438 $1,576 $1,336 $218 $497 $(1,120)$2,507 
Liabilities:                   
LiabilitiesLiabilities
Current$(60) $(183) $(54) $255
 $(42) $(203) $(211) $(79) $424
 $(69)Current$(263)$(1,382)$(637)$— $1,784 $(498)$(168)$(609)$(260)$— $799 $(238)
Noncurrent(4) (56) (52) 64
 (48) (23) (37) (103) 65
 (98)Noncurrent(30)(390)(294)— 458 (256)(9)(289)(173)— 279 (192)
Total Liabilities$(64) $(239) $(106) $319
 $(90) $(226) $(248) $(182) $489
 $(167)Total Liabilities$(293)$(1,772)$(931)$— $2,242 $(754)$(177)$(898)$(433)$— $1,078 $(430)
Net Assets (Liabilities) at end of period$1,168
 $500
 $7
 $18
 $1,693
 $1,075
 $408
 $(88) $21
 $1,416
Net Assets (Liabilities) at end of period$1,278 $269 $(374)$505 $6 $1,684 $1,399 $438 $(215)$497 $(42)$2,077 

(a)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.
(b)At September 30, 2017, available-for-sale securities of $19 million, included $8 million and $11 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2016, available-for-sale securities of $17 million, included $7 million and $10 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(c)At September 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $25 million. These commitments will be funded by existing nuclear decommissioning trust funds.
(d)Excludes cash surrender value of life insurance investments.

(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 include $25 million and $1 million of cash equivalents recorded in Restricted cash on DTE Energy's Consolidated Statements of Financial Position at September 30, 2022 and December 31, 2021, respectively. All other amounts are included in Cash and cash equivalents on DTE Energy's 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.
27
32

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:
September 30, 2022December 31, 2021
September 30, 2017 December 31, 2016Level 1Level 2Level 3
Other(a)
Net BalanceLevel 1Level 2Level 3
Other(a)
Net Balance
Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance(In millions)
(In millions)
Assets:               
Cash equivalents(a)
$8
 $3
 $—
 $11
 $8
 $3
 $—
 $11
Nuclear decommissioning trusts(b)
               
AssetsAssets
Cash equivalents(b)
Cash equivalents(b)
$23 $— $— $— $23 $— $— $— $— $— 
Nuclear decommissioning trustsNuclear decommissioning trusts
Equity securities949
 —
 —
 949
 887
 —
 —
 887
Equity securities653 — — 155 808 917 — — 190 1,107 
Fixed income securities10
 474
 —
 484
 11
 414
 —
 425
Fixed income securities102 357 — 91 550 124 418 — 102 644 
Private equity and otherPrivate equity and other— — — 259 259 — — — 205 205 
Hedge funds and similar investmentsHedge funds and similar investments77 41 — — 118 58 18 — — 76 
Cash equivalents6
 —
 —
 6
 8
 —
 —
 8
Cash equivalents29 — — — 29 39 — — — 39 
Other investments               Other investments
Equity securities10
 —
 —
 10
 9
 —
 —
 9
Equity securities15 — — — 15 20 — — — 20 
Cash equivalentsCash equivalents11 — — — 11 11 — — — 11 
Derivative assets — FTRs—
 —
 4
 4
 —
 —
 2
 2
Derivative assets — FTRs— — 16 — 16 — — 9 — 9 
Total$983
 $477
 $4
 $1,464
 $923
 $417
 $2
 $1,342
Total$910 $398 $16 $505 $1,829 $1,169 $436 $9 $497 $2,111 
               
Assets:               
AssetsAssets
Current$8
 $3
 $4
 $15
 $8
 $3
 $2
 $13
Current$23 $— $16 $— $39 $— $— $9 $— $9 
Noncurrent975
 474
 —
 1,449
 915
 414
 —
 1,329
Noncurrent887 398 — 505 1,790 1,169 436 — 497 2,102 
Total Assets$983
 $477
 $4
 $1,464
 $923
 $417
 $2
 $1,342
Total Assets$910 $398 $16 $505 $1,829 $1,169 $436 $9 $497 $2,111 

(a)At September 30, 2017 and December 31, 2016, available-for-sale securities of $11 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.
(b)At September 30, 2017, the Nuclear Decommissioning Master Trust had outstanding commitments to invest in private equity investments of approximately $25 million. These commitments will be funded by existing nuclear decommissioning trust funds.
(a)Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)Cash equivalents of $23 million are included in Restricted cash on DTE Electric's Consolidated Statements of Financial Position at September 30, 2022.
Cash Equivalents
Cash equivalents include investments with maturities of three months or less when purchased. The cash equivalents shown in the fair value table are comprised of short-term investments and money market funds.
Nuclear Decommissioning Trusts and Other Investments
The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through institutional mutual funds and commingled funds. Exchange-traded debt and equity securities held directly, as well as publicly-traded commingled funds, are valued using quoted market prices in actively traded markets. Non-exchange-tradedNon-exchange traded fixed income securities are valued based upon quotations available from brokers or pricing services. The institutional mutual
Non-publicly traded commingled funds holdholding exchange-traded equity or debt securities (exchange and non-exchange traded) and are valued based on stated NAVs. There are no significant restrictions for these funds and investments may be redeemed with 7 to 65 days notice depending on the fund. There is no intention to sell the investment in these commingled funds.
Private equity and other assets include a diversified group of funds that are classified as NAV assets. These funds primarily invest in limited partnerships, including private equity, private real estate and private credit. Distributions are received through the liquidation of the underlying fund assets over the life of the funds. There are generally no redemption rights. The limited partner must hold the fund for its life or find a third-party buyer, which may need to be approved by the general partner. The funds are established with varied contractual durations generally in the range of 7 years to 12 years. The fund life can often be extended by several years by the general partner, and further extended with the approval of the limited partners. Unfunded commitments related to these investments totaled $190 million and $199 million as of September 30, 2022 and December 31, 2021, respectively.
Hedge funds and similar investments utilize a diversified group of strategies that attempt to capture uncorrelated sources of return. These investments include publicly available NAVs. Atraded mutual funds that are valued using quoted prices in actively traded markets, as well as insurance-linked and asset-backed securities that are valued using quotations from broker or pricing services.
33
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
For pricing the nuclear decommissioning trusts and other investments, a primary price source is identified by asset type, class, or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee determines that another price source is considered to be preferable. The Registrants have obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Registrants selectively corroborate the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by DTE Energy's Trust Investments Department which reports to DTE Energy's Vice President and Treasurer.

28

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Derivative Assets and Liabilities
Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.
The following tables presenttable 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 September 30, 2022Three Months Ended September 30, 2021
Natural GasElectricityOtherTotalNatural GasElectricityOtherTotal
(In millions)
Net Assets (Liabilities) as of June 30$(362)$(96)$30 $(428)$(181)$(49)$15 $(215)
Transfers into Level 3 from Level 2(3)— — (3)— — — — 
Transfers from Level 3 into Level 2— — (5)(5)— — — — 
Total gains (losses)
Included in earnings(a)
(32)40 (1)7 (162)(21)— (183)
Recorded in Regulatory liabilities— — (4)(4)— — (1)(1)
Purchases, issuances, and settlements
Settlements84 (20)(5)59 63 (25)(2)36 
Net Assets (Liabilities) as of September 30$(313)$(76)$15 $(374)$(280)$(95)$12 $(363)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30(a)
$29 $37 $(5)$61 $(109)$(30)$(2)$(141)
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30$— $— $(1)$(1)$— $— $— $— 

(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.
 Three Months Ended September 30, 2017 Three Months Ended September 30, 2016
 Natural Gas Electricity Other Total Natural Gas Electricity Other Total
 (In millions)
Net Assets (Liabilities) as of June 30$(17) $6
 $5
 $(6) $(62) $(6) $(1) $(69)
Transfers into Level 3 from Level 2—
 —
 —
 —
 —
 —
 —
 —
Transfers from Level 3 into Level 2—
 —
 —
 —
 (1) —
 —
 (1)
Total gains (losses)               
Included in earnings(8) 33
 1
 26
 (65) 24
 —
 (41)
Recorded in Regulatory liabilities—
 —
 2
 2
 —
 —
 2
 2
Purchases, issuances, and settlements               
Settlements23
 (32) (6) (15) 28
 (24) (2) 2
Net Assets (Liabilities) as of September 30$(2) $7
 $2
 $7
 $(100) $(6) $(1) $(107)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations$(8) $18
 $1
 $11
 $(50) $6
 $—
 $(44)


29
34

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
Natural GasElectricityOtherTotalNatural GasElectricityOtherTotal
(In millions)
Net Assets (Liabilities) as of December 31$(179)$(45)$9 $(215)$(16)$10 $4 $(2)
Transfers from Level 3 into Level 25 — — 5 — — — — 
Total gains (losses)
Included in earnings(a)
(382)22 1 (359)(356)(5)— (361)
Recorded in Regulatory liabilities— — 20 20 — — 14 14 
Purchases, issuances, and settlements
Settlements243 (53)(15)175 92 (100)(6)(14)
Net Assets (Liabilities) as of September 30$(313)$(76)$15 $(374)$(280)$(95)$12 $(363)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30(a)
$(248)$(2)$(31)$(281)$(301)$(54)$(17)$(372)
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30$— $— $16 $16 $— $— $12 $12 

 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
 Natural Gas Electricity Other Total Natural Gas Electricity Other Total
 (In millions)
Net Assets (Liabilities) as of December 31$(96) $9
 $(1) $(88) $(5) $6
 $(5) $(4)
Transfers into Level 3 from Level 2—
 —
 —
 —
 —
 —
 —
 —
Transfers from Level 3 into Level 2—
 —
 —
 —
 —
 —
 —
 —
Total gains (losses)      

        
Included in earnings38
 45
 1
 84
 (123) (22) 1
 (144)
Recorded in Regulatory liabilities—
 —
 15
 15
 —
 —
 6
 6
Purchases, issuances, and settlements      

        
Issuances—
 —
 —
 —
 —
 1
 —
 1
Settlements56
 (47) (13) (4) 28
 9
 (3) 34
Net Assets (Liabilities) as of September 30$(2) $7
 $2
 $7
 $(100) $(6) $(1) $(107)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, 2017 and 2016 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations$8
 $35
 $—
 $43
 $(165) $(1) $2
 $(164)
(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 September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In millions)(In millions)
Net Assets as of beginning of period$8
 $4
 $2
 $3
Net Assets as of beginning of period$25 $15 $9 $4 
Change in fair value recorded in Regulatory liabilities2
 2
 15
 6
Total gains (losses) recorded in Regulatory liabilitiesTotal gains (losses) recorded in Regulatory liabilities(4)(1)20 14 
Purchases, issuances, and settlements       Purchases, issuances, and settlements
Settlements(6) (3) (13) (6)Settlements(5)(2)(13)(6)
Net Assets as of September 30$4
 $3
 $4
 $3
Net Assets as of September 30$16 $12 $16 $12 
The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at September 30, 2017 and 2016 and reflected in DTE Electric's Consolidated Statements of Financial Position$1
 $1
 $4
 $3
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30$(1)$— $16 $12 
Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in market liquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period.
There were no transfers between Levels 1 and 2 for the Registrants during the three and nine months ended September 30, 2017 and 2016, and there were no transfers from or into Level 3 for DTE Electric during the same periods.
The following tables present the unobservable inputs related to DTE Energy's Level 3 assetsthree and liabilities:nine months ended months ended September 30, 2022 and 2021.
35
  September 30, 2017           
Commodity Contracts Derivative Assets Derivative Liabilities Valuation Techniques Unobservable Input Range Weighted Average
  (In millions)           
Natural Gas $62
 $(64) Discounted Cash Flow Forward basis price (per MMBtu) $(1.92)— $6.36/MMBtu $(0.03)/MMBtu
Electricity $47
 $(40) Discounted Cash Flow Forward basis price (per MWh) $(10)— $7/MWh $1/MWh

30

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:
September 30, 2022
Commodity ContractsDerivative AssetsDerivative LiabilitiesValuation TechniquesUnobservable InputRangeWeighted Average
(In millions)
Natural Gas$104 $(417)Discounted Cash FlowForward basis price (per MMBtu)$(2.34)—$9.94 /MMBtu$0.02 /MMBtu
Electricity$437 $(513)Discounted Cash FlowForward basis price (per MWh)$(50)—$20 /MWh$(4)/MWh
 December 31, 2016      December 31, 2021
Commodity Contracts Derivative Assets Derivative Liabilities Valuation Techniques Unobservable Input Range Weighted AverageCommodity ContractsDerivative AssetsDerivative LiabilitiesValuation TechniquesUnobservable InputRangeWeighted Average
 (In millions)      (In millions)
Natural Gas $53
 $(149) Discounted Cash Flow Forward basis price (per MMBtu) $(1.00)— $7.90/MMBtu $(0.05)/MMBtuNatural Gas$66 $(245)Discounted Cash FlowForward basis price (per MMBtu)$(1.36)—$3.82 /MMBtu$(0.04)/MMBtu
Electricity $39
 $(30) Discounted Cash Flow Forward basis price (per MWh) $(6)— $12/MWh $1/MWhElectricity$143 $(188)Discounted Cash FlowForward basis price (per MWh)$(12)—$7 /MWh$(2)/MWh
The unobservable inputs used in the fair value measurement of the electricity and natural gas commodity types consist of inputs that are less observable due in part to lack of available broker quotes, supported by little, if any, market activity at the measurement date or are based on internally developed models. Certain basis prices (i.e., the difference in pricing between two locations) included in the valuation of natural gas and electricity contracts were deemed unobservable. The weighted average price for unobservable inputs was calculated using the average of forward price curves for natural gas and electricity and the absolute value of monthly volumes.
The inputs listed above would have had a direct impact on the fair values of the above security types if they were adjusted. A significant increase (decrease) in the basis price would resulthave resulted in a higher (lower) fair value for long positions, with offsetting impacts to short positions.
Fair Value of Financial Instruments
The fair value of financial instruments included in the table below is determined by using quoted market prices when available. When quoted prices are not available, pricing services may be used to determine the fair value with reference to observable interest rate indexes. The Registrants have obtained an understanding of how the fair values are derived. The Registrants also selectively corroborate the fair value of their transactions by comparison of market-based price sources. Discounted cash flow analyses based upon estimated current borrowing rates are also used to determine fair value when quoted market prices are not available. The fair values of notes receivable, excluding capital leases, and notes payable are generally estimated using discounted cash flow techniques that incorporate market interest rates as well as assumptions about the remaining life of the loans and credit risk. Depending on the information available, other valuation techniques may be used that rely on internal assumptions and models. Valuation policies and procedures for the Registrants are determined by DTE Energy's Treasury Department which reports to DTE Energy's Vice President and Treasurer and DTE Energy's Controller's Department which reports to DTE Energy's Vice President and Controller.
The following table presents the carrying amount and fair value of financial instruments for DTE Energy:
 September 30, 2017 December 31, 2016
 Carrying Fair Value Carrying Fair Value
 Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3
 (In millions)
Notes receivable, excluding capital leases$36
 $—
 $—
 $36
 $36
 $—
 $—
 $36
Dividends payable$148
 $148
 $—
 $—
 $148
 $148
 $—
 $—
Short-term borrowings$659
 $—
 $659
 $—
 $499
 $—
 $499
 $—
Notes payable — Other(a)
$16
 $—
 $—
 $16
 $17
 $—
 $—
 $17
Long-term debt(b)
$11,897
 $1,554
 $10,522
 $744
 $11,270
 $1,465
 $9,384
 $1,056
September 30, 2022December 31, 2021
CarryingFair ValueCarryingFair Value
AmountLevel 1Level 2Level 3AmountLevel 1Level 2Level 3
(In millions)
Notes receivable(a), excluding lessor finance leases
$65 $— $— $65 $150 $— $— $167 
Short-term borrowings$994 $— $994 $— $758 $— $758 $— 
Notes payable(b)
$17 $— $— $17 $27 $— $— $27 
Long-term debt(c)
$18,846 $731 $14,776 $1,189 $17,378 $2,284 $15,425 $1,207 

(a)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
(b)Includes debt due within one year, unamortized debt discounts, premiums, and issuance costs. Excludes Capital lease obligations.

(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 and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.
31
36

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents the carrying amount and fair value of financial instruments for DTE Electric:
September 30, 2022December 31, 2021
September 30, 2017 December 31, 2016CarryingFair ValueCarryingFair Value
Carrying Fair Value Carrying Fair ValueAmountLevel 1Level 2Level 3AmountLevel 1Level 2Level 3
Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3(In millions)
Notes receivable(a)
Notes receivable(a)
$17 $— $— $17 $17 $— $— $17 
(In millions)
Notes receivable, excluding capital leases$—
 $—
 $—
 $—
 $5
 $—
 $—
 $5
Short-term borrowings — affiliates$66
 $—
 $—
 $66
 $117
 $—
 $—
 $117
Short-term borrowings — affiliates$78 $— $— $78 $53 $— $— $53 
Short-term borrowings — other$311
 $—
 $311
 $—
 $62
 $—
 $62
 $—
Short-term borrowings — other$459 $— $459 $— $153 $— $153 $— 
Notes payable — Other(a)
$5
 $—
 $—
 $5
 $6
 $—
 $—
 $6
Notes payable(b)
Notes payable(b)
$17 $— $— $17 $27 $— $— $27 
Long-term debt(b)(c)
$6,016
 $—
 $6,395
 $163
 $5,878
 $—
 $6,026
 $264
$9,714 $— $8,191 $133 $8,907 $— $9,898 $150 

(a)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.
(a)Included in Current 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 and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.
For further fair value information on financial and derivative instruments, see Note 89 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."
Nuclear Decommissioning Trust Funds
DTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of its operating licenses. This obligation is reflected as an Asset retirement obligation on DTE Electric's Consolidated Statements of Financial Position. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste.
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
September 30, 2017 December 31, 2016September 30, 2022December 31, 2021
(In millions)(In millions)
Fermi 2$1,423
 $1,291
Fermi 2$1,742 $2,051 
Fermi 13
 3
Fermi 13 3 
Low-level radioactive waste13
 26
Low-level radioactive waste19 17 
Total$1,439
 $1,320
$1,764 $2,071 
The costs of securities sold are determined on the basis of specific identification. 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 September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In millions)(In millions)
Realized gains$14
 $13
 $63
 $59
Realized gains$19 $21 $65 $80 
Realized losses$(7) $(8) $(23) $(48)Realized losses$(19)$(1)$(42)$(9)
Proceeds from sale of securities$246
 $394
 $951
 $1,135
Proceeds from sale of securities$194 $217 $707 $854 
Realized gains and losses from the sale of securities forand unrealized gains and losses incurred by the Fermi 2 trust are recorded to the Regulatory assetassets and the Nuclear decommissioning liability. Realized gains and losses from the sale of securities forand unrealized gains and losses on the low-level radioactive waste funds are recorded to the Nuclear decommissioning liability.

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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:
September 30, 2017 December 31, 2016September 30, 2022December 31, 2021
Fair
Value		 Unrealized
Gains		 Unrealized
Losses		 Fair
Value		 Unrealized
Gains		 Unrealized
Losses		Fair
Value		Unrealized
Gains		Unrealized
Losses		Fair
Value		Unrealized
Gains		Unrealized
Losses
(In millions)(In millions)
Equity securities$949
 $287
 $(34) $887
 $222
 $(46)Equity securities$808 $285 $(31)$1,107 $546 $(9)
Fixed income securities484
 14
 (2) 425
 11
 (5)Fixed income securities550 1 (65)644 23 (6)
Private equity and otherPrivate equity and other259 72 (4)205 58 (8)
Hedge funds and similar investmentsHedge funds and similar investments118 — (20)76 1 (2)
Cash equivalents6
 —
 —
 8
 —
 —
Cash equivalents29 — — 39 — — 
$1,439
 $301
 $(36) $1,320
 $233
 $(51)$1,764 $358 $(120)$2,071 $628 $(25)
The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:
September 30, 2022
(In millions)
Due within one year$22 
Due after one through five years105 
Due after five through ten years92 
Due after ten years240 
$459
 September 30, 2017
 (In millions)
Due within one year$15
Due after one through five years100
Due after five through ten years111
Due after ten years258
 $484
SecuritiesFixed income securities held in the Nuclearnuclear decommissioning trust funds are classified as available-for-sale. As DTE Electric doesinclude $91 million of non-publicly traded commingled funds that do not have the ability to hold impaired investments for a period of time sufficient to allow for the anticipated recovery of market value, all unrealized losses are considered to be other-than-temporary impairments.contractual maturity date.
Unrealized losses incurred by the Fermi 2 trust are recognized as a Regulatory asset and Nuclear decommissioning liability. Unrealized losses on the low-level radioactive waste funds are recognized as a Nuclear decommissioning liability.
Other Securities
At September 30, 20172022 and December 31, 2016,2021, DTE Energy's securities included in Other investments on the Registrants' securitiesConsolidated Statements of Financial Position were comprised primarily of moneyinvestments within DTE Energy's rabbi trust. The rabbi trust was established to fund certain non-qualified pension benefits, and therefore changes in market value are recognized in earnings. Gains and equity securities. There were no unrealized losses on available-for-sale securities which were reclassified out of Other comprehensive income (loss) and realized into Net Income for DTE Energy or DTE Electric during the three and nine months ended September 30, 2017 and 2016. For the three months ended September 30, 2017 and 2016, gains related to trading securities held at September 30, 2017 and 2016 were $6 million and $5 million, respectively, for the Registrants. For the nine months ended September 30, 2017 and 2016, gains related to trading securities held at September 30, 2017 and 2016 were $19 million and $15 million, respectively, for the Registrants. The trading gains or losses related to the Rabbi Trust assets, included in Other investments at DTE Energy, are allocated from DTE Energy to DTE Electric.Electric and are included in Other Income or Other Expense, respectively, in the Registrants' Consolidated Statements of Operations. The following table summarizes the Registrant's gains (losses) related to the trust:

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Gains (losses) related to equity securities$(2)$(1)$(7)$3 
Gains (losses) related to fixed income securities— — (1)— 
$(2)$(1)$(8)$3 

38
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
NOTE 89 — FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS
The Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of Financial Position unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. Gains or losses from the ineffective portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative and hedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value are recognized in earnings each period.

33

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The Registrants’Registrants' primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk management policies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivative instruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain coalenvironmental contracts, forwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas and environmental inventory, pipeline transportation contracts, renewable energy credits,certain environmental contracts, and natural gas storage assets.
DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward energy contracts to manage changes in the price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.
DTE Gas — DTE Gas purchases, stores, transports, distributes, and sells natural gas, and buys and sells storagetransportation and transportationstorage capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2020.2025. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted for under the accrual method. DTE Gas may also sell forward transportation and storage capacity contracts. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.
Gas Storage and Pipelines — This segment is primarily engaged in services related to the gathering, transportation, and storage of natural gas. Primarily fixed-priced contracts are used in the marketing and management of transportation and storage services. Generally, these contracts are not derivatives and are therefore accounted for under the accrual method.
Power and Industrial ProjectsDTE Vantage — This segment manages and operates energy and pulverized coal projects, a coke battery, reduced emissions fuel projects, landfillrenewable gas recovery projects, industrial energy projects, and power generation assets. Primarily fixed-priceLong-term contracts and hedging instruments are used in the marketing and management of the segment assets. These contracts and hedging instruments are generally not derivatives and are therefore accounted for under the accrual method.
Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financial instruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swap agreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.
Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixed Canadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. Energy Trading enters into these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accounted for by recording changes in fair value to earnings unless hedge accounting criteria are met.
Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associated with interest rate market volatility.
Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potential customers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or other credit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive and negative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends, and other information. Based on DTE Energy's credit policies and its September 30, 20172022 provision for credit losses, DTE Energy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.

34
39

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Derivative Activities
DTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the risks within each contract. Accordingly, it records and manages the energy purchase and sale obligations under its contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The following describes the categories of activities represented by their operating characteristics and key risks:
•Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gas purchases and sales, natural gas transportation, and storage capacity. Changes in the value of derivatives in this category typically economically offset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting. The difference in accounting treatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.
•Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energy marketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.
•Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, or putting capital at risk. This activity is speculative in nature as opposed to hedging an existing exposure.
•Other — Includes derivative activity at DTE Electric related to FTRs. Changes in the value of derivative contracts at DTE Electric are recorded as Derivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in the PSCR mechanism when realized.
The following table presents the fair value of derivative instruments for DTE Energy:
September 30, 2022December 31, 2021
September 30, 2017 December 31, 2016Derivative
Assets		Derivative LiabilitiesDerivative
Assets		Derivative Liabilities
Derivative
Assets		 Derivative Liabilities Derivative
Assets		 Derivative Liabilities(In millions)
(In millions)
Derivatives designated as hedging instrumentsDerivatives designated as hedging instruments
Foreign currency exchange contractsForeign currency exchange contracts$— $(1)$— $(4)
Derivatives not designated as hedging instruments       Derivatives not designated as hedging instruments
Commodity Contracts       
Natural Gas$230
 $(204) $348
 $(461)
Commodity contractsCommodity contracts
Natural gasNatural gas$891 $(1,193)$454 $(594)
Electricity202
 (199) 193
 (189)Electricity1,622 (1,577)643 (622)
Other4
 (2) 2
 (3)
Environmental & OtherEnvironmental & Other238 (225)294 (288)
Foreign currency exchange contracts3
 (4) 6
 (3)Foreign currency exchange contracts3 — — — 
Total derivatives not designated as hedging instruments$439
 $(409) $549
 $(656)Total derivatives not designated as hedging instruments$2,754 $(2,995)$1,391 $(1,504)
       
Current$301
 $(297) $447
 $(493)Current$2,209 $(2,282)$1,035 $(1,037)
Noncurrent138
 (112) 102
 (163)Noncurrent545 (714)356 (471)
Total derivatives$439
 $(409) $549
 $(656)Total derivatives$2,754 $(2,996)$1,391 $(1,508)
The following table presents the fair value of derivative instruments forat DTE Electric:Electric was $16 million and $9 million at September 30, 2022 and December 31, 2021, respectively, comprised of FTRs recorded to Current Assets - Other on the Consolidated Statements of Financial Position and not designated as hedging instruments.
40
 September 30, 2017 December 31, 2016
 (In millions)
FTRs — Other current assets$4
 $2
Total derivatives not designated as hedging instrument$4
 $2

35

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well as related cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value of derivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's Total Assets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with the same counterparty on a pro-rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected in Accounts receivable and Accounts payable as collateral paid or received, respectively.
DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as well as Accounts receivable and payable. DTE Energy had issued$79 million of letters of credit of approximately $2 millionissued and outstanding at September 30, 20172022 and $18 million at December 31, 2016,2021, which could be used to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $3$56 million and $2$37 million at September 30, 20172022 and December 31, 2016,2021, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with the recognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.
For contracts with certain clearing agents, the fair value of derivative instruments is netted against realized positions with the net balance reflected as either 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payable that are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities.
For DTE Energy, the totalThe following table presents net cash collateral posted, net of cash collateral received, was $42 million and $34 million as of September 30, 2017 and December 31, 2016, respectively.offsetting arrangements for DTE Energy had $12 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $30 million as of September 30, 2017. DTE Energy had $7 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown net of cash collateral of $28 million as of December 31, 2016. DTE Energy recorded cash collateral paid of $25 million and cash collateral received of $1 million not related to unrealized derivative positions as of September 30, 2017. DTE Energy recorded cash collateral paid of $18 million and cash collateral received of $5 million not related to unrealized derivative positions as of December 31, 2016. These amounts are included in Accounts receivable and Accounts payable andEnergy:
September 30, 2022December 31, 2021
(In millions)
Cash collateral netted against Derivative assets$(272)$(90)
Cash collateral netted against Derivative liabilities278 48 
Cash collateral recorded in Accounts receivable(a)
103 55 
Cash collateral recorded in Accounts payable(a)
(19)(21)
Total net cash collateral posted (received)$90 $(8)

(a)Amounts are recorded net by counterparty.
The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:
41
 September 30, 2017 December 31, 2016
 Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
 (In millions)
Derivative assets           
Commodity Contracts           
Natural Gas$230
 $(151) $79
 $348
 $(306) $42
Electricity202
 (148) 54
 193
 (157) 36
Other4
 —
 4
 2
 —
 2
Foreign currency exchange contracts3
 (2) 1
 6
 (5) 1
Total derivative assets$439
 $(301) $138
 $549
 $(468) $81
            
Derivative liabilities           
Commodity Contracts           
Natural Gas$(204) $151
 $(53) $(461) $321
 $(140)
Electricity(199) 164
 (35) (189) 163
 (26)
Other(2) 2
 —
 (3) 2
 (1)
Foreign currency exchange contracts(4) 2
 (2) (3) 3
 —
Total derivative liabilities$(409) $319
 $(90) $(656) $489
 $(167)

36

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy:
September 30, 2022December 31, 2021
Gross Amounts of Recognized Assets (Liabilities)Gross Amounts Offset in the Consolidated Statements of Financial PositionNet Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial PositionGross Amounts of Recognized Assets (Liabilities)Gross Amounts Offset in the Consolidated Statements of Financial PositionNet Amounts of Assets (Liabilities) Presented in the Consolidated Statements of Financial Position
(In millions)
Derivative assets
Commodity contracts(a)
Natural gas$891 $(852)$39 $454 $(394)$60 
Electricity1,622 (1,160)462 643 (441)202 
Environmental & Other238 (224)14 294 (285)9 
Foreign currency exchange contracts3 — 3 — — — 
Total derivative assets$2,754 $(2,236)$518 $1,391 $(1,120)$271 
Derivative liabilities
Commodity contracts(a)
Natural gas$(1,193)$772 $(421)$(594)$347 $(247)
Electricity(1,577)1,244 (333)(622)443 (179)
Environmental & Other(225)226 1 (288)288 — 
Foreign currency exchange contracts(1)— (1)(4)— (4)
Total derivative liabilities$(2,996)$2,242 $(754)$(1,508)$1,078 $(430)

(a)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 the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy's Consolidated Statements of Financial Position:
September 30, 2022December 31, 2021
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
CurrentNoncurrentCurrentNoncurrentCurrentNoncurrentCurrentNoncurrent
(In millions)
Total fair value of derivatives$2,209 $545 $(2,282)$(714)$1,035 $356 $(1,037)$(471)
Counterparty netting(1,609)(355)1,609 355 (791)(239)791 239 
Collateral adjustment(205)(67)175 103 (63)(27)8 40 
Total derivatives as reported$395 $123 $(498)$(256)$181 $90 $(238)$(192)
42
 September 30, 2017 December 31, 2016
 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities
 Current Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent
 (In millions)
Total fair value of derivatives$301
 $138
 $(297) $(112) $447
 $102
 $(493) $(163)
Counterparty netting(225) (64) 225
 64
 (396) (65) 396
 65
Collateral adjustment—
 (12) 30
 —
 (4) (3) 28
 —
Total derivatives as reported$76
 $62
 $(42) $(48) $47
 $34
 $(69) $(98)
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations is as follows:
Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended September 30, Gain (Loss) Recognized in Income on Derivatives for the Nine Months Ended September 30,
  2017 2016 2017 2016
    (In millions)
Commodity Contracts          
Natural Gas Operating Revenues — Non-utility operations $(14) $16
 $63
 $(70)
Natural Gas Fuel, purchased power, and gas — non-utility 10
 (59) 56
 (27)
Electricity Operating Revenues — Non-utility operations 33
 23
 39
 18
Other Operating Revenues — Non-utility operations 2
 1
 1
 (1)
Foreign currency exchange contracts Operating Revenues — Non-utility operations (2) —
 (3) (4)
Total   $29
 $(19) $156
 $(84)
Location of Gain (Loss) Recognized in Income on DerivativesGain (Loss) Recognized in Income on Derivatives for the Three Months Ended September 30,Gain (Loss) Recognized in Income on Derivatives for the Nine Months Ended September 30,
2022202120222021
(In millions)
Commodity contracts
Natural gasOperating Revenues — Non-utility operations$(52)$(214)$(315)$(371)
Natural gasFuel, purchased power, gas, and other — non-utility108 63 8 (16)
ElectricityOperating Revenues — Non-utility operations61 68 173 143 
Environmental & OtherOperating Revenues — Non-utility operations(3)3 15 (36)
Foreign currency exchange contractsOperating Revenues — Non-utility operations5 2 5 (1)
Total$119 $(78)$(114)$(281)
Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues — Non-utility operations and purchases recorded in Fuel, purchased power, gas, and gasother — non-utility.
The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of September 30, 2017:
2022:
CommodityNumber of Units
Natural Gasgas (MMBtu)1,751,191,5982,218,333,992 
Electricity (MWh)28,924,41630,593,651 
Oil (Gallons)8,532,000 
Foreign Currency Exchange (Canadian dollars)currency exchange ($ CAD)89,049,511132,812,314 
Renewable Energy Certificates (MWh)7,816,573 
Carbon emissions (Metric Tons)592,605 
Various subsidiaries of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy’s credit rating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”"hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”"soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, environmental, and coal) and the provisions and maturities of the underlying transactions. As of September 30, 2017,2022, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was approximately $470$699 million.

37

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

As of September 30, 2017,2022, DTE Energy had approximately $339 million $2.6 billionof derivatives in net liability positions, for which hard triggers exist. There is no$287 million of collateral that has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for which contractual offset exists were approximately $276 million.$1.9 billion. The net remaining amount of approximately $63$351 million is derived from the $470$699 millionnoted above.


43
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
NOTE 910 — LONG-TERM DEBT
Debt Issuances
In 2017,2022, the following debt was issued:
Company Month Type Interest Rate Maturity AmountCompanyMonthTypeInterest RateMaturity DateAmount
 (In millions)(In millions)
DTE ElectricDTE ElectricFebruary
Mortgage bonds(a)
3.00%2032$500 
DTE ElectricDTE ElectricFebruary
Mortgage bonds(b)
3.65%2052400 
DTE ElectricDTE ElectricMarch
Securitization bonds(c)
2.64%
2027(d)
184 
DTE ElectricDTE ElectricMarch
Securitization bonds(c)
3.11%
2036(e)
52 
DTE Energy March 
Senior Notes(a)
 3.80% 2027 $500
DTE EnergyAugustTerm loan facilityVariable2023400 
DTE Electric August 
General and Refunding Mortgage Bonds(b)
 3.75% 2047 440
DTE Gas September 
First Mortgage Bonds(a)
 3.08% 2029 40
DTE GasSeptember
Mortgage bonds(a)
4.76%2032130 
DTE Gas September 
First Mortgage Bonds(a)
 3.75% 2047 40
DTE GasSeptember
Mortgage bonds(a)
5.05%2052130 
 $1,020
$1,796 

(a)Proceeds were used for repayment of short-term borrowings and general corporate purposes.
(b)
Proceeds were used to repay $300 million of DTE Electric's 2008 series G 5.60% Senior Notes due on June 15, 2018, for the repayment of short-term borrowings and general corporate purposes.
(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 6 to the Consolidated Financial Statements, “Regulatory Matters,” for additional information
(d)Principal payments on the bonds will be 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. 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 the initial obligation and drew $400 million in August 2022, as noted in the table above. Borrowings are being recorded as long-term debt, given the term of the loan exceeds one year. Borrowings 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 11 to the Consolidated Financial Statements, "Short-term Credit Arrangements and Borrowings", for additional information regarding the unsecured revolving credit agreements.
Debt Redemptions
In 2017,2022, the following debt was redeemed:
CompanyMonthTypeInterest RateMaturity DateAmount
(In millions)
DTE ElectricMarchMortgage bonds2.65%2022$250 
DTE ElectricSeptemberMortgage Bonds6.95%202266 
$316 
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.
44
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
Company Month Type Interest Rate Maturity Amount
          (In millions)
DTE Electric August Senior Notes 5.60% 2018 $300
DTE Energy September 
Secured Note(a)
 7.29% 2029 77
DTE Energy Various Other Long-Term Debt Various 2017 8
          $385

(a)DTE Energy's Gas Storage and Pipelines segment recognized a $16 million net loss on extinguishment of debt associated with early repayment, consisting of $20 million of early redemption premiums and $4 million of unamortized debt premiums. The loss is reflected in Other (Income) and Deductions — Interest Expense on the Consolidated Statements of Operations.

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 September 30, 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 belong to the investors holding the 2019 equity units and were temporarily used to purchase a portfolio of treasury securities. The securities will be 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 common stock. Under the terms of the stock purchase contracts, assuming no anti-dilution or other adjustments, DTE Energy would issue between 9.8 million and 12.2 million shares of its common stock in November 2022. At this time, and in consideration of changes in stock price during October 2022, DTE Energy estimates that approximately 12 million shares will be issued.

NOTE 1011 — 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. Additionally, DTE Energy also has other facilities to support letter of credit issuance.
The agreements requireIn June 2022, DTE Energy DTE Electric,increased its $70 million letter of credit facility to $375 million and DTE Gasamended the maturity date from July 2023 to maintainJune 2023. The facility will support general corporate purposes and has terms consistent with the unsecured revolving credit agreements.
The unsecured revolving credit agreements currently require a total funded debt to capitalization ratio of no more than 0.70 to 1 for DTE Energy and 0.65 to 1.1 for DTE Electric and DTE Gas. In the agreements, “total"total funded debt”debt" means all indebtedness of each respective company and their consolidated subsidiaries, including capitalfinance 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”"Capitalization" means the sum of (a) total funded debt plus (b) “consolidated"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 September 30, 2017,2022, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.540.68 to 1, 0.510.52 to 1, and 0.480.50 to 1, respectively, and were in compliance with this financial covenant.

The availability under these facilities as of September 30, 2022 is shown in the following table:
DTE EnergyDTE ElectricDTE GasTotal
(In millions)
Unsecured revolving credit facility, expiring April 2026$1,500 $500 $300 $2,300 
Unsecured Canadian revolving credit facility, expiring May 202379 — — 79 
Unsecured letter of credit facility, expiring February 2023150 — — 150 
Unsecured letter of credit facility, expiring June 2023375 — — 375 
Unsecured letter of credit facility(a)
50 — — 50 
2,154 500 300 2,954 
Amounts outstanding at September 30, 2022
Revolver borrowings79 — — 79 
Commercial paper issuances326 459 130 915 
Letters of credit338 — — 338 
743 459 130 1,332 
Net availability at September 30, 2022$1,411 $41 $170 $1,622 

(a)Uncommitted letter of credit facility with automatic renewal provision for each July and therefore no expiration.
38
45

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

In October 2022, the unsecured revolving credit agreements were amended and the maturity date was extended from April 2026 to October 2027. The amendment increased the total availability underof DTE Energy's unsecured revolving credit facility from $2.3 billion to $2.6 billion, including an increase from $500 million to $800 million at DTE Electric. Current financial covenants relating to total funded debt to capitalization ratios will remain through the facilities in place at September 30, 2017 is shown inmaturity date, and the following table:
 DTE Energy DTE Electric DTE Gas Total
 (In millions)
Unsecured letter of credit facility, expiring in February 2019$150
 $—
 $—
 $150
Unsecured letter of credit facility, expiring in September 2019(a)
70
 —
 —
 70
Unsecured revolving credit facility, expiring April 20221,200
 400
 300
 1,900
 1,420
 400
 300
 2,120
Amounts outstanding at September 30, 2017       
Commercial paper issuances98
 311
 250
 659
Letters of credit132
 —
 —
 132
 230
 311
 250
 791
Net availability at September 30, 2017$1,190
 $89
 $50
 $1,329

(a)In August 2017, DTE Energy amended its $70 million letter of credit facility. The facility's maturity date was extended from September 2017 to September 2019.
DTE Energy has approximately $17 million of other outstanding letters of credit which are usedfacility will continue to provide liquidity support for various corporate purposes and are not included in the facilities described above.Registrants' commercial paper programs.
In conjunction with maintaining certain exchange tradedexchange-traded risk management positions, DTE Energy may be required to post collateral with its clearing agent.agents. DTE Energy has a demand financing agreementagreements with its clearing agents, including agreements for up to $100$50 million with its clearing agent.and for up to $150 million. The $50 million agreement, as amended, also allows for up to $50 million of additional margin financing provided that DTE Energy posts a letter of credit for the incremental amount and allowsamount. Both agreements allow the right of setoff with posted collateral. At September 30, 2017,2022, the capacity under this facilitythe facilities was $100$250 million. The amountamounts outstanding under this agreement was $32the agreements were $191 million and $50$103 million at September 30, 20172022 and December 31, 2016,2021, respectively, and waswere fully offset by the posted collateral.


NOTE 1112 — LEASES
Lessor
During the first quarter 2022, DTE Energy completed construction of and began operating certain energy infrastructure assets for a large industrial customer under a long-term agreement, where the assets will transfer to the customer at the end of the contract term in 2040. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $33 million.
During the third quarter 2022, DTE Energy completed construction of and began operating energy infrastructure assets for another large industrial customer in Canada. Under the long-term agreement, the customer will have the option to purchase the assets at the end of the initial contract term in 2042. The customer may also elect to extend the term in 5 year increments and may purchase the assets during the extension period. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $64 million, subject to foreign currency translation adjustments.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
September 30, 2022
(In millions)
2022$9 
202334 
202434 
202534 
202633 
2027 and Thereafter451 
Total minimum future lease receipts595 
Residual value of leased pipeline17 
Less unearned income321 
Net investment in finance lease291 
Less current portion7 
$284 
Interest income recognized under finance leases was $6 million and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $17 million and $13 million for the nine months ended September 30, 2022 and 2021, respectively.
46
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Fixed payments$3 $13 $11 $42 
Variable payments21 55 52 90 
$24 $68 $63 $132 
Operating revenues$24 $26 $63 $70 
Other income— 42 — 62 
$24 $68 $63 $132 

NOTE 13 — COMMITMENTS AND CONTINGENCIES
Environmental
DTE Electric
Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO2 and NOx.NOX. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce NOx, SO2, NOX, mercury, and other emissions. Additional rulemakingsrule making may occur over the next few years which could require additional controls for SO2, NOx,NOX, and other hazardous air pollutants.
The Cross State Air Pollution Rule (CSAPR), required further reductions of SO2 and NOx emissions beginning in January 2015. On September 7, 2016,In 2015, the EPA finalized an update to the CSAPR ozone season program by issuing the CSAPR Update Rule. This rule is expected to reduce summertime (May-September) NOx emissions from power plants in 22 states in the eastern half of the U.S., including DTE Electric facilities. The CSAPR Update Rule is intended to reduce air quality impacts of the interstate transport of air pollution on downwind areas' ability to meet the 2008 ozone National Ambient Air Quality Standards implementing power sector emission budgets and NOx allowance trading programs. DTE Electric expects to meet its obligations under CSAPR. DTE Electric does not expect this rule to have a material effect on its compliance program.
The EPA proposed revised air quality standards("NAAQS") for ground level ozone in November 2014 and specifically requested comments onozone. In October 2016, the form and level of the ozone standards. The standards were finalized in October 2015. The State of Michigan recommended to the EPA in October 2016 which areas of the stateState are not attaining the new standard. The Registrants expectstandards. In August 2018, the EPA to designate areasdesignated southeast Michigan as either attainment or non-attainment"marginal non-attainment" with the 2015 ozone standardsNAAQS. In January 2022, after collecting several years of data, the State submitted a request to the EPA for redesignation of the southeast Michigan ozone non-attainment area to attainment, and to accept their maintenance plan and emission inventories as a revision to the Michigan SIP. On March 14, 2022, the EPA published a proposal in the fourth quarter of 2017.Federal Register to formally redesignate the southeast Michigan ozone non-attainment areas to attainment with the 2015 ozone NAAQS. The redesignation includes a public comment period. Measured 2022 ozone values exceeded the 2015 NAAQS and the redesignation being finalized is unlikely. Until a final SIP is developed, DTE Electric cannot predict the financial impact of the revised ozone standards at this time.

39

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

In July 2009, DTE Energy received a NOV/FOV from the EPA alleging, among other things, that five DTE Electric power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and operating permit requirements under the Clean Air Act. In June 2010, the EPA issued a NOV/FOV making similar allegations related to a project and outage at Unit 2 of the Monroe Power Plant. In March 2013, DTE Energy received a supplemental NOV from the EPA relating to the July 2009 NOV/FOV. The supplemental NOV alleged additional violations relating to the New Source Review provisions under the Clean Air Act, among other things.
In August 2010, the U.S. Department of Justice, at the request of the EPA, brought a civil suit in the U.S. District Court for the Eastern District of Michigan against DTE Energy and DTE Electric, related to the June 2010 NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant. In August 2011, the U.S. District Court judge granted DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric. In October 2011, the EPA filed a Notice of Appeal to the Court of Appeals for the Sixth Circuit. In March 2013, the Court of Appeals remanded the case to the U.S. District Court for review of the procedural component of the New Source Review notification requirements. In September 2013, the EPA filed a motion seeking leave to amend their complaint regarding the June 2010 NOV/FOV adding additional claims related to outage work performed at the Trenton Channel and Belle River Power Plants as well as additional claims related to work performed at the Monroe Power Plant. In March 2014, the U.S. District Court judge again granted DTE Energy's motion for summary judgment dismissing the civil case related to Monroe Unit 2. In April 2014, the U.S. District Court judge granted motions filed by the EPA and the Sierra Club to amend their New Source Review complaint adding additional claims for Monroe Units 1, 2, and 3, Belle River Units 1 and 2, and Trenton Channel Unit 9. In October 2014, the EPA and the U.S. Department of Justice filed a notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. The amended New Source Review claims were all stayed pending resolution of the appeal by the Court of Appeals for the Sixth Circuit. Oral arguments before the Sixth Circuit occurred in December 2015. On January 10, 2017, a divided panel of the Court reversed the decision of the U.S. District Court. On February 24, 2017, DTE Energy and DTE Electric filed a petition with the Sixth Circuit Court for a rehearing and a rehearing en banc, which was denied on May 1, 2017. On May 8, 2017, DTE Energy and DTE Electric filed a motion to stay the mandate pending filing of a petition for writ of certiorari with the U.S. Supreme Court. The Sixth Circuit granted the motion on May 16, 2017, staying the claims in district court until the U.S. Supreme Court disposes of the case. DTE Electric and DTE Energy filed a petition for writ of certiorari on July 31, 2017. Responses to the petition are due November 1, 2017.
The Registrants believe that the plants and generating units identified by the EPA and the Sierra Club have complied with all applicable federal environmental regulations. Depending upon the outcome of the litigation and further discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be required to install additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control equipment is not economical, engage in supplemental environmental programs, and/or pay fines. The Registrants cannot predict the financial impact or outcome of this matter, or the timing of its resolution.proposal.
The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, in 2015 the EPA finalized performance standards for emissions of carbon dioxide from new and existing fossil-fuel fired EGUs. The performance standards for existing EGUs, known as the EPA Clean Power Plan, were challenged by petitioners and stayed by the U.S. Supreme Court in February 2016 pending final review by the courts. On October 10, 2017, the EPA, under a new administration, proposed to rescind the Clean Power Plan, and in August 2018, the EPA proposed revised emission guidelines for GHGs from existing EGUs. On June 19, 2019, the EPA Administrator officially repealed the Clean Power Plan and finalized its replacement, named the ACE rule. The ACE rule was vacated and remanded back to the EPA in a D.C. Circuit Court decision on January 19, 2021. The Supreme Court granted a petition for certiorari in October 2021 and issued a decision on June 30, 2022 that reversed the January 2021 decision of the D.C. Circuit Court and remands the case for further proceedings. The next steps taken by the EPA with respect to regulation of GHGs from EGUs remain uncertain. While DTE Energy is reviewing the impacts of this ruling and subsequent responses from federal and state regulators, the ruling does not impact the plans for our utilities to reduce carbon emissions and achieve net zero emissions by 2050.
In addition to the GHG standards for existing EGUs, in December 2018, the EPA issued proposed revisions to the carbon dioxide performance standards for new, modified, or reconstructed fossil-fuel fired EGUs. The rule was finalized on January 13, 2021 and immediately challenged. An order vacating the rule was filed by the D.C. Circuit Court of Appeals on April 5, 2021. The carbon standards for new sources are not expected to have a material impact on DTE Electric, since DTE Electric has no plans to build new coal-fired generation and any potential new gas generation willis expected to be able to comply with the standards. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay
47
Table of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "PromotingContents
DTE Energy Independence and Economic Growth." The order instructs the EPACompany — DTE Electric Company
Combined Notes to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Additionally, federal agencies have been directed to conduct a review of all existing regulations that potentially burden the development and use of domestically produced energy resources. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA Clean Power Plan on existing sources at this time.Consolidated Financial Statements (Unaudited) — (Continued)
Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. ImpactsPotential impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.

40

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

To comply with air pollution requirements, DTE Electric has spent approximately $2.4 billion through 2016.billion. DTE Electric does not anticipate additional capital expenditures through 2023.for air pollution requirements, subject to the results of future rulemakings.
Water — In response to an EPA regulation,regulations and in accordance with the Clean Water Act section 316(b), DTE Electric was required to examine alternatives for reducing the environmental impacts of the cooling water intake structures at several of its facilities. Based on the results of completed studies and expected future studies, DTE Electric may be required to install technologies to reduce the impacts of the water intake structures. A final rule became effective in October 2015. The final rule requires2014, which required studies to be completed by April 2018and submitted as part of the NPDES permit application process to determine the type of technology needed to reduce impacts to fish. DTE Electric has initiated the process of completingcompleted the required studies.studies and submitted reports for most of its generation plants, and a final study is in-process for Monroe power plant. Final compliance for the installation of any required technology to reduce the impacts of water intake structures will be determined by eachthe state on a case by case, site specific basis. DTE Electric is currently evaluating the compliance options and working with the State of Michigan on evaluatingdetermining whether any controls are needed. These evaluations/studies may require modifications to some existing intake structures. It is not possible to quantify the impact of this rulemakingrule making at this time.
As part of the Monroe power plant NPDES draft permit, EGLE has added requirements to evaluate the thermal discharge of the facility as it relates to Clean Water Act section 316(a) regulations. Once the final permit is issued, DTE Electric will be required to evaluate the impacts of the thermal discharge on a balanced indigenous biological community and submit a biological demonstration study plan to EGLE. After approval by EGLE and completion of field sampling, data will be processed and compiled into a comprehensive report. At the present time, DTE Electric cannot predict the outcome of this evaluation or financial impact.
Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufactured locally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedial investigations at contaminated sites, including three former MGP sites. Cleanup of one of the MGP sites is complete, and the site is closed. The investigations have revealed contamination related to the by-products of gas manufacturing at each MGP site. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the area surrounding an ash landfill, electrical distribution substations, electric generating power plants, and underground and abovegroundabove ground storage tank locations. The findings of these investigations indicated that the estimated cost to remediate these sites is expected to be incurred over the next several years. At September 30, 20172022 and December 31, 2016,2021, DTE Electric had $8$10 million and $14 million, respectively, accrued for remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site.
Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of CCR,coal combustion residuals, commonly known as coal ash, became effective in October 2015, and was revised in October 2016. In September 2017,August 2016, July 2018, August 2020, and November 2020. The rule is based on the EPA indicated that it intends to reconsider certain provisionscontinued listing of the CCR Rule, but the naturecoal ash as a non-hazardous waste and timing of such a reconsideration is unknown.relies on various self-implementation design and performance standards. DTE Electric owns and operates three permitted engineered coal ash storage facilities to dispose of coal ash from coal-fired power plants and operates a number of smaller impoundments at its power plants.plants subject to certain provisions in the CCR obligations vary based on plant life, but includerule. At certain facilities, the installationrule currently requires ongoing sampling and testing of monitoring wells, compliance with groundwater standards, and the closure of landfills and basins at the end of the useful life of the associated power plant or as a basin becomes inactive.
In November 2015, the EPA finalized the ELG Rule for the steam electric power generating industry which may require additional controls to be installed between 2018 and 2023. Compliance schedules for individual facilities and individual waste streams are determined through issuance of new wastewater permits by the State of Michigan. The State of Michigan has issued a National Pollutant Discharge Elimination System permit for the Belle River Power Plant establishing a compliance deadline of December 31, 2021. No new permits have been issued for other facilities, consequently no compliance timelines have been established. Under the current rule, certain ELG requirements would be required to be performed in conjunction with the CCR. Over the next six years, to comply with the ELG requirements of the November 2015 rules and for CCR requirements, costs associated with the building of new facilities or installation of controls are estimated to be approximately $311 million.
On April 12, 2017, the EPA granted a petition for reconsideration of the ELG Rule. The EPA also signed an administrative stay of the ELG Rule’s compliance deadlines for fly ash transport water, bottom ash transport water, and flue gas desulfurization (FGD) wastewater, among others. On June 6, 2017, the EPA published in the Federal Register a proposed rule to postpone certain applicable deadlines within the ELG rule. The final rule was published on September 18, 2017, which extended the earliest compliance deadlines for the FGD wastewater and bottom ash transport until November 1, 2020 in order for the EPA to propose and finalize a new ruling. The ELG compliance requirements, final deadlines, and compliance costs will not be known until the EPA completes its reconsideration of the ELG Rule.

plant.
41
48

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

On August 28, 2020, the CCR rule "A Holistic Approach to Closure Part A: Deadline to Initiate Closure and Enhancing Public Access to Information" was published in the Federal Register and required all unlined impoundments (including units previously classified as "clay-lined") to initiate closure as soon as technically feasible, but no later than April 11, 2021. Additionally, the rule amends certain reporting requirements and CCR website requirements. On November 12, 2020, an additional revision to the CCR Rule "A Holistic Approach to Closure Part B: Alternate Demonstration for Unlined Surface Impoundments" was published in the Federal Register that provides a process to determine if certain unlined impoundments consisting of an alternative liner system may be as protective as the current liners specified in the CCR rule, and therefore may continue to operate. DTE Electric has submitted applications to the EPA that support continued use of all impoundments through their active lives. The applications are currently under review and the forced closure date of April 11, 2021 is effectively delayed while the EPA completes their review. On September 1, 2022, DTE Electric ceased receipt of CCR and non-CCR waste streams at the St. Clair power plant bottom ash basins and initiated closure. Therefore, DTE Electric withdrew the Part A rule demonstration for St. Clair, as it was no longer necessary for the EPA to issue an extension of the April 11, 2021 deadline to cease receipt of waste.
At the State level, legislation was signed by the Governor in December 2018 and provides for further regulation of the CCR program in Michigan. Additionally, the statutory revision provides the basis of a CCR program that EGLE has submitted to the EPA for approval to fully regulate the CCR program in Michigan in lieu of a Federal permit program. The EPA is currently working with EGLE in reviewing the submitted State program, and DTE Electric will work with EGLE to implement the State program that may be approved in the future.
On April 12, 2017, the EPA granted a petition for reconsideration of the 2015 ELG Rule. On October 13, 2020, the EPA finalized the ELG Reconsideration Rule which revised the regulations from the 2015 ELG rule for FGD wastewater and bottom ash transport water only. The Reconsideration Rule re-establishes the technology-based effluent limitations guidelines and standards applicable to FGD wastewater and bottom ash transport water. The EPA set the applicability dates for bottom ash transport water "as soon as possible" beginning October 13, 2021 and no later than December 31, 2025. FGD wastewater retrofits must be completed "as soon as possible" beginning October 13, 2021 and no later than December 31, 2025 or December 31, 2028 if a permittee decides to pursue the Voluntary Incentives Program (VIP) subcategory for FGD wastewater. If a facility applies for the VIP, they must meet more stringent standards, but are allowed an extended time period to meet the compliance requirements.
The Reconsideration Rule also provides additional compliance opportunities by finalizing low utilization and cessation of coal burning subcategories. The Reconsideration Rule provides new opportunities for DTE Electric to evaluate existing ELG compliance strategies and make any necessary adjustments to ensure full compliance with the ELGs in a cost-effective manner.
Compliance schedules for individual facilities and individual waste streams are determined through issuance of new NPDES permits by the State of Michigan. The State of Michigan has issued an NPDES permit for the Belle River power plant establishing compliance deadlines based on the 2020 Reconsideration Rule. On October 11, 2021, in consideration of the deadlines above, DTE Electric submitted the appropriate documentation titled the Notice of Planned Participation (NOPP) to the State of Michigan that formally announced the intent to pursue compliance subcategories as ELG compliance options: the cessation of coal at the Belle River power plant no later than December 31, 2028 and the VIP for FGD wastewater at Monroe power plant by December 31, 2028.
On July 27, 2021, the EPA announced they will revisit some of the compliance requirements that were established in the 2020 Reconsideration Rule and plan to release a new proposed rule in the fourth quarter of 2022. The 2020 Reconsideration Rule remains in effect until that time.
DTE Electric continues to evaluate compliance strategies, technologies and system designs for both FGD wastewater and bottom ash transport water system to achieve compliance with the EPA rules at the Monroe power plant.
DTE Electric has estimated the impact of the CCR and ELG rules to be $560 million of capital expenditures, including $455 million for 2022 through 2026.
49
Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)
DTE Gas
Contaminated and Other Sites — DTE Gas owns or previously owned 14 former MGP sites. Investigations have revealed contamination related to the by-products of gas manufacturing at each site. Cleanup of six of theeight MGP sites is complete and the sites are closed. DTE Gas has also completed partial closure of sixfour additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established a cost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is also in the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As of September 30, 20172022 and December 31, 2016,2021, DTE Gas had $41$23 million and $43$24 million, respectively, accrued for remediation, respectively.remediation. These costs are not discounted to their present value. Any change in assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites and affect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows for amortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will prevent environmentalthe associated investigation and remediation costs from having a material adverse impact on DTE Gas' results of operations.
Non-utility
DTE Energy's non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environment from various pollutants.
In March 2019, the EPA issued an FOV to EES Coke Battery, LLC ("EES Coke"), the Michigan coke battery facility that is a wholly-owned subsidiary of DTE Energy, alleging that the 2008 and 2014 permits issued by EGLE did not comply with the Clean Air Act. In September 2020, the EPA issued another FOV alleging EES Coke's 2018 and 2019 SO2 emissions exceeded projections and hence violated non-attainment new source review permitting requirements. EES Coke evaluated the EPA's alleged violations and believes that the permits approved by EGLE complied with the Clean Air Act. EES Coke responded to the EPA's September 2020 allegations demonstrating its actual emissions are compliant with non-attainment new source review requirements. On June 1, 2022, the U.S. Department of Justice, on behalf of the EPA, filed a complaint against EES Coke in the U.S. District Court for the Eastern District of Michigan alleging that EES Coke failed to comply with non-attainment new source review requirements under the Clean Air Act when it applied for the 2014 permit. In August 2022, EES Coke filed a response to the complaint and the EPA filed a motion for summary judgment. In September 2022, the Sierra Club and City of River Rouge filed motions to intervene. At the present time, DTE Energy cannot predict the outcome or financial impact of this matter.
Separately, in December 2021, EGLE issued a Notice of Violation to EES Coke alleging excess visible emissions from pushing operations. In January 2022, EES Coke provided EGLE a response describing the corrective actions taken to prevent future recurrences. At the present time, EES Coke cannot predict the outcome or financial impact of this matter.
Other
In 2010, the EPA finalized a new one-hour SO2 ambient air quality standard that requires states to submit plans and associated timelines for non-attainment areas that demonstrate attainment with the new SO2 standard in phases. Phase 1 addresses non-attainment areas designated based on ambient monitoring data. Phase 2 addresses non-attainment areas with large sources of SO2 and modeled concentrations exceeding the National Ambient Air Quality Standards for SO2. Phase 3 addresses smaller sources of SO2 with modeled or monitored exceedances of the new SO2 standard.
Michigan's Phase 1 non-attainment area includes DTE Energy facilities in southwest Detroit and areas of Wayne County. Modeling runs by the MDEQEGLE suggest that emission reductions may be required by significant sources of SO2 emissions in these areas, including DTE Electric power plants and DTE Energy's Michigan coke battery facility. As part of the state implementation planMichigan's SIP process, DTE Energy has worked with the MDEQEGLE to develop air permits reflecting significant SO2 emission reductions that, in combination with other non-DTE Energy sources' emission reduction strategies, will help the stateState attain the standard and sustain its attainment. Since several non-DTE Energy sources are also partThe Michigan SIP was completed and submitted to the EPA on May 31, 2016 and supplemented on June 30, 2016. On March 19, 2021, the EPA published in the Federal Register partial approval and partial disapproval of Michigan's Detroit SO2 non-attainment area plan. On June 1, 2022, the EPA published a Federal Implementation Plan (FIP) which aligned with the partial approval and partial disapproval of the State's plan. The proposed compliance plan, FIP underwent a public comment period and was finalized on September 30, 2022. No DTE Electric sources were materially impacted by the final FIP.
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Table of Contents
DTE Energy is unableCompany — DTE Electric Company
Combined Notes to determine the full impact of the final required emissions reductions at this time.Consolidated Financial Statements (Unaudited) — (Continued)
Michigan's Phase 2 non-attainment area includes DTE Electric facilities in St. Clair County. State implementation plans (SIPs)The EPA approved a clean data determination request submitted by EGLE. This determination suspends certain planning requirements and sanctions for Phase 2 areas describing the control strategy and timelinenon-attainment area for demonstrating compliance withas long as the new SO2 standard are duearea continues to attain the EPA by April 2018. DTE Energy2010 SO2 air quality standards, but this does not automatically redesignate the area to attainment. Until the area is currently working with the MDEQ to develop the required SIP.officially redesignated as attainment, DTE Energy is unable to determine the full impact of the SIP strategy, as it is currently under development.
Synthetic Fuel Guarantees
DTE Energy discontinued the operations of its synthetic fuel production facilities throughout the United States as of December 31, 2007. DTE Energy provided certain guarantees and indemnities in conjunction with the sales of interests in its synfuel facilities. The guarantees cover potential commercial, environmental, oil price, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at September 30, 2017 was approximately $620 million. Payment under these guarantees is considered remote.impacts.
REF Guarantees
DTE Energy has provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its REF facilities. The guarantees cover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energy estimates that its maximum potential liability under these guarantees at September 30, 20172022 was approximately $364$605 million. Payment under these guarantees is considered remote.

42

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NEXUS Guarantees
NEXUS entered into certain 15-year capacity lease agreements for the transportation of natural gas with DTE Gas and Texas Eastern Transmission, LP, an unrelated third party. Pursuant to the terms of those agreements, in December 2016, DTE Energy executed separate guarantee agreements with DTE Gas and Texas Eastern Transmission, LP, with maximum potential payments totaling $75 million and $9 million at September 30, 2017, respectively; each representing 50% of all payment obligations due and payable by NEXUS. Should NEXUS fail to perform under the terms of those agreements, DTE Energy is required to perform on its behalf. Each guarantee terminates at the earlier of (i) such time as all of the guaranteed obligations have been fully performed, or (ii) two months following the end of the primary term of the capacity lease agreements. Subsequent to the NEXUS in-service date, the amount of each guarantee decreases annually as payments are made by NEXUS to each of the aforementioned counterparties. Payments under these guarantees are considered remote.
Other Guarantees
In certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. Finally, theThe Registrants may also provide indirect guarantees for the indebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling $55$40 million at September 30, 2017. Payment2022. Payments under these guarantees isare considered remote.
DTE Energy isThe Registrants are periodically required to obtain performance surety bonds in support of obligations to various governmental entities and other companies in connection with its operations. As of September 30, 2017,2022, DTE Energy had approximately $57$384 million of performance bonds outstanding.outstanding, including $119 million for DTE Electric. Performance bonds are not individually material, except for $250 million of bonds supporting Energy Trading operations. These bonds are meant to provide counterparties with additional assurance that Energy Trading will meet its contractual obligations for various commercial transactions. The terms of the bonds align with those of the underlying Energy Trading contracts and are estimated to be outstanding approximately 1 to 3 years. In the event that suchany performance bonds are called for nonperformance, DTE Energythe Registrants would be obligated to reimburse the issuer of the performance bond. DTE Energy isThe Registrants are released from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstanding performance bonds will be called.
Labor Contracts
There are several bargaining units for DTE Energy's approximately 4,800Energy subsidiaries' approximate 5,200 represented employees, including DTE Electric's approximately 2,600 represented employees. The majorityThis represents 50% and 56% of theDTE Energy's and DTE Electric's total employees, respectively. Of these represented employees, are underapproximately 4% have contracts that expire in 2020expiring within one year for both DTE Energy and 2021.DTE Electric.
Purchase Commitments
Utility capital expenditures and expenditures for non-utility businesses and contributions to equity method investees will be approximately $2.5$3.5 billion and $1.5$2.6 billion in 20172022 for DTE Energy and DTE Electric, respectively. The Registrants have made certain commitments in connection with the estimated 2022 annual capital expenditures.
Ludington Plant Contract Dispute
DTE Electric and Consumers Energy Company ("Consumers"), joint owners of the Ludington Hydroelectric Pumped Storage plant ("Ludington"), are parties to a 2010 engineering, procurement, and construction contract with Toshiba America Energy Systems ("TAES"), under which TAES is charged with performing a major overhaul and upgrade of Ludington. TAES' performance has been unsatisfactory and resulted in overhaul project delays. DTE Electric and Consumers have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. DTE Electric and Consumers have taken extensive efforts to resolve these estimated 2017 expendituresissues with TAES, including a formal demand to TAES' parent, Toshiba Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations. In order to enforce the contract, DTE Electric and contributionsConsumers filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022.
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DTE Energy Company — DTE Electric Company
Combined Notes to equity method investees.Consolidated Financial Statements (Unaudited) — (Continued)
In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties' contract. As a joint owner of Ludington, DTE Electric would be liable for 49% of these damages. During September 2022, the motion to dismiss was denied. DTE Electric believes the outstanding counterclaims are without merit and is currently awaiting a scheduling order to determine the timing of further proceedings. DTE Electric cannot predict the financial impact or outcome of this matter.
Other Contingencies
The Registrants are involved in certain other legal, regulatory, administrative, and environmental proceedings before various courts, arbitration panels, and governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additional environmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters. The Registrants cannot predict the final disposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statements in the periods they are resolved.
For a discussion of contingencies related to regulatory matters and derivatives, see Notes 56 and 89 to the Consolidated Financial Statements, "Regulatory Matters,"Matters" and "Financial and Other Derivative Instruments," respectively.



43

DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 1214 — RETIREMENT BENEFITS AND TRUSTEED ASSETS
The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:
Pension BenefitsOther Postretirement Benefits
Three Months Ended September 30,
2022202120222021
(In millions)
Service cost$25 $27 $6 $8 
Interest cost41 39 12 12 
Expected return on plan assets(87)(84)(32)(33)
Amortization of:
Net actuarial loss29 49 1 3 
Prior service credit— — (4)(5)
Net periodic benefit cost (credit)$8 $31 $(17)$(15)
Pension BenefitsOther Postretirement Benefits
Pension Benefits Other Postretirement BenefitsNine Months Ended September 30,
2017 2016 2017 20162022202120222021
Three Months Ended September 30,(In millions)
(In millions)
Service cost$22
 $23
 $7
 $7
Service cost$72 $81 $20 $23 
Interest cost53
 55
 18
 20
Interest cost124 118 36 35 
Expected return on plan assets(78) (77) (33) (33)Expected return on plan assets(260)(254)(95)(97)
Amortization of:       Amortization of:
Net actuarial loss46
 43
 3
 6
Net actuarial loss86 147 3 10 
Prior service cost (credit)1
 —
 (3) (29)
Prior service creditPrior service credit— — (14)(15)
Net periodic benefit cost (credit)$44
 $44
 $(8) $(29)Net periodic benefit cost (credit)$22 $92 $(50)$(44)
52
 Pension Benefits Other Postretirement Benefits
 2017 2016 2017 2016
Nine Months Ended September 30,(In millions)
Service cost$69
 $69
 $20
 $20
Interest cost160
 164
 55
 60
Expected return on plan assets(233) (232) (98) (97)
Amortization of:       
Net actuarial loss132
 124
 10
 22
Prior service cost (credit)1
 —
 (10) (88)
Net periodic benefit cost (credit)$129
 $125
 $(23) $(83)
The following tables detail the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Electric:
 Pension Benefits Other Postretirement Benefits
 2017 2016 2017 2016
Three Months Ended September 30,(In millions)
Service cost$16
 $18
 $5
 $5
Interest cost40
 42
 14
 15
Expected return on plan assets(56) (55) (23) (23)
Amortization of:       
Net actuarial loss32
 31
 2
 4
Prior service cost (credit)1
 —
 (2) (22)
Net periodic benefit cost (credit)$33
 $36
 $(4) $(21)
 Pension Benefits Other Postretirement Benefits
 2017 2016 2017 2016
Nine Months Ended September 30,(In millions)
Service cost$53
 $53
 $15
 $15
Interest cost121
 125
 42
 46
Expected return on plan assets(167) (165) (68) (68)
Amortization of:       
Net actuarial loss94
 88
 6
 15
Prior service cost (credit)1
 1
 (7) (66)
Net periodic benefit cost (credit)$102
 $102
 $(12) $(58)

44

Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are primarily sponsored by DTE Energy's subsidiary, DTE Energy Corporate Services, LLC. DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer. As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position. In addition, the service cost and non-service cost components are presented in Operation and maintenance in DTE Electric's Consolidated Statements of Operations. The same non-service cost components are presented in Other (Income) and Deductions — Non-operating retirement benefits, net in DTE Energy's Consolidated Statements of Operations. Plan participants of all plans are solely DTE Energy and affiliate participants.
DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in capital expenditures and operation and maintenance expense was $9 million and $26 million for the three months ended September 30, 2022 and 2021, respectively, and $27 million and $78 million for the nine months ended September 30, 2022 and 2021, respectively. These amounts include recognized contractual termination benefit charges, curtailment gains, and settlement charges.
The following tables detail the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Service cost$5 $6 $15 $17 
Interest cost10 8 28 25 
Expected return on plan assets(22)(22)(64)(65)
Amortization of:
Net actuarial loss2 3 4 9 
Prior service credit(4)(3)(10)(10)
Net periodic benefit credit$(9)$(8)$(27)$(24)
Pension and Other Postretirement Contributions
During the first nine months of 2017,No contributions are currently expected for DTE Energy made cash contributions of $220 million, including contributions from DTE Electric of $185 million, to itsEnergy's qualified pension plans. Atplans or postretirement benefit plans in 2022. Plans may be updated at the discretion of management and depending uponon economic and financial market conditions,conditions. DTE Energy may make additional contributionsanticipates a transfer of up to $88$50 million including additional contributionsof qualified pension plan funds from DTE Gas to DTE Electric during the fourth quarter 2022.

53
Table of $85 million, to its pension plans in 2017.Contents
DTE Energy does not anticipate making any contributionsCompany — DTE Electric Company
Combined Notes to the other postretirement benefit plans in 2017.Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 1315 — SEGMENT AND RELATED INFORMATION
DTE Energy sets strategic goals, allocates resources, and evaluates performance based on the following structure:
Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.22.3 million residential, commercial, and industrial customers in southeastern Michigan.
Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.
Gas Storage and Pipelines consists of natural gas pipeline, gathering, and storage businesses.
Power and Industrial Projects DTE Vantage is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, producecustomers. DTE Vantage formerly included projects that produced reduced emissions fuel, and sell electricity from renewable energy projects.fuel; however, these projects were closed as planned in 2022 upon REF facilities exhausting their eligibility for generating production tax credits.
Energy Trading consists of energy marketing and trading operations.
Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds energy-related investments.certain investments, including funds supporting regional development and economic growth.
On July 1, 2021, DTE Energy completed the separation of DT Midstream, which was comprised of the former Gas Storage and Pipelines segment and also certain holding company activity within the Corporate and Other segment. Amounts relating to DT Midstream have been classified as discontinued operations, and Gas Storage and Pipelines is no longer a reportable segment of DTE Energy. Refer to Note 4 to the Consolidated Financial Statements, “Discontinued Operations,” for additional information.
Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider. Such billing primarily consists of power sales, sale and transportation of natural gas, and renewable natural gas sales in the segments below, as well as charges from Electric to other segments for use of the shared capital assets of DTE Electric. For the prior periods, inter-segment billing also included the sale of reduced emissions fuel at DTE Vantage.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Electric$19 $17 $53 $48 
Gas4 3 10 10 
DTE Vantage15 125 57 463 
Energy Trading39 9 78 35 
Corporate and Other— 1 — 2 
$77 $155 $198 $558 
All inter-segment transactions and balances are eliminated in consolidation for DTE Energy. Centrally incurred costs such as labor and overheads are assigned directly to DTE Energy's business segments or allocated based on various cost drivers, depending on the nature of service provided.
The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the tax benefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are also determined on an individual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state, and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.
Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarily consists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments:
54
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Electric$11
 $15
 $36
 $32
Gas1
 5
 6
 8
Gas Storage and Pipelines10
 2
 32
 7
Power and Industrial Projects138
 178
 462
 476
Energy Trading8
 10
 27
 28
Corporate and Other1
 —
 2
 2
 $169
 $210
 $565
 $553

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Table of Contents
DTE Energy Company — DTE Electric Company
Combined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

Financial data of DTE Energy's business segments follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Operating Revenues — Utility operations
Electric$1,844 $1,700 $4,896 $4,468 
Gas230 193 1,358 1,070 
Operating Revenues — Non-utility operations
Electric3 2 11 9 
DTE Vantage227 372 626 1,132 
Energy Trading3,024 1,602 8,059 4,208 
Corporate and Other— 1 — 2 
Reconciliation and Eliminations(a)
(77)(155)(198)(572)
Total$5,251 $3,715 $14,752 $10,317 

(a)Includes $14 million for the nine months ended September 30, 2021 for eliminations related to DTE Energy's former Gas Storage and Pipelines segment that remain in continuing operations. Eliminations for these revenues are offset by related cost eliminations and have no impact on DTE Energy net income.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment:
Electric$363 $342 $750 $788 
Gas(23)(30)179 146 
DTE Vantage26 73 68 115 
Energy Trading56 (52)(80)(173)
Corporate and Other(35)(275)(99)(381)
Income from Continuing Operations387 58 818 495 
Discontinued Operations— (33)— 106 
Net Income Attributable to DTE Energy Company$387 $25 $818 $601 

55
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Utility operations       
Electric$1,434
 $1,608
 $3,827
 $3,976
Gas152
 160
 929
 911
Operating Revenues — Non-utility operations       
Gas Storage and Pipelines115
 63
 333
 199
Power and Industrial Projects537
 524
 1,592
 1,414
Energy Trading1,174
 782
 3,217
 1,807
Corporate and Other2
 1
 3
 2
Reconciliation and Eliminations(169) (210) (565) (553)
Total$3,245
 $2,928
 $9,336
 $7,756
Table of Contents
Net Income (Loss) Attributable to DTE Energy by Segment:       
Electric$219
 $285
 $463
 $547
Gas(15) (4) 93
 96
Gas Storage and Pipelines36
 28
 121
 93
Power and Industrial Projects44
 34
 104
 66
Energy Trading1
 (4) 97
 (34)
Corporate and Other(15) (1) (31) (31)
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.
EXECUTIVE OVERVIEW
DTE Energy is a diversified energy company and is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy also operates threetwo energy-related non-utility segments with operations throughout the United States.
On July 1, 2021, DTE Energy completed the separation of DT Midstream, its former natural gas pipeline, storage, and gathering non-utility business. Financial results of DT Midstream are presented as discontinued operations in the Consolidated Financial Statements. Refer to Note 4 to the Consolidated Financial Statements, “Discontinued Operations,” for additional information.
Management’s Discussion and Analysis of Financial Condition and Results of Operations below reflect DTE Energy’s continuing operations, unless noted otherwise. The following table summarizes DTE Energy's financial results:
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions, except per share amounts)
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737
Diluted Earnings per Common Share$1.51
 $1.88
 $4.72
 $4.10
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions, except per share amounts)
Net Income Attributable to DTE Energy Company — Continuing operations$387 $58 $818 $495 
Diluted Earnings per Common Share — Continuing operations$1.99 $0.30 $4.21 $2.55 
The decreaseincrease in Net Income inAttributable to DTE Energy Company for the third quarterthree and nine months ended September 30, 2022 was primarily due to lower earningslosses in the Electric and Corporate and Other segments, partially offsetsegment, driven primarily by higher earningsthe loss on debt extinguishment incurred in the Power and Industrial Projects and Gas Storage and Pipelines segments.third quarter 2021. The increase in Net Income infor the nine-monththree month period was primarilyalso due to higher earnings in the Electric and Energy Trading Powersegments, partially offset by lower earnings in the DTE Vantage segment. For the nine month period, the increase was also due to higher earnings in the Gas and Industrial Projects, and Gas Storage and PipelinesEnergy Trading segments, partially offset by lower earnings in the Electric segment.and DTE Vantage segments.
Please see detailed explanations of segment performance in the following "Results of Operations" section.


STRATEGY
DTE Energy's strategy is to achieve long-term earnings growth with a strong balance sheet and an attractive dividend yield.dividend.
DTE Energy's utilities are investing capital to improve customer reliabilitysupport a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of wind storms and other weather events, coupled with increasing electric vehicle adoption, will drive a continued need for substantial grid investment over the long-term.
DTE Energy is committed to reducing the carbon emissions of its electric utility operations by 32% by 2023, 50% by 2028, and 80% by 2040 from 2005 carbon emissions levels. DTE Energy is also committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations. To achieve the carbon reduction goals at the electric utility, DTE Energy has begun to transition away from coal-powered sources and is replacing or offsetting the generation from these facilities with renewable energy and energy waste reduction initiatives. Refer to complythe "Capital Investments" section below for further discussion regarding DTE Energy's retirement of its aging coal-fired plants and transition to renewable energy and other sources. Over the long-term, DTE Energy is also monitoring the viability of emerging technologies involving energy storage, carbon capture and sequestration, low carbon fuels such as hydrogen, and advanced nuclear power.
For gas utility operations, DTE Energy aims to cut carbon emissions across the entire value chain.To achieve net zero emissions by 2050, DTE Energy is working to source gas with environmental requirements. lower methane intensity, reduce emissions through its gas main renewal and pipeline integrity programs, and if necessary, use carbon offsets to address any remaining emissions. DTE Energy is also committed to helping DTE Gas customers reduce their emissions by 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas.
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DTE Energy expects that plannedthese initiatives at the electric and gas utilities will continue to provide significant opportunities for capital investments willand result in earnings growth. DTE Energy is focused on executing its plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. DTE Energy operatesEnergy's utilities operate in a constructive regulatory environment and hashave solid relationships with itstheir regulators.
In May 2017, DTE Energy announced its plan to reduce carbon emissions. This goal will be attained by cutting carbon emissions 30% by the early 2020s, 45% by 2030, 75% by 2040, and more than 80% by 2050. To achieve this reduction, DTE Energy will transition away from coal-powered sources and incorporate more renewable energy, energy efficiency, demand response, and highly-efficient natural gas fueled power plants. DTE Energy has already begun the transition in the way it produces power through the continued retirement of its aging coal-fired plants. Refer to the "Capital Investments" section below for further discussion.
DTE Energy also has significant investments in non-utility businesses.businesses and expects growth opportunities in its DTE Vantage segment. DTE Energy employs disciplined investment criteria when assessing growth opportunities that leverage its assets, skills, and expertise, and provides diversity in earnings and geography. Specifically, DTE Energy invests in targeted energy markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. DTE Energy expects growth opportunities in the Gas Storage and Pipelines and Power and Industrial Projects segments.
A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced short-term and long-term financing. Near-term growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has an enterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related to commodity price changes, interest rates, and counterparty credit risk.
CAPITAL INVESTMENTS
DTE Energy's utility businesses require significant capital investments to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with environmental regulations and renewable energy requirements. Capital plans may be regularly updated as these requirements change.
DTE Electric's capital investments over the 2017-20212022-2026 period are estimated at $8.4$15 billion, comprised of $3.2 billion for capital replacements and other projects, $3.2$8 billion for distribution infrastructure, and $2.0$4 billion for new generation.base infrastructure, and $3 billion for cleaner generation including renewables. DTE Electric has retired fourall eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities, including five units that were retired in the third quarter 2022, and has announced plans to retire its remaining thirteensix coal-fired generating units. Seven of these coal-fired generating units will be retired through 2023 at the Trenton Channel, River Rouge, and St. Clair facilities. The remaining coal-fired generatingtwo units at the Belle River facility will cease the use of coal by 2028 and are being evaluated for conversion to cleaner energy resources. The four units at the Monroe facilitiesfacility are expected to be retired by 2040. TheGeneration from the retired facilities will continue to be replaced or offset with a combination of renewables, energy efficiency,waste reduction, demand response, and natural gas fueled generation. DTE Electric plans to build a natural gas fueled combined cycle generation, facility to provide approximately 1,100 megawatts of energy beginningincluding the Blue Water Energy Center which commenced operations in June 2022. In the third quarter of 2017, DTE Electric filed a CON with the MPSC seeking approval for the planned build of this natural gas plant. In September 2016, DTE Electric received an order from the MPSC in its amended Renewable Energy Plan approving two 150 megawatt wind projects expected to be constructed and in service between 2018 and 2020, and 25 megawatts of company-owned solar projects which will be constructed and in service between 2019 and 2020. DTE Electric constructed and placed in service 50 megawatts of solar generation in 2017. DTE Electric plans to seek regulatory approval for capital expenditures consistent with prior ratemaking treatment.
DTE Gas' capital investments over the 2017-20212022-2026 period are estimated at $1.8$3.1 billion, comprised of $1.0$1.5 billion for base infrastructure $700 millionand $1.6 billion for gas main renewal, meter move out, and pipeline integrity programs,programs.
DTE Electric and $100 million for expenditures related to the NEXUS Pipeline. DTE Gas plansplan to seek regulatory approval in general rate case filings for base infrastructure capital expenditures consistent with prior ratemaking treatment.
DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance. Gas Storage and Pipelines' capital investments overmaintenance in the 2017-2021 period are estimated at $2.2DTE Vantage segment, including approximately $1 billion to $2.8$1.5 billion from 2022-2026 for gatheringrenewable energy projects and pipeline investments and expansions, including the NEXUS Pipeline. Power and Industrial Projects' capital investments over the 2017-2021 period are estimated at $600 million to $1.0 billion for investments in cogeneration and on-siteindustrial energy projects.


services.
ENVIRONMENTAL MATTERS
The Registrants are subject to extensive environmental regulation.regulations, including those addressing climate change. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect to continue recovering environmental costs related to utility operations through rates charged to customers.
DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of SO2 and NOx. The EPA and the State of Michigan have also issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce NOx, SO2, mercury and other emissions. Additional rulemakings are expected over the next few years which could require additional controls for SO2, NOx, and other hazardous air pollutants. To comply with these requirements, DTE Electric spent approximately $2.4 billion through 2016. DTE Electric does not anticipate additional capital expenditures through 2023.
The EPA has implemented regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of the economy. Among these actions, the EPA finalized performance standards for emissions of carbon dioxide from new and existing EGUs. The carbon standards for new sources are not expected to have a material impact on DTE Electric, since DTE Electric has no plans to build new coal-fired generation and any potential new gas generation will be able to comply with the standards. In February 2016, the U.S. Supreme Court granted petitioners' requests for a stay of the carbon rules for existing EGUs (also known as the EPA Clean Power Plan) pending final review by the courts. The Clean Power Plan has no legal effect while the stay is in place. On March 28, 2017, a presidential executive order was issued on "Promoting Energy Independence and Economic Growth." The order instructs the EPA to review, and if appropriate, suspend, revise or rescind the Clean Power Plan rule. Additionally, federal agencies have been directed to conduct a review of all existing regulations that potentially burden the development and use of domestically produced energy resources. Following the issuance of this order, the federal government requested the U.S. Court of Appeals for the D.C. Circuit to hold all legal challenges in abeyance until the review of these regulations is completed. On October 10, 2017, the EPA proposed to rescind the Clean Power Plan and announced its intent to issue an ANPR seeking input as to whether it should replace the rule and, if so, what form it should take. It is not possible to determine the potential impact of the EPA Clean Power Plan on existing sources at this time.
Pending or future legislation or other regulatory actions could have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek to recover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.
Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives could also increase the economic viability of energy produced from renewable, natural gas fueled generation, and/or nuclear sources, energy efficiencywaste reduction initiatives, and the potential development of market-based trading of carbon instruments which could provide new business opportunities for DTE Energy's utility and non-utility segments. At the present time, it is not possible to quantify the financial impacts of these climate related regulatory initiatives on the Registrants or their customers.
For further discussion of environmental matters, see Note 1113 to the Consolidated Financial Statements, "Commitments and Contingencies."
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OUTLOOK
The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.
Looking forward, DTE Energy will focus on several areas that are expected to improve future performance:
•electric and gas customer satisfaction;
•electric distribution system reliability;
•new electric generation;


•gas distribution system renewal;
•reducing carbon emissions at the electric and gas utilities;
•rate competitiveness and affordability;
•regulatory stability and investment recovery for the electric and gas utilities;
•strategic investments in growth projects at DTE Vantage;
•employee engagement, health, safety and engagement;well-being, and diversity, equity, and inclusion;
•cost structure optimization across all business segments; and
•cash, capital, and liquidity to maintain or improve financial strength; and
investments that integrate assets and leverage skills and expertise.strength.
DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic, financial, and risk criteria.


RESULTS OF OPERATIONS
Management’s Discussion and Analysis of Financial Condition and Results of Operations includes financial information prepared in accordance with GAAP, as well as the non-GAAP financial measures, Utility Margin and Non-utility Margin, discussed below, which DTE Energy uses as measures of its operational performance. Generally, a non-GAAP financial measure is a numerical measure of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.
DTE Energy uses Utility Margin and Non-utility Margin, non-GAAP financial measures, to assess its performance by reportable segment.
Utility Margin includes electric utility and gas utility Operating Revenues net of Fuel, purchased power, and gas expenses. The utilities’ fuel, purchased power, and natural gas supply are passed through to customers, and therefore, result in changes to the utilities’ revenues that are comparable to changes in such expenses. As such, DTE Energy believes Utility Margin provides a meaningful basis for evaluating the utilities’ operations across periods, as it excludes the revenue effect of fluctuations in these expenses. For the Electric segment, non-utility Operating Revenues are reported separately so that Utility Margin can be used to assess utility performance.
The Non-utility Margin relates to our Power and Industrial Projectsthe DTE Vantage and Energy Trading segments. For the Power and Industrial ProjectsDTE Vantage segment, Non-utility Margin primarily includes Operating Revenues net of Fuel, purchased power, and gas expenses. Operating Revenues include sales of refined coal to third parties and the affiliated Electric utility, metallurgical coke and related by-products, petroleum coke, renewable natural gas and related credits, and electricity, as well as rental income and revenues from utility-type consulting, management, and operational services. For the prior periods, Operating revenues also include sales of refined coal to third parties and the affiliated Electric utility. For the Energy Trading segment, Non-utility Margin includes revenue and realized and unrealized gains and losses from physical and financial power and gas marketing, optimization, and trading activities, net of Purchased power and gas related to these activities. DTE Energy evaluates its operating performance of these non-utility businesses using the measure of Operating Revenues net of Fuel, purchased power, and gas expenses.
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Utility Margin and Non-utility Margin are not measures calculated in accordance with GAAP and should be viewed as a supplement to and not a substitute for the results of operations presented in accordance with GAAP. Utility Margin and Non-utility Margin do not intend to represent operating income, the most comparable GAAP measure, as an indicator of operating performance and are not necessarily comparable to similarly titled measures reported by other companies.


The following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information, described below, includes intercompany revenues and expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric$363 $342 $750 $788 
Gas(23)(30)179 146 
DTE Vantage26 73 68 115 
Energy Trading56 (52)(80)(173)
Corporate and Other(35)(275)(99)(381)
Income from Continuing Operations387 58 818 495 
Discontinued Operations— (33)— 106 
Net Income Attributable to DTE Energy Company$387 $25 $818 $601 
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Net Income (Loss) Attributable to DTE Energy by Segment       
Electric$219
 $285
 $463
 $547
Gas(15) (4) 93
 96
Gas Storage and Pipelines36
 28
 121
 93
Power and Industrial Projects44
 34
 104
 66
Energy Trading1
 (4) 97
 (34)
Corporate and Other(15) (1) (31) (31)
Net Income Attributable to DTE Energy Company$270
 $338
 $847
 $737

ELECTRIC
The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction H(2) of Form 10-Q.
The Electric segment consists principally of DTE Electric. Electric results and outlook are discussed below:
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In millions)(In millions)
Operating Revenues — Utility operations$1,434
 $1,608
 $3,827
 $3,976
Operating Revenues — Utility operations$1,844 $1,700 $4,896 $4,468 
Fuel and purchased power — utility428
 495
 1,097
 1,191
Fuel and purchased power — utility593 462 1,543 1,178 
Utility Margin1,006
 1,113
 2,730
 2,785
Utility Margin1,251 1,238 3,353 3,290 
Operating Revenues — Non-utility operationsOperating Revenues — Non-utility operations3 2 11 9 
Operation and maintenance349
 363
 1,068
 1,019
Operation and maintenance409 408 1,188 1,116 
Depreciation and amortization188
 176
 549
 539
Depreciation and amortization307 281 909 820 
Taxes other than income74
 73
 229
 216
Taxes other than income86 82 258 245 
Operating Income395
 501
 884
 1,011
Operating Income452 469 1,009 1,118 
Other (Income) and Deductions58
 60
 172
 162
Other (Income) and Deductions84 82 248 238 
Income Tax Expense118
 156
 249
 302
Income Tax Expense5 45 11 92 
Net Income Attributable to DTE Energy Company$219
 $285
 $463
 $547
Net Income Attributable to DTE Energy Company$363 $342 $750 $788 
See DTE Electric's Consolidated Statements of Operations for a complete view of its results. Differences between the Electric segment and DTE Electric's Consolidated Statements of Operations are primarily due to non-utility operations at DTE Sustainable Generation and the classification of certain benefit costs. Refer to Note 14 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information.
Utility Margin decreased $107 increased $13 million and $55$63 million in the three and nine months ended September 30, 2017,2022, respectively. Revenues associated with certain mechanisms and surcharges are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.
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The following table details changes in various Utility Margin components relative to the comparable prior period:periods:
Three MonthsNine Months
(In millions)
Regulatory mechanism — RPS$12 $33 
COVID-19 voluntary refund amortization9 25 
Regulatory mechanism — DTE Securitization9 20 
Regulatory mechanism — EWR12 18 
Weather(14)(5)
Base sales / rate mix(24)(42)
Other regulatory mechanisms and other9 14 
Increase in Utility Margin$13 $63 
 Three Months Nine Months
 (In millions)
Implementation of new rates$—
 $97
PSCR disallowance—
 (13)
Base sales(19) (14)
Weather(84) (117)
Regulatory mechanisms and other(4) (8)
Decrease in Utility Margin$(107) $(55)


Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162022202120222021
(In thousands of MWh)(In thousands of MWh)
DTE Electric Sales       DTE Electric Sales
Residential4,335
 5,174
 11,290
 12,361
Residential4,803 4,998 12,393 12,705 
Commercial4,801
 5,085
 13,208
 13,427
Commercial4,541 4,625 12,501 12,532 
Industrial2,627
 2,618
 7,461
 7,596
Industrial2,271 2,214 6,464 6,431 
Other48
 57
 188
 193
Other48 49 151 155 
11,811
 12,934
 32,147
 33,577
11,663 11,886 31,509 31,823 
Interconnection sales(a)
318
 456
 2,330
 1,992
Interconnection sales(a)
1,766 1,008 3,551 2,812 
Total DTE Electric Sales12,129
 13,390
 34,477
 35,569
Total DTE Electric Sales13,429 12,894 35,060 34,635 
       
DTE Electric Deliveries       DTE Electric Deliveries
Retail and wholesale11,811
 12,934
 32,147
 33,577
Retail and wholesale11,663 11,886 31,509 31,823 
Electric retail access, including self-generators(b)
1,249
 1,241
 3,636
 3,731
Electric retail access, including self-generators(b)
1,201 1,232 3,417 3,260 
Total DTE Electric Sales and Deliveries13,060
 14,175
 35,783
 37,308
Total DTE Electric Sales and Deliveries12,864 13,118 34,926 35,083 

(a)Represents power that is not distributed by DTE Electric.
(b)Represents deliveries for self-generators that have purchased power from alternative energy suppliers to supplement their power requirements.
(a)Represents power that is not distributed by DTE Electric.
(b)Represents deliveries for self-generators that have purchased power from alternative energy suppliers to supplement their power requirements.
Operation and maintenance expense decreased $14increased $1 million and increased $49$72 million in the three and nine months ended September 30, 2017,2022, respectively. The decreaseincrease in the third quarter was primarily due to decreased power plant generation expenseshigher EWR expense of $24$11 million, related to outages,higher RPS expense of $5 million, and higher distribution operations expense of $2 million, partially offset by increased distribution operations expenseslower plant generation expense of $7$9 million and increased expenseslower benefits and other compensation expense of $2 million related to the 2016 fire at a generation facility.$8 million. The increase in the nine-month period was primarily due to higher plant generation expense of $33 million (primarily due to increased storm restoration expenses of $24 million, increasedplanned and unplanned outage costs), higher distribution operations expensesexpense of $7$31 million (primarily due to increased tree trim costs), higher EWR expense of $15 million, and $19higher RPS expense of $9 million, related to the 2016 fire at a generation facility. DTE Electric expects the power plant generation expenses related to the 2016 fire at a generation facility to be partially reimbursedoffset by insurance proceeds.lower benefits and other compensation expense of $15 million.
Depreciation and amortization expense increased $12$26 million and $89 million in the three and nine months ended September 30, 2022, respectively. The increase in both periods was primarily due to a higher depreciable base.
Taxes other than income increased $4 million and $13 million in the three and nine months ended September 30, 2022, respectively. The increase in both periods was primarily due to higher property taxes.
Other (Income) and Deductions increased $2 million and $10 million in the three and nine months ended September 30, 2017,2022, respectively. The increase in the third quarter was primarily due to $15higher interest expense of $8 million and higher losses in the rabbi trust and other investments of increased expense from an increased depreciable base,$2 million, partially offset by a decreaselower non-operating retirement benefits expense of $3 million in amortization of regulatory assets.$9 million. The increase in the nine-month period was primarily due to $27higher interest expense of $20 million and a change in rabbi trust and other investment earnings (loss of increased expenses from an increased depreciable base,$13 million in 2022 compared to a gain of $6 million in 2021), partially offset by a decreaselower non-operating retirement benefits expense of $10 million associated with the TRM and a decrease$27 million.
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Table of $7 million in amortization of regulatory assets.Contents
Other (Income) and Deductions Income Tax Expensedecreased $2$40 million and increased $10$81 million in the three and nine months ended September 30, 2017,2022, respectively. The decrease in the third quarterboth periods was primarily due to $2 millionhigher amortization of contributionsthe TCJA regulatory liability, driven by the accelerated amortization approved in DTE Electric's prior year accounting applications to not-for-profit organizationsthe MPSC. The decrease in 2016. The increase in the nine-month periodboth periods was primarilyalso due to higher production tax credits and lower interest income of $8 million related to a sales and use tax settlement received in 2016 and higher interest expense of $10 million, partially offset by $5 million of higher investment earnings and $2 million of contributions to not-for-profit organizations in 2016.earnings.
Outlook— DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric expects to continue its efforts to improve productivitywill maintain a strong focus on customers by increasing reliability and decrease costssatisfaction while improving customer satisfaction with consideration ofkeeping customer rate affordability.increases affordable. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, investment returns and changes in discount rate assumptions in benefit plans and health care costs, impact of 2016 Michigan energy legislation, uncertainty of legislative or regulatory actions regarding climate change, and effects of energy efficiencywaste reduction programs.
DTE Electric filed a rate case with the MPSC on April 19, 2017January 21, 2022 requesting an increase in base rates of $231$388 million based on a projected twelve-month period ending October 31, 2018.2023. The requested increase in base rates is primarily due to an increase in net plant resulting from infrastructuregeneration and distribution investments, environmental compliance,as well as related increases to depreciation and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenance expenses, and working capital.property tax expenses. The rate filing also requests an increase in return on equity from 10.1%9.9% to 10.5% on capital structure. On September 8, 2017, DTE Electric filed an application with the MPSC for a $125 million self-implemented base rate increase effective November 1, 2017.10.25% and includes projected changes in sales. A final MPSC order in this case is expected by April 2018.in November 2022.



GAS
The Gas segment consists principally of DTE Gas. Gas results and outlook are discussed below:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Operating Revenues — Utility operations$230 $193 $1,358 $1,070 
Cost of gas — utility39 23 436 263 
Utility Margin191 170 922 807 
Operation and maintenance130 123 405 380 
Depreciation and amortization47 44 140 130 
Taxes other than income21 20 76 71 
Asset (gains) losses and impairments, net— 1 — 1 
Operating Income (Loss)(7)(18)301 225 
Other (Income) and Deductions22 18 65 54 
Income Tax Expense (Benefit)(6)(6)57 25 
Net Income (Loss) Attributable to DTE Energy Company$(23)$(30)$179 $146 
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Utility operations$152
 $160
 $929
 $911
Cost of gas — utility12
 15
 278
 306
Utility Margin140
 145
 651
 605
Operation and maintenance110
 99
 330
 293
Depreciation and amortization31
 27
 91
 79
Taxes other than income10
 13
 48
 49
Operating Income (Loss)(11) 6
 182
 184
Other (Income) and Deductions12
 13
 38
 35
Income Tax Expense (Benefit)(8) (3) 51
 53
Net Income (Loss) Attributable to DTE Energy Company$(15) $(4) $93
 $96
Utility Margin decreased $5 increased $21 million and increased $46$115 million in the three and nine months ended September 30, 2017,2022, respectively. Revenues associated with certain mechanisms and surcharges are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.
The following table details changes in various Utility Margin components relative to the comparable prior period:periods:
Three MonthsNine Months
(In millions)
Implementation of new rates$12 $57 
Weather2 33 
Base sales2 15 
Home protection program1 5 
Other4 5 
Increase in Utility Margin$21 $115 
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 Three Months Nine Months
 (In millions)
Implementation of new rates$1
 $70
Revenue decoupling mechanism—
 6
Weather2
 (22)
Other(8) (8)
Increase (decrease) in Utility Margin$(5) $46
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In Bcf)
Gas Markets
Gas sales8 7 100 88 
End-user transportation33 34 124 123 
41 41 224 211 
Intermediate transportation125 102 404 370 
Total Gas sales166 143 628 581 
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In Bcf)
Gas Markets       
Gas sales8
 7
 77
 80
End-user transportation34
 38
 119
 136
 42
 45
 196
 216
Intermediate transportation55
 44
 205
 164
Total Gas sales97
 89
 401
 380
Operation and maintenance expense increased $11$7 million and $37$25 million in the three and nine months ended September 30, 2017,2022, respectively. The increase in the third quarter was primarily due to increased employee benefits expenseshigher gas operations expense of $7 million and higher corporate support costs of $2 million, partially offset by lower uncollectible expense of $1 million. The increase in the nine-month period was primarily due to higher gas operations expense of $19 million and higher corporate support costs of $8 million.
Depreciation and amortization expense increased $3 million and $10 million in the three and nine months ended September 30, 2022, respectively. The increase in both periods was primarily due to a higher depreciable base.
Taxes other than income expense increased gas operations expenses$1 million and $5 million in the three and nine months ended September 30, 2022, respectively. The increase in both periods was primarily due to higher property taxes.
Other (Income) and Deductions increased $4 million and $11 million in the three and nine months ended September 30, 2022, respectively. The increase in the third quarter was primarily due to investment losses of $2 million and higher interest expense of $2 million. The increase in the nine-month period was primarily due to increased employee benefits expensesa change in investment earnings (loss of $24 million, increased corporate expenses of $8 million, and increased gas operations expenses of $5 million.
Depreciation and amortization expense increased $4 million and $12$7 million in 2022 compared to a gain of $1 million in 2021) and higher interest expense of $3 million.
Income Tax Expense (Benefit) increased $32 million in the three and nine months ended September 30, 2017, respectively.2022. The increase in both periods was primarily due to increased expense from an increased depreciable basehigher earnings and higher depreciation rates.lower amortization of the TCJA regulatory liability.


Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, and investment returns and changes in discount rate assumptions in benefit plans and health care costs. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability.
GAS STORAGE AND PIPELINES
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DTE VANTAGE
The Gas Storage and Pipelines segment consists of the non-utility gas pipelines and storage businesses. Gas Storage and Pipelines results are discussed below:
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Non-utility operations$115
 $63
 $333
 $199
Cost of gas — Non-utility8
 —
 23
 —
Operation and maintenance19
 15
 57
 47
Depreciation and amortization19
 8
 57
 27
Taxes other than income1
 1
 5
 3
Asset (gains) losses and impairments, net1
 —
 2
 —
Operating Income67
 39
 189
 122
Other (Income) and Deductions5
 (9) (18) (28)
Income Tax Expense19
 19
 66
 55
Net Income43
 29
 141
 95
Less: Net Income Attributable to Noncontrolling Interests7
 1
 20
 2
Net Income Attributable to DTE Energy Company$36
 $28
 $121
 $93
Operating Revenues — Non-utility operations increased $52 million and $134 million in the three and nine months ended September 30, 2017, respectively. The increase in both periods was primarily due to the acquisition of AGS and SGG and increased volumes from Susquehanna gathering.
Cost of gas — Non-utility increased $8 million and $23 million in the three and nine months ended September 30, 2017, respectively. The increase in both periods was primarily driven by physical purchase of gas from AGS customers for resale to optimize available transportation capacity.
Operation and maintenance expense and Depreciation and amortization expense increased in the three and nine months ended September 30, 2017, respectively. The increase in both periods was primarily due to the acquisition of AGS and SGG.
Other (Income) and Deductions decreased $14 million and $10 million in the three and nine months ended September 30, 2017, respectively. The decrease in both periods was primarily driven by recognizing a $16 million net loss on extinguishment of debt within the storage business, partially offset by increased AFUDC recorded on the NEXUS Pipeline.
Net Income Attributable to Noncontrolling Interests increased$6 million and $18 million in the three and nine months ended September 30, 2017, respectively. The increase in both periods was primarily due to the acquisition of SGG.
See Note 4 to the Consolidated Financial Statements, "Acquisition," for discussion of the acquisition of AGS and SGG in October 2016.
Outlook — The Susquehanna gathering system is being expanded with additional compression facilities and gathering lines as needed to accommodate shipper demand. DTE Energy believes its long-term agreement with Southwestern Energy Production Company and the quality of the natural gas reserves in the Marcellus region soundly positions Bluestone Pipeline and Susquehanna gathering system for future growth.


Progress continues on development activities on the NEXUS Pipeline, a transportation path to transport Appalachian Basin shale gas, including Utica and Marcellus shale gas, directly to consuming markets in northern Ohio, southeastern Michigan, and Dawn Ontario. DTE Energy owns a 50% partnership interest in the NEXUS Pipeline, with an investment balance of $534 million at September 30, 2017. A FERC application was filed in the fourth quarter of 2015 and was approved on August 25, 2017. Construction is scheduled to commence in October 2017, with a third quarter 2018 in-service target date for the NEXUS Pipeline.
The October 2016 acquisition of AGS and SGG provides a platform for midstream growth and access to further investment opportunities in the Appalachian basin, an additional connection to the NEXUS Pipeline which should drive incremental volumes on the NEXUS Pipeline, and a new set of producer relationships that may lead to more partnering opportunities.
In May 2017, DTE Energy filed a FERC application for approval of the Birdsboro Pipeline, a 14-mile lateral to serve a new power plant in Pennsylvania. DTE Energy is targeting a 2018 in-service date.
Gas Storage and Pipelines expects to maintain its steady growth by developing an asset portfolio with multiple growth platforms through investment in new projects and expansions. Gas Storage and Pipelines will continue to look for additional investment opportunities and other storage and pipeline projects at favorable prices.
POWER AND INDUSTRIAL PROJECTS
The Power and Industrial ProjectsVantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver energy and utility-type products and services to industrial, commercial, and institutional customers, producecustomers. DTE Vantage formerly included projects that produced reduced emissions fuel,fuel; however, these projects were closed as planned in 2022 upon REF facilities exhausting their eligibility for generating production tax credits. DTE Vantage results and sell electricity from renewable energy projects. Power and Industrial Projects resultsoutlook are discussed below:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Operating Revenues — Non-utility operations$227 $372 $626 $1,132 
Fuel, purchased power, and gas — non-utility124 267 317 851 
Non-utility Margin103 105 309 281 
Operation and maintenance64 77 194 226 
Depreciation and amortization13 18 39 55 
Taxes other than income3 2 8 8 
Asset (gains) losses and impairments, net1 1 (4)28 
Operating Income (Loss)22 7 72 (36)
Other (Income) and Deductions(9)(61)(10)(108)
Income Taxes
Expense8 18 20 22 
Production Tax Credits(3)(20)(6)(56)
5 (2)14 (34)
Net Income26 70 68 106 
Less: Net Loss Attributable to Noncontrolling Interests— (3)— (9)
Net Income Attributable to DTE Energy Company$26 $73 $68 $115 
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Non-utility operations$537
 $524
 $1,592
 $1,414
Fuel, purchased power, and gas — non-utility460
 451
 1,388
 1,218
Non-utility Margin77
 73
 204
 196
Operation and maintenance80
 78
 248
 236
Depreciation and amortization18
 18
 55
 54
Taxes other than income3
 3
 9
 10
Asset (gains) losses and impairments, net5
 (1) 7
 (1)
Operating Loss(29) (25) (115) (103)
Other (Income) and Deductions(21) (12) (60) (44)
Income Taxes       
Expense (Benefit)2
 1
 (8) (11)
Production Tax Credits(40) (34) (116) (85)
 (38) (33) (124) (96)
Net Income30
 20
 69
 37
Less: Net Loss Attributable to Noncontrolling Interests(14) (14) (35) (29)
Net Income Attributable to DTE Energy Company$44
 $34
 $104
 $66
Operating Revenues — Non-utility operations increased $13decreased $145 million and $178$506 million in the three and nine months ended September 30, 2017,2022, respectively. The increases aredecrease in both periods was due to the following:
Three MonthsNine Months
(In millions)
Closure of the REF business$(185)$(625)
Closure in the Steel business(4)(17)
Higher (lower) production and prices in the Renewables business(2)6 
New contract in the Renewables business5 16 
Higher prices in the On-site business10 24 
Higher demand and prices in the Steel business31 90 
$(145)$(506)
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 Three Months Nine Months
 (In millions)
Lower coal prices offset by higher production associated with new projects in the REF business$(17) $115
Higher sales due to improved conditions in the steel business36
 85
Lower production and one-time revenue recovery in third quarter 2016 in the renewables business(5) (16)
Other(1) (6)
 $13
 $178


Non-utility Margin increased $4 decreased $2 million and $8increased $28 million in the three and nine months ended September 30, 2017,2022, respectively. The increases are duefollowing table details changes in Non-utility Margin relative to the following:comparable prior periods:
Three MonthsNine Months
(In millions)
New contract in the Renewables business$5 $14 
Higher (lower) demand and prices in the Steel business(3)11 
Higher (lower) production and prices in the Renewables business(4)4 
Closure in the Steel business(2)(5)
Other2 4 
$(2)$28 
 Three Months Nine Months
 (In millions)
Higher sales due to improved conditions in the steel business$11
 $38
Lower sales primarily associated with expired contracts in the on-site business(3) (11)
Lower production and one-time revenue recovery in third quarter 2016 in the renewables business(4) (13)
Other—
 (6)
 $4
 $8
Operation and maintenance expense increased $2decreased $13 million and $12$32 million in the three and nine months ended September 30, 2017,2022, respectively. The increasedecrease in the third quarter was primarily due to higher maintenance in$11 million associated with the renewables projects.closure of the REF business. The increasedecrease in the nine-month period was primarily due to $30 million associated with the closure of the REF business and $4 million of lower corporate overhead costs, partially offset by a $6 million of higher maintenance in the renewables projects and $5 million of higher spending due to new projects in the REF business.
Asset (gains) losses and impairments, net decreased $6 million and $8 million in the three and nine months ended September 30, 2017, respectively. The decrease in both periods was primarilyincrease due to a $6 million impairment recordednew contract in the petroleum coke business in 2017.Renewables business.
Other (Income)Depreciation and Deductions increased $9amortization expense decreased $5 million and $16 million in the three and nine months ended September 30, 2017,2022, respectively. The increasedecrease in the third quarterboth periods was primarily due to a $6the closure of the REF business.
Asset (gains) losses and impairments, net changed $32 million increase in equity earnings in the renewable business and a $4 million increase due to an insurance settlement in the renewable business.nine months ended September 30, 2022. The increase in the nine-month periodchange was primarily due to a $6an asset impairment of $27 million increaserecorded in equity earnings2021 in the renewableSteel business for the anticipated closure of a $4 million increase due to an insurance settlement in the renewable business,pulverized coal facility, as well as a $3 million increasegain recorded in equity earnings2022 in the landfill gasRenewables business related to lower future contingent obligations.
Other (Income) and a $2 million increase due to an insurance settlement in the REF business.
Income Taxes — Production Tax Credits increased $6Deductions decreased $52 million and $31$98 million in the three and nine months ended September 30, 2017,2022, respectively. The increasedecrease in the third quarter was primarily due to $57 million lower income associated with the closure of the REF business, partially offset by $3 million lower interest expense. The decrease in the nine-month period was primarily due to $102 million lower income associated with the closure of the REF business and $10 million lower equity investment earnings due to a planned outage in the Renewables business, partially offset by $11 million lower interest expense.
Income Taxes — Production Tax Credits decreased $17 million and $50 million in the three and nine months ended September 30, 2022, respectively. The decrease in both periods was primarily due to new projects inthe closure of the REF business.
Net Loss Attributable to Noncontrolling Interestsincreased $6 decreased $3 million and $9 million in the three and nine months ended September 30, 2017.2022, respectively. The increasedecrease in both periods was primarily due to higher production in the existing lease arrangements with investors at various REF facilities.
Outlook — Power and Industrial Projects has constructed and placed in service REF facilities at eleven sites including facilities located at eight third-party owned coal-fired power plants. DTE Energy has sold membership interests in fourclosure of the facilities and entered into lease arrangements in three of the facilities.REF business.
Outlook — DTE Energy will continue to optimize these facilities by seeking investors or entering into lease arrangements for facilities operating at DTE Electric and other utility sites. DTE Energy is in the process of entering into a sublicense agreement with a third-party owned and operated REF facility.
DTE Energy expects sustained production levels of metallurgical coke and pulverized coal supplied to steel industry customers for 2018. The segment has four renewable power generation facilities in operation. On-site energy services will continue to be delivered in accordance with the terms of long-term contracts. In October 2017, a Power and Industrial Projects subsidiary and Ford Motor Company (Ford) entered into a 30-year agreement to build, own, and operate utility assets to supply utility services to Ford’s new Research & Engineering Campus located in Dearborn, Michigan. Simultaneously, DTE Electric and Ford entered into a 30-year agreement to supply steam to the campus using a combined heat and power facility owned by DTE Electric. Construction is scheduled to begin in the fourth quarter of 2017, with commercial operation expected to begin in late 2019. DTE Energy will continue to look for additional investment opportunities and other energy projects at favorable prices.
Power and Industrial ProjectsVantage will continue to leverage its extensive energy-related operating experience and project management capability to develop additional energy and renewable natural gas projects to serve energy intensive industrial customers. Compared to prior years, DTE Vantage expects that lower earnings will continue in 2022 due to the closure of the REF business. Over the long-term, DTE Vantage expects that growth in renewable energy and industrial energy services projects will offset the decreases to Net Income caused by the REF closures. DTE Vantage is also exploring decarbonization opportunities relating to carbon capture and storage projects.



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ENERGY TRADING
Energy Trading focuses on physical and financial power, and natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, environmental, and related services, which may include the management of associated storage and transportation contracts on the customers' behalf and the supply or purchase of renewable energy creditsenvironmental attributes to various customers. Energy Trading results and outlook are discussed below:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Operating Revenues — Non-utility operations$3,024 $1,602 $8,059 $4,208 
Purchased power and gas — non-utility2,928 1,630 8,087 4,347 
Non-utility Margin96 (28)(28)(139)
Operation and maintenance16 17 51 60 
Depreciation and amortization2 1 4 4 
Taxes other than income1 1 6 4 
Operating Income (Loss)77 (47)(89)(207)
Other (Income) and Deductions3 22 18 23 
Income Tax Expense (Benefit)18 (17)(27)(57)
Net Income (Loss) Attributable to DTE Energy Company$56 $(52)$(80)$(173)
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
 (In millions)
Operating Revenues — Non-utility operations$1,174
 $782
 $3,217
 $1,807
Purchased power and gas — non-utility1,154
 773
 2,999
 1,810
Non-utility Margin20
 9
 218
 (3)
Operation and maintenance15
 14
 50
 46
Depreciation and amortization1
 1
 3
 2
Taxes other than income1
 1
 4
 2
Operating Income (Loss)3
 (7) 161
 (53)
Other (Income) and Deductions1
 —
 2
 3
Income Tax Expense (Benefit)1
 (3) 62
 (22)
Net Income (Loss) Attributable to DTE Energy Company$1
 $(4) $97
 $(34)
Operating Revenues — Non-utility operations increased$392 $1,422 million and $1,410$3,851 million in the three and nine months ended September 30, 2017,2022, respectively. The increase in the third quarter was primarily due to higher volumes in the gas structured strategy. The increase in the nine-month periodboth periods was primarily due to higher gas prices and higher volumes in the gas structured strategy.and gas transportation strategies.
Non-utility Margin increased $11$124 million and $221$111 million in the three and nine months ended September 30, 2017,2022, respectively. The increases were duefollowing tables detail changes in Non-utility margin relative to the unrealized and realized margins presented in the following tables:comparable prior periods:
 Three Months
 (In millions)
Unrealized Margins(a)
 
Favorable results, primarily in gas structured and power trading strategies(b)
$53
Unfavorable results, primarily in gas trading and gas transportation strategies(15)
 $38
Realized Margins(a)
 
Unfavorable results, primarily in power full requirements, environmental trading, power trading, and gas storage strategies(c)
$(39)
Favorable results, primarily in the gas trading strategy12
 $(27)
Increase in Non-utility Margin$11

(a)NaturalThree Months
(In millions)
Unrealized Margins(a)
Favorable results, primarily in gas structured transactions typically involve a physical purchase or sale of naturaland gas transportation strategies(b)
$204 
Unfavorable results, primarily in power full requirements and environmental trading strategies(48)
156 
Realized Margins(a)
Favorable results, primarily in the future and/or naturalenvironmental trading strategy16 
Unfavorable results, primarily in power full requirements, gas basis financial instruments which are derivativestransportation, and a related non-derivative pipeline transportation contract. These gas structured transactions can resulttrading strategies(c)
(48)
(32)
Increase in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.Non-utility Margin$124

(a)Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.
(b)Amount includes $208 million of timing related gains related to gas strategies which will reverse in future periods as the underlying contracts settle.
(c)Amount includes $31 million of timing related gains related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.
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(b)Amount includes $39 million of timing related gains related to gas strategies which will reverse in future periods as the underlying contracts settle.Nine Months
(In millions)
Unrealized Margins(a)
(c)
Favorable results, primarily in gas structured, gas transportation, and power trading strategies(b)
Amount includes $2 million of timing related gains related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.$


 Nine Months
 (In millions)
Unrealized Margins(a)
 
Favorable results, primarily in gas structured, gas full requirements, and environmental trading strategies(b)
$158
Unfavorable results, primarily in gas trading and power full requirements strategies(15)
 $143
Realized Margins(a)
 
Favorable results, primarily in gas structured, gas storage, and gas trading strategies(c)
$94
Unfavorable results, primarily in power full requirements and power trading strategies(16)
 $78
Increase in Non-utility Margin$221

107 
(a)Unfavorable results, primarily in power full requirements and environmental trading strategiesNatural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.
(30)
(b)Amount includes $152 million of timing related gains related to gas strategies which will reverse in future periods as the underlying contracts settle.
77 
(c)
Realized Margins(a)
Amount includes $89 million of timing related losses related to
Favorable results, primarily in gas transportation, gas full requirements, and environmental trading strategies recognized(c)
104 
Unfavorable results, primarily in previous periods that reversed as the underlying contracts settled.power full requirements and gas trading strategies(70)
34 
Increase in Non-utility Margin$111

(a)Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.
(b)Amount includes $71 million of timing related gains related to gas strategies which will reverse in future periods as the underlying contracts settle.
(c)Amount includes $54 million of timing related losses related to gas strategies recognized in previous periods that reversed as the underlying contracts settled.
Operation and maintenance decreased $1 million and $9 million in the three and nine months ended September 30, 2022, respectively. The decrease in nine-month period was primarily due to lower compensation costs.
Other (Income) and Deductions decreased $19 million and $5 million in the three and nine months ended September 30, 2022, respectively. The decrease in both periods was primarily due to lower contributions to not-for-profit organizations.
Outlook — In the near-term, Energy Trading expects market conditions to remain challenging, and thechallenging. The profitability of this segment may be impacted by the volatility in commodity prices and the uncertainty of impacts associated with financial reform, regulatory changes, and changes in operating rules of Regional Transmission Organizations. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments, and physical power and natural gas contracts, and certain environmental contracts are deemed derivatives,derivatives; whereas, natural gas and environmental inventory, contracts for pipeline transportation, renewable energy credits,storage assets, and storage assetssome environmental contracts are not derivatives. As a result, Energy Trading will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.
See also the "Fair Value" section herein and Notes 78 and 89 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.

CORPORATE AND OTHER
Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds energy-related investments.certain investments, including funds supporting regional development and economic growth. The net lossesloss of $15$35 million and $31$99 million infor the three and nine months ended September 30, 2017, represent an increase2022, respectively, represents a decrease of $14$240 million and no change$282 million from the net lossesloss of $1$275 million and $31$381 million in the comparable 20162021 periods.
The increaselower losses in both periods were primarily due to the third quarter was primarilyloss on debt extinguishment incurred in 2021, which increased earnings by $286 million and $292 million for the three and nine months ended September 30, 2022, respectively. Lower losses in both 2022 periods were also due to effective income tax rate adjustments.adjustments, lower state income taxes, and a valuation allowance recorded in 2021. For the nine-monthnine month period, decreases primarilythe lower losses were also due to decreased net interest expense in 2022. For both the three and effective income tax rate adjustmentsnine month periods, the lower losses were partially offset by excessequity investment losses in 2022 and tax benefits on stock-based compensation recognizedimpacts from the separation of DT Midstream in accordance with ASU 2016-09, Improvements to Employee Share-Based Payment Accounting,the third quarter 2021, which was adopted effective July 1, 2016.resulted in a net tax benefit of $76 million in the prior year.


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CAPITAL RESOURCES AND LIQUIDITY
Cash Requirements
DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 20172022 will be approximately $1.9$2.1 billion. DTE Energy anticipates base level utility capital investments;investments, including environmental, renewable, and energy optimization expenditures;waste reduction expenditures, and expenditures for non-utility businesses; and contributions to equity method investees in 2017businesses of approximately $2.5 billion.$3.5 billion in 2022. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria.

Refer below for analysis of cash flows relating to operating, investing, and financing activities, which reflect DTE Energy's change in financial condition. Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows, as applicable.

 Nine Months Ended September 30,
 2017 2016
Cash and Cash Equivalents(In millions)
Cash Flow From (Used For)   
Operating Activities   
Net Income$832
 $710
Adjustments to reconcile Net Income to Net cash from operating activities:   
Depreciation and amortization756
 702
Nuclear fuel amortization39
 44
Allowance for equity funds used during construction(17) (15)
Deferred income taxes261
 244
Asset (gains) losses and impairments, net5
 —
Working capital and other(326) 82
Net cash from operating activities1,550
 1,767
Investing Activities   
Plant and equipment expenditures — utility(1,439) (1,267)
Plant and equipment expenditures — non-utility(133) (75)
Contributions to equity method investees(194) (199)
Other(38) 38
Net cash used for investing activities(1,804) (1,503)
Financing Activities   
Issuance of long-term debt, net of issuance costs1,010
 646
Redemption of long-term debt(385) (322)
Repurchase of long-term debt—
 (59)
Short-term borrowings, net160
 (89)
Repurchase of common stock(51) (33)
Dividends on common stock and other(509) (378)
Net cash from (used for) financing activities225
 (235)
Net Increase (Decrease) in Cash and Cash Equivalents$(29) $29
Nine Months Ended September 30,
20222021
(in millions)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period$35 $516 
Net cash from operating activities1,412 2,372 
Net cash used for investing activities(2,453)(2,780)
Net cash from (used for) financing activities1,057 (52)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash16 (460)
Cash, Cash Equivalents, and Restricted Cash at End of Period$51 $56 
Cash from Operating Activities
A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.
CashNet cash from operations decreased by $217$960 million in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016.2022. The decrease in operatingwas primarily due to lower cash flows reflects a decrease tofrom working capital adjustments,items. The decrease was also partially due to changes in Net Income, which decreased year-over-year if adjusted for the Loss on extinguishment of debt in 2021, primarily driven by the separation of DT Midstream in July 2021 and the closure of the REF business at DTE Vantage in 2022.
The change in working capital items in 2022 was primarily due to decreases in cash related to Regulatory assets and liabilities, Accounts receivable, net, and Derivative assets and liabilities, partially offset by an increase in cash related to Net Income, Deferred income taxes,Other current and Depreciationnoncurrent assets and amortization.liabilities.
Changes in these line items were significantly impacted by higher prices for natural gas and electricity during 2022, including Regulatory assets attributed to the PSCR and GCR mechanisms at DTE Electric and DTE Gas, respectively. Refer to "Quantitative and Qualitative Disclosures About Market Risk" within Item 3 of this Report for additional information regarding DTE Energy's management of commodity price and other market risks.
Cash used for Investing Activities
Cash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant and equipment expenditures.expenditures and acquisitions. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets.
Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy requirements.
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Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth. DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria. For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings.


Net cash used for investing activities increaseddecreased by $301$327 million in 20172022 primarily due to increased capitaldecreases in utility plant and equipment expenditures and the two acquisitions of landfill gas facilities, which are presented in Investing Activities — Other.non-utility plant and equipment expenditures.
Cash from (used for) Financing Activities
DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.
DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy continually evaluates its leverage target, which is currently 50% to 53%,targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating.
Net cash from financing activities increased by $460 million$1.1 billion in 20172022 primarily due to andecreases in Redemption of long-term debt and Prepayment costs for extinguishment of long-term debt, primarily related to redemptions of $2.6 billion following the separation of DT Midstream in the third quarter of 2021. The increase in cash from financing activities is partially offset by a decrease in Issuance of long-term debt, and Short-term borrowings, partially offset by an increase in Redemptionnet of issuance costs, primarily due to $3.1 billion of long-term debt Dividends on common stock, and Repurchasethat was issued in 2021 to facilitate the separation of common stock.DT Midstream.
Outlook
Sources of Cash
DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with new and existing state and federal regulations that will result in additional environmental and renewable energy investments which will increase the base from which rates are determined. Non-utility growth is expected from additional investments primarily in the Gas StorageDTE Vantage segment. Compared to prior years, DTE Vantage expects that lower cash flows will continue in 2022 due to the closure of REF business. Growth from new renewable energy investments and Pipelines and Power and Industrial Projects segments.industrial energy services projects are expected to offset these decreases over the long-term.
DTE Energy's separation of DT Midstream on July 1, 2021 may also contribute to lower cash from operations in 2022 and the near term. However, DTE Energy still expects higher cash flows from operations over the long-term due to the growth of its utilities and remaining non-utility businesses. For additional information regarding the separation of DT Midstream, refer to Note 4 to the Consolidated Financial Statements, "Discontinued Operations."
DTE Energy's utilities may be impacted by the timing of collection or refund of various recovery and tracking mechanisms, as a result of timing of MPSC orders. Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects.
To finance the acquisition of midstream natural gas assets in December 2019, DTE Energy issued equity units that will result in the issuance of $1.3 billion of common stock in November 2022. DTE Energy does not anticipate the issuance of any additional equity in 2022. However, at the discretion of management and depending upon economic and financial market conditions, DTE Energy could issue additional equity as part of its financial planning process. If issued, DTE Energy anticipates these discretionary equity issuances would be made through contributions to the dividend reinvestment plan or employee benefit plans.
Over the long-term, DTE Energy does not have any equity commitments other than the 2019 equity units noted above and will continue to evaluate equity needs on an annual basis. DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring the impact of rising interest rates on the cost of borrowing.
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Uses of Cash
DTE Energy has approximately $110 million$1.4 billion in long-term debt, including capitalfinance leases, maturing in the nextwithin twelve months. The repaymentRepayment of the debt is expected to be paidmade through internally generated funds, or the issuance of new long-term debt.debt, and proceeds from the equity issuances associated with the 2019 equity units.
DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $1.4$0.7 billion in 2022. Any payment of available liquidity at September 30, 2017, consistingfuture dividends is subject to approval by the Board of cashDirectors and amounts available under unsecured revolving credit agreements.
Atmay depend on DTE Energy's future earnings, capital requirements, and financial condition. Over the discretion of management and depending upon financial market conditions,long-term, DTE Energy may make additional contributions up to $88 million, including contributions from DTE Electric of $85 million, to its pension plans in 2017. DTE Energy does not anticipate making any contributions to the other postretirement benefit plans in 2017.expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies.
Various subsidiaries and an equity investeeinvestees of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade. Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, environmental, and coal) and the provisions and maturities of the underlying transactions. As of September 30, 2017,2022, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $699 million.
Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements:
NoteTitle
1Organization and Basis of Presentation
2Significant Accounting Policies
6Regulatory Matters
9Financial and Other Derivative Instruments
10Long-Term Debt
11Short-Term Credit Arrangements and Borrowings
13Commitments and Contingencies
14Retirement Benefits and Trusteed Assets
Also refer to the "Capital Investments" section above regarding DTE Energy's capital strategy and estimated spend over the next five years. For additional information regarding DTE Energy's future cash obligations, including scheduled debt maturities and interest payments, minimum lease payments, and future purchase commitments, refer to DTE Energy's Annual Report on Form 10-K for the year ended December 31, 2021.
Liquidity
DTE Energy has approximately $470 million.$2.4 billion of available liquidity at September 30, 2022, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements and term loans.
DTE Energy believes it will have sufficient operating flexibility, cash resources, and funding sources to maintain adequate amounts of liquidity and to meet future operating cash and capital expenditure needs. However, virtually all of DTE Energy's businesses are capital intensive, or require access to capital, and the inability to access adequate capital could adversely impact earnings and cash flows.
See Notes 5, 9, 10, 11, and 12 to the Consolidated Financial Statements, "Regulatory Matters," "Long-Term Debt," "Short-Term Credit Arrangements and Borrowings," "Commitments and Contingencies," and "Retirement Benefits and Trusteed Assets," respectively.


NEW ACCOUNTING PRONOUNCEMENTS
See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."

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FAIR VALUE
Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, oil,some environmental contracts, and certain coal forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas and environmental inventory, pipeline transportation contracts, renewable energy credits,storage assets, and storage assets.some environmental contracts. See Notes 78 and 89 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.
The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and renewable energy creditssome environmental contracts which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the related physical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.
The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).
The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 78 to the Consolidated Financial Statements, "Fair Value."
The following table provides details on changes in DTE Energy's MTM net asset (or liability) position:
 Nine Months Ended
 September 30, 2017
 (In millions)
MTM at December 31, 2016$(86)
Reclassified to realized upon settlement(34)
Changes in fair value recorded to income156
Amounts recorded to unrealized income122
Changes in fair value recorded in regulatory liabilities15
Change in collateral(3)
MTM at September 30, 2017$48
DTE Energy
(In millions)
MTM at December 31, 2021$(159)
Reclassified to realized upon settlement(33)
Changes in fair value recorded to income(114)
Amounts recorded to unrealized income(147)
Changes in fair value recorded in Regulatory liabilities20 
Amounts recorded in other comprehensive income, pre-tax2 
Change in collateral48 
MTM at September 30, 2022$(236)
The table below shows the maturity of DTE Energy's MTM positions. The positions from 20202025 and beyond principally represent longer tenor gas structured transactions:
Source of Fair Value2022202320242025 and BeyondTotal Fair Value
(In millions)
Level 1$66 $130 $50 $15 $261 
Level 2(10)(33)(55)(31)(129)
Level 3(68)(151)(64)(91)(374)
MTM before collateral adjustments$(12)$(54)$(69)$(107)(242)
Collateral adjustments6 
MTM at September 30, 2022$(236)

70
Source of Fair Value 2017 2018 2019 2020 and Beyond Total Fair Value
  (In millions)
Level 1 $(7) $2
 $5
 $—
 $—
Level 2 5
 6
 6
 6
 23
Level 3 (14) 17
 12
 (8) 7
MTM before collateral adjustments $(16) $25
 $23
 $(2) 30
Collateral adjustments         18
MTM at September 30, 2017         $48
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market Price Risk
The Electric and Gas businesses have commodity price risk, primarily related to the purchases of coal, natural gas, uranium, and electricity. However, the Registrants do not bear significant exposure to earnings risk, as such changes are included in the PSCR and GCR regulatory rate-recovery mechanisms. In addition, changes in the price of natural gas can impact the valuation of lost and stolen gas, storage sales, and transportation services revenue at the Gas segment. The Gas segment manages its market price risk related to storage sales revenue primarily through the sale of long-term storage contracts. The Registrants are exposed to short-term cash flow or liquidity risk as a result of the time differential between actual cash settlements and regulatory rate recovery.
The DTE Energy's Gas Storage and Pipelines segment has exposure to natural gas price fluctuations which impact the pricing for natural gas storage, gathering, and transportation. DTE Energy manages its exposure through the use of short, medium, and long-term storage, gathering, and transportation contracts.
DTE Energy's Power and Industrial Projects businessVantage segment is subject to price risk for electricity, natural gas, coal products, and coal product price risk.environmental attributes generated from its renewable natural gas investments. DTE Energy manages its exposure to commodity price risk through the use of long-term contracts.contracts and hedging instruments, when available.
DTE Energy's Energy Trading business segment has exposure to electricity, natural gas, coal,environmental, crude oil, heating oil, and foreign currency exchange price fluctuations. These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, and futures contracts, within pre-determinedpredetermined risk parameters.
Credit Risk
Allowance for Doubtful Accounts
The Registrants regularly review contingent matters, existing and future economic conditions, customer trends and other factors relating to customers and their contracts and record provisions for amounts considered at risk of probable loss in the allowance for doubtful accounts. The Registrants believe their accrued amounts are adequate for probable loss.


Trading Activities
DTE Energy is exposed to credit risk through trading activities. Credit risk is the potential loss that may result if the trading counterparties fail to meet their contractual obligations. DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties.
The following table displays the credit quality of DTE Energy's trading counterparties as of September 30, 2017:2022:
Credit Exposure
Before Cash
Collateral		Cash
Collateral		Net Credit
Exposure
(In millions)
Investment Grade(a)
A- and Greater$1,017 $(206)$811 
BBB+ and BBB471 — 471 
BBB-77 — 77 
Total Investment Grade1,565 (206)1,359 
Non-investment grade(b)
26 — 26 
Internally Rated — investment grade(c)
883 (3)880 
Internally Rated — non-investment grade(d)
33 (2)31 
Total$2,507 $(211)$2,296 

(a)This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB-assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented 18% of the total gross credit exposure.
(b)This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented less than 1% of the total gross credit exposure.
(c)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented 17% of the total gross credit exposure.
(d)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s and are considered non-investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented less than 1% of the total gross credit exposure.
71
 Credit Exposure
Before Cash
Collateral		 Cash
Collateral		 Net Credit
Exposure
 (In millions)
Investment Grade(a)
     
A− and Greater$242
 $—
 $242
BBB+ and BBB282
 —
 282
BBB−86
 —
 86
Total Investment Grade610
 —
 610
Non-investment grade(b)
2
 —
 2
Internally Rated — investment grade(c)
266
 —
 266
Internally Rated — non-investment grade(d)
15
 —
 15
Total$893
 $—
 $893
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(a)This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s Rating Group, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented approximately 18% of the total gross credit exposure.
(b)This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented approximately 1% of the total gross credit exposure.
(c)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, but are considered investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented approximately 11% of the total gross credit exposure.
(d)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, and are considered non-investment grade based on DTE Energy’s evaluation of the counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented approximately 1% of the total gross credit exposure.
Other
The Registrants engage in business with customers that are non-investment grade. The Registrants closely monitor the credit ratings of these customers and, when deemed necessary and permitted under the tariffs, request collateral or guarantees from such customers to secure their obligations.
Interest Rate Risk
DTE Energy is subject to interest rate risk in connection with the issuance of debt. In order to manage interest costs, DTE Energy may use treasury locks and interest rate swap agreements. DTE Energy's exposure to interest rate risk arises primarily from changes in U.S. Treasury rates, commercial paper rates, credit spreads, and London Inter-Bank Offered Rates (LIBOR).SOFR. As of September 30, 2017,2022, DTE Energy had floating rate debt of $1.4 billion and a floating rate debt-to-total debt ratio of approximately 5.3%7.1%.
Foreign Currency Exchange Risk
DTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts. These contracts are denominated in Canadian dollars and are primarily for the purchase and sale of natural gas and power, as well as for long-term transportation capacity. To limit DTE Energy's exposure to foreign currency exchange fluctuations, DTE Energy has entered into a series of foreign currency exchange forward contracts through June 2022.


December 2032.
Summary of Sensitivity Analyses
The RegistrantsSensitivity analyses were performed sensitivity analyses on the fair values of commodity contracts for DTE Energy and long-term debt obligations.obligations for the Registrants. The commodity contracts listed below principally relate to energy marketing and trading activities. The sensitivity analyses involved increasing and decreasing forward prices and rates at September 30, 20172022 and 20162021 by a hypothetical 10% and calculating the resulting change in the fair values. The hypothetical losses related to long-term debt would be realized only if DTE Energy transferred all of its fixed-rate long-term debt to other creditors.
The results of the sensitivity analyses:
 Assuming a
10% Increase in Prices/Rates		 Assuming a
10% Decrease in Prices/Rates		 Assuming a
10% Increase in Prices/Rates		Assuming a
10% Decrease in Prices/Rates
 As of September 30, As of September 30, As of September 30,As of September 30,
Activity 2017 2016 2017 2016 Change in the Fair Value ofActivity2022202120222021Change in the Fair Value of
 (In millions) (In millions)
Environmental contractsEnvironmental contracts$(8)$(16)$8 $15 Commodity contracts
Gas contracts $3
 $17
 $(3) $(17) Commodity contractsGas contracts$19 $102 $(19)$(102)Commodity contracts
Power contracts $9
 $14
 $(11) $(14) Commodity contractsPower contracts$13 $13 $(13)$(13)Commodity contracts
Oil contractsOil contracts$2 $— $(2)$— Commodity contracts
Interest rate risk — DTE Energy $(545) $(388) $548
 $408
 Long-term debtInterest rate risk — DTE Energy$(667)$(649)$718 $674 Long-term debt
Interest rate risk — DTE Electric $(249) $(235) $267
 $252
 Long-term debtInterest rate risk — DTE Electric$(426)$(329)$466 $348 Long-term debt
For further discussion of market risk, see Note 89 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments."




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Item 4.Controls and Procedures
DTE Energy
(a) Evaluation of disclosure controls and procedures
Management of DTE Energy carried out an evaluation, under the supervision and with the participation of DTE Energy's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Energy's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2017,2022, which is the end of the period covered by this report. Based on this evaluation, DTE Energy's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Energy in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Energy's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.
(b) Changes in internal control over financial reporting
There have been no changes in DTE Energy's internal control over financial reporting during the quarter ended September 30, 20172022 that have materially affected, or are reasonably likely to materially affect, DTE Energy's internal control over financial reporting.
DTE Electric
(a) Evaluation of disclosure controls and procedures
Management of DTE Electric carried out an evaluation, under the supervision and with the participation of DTE Electric's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Electric's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2017,2022, which is the end of the period covered by this report. Based on this evaluation, DTE Electric's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by DTE Electric in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Electric's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.
(b) Changes in internal control over financial reporting
There have been no changes in DTE Electric's internal control over financial reporting during the quarter ended September 30, 20172022 that have materially affected, or are reasonably likely to materially affect, DTE Electric's internal control over financial reporting.




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Part II — Other Information
Item 1. Legal Proceedings
For information on legal proceedings and matters related to the Registrants, see Notes 56 and 1113 to the Consolidated Financial Statements, "Regulatory Matters" and "Commitments and Contingencies," respectively.

For environmental proceedings in which the government is a party, the Registrants have included disclosures if any sanctions of $1 million or greater are expected.

Item 1A. Risk Factors
There are various risks associated with the operations of the Registrants' businesses. To provide a framework to understand the operating environment of the Registrants, a brief explanation of the more significant risks associated with the Registrants' businesses is provided in Part 1, Item 1A. Risk Factors in DTE Energy's and DTE Electric's combined 20162021 Annual Report on Form 10-K. Although the Registrants have tried to identify and discuss key risk factors, others could emerge in the future.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of DTE Energy Equity Securities by the Issuer and Affiliated Purchasers
The following table provides information about DTE EnergyEnergy's purchases of equity securities that are registered by DTE Energy pursuant to Section 12 of the Exchange Act of 1934 for the quarter ended September 30, 2017:2022:
Number of
Shares
Purchased(a)
Average
Price
Paid per
Share(a)
Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs		Average
Price Paid
per Share		Maximum Dollar
Value that May
Yet Be
Purchased Under
the Plans or
Programs
07/01/22 - 07/31/225,035 $106.01 — — — 
08/01/22 - 08/31/221,264 $117.14 — — — 
09/01/22 - 09/30/22565 $119.44 — — — 
Total6,864 — 

(a)Represents shares of DTE Energy common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the price in effect at the grant date.

74
 
Number of
Shares
Purchased(a)
 
Average
Price
Paid per
Share(a)
 
Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
 
Average
Price Paid
per Share
 
Maximum Dollar
Value that May
Yet Be
Purchased Under
the Plans or
Programs
07/01/2017 — 07/31/20172,287
 $106.05
 —
 —
 —
08/01/2017 — 08/31/20177,066
 $97.73
 —
 —
 —
09/01/2017 — 09/30/2017440
 $97.78
 —
 —
 —
Total9,793
   —
    

Table of Contents
Item 6. Exhibits
(a)Exhibit NumberRepresents shares of common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the price in effect at the grant date.DescriptionDTE
Energy		DTE
Electric



Item 6. Exhibits
(i) Exhibits filed herewith:
Exhibit NumberDescription
DTE
Energy4.1
DTE
Electric
(i) Exhibits filed herewith:
10.107
Supplemental Indenture dated as of August 1, 2017,2022 to the MortgageAmended and Deed of TrustRestated Indenture dated as of OctoberApril 9, 2001, amending the Series F Supplemental Indenture dated as of November 1, 1924,2019 between DTE ElectricEnergy Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee. (2017 trustee (2019 Series B).F)XX
Forty-EighthFifty-third Supplemental Indenture dated as of September 1, 20172022, to Indenture of Mortgage and Deed of Trust, dated as of March 1, 1944, between DTE Gas Company and Citibank, N.A. (2017 First Mortgage Bonds, trustee (2022 Series C and D).X
Computation of Ratio of Earnings to Fixed ChargesFifth Amended and Restated Five Year Credit Agreement dated October 25, 2022 by and among DTE Energy Company, the lenders listed on the signature pages thereof and Citibank, N.A., as Administrative AgentX
Computation of Ratio of Earnings to Fixed ChargesFifth Amended and Restated Five Year Credit Agreement dated October 25, 2022 by and among DTE Electric Company, the lenders listed on the signature pages thereof and Citibank, N.A., as Administrative AgentX
Fifth Amended and Restated Five Year Credit Agreement dated October 25, 2022 by and among DTE Gas Company, the lenders listed on the signature pages thereof and Citibank, N.A., as Administrative AgentX
Chief Executive Officer Section 302 Form 10-Q Certification of Periodic ReportX
Chief Financial Officer Section 302 Form 10-Q Certification of Periodic ReportX
Chief Executive Officer Section 302 Form 10-Q Certification of Periodic ReportX
Chief Financial Officer Section 302 Form 10-Q Certification of Periodic ReportX
101.INSXBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.XX
101.SCHXBRL Taxonomy Extension SchemaXX
101.CALXBRL Taxonomy Extension Calculation LinkbaseXX
101.DEFXBRL Taxonomy Extension Definition DatabaseXX
101.LABXBRL Taxonomy Extension Label LinkbaseXX
101.PREXBRL Taxonomy Extension Presentation LinkbaseXX
(ii) Exhibits furnished herewith:
Chief Executive Officer Section 906 Form 10-Q Certification of Periodic ReportX
Chief Financial Officer Section 906 Form 10-Q Certification of Periodic ReportX
Chief Executive Officer Section 906 Form 10-Q Certification of Periodic ReportX
Chief Financial Officer Section 906 Form 10-Q Certification of Periodic ReportX



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Table of Contents
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. The signature for each undersigned Registrant shall be deemed to relate only to matters having reference to such Registrant and any subsidiaries thereof.
Date:October 27, 2022
DTE ENERGY COMPANY
By:/S/ TRACY J. MYRICK
Tracy J. Myrick
Chief Accounting Officer
(Duly Authorized Officer)
Date:October 25, 2017DTE ELECTRIC COMPANY
DTE ENERGY COMPANY
By:/S/ TRACY J. MYRICK
By:/S/DONNA M. ENGLAND
Donna M. England
Tracy J. Myrick
Chief Accounting Officer
(Duly Authorized Officer)
DTE ELECTRIC COMPANY
By:/S/DONNA M. ENGLAND
Donna M. England
Chief Accounting Officer
(Duly Authorized Officer)

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