Document_Entity_Information_Do
Document Entity Information Document (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DTE ELECTRIC CO | |
Entity Central Index Key | 28385 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 138,632,324 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Operating Revenues | $5,282 | $5,197 | $5,291 |
Operating Expenses | |||
Fuel and purchased power | 1,706 | 1,668 | 1,758 |
Operation and maintenance | 1,331 | 1,376 | 1,429 |
Depreciation and amortization | 927 | 896 | 822 |
Taxes other than income | 267 | 260 | 256 |
Asset (gains) losses and impairments, net | -1 | -3 | -2 |
Total operating expenses | 4,230 | 4,197 | 4,263 |
Operating Income | 1,052 | 1,000 | 1,028 |
Other (Income) and Deductions | |||
Interest expense | 250 | 268 | 272 |
Interest income | -1 | 0 | -1 |
Other income | -62 | -54 | -53 |
Other expenses | 35 | 45 | 42 |
Total Other (Income) and Deductions | 222 | 259 | 260 |
Income Before Income Taxes | 830 | 741 | 768 |
Income Tax Expense | 298 | 254 | 282 |
Net Income | $532 | $487 | $486 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $532 | $487 | $486 |
Other comprehensive income (loss), net of tax: | |||
Benefit obligations, net of tax of $(4), $4 and $(1), respectively | -10 | 5 | -2 |
Net unrealized gains on investments during the period, net of taxes of $—, $— and $—, respectively | 0 | 1 | 0 |
Other comprehensive income (loss) | -10 | 6 | -2 |
Comprehensive income | $522 | $493 | $484 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax effect on benefit obligations | ($4) | $4 | ($1) |
Tax effect on unrealized gains | $0 | $0 | $0 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $14 | $27 |
Restricted cash, principally Securitization | 96 | 100 |
Accounts receivable (less allowance for doubtful accounts of $29 and $28, respectively) | ||
Customer | 688 | 723 |
Affiliates | 31 | 24 |
Other | 15 | 24 |
Inventories | ||
Fuel | 269 | 188 |
Materials and supplies | 231 | 215 |
Notes receivable | ||
Affiliates | 8 | 200 |
Other | 8 | 2 |
Regulatory assets | 46 | 13 |
Other | 75 | 68 |
Total Current Assets | 1,481 | 1,584 |
Investments | ||
Nuclear decommissioning trust funds | 1,241 | 1,191 |
Other | 172 | 160 |
Total Investments | 1,413 | 1,351 |
Property | ||
Property, plant and equipment | 19,805 | 18,730 |
Less accumulated depreciation and amortization | -7,216 | -6,951 |
Property, plant and equipment, net | 12,589 | 11,779 |
Other Assets | ||
Regulatory assets | 2,913 | 2,275 |
Securitized regulatory assets | 34 | 231 |
Intangible assets | 37 | 41 |
Other | 182 | 149 |
Total Noncurrent Assets | 3,166 | 2,696 |
Total Assets | 18,649 | 17,410 |
Accounts payable | ||
Affiliates | 60 | 60 |
Other | 366 | 424 |
Accrued interest | 58 | 61 |
Current portion long-term debt, including capital leases | 118 | 504 |
Regulatory liabilities | 150 | 278 |
Deferred income taxes | 0 | 91 |
Short-term borrowings | ||
Affiliates | 84 | 58 |
Other | 50 | 0 |
Other | 151 | 177 |
Total Current Liabilities | 1,037 | 1,653 |
Long-Term Debt (net of current portion) | ||
Mortgage bonds, notes and other | 5,144 | 4,540 |
Securitization bonds | 0 | 105 |
Capital lease obligations | 0 | 4 |
Total Long-Term Debt (net of current portion) | 5,144 | 4,649 |
Other Liabilities | ||
Deferred income taxes | 3,188 | 2,807 |
Regulatory liabilities | 245 | 386 |
Asset retirement obligations | 1,796 | 1,667 |
Unamortized investment tax credit | 36 | 41 |
Nuclear decommissioning | 182 | 178 |
Accrued pension liability — affiliates | 1,200 | 705 |
Accrued postretirement liability — affiliates | 520 | 369 |
Other | 105 | 101 |
Total Noncurrent Liabilities | 7,272 | 6,254 |
Commitments and Contingencies (Notes 7 and 15) | ||
Shareholder’s Equity | ||
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding | 3,786 | 3,596 |
Retained earnings | 1,436 | 1,274 |
Accumulated other comprehensive loss | -26 | -16 |
Total Shareholder's Equity | 5,196 | 4,854 |
Total Liabilities and Shareholder’s Equity | $18,649 | $17,410 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets | ||
Allowance for doubtful accounts | $29 | $28 |
Shareholder’s Equity | ||
Common stock par value (in dollars per share) | $10 | $10 |
Common stock shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock shares issued (In shares) | 138,632,324 | 138,632,324 |
Common stock shares outstanding (in shares) | 138,632,324 | 138,632,324 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $532 | $487 | $486 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 927 | 896 | 822 |
Nuclear fuel amortization | 48 | 38 | 29 |
Allowance for equity funds used during construction | -21 | -14 | -12 |
Deferred income taxes | 297 | 108 | -52 |
Asset (gains) losses and impairments, net | -1 | -3 | -2 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 33 | -30 | 24 |
Inventories | -97 | 36 | 7 |
Accounts payable | 11 | -23 | -64 |
Regulatory assets and liabilities | -926 | 1,029 | 286 |
Accrued pension liability — affiliates | 495 | -663 | 137 |
Accrued postretirement liability — affiliates | 151 | -417 | -221 |
Other assets | -25 | 0 | 30 |
Other liabilities | -40 | 44 | 42 |
Net cash from operating activities | 1,384 | 1,488 | 1,512 |
Investing Activities | |||
Plant and equipment expenditures | -1,561 | -1,325 | -1,230 |
Notes receivable from affiliate | 192 | -200 | 26 |
Proceeds from sale of nuclear decommissioning trust fund assets | 1,146 | 1,118 | 759 |
Investment in nuclear decommissioning trust funds | -1,156 | -1,134 | -764 |
Other | -10 | -31 | -21 |
Net cash used for investing activities | -1,389 | -1,572 | -1,230 |
Financing Activities | |||
Issuance of long-term debt, net of issuance costs | 942 | 768 | 496 |
Redemption of long-term debt | -837 | -590 | -587 |
Capital contribution by parent company | 190 | 400 | 0 |
Short-term borrowings, net — other | 50 | -130 | 130 |
Short-term borrowings, net — affiliate | 26 | -22 | 16 |
Dividends on common stock | -370 | -342 | -317 |
Other | -9 | -3 | -3 |
Net cash from (used for) financing activities | -8 | 81 | -265 |
Net Increase (Decrease) in Cash and Cash Equivalents | -13 | -3 | 17 |
Cash and Cash Equivalents at Beginning of the Period | 27 | 30 | 13 |
Cash and Cash Equivalents at End of the Period | 14 | 27 | 30 |
Supplemental disclosure of cash information | |||
Cash paid (received) for: Interest (net of interest capitalized) | 240 | 256 | 280 |
Cash paid (received) for: Income taxes | 4 | 183 | 223 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Plant and equipment expenditures in accounts payable | $162 | $231 | $144 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Accumulated Defined Benefit Plans Adjustment | Accumulated Net Unrealized Investment Gain (Loss) |
In Millions, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $4,136 | $1,386 | $1,810 | $960 | ($20) | ||
Beginning Balance (in shares) at Dec. 31, 2011 | 138,632,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 486 | 486 | |||||
Dividends declared on common stock | -317 | -317 | |||||
Other Comprehensive Income (Loss), Net of Tax | -2 | -2 | |||||
Ending balance at Dec. 31, 2012 | 4,303 | 1,386 | 1,810 | 1,129 | -22 | ||
Ending Balance (in shares) at Dec. 31, 2012 | 138,632,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 487 | 487 | |||||
Dividends declared on common stock | -342 | -342 | |||||
Other Comprehensive Income (Loss), Net of Tax | 6 | 5 | 1 | ||||
Capital contribution by parent company | 400 | 400 | |||||
Ending balance at Dec. 31, 2013 | 4,854 | 1,386 | 2,210 | 1,274 | -16 | ||
Ending Balance (in shares) at Dec. 31, 2013 | 138,632,324 | 138,632,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 532 | 532 | |||||
Dividends declared on common stock | -370 | -370 | |||||
Other Comprehensive Income (Loss), Net of Tax | -10 | -10 | |||||
Capital contribution by parent company | 190 | 190 | |||||
Ending balance at Dec. 31, 2014 | $5,196 | $1,386 | $2,400 | $1,436 | ($26) | ||
Ending Balance (in shares) at Dec. 31, 2014 | 138,632,324 | 138,632,000 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION | |||||||
Corporate Structure | ||||||||
DTE Electric is an electric utility engaged in the generation, purchase, distribution and sale of electricity to approximately 2.1 million customers in southeastern Michigan. DTE Electric is regulated by the MPSC and the FERC. In addition, we are regulated by other federal and state regulatory agencies including the NRC, the EPA and the MDEQ. | ||||||||
References in this Report to “we,” “us,” “our” or “Company” are to DTE Electric and its subsidiaries, collectively. | ||||||||
Basis of Presentation | ||||||||
The accompanying Consolidated Financial Statements 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 Company’s estimates. | ||||||||
Principles of Consolidation | ||||||||
The Company consolidates all majority-owned subsidiaries and investments in entities in which it has controlling influence. Non-majority owned investments are accounted for using the equity method when the Company is able to influence the operating policies of the investee. When the Company does not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect the Company’s proportionate interests in certain jointly owned utility plants. The Company eliminates all intercompany balances and transactions. | ||||||||
The Company evaluates whether an entity is a VIE whenever reconsideration events occur. The Company consolidates VIEs for which it is the primary beneficiary. If the Company 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, the Company 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 Company performs ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed. | ||||||||
The Company has variable interests in VIEs through certain of its long-term purchase contracts. As of December 31, 2014, the carrying amount of assets and liabilities in the Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominately related to working capital accounts and generally represent the amounts owed by the Company for the deliveries associated with the current billing cycle under the contracts. The Company has not provided any significant form of financial support associated with these long-term contracts. There is no significant potential exposure to loss as a result of its variable interests through these long-term purchase contracts. | ||||||||
In 2001, DTE Electric financed a regulatory asset related to Fermi 2 and certain other regulatory assets through the sale of rate reduction bonds by a wholly-owned special purpose entity, Securitization. DTE Electric performs servicing activities including billing and collecting surcharge revenue for Securitization. This entity is a VIE and is consolidated by the Company. The maximum risk exposure related to Securitization is reflected on the Company’s Consolidated Statements of Financial Position. | ||||||||
The following table summarizes the major balance sheet items at December 31, 2014 and 2013 restricted for Securitization that are either (1) assets that can be used only to settle their obligations related to Securitization or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Restricted cash | $ | 96 | $ | 100 | ||||
Accounts receivable | 26 | 34 | ||||||
Securitized regulatory assets | 34 | 231 | ||||||
Other current and long-term assets | 1 | 4 | ||||||
$ | 157 | $ | 369 | |||||
LIABILITIES | ||||||||
Accounts payable and accrued current liabilities | $ | 3 | $ | 7 | ||||
Current portion long-term debt, including capital leases | 105 | 196 | ||||||
Current regulatory liabilities | 32 | 43 | ||||||
Securitization bonds | — | 105 | ||||||
Other current and long-term liabilities | 9 | 8 | ||||||
$ | 149 | $ | 359 | |||||
Significant_Accounting_Policie
Significant Accounting Policies (Note) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Revenues | ||||||||||||
Revenues from the sale and delivery of electricity are recognized as services are provided. The Company records revenues for electricity provided but unbilled at the end of each month. Rates for DTE Electric include provisions to adjust billings for fluctuations in fuel and purchased power costs, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are recorded on the Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors. | ||||||||||||
See Note 7, "Regulatory Matters", for further discussion of recovery mechanisms authorized by the MPSC. | ||||||||||||
Accounting for ISO Transactions | ||||||||||||
DTE Electric participates in the energy market through MISO. MISO requires that we submit hourly day-ahead, real- time and FTR bids and offers for energy at locations across the MISO region. DTE Electric accounts for MISO transactions on a net hourly basis in each of the day-ahead, real-time and FTR markets and net transactions across all MISO energy market locations. In any single hour DTE Electric records net purchases in Fuel and purchased power and net sales in Operating revenues on the Consolidated Statements of Operations. DTE Electric records accruals for future net purchases adjustments based on historical experience, and reconciles accruals to actual costs when invoices are received from MISO. | ||||||||||||
Changes in Accumulated Other Comprehensive Loss | ||||||||||||
Comprehensive income (loss) is the change in common shareholder’s equity during a period from transactions and events from non-owner sources, including net income. The amounts recorded to accumulated other comprehensive loss include unrealized gains and losses on available-for-sale securities and changes in benefit obligations, consisting of deferred actuarial losses, and prior service costs. | ||||||||||||
The following table summarizes the changes in Accumulated other comprehensive loss by component for the years ended December 31, 2014 and 2013: | ||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component (a) | ||||||||||||
Net Unrealized Gain/(Loss) on Investments | Benefit Obligations (b) | Total | ||||||||||
(In millions) | ||||||||||||
Balance, January 1, 2013 | $ | — | $ | (22 | ) | $ | (22 | ) | ||||
Other comprehensive income before reclassifications | 1 | 3 | 4 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 2 | 2 | |||||||||
Net current-period other comprehensive income | 1 | 5 | 6 | |||||||||
Balance, December 31, 2013 | $ | 1 | $ | (17 | ) | $ | (16 | ) | ||||
Other comprehensive loss before reclassifications | — | (12 | ) | (12 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 2 | 2 | |||||||||
Net current-period other comprehensive loss | — | (10 | ) | (10 | ) | |||||||
Balance, December 31, 2014 | $ | 1 | $ | (27 | ) | $ | (26 | ) | ||||
________________________________________ | ||||||||||||
(a) | All amounts are net of tax. | |||||||||||
(b) | The amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of the net periodic pension and other postretirement benefit costs (see Note 16 to the Consolidated Financial Statements "Retirement Benefits and Trusteed Assets"). | |||||||||||
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 consists of funds held to satisfy requirements of certain debt agreements, related to Securitization bonds. Restricted cash designated for interest and principal payments within one year is classified as a current asset. | ||||||||||||
Receivables | ||||||||||||
Accounts receivable are primarily composed of trade receivables and unbilled revenue. Our accounts receivable are stated at net realizable value. | ||||||||||||
The allowance for doubtful accounts is generally calculated using the aging approach that utilizes rates developed in reserve studies. DTE Electric establishes an allowance for uncollectible accounts based on historical losses and management’s assessment of existing 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. We 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. | ||||||||||||
Unbilled revenues of $250 million and $280 million are included in customer accounts receivable at December 31, 2014 and 2013, respectively. | ||||||||||||
Notes Receivable | ||||||||||||
Notes receivable, or financing receivables, are primarily comprised of loans and are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. The Company ceases accruing interest (nonaccrual status), considers a note receivable impaired, and establishes 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. Cash payments received on nonaccrual status notes receivable, that do not bring the account contractually current, are first applied to contractually owed past due interest, with any remainder applied to principal. Accrual of interest is generally resumed when the note receivable becomes contractually current. | ||||||||||||
In determining the allowance for credit losses for notes receivable, we consider the historical payment experience and other factors that are expected to have a specific impact on the counterparty’s ability to pay. In addition, the Company monitors the credit ratings of the counterparties from which we have notes receivable. | ||||||||||||
Inventories | ||||||||||||
The Company generally values inventory at average cost. | ||||||||||||
Property, Retirement and Maintenance, and Depreciation, Depletion and Amortization | ||||||||||||
Property is stated at cost and includes construction-related labor, materials, overheads and AFUDC. The cost of properties retired is charged to accumulated depreciation. Expenditures for maintenance and repairs are charged to expense when incurred, except for Fermi 2. | ||||||||||||
Utility property is depreciated over its estimated useful life using straight-line rates approved by the MPSC. | ||||||||||||
Depreciation and amortization expense also includes the amortization of certain regulatory assets. | ||||||||||||
Approximately $16 million and $26 million of expenses related to Fermi 2 refueling outages were accrued at December 31, 2014 and 2013, respectively. Amounts are accrued on a pro-rata basis, generally over an 18-month period, that coincides with scheduled refueling outages at Fermi 2. This accrual of outage costs matches the regulatory recovery of these costs in rates set by the MPSC. See Note 7 to the Consolidated Financial Statements, "Regulatory Matters". | ||||||||||||
The cost of nuclear fuel is capitalized. The amortization of nuclear fuel is included within Fuel and purchased power in the Consolidated Statements of Operations and is recorded using the units-of-production method. | ||||||||||||
Long-Lived Assets | ||||||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of the asset exceeds the expected discounted future cash flows generated by the asset, an impairment loss is recognized resulting in the asset being written down to its estimated fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. | ||||||||||||
Intangible Assets | ||||||||||||
The Company has certain intangible assets relating to emission allowances and renewable energy credits as shown below: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Emission allowances | $ | 1 | $ | 2 | ||||||||
Renewable energy credits | 45 | 51 | ||||||||||
46 | 53 | |||||||||||
Less current intangible assets | 9 | 12 | ||||||||||
$ | 37 | $ | 41 | |||||||||
Emission allowances and renewable energy credits are charged to expense, using average cost, as the allowances and credits are consumed in the operation of the business. | ||||||||||||
Excise and Sales Taxes | ||||||||||||
The Company records the billing of excise and sales taxes as a receivable with an offsetting payable to the applicable taxing authority, with no net impact on the Consolidated Statements of Operations. | ||||||||||||
Deferred Debt Costs | ||||||||||||
The costs related to the issuance of long-term debt are deferred and amortized over the life of each debt issue. In accordance with MPSC regulations, the unamortized discount, premium and expense related to debt redeemed with a refinancing are amortized over the life of the replacement issue. | ||||||||||||
Investments in Debt and Equity Securities | ||||||||||||
The Company generally classifies investments in debt and equity securities as either trading or available-for-sale and has recorded such investments at market value with unrealized gains or losses included in earnings or in other comprehensive income or loss, respectively. Changes in the fair value of Fermi 2 nuclear decommissioning investments are recorded as adjustments to regulatory assets or liabilities, due to a recovery mechanism from customers. The Company’s equity investments are reviewed for impairment each reporting period. If the assessment indicates that the impairment is other than temporary, a loss is recognized resulting in the equity investment being written down to its estimated fair value. See Note 9 to the Consolidated Financial Statements, "Fair Value". | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company received an allocation of costs from DTE Energy associated with stock-based compensation. Our allocation for 2014, 2013 and 2012 for stock-based compensation expense was approximately $62 million, $58 million and $42 million, respectively. | ||||||||||||
Government Grants | ||||||||||||
Grants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met. When grants are received related to Property, plant and equipment, the Company reduces the cost of the assets on the Consolidated Statements of Financial Position, resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of the associated expense in the period in which the expense is incurred. | ||||||||||||
Other Accounting Policies | ||||||||||||
See the following notes for other accounting policies impacting the Company’s Consolidated Financial Statements: | ||||||||||||
Note | Title | |||||||||||
6 | Asset Retirement Obligations | |||||||||||
7 | Regulatory Matters | |||||||||||
8 | Income Taxes | |||||||||||
9 | Fair Value | |||||||||||
10 | Financial and Other Derivative Instruments |
New_Accounting_Pronouncements_
New Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS |
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. 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 revenue standard is effective for the first interim period within annual reporting periods beginning after December 15, 2016 and is to be applied retrospectively. Early adoption is not permitted. The Company is currently assessing the impact of this ASU on its Consolidated Financial Statements. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT | |||||||
Summary of property by classification as of December 31: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Property, Plant and Equipment | ||||||||
Generation | $ | 11,641 | $ | 11,127 | ||||
Distribution | 8,164 | 7,603 | ||||||
Total | 19,805 | 18,730 | ||||||
Less Accumulated Depreciation and Amortization | ||||||||
Generation | (4,149 | ) | (4,004 | ) | ||||
Distribution | (3,067 | ) | (2,947 | ) | ||||
Total | (7,216 | ) | (6,951 | ) | ||||
Net Property, Plant and Equipment | $ | 12,589 | $ | 11,779 | ||||
AFUDC capitalized was approximately $32 million and $21 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||
The composite depreciation rate for DTE Electric was approximately 3.4% in 2014 and 2013 and 3.3% in 2012. | ||||||||
The average estimated useful life for our generation and distribution property was 40 years and 41 years, respectively, at December 31, 2014. | ||||||||
Capitalized software costs are classified as Property, plant and equipment and the related amortization is included in Accumulated depreciation and amortization on the Consolidated Statements of Financial Position. The Company capitalizes the costs associated with computer software it develops or obtains for use in its business. The Company amortizes capitalized software costs on a straight-line basis over the expected period of benefit, ranging from 5 to 15 years. | ||||||||
Capitalized software costs amortization expense was $71 million in 2014, $64 million in 2013 and $62 million in 2012. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2014 were $590 million and $293 million, respectively. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2013 were $521 million and $269 million, respectively. | ||||||||
Gross property under capital leases was $9 million at December 31, 2014 and 2013. Accumulated amortization of property under capital leases was $5 million and $1 million at December 31, 2014 and 2013, respectively. |
Jointly_Owned_Utility_Plant_No
Jointly Owned Utility Plant (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | ||||||||
Jointly Owned Utility Plant | JOINTLY OWNED UTILITY PLANT | |||||||
DTE Electric has joint ownership interest in two power plants, Belle River and Ludington Hydroelectric Pumped Storage. DTE Electric’s share of direct expenses of the jointly owned plants are included in Fuel and purchased power and Operation and maintenance expenses in the Consolidated Statements of Operations. Ownership information of the two utility plants as of December 31, 2014 was as follows: | ||||||||
Belle River | Ludington | |||||||
Hydroelectric | ||||||||
Pumped Storage | ||||||||
In-service date | 1984-1985 | 1973 | ||||||
Total plant capacity | 1,270 | MW | 1,872 | MW | ||||
Ownership interest | (a) | 49 | % | |||||
Investment in property, plant and equipment (in millions) | $ | 1,742 | $ | 412 | ||||
Accumulated depreciation (in millions) | $ | 993 | $ | 175 | ||||
_________________________________ | ||||||||
(a) | DTE Electric’s ownership interest is 63% in Unit No. 1, 81% of the facilities applicable to Belle River used jointly by the Belle River and St. Clair Power Plants and 75% in common facilities used at Unit No. 2. | |||||||
Belle River | ||||||||
The Michigan Public Power Agency (MPPA) has an ownership interest in Belle River Unit No. 1 and other related facilities. The MPPA is entitled to 19% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance and capital improvement costs. | ||||||||
Ludington Hydroelectric Pumped Storage | ||||||||
Consumers Energy Company has an ownership interest in the Ludington Hydroelectric Pumped Storage Plant. Consumers Energy is entitled to 51% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance and capital improvement costs. |
Asset_Retirement_Obligations_N
Asset Retirement Obligations (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS | |||
The Company has a legal retirement obligation for the decommissioning costs for its Fermi 1 and Fermi 2 nuclear plants, dismantlement of facilities located on leased property and various other operations. The Company has conditional retirement obligations for asbestos and PCB removal at certain of its power plants and various distribution equipment. The Company recognizes such obligations as liabilities at fair market value when they are incurred, which generally is at the time the associated assets are placed in service. Fair value is measured using expected future cash outflows discounted at our credit-adjusted risk-free rate. The Company recognizes regulatory assets or liabilities for timing differences in expense recognition for legal asset retirement costs that are currently recovered in rates. | ||||
If a reasonable estimate of fair value cannot be made in the period in which the retirement obligation is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. Substations, manholes and certain other distribution assets have an indeterminate life. Therefore, no liability has been recorded for these assets. | ||||
A reconciliation of the asset retirement obligations for 2014 follows: | ||||
(In millions) | ||||
Asset retirement obligations at December 31, 2013 | $ | 1,667 | ||
Accretion | 103 | |||
Liabilities incurred | 9 | |||
Liabilities settled | (6 | ) | ||
Revision in estimated cash flows | 23 | |||
Asset retirement obligations at December 31, 2014 | $ | 1,796 | ||
Approximately $1.7 billion of the asset retirement obligations represent nuclear decommissioning liabilities that are funded through a surcharge to electric customers over the life of the Fermi 2 nuclear plant. The NRC has jurisdiction over the decommissioning of nuclear power plants and requires minimum decommissioning funding based upon a formula. The MPSC and FERC regulate the recovery of costs of decommissioning nuclear power plants and both require the use of external trust funds to finance the decommissioning of Fermi 2. Rates approved by the MPSC provide for the recovery of decommissioning costs of Fermi 2 and the disposal of low-level radioactive waste. DTE Electric is continuing to fund FERC jurisdictional amounts for decommissioning even though explicit provisions are not included in FERC rates. The Company believes the MPSC and FERC collections will be adequate to fund the estimated cost of decommissioning. The decommissioning assets, anticipated earnings thereon and future revenues from decommissioning collections will be used to decommission Fermi 2. The Company expects the liabilities to be reduced to zero at the conclusion of the decommissioning activities. If amounts remain in the trust funds for Fermi 2 following the completion of the decommissioning activities, those amounts will be disbursed based on rulings by the MPSC and FERC. | ||||
A portion of the funds recovered through the Fermi 2 decommissioning surcharge and deposited in external trust accounts is designated for the removal of non-radioactive assets and returning the site to greenfield. This removal and greenfielding is not considered a legal liability. Therefore, it is not included in the asset retirement obligation, but is reflected as the Nuclear decommissioning liability. The decommissioning of Fermi 1 is funded by DTE Electric. Contributions to the Fermi 1 trust are discretionary. See Note 9 to the Consolidated Financial Statements, "Fair Value", for additional discussion of Nuclear decommissioning trust fund assets. |
Regulatory_Matters_Notes
Regulatory Matters (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||
Regulatory Matters | REGULATORY MATTERS | |||||||
Regulation | ||||||||
DTE Electric is subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs, including the costs of generating facilities and regulatory assets, conditions of service, accounting and operating-related matters. DTE Electric is also regulated by the FERC with respect to financing authorization and wholesale electric activities. Regulation results in differences in the application of generally accepted accounting principles between regulated and non-regulated businesses. | ||||||||
The Company is unable to predict the outcome of the unresolved regulatory matters discussed herein. Resolution of these matters is dependent upon future MPSC orders and appeals, which may materially impact the financial position, results of operations and cash flows of the Company. | ||||||||
Regulatory Assets and Liabilities | ||||||||
DTE Electric is required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of providing regulated services and be charged to and collected from customers. Future regulatory changes or changes in the competitive environment could result in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of our businesses and may require the write-off of the portion of any regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current regulatory environment. | ||||||||
The following are balances and a brief description of the regulatory assets and liabilities at December 31: | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Assets | ||||||||
Recoverable pension and other postretirement costs: | ||||||||
Pension | $ | 1,743 | $ | 1,257 | ||||
Other postretirement costs | 191 | — | ||||||
Asset retirement obligation | 448 | 394 | ||||||
Recoverable Michigan income taxes | 220 | 237 | ||||||
Other recoverable income taxes | 66 | 71 | ||||||
Cost to achieve Performance Excellence Process | 46 | 64 | ||||||
Unamortized loss on reacquired debt | 44 | 38 | ||||||
Accrued PSCR revenue | 34 | — | ||||||
Recoverable income taxes related to securitized regulatory assets | 19 | 126 | ||||||
Removal costs asset | 15 | — | ||||||
Transitional Reconciliation Mechanism | 14 | — | ||||||
Other | 119 | 101 | ||||||
2,959 | 2,288 | |||||||
Less amount included in current assets | (46 | ) | (13 | ) | ||||
$ | 2,913 | $ | 2,275 | |||||
Securitized regulatory assets | $ | 34 | $ | 231 | ||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Liabilities | ||||||||
Renewable energy | $ | 227 | $ | 277 | ||||
Over recovery of Securitization | 71 | 72 | ||||||
Refundable revenue decoupling / deferred gain | 63 | 127 | ||||||
Fermi 2 refueling outage | 16 | 26 | ||||||
Energy optimization | 14 | 25 | ||||||
Accrued PSCR refund | — | 53 | ||||||
Refundable other postretirement costs | — | 48 | ||||||
Removal costs liability | — | 33 | ||||||
Other | 4 | 3 | ||||||
395 | 664 | |||||||
Less amount included in current liabilities | (150 | ) | (278 | ) | ||||
$ | 245 | $ | 386 | |||||
As noted below, regulatory assets for which costs have been incurred have been included (or are expected to be included, for costs incurred subsequent to the most recently approved rate case) in DTE Electric's rate base, thereby providing a return on invested costs (except as noted). Certain other regulatory assets are not included in rate base but accrue recoverable carrying charges until surcharges to collect the assets are billed. Certain regulatory assets do not result from cash expenditures and therefore do not represent investments included in rate base or have offsetting liabilities that reduce rate base. | ||||||||
ASSETS | ||||||||
• | Recoverable pension and other postretirement costs — Accounting rules for pension and other postretirement benefit costs require, among other things, the recognition in other comprehensive income of the actuarial gains or losses and the prior service costs that arise during the period but that are not immediately recognized as components of net periodic benefit costs. The Company records the impact of actuarial gains and losses and prior service costs as a regulatory asset since the traditional rate setting process allows for the recovery of pension and other postretirement costs. The asset will reverse as the deferred items are amortized and recognized as components of net periodic benefit costs. (a) | |||||||
• | Asset retirement obligation — This obligation is primarily for Fermi 2 decommissioning costs. The asset captures the timing differences between expense recognition and current recovery in rates and will reverse over the remaining life of the related plant. (a) | |||||||
• | Recoverable Michigan income taxes — In July 2007, the MBT was enacted by the State of Michigan. A State deferred tax liability was established, and an offsetting regulatory asset was recorded as the impact of the deferred tax liability will be reflected in rates as the related taxable temporary difference reverses and flows through current income tax expense. In May 2011, the MBT was repealed and the MCIT was enacted. The regulatory asset was remeasured to reflect the impact of the MCIT tax rate. (a) | |||||||
• | Other recoverable income taxes — Income taxes receivable from DTE Electric customers representing the difference in property-related deferred income taxes and amounts previously reflected in DTE Electric's rates. This asset will reverse over the remaining life of the related plant. (a) | |||||||
• | Cost to achieve Performance Excellence Process (PEP) — The MPSC authorized the deferral of costs to implement the PEP. These costs consist of employee severance, project management and consultant support. These costs are amortized over a ten-year period beginning with the year subsequent to the year the costs were deferred. | |||||||
• | Unamortized loss on reacquired debt — The unamortized discount, premium and expense related to debt redeemed with a refinancing are deferred, amortized and recovered over the life of the replacement issue. | |||||||
• | Accrued PSCR revenue — Receivable for the temporary under-recovery of and carrying costs on fuel and purchased power costs incurred by DTE Electric which are recoverable through the PSCR mechanism. | |||||||
• | Recoverable income taxes related to securitized regulatory assets — Receivable for the recovery of income taxes to be paid on the non-bypassable securitization bond surcharge. A non-bypassable securitization tax surcharge, which ended in December 2014, was in place to recover the income tax over a fourteen-year period. (a) | |||||||
• | Removal costs asset — Receivable for the recovery of asset removal expenditures in excess of amounts collected from customers. | |||||||
• | Transitional Reconciliation Mechanism (TRM) — The MPSC approved the recovery of the deferred net incremental revenue requirement associated with the transition of PLD customers to DTE Electric's distribution system, effective July 1, 2014. Annual reconciliations will be filed and surcharges will be implemented to recover approved amounts. (a) | |||||||
• | Securitized regulatory assets — The net book balance of the Fermi 2 nuclear plant was written off in 1998 and an equivalent regulatory asset was established. In 2001, the Fermi 2 regulatory asset and certain other regulatory assets were securitized pursuant to PA 142 and an MPSC order. A non-bypassable securitization bond surcharge, which ended in December 2014, was in place to recover the securitized regulatory asset over a fourteen-year period. | |||||||
_________________________________ | ||||||||
(a) | Regulatory assets not earning a return or accruing carrying charges. | |||||||
LIABILITIES | ||||||||
• | Renewable energy — Amounts collected in rates in excess of renewable energy expenditures. | |||||||
• | Over recovery of Securitization — Over recovery of securitization bond expenses. | |||||||
• | Refundable revenue decoupling / deferred gain — Amounts were originally accrued as refundable to DTE Electric customers for the change in revenue resulting from the difference between actual average sales per customer compared to the base level of average sales per customer established by the MPSC. In 2012, the Michigan Court of Appeals issued a decision reversing the MPSC's decision to authorize a RDM for DTE Electric. The revenue decoupling liability was reversed and, after receiving an order from the MPSC to defer the resulting gain for future amortization, DTE Electric created a regulatory liability representing its obligation to refund the gain. The deferred gain is being amortized into earnings in 2014 and 2015. | |||||||
• | Fermi 2 refueling outage — Accrued liability for refueling outage at Fermi 2 pursuant to MPSC authorization. | |||||||
• | Energy optimization (EO) — Amounts collected in rates in excess of energy optimization expenditures. | |||||||
• | Accrued PSCR refund — Liability for the temporary over-recovery of and a return on power supply costs and transmission costs incurred by DTE Electric which are recoverable through the PSCR mechanism. | |||||||
• | Refundable other postretirement costs — Accounting rules for other postretirement benefit costs require, among other things, the recognition in other comprehensive income of the actuarial gains or losses and the prior service costs or credits that arise during the period but that are not immediately recognized as components of net periodic benefit costs. DTE Electric records the favorable impact of actuarial gains or losses and prior service credits as a regulatory liability since the impact will reduce expense in a future rate setting process as the deferred items are recognized as a component of net periodic benefit costs. | |||||||
• | Removal costs liability — The amount collected from customers for the funding of future asset removal activities. | |||||||
2014 Electric Rate Case Filing | ||||||||
DTE Electric filed a rate case with the MPSC on December 19, 2014 requesting an increase in base rates of $370 million based on a projected twelve-month period ending June 30, 2016. The requested in base rates is due primarily to an increase in net plant resulting from infrastructure investments, plant acquisitions, environmental compliance and reliability improvement projects. The rate filing also included projected changes in sales, working capital, operation and maintenance expenses, return on equity and capital structure. New rates could be self-implemented in July 2015, with a final order expected in December 2015. | ||||||||
2010 Electric Rate Case Filing - Court of Appeals Decision | ||||||||
In July 2013, the MCOA issued a decision relating to an appeal of the October 2011 MPSC order in DTE Electric's October 2010 rate case filing. The MCOA found that the record of evidence in the 2010 rate case order was insufficient to support the MPSC's authorization to recover costs for the AMI program and remanded this matter to the MPSC. The MPSC had approved an approximately $11 million rate increase related to the AMI program in the October 2011 order. DTE Electric is currently operating its AMI program pursuant to the MPSC's approval set forth in the October 2011 order. In August 2013, the MPSC reopened the 2010 electric rate case for the limited purpose of addressing the MCOA's opinion on AMI. On November 6, 2014, the MPSC issued an order affirming the recovery of costs associated with the AMI program. | ||||||||
Customer360 Accounting Authority | ||||||||
In July 2014, DTE Electric filed an application for accounting authority to defer certain costs associated with implementing Customer360, which is an integrated software application that enables improved interface among customer service, billing, meter reading, credit and collections, device management, account management, and retail access. The estimated implementation cost of Customer360 is approximately $215 million and DTE Electric proposed an amortization period of 15 years. On September 26, 2014, the MPSC approved the accounting request. | ||||||||
Refundable Revenue Decoupling / Deferred Gain Amortization | ||||||||
In September 2012, the MPSC approved DTE Electric's accounting application to defer for future amortization the gain resulting from the reversal of the Company's $127 million regulatory liability associated with the operation of the RDM. The approved application provided for the amortization of the regulatory liability to income, at a monthly rate of approximately $10.6 million, beginning January 2014. On April 1, 2014, the MPSC approved DTE Electric's accounting application to suspend the amortization of the RDM regulatory liability as of June 30, 2014 and to complete the amortization over the period January 2015 to June 2015. If DTE Electric's base rates are increased prior to July 1, 2015, the Company will cease amortization and refund to customers the remaining unamortized balance of the regulatory liability. | ||||||||
Transition of PLD Customers to DTE Electric's Distribution System | ||||||||
On July 19, 2013, DTE Electric filed its TRM application proposing a transitional tariff option for certain former PLD customers and a modified line extension provision. The application also proposed a recovery mechanism for the deferred net incremental revenue requirement associated with the transition. The net incremental revenue requirement includes costs to install meters and attach customers; system and customer facility upgrades and repairs; and the difference between DTE Electric's tariff rates and any transitional rates approved in the future. On May 13, 2014, the MPSC approved the TRM as requested and also ordered DTE Electric to include in the TRM the PLD transmission delivery service costs incurred while DTE Electric is temporarily relying upon PLD to operate and maintain PLD's system during the system conversion period. The meter installation phase of the transition was completed in June 2014. On July 1, 2014, former PLD customers became customers of DTE Electric. | ||||||||
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, nitrogen oxide and sulfur dioxide emission allowances costs, urea costs, transmission costs and MISO costs. The MPSC reviews these costs, policies and practices for prudence in annual plan and reconciliation filings. | ||||||||
2012 PSCR Year — In March 2013, DTE Electric filed the 2012 PSCR reconciliation calculating a net under-recovery of approximately $87 million that includes an under-recovery of approximately $148 million for the 2011 PSCR year. The reconciliation includes purchased power costs related to the manual shutdown of our Fermi 2 nuclear power plant in June 2012 caused by the failure of one of the plant's two non-safety related feed-water pumps. The plant was restarted on July 30, 2012, which restored production to approximately 68% of full capacity. In September 2013, the repair to the plant was completed and production was returned to full capacity. DTE Electric was able to purchase sufficient power from MISO to continue to provide uninterrupted service to our customers. Certain intervenors in the reconciliation case have challenged the recovery of up to $32 million of the Fermi 2 related purchased power costs. Resolution of this matter is expected in 2015. |
Income_Taxes_Notes
Income Taxes (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income Tax Summary | ||||||||||||
We are part of the consolidated federal income tax return of DTE Energy. The federal income tax expense for DTE Electric is determined on an individual company basis with no allocation of tax expenses or benefits from other affiliates of DTE Energy. We had an income tax receivable from DTE Energy of $29 million and $23 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Total income tax expense varied from the statutory federal income tax rate for the following reasons: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Income before income taxes | $ | 830 | $ | 741 | $ | 768 | ||||||
Income tax expense at 35% statutory rate | $ | 291 | $ | 260 | $ | 269 | ||||||
Production tax credits | (22 | ) | (15 | ) | (5 | ) | ||||||
Investment tax credits | (5 | ) | (5 | ) | (6 | ) | ||||||
Depreciation | 3 | 3 | 3 | |||||||||
AFUDC - Equity | (7 | ) | (5 | ) | (4 | ) | ||||||
Employee Stock Ownership Plan dividends | (3 | ) | (2 | ) | (3 | ) | ||||||
Domestic production activities deduction | (2 | ) | (18 | ) | (16 | ) | ||||||
State and other income taxes, net of federal benefit | 43 | 41 | 40 | |||||||||
Other, net | — | (5 | ) | 4 | ||||||||
Income tax expense | $ | 298 | $ | 254 | $ | 282 | ||||||
Effective income tax rate | 35.9 | % | 34.3 | % | 36.7 | % | ||||||
Components of income tax expense were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current income tax expense (benefit) | ||||||||||||
Federal | $ | (19 | ) | $ | 123 | $ | 267 | |||||
State and other income tax | 20 | 23 | 67 | |||||||||
Total current income taxes | 1 | 146 | 334 | |||||||||
Deferred income tax expense (benefit) | ||||||||||||
Federal | 251 | 68 | (47 | ) | ||||||||
State and other income tax | 46 | 40 | (5 | ) | ||||||||
Total deferred income taxes | 297 | 108 | (52 | ) | ||||||||
Total | $ | 298 | $ | 254 | $ | 282 | ||||||
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts in the financial statements. Deferred tax assets and liabilities are classified as current or noncurrent according to the classification of the related assets or liabilities. Deferred tax assets and liabilities not related to assets or liabilities are classified according to the expected reversal date of the temporary differences. Consistent with rate making treatment, deferred taxes are offset in the table below for temporary differences which have related regulatory assets and liabilities. | ||||||||||||
Deferred tax assets (liabilities) were comprised of the following at December 31: | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Property, plant and equipment | $ | (3,152 | ) | $ | (2,807 | ) | ||||||
Securitized regulatory assets | (3 | ) | (130 | ) | ||||||||
Pension and benefits | (43 | ) | 27 | |||||||||
Other | 12 | 12 | ||||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
Current deferred income tax assets (liabilities) | $ | 2 | $ | (91 | ) | |||||||
Long-term deferred income tax liabilities | (3,188 | ) | (2,807 | ) | ||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
Deferred income tax assets | $ | 357 | $ | 420 | ||||||||
Deferred income tax liabilities | (3,543 | ) | (3,318 | ) | ||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
The above table excludes unamortized investment tax credits that are shown separately on the Consolidated Statements of Financial Position. Investment tax credits are deferred and amortized to income over the average life of the related property. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1 | $ | 4 | $ | 4 | $ | 59 | ||||||
Reductions for tax positions of prior years | — | — | (3 | ) | ||||||||
Settlements | — | — | (52 | ) | ||||||||
Balance at December 31 | $ | 4 | $ | 4 | $ | 4 | ||||||
The Company had $2 million of unrecognized tax benefits at December 31, 2014 and 2013 that, if recognized, would favorably impact our effective tax rate. The Company does not anticipate any material decrease in unrecognized tax benefits in the next twelve months. | ||||||||||||
The Company recognizes interest and penalties pertaining to income taxes in Interest expense and Other expenses, respectively, on its Consolidated Statements of Operations. Accrued interest pertaining to income taxes totaled $1 million at December 31, 2014 and 2013, respectively. The Company had no accrued penalties pertaining to income taxes. The Company recognized a nominal amount of interest expense (income) related to income taxes in 2014 and 2013 and $(3) million in 2012. | ||||||||||||
In 2014, DTE Energy and its subsidiaries settled a federal tax audit for the 2012 tax year. DTE Energy's federal income tax returns for years 2013 and subsequent years remain subject to examination by the IRS. DTE Energy's MBT and MCIT returns for the year 2008 and subsequent years remain subject to examination by the State of Michigan. DTE Energy also files tax returns in numerous state and local jurisdictions with varying statutes of limitation. |
Fair_Value_Notes
Fair Value (Notes) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value | 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 Company makes certain assumptions it believes 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 Company and its counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31, 2014 and 2013. The Company believes it uses 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 Company classifies 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 Company has 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. | ||||||||||||||||||||||||||||||||
The following table presents assets measured and recorded at fair value on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Net Balance | Level 1 | Level 2 | Level 3 | Net Balance | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents (a) | $ | 5 | $ | 99 | $ | — | $ | 104 | $ | 2 | $ | 114 | $ | — | $ | 116 | ||||||||||||||||
Nuclear decommissioning trusts | 792 | 449 | — | 1,241 | 779 | 412 | — | 1,191 | ||||||||||||||||||||||||
Other investments (b) | 97 | 50 | — | 147 | 91 | 44 | — | 135 | ||||||||||||||||||||||||
Derivative assets — FTRs | — | — | 3 | 3 | — | — | 3 | 3 | ||||||||||||||||||||||||
Total | $ | 894 | $ | 598 | $ | 3 | $ | 1,495 | $ | 872 | $ | 570 | $ | 3 | $ | 1,445 | ||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Current | $ | 5 | $ | 99 | $ | 3 | $ | 107 | $ | 2 | $ | 114 | $ | 3 | $ | 119 | ||||||||||||||||
Noncurrent | 889 | 499 | — | 1,388 | 870 | 456 | — | 1,326 | ||||||||||||||||||||||||
Total Assets | $ | 894 | $ | 598 | $ | 3 | $ | 1,495 | $ | 872 | $ | 570 | $ | 3 | $ | 1,445 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | At December 31, 2014, available-for-sale securities of $104 million, included $96 million and $8 million of cash equivalents included in Restricted cash and Other investments, respectively, on the Consolidated Statements of Financial Position. At December 31, 2013, available-for-sale securities of $116 million, included $100 million and $16 million of cash equivalents included in Restricted cash and Other investments, respectively, on the Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||
(b) | Available-for-sale equity securities at December 31, 2014 and 2013 of $8 million and $7 million, respectively, are included in Other investments on the Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||
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. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The institutional mutual funds hold exchange-traded equity or debt securities and are valued based on stated NAVs. Non-exchange-traded fixed income securities are valued based upon quotations available from brokers or pricing services. 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 Company has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Company selectively corroborates the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by the Company's Trust Investments Department which reports to the Company's Vice President and Treasurer. | ||||||||||||||||||||||||||||||||
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 Company considers 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 Company monitors 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 Company has obtained an understanding of how these prices are derived. Additionally, the Company selectively corroborates the fair value of its 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 Company has 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 our forward price curves has been assigned to our Risk Management Department, which is separate and distinct from the trading functions within the Company. | ||||||||||||||||||||||||||||||||
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Net Assets as of beginning of period | $ | 3 | 1 | |||||||||||||||||||||||||||||
Change in fair value recorded in regulatory assets/liabilities | 8 | 5 | ||||||||||||||||||||||||||||||
Purchases, issuances and settlements: | ||||||||||||||||||||||||||||||||
Settlements | (8 | ) | (3 | ) | ||||||||||||||||||||||||||||
Net Assets as of December 31, | $ | 3 | $ | 3 | ||||||||||||||||||||||||||||
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to regulatory assets and liabilities held at December 31, 2014 and 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||||
No transfers between Levels 1, 2 or 3 occurred in the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
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 Company has obtained an understanding of how the fair values are derived. The Company also selectively corroborates the fair value of its 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, are 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 are determined by the Company's Treasury Department which reports to the Company's Vice President and Treasurer. | ||||||||||||||||||||||||||||||||
The following table presents the carrying amount and fair value of financial instruments as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
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 | $ | 12 | $ | — | $ | — | $ | 12 | $ | 10 | $ | — | $ | — | $ | 10 | ||||||||||||||||
Notes receivable — affiliates | $ | 8 | $ | — | $ | — | $ | 8 | $ | 200 | $ | — | $ | — | $ | 200 | ||||||||||||||||
Short-term borrowings — affiliates | $ | 84 | $ | — | $ | — | $ | 84 | $ | 58 | $ | — | $ | — | $ | 58 | ||||||||||||||||
Short-term borrowings — other | $ | 50 | $ | — | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Long-term debt, excluding capital leases | $ | 5,259 | $ | — | $ | 5,341 | $ | 496 | $ | 5,146 | $ | — | $ | 5,253 | $ | 136 | ||||||||||||||||
Nuclear Decommissioning Trust Funds | ||||||||||||||||||||||||||||||||
DTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of their operating licenses. This obligation is reflected as an asset retirement obligation on the 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. DTE Electric is continuing to fund FERC jurisdictional amounts for decommissioning even though explicit provisions are not included in FERC rates. See Note 6 to the Consolidated Financial Statements, "Asset Retirement Obligations". | ||||||||||||||||||||||||||||||||
The following table summarizes the fair value of the nuclear decommissioning trust fund assets: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Fermi 2 | $ | 1,221 | $ | 1,172 | ||||||||||||||||||||||||||||
Fermi 1 | 3 | 3 | ||||||||||||||||||||||||||||||
Low-level radioactive waste | 17 | 16 | ||||||||||||||||||||||||||||||
Total | $ | 1,241 | $ | 1,191 | ||||||||||||||||||||||||||||
The costs of securities sold are determined on the basis of specific identification. The following table sets forth the gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Realized gains | $ | 54 | $ | 83 | $ | 37 | ||||||||||||||||||||||||||
Realized losses | $ | (33 | ) | $ | (41 | ) | $ | (31 | ) | |||||||||||||||||||||||
Proceeds from sales of securities | $ | 1,146 | $ | 1,118 | $ | 759 | ||||||||||||||||||||||||||
Realized gains and losses from the sale of securities for the Fermi 2 and the low level radioactive waste funds are recorded to the Regulatory asset and Nuclear decommissioning liability. The following table sets forth the fair value and unrealized gains for the nuclear decommissioning trust funds: | ||||||||||||||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Fair | Unrealized | Unrealized | Fair | Unrealized | Unrealized | |||||||||||||||||||||||||||
Value | Gains | Losses | Value | Gains | Losses | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Equity securities | $ | 756 | $ | 204 | $ | (39 | ) | $ | 730 | $ | 201 | $ | (25 | ) | ||||||||||||||||||
Debt securities | 474 | 21 | (2 | ) | 442 | 12 | (6 | ) | ||||||||||||||||||||||||
Cash and cash equivalents | 11 | — | — | 19 | — | — | ||||||||||||||||||||||||||
$ | 1,241 | $ | 225 | $ | (41 | ) | $ | 1,191 | $ | 213 | $ | (31 | ) | |||||||||||||||||||
At December 31, 2014, investments in the nuclear decommissioning trust funds consisted of approximately 61% in publicly traded equity securities, 38% in fixed debt instruments and 1% in cash equivalents. At December 31, 2013, investments in the nuclear decommissioning trust funds consisted of approximately 61% in publicly traded equity securities, 37% in fixed debt instruments and 2% in cash equivalents. | ||||||||||||||||||||||||||||||||
The debt securities at December 31, 2014 and 2013 had an average maturity of approximately 7 years. Securities held in the nuclear decommissioning trust funds are classified as available-for-sale. As DTE Electric does 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. | ||||||||||||||||||||||||||||||||
Unrealized losses incurred by the Fermi 2 trust are recognized as a Regulatory asset. | ||||||||||||||||||||||||||||||||
Other Securities | ||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, these securities are comprised primarily of money-market and equity securities. During the years ended December 31, 2014 and 2013, no amounts of unrealized losses on available-for-sale securities were reclassified out of other comprehensive income and realized into net income for the periods. Gains related to trading securities held at December 31, 2014, 2013, and 2012 were $12 million, $19 million and $9 million, respectively. |
Financial_and_Other_Derivative
Financial and Other Derivative Instruments (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Financial and Other Derivative Instruments | FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS | |||||||
The Company recognizes all derivatives at their fair value as Derivative assets or liabilities on the 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 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. | ||||||||
The Company's primary market risk exposure is associated with commodity prices, credit and interest rates. The Company has risk management policies to monitor and manage market risks. The Company uses derivative instruments to manage some of the exposure. 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 sales exemption 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. | ||||||||
The following table presents the fair value of derivative instruments as of December 31, 2014 and 2013: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
FTRs — Other current assets | $ | 3 | $ | 3 | ||||
Total derivatives not designated as hedging instrument | $ | 3 | $ | 3 | ||||
LongTerm_Debt_Notes
Long-Term Debt (Notes) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||
Long-term Debt | LONG-TERM DEBT | |||||||||||||||||||||||||||
The Company's long-term debt outstanding and weighted average interest rates (a) of debt outstanding at December 31 were: | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Taxable Debt, Principally Secured | ||||||||||||||||||||||||||||
4.5% due 2016 to 2044 | $ | 4,824 | $ | 4,286 | ||||||||||||||||||||||||
Tax- Exempt Revenue Bonds (b) | ||||||||||||||||||||||||||||
5.2% due 2020 to 2030 | 330 | 558 | ||||||||||||||||||||||||||
5,154 | 4,844 | |||||||||||||||||||||||||||
Less amount due within one year | (10 | ) | (304 | ) | ||||||||||||||||||||||||
$ | 5,144 | $ | 4,540 | |||||||||||||||||||||||||
Securitization Bonds | ||||||||||||||||||||||||||||
6.6% due 2015 | $ | 105 | $ | 302 | ||||||||||||||||||||||||
Less amount due within one year | (105 | ) | (197 | ) | ||||||||||||||||||||||||
$ | — | $ | 105 | |||||||||||||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
(a) | Weighted average interest rates as of December 31, 2014 are shown below the description of each category of debt. | |||||||||||||||||||||||||||
(b) | Tax-Exempt Revenue Bonds are issued by a public body that loans the proceeds to DTE Electric on terms substantially mirroring the Revenue Bonds. | |||||||||||||||||||||||||||
Debt Issuances | ||||||||||||||||||||||||||||
In 2014, the following debt was issued: | ||||||||||||||||||||||||||||
Month | Type | Interest Rate | Maturity | Amount | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
June | Mortgage Bonds (a) | 3.77 | % | 2026 | $ | 100 | ||||||||||||||||||||||
June | Mortgage Bonds (a) | 4.6 | % | 2044 | 150 | |||||||||||||||||||||||
July | Mortgage Bonds (a) | 3.375 | % | 2025 | 350 | |||||||||||||||||||||||
July | Mortgage Bonds (a) | 4.3 | % | 2044 | 350 | |||||||||||||||||||||||
$ | 950 | |||||||||||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | Proceeds were used for the redemption of long-term debt, repayment of short-term borrowings and general corporate purposes. | |||||||||||||||||||||||||||
Debt Redemptions | ||||||||||||||||||||||||||||
In 2014, the following debt was redeemed: | ||||||||||||||||||||||||||||
Month | Type | Interest Rate | Maturity | Amount | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
March | Mortgage Bonds | Various | 2014 | $ | 13 | |||||||||||||||||||||||
March | Securitization Bonds | 6.62 | % | 2014 | 100 | |||||||||||||||||||||||
April | Tax Exempt Revenue Bonds (a) | 2.35 | % | 2024 | 31 | |||||||||||||||||||||||
April | Tax Exempt Revenue Bonds (a) | 4.65 | % | 2028 | 32 | |||||||||||||||||||||||
June | Tax Exempt Revenue Bonds (a) | 4.875 | % | 2029 | 36 | |||||||||||||||||||||||
June | Tax Exempt Revenue Bonds (a) | 6 | % | 2036 | 69 | |||||||||||||||||||||||
July | Senior Notes | 4.8 | % | 2015 | 200 | |||||||||||||||||||||||
August | Tax Exempt Revenue Bonds (a) | 5.25 | % | 2029 | 60 | |||||||||||||||||||||||
August | Senior Notes | 5.4 | % | 2014 | 200 | |||||||||||||||||||||||
September | Securitization Bonds | 6.62 | % | 2014 | 96 | |||||||||||||||||||||||
$ | 837 | |||||||||||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | Tax Exempt Revenue Bonds are issued by a public body that loans the proceeds to DTE Electric on terms substantially mirroring the Revenue Bonds. | |||||||||||||||||||||||||||
The following table shows the scheduled debt maturities, excluding any unamortized discount or premium on debt: | ||||||||||||||||||||||||||||
2020 and | ||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Amount to mature | $ | 115 | $ | 151 | $ | — | $ | 300 | $ | — | $ | 4,704 | $ | 5,270 | ||||||||||||||
Cross Default Provisions | ||||||||||||||||||||||||||||
Substantially all of the net properties of DTE Electric are subject to the lien of its mortgage. Should DTE Electric fail to timely pay its indebtedness under this mortgage, such failure may create cross defaults in the indebtedness of DTE Energy. |
Preferred_and_Preference_Secur
Preferred and Preference Securities (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred and Preference Securities | PREFERRED AND PREFERENCE SECURITIES |
At December 31, 2014, DTE Electric had approximately 6.75 million shares of preferred stock with a par value of $100 per share and 30 million shares of preference stock with a par value of $1 per share authorized, with no shares issued. |
ShortTerm_Credit_Arrangements_
Short-Term Credit Arrangements and Borrowings (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Short-term Debt [Abstract] | |
Short-Term Credit Arrangements and Borrowings | SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS |
DTE Electric has a $300 million unsecured revolving credit agreement that can be used for general corporate borrowings, but is intended to provide liquidity support for the Company's commercial paper program. Borrowings under the facility are available at prevailing short-term interest rates. The facility will expire in April 2018. At December 31, 2014, there was $50 million outstanding against the facility, while there were no amounts outstanding against the facility at December 31, 2013. | |
The agreement requires the Company to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. At December 31, 2014, the total funded debt to total capitalization ratio for DTE Electric was 0.51 to 1 and is in compliance with this financial covenant. | |
The weighted average interest rates for short-term borrowings was 0.5% and zero at December 31, 2014 and 2013, respectively. |
Operating_Leases_Notes
Operating Leases (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Operating Leases | OPERATING LEASES | |||
Lessee — The Company leases various assets under operating leases, including coal railcars, computers, vehicles and other equipment. The lease arrangements expire at various dates through 2046. | ||||
Future minimum lease payments under non-cancelable leases at December 31, 2014 were: | ||||
Operating | ||||
Leases | ||||
(In millions) | ||||
2015 | $ | 28 | ||
2016 | 22 | |||
2017 | 18 | |||
2018 | 15 | |||
2019 | 10 | |||
Thereafter | 40 | |||
Total minimum lease payments | $ | 133 | ||
Rental expense for operating leases was $26 million in 2014, $28 million in 2013, and $29 million in 2012. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||
Environmental | ||||
Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of sulfur dioxide and nitrogen oxides. The EPA and the State of Michigan have 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 nitrogen oxide, sulfur dioxide, mercury and other emissions. To comply with these requirements, DTE Electric spent approximately $2.2 billion through 2014. The Company estimates DTE Electric will make capital expenditures of approximately $100 million in 2015 and up to approximately $30 million of additional capital expenditures through 2019 based on current regulations. | ||||
Additional rulemakings are expected over the next few years which could require additional controls for sulfur dioxide, nitrogen oxides and other hazardous air pollutants. The Cross State Air Pollution Rule (CSAPR), requires further reductions of sulfur dioxide and nitrogen oxides emissions effective in January 2015. DTE Electric expects to meet its obligations under CSAPR beginning in 2015. | ||||
The Mercury and Air Toxics Standard (MATS) rule, formerly known as the Electric Generating Unit Maximum Achievable Control Technology (EGU MACT) Rule was finalized in December 2011. The MATS rule requires reductions of mercury and other hazardous air pollutants beginning in April 2015, with a potential extension to April 2016. DTE Electric has requested and been granted compliance date extensions for all relevant units to April 2016. DTE Electric has tested technologies to determine technological and economic feasibility as MATS compliance alternatives to Flue Gas Desulfurization (FGD) systems. Implementation of Dry Sorbent Injection (DSI) and Activated Carbon Injection (ACI) technologies will allow several units that would not have been economical for FGD installations to continue operation in compliance with MATS. In November 2014, the Supreme Court agreed to review a challenge to the MATS rule based on a narrowly focused question of how the EPA considered costs in regulating air pollutants emitted by electric utilities. DTE Electric cannot predict the financial impact or outcome of this Supreme Court case, or the timing of its resolution. | ||||
The EPA proposed revised air quality standards for ground level ozone in November 2014 and the standards are expected to be finalized by October 2015. DTE Electric will engage with the EPA and other stakeholders in commenting on this rule. DTE Electric cannot predict the financial impact of the proposed ozone standards at this time. | ||||
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, but not relating to the July 2009 NOV/FOV. Among other relief, the EPA requested the court to require DTE Electric to install and operate the best available control technology at Unit 2 of the Monroe Power Plant. Further, the EPA requested the court to issue a preliminary injunction to require DTE Electric to (i) begin the process of obtaining the necessary permits for the Monroe Unit 2 modification and (ii) offset the pollution from Monroe Unit 2 through emissions reductions from DTE Electric's fleet of coal-fired power plants until the new control equipment is operating. On August 23, 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 caused to be filed a Notice of Appeal to the U.S. 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 caused to be 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 addition, the Sierra Club caused to be filed a motion to add a claim regarding the River Rouge Power Plant. In March 2014, the U.S. District Court judge granted again 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, Trenton Channel Unit 9 and denied the claims related to River Rouge that were brought by the Sierra Club. In June 2014, the EPA filed a motion requesting certification for appeal of the March 2014 summary judgment decision. In October 2014, the EPA and the U.S. Department of Justice filed the anticipated notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. This will officially start the appellate process. The amended New Source Review claims are all stayed until the appeal is resolved by the U.S. Court of Appeals for the Sixth Circuit. | ||||
DTE Energy and Electric believes 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 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 Company cannot predict the financial impact or outcome of this matter, or the timing of its resolution. | ||||
In 2010, the EPA finalized a new 1-hour sulfur dioxide ambient air quality standard that requires states to submit plans for non-attainment areas to be in compliance by 2017. Michigan's non-attainment area includes DTE Electric facilities in southwest Detroit and areas of Wayne County. Preliminary modeling runs by the MDEQ suggest that emission reductions may be required by significant sources of sulfur dioxide emissions in these areas, including DTE Electric power plants. The state implementation plan process is in the information gathering stage, and DTE Electric is unable to estimate any required emissions reductions at this time. | ||||
Water — In response to an EPA regulation, DTE Electric would be 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 was issued in May 2014. The final rule specifies a time period exceeding three years to complete studies to determine the type of technology needed to reduce impacts to fish. Final compliance for the installation of the required technology will be determined by each state on a case by case basis. We are currently evaluating the compliance options and working with the State of Michigan on evaluating 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 rulemaking at this time. | ||||
In April 2013, the EPA proposed revised steam electric effluent guidelines regulating wastewater streams from coal-fired power plants including multiple possible options for compliance. The rules are expected to be finalized by September 2015. It is not possible at this time to quantify the impacts of these developing requirements. | ||||
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. The investigations have revealed contamination related to the by-products of gas manufacturing at each MGP site. In addition to the MGP sites, the Company 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 aboveground 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 December 31, 2014 and 2013, the Company had $10 million and $8 million accrued for remediation, respectively. 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 the Company’s financial position and cash flows. The Company believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each site. | ||||
In December 2014, the EPA released a pre-publication version of a rule to regulate coal ash. This rule is based on the continued listing of ash as a non-hazardous waste, and relies on various self-implementation design and performance standards. The rule is still being evaluated and it is not possible to quantify its impact at this time. DTE Electric owns and operates three permitted engineered ash storage facilities to dispose of fly ash from coal fired power plants and operates a number of smaller impoundments at its power plants. | ||||
Nuclear Operations | ||||
Property Insurance | ||||
DTE Electric maintains property insurance policies specifically for the Fermi 2 plant. These policies cover such items as replacement power and property damage. The NEIL is the primary supplier of the insurance policies. | ||||
DTE Electric maintains a policy for extra expenses, including replacement power costs necessitated by Fermi 2's unavailability due to an insured event. This policy has a 12-week waiting period and provides an aggregate $490 million of coverage over a three-year period. | ||||
DTE Electric has $1.5 billion in primary coverage and $1.25 billion of excess coverage for stabilization, decontamination, debris removal, repair and/or replacement of property and decommissioning. The combined coverage limit for total property damage is $2.75 billion, subject to a $1 million deductible. The total limit for property damage for non-nuclear events is $2 billion and an aggregate of $328 million of coverage for extra expenses over a two-year period. | ||||
On January 13, 2015, the Terrorism Risk Insurance Program Reauthorization Act of 2015 was signed, extending TRIA through December 31, 2020. For multiple terrorism losses caused by acts of terrorism not covered under the TRIA occurring within one year after the first loss from terrorism, the NEIL policies would make available to all insured entities up to $3.2 billion, plus any amounts recovered from reinsurance, government indemnity, or other sources to cover losses. | ||||
Under NEIL policies, DTE Electric could be liable for maximum assessments of up to approximately $35 million per event if the loss associated with any one event at any nuclear plant should exceed the accumulated funds available to NEIL. | ||||
Public Liability Insurance | ||||
As required by federal law, DTE Electric maintains $375 million of public liability insurance for a nuclear incident. For liabilities arising from a terrorist act outside the scope of TRIA, the policy is subject to one industry aggregate limit of $300 million. Further, under the Price-Anderson Amendments Act of 2005, deferred premium charges up to $127 million could be levied against each licensed nuclear facility, but not more than $19 million per year per facility. Thus, deferred premium charges could be levied against all owners of licensed nuclear facilities in the event of a nuclear incident at any of these facilities. | ||||
Nuclear Fuel Disposal Costs | ||||
In accordance with the Federal Nuclear Waste Policy Act of 1982, DTE Electric has a contract with the DOE for the future storage and disposal of spent nuclear fuel from Fermi 2 that required DTE Electric to pay the DOE a fee of 1 mill per kWh of Fermi 2 electricity generated and sold. The fee was a component of nuclear fuel expense. The DOE's Yucca Mountain Nuclear Waste Repository program for the acceptance and disposal of spent nuclear fuel was terminated in 2011. DTE Electric is a party in the litigation against the DOE for both past and future costs associated with the DOE's failure to accept spent nuclear fuel under the timetable set forth in the Federal Nuclear Waste Policy Act of 1982. In July 2012, DTE Electric executed a settlement agreement with the federal government for costs associated with the DOE's delay in acceptance of spent nuclear fuel from Fermi 2 for permanent storage. The settlement agreement, including extensions, provides for a claims process and payment of delay-related costs experienced by DTE Electric through 2016. DTE Electric's claims are being settled and paid on a timely basis. The settlement proceeds reduce the cost of the dry cask storage facility assets and provide reimbursement for related operating expenses. The 1 mill per kWh fee was reduced to zero effective May 16, 2014. | ||||
DTE Electric currently employs a spent nuclear fuel storage strategy utilizing a fuel pool and a newly completed dry cask storage facility. The initial dry cask loading campaign planned for 2014 has been completed. The dry cask storage facility is expected to provide sufficient spent fuel storage capability for the life of the plant as defined by the original operating license. | ||||
The federal government continues to maintain its legal obligation to accept spent nuclear fuel from Fermi 2 for permanent storage. Issues relating to long-term waste disposal policy and to the disposition of funds contributed by DTE Electric ratepayers to the federal waste fund await future governmental action. | ||||
Guarantees | ||||
In certain limited circumstances, the Company enters into contractual guarantees. The Company may guarantee another entity’s obligation in the event it fails to perform. The Company may provide guarantees in certain indemnification agreements. Finally, the Company may provide indirect guarantees for the indebtedness of others. | ||||
Labor Contracts | ||||
There are several bargaining units for the Company's approximately 2,600 represented employees. The majority of the represented employees are under contracts that expire in 2016 and 2017. | ||||
Purchase Commitments | ||||
As of December 31, 2014, the Company was party to numerous long-term purchase commitments relating to a variety of goods and services required for the Company’s business. These agreements primarily consist of fuel supply commitments and renewable energy contracts. The Company estimates that these commitments will be approximately $2.4 billion from 2015 through 2033 as detailed in the following table: | ||||
(In millions) | ||||
2015 | $ | 496 | ||
2016 | 330 | |||
2017 | 278 | |||
2018 | 125 | |||
2019 | 106 | |||
2020 and thereafter | 1,063 | |||
$ | 2,398 | |||
The Company also estimates that 2015 capital expenditures will be approximately $1.9 billion. The Company has made certain commitments in connection with expected capital expenditures. | ||||
Bankruptcies | ||||
The Company purchases and sells electricity from and to governmental entities and numerous companies operating in the steel, automotive, energy, retail and other industries. Certain of its customers have filed for bankruptcy protection under the U.S. Bankruptcy Code. The Company regularly reviews contingent matters relating to these customers and its purchase and sale contracts and records provisions for amounts considered at risk of probable loss. The Company believes its accrued amounts are adequate for probable loss. | ||||
Other Contingencies | ||||
The Company is 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 Company cannot predict the final disposition of such proceedings. The Company regularly reviews legal matters and records provisions for claims that it can estimate and are considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Company’s operations or financial statements in the periods they are resolved. | ||||
For a discussion of contingencies related to regulatory matters see Note 7 to the Consolidated Financial Statements, "Regulatory Matters". |
Retirement_Benefits_and_Truste
Retirement Benefits and Trusteed Assets (Notes) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Retirement Benefits and Trusteed Assets | RETIREMENT BENEFITS AND TRUSTEED ASSETS | |||||||||||||||||||||||||||||||
Pension Plan Benefits | ||||||||||||||||||||||||||||||||
DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans are sponsored by DTE Energy Corporate Services, LLC (LLC), a subsidiary of DTE Energy. DTE Electric is allocated net periodic benefit costs for its share of the amounts of the combined plans. | ||||||||||||||||||||||||||||||||
Effective January 1, 2012 for non-represented employees and in March 2013 for the majority of represented employees, the Company discontinued offering a defined benefit retirement plan to newly hired employees. In its place, the Company will annually contribute an amount equivalent to 4% of an employee's eligible pay to the employee's defined contribution retirement savings plan. | ||||||||||||||||||||||||||||||||
The Company’s policy is to fund pension costs by contributing amounts consistent with the provisions of the Pension Protection Act of 2006 and additional amounts when it deems appropriate. The Company contributed $145 million to its qualified pension plans in 2014. At the discretion of management, and depending upon financial market conditions, the Company anticipates making up to $145 million in contributions to the pension plans in 2015. | ||||||||||||||||||||||||||||||||
Net pension cost includes the following components: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 64 | $ | 73 | $ | 64 | ||||||||||||||||||||||||||
Interest cost | 162 | 146 | 155 | |||||||||||||||||||||||||||||
Expected return on plan assets | (194 | ) | (184 | ) | (166 | ) | ||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Net loss | 110 | 148 | 124 | |||||||||||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | |||||||||||||||||||||||||||||
Settlements | — | — | 2 | |||||||||||||||||||||||||||||
Net pension cost | $ | 144 | $ | 184 | $ | 180 | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income | ||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 614 | $ | (418 | ) | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (110 | ) | (148 | ) | ||||||||||||||||||||||||||||
Prior service cost | (2 | ) | — | |||||||||||||||||||||||||||||
Amortization of prior service cost | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||
Total recognized in Regulatory assets and Other comprehensive income | $ | 500 | $ | (567 | ) | |||||||||||||||||||||||||||
Total recognized in net periodic pension cost, Regulatory assets and Other comprehensive income | $ | 644 | $ | (383 | ) | |||||||||||||||||||||||||||
Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 149 | $ | 106 | ||||||||||||||||||||||||||||
Prior service cost | $ | 1 | $ | 1 | ||||||||||||||||||||||||||||
The following table reconciles the obligations, assets and funded status of the plan as well as the amount recognized as prepaid pension cost or pension liability in the Consolidated Statements of Financial Position at December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 3,712 | $ | 3,111 | ||||||||||||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 3,341 | $ | 3,585 | ||||||||||||||||||||||||||||
Service cost | 64 | 73 | ||||||||||||||||||||||||||||||
Interest cost | 162 | 146 | ||||||||||||||||||||||||||||||
Plan amendments | (2 | ) | — | |||||||||||||||||||||||||||||
Actuarial (gain) loss | 634 | (286 | ) | |||||||||||||||||||||||||||||
Benefits paid | (181 | ) | (177 | ) | ||||||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 4,018 | $ | 3,341 | ||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 2,632 | $ | 2,211 | ||||||||||||||||||||||||||||
Actual return on plan assets | 212 | 316 | ||||||||||||||||||||||||||||||
Company contributions | 149 | 282 | ||||||||||||||||||||||||||||||
Benefits paid | (181 | ) | (177 | ) | ||||||||||||||||||||||||||||
Plan assets at fair value, end of year | $ | 2,812 | $ | 2,632 | ||||||||||||||||||||||||||||
Funded status of the plan | $ | (1,206 | ) | $ | (709 | ) | ||||||||||||||||||||||||||
Amount recorded as: | ||||||||||||||||||||||||||||||||
Current liabilities | $ | (6 | ) | $ | (4 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (1,200 | ) | (705 | ) | ||||||||||||||||||||||||||||
$ | (1,206 | ) | $ | (709 | ) | |||||||||||||||||||||||||||
Amounts recognized in Regulatory assets (see Note 7 - "Regulatory Matters") | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,738 | $ | 1,248 | ||||||||||||||||||||||||||||
Prior service cost | 5 | 9 | ||||||||||||||||||||||||||||||
$ | 1,743 | $ | 1,257 | |||||||||||||||||||||||||||||
At December 31, 2014, the benefits related to the Company’s qualified and nonqualified pension plans expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 210 | ||||||||||||||||||||||||||||||
2016 | 216 | |||||||||||||||||||||||||||||||
2017 | 223 | |||||||||||||||||||||||||||||||
2018 | 233 | |||||||||||||||||||||||||||||||
2019 | 239 | |||||||||||||||||||||||||||||||
2020 - 2024 | 1,264 | |||||||||||||||||||||||||||||||
Total | $ | 2,385 | ||||||||||||||||||||||||||||||
Assumptions used in determining the projected benefit obligation and net pension costs are listed below: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Projected benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.12% | 4.95% | 4.15% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.65% | 4.20% | 4.20% | |||||||||||||||||||||||||||||
Net pension costs | ||||||||||||||||||||||||||||||||
Discount rate | 4.95% | 4.15% | 5.00% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.20% | 4.20% | 4.20% | |||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.75% | 8.25% | 8.25% | |||||||||||||||||||||||||||||
The Company employs a formal process in determining the long-term rate of return for various asset classes. Management reviews historic financial market risks and returns and long-term historic relationships between the asset classes of equities, fixed income and other assets, consistent with the widely accepted capital market principle that asset classes with higher volatility generate a greater return over the long-term. Current market factors such as inflation, interest rates, asset class risks and asset class returns are evaluated and considered before long-term capital market assumptions are determined. The long-term portfolio return is also established employing a consistent formal process, with due consideration of diversification, active investment management and rebalancing. Peer data is reviewed to check for reasonableness. As a result of this process, the Company has long-term rate of return assumptions for its pension plans of 7.75% and other postretirement benefit plans of 8.00%, for 2015. The Company believes these rates are a reasonable assumption for the long-term rate of return on its plan assets for 2015 given its investment strategy. | ||||||||||||||||||||||||||||||||
The Company employs a total return investment approach whereby a mix of equities, fixed income and other investments are used to maximize the long-term return on plan assets consistent with prudent levels of risk, with consideration given to the liquidity needs of the plan. Risk tolerance is established through consideration of future plan cash flows, plan funded status and corporate financial considerations. The investment portfolio contains a diversified blend of equity, fixed income and other investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, growth and value stocks and large and small market capitalizations. Fixed income securities generally include market and long duration bonds of companies from diversified industries, mortgage-backed securities, non-US securities, bank loans and U.S. Treasuries. Other assets such as private markets and hedge funds are used to enhance long-term returns while improving portfolio diversification. Derivatives may be utilized in a risk controlled manner, to potentially increase the portfolio beyond the market value of invested assets and/or reduce portfolio investment risk. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. | ||||||||||||||||||||||||||||||||
Target allocations for pension plan assets as of December 31, 2014 are listed below: | ||||||||||||||||||||||||||||||||
U.S. Large Cap Equity Securities | 22 | % | ||||||||||||||||||||||||||||||
U.S. Small Cap and Mid Cap Equity Securities | 5 | |||||||||||||||||||||||||||||||
Non U.S. Equity Securities | 20 | |||||||||||||||||||||||||||||||
Fixed Income Securities | 25 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | 20 | |||||||||||||||||||||||||||||||
Private Equity and Other | 8 | |||||||||||||||||||||||||||||||
100 | % | |||||||||||||||||||||||||||||||
Fair Value Measurements for pension plan assets at December 31, 2014 and 2013 (a): | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Asset category: | ||||||||||||||||||||||||||||||||
Short-term investments (b) | $ | 33 | $ | — | $ | — | $ | 33 | $ | 15 | $ | — | $ | — | $ | 15 | ||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. large cap (c) | 638 | — | — | 638 | 639 | — | — | 639 | ||||||||||||||||||||||||
U.S. small/mid cap (d) | 162 | — | — | 162 | 160 | — | — | 160 | ||||||||||||||||||||||||
Non U.S. (e) | 378 | 157 | — | 535 | 440 | 94 | — | 534 | ||||||||||||||||||||||||
Fixed income securities (f) | 5 | 758 | — | 763 | 11 | 623 | — | 634 | ||||||||||||||||||||||||
Hedge funds and similar investments (g) | 163 | 68 | 315 | 546 | 193 | 50 | 285 | 528 | ||||||||||||||||||||||||
Private equity and other (h) | — | — | 135 | 135 | — | — | 122 | 122 | ||||||||||||||||||||||||
Securities lending (i) | (136 | ) | (36 | ) | — | (172 | ) | — | — | — | — | |||||||||||||||||||||
Securities lending collateral (i) | 136 | 36 | — | 172 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,379 | $ | 983 | $ | 450 | $ | 2,812 | $ | 1,458 | $ | 767 | $ | 407 | $ | 2,632 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | For a description of levels within the fair value hierarchy see Note 9 to the Consolidated financial Statements, "Fair Value". | |||||||||||||||||||||||||||||||
(b) | This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services. | |||||||||||||||||||||||||||||||
(c) | This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(d) | This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(e) | This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(f) | This category includes corporate bonds from diversified industries, U.S. Treasuries, and mortgage-backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(g) | This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutual funds, commingled and limited partnership funds and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices in actively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuations for some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing. | |||||||||||||||||||||||||||||||
(h) | This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber and private mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in this category may be based on discounted cash flow analyses, relevant publicly-traded comparables and comparable transactions. | |||||||||||||||||||||||||||||||
(i) | In 2014, DTE Electric began a securities lending program with a third party agent. The program allows the agent to lend certain securities from the Company's pension trusts to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with its securities lending agency agreement. | |||||||||||||||||||||||||||||||
The pension trust holds debt and equity securities directly and indirectly through commingled funds and institutional mutual funds. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The commingled funds and institutional mutual funds hold exchange-traded equity or debt securities and are valued based on NAV. Non-exchange traded fixed income securities are valued by the trustee based upon quotations available from brokers or pricing services. 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 challenges an assigned price and determines that another price source is considered to be preferable. DTE Electric has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, DTE Electric selectively corroborates the fair values of securities by comparison of market-based price sources. | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3): | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Hedge Funds | Private | Hedge Funds | Private | |||||||||||||||||||||||||||||
and Similar | Equity | and Similar | Equity | |||||||||||||||||||||||||||||
Investments | and Other | Total | Investments | and Other | Total | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning Balance at January 1 | $ | 285 | $ | 122 | $ | 407 | $ | 238 | $ | 125 | 363 | |||||||||||||||||||||
Total realized/unrealized gains (losses) | 15 | 12 | 27 | 29 | 2 | 31 | ||||||||||||||||||||||||||
Purchases, sales and settlements: | ||||||||||||||||||||||||||||||||
Purchases | 16 | 22 | 38 | 18 | 15 | 33 | ||||||||||||||||||||||||||
Sales | (1 | ) | (21 | ) | (22 | ) | — | (20 | ) | (20 | ) | |||||||||||||||||||||
Ending Balance at December 31 | $ | 315 | $ | 135 | $ | 450 | $ | 285 | $ | 122 | $ | 407 | ||||||||||||||||||||
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $ | 15 | $ | 8 | $ | 23 | $ | 27 | $ | 2 | $ | 29 | ||||||||||||||||||||
There were no transfers between Level 3 and Level 2 and there were no significant transfers between Level 2 and Level 1 in the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||||||||||||||||
The Company participates in defined benefit plans sponsored by the LLC that provide certain other postretirement health care and life insurance benefits for employees who are eligible for these benefits. The Company’s policy is to fund certain trusts to meet its other postretirement benefit obligations. Separate qualified VEBA and other benefit trusts exist. The Company made no contributions to these trusts for its defined benefit other postretirement medical and life insurance benefit plans during 2014. At the discretion of management, the Company anticipates making up to $175 million of contributions to the trusts in 2015. | ||||||||||||||||||||||||||||||||
Starting in 2012, in lieu of offering future employees defined benefit post-employment health care and life insurance benefits, the Company allocates a fixed amount per year to an account in a defined contribution VEBA for each employee. These accounts are managed either by the Company (for non-represented and certain represented groups), or by the Utility Workers of America (UWUA) for Local 223 employees. The contributions to the VEBA for these accounts were $2 million in 2014, $1 million in 2013, and less than $1 million in 2012. | ||||||||||||||||||||||||||||||||
Beginning in 2013, the Company replaced the defined benefit employer-sponsored retiree medical, prescription drug and dental coverage with a notional allocation to a Retiree Reimbursement Account. This change applies to both current and future Medicare eligible non-represented and future represented retirees, spouses, surviving spouses or same sex domestic partners when the youngest of the retiree's covered household turns age 65. The amount of the annual allocation to each participant is determined by the employee's retirement date: for employees who retired on or before January 1, 2013, the base allocation is $3,500, which increased to $3,570 in 2014 and for employees who retire after January 1, 2013, the base allocation is $3,250 which increased to $3,315 in 2014. The amount of the allocation will increase each year at the lower of the rate of medical inflation or 2%. | ||||||||||||||||||||||||||||||||
Net other postretirement cost includes the following components: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 26 | $ | 35 | $ | 51 | ||||||||||||||||||||||||||
Interest cost | 68 | 67 | 91 | |||||||||||||||||||||||||||||
Expected return on plan assets | (85 | ) | (74 | ) | (61 | ) | ||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Net loss | 14 | 47 | 58 | |||||||||||||||||||||||||||||
Prior service credit | (109 | ) | (100 | ) | (14 | ) | ||||||||||||||||||||||||||
Net other postretirement cost (credit) | $ | (86 | ) | $ | (25 | ) | $ | 125 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Other changes in plan assets and APBO recognized in Regulatory assets (liabilities) and Other comprehensive income | ||||||||||||||||||||||||||||||||
Net actuarial gain | $ | 144 | $ | (258 | ) | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (14 | ) | (47 | ) | ||||||||||||||||||||||||||||
Prior service credit | — | (159 | ) | |||||||||||||||||||||||||||||
Amortization of prior service credit | 109 | 100 | ||||||||||||||||||||||||||||||
Total recognized in Regulatory assets (liabilities) and Other comprehensive income | $ | 239 | $ | (364 | ) | |||||||||||||||||||||||||||
Total recognized in net periodic benefit cost, Regulatory assets (liabilities) and Other comprehensive income | $ | 153 | $ | (389 | ) | |||||||||||||||||||||||||||
Estimated amounts to be amortized from Regulatory assets (liabilities) and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 31 | $ | 15 | ||||||||||||||||||||||||||||
Prior service credit | $ | (94 | ) | $ | (109 | ) | ||||||||||||||||||||||||||
The following table reconciles the obligations, assets and funded status of the plans including amounts recorded as Accrued postretirement liability - affiliates in the Consolidated Statements of Financial Position at December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation, beginning of year | $ | 1,430 | $ | 1,752 | ||||||||||||||||||||||||||||
Service cost | 26 | 35 | ||||||||||||||||||||||||||||||
Interest cost | 68 | 67 | ||||||||||||||||||||||||||||||
Plan amendments | — | (159 | ) | |||||||||||||||||||||||||||||
Actuarial (gain) loss | 100 | (200 | ) | |||||||||||||||||||||||||||||
Medicare Part D subsidy | — | 1 | ||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (66 | ) | ||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation, end of year | $ | 1,558 | $ | 1,430 | ||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 1,061 | $ | 756 | ||||||||||||||||||||||||||||
Actual return on plan assets | 41 | 131 | ||||||||||||||||||||||||||||||
Company contributions | — | 239 | ||||||||||||||||||||||||||||||
Benefits paid | (64 | ) | (65 | ) | ||||||||||||||||||||||||||||
Plan assets at fair value, end of year | $ | 1,038 | $ | 1,061 | ||||||||||||||||||||||||||||
Funded status, end of year | $ | (520 | ) | $ | (369 | ) | ||||||||||||||||||||||||||
Amount recorded as: | ||||||||||||||||||||||||||||||||
Noncurrent liabilities | $ | (520 | ) | $ | (369 | ) | ||||||||||||||||||||||||||
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - "Regulatory Matters") | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 385 | $ | 255 | ||||||||||||||||||||||||||||
Prior service cost | (194 | ) | (303 | ) | ||||||||||||||||||||||||||||
$ | 191 | $ | (48 | ) | ||||||||||||||||||||||||||||
At December 31, 2014, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 77 | ||||||||||||||||||||||||||||||
2016 | 82 | |||||||||||||||||||||||||||||||
2017 | 85 | |||||||||||||||||||||||||||||||
2018 | 89 | |||||||||||||||||||||||||||||||
2019 | 93 | |||||||||||||||||||||||||||||||
2020 - 2024 | 505 | |||||||||||||||||||||||||||||||
Total | $ | 931 | ||||||||||||||||||||||||||||||
Assumptions used in determining the accumulated postretirement benefit obligation and net other postretirement benefit costs are listed below: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.10% | 4.95% | 4.15% | |||||||||||||||||||||||||||||
Health care trend rate pre- and post- 65 | 7.50 / 6.50% | 7.50 / 6.50% | 7.00% | |||||||||||||||||||||||||||||
Ultimate health care trend rate | 4.50% | 4.50% | 5.00% | |||||||||||||||||||||||||||||
Year in which ultimate reached pre- and post- 65 | 2025 / 2024 | 2025 / 2024 | 2021 | |||||||||||||||||||||||||||||
Other postretirement benefit costs | ||||||||||||||||||||||||||||||||
Discount rate (prior to interim remeasurement) | 4.95% | 4.15% | 5.00% | |||||||||||||||||||||||||||||
Discount rate (post interim remeasurement) | N/A | 4.30% | N/A | |||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8.00% | 8.25% | 8.25% | |||||||||||||||||||||||||||||
Health care trend rate pre- and post- 65 | 7.50 / 6.50% | 7.00% | 7.00% | |||||||||||||||||||||||||||||
Ultimate health care trend rate | 4.50% | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Year in which ultimate reached pre- and post- 65 | 2025 / 2024 | 2021 | 2020 | |||||||||||||||||||||||||||||
A one percentage-point increase in health care cost trend rates would have increased the total service cost and interest cost components of benefit costs by $5 million in 2014 and increased the accumulated benefit obligation by $89 million at December 31, 2014. A one percentage-point decrease in the health care cost trend rates would have decreased the total service and interest cost components of benefit costs by $4 million in 2014 and would have decreased the accumulated benefit obligation by $77 million at December 31, 2014. | ||||||||||||||||||||||||||||||||
The process used in determining the long-term rate of return for assets and the investment approach for the other postretirement benefits plans is similar to those previously described for its pension plans. | ||||||||||||||||||||||||||||||||
Target allocations for other postretirement benefit plan assets as of December 31, 2014 are listed below: | ||||||||||||||||||||||||||||||||
U.S. Large Cap Equity Securities | 17 | % | ||||||||||||||||||||||||||||||
U.S. Small Cap and Mid Cap Equity Securities | 4 | |||||||||||||||||||||||||||||||
Non U.S. Equity Securities | 20 | |||||||||||||||||||||||||||||||
Fixed Income Securities | 25 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | 20 | |||||||||||||||||||||||||||||||
Private Equity and Other | 14 | |||||||||||||||||||||||||||||||
100 | % | |||||||||||||||||||||||||||||||
Fair Value Measurements for other postretirement benefit plan assets at December 31, 2014 and 2013 (a): | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | (In millions) | |||||||||||||||||||||||||||||||
Short-term investments (b) | $ | 4 | $ | — | $ | — | $ | 4 | $ | 3 | $ | — | $ | — | $ | 3 | ||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. large cap (c) | 179 | — | — | 179 | 208 | — | — | 208 | ||||||||||||||||||||||||
U.S. small/mid cap (d) | 102 | — | — | 102 | 103 | — | — | 103 | ||||||||||||||||||||||||
Non U.S. (e) | 151 | 39 | — | 190 | 197 | 5 | — | 202 | ||||||||||||||||||||||||
Fixed income securities (f) | 11 | 243 | — | 254 | 12 | 243 | — | 255 | ||||||||||||||||||||||||
Hedge funds and similar investments (g) | 73 | 31 | 114 | 218 | 91 | 17 | 111 | 219 | ||||||||||||||||||||||||
Private equity and other (h) | — | — | 91 | 91 | — | — | 71 | 71 | ||||||||||||||||||||||||
Securities lending (i) | (98 | ) | (11 | ) | — | (109 | ) | — | — | — | — | |||||||||||||||||||||
Securities lending collateral (i) | 98 | 11 | — | 109 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 520 | $ | 313 | $ | 205 | $ | 1,038 | $ | 614 | $ | 265 | $ | 182 | $ | 1,061 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | For a description of levels within the fair value hierarchy see Note 9 to the Consolidated Financial Statements, "Fair Value". | |||||||||||||||||||||||||||||||
(b) | This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services. | |||||||||||||||||||||||||||||||
(c) | This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(d) | This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(e) | This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(f) | This category includes corporate bonds from diversified industries, U.S. Treasuries, bank loans and mortgage backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(g) | This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutual funds, commingled and limited partnership funds and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices in actively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuations for some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing. | |||||||||||||||||||||||||||||||
(h) | This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber and private mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in this category may be based on discounted cash flow analyses, relevant publicly-traded comparables and comparable transactions. | |||||||||||||||||||||||||||||||
(i) | In 2014, DTE Electric began a securities lending program with a third party agent. The program allows the agent to lend certain securities from the Company's VEBA trust to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with its securities lending agency agreement. | |||||||||||||||||||||||||||||||
The VEBA trust holds debt and equity securities directly and indirectly through commingled funds and institutional mutual funds. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The commingled funds and institutional mutual funds hold exchange-traded equity or debt securities and are valued based on NAV. Non-exchange traded fixed income securities are valued by the trustee based upon quotations available from brokers or pricing services. A primary price source is identified by asset type, class or issue for each security. The trustees monitor 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 challenges an assigned price and determines that another price source is considered to be preferable. DTE Electric has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, DTE Electric selectively corroborates the fair values of securities by comparison of market-based price sources. | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3): | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | Private Equity and Other | Total | Hedge Funds and Similar Investments | Private Equity and Other | Total | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning Balance at January 1 | $ | 111 | $ | 71 | $ | 182 | $ | 78 | $ | 57 | $ | 135 | ||||||||||||||||||||
Total realized/unrealized gains (losses) | 5 | 6 | 11 | 10 | 7 | 17 | ||||||||||||||||||||||||||
Purchases, sales and settlements: | ||||||||||||||||||||||||||||||||
Purchases | 4 | 22 | 26 | 23 | 14 | 37 | ||||||||||||||||||||||||||
Sales | (6 | ) | (8 | ) | (14 | ) | — | (7 | ) | (7 | ) | |||||||||||||||||||||
Ending Balance at December 31 | $ | 114 | $ | 91 | $ | 205 | $ | 111 | $ | 71 | $ | 182 | ||||||||||||||||||||
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $ | 5 | $ | 5 | $ | 10 | $ | 10 | $ | 6 | $ | 16 | ||||||||||||||||||||
There were no transfers between Level 3 and Level 2 and there were no significant transfers between Level 2 and Level 1 in the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Interim Re-Measurement of Other Postretirement Benefit Obligation | ||||||||||||||||||||||||||||||||
In March 2013, the Company reached an agreement on a new four-year labor contract with certain represented employees. As a term of the agreement, the Company replaced the defined benefit employer-sponsored retiree medical, prescription drug and dental coverage for future Medicare eligible retirees and their covered dependents with an allocation to a Retiree Reimbursement Account, when the youngest of the retiree's covered household turns age 65. The amount of the allocation is $3,250 per year for each eligible participant, which increased to $3,315 in 2014. The amount of the allocation will increase each year at the lower of the rate of medical inflation or 2%. The modification in retiree health coverage will reduce future other postretirement benefit costs. | ||||||||||||||||||||||||||||||||
Based on the impact of such benefit cost savings on the Consolidated Financial Statements, the Company re-measured its retiree health plan as of March 31, 2013. In performing the re-measurement, the Company updated its significant actuarial assumptions, including an adjustment to the discount rate from 4.15% at December 31, 2012 to 4.30% at March 31, 2013. Plan assets were also updated to reflect fair value as of the re-measurement date. Beginning April 2013, net other postretirement benefit costs were recorded based on the updated actuarial assumptions and benefit changes resulting from the new labor contract. | ||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||
The Company also sponsors defined contribution retirement savings plans. Participation in one of these plans is available to substantially all represented and non-represented employees. The Company matches employee contributions up to certain predefined limits based upon eligible compensation, the employee’s contribution rate and, in some cases, years of credit service. The cost of these plans was $24 million, $21 million and $19 million in each of the years ended December 31, 2014, 2013 and 2012, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Related Party Transactions | RELATED PARTY TRANSACTIONS | |||||||||||
The Company has agreements with affiliated companies to sell energy for resale, purchase power, provide fuel supply services, and provide power plant operation and maintenance services. The Company has agreements with certain DTE Energy affiliates where we charge them for their use of the shared capital assets of the Company. A shared services company accumulates various corporate support services expenses and charges various subsidiaries of DTE Energy, including DTE Electric. DTE Electric records federal, state and local income taxes payable to or receivable from DTE Energy based on its federal, state and local tax provisions. | ||||||||||||
The following is a summary of transactions with affiliated companies: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | (In millions) | |||||||||||
Energy sales | $ | 2 | $ | 2 | $ | 2 | ||||||
Other services | $ | 5 | $ | 7 | $ | 11 | ||||||
Shared capital assets | $ | 26 | $ | 23 | $ | 26 | ||||||
Costs | ||||||||||||
Fuel and purchased power | $ | 4 | $ | 4 | $ | 5 | ||||||
Other services and interest | $ | (1 | ) | $ | (1 | ) | $ | 1 | ||||
Corporate expenses (net) | $ | 304 | $ | 334 | $ | 322 | ||||||
Other | ||||||||||||
Dividends declared | $ | 370 | $ | 342 | $ | 317 | ||||||
Dividends paid | $ | 370 | $ | 342 | $ | 317 | ||||||
Capital contribution from DTE Energy | $ | 190 | $ | 400 | $ | — | ||||||
DTE Electric's Accounts receivable and Accounts payable related to Affiliates are payable upon demand and are generally settled in cash within a monthly business cycle. Notes receivable and Short-term borrowings related to Affiliates are subject to a credit agreement with DTE Energy whereby short-term excess cash or cash shortfalls are remitted to or funded by DTE Energy. This credit arrangement involves the charge and payment of interest at market-based rates. Refer to the Consolidated Statements of Financial Position for affiliate balances at December 31, 2014 and 2013. | ||||||||||||
There were no charitable contributions to the DTE Energy Foundation for the years ended December 31, 2014 and December 31, 2012, while there were $18 million in contributions for the year ended December 31, 2013. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is to contribute and assist charitable organizations. |
Supplementary_Quarterly_Financ
Supplementary Quarterly Financial Information (Unaudited) (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Supplementary Quarterly Financial Information (Unaudited) | SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year to Date | ||||||||||||||||
(In millions) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Operating Revenues | $ | 1,410 | $ | 1,281 | $ | 1,357 | $ | 1,234 | $ | 5,282 | ||||||||||
Operating Income | $ | 271 | $ | 259 | $ | 272 | $ | 250 | $ | 1,052 | ||||||||||
Net Income | $ | 137 | $ | 130 | $ | 136 | $ | 129 | $ | 532 | ||||||||||
2013 | ||||||||||||||||||||
Operating Revenues | $ | 1,219 | $ | 1,265 | $ | 1,457 | $ | 1,256 | $ | 5,197 | ||||||||||
Operating Income | $ | 235 | $ | 202 | $ | 338 | $ | 225 | $ | 1,000 | ||||||||||
Net Income | $ | 116 | $ | 90 | $ | 180 | $ | 101 | $ | 487 | ||||||||||
Subsequent_Event_Notes
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT |
In October 2014, DTE Electric executed an agreement to purchase a 732 MW simple-cycle natural gas facility in Carson City, Michigan from The LS Power Group for a total purchase price of approximately $240 million paid in cash. This facility will serve to meet the needs of approximately 260,000 additional households during peak demand. DTE Electric closed on the acquisition on January 21, 2015. | |
Effective upon closing, DTE Electric obtained control over and applied acquisition accounting to the acquired business. Due to the limited time since the acquisition date, the initial accounting for the business combination is incomplete. As a result, DTE Electric is unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired. DTE Electric will include required information in the Quarterly Report on Form 10-Q for the period ending March 31, 2015. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||
Schedule II Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Allowance for Doubtful Accounts (shown as deduction from Accounts Receivable in the Consolidated Statements of Financial Position) | ||||||||||||
Balance at Beginning of Period | $ | 28 | $ | 35 | $ | 80 | ||||||
Additions: | ||||||||||||
Charged to costs and expenses | 50 | 52 | 40 | |||||||||
Charged to other accounts (a) | 10 | 11 | 7 | |||||||||
Deductions (b) | (59 | ) | (70 | ) | (92 | ) | ||||||
Balance at End of Period | $ | 29 | $ | 28 | $ | 35 | ||||||
_______________________________________ | ||||||||||||
(a) | Collection of accounts previously written off. | |||||||||||
(b) | Uncollectible accounts written off. |
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying Consolidated Financial Statements 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 Company’s estimates. | |
Principles of Consolidation | Principles of Consolidation |
The Company consolidates all majority-owned subsidiaries and investments in entities in which it has controlling influence. Non-majority owned investments are accounted for using the equity method when the Company is able to influence the operating policies of the investee. When the Company does not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect the Company’s proportionate interests in certain jointly owned utility plants. The Company eliminates all intercompany balances and transactions. | |
The Company evaluates whether an entity is a VIE whenever reconsideration events occur. The Company consolidates VIEs for which it is the primary beneficiary. If the Company 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, the Company 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 Company performs ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed. | |
The Company has variable interests in VIEs through certain of its long-term purchase contracts. As of December 31, 2014, the carrying amount of assets and liabilities in the Consolidated Statements of Financial Position that relate to its variable interests under long-term purchase contracts are predominately related to working capital accounts and generally represent the amounts owed by the Company for the deliveries associated with the current billing cycle under the contracts. The Company has not provided any significant form of financial support associated with these long-term contracts. There is no significant potential exposure to loss as a result of its variable interests through these long-term purchase contracts. | |
In 2001, DTE Electric financed a regulatory asset related to Fermi 2 and certain other regulatory assets through the sale of rate reduction bonds by a wholly-owned special purpose entity, Securitization. DTE Electric performs servicing activities including billing and collecting surcharge revenue for Securitization. This entity is a VIE and is consolidated by the Company. The maximum risk exposure related to Securitization is reflected on the Company’s Consolidated Statements of Financial Position. | |
Revenues | Revenues |
Revenues from the sale and delivery of electricity are recognized as services are provided. The Company records revenues for electricity provided but unbilled at the end of each month. Rates for DTE Electric include provisions to adjust billings for fluctuations in fuel and purchased power costs, and certain other costs. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are recorded on the Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors. | |
See Note 7, "Regulatory Matters", for further discussion of recovery mechanisms authorized by the MPSC. | |
Accounting for ISO Transactions | Accounting for ISO Transactions |
DTE Electric participates in the energy market through MISO. MISO requires that we submit hourly day-ahead, real- time and FTR bids and offers for energy at locations across the MISO region. DTE Electric accounts for MISO transactions on a net hourly basis in each of the day-ahead, real-time and FTR markets and net transactions across all MISO energy market locations. In any single hour DTE Electric records net purchases in Fuel and purchased power and net sales in Operating revenues on the Consolidated Statements of Operations. DTE Electric records accruals for future net purchases adjustments based on historical experience, and reconciles accruals to actual costs when invoices are received from MISO. | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated Other Comprehensive Loss |
Comprehensive income (loss) is the change in common shareholder’s equity during a period from transactions and events from non-owner sources, including net income. The amounts recorded to accumulated other comprehensive loss include unrealized gains and losses on available-for-sale securities and changes in benefit obligations, consisting of deferred actuarial losses, and prior service costs. | |
Cash Equivalents and Restricted Cash | 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 consists of funds held to satisfy requirements of certain debt agreements, related to Securitization bonds. Restricted cash designated for interest and principal payments within one year is classified as a current asset. | |
Receivables | Receivables |
Accounts receivable are primarily composed of trade receivables and unbilled revenue. Our accounts receivable are stated at net realizable value. | |
The allowance for doubtful accounts is generally calculated using the aging approach that utilizes rates developed in reserve studies. DTE Electric establishes an allowance for uncollectible accounts based on historical losses and management’s assessment of existing 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. We 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. | |
Unbilled revenues of $250 million and $280 million are included in customer accounts receivable at December 31, 2014 and 2013, respectively. | |
Notes Receivable | |
Notes receivable, or financing receivables, are primarily comprised of loans and are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. The Company ceases accruing interest (nonaccrual status), considers a note receivable impaired, and establishes 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. Cash payments received on nonaccrual status notes receivable, that do not bring the account contractually current, are first applied to contractually owed past due interest, with any remainder applied to principal. Accrual of interest is generally resumed when the note receivable becomes contractually current. | |
In determining the allowance for credit losses for notes receivable, we consider the historical payment experience and other factors that are expected to have a specific impact on the counterparty’s ability to pay. In addition, the Company monitors the credit ratings of the counterparties from which we have notes receivable. | |
Inventories | Inventories |
The Company generally values inventory at average cost. | |
Property, Retirement, and Maintenance, and Depreciation, Depletion and Amortization | Property, Retirement and Maintenance, and Depreciation, Depletion and Amortization |
Property is stated at cost and includes construction-related labor, materials, overheads and AFUDC. The cost of properties retired is charged to accumulated depreciation. Expenditures for maintenance and repairs are charged to expense when incurred, except for Fermi 2. | |
Utility property is depreciated over its estimated useful life using straight-line rates approved by the MPSC. | |
Depreciation and amortization expense also includes the amortization of certain regulatory assets. | |
Approximately $16 million and $26 million of expenses related to Fermi 2 refueling outages were accrued at December 31, 2014 and 2013, respectively. Amounts are accrued on a pro-rata basis, generally over an 18-month period, that coincides with scheduled refueling outages at Fermi 2. This accrual of outage costs matches the regulatory recovery of these costs in rates set by the MPSC. See Note 7 to the Consolidated Financial Statements, "Regulatory Matters". | |
The cost of nuclear fuel is capitalized. The amortization of nuclear fuel is included within Fuel and purchased power in the Consolidated Statements of Operations and is recorded using the units-of-production method. | |
Capitalized software costs are classified as Property, plant and equipment and the related amortization is included in Accumulated depreciation and amortization on the Consolidated Statements of Financial Position. The Company capitalizes the costs associated with computer software it develops or obtains for use in its business. The Company amortizes capitalized software costs on a straight-line basis over the expected period of benefit | |
Long-Lived Assets | Long-Lived Assets |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of the asset exceeds the expected discounted future cash flows generated by the asset, an impairment loss is recognized resulting in the asset being written down to its estimated fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. | |
Intangible Assets | Emission allowances and renewable energy credits are charged to expense, using average cost, as the allowances and credits are consumed in the operation of the business. |
Excise and Sales Taxes | Excise and Sales Taxes |
The Company records the billing of excise and sales taxes as a receivable with an offsetting payable to the applicable taxing authority, with no net impact on the Consolidated Statements of Operations. | |
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts in the financial statements. Deferred tax assets and liabilities are classified as current or noncurrent according to the classification of the related assets or liabilities. Deferred tax assets and liabilities not related to assets or liabilities are classified according to the expected reversal date of the temporary differences. Consistent with rate making treatment, deferred taxes are offset in the table below for temporary differences which have related regulatory assets and liabilities. | |
Deferred Debt Costs | Deferred Debt Costs |
The costs related to the issuance of long-term debt are deferred and amortized over the life of each debt issue. In accordance with MPSC regulations, the unamortized discount, premium and expense related to debt redeemed with a refinancing are amortized over the life of the replacement issue. | |
Investments in Debt and Equity Securities | Investments in Debt and Equity Securities |
The Company generally classifies investments in debt and equity securities as either trading or available-for-sale and has recorded such investments at market value with unrealized gains or losses included in earnings or in other comprehensive income or loss, respectively. Changes in the fair value of Fermi 2 nuclear decommissioning investments are recorded as adjustments to regulatory assets or liabilities, due to a recovery mechanism from customers. The Company’s equity investments are reviewed for impairment each reporting period. If the assessment indicates that the impairment is other than temporary, a loss is recognized resulting in the equity investment being written down to its estimated fair value. See Note 9 to the Consolidated Financial Statements, "Fair Value". | |
Government Grants | Government Grants |
Grants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met. When grants are received related to Property, plant and equipment, the Company reduces the cost of the assets on the Consolidated Statements of Financial Position, resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of the associated expense in the period in which the expense is incurred. | |
Asset Retirement Obligations | The Company has a legal retirement obligation for the decommissioning costs for its Fermi 1 and Fermi 2 nuclear plants, dismantlement of facilities located on leased property and various other operations. The Company has conditional retirement obligations for asbestos and PCB removal at certain of its power plants and various distribution equipment. The Company recognizes such obligations as liabilities at fair market value when they are incurred, which generally is at the time the associated assets are placed in service. Fair value is measured using expected future cash outflows discounted at our credit-adjusted risk-free rate. The Company recognizes regulatory assets or liabilities for timing differences in expense recognition for legal asset retirement costs that are currently recovered in rates. |
If a reasonable estimate of fair value cannot be made in the period in which the retirement obligation is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. Substations, manholes and certain other distribution assets have an indeterminate life. Therefore, no liability has been recorded for these assets. | |
Regulatory Matters | DTE Electric is required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of providing regulated services and be charged to and collected from customers. Future regulatory changes or changes in the competitive environment could result in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of our businesses and may require the write-off of the portion of any regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current regulatory environment. |
Fair Value Measurement | 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 Company makes certain assumptions it believes 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 Company and its counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31, 2014 and 2013. The Company believes it uses 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 Company classifies 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 Company has 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. | |
Nuclear Decommissioning Trust and Other Investments | The nuclear decommissioning trusts and other investments hold debt and equity securities directly and indirectly through institutional mutual funds. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The institutional mutual funds hold exchange-traded equity or debt securities and are valued based on stated NAVs. Non-exchange-traded fixed income securities are valued based upon quotations available from brokers or pricing services. 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 Company has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Company selectively corroborates the fair value of securities by comparison of market-based price sources. Investment policies and procedures are determined by the Company's Trust Investments Department which reports to the Company's Vice President and Treasurer. |
Derivatives Reporting of Derivative Activity | The Company considers 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 Company monitors 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 Company has obtained an understanding of how these prices are derived. Additionally, the Company selectively corroborates the fair value of its 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 Company has 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 our forward price curves has been assigned to our Risk Management Department, which is separate and distinct from the trading functions within the Company. |
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 Company has obtained an understanding of how the fair values are derived. The Company also selectively corroborates the fair value of its 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, are 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 are determined by the Company's Treasury Department which reports to the Company's Vice President and Treasurer. |
Derivatives | The Company recognizes all derivatives at their fair value as Derivative assets or liabilities on the 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 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. |
The Company's primary market risk exposure is associated with commodity prices, credit and interest rates. The Company has risk management policies to monitor and manage market risks. The Company uses derivative instruments to manage some of the exposure. 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 sales exemption 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. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||
Schedule of Variable Interest Entities | The following table summarizes the major balance sheet items at December 31, 2014 and 2013 restricted for Securitization that are either (1) assets that can be used only to settle their obligations related to Securitization or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Restricted cash | $ | 96 | $ | 100 | ||||
Accounts receivable | 26 | 34 | ||||||
Securitized regulatory assets | 34 | 231 | ||||||
Other current and long-term assets | 1 | 4 | ||||||
$ | 157 | $ | 369 | |||||
LIABILITIES | ||||||||
Accounts payable and accrued current liabilities | $ | 3 | $ | 7 | ||||
Current portion long-term debt, including capital leases | 105 | 196 | ||||||
Current regulatory liabilities | 32 | 43 | ||||||
Securitization bonds | — | 105 | ||||||
Other current and long-term liabilities | 9 | 8 | ||||||
$ | 149 | $ | 359 | |||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in Accumulated other comprehensive loss by component for the years ended December 31, 2014 and 2013: | |||||||||||
Changes in Accumulated Other Comprehensive Loss by Component (a) | ||||||||||||
Net Unrealized Gain/(Loss) on Investments | Benefit Obligations (b) | Total | ||||||||||
(In millions) | ||||||||||||
Balance, January 1, 2013 | $ | — | $ | (22 | ) | $ | (22 | ) | ||||
Other comprehensive income before reclassifications | 1 | 3 | 4 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 2 | 2 | |||||||||
Net current-period other comprehensive income | 1 | 5 | 6 | |||||||||
Balance, December 31, 2013 | $ | 1 | $ | (17 | ) | $ | (16 | ) | ||||
Other comprehensive loss before reclassifications | — | (12 | ) | (12 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 2 | 2 | |||||||||
Net current-period other comprehensive loss | — | (10 | ) | (10 | ) | |||||||
Balance, December 31, 2014 | $ | 1 | $ | (27 | ) | $ | (26 | ) | ||||
________________________________________ | ||||||||||||
(a) | All amounts are net of tax. | |||||||||||
(b) | The amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of the net periodic pension and other postretirement benefit costs (see Note 16 to the Consolidated Financial Statements "Retirement Benefits and Trusteed Assets"). | |||||||||||
Schedule of Finite-Lived Intangible Assets | The Company has certain intangible assets relating to emission allowances and renewable energy credits as shown below: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Emission allowances | $ | 1 | $ | 2 | ||||||||
Renewable energy credits | 45 | 51 | ||||||||||
46 | 53 | |||||||||||
Less current intangible assets | 9 | 12 | ||||||||||
$ | 37 | $ | 41 | |||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Equipment | Summary of property by classification as of December 31: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Property, Plant and Equipment | ||||||||
Generation | $ | 11,641 | $ | 11,127 | ||||
Distribution | 8,164 | 7,603 | ||||||
Total | 19,805 | 18,730 | ||||||
Less Accumulated Depreciation and Amortization | ||||||||
Generation | (4,149 | ) | (4,004 | ) | ||||
Distribution | (3,067 | ) | (2,947 | ) | ||||
Total | (7,216 | ) | (6,951 | ) | ||||
Net Property, Plant and Equipment | $ | 12,589 | $ | 11,779 | ||||
Jointly_Owned_Utility_Plant_Ta
Jointly Owned Utility Plant (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | ||||||||
Schedule of Jointly Owned Utility Plants | Ownership information of the two utility plants as of December 31, 2014 was as follows: | |||||||
Belle River | Ludington | |||||||
Hydroelectric | ||||||||
Pumped Storage | ||||||||
In-service date | 1984-1985 | 1973 | ||||||
Total plant capacity | 1,270 | MW | 1,872 | MW | ||||
Ownership interest | (a) | 49 | % | |||||
Investment in property, plant and equipment (in millions) | $ | 1,742 | $ | 412 | ||||
Accumulated depreciation (in millions) | $ | 993 | $ | 175 | ||||
_________________________________ | ||||||||
(a) | DTE Electric’s ownership interest is 63% in Unit No. 1, 81% of the facilities applicable to Belle River used jointly by the Belle River and St. Clair Power Plants and 75% in common facilities used at Unit No. 2. |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Schedule of Change in Asset Retirement Obligation | A reconciliation of the asset retirement obligations for 2014 follows: | |||
(In millions) | ||||
Asset retirement obligations at December 31, 2013 | $ | 1,667 | ||
Accretion | 103 | |||
Liabilities incurred | 9 | |||
Liabilities settled | (6 | ) | ||
Revision in estimated cash flows | 23 | |||
Asset retirement obligations at December 31, 2014 | $ | 1,796 | ||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||
Schedule of Regulatory Assets | The following are balances and a brief description of the regulatory assets and liabilities at December 31: | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Assets | ||||||||
Recoverable pension and other postretirement costs: | ||||||||
Pension | $ | 1,743 | $ | 1,257 | ||||
Other postretirement costs | 191 | — | ||||||
Asset retirement obligation | 448 | 394 | ||||||
Recoverable Michigan income taxes | 220 | 237 | ||||||
Other recoverable income taxes | 66 | 71 | ||||||
Cost to achieve Performance Excellence Process | 46 | 64 | ||||||
Unamortized loss on reacquired debt | 44 | 38 | ||||||
Accrued PSCR revenue | 34 | — | ||||||
Recoverable income taxes related to securitized regulatory assets | 19 | 126 | ||||||
Removal costs asset | 15 | — | ||||||
Transitional Reconciliation Mechanism | 14 | — | ||||||
Other | 119 | 101 | ||||||
2,959 | 2,288 | |||||||
Less amount included in current assets | (46 | ) | (13 | ) | ||||
$ | 2,913 | $ | 2,275 | |||||
Securitized regulatory assets | $ | 34 | $ | 231 | ||||
Schedule of Regulatory Liabilities | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Liabilities | ||||||||
Renewable energy | $ | 227 | $ | 277 | ||||
Over recovery of Securitization | 71 | 72 | ||||||
Refundable revenue decoupling / deferred gain | 63 | 127 | ||||||
Fermi 2 refueling outage | 16 | 26 | ||||||
Energy optimization | 14 | 25 | ||||||
Accrued PSCR refund | — | 53 | ||||||
Refundable other postretirement costs | — | 48 | ||||||
Removal costs liability | — | 33 | ||||||
Other | 4 | 3 | ||||||
395 | 664 | |||||||
Less amount included in current liabilities | (150 | ) | (278 | ) | ||||
$ | 245 | $ | 386 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense varied from the statutory federal income tax rate for the following reasons: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Income before income taxes | $ | 830 | $ | 741 | $ | 768 | ||||||
Income tax expense at 35% statutory rate | $ | 291 | $ | 260 | $ | 269 | ||||||
Production tax credits | (22 | ) | (15 | ) | (5 | ) | ||||||
Investment tax credits | (5 | ) | (5 | ) | (6 | ) | ||||||
Depreciation | 3 | 3 | 3 | |||||||||
AFUDC - Equity | (7 | ) | (5 | ) | (4 | ) | ||||||
Employee Stock Ownership Plan dividends | (3 | ) | (2 | ) | (3 | ) | ||||||
Domestic production activities deduction | (2 | ) | (18 | ) | (16 | ) | ||||||
State and other income taxes, net of federal benefit | 43 | 41 | 40 | |||||||||
Other, net | — | (5 | ) | 4 | ||||||||
Income tax expense | $ | 298 | $ | 254 | $ | 282 | ||||||
Effective income tax rate | 35.9 | % | 34.3 | % | 36.7 | % | ||||||
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax expense were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current income tax expense (benefit) | ||||||||||||
Federal | $ | (19 | ) | $ | 123 | $ | 267 | |||||
State and other income tax | 20 | 23 | 67 | |||||||||
Total current income taxes | 1 | 146 | 334 | |||||||||
Deferred income tax expense (benefit) | ||||||||||||
Federal | 251 | 68 | (47 | ) | ||||||||
State and other income tax | 46 | 40 | (5 | ) | ||||||||
Total deferred income taxes | 297 | 108 | (52 | ) | ||||||||
Total | $ | 298 | $ | 254 | $ | 282 | ||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) were comprised of the following at December 31: | |||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Property, plant and equipment | $ | (3,152 | ) | $ | (2,807 | ) | ||||||
Securitized regulatory assets | (3 | ) | (130 | ) | ||||||||
Pension and benefits | (43 | ) | 27 | |||||||||
Other | 12 | 12 | ||||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
Current deferred income tax assets (liabilities) | $ | 2 | $ | (91 | ) | |||||||
Long-term deferred income tax liabilities | (3,188 | ) | (2,807 | ) | ||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
Deferred income tax assets | $ | 357 | $ | 420 | ||||||||
Deferred income tax liabilities | (3,543 | ) | (3,318 | ) | ||||||||
$ | (3,186 | ) | $ | (2,898 | ) | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1 | $ | 4 | $ | 4 | $ | 59 | ||||||
Reductions for tax positions of prior years | — | — | (3 | ) | ||||||||
Settlements | — | — | (52 | ) | ||||||||
Balance at December 31 | $ | 4 | $ | 4 | $ | 4 | ||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | The following table presents assets measured and recorded at fair value on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Net Balance | Level 1 | Level 2 | Level 3 | Net Balance | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents (a) | $ | 5 | $ | 99 | $ | — | $ | 104 | $ | 2 | $ | 114 | $ | — | $ | 116 | ||||||||||||||||
Nuclear decommissioning trusts | 792 | 449 | — | 1,241 | 779 | 412 | — | 1,191 | ||||||||||||||||||||||||
Other investments (b) | 97 | 50 | — | 147 | 91 | 44 | — | 135 | ||||||||||||||||||||||||
Derivative assets — FTRs | — | — | 3 | 3 | — | — | 3 | 3 | ||||||||||||||||||||||||
Total | $ | 894 | $ | 598 | $ | 3 | $ | 1,495 | $ | 872 | $ | 570 | $ | 3 | $ | 1,445 | ||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Current | $ | 5 | $ | 99 | $ | 3 | $ | 107 | $ | 2 | $ | 114 | $ | 3 | $ | 119 | ||||||||||||||||
Noncurrent | 889 | 499 | — | 1,388 | 870 | 456 | — | 1,326 | ||||||||||||||||||||||||
Total Assets | $ | 894 | $ | 598 | $ | 3 | $ | 1,495 | $ | 872 | $ | 570 | $ | 3 | $ | 1,445 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | At December 31, 2014, available-for-sale securities of $104 million, included $96 million and $8 million of cash equivalents included in Restricted cash and Other investments, respectively, on the Consolidated Statements of Financial Position. At December 31, 2013, available-for-sale securities of $116 million, included $100 million and $16 million of cash equivalents included in Restricted cash and Other investments, respectively, on the Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||
(b) | Available-for-sale equity securities at December 31, 2014 and 2013 of $8 million and $7 million, respectively, are included in Other investments on the Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Net Assets as of beginning of period | $ | 3 | 1 | |||||||||||||||||||||||||||||
Change in fair value recorded in regulatory assets/liabilities | 8 | 5 | ||||||||||||||||||||||||||||||
Purchases, issuances and settlements: | ||||||||||||||||||||||||||||||||
Settlements | (8 | ) | (3 | ) | ||||||||||||||||||||||||||||
Net Assets as of December 31, | $ | 3 | $ | 3 | ||||||||||||||||||||||||||||
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to regulatory assets and liabilities held at December 31, 2014 and 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amount and fair value of financial instruments as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
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 | $ | 12 | $ | — | $ | — | $ | 12 | $ | 10 | $ | — | $ | — | $ | 10 | ||||||||||||||||
Notes receivable — affiliates | $ | 8 | $ | — | $ | — | $ | 8 | $ | 200 | $ | — | $ | — | $ | 200 | ||||||||||||||||
Short-term borrowings — affiliates | $ | 84 | $ | — | $ | — | $ | 84 | $ | 58 | $ | — | $ | — | $ | 58 | ||||||||||||||||
Short-term borrowings — other | $ | 50 | $ | — | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Long-term debt, excluding capital leases | $ | 5,259 | $ | — | $ | 5,341 | $ | 496 | $ | 5,146 | $ | — | $ | 5,253 | $ | 136 | ||||||||||||||||
Fair Value of Nuclear Decommissioning Trust Fund Assets | The following table summarizes the fair value of the nuclear decommissioning trust fund assets: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Fermi 2 | $ | 1,221 | $ | 1,172 | ||||||||||||||||||||||||||||
Fermi 1 | 3 | 3 | ||||||||||||||||||||||||||||||
Low-level radioactive waste | 17 | 16 | ||||||||||||||||||||||||||||||
Total | $ | 1,241 | $ | 1,191 | ||||||||||||||||||||||||||||
Schedule of Realized Gain (Loss) | The following table sets forth the gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Realized gains | $ | 54 | $ | 83 | $ | 37 | ||||||||||||||||||||||||||
Realized losses | $ | (33 | ) | $ | (41 | ) | $ | (31 | ) | |||||||||||||||||||||||
Proceeds from sales of securities | $ | 1,146 | $ | 1,118 | $ | 759 | ||||||||||||||||||||||||||
Fair Value and Unrealized Gains for Nuclear Decommissioning Trust Fund | The following table sets forth the fair value and unrealized gains for the nuclear decommissioning trust funds: | |||||||||||||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Fair | Unrealized | Unrealized | Fair | Unrealized | Unrealized | |||||||||||||||||||||||||||
Value | Gains | Losses | Value | Gains | Losses | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Equity securities | $ | 756 | $ | 204 | $ | (39 | ) | $ | 730 | $ | 201 | $ | (25 | ) | ||||||||||||||||||
Debt securities | 474 | 21 | (2 | ) | 442 | 12 | (6 | ) | ||||||||||||||||||||||||
Cash and cash equivalents | 11 | — | — | 19 | — | — | ||||||||||||||||||||||||||
$ | 1,241 | $ | 225 | $ | (41 | ) | $ | 1,191 | $ | 213 | $ | (31 | ) | |||||||||||||||||||
Financial_and_Other_Derivative1
Financial and Other Derivative Instruments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Fair value of derivative instruments | The following table presents the fair value of derivative instruments as of December 31, 2014 and 2013: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
FTRs — Other current assets | $ | 3 | $ | 3 | ||||
Total derivatives not designated as hedging instrument | $ | 3 | $ | 3 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The Company's long-term debt outstanding and weighted average interest rates (a) of debt outstanding at December 31 were: | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Taxable Debt, Principally Secured | ||||||||||||||||||||||||||||
4.5% due 2016 to 2044 | $ | 4,824 | $ | 4,286 | ||||||||||||||||||||||||
Tax- Exempt Revenue Bonds (b) | ||||||||||||||||||||||||||||
5.2% due 2020 to 2030 | 330 | 558 | ||||||||||||||||||||||||||
5,154 | 4,844 | |||||||||||||||||||||||||||
Less amount due within one year | (10 | ) | (304 | ) | ||||||||||||||||||||||||
$ | 5,144 | $ | 4,540 | |||||||||||||||||||||||||
Securitization Bonds | ||||||||||||||||||||||||||||
6.6% due 2015 | $ | 105 | $ | 302 | ||||||||||||||||||||||||
Less amount due within one year | (105 | ) | (197 | ) | ||||||||||||||||||||||||
$ | — | $ | 105 | |||||||||||||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
(a) | Weighted average interest rates as of December 31, 2014 are shown below the description of each category of debt. | |||||||||||||||||||||||||||
(b) | Tax-Exempt Revenue Bonds are issued by a public body that loans the proceeds to DTE Electric on terms substantially mirroring the Revenue Bonds. | |||||||||||||||||||||||||||
Schedule of Issued Debt | In 2014, the following debt was issued: | |||||||||||||||||||||||||||
Month | Type | Interest Rate | Maturity | Amount | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
June | Mortgage Bonds (a) | 3.77 | % | 2026 | $ | 100 | ||||||||||||||||||||||
June | Mortgage Bonds (a) | 4.6 | % | 2044 | 150 | |||||||||||||||||||||||
July | Mortgage Bonds (a) | 3.375 | % | 2025 | 350 | |||||||||||||||||||||||
July | Mortgage Bonds (a) | 4.3 | % | 2044 | 350 | |||||||||||||||||||||||
$ | 950 | |||||||||||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | Proceeds were used for the redemption of long-term debt, repayment of short-term borrowings and general corporate purposes. | |||||||||||||||||||||||||||
Debt Instrument Redemption | In 2014, the following debt was redeemed: | |||||||||||||||||||||||||||
Month | Type | Interest Rate | Maturity | Amount | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
March | Mortgage Bonds | Various | 2014 | $ | 13 | |||||||||||||||||||||||
March | Securitization Bonds | 6.62 | % | 2014 | 100 | |||||||||||||||||||||||
April | Tax Exempt Revenue Bonds (a) | 2.35 | % | 2024 | 31 | |||||||||||||||||||||||
April | Tax Exempt Revenue Bonds (a) | 4.65 | % | 2028 | 32 | |||||||||||||||||||||||
June | Tax Exempt Revenue Bonds (a) | 4.875 | % | 2029 | 36 | |||||||||||||||||||||||
June | Tax Exempt Revenue Bonds (a) | 6 | % | 2036 | 69 | |||||||||||||||||||||||
July | Senior Notes | 4.8 | % | 2015 | 200 | |||||||||||||||||||||||
August | Tax Exempt Revenue Bonds (a) | 5.25 | % | 2029 | 60 | |||||||||||||||||||||||
August | Senior Notes | 5.4 | % | 2014 | 200 | |||||||||||||||||||||||
September | Securitization Bonds | 6.62 | % | 2014 | 96 | |||||||||||||||||||||||
$ | 837 | |||||||||||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | Tax Exempt Revenue Bonds are issued by a public body that loans the proceeds to DTE Electric on terms substantially mirroring the Revenue Bonds. | |||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The following table shows the scheduled debt maturities, excluding any unamortized discount or premium on debt: | |||||||||||||||||||||||||||
2020 and | ||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Amount to mature | $ | 115 | $ | 151 | $ | — | $ | 300 | $ | — | $ | 4,704 | $ | 5,270 | ||||||||||||||
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable leases at December 31, 2014 were: | |||
Operating | ||||
Leases | ||||
(In millions) | ||||
2015 | $ | 28 | ||
2016 | 22 | |||
2017 | 18 | |||
2018 | 15 | |||
2019 | 10 | |||
Thereafter | 40 | |||
Total minimum lease payments | $ | 133 | ||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Long-term Purchase Commitment | The Company estimates that these commitments will be approximately $2.4 billion from 2015 through 2033 as detailed in the following table: | |||
(In millions) | ||||
2015 | $ | 496 | ||
2016 | 330 | |||
2017 | 278 | |||
2018 | 125 | |||
2019 | 106 | |||
2020 and thereafter | 1,063 | |||
$ | 2,398 | |||
Retirement_Benefits_and_Truste1
Retirement Benefits and Trusteed Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Pension Plan [Member] | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Net pension cost includes the following components: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 64 | $ | 73 | $ | 64 | ||||||||||||||||||||||||||
Interest cost | 162 | 146 | 155 | |||||||||||||||||||||||||||||
Expected return on plan assets | (194 | ) | (184 | ) | (166 | ) | ||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Net loss | 110 | 148 | 124 | |||||||||||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | |||||||||||||||||||||||||||||
Settlements | — | — | 2 | |||||||||||||||||||||||||||||
Net pension cost | $ | 144 | $ | 184 | $ | 180 | ||||||||||||||||||||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income | ||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 614 | $ | (418 | ) | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (110 | ) | (148 | ) | ||||||||||||||||||||||||||||
Prior service cost | (2 | ) | — | |||||||||||||||||||||||||||||
Amortization of prior service cost | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||
Total recognized in Regulatory assets and Other comprehensive income | $ | 500 | $ | (567 | ) | |||||||||||||||||||||||||||
Total recognized in net periodic pension cost, Regulatory assets and Other comprehensive income | $ | 644 | $ | (383 | ) | |||||||||||||||||||||||||||
Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 149 | $ | 106 | ||||||||||||||||||||||||||||
Prior service cost | $ | 1 | $ | 1 | ||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following table reconciles the obligations, assets and funded status of the plan as well as the amount recognized as prepaid pension cost or pension liability in the Consolidated Statements of Financial Position at December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 3,712 | $ | 3,111 | ||||||||||||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 3,341 | $ | 3,585 | ||||||||||||||||||||||||||||
Service cost | 64 | 73 | ||||||||||||||||||||||||||||||
Interest cost | 162 | 146 | ||||||||||||||||||||||||||||||
Plan amendments | (2 | ) | — | |||||||||||||||||||||||||||||
Actuarial (gain) loss | 634 | (286 | ) | |||||||||||||||||||||||||||||
Benefits paid | (181 | ) | (177 | ) | ||||||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 4,018 | $ | 3,341 | ||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 2,632 | $ | 2,211 | ||||||||||||||||||||||||||||
Actual return on plan assets | 212 | 316 | ||||||||||||||||||||||||||||||
Company contributions | 149 | 282 | ||||||||||||||||||||||||||||||
Benefits paid | (181 | ) | (177 | ) | ||||||||||||||||||||||||||||
Plan assets at fair value, end of year | $ | 2,812 | $ | 2,632 | ||||||||||||||||||||||||||||
Funded status of the plan | $ | (1,206 | ) | $ | (709 | ) | ||||||||||||||||||||||||||
Amount recorded as: | ||||||||||||||||||||||||||||||||
Current liabilities | $ | (6 | ) | $ | (4 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (1,200 | ) | (705 | ) | ||||||||||||||||||||||||||||
$ | (1,206 | ) | $ | (709 | ) | |||||||||||||||||||||||||||
Amounts recognized in Regulatory assets (see Note 7 - "Regulatory Matters") | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,738 | $ | 1,248 | ||||||||||||||||||||||||||||
Prior service cost | 5 | 9 | ||||||||||||||||||||||||||||||
$ | 1,743 | $ | 1,257 | |||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | At December 31, 2014, the benefits related to the Company’s qualified and nonqualified pension plans expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 210 | ||||||||||||||||||||||||||||||
2016 | 216 | |||||||||||||||||||||||||||||||
2017 | 223 | |||||||||||||||||||||||||||||||
2018 | 233 | |||||||||||||||||||||||||||||||
2019 | 239 | |||||||||||||||||||||||||||||||
2020 - 2024 | 1,264 | |||||||||||||||||||||||||||||||
Total | $ | 2,385 | ||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Assumptions used in determining the projected benefit obligation and net pension costs are listed below: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Projected benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.12% | 4.95% | 4.15% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.65% | 4.20% | 4.20% | |||||||||||||||||||||||||||||
Net pension costs | ||||||||||||||||||||||||||||||||
Discount rate | 4.95% | 4.15% | 5.00% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.20% | 4.20% | 4.20% | |||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.75% | 8.25% | 8.25% | |||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | Fair Value Measurements for pension plan assets at December 31, 2014 and 2013 (a): | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Asset category: | ||||||||||||||||||||||||||||||||
Short-term investments (b) | $ | 33 | $ | — | $ | — | $ | 33 | $ | 15 | $ | — | $ | — | $ | 15 | ||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. large cap (c) | 638 | — | — | 638 | 639 | — | — | 639 | ||||||||||||||||||||||||
U.S. small/mid cap (d) | 162 | — | — | 162 | 160 | — | — | 160 | ||||||||||||||||||||||||
Non U.S. (e) | 378 | 157 | — | 535 | 440 | 94 | — | 534 | ||||||||||||||||||||||||
Fixed income securities (f) | 5 | 758 | — | 763 | 11 | 623 | — | 634 | ||||||||||||||||||||||||
Hedge funds and similar investments (g) | 163 | 68 | 315 | 546 | 193 | 50 | 285 | 528 | ||||||||||||||||||||||||
Private equity and other (h) | — | — | 135 | 135 | — | — | 122 | 122 | ||||||||||||||||||||||||
Securities lending (i) | (136 | ) | (36 | ) | — | (172 | ) | — | — | — | — | |||||||||||||||||||||
Securities lending collateral (i) | 136 | 36 | — | 172 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,379 | $ | 983 | $ | 450 | $ | 2,812 | $ | 1,458 | $ | 767 | $ | 407 | $ | 2,632 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | For a description of levels within the fair value hierarchy see Note 9 to the Consolidated financial Statements, "Fair Value". | |||||||||||||||||||||||||||||||
(b) | This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services. | |||||||||||||||||||||||||||||||
(c) | This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(d) | This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(e) | This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(f) | This category includes corporate bonds from diversified industries, U.S. Treasuries, and mortgage-backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(g) | This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutual funds, commingled and limited partnership funds and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices in actively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuations for some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing. | |||||||||||||||||||||||||||||||
(h) | This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber and private mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in this category may be based on discounted cash flow analyses, relevant publicly-traded comparables and comparable transactions. | |||||||||||||||||||||||||||||||
(i) | In 2014, DTE Electric began a securities lending program with a third party agent. The program allows the agent to lend certain securities from the Company's pension trusts to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with its securities lending agency agreement. | |||||||||||||||||||||||||||||||
Target allocations for pension plan assets as of December 31, 2014 are listed below: | ||||||||||||||||||||||||||||||||
U.S. Large Cap Equity Securities | 22 | % | ||||||||||||||||||||||||||||||
U.S. Small Cap and Mid Cap Equity Securities | 5 | |||||||||||||||||||||||||||||||
Non U.S. Equity Securities | 20 | |||||||||||||||||||||||||||||||
Fixed Income Securities | 25 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | 20 | |||||||||||||||||||||||||||||||
Private Equity and Other | 8 | |||||||||||||||||||||||||||||||
100 | % | |||||||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Fair Value Measurements Using Significant Unobservable Inputs (Level 3): | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Hedge Funds | Private | Hedge Funds | Private | |||||||||||||||||||||||||||||
and Similar | Equity | and Similar | Equity | |||||||||||||||||||||||||||||
Investments | and Other | Total | Investments | and Other | Total | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning Balance at January 1 | $ | 285 | $ | 122 | $ | 407 | $ | 238 | $ | 125 | 363 | |||||||||||||||||||||
Total realized/unrealized gains (losses) | 15 | 12 | 27 | 29 | 2 | 31 | ||||||||||||||||||||||||||
Purchases, sales and settlements: | ||||||||||||||||||||||||||||||||
Purchases | 16 | 22 | 38 | 18 | 15 | 33 | ||||||||||||||||||||||||||
Sales | (1 | ) | (21 | ) | (22 | ) | — | (20 | ) | (20 | ) | |||||||||||||||||||||
Ending Balance at December 31 | $ | 315 | $ | 135 | $ | 450 | $ | 285 | $ | 122 | $ | 407 | ||||||||||||||||||||
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $ | 15 | $ | 8 | $ | 23 | $ | 27 | $ | 2 | $ | 29 | ||||||||||||||||||||
Other Postretirement Benefit Plan [Member] | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Net other postretirement cost includes the following components: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 26 | $ | 35 | $ | 51 | ||||||||||||||||||||||||||
Interest cost | 68 | 67 | 91 | |||||||||||||||||||||||||||||
Expected return on plan assets | (85 | ) | (74 | ) | (61 | ) | ||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Net loss | 14 | 47 | 58 | |||||||||||||||||||||||||||||
Prior service credit | (109 | ) | (100 | ) | (14 | ) | ||||||||||||||||||||||||||
Net other postretirement cost (credit) | $ | (86 | ) | $ | (25 | ) | $ | 125 | ||||||||||||||||||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Other changes in plan assets and APBO recognized in Regulatory assets (liabilities) and Other comprehensive income | ||||||||||||||||||||||||||||||||
Net actuarial gain | $ | 144 | $ | (258 | ) | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (14 | ) | (47 | ) | ||||||||||||||||||||||||||||
Prior service credit | — | (159 | ) | |||||||||||||||||||||||||||||
Amortization of prior service credit | 109 | 100 | ||||||||||||||||||||||||||||||
Total recognized in Regulatory assets (liabilities) and Other comprehensive income | $ | 239 | $ | (364 | ) | |||||||||||||||||||||||||||
Total recognized in net periodic benefit cost, Regulatory assets (liabilities) and Other comprehensive income | $ | 153 | $ | (389 | ) | |||||||||||||||||||||||||||
Estimated amounts to be amortized from Regulatory assets (liabilities) and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 31 | $ | 15 | ||||||||||||||||||||||||||||
Prior service credit | $ | (94 | ) | $ | (109 | ) | ||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following table reconciles the obligations, assets and funded status of the plans including amounts recorded as Accrued postretirement liability - affiliates in the Consolidated Statements of Financial Position at December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation, beginning of year | $ | 1,430 | $ | 1,752 | ||||||||||||||||||||||||||||
Service cost | 26 | 35 | ||||||||||||||||||||||||||||||
Interest cost | 68 | 67 | ||||||||||||||||||||||||||||||
Plan amendments | — | (159 | ) | |||||||||||||||||||||||||||||
Actuarial (gain) loss | 100 | (200 | ) | |||||||||||||||||||||||||||||
Medicare Part D subsidy | — | 1 | ||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (66 | ) | ||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation, end of year | $ | 1,558 | $ | 1,430 | ||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Plan assets at fair value, beginning of year | $ | 1,061 | $ | 756 | ||||||||||||||||||||||||||||
Actual return on plan assets | 41 | 131 | ||||||||||||||||||||||||||||||
Company contributions | — | 239 | ||||||||||||||||||||||||||||||
Benefits paid | (64 | ) | (65 | ) | ||||||||||||||||||||||||||||
Plan assets at fair value, end of year | $ | 1,038 | $ | 1,061 | ||||||||||||||||||||||||||||
Funded status, end of year | $ | (520 | ) | $ | (369 | ) | ||||||||||||||||||||||||||
Amount recorded as: | ||||||||||||||||||||||||||||||||
Noncurrent liabilities | $ | (520 | ) | $ | (369 | ) | ||||||||||||||||||||||||||
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - "Regulatory Matters") | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 385 | $ | 255 | ||||||||||||||||||||||||||||
Prior service cost | (194 | ) | (303 | ) | ||||||||||||||||||||||||||||
$ | 191 | $ | (48 | ) | ||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | At December 31, 2014, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 77 | ||||||||||||||||||||||||||||||
2016 | 82 | |||||||||||||||||||||||||||||||
2017 | 85 | |||||||||||||||||||||||||||||||
2018 | 89 | |||||||||||||||||||||||||||||||
2019 | 93 | |||||||||||||||||||||||||||||||
2020 - 2024 | 505 | |||||||||||||||||||||||||||||||
Total | $ | 931 | ||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Assumptions used in determining the accumulated postretirement benefit obligation and net other postretirement benefit costs are listed below: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.10% | 4.95% | 4.15% | |||||||||||||||||||||||||||||
Health care trend rate pre- and post- 65 | 7.50 / 6.50% | 7.50 / 6.50% | 7.00% | |||||||||||||||||||||||||||||
Ultimate health care trend rate | 4.50% | 4.50% | 5.00% | |||||||||||||||||||||||||||||
Year in which ultimate reached pre- and post- 65 | 2025 / 2024 | 2025 / 2024 | 2021 | |||||||||||||||||||||||||||||
Other postretirement benefit costs | ||||||||||||||||||||||||||||||||
Discount rate (prior to interim remeasurement) | 4.95% | 4.15% | 5.00% | |||||||||||||||||||||||||||||
Discount rate (post interim remeasurement) | N/A | 4.30% | N/A | |||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8.00% | 8.25% | 8.25% | |||||||||||||||||||||||||||||
Health care trend rate pre- and post- 65 | 7.50 / 6.50% | 7.00% | 7.00% | |||||||||||||||||||||||||||||
Ultimate health care trend rate | 4.50% | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Year in which ultimate reached pre- and post- 65 | 2025 / 2024 | 2021 | 2020 | |||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | Target allocations for other postretirement benefit plan assets as of December 31, 2014 are listed below: | |||||||||||||||||||||||||||||||
U.S. Large Cap Equity Securities | 17 | % | ||||||||||||||||||||||||||||||
U.S. Small Cap and Mid Cap Equity Securities | 4 | |||||||||||||||||||||||||||||||
Non U.S. Equity Securities | 20 | |||||||||||||||||||||||||||||||
Fixed Income Securities | 25 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | 20 | |||||||||||||||||||||||||||||||
Private Equity and Other | 14 | |||||||||||||||||||||||||||||||
100 | % | |||||||||||||||||||||||||||||||
Fair Value Measurements for other postretirement benefit plan assets at December 31, 2014 and 2013 (a): | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | (In millions) | |||||||||||||||||||||||||||||||
Short-term investments (b) | $ | 4 | $ | — | $ | — | $ | 4 | $ | 3 | $ | — | $ | — | $ | 3 | ||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. large cap (c) | 179 | — | — | 179 | 208 | — | — | 208 | ||||||||||||||||||||||||
U.S. small/mid cap (d) | 102 | — | — | 102 | 103 | — | — | 103 | ||||||||||||||||||||||||
Non U.S. (e) | 151 | 39 | — | 190 | 197 | 5 | — | 202 | ||||||||||||||||||||||||
Fixed income securities (f) | 11 | 243 | — | 254 | 12 | 243 | — | 255 | ||||||||||||||||||||||||
Hedge funds and similar investments (g) | 73 | 31 | 114 | 218 | 91 | 17 | 111 | 219 | ||||||||||||||||||||||||
Private equity and other (h) | — | — | 91 | 91 | — | — | 71 | 71 | ||||||||||||||||||||||||
Securities lending (i) | (98 | ) | (11 | ) | — | (109 | ) | — | — | — | — | |||||||||||||||||||||
Securities lending collateral (i) | 98 | 11 | — | 109 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 520 | $ | 313 | $ | 205 | $ | 1,038 | $ | 614 | $ | 265 | $ | 182 | $ | 1,061 | ||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | For a description of levels within the fair value hierarchy see Note 9 to the Consolidated Financial Statements, "Fair Value". | |||||||||||||||||||||||||||||||
(b) | This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services. | |||||||||||||||||||||||||||||||
(c) | This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(d) | This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(e) | This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(f) | This category includes corporate bonds from diversified industries, U.S. Treasuries, bank loans and mortgage backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as Level 2 assets. | |||||||||||||||||||||||||||||||
(g) | This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutual funds, commingled and limited partnership funds and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices in actively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuations for some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing. | |||||||||||||||||||||||||||||||
(h) | This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber and private mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in this category may be based on discounted cash flow analyses, relevant publicly-traded comparables and comparable transactions. | |||||||||||||||||||||||||||||||
(i) | In 2014, DTE Electric began a securities lending program with a third party agent. The program allows the agent to lend certain securities from the Company's VEBA trust to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with its securities lending agency agreement. | |||||||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Fair Value Measurements Using Significant Unobservable Inputs (Level 3): | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Hedge Funds and Similar Investments | Private Equity and Other | Total | Hedge Funds and Similar Investments | Private Equity and Other | Total | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning Balance at January 1 | $ | 111 | $ | 71 | $ | 182 | $ | 78 | $ | 57 | $ | 135 | ||||||||||||||||||||
Total realized/unrealized gains (losses) | 5 | 6 | 11 | 10 | 7 | 17 | ||||||||||||||||||||||||||
Purchases, sales and settlements: | ||||||||||||||||||||||||||||||||
Purchases | 4 | 22 | 26 | 23 | 14 | 37 | ||||||||||||||||||||||||||
Sales | (6 | ) | (8 | ) | (14 | ) | — | (7 | ) | (7 | ) | |||||||||||||||||||||
Ending Balance at December 31 | $ | 114 | $ | 91 | $ | 205 | $ | 111 | $ | 71 | $ | 182 | ||||||||||||||||||||
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $ | 5 | $ | 5 | $ | 10 | $ | 10 | $ | 6 | $ | 16 | ||||||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Schedule of Related Party Transactions | The following is a summary of transactions with affiliated companies: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | (In millions) | |||||||||||
Energy sales | $ | 2 | $ | 2 | $ | 2 | ||||||
Other services | $ | 5 | $ | 7 | $ | 11 | ||||||
Shared capital assets | $ | 26 | $ | 23 | $ | 26 | ||||||
Costs | ||||||||||||
Fuel and purchased power | $ | 4 | $ | 4 | $ | 5 | ||||||
Other services and interest | $ | (1 | ) | $ | (1 | ) | $ | 1 | ||||
Corporate expenses (net) | $ | 304 | $ | 334 | $ | 322 | ||||||
Other | ||||||||||||
Dividends declared | $ | 370 | $ | 342 | $ | 317 | ||||||
Dividends paid | $ | 370 | $ | 342 | $ | 317 | ||||||
Capital contribution from DTE Energy | $ | 190 | $ | 400 | $ | — | ||||||
Supplementary_Quarterly_Financ1
Supplementary Quarterly Financial Information (Unaudited ) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year to Date | ||||||||||||||||
(In millions) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Operating Revenues | $ | 1,410 | $ | 1,281 | $ | 1,357 | $ | 1,234 | $ | 5,282 | ||||||||||
Operating Income | $ | 271 | $ | 259 | $ | 272 | $ | 250 | $ | 1,052 | ||||||||||
Net Income | $ | 137 | $ | 130 | $ | 136 | $ | 129 | $ | 532 | ||||||||||
2013 | ||||||||||||||||||||
Operating Revenues | $ | 1,219 | $ | 1,265 | $ | 1,457 | $ | 1,256 | $ | 5,197 | ||||||||||
Operating Income | $ | 235 | $ | 202 | $ | 338 | $ | 225 | $ | 1,000 | ||||||||||
Net Income | $ | 116 | $ | 90 | $ | 180 | $ | 101 | $ | 487 | ||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||
Summary of Valuation Allowance | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Allowance for Doubtful Accounts (shown as deduction from Accounts Receivable in the Consolidated Statements of Financial Position) | ||||||||||||
Balance at Beginning of Period | $ | 28 | $ | 35 | $ | 80 | ||||||
Additions: | ||||||||||||
Charged to costs and expenses | 50 | 52 | 40 | |||||||||
Charged to other accounts (a) | 10 | 11 | 7 | |||||||||
Deductions (b) | (59 | ) | (70 | ) | (92 | ) | ||||||
Balance at End of Period | $ | 29 | $ | 28 | $ | 35 | ||||||
_______________________________________ | ||||||||||||
(a) | Collection of accounts previously written off. | |||||||||||
(b) | Uncollectible accounts written off. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets [Abstract] | ||
Restricted cash | $96 | $100 |
Accounts receivable | 688 | 723 |
Securitized regulatory assets | 34 | 231 |
Other current and long-term assets | 182 | 149 |
Total Assets | 18,649 | 17,410 |
Liabilities [Abstract] | ||
Current portion long-term debt, including capital leases | 118 | 504 |
Current regulatory liabilities | 150 | 278 |
Securitization bonds | 0 | 105 |
Other current and long-term liabilities | 105 | 101 |
Variable Interest Entity Securitization [Member] | ||
Assets [Abstract] | ||
Restricted cash | 96 | 100 |
Accounts receivable | 26 | 34 |
Securitized regulatory assets | 34 | 231 |
Other current and long-term assets | 1 | 4 |
Total Assets | 157 | 369 |
Liabilities [Abstract] | ||
Accounts payable and accrued current liabilities | 3 | 7 |
Current portion long-term debt, including capital leases | 105 | 196 |
Current regulatory liabilities | 32 | 43 |
Securitization bonds | 0 | 105 |
Other current and long-term liabilities | 9 | 8 |
Total Liabilities | $149 | $359 |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details Textuals) (USD $) | Dec. 31, 2014 |
customers | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of electric utility customers | 2,100,000 |
Significant potential exposure to loss due to VIE long-term purchase contracts | $0 |
Significant_Accounting_Policie3
Significant Accounting Policies Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of the period | ($16) | ($22) |
Other comprehensive income before reclassifications | -12 | 4 |
Amounts reclassified from accumulated other comprehensive income | 2 | 2 |
Net current-period other comprehensive income | -10 | 6 |
End of the period | -26 | -16 |
Net Unrealized Gain/(Loss) on Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of the period | 1 | 0 |
Other comprehensive income before reclassifications | 0 | 1 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income | 0 | 1 |
End of the period | 1 | 1 |
Benefit Obligations [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of the period | -17 | -22 |
Other comprehensive income before reclassifications | -12 | 3 |
Amounts reclassified from accumulated other comprehensive income | 2 | 2 |
Net current-period other comprehensive income | -10 | 5 |
End of the period | ($27) | ($17) |
Significant_Accounting_Policie4
Significant Accounting Policies Significant Accounting Policies (Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $46 | $53 |
Intangible Assets, Current | 9 | 12 |
Finite-Lived Intangible Assets, Net | 37 | 41 |
Renewable Energy Credits [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 45 | 51 |
Emission Allowances [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $1 | $2 |
Significant_Accounting_Policie5
Significant Accounting Policies (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Receivables due date | 21 days | ||
Threshold period past due for write-off of trade accounts receivable | 150 days | ||
Unbilled revenues included in customer accounts receivable | $688,000,000 | $723,000,000 | |
Expense related to refueling outages | 16,000,000 | 26,000,000 | |
Period expenses related to refueling outages accrued | 18 months | ||
Excise sales tax net impact on the statement operations | 0 | ||
Unbilled Revenues [Member] | |||
Significant Accounting Policies [Line Items] | |||
Unbilled revenues included in customer accounts receivable | 250,000,000 | 280,000,000 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Notes receivable considered delinquent period | 60 days | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Notes receivable considered delinquent period | 120 days | ||
Parent Company [Member] | |||
Significant Accounting Policies [Line Items] | |||
Allocated share-based compensation expense | $62,000,000 | $58,000,000 | $42,000,000 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment (Summary of property by classification) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $12,589 | $11,779 |
Electric Generation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment - Generation | 11,641 | 11,127 |
Less Accumulated Depreciation and Amortization - Total | -4,149 | -4,004 |
Electric Transmission and Distribution Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment - Distribution | 8,164 | 7,603 |
Less Accumulated Depreciation and Amortization - Total | -3,067 | -2,947 |
Electric Generation, Transmission and Distribution Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment - Total | 19,805 | 18,730 |
Less Accumulated Depreciation and Amortization - Total | ($7,216) | ($6,951) |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Public Utility Property, Plant and Equipment [Line Items] | |||
AFUDC capitalized | $32 | $21 | |
Disclosure of composite depreciation rate for plants in service | 3.40% | 3.40% | 3.30% |
Public utilities, generation, useful life | 40 years | ||
Public utilities, distribution, useful life | 41 years | ||
Capitalized computer software amortization | 71 | 64 | 62 |
Capitalized computer software gross | 590 | 521 | |
Capitalized computer software accumulated amortization | 293 | 269 | |
Capital leased assets gross | 9 | 9 | |
Capital leased assets, accumulated depreciation | $5 | $1 | |
Minimum [Member] | Computer Software, Intangible Asset [Member] | |||
Public Utility Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Maximum [Member] | Computer Software, Intangible Asset [Member] | |||
Public Utility Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 15 years |
Jointly_Owned_Utility_Plant_De
Jointly Owned Utility Plant (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | MW |
Belle River [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Total plant capacity | 1,270 |
Investment (in millions) | $1,742 |
Accumulated depreciation (in millions) | 993 |
Ludington [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Total plant capacity | 1,872 |
Ownership interest | 49.00% |
Investment (in millions) | 412 |
Accumulated depreciation (in millions) | $175 |
Jointly_Owned_Utility_Plant_De1
Jointly Owned Utility Plant (Details Textuals) | Dec. 31, 2014 |
facilities | |
Jointly Owned Utility Plant Interests [Line Items] | |
Jointly owned utility plant, number of plants | 2 |
Belle River Unit 1 [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership interest | 63.00% |
Belle River Facilities used jointly by Belle River and St. Clair Power Plants [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership interest | 81.00% |
Belle River Unit 2 [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership interest | 75.00% |
Belle River [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Joint owners percentage of the total capacity energy and related responsibilities | 19.00% |
Ludington [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership interest | 49.00% |
Joint owners percentage of the total capacity energy and related responsibilities | 51.00% |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Asset retirement obligations, beginning balance | $1,667 |
Accretion | 103 |
Liabilities incurred | 9 |
Liabilities settled | -6 |
Revision in estimated cash flows | 23 |
Asset retirement obligations, ending balance | $1,796 |
Asset_Retirement_Obligations_D1
Asset Retirement Obligations (Details Textuals) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Asset Retirement Obligations [Line Items] | |
Asset retirement obligations, liability not recognized | Substations, manholes and certain other distribution assets have an indeterminate life. Therefore, no liability has been recorded for these assets |
Liabilities balance upon completion of decommissioning | $0 |
Fermi 2 [Member] | |
Asset Retirement Obligations [Line Items] | |
Nuclear decommissioning liabilities funded through surcharge and included in ARO balance | $1,700,000,000 |
Regulatory_Matters_Regulatory_
Regulatory Matters (Regulatory Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $2,959 | $2,288 |
Regulatory Assets, Current | -46 | -13 |
Regulatory Assets, Noncurrent | 2,913 | 2,275 |
Securitized Regulatory Assets, Noncurrent | 34 | 231 |
Pension Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 1,743 | 1,257 |
Postretirement Benefit Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 191 | 0 |
Asset Retirement Obligation Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 448 | 394 |
Recoverable Michigan Income Taxes [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 220 | 237 |
Other Recoverabe Income Taxes [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 66 | 71 |
Cost to Achieve Performance Excellence Process [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 46 | 64 |
Loss on Reacquired Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 44 | 38 |
Accrued PSCR Revenue [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 34 | 0 |
Recoverable Income Taxes related to Securitized Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 19 | 126 |
Unrecovered Removal Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 15 | 0 |
Transitional Recovery Mechanism | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 14 | 0 |
Other Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $119 | $101 |
Regulatory_Matters_Regulatory_1
Regulatory Matters Regulatory Matters (Regulatory Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | $395 | $664 | |
Regulatory Liability, Current | -150 | -278 | |
Regulatory Liability, Noncurrent | 245 | 386 | |
Renewable Energy [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 227 | 277 | |
Over Recovery of Securitization [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 71 | 72 | |
Refundable Revenue Decoupling/ Deferred Gain [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 63 | 127 | 127 |
Fermi 2 Refueling Outage [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 16 | 26 | |
Energy Optimization [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 14 | 25 | |
Accrued PSCR refund [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 0 | 53 | |
Refundable postretirement costs [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 0 | 48 | |
Removal Costs [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 0 | 33 | |
Other Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | $4 | $3 |
Regulatory_Matters_Details_Tex
Regulatory Matters (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Mar. 31, 2013 | Dec. 31, 2014 | Dec. 19, 2014 | Dec. 31, 2013 | Jul. 30, 2012 | Sep. 26, 2014 | Aug. 31, 2013 | Jan. 02, 2014 | Sep. 30, 2012 | |
Regulatory Assets [Line Items] | |||||||||
Amortization period of cost to achieve deferral | 10 years | ||||||||
Time period required by non-bypassable securitization bond surcharge to recover securitized regulatory asset | 14 years | ||||||||
Regulatory liabilities | $395,000,000 | $664,000,000 | |||||||
PSCR under-recovery from 1 plan year prior | 87,000,000 | ||||||||
PSCR Under-Recovery from 2 play years prior | 148,000,000 | ||||||||
Fermi 2 Production Level of Full Capacity | 68.00% | ||||||||
Maximum of challenged Fermi 2 outage charges | 32,000,000 | ||||||||
MPSC [Member] | |||||||||
Regulatory Assets [Line Items] | |||||||||
Public utilities, requested rate increase (decrease) | 370,000,000 | ||||||||
Rate increase previously authorized by the MPSC challenged by Court of Appeals reopened by the MPSC | 11,000,000 | ||||||||
Approved recovery amount for customer 360 | 215,000,000 | ||||||||
Approved amortization period for customer 360 recovery | 15 years | ||||||||
Refundable Revenue Decoupling/ Deferred Gain [Member] | |||||||||
Regulatory Assets [Line Items] | |||||||||
Regulatory liabilities | 63,000,000 | 127,000,000 | 127,000,000 | ||||||
Amortization of Deferred Gain Regulatory Liability | $10,600,000 |
Income_Taxes_Income_Tax_Expens
Income Taxes (Income Tax Expense Reconciled to Federal Income Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before income taxes | $830 | $741 | $768 |
Income tax expense at 35% statutory rate | 291 | 260 | 269 |
Production tax credits | -22 | -15 | -5 |
Investment tax credits | -5 | -5 | -6 |
Depreciation | 3 | 3 | 3 |
AFUDC - Equity | -7 | -5 | -4 |
Employee Stock Ownership Plan dividends | -3 | -2 | -3 |
Domestic production activities deduction | -2 | -18 | -16 |
State and other income taxes, net of federal benefit | 43 | 41 | 40 |
Other, net | 0 | -5 | 4 |
Income tax expense | $298 | $254 | $282 |
Effective income tax rate (as percent) | 35.90% | 34.30% | 36.70% |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefits)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax expense (benefit) | |||
Federal | ($19) | $123 | $267 |
State and other income tax | 20 | 23 | 67 |
Total current income taxes | 1 | 146 | 334 |
Deferred income tax expense (benefit) | |||
Federal | 251 | 68 | -47 |
State and other income tax | 46 | 40 | -5 |
Total deferred income taxes | 297 | 108 | -52 |
Income tax expense | $298 | $254 | $282 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets (Liabilities)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Property, plant and equipment | ($3,152) | ($2,807) |
Securitized regulatory assets | -3 | -130 |
Pension and benefits | -43 | 27 |
Deferred Tax Liabilities, Other, net | 12 | 12 |
Current deferred income tax liabilities | 2 | -91 |
Long-term deferred income tax liabilities | -3,188 | -2,807 |
Deferred Tax Assets, Net | 357 | 420 |
Deferred Tax Liabilities, Net | -3,543 | -3,318 |
Deferred income tax liabilities | ($3,186) | ($2,898) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, beginning balance | $4 | $4 | $59 |
Reductions for tax positions of prior years | 0 | 0 | -3 |
Settlements | 0 | 0 | -52 |
Unrecognized Tax Benefits, ending balance | $4 | $4 | $4 |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Related party tax expense due from affiliates | $29,000,000 | $23,000,000 | |
Unrecognized tax benefits that would impact effect tax rate | 2,000,000 | 2,000,000 | |
Interest and income taxes accrued | 1,000,000 | 1,000,000 | |
Income tax penalties accrued | 0 | ||
Interest on income taxes expense | ($3,000,000) |
Fair_Value_Assets_and_Liabilit
Fair Value (Assets and Liabilites Recorded at Fair Value on a Recurring Basis) (Details) (Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $104 | $116 |
Nuclear decommissioning trusts | 1,241 | 1,191 |
Other investments | 147 | 135 |
Assets, Fair Value Disclosure | 1,495 | 1,445 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5 | 2 |
Nuclear decommissioning trusts | 792 | 779 |
Other investments | 97 | 91 |
Assets, Fair Value Disclosure | 894 | 872 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 99 | 114 |
Nuclear decommissioning trusts | 449 | 412 |
Other investments | 50 | 44 |
Assets, Fair Value Disclosure | 598 | 570 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Nuclear decommissioning trusts | 0 | 0 |
Other investments | 0 | 0 |
Assets, Fair Value Disclosure | 3 | 3 |
Current Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 107 | 119 |
Current Asset [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 5 | 2 |
Current Asset [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 99 | 114 |
Current Asset [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 3 | 3 |
Noncurrent Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,388 | 1,326 |
Noncurrent Asset [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 889 | 870 |
Noncurrent Asset [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 499 | 456 |
Noncurrent Asset [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial Transmission Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets - FTRs | 3 | 3 |
Financial Transmission Rights [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets - FTRs | 0 | 0 |
Financial Transmission Rights [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets - FTRs | 0 | 0 |
Financial Transmission Rights [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets - FTRs | $3 | $3 |
Fair_Value_Reconciliation_of_L
Fair Value (Reconciliation of Level 3 Assets and Liabilities at Fair Value on a Recurring Basis) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Beginning Balance | $3 | $1 |
Change in fair value recorded in regulatory assets/liabilities | 8 | 5 |
Settlements | -8 | -3 |
Ending Balance | 3 | 3 |
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to regulatory assets and liabilities held at the end of the period | $3 | $2 |
Fair_Value_Fair_Value_of_Finan
Fair Value (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | $12 | $10 |
Short-term borrowings, fair value | 50 | 0 |
Long-term debt, excluding capital leases, fair value | 5,259 | 5,146 |
Reported Value Measurement [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 8 | 200 |
Short-term borrowings, fair value | 84 | 58 |
Estimate of Fair Value Measurement [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 0 | 0 |
Short-term borrowings, fair value | 0 | 0 |
Long-term debt, excluding capital leases, fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 1 [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 0 | 0 |
Short-term borrowings, fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 0 | 0 |
Short-term borrowings, fair value | 50 | 0 |
Long-term debt, excluding capital leases, fair value | 5,341 | 5,253 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 0 | 0 |
Short-term borrowings, fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 12 | 10 |
Short-term borrowings, fair value | 0 | 0 |
Long-term debt, excluding capital leases, fair value | 496 | 136 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, excluding capital leases, fair value | 8 | 200 |
Short-term borrowings, fair value | $84 | $58 |
Fair_Value_Fair_Value_of_Nucle
Fair Value (Fair Value of Nuclear Decommissioning Trust Fund Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Decommissioning Fund Investments | $1,241 | $1,191 |
Nuclear Decommissioning Trust Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Decommissioning Fund Investments | 1,241 | 1,191 |
Fermi 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Decommissioning Fund Investments | 1,221 | 1,172 |
Fermi 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Decommissioning Fund Investments | 3 | 3 |
Low level radioactive waste [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Decommissioning Fund Investments | $17 | $16 |
Fair_Value_Gains_and_Losses_an
Fair Value (Gains and Losses and Proceeds from the Sale of Securities by the Nuclear Decommissioning Trust Funds) (Details) (Nuclear Decommissioning Trust Fund [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Nuclear Decommissioning Trust Fund [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Realized gains | $54 | $83 | $37 |
Realized losses | -33 | -41 | -31 |
Proceeds from sales of securities | $1,146 | $1,118 | $759 |
Fair_Value_Fair_Value_and_Unre
Fair Value (Fair Value and Unrealized Gains for the Nuclear Decommissioning Trust Funds) (Details) (Nuclear Decommissioning Trust Fund [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Nuclear Decommissioning Trust Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities | $756 | $730 |
Equity Securities, Gross Unrealized Gain | 204 | 201 |
Equity Securities, Gross Unrealized Loss | -39 | -25 |
Debt securities | 474 | 442 |
Debt Securities Gross Unrealized Gain | 21 | 12 |
Debt Securities, Gross Unrealized Loss | -2 | -6 |
Cash and cash equivalents | 11 | 19 |
Nuclear decommissioning trusts | 1,241 | 1,191 |
Gross Unrealized Gains | 225 | 213 |
Gross Unrealized Loss | ($41) | ($31) |
Fair_Value_Details_Textuals
Fair Value (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Transfers between levels 1, 2, and 3 | $0 | $0 | |
Unrealized Losses on Available for Sale Securities | 2,000,000 | 2,000,000 | |
Trading securities realized gain (loss) | 12,000,000 | 19,000,000 | 9,000,000 |
Net Unrealized Gain/(Loss) on Investments [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Unrealized Losses on Available for Sale Securities | 0 | 0 | |
Equity Securities [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Nuclear decommissioning trust fund investments | 61.00% | 61.00% | |
Debt Securities [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Nuclear decommissioning trust fund investments | 38.00% | 37.00% | |
Cash and Cash Equivalents [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Nuclear decommissioning trust fund investments | 1.00% | 2.00% | |
Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Cash and cash equivalents | 104,000,000 | 116,000,000 | |
Restricted Assets [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Cash and cash equivalents | 96,000,000 | 100,000,000 | |
Other Investments [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Cash and cash equivalents | 8,000,000 | 16,000,000 | |
Other Investments [Member] | Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Available-for-sale securities | 8,000,000 | 7,000,000 | |
Nuclear Decommissioning Trust Fund [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Cash and cash equivalents | $11,000,000 | $19,000,000 | |
Average maturity of debt securities | 7 years | 7 years |
Financial_and_Other_Derivative2
Financial and Other Derivative Instruments (Fair Value of Derivative Instruments) (Details) (Not Designated as Hedging Instrument [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $3 | $3 |
Financial Transmission Rights [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $3 | $3 |
LongTerm_Debt_Long_Term_Debt_O
Long-Term Debt (Long Term Debt Outstanding and Weighted Average Interest Rates) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long-term debt | $5,270 | |
Long Term Debt excluding Securitization, Debentures and Capital Leases | 5,154 | 4,844 |
Less amount of long-term debt due within one year | -10 | -304 |
Long-term Debt, Excluding Current Maturities | 5,144 | 4,540 |
Securitization bonds | 105 | 302 |
Less amount of Securitization Bonds due within one year | -105 | -197 |
Securitization bonds | 0 | 105 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 4.50% | |
Debt Instrument, Maturity Date Range, Start | 31-Mar-16 | |
Debt Instrument, Maturity Date Range, End | 1-Jun-44 | |
Long-term debt | 4,824 | 4,286 |
Tax Exempt Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 5.20% | |
Debt Instrument, Maturity Date Range, Start | 1-Jul-20 | |
Debt Instrument, Maturity Date Range, End | 1-Dec-30 | |
Long-term debt | $330 | $558 |
Securitization Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 6.60% | |
Debt Instrument, Maturity Date | 15-Mar-15 |
LongTerm_Debt_Debt_Issuances_D
Long-Term Debt (Debt Issuances) (Details) (USD $) | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Debt face amount | $950,000,000 |
June 2014 3.77% Mortgage Bonds Maturing in 2026 [Member] | Mortgages [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.77% |
Debt face amount | 100,000,000 |
June 2014 4.60% Mortgage Bonds Maturing in 2044 [Member] | Mortgages [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.60% |
Debt face amount | 150,000,000 |
July 2014 3.375% Mortgage Bonds Maturing in 2025 [Member] | Mortgages [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.38% |
Debt face amount | 350,000,000 |
July 2014 4.30% Mortgage Bonds Maturing in 2044 [Member] | Mortgages [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.30% |
Debt face amount | $350,000,000 |
LongTerm_Debt_Debt_Redemptions
Long-Term Debt (Debt Redemptions) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument, Redemption [Line Items] | |
Extinguishment of debt | $837 |
Mortgages [Member] | March 2014 Mortgage Bonds Various Interest Rates Maturing in 2014 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Extinguishment of debt | 13 |
Securitization Bonds [Member] | March 2014 Securitization Bonds 6.62% Maturing in 2014 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 6.62% |
Extinguishment of debt | 100 |
Securitization Bonds [Member] | September 2014 Securitization Bonds 6.62% Maturing in 2014 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 6.62% |
Extinguishment of debt | 96 |
Tax Exempt Revenue Bonds [Member] | April 2014 Tax Exempt Revenue Bonds 2.35% Maturing in 2024 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 2.35% |
Extinguishment of debt | 31 |
Tax Exempt Revenue Bonds [Member] | April 2014 Tax Exempt Revenue Bonds 4.65% Maturing in 2028 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 4.65% |
Extinguishment of debt | 32 |
Tax Exempt Revenue Bonds [Member] | June 2014 Tax Exempt Revenue Bonds 4.875% Maturing in 2029 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 4.88% |
Extinguishment of debt | 36 |
Tax Exempt Revenue Bonds [Member] | June 2014 Tax Exempt Revenue Bonds 6.00% Maturing in 2036 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 6.00% |
Extinguishment of debt | 69 |
Tax Exempt Revenue Bonds [Member] | August 2014 Tax Exempt Revenue Bonds 5.25% Maturing in 2029 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 5.25% |
Extinguishment of debt | 60 |
Senior Notes [Member] | July 2014 Senior Notes 4.80% Maturing in 2015 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 4.80% |
Extinguishment of debt | 200 |
Senior Notes [Member] | August 2014 Senior Notes 5.40% Maturing in 2014 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument stated interest rate | 5.40% |
Extinguishment of debt | $200 |
LongTerm_Debt_Scheduled_Debt_M
Long-Term Debt (Scheduled Debt Maturities) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $115 |
2016 | 151 |
2017 | 0 |
2018 | 300 |
2019 | 0 |
2020 and Thereafter | 4,704 |
Long-term Debt | $5,270 |
Preferred_and_Preference_Secur1
Preferred and Preference Securities (Details Textuals) (USD $) | Dec. 31, 2014 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred stock, shares authorized (in shares) | 6,750,000 |
Preferred stock, par value (in dollars per share) | $100 |
Preference stock, shares authorized (in shares) | 30,000,000 |
Preference stock, par value (in dollars per share) | $1 |
Preferred stock, shares issued (in shares) | 0 |
ShortTerm_Credit_Arrangements_1
Short-Term Credit Arrangements and Borrowings (Details Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
Long-term Commercial Paper, Current | $50,000,000 | $0 |
Ratio of Indebtedness to Net Capital | 0.51 | |
Short-term Debt, Weighted Average Interest Rate | 0.50% | 0.00% |
Unsecured revolving credit facility expiring April 2018 [Member] | Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $300,000,000 | |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Ratio of Indebtedness to Net Capital | 0.65 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $28 |
2016 | 22 |
2017 | 18 |
2018 | 15 |
2019 | 10 |
Thereafter | 40 |
Total minimum lease payments | $133 |
Operating_Leases_Details_Textu
Operating Leases (Details Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rent expense | $26 | $28 | $29 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Purchase Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2015 | $496 |
2016 | 330 |
2017 | 278 |
2018 | 125 |
2019 | 106 |
2020 and thereafter | 1,063 |
Total Purchase Obligations | $2,398 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textuals) (USD $) | 0 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
31-May-14 | 15-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
kWh | kWh | facilities | |||
facilities | dte_instances | ||||
dte_instances | |||||
Other Commitments [Line Items] | |||||
Environmental Capital Expenditures Through Current Year | $2,200,000,000 | ||||
Estimated capital expenditures in next fiscal year | 100,000,000 | ||||
Environmental Capital Expenditures In Future Years | 30,000,000 | ||||
EPA is Alleging Power Plants Violated New Source Performance Standards | 5 | 5 | |||
Number of NOVs/FOVs currently being discussed with the EPA | 2 | 2 | |||
EPA Sulfur Dioxide Ambient Air Quality Standard | 1 hour | ||||
Time period to complete studies on cooling water intake structures impacts on fish - EPA ruling | 3 years | ||||
Number of Former MGP Sites | 3 | ||||
Accrual for environmental remediation related to sites | 10,000,000 | 10,000,000 | 8,000,000 | ||
Number of Permitted Engineered Ash Storage Facilities Owned | 3 | ||||
Waiting Period of Policy | 84 days | ||||
Insurance Coverage for Extra Expense When to Necessitate Power Plant when Unavailable | 490,000,000 | ||||
Period of Coverage of Policy for Extra Expenses | P3Y | ||||
Primary Coverage | 1,500,000,000 | ||||
Coverage for Stabilization Decontamination Debris Removal Repair and Replacement of Property and Decommissioning | 1,250,000,000 | ||||
Combined Coverage Limit for Total Property Damage | 2,750,000,000 | ||||
Insurance Deductible for Nuclear Power Plant | 1,000,000 | 1,000,000 | |||
Total Limit for Property Damage for Non-Nuclear Event | 2,000,000,000 | 2,000,000,000 | |||
Limit of Coverage for Aggreagate Extra Expenses for Non-Nuclear Events | 328,000,000 | ||||
Limit for Property Damage for Non-Nuclear Events Aggregate of Extra Expenses of Period | 2 years | ||||
NEIL Policies Against Terroism Loss | 3,200,000,000 | ||||
Amount per Event Loss Associated with Nuclear Power Plants | 35,000,000 | ||||
Maintenance of Public Liability Insurance for Nuclear Power Plants | 375,000,000 | ||||
Aggregate Limit of Liabilities Arises From Terroist Act Outside Scope of Trials Subject to One Industry | 300,000,000 | ||||
Deferred premium charges levied against each licensed nuclear facility | 127,000,000 | ||||
Limit Deferred Premium Charges Per Year | 19,000,000 | ||||
Company Obligated to Pay DOE Fee of Fermi 2 Electricity Generated and Sold1 | 1 | ||||
New DOE fee for nuclear waste | 0 | ||||
Total Purchase Obligations | 2,398,000,000 | 2,398,000,000 | |||
estimated future capital expenditures for next year | $1,900,000,000 | ||||
Represented Employees [Member] | |||||
Other Commitments [Line Items] | |||||
Number of Represented Employees | 2,600 | 2,600 |
Retirement_Benefits_and_Truste2
Retirement Benefits and Trusteed Assets (Pension Plan - Pension Cost Inclusions) (Details) (Pension Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $64 | $73 | $64 |
Interest cost | 162 | 146 | 155 |
Expected return on plan assets | -194 | -184 | -166 |
Amortization of net loss | 110 | 148 | 124 |
Amortization of prior service cost (credit) | 2 | 1 | 1 |
Settlements | 0 | 0 | 2 |
Net pension cost | $144 | $184 | $180 |
Retirement_Benefits_and_Truste3
Retirement Benefits and Trusteed Assets (Pension Plan - Other Changes in Plan Assets and Benefit Obligations recognized in Reg Assets and OCI) (Details) (Pension Plan [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan [Member] | ||
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income | ||
Net actuarial (gain) loss | $614 | ($418) |
Amortization of net actuarial loss | -110 | -148 |
Prior service cost | -2 | 0 |
Amortization of prior service cost | -2 | -1 |
Total recognized in Regulatory assets and Other comprehensive income | 500 | -567 |
Total recognized in net periodic pension cost, Regulatory assets and Other comprehensive income | 644 | -383 |
Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||
Net actuarial loss | 149 | 106 |
Prior service cost | $1 | $1 |
Retirement_Benefits_and_Truste4
Retirement Benefits and Trusteed Assets (Pension Plan - Reconciliation of Obligations, Assets and Funded Status of Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in projected benefit obligation | |||
Plan amendments | ($2) | $0 | |
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - Regulatory Matters) | |||
Regulatory Assets | 2,959 | 2,288 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Accumulated benefit obligation, end of year | 3,712 | 3,111 | |
Change in projected benefit obligation | |||
Projected benefit obligation, beginning of year | 3,341 | 3,585 | |
Service cost | 64 | 73 | 64 |
Interest cost | 162 | 146 | 155 |
Actuarial (gain) loss | 634 | -286 | |
Benefits paid | -181 | -177 | |
Projected benefit obligation, end of year | 4,018 | 3,341 | 3,585 |
Change in plan assets | |||
Plan assets at fair value, beginning of year | 2,632 | 2,211 | |
Actual return on plan assets | 212 | 316 | |
Company contributions | 149 | 282 | |
Benefits paid | -181 | -177 | |
Plan assets at fair value, end of year | 2,812 | 2,632 | 2,211 |
Funded status of the plan | -1,206 | -709 | |
Amount recorded as: | |||
Current liabilities | -6 | -4 | |
Noncurrent liabilities | -1,200 | -705 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -1,206 | -709 | |
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - Regulatory Matters) | |||
Net actuarial loss | 1,738 | 1,248 | |
Prior service cost | 5 | 9 | |
Regulatory Assets | $1,743 | $1,257 |
Retirement_Benefits_and_Truste5
Retirement Benefits and Trusteed Assets (Pension Plan - Benefits related to Qualified and Nonqualified Pension Plans Expected to be paid in the Next Ten Years) (Details) (Pension Plan [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $210 |
2016 | 216 |
2017 | 223 |
2018 | 233 |
2019 | 239 |
2020 - 2024 | 1,264 |
Total Defined Benefit Pension Plan Expected Future Payments | $2,385 |
Retirement_Benefits_and_Truste6
Retirement Benefits and Trusteed Assets (Pension Plan - Assumptions used in Determining the PBO and Net Pension Costs) (Details) (Pension Plan [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan [Member] | |||
Projected benefit obligation | |||
Discount rate | 4.12% | 4.95% | 4.15% |
Rate of compensation increase | 4.65% | 4.20% | 4.20% |
Net pension costs | |||
Discount rate | 4.95% | 4.15% | 5.00% |
Rate of compensation increase | 4.20% | 4.20% | 4.20% |
Expected long-term rate of return on plan assets | 7.75% | 8.25% | 8.25% |
Retirement_Benefits_and_Truste7
Retirement Benefits and Trusteed Assets (Pension Plan - Target Allocations of Plan Assets) (Details) (Pension Plan [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 100.00% |
US Large Cap Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 22.00% |
US Small Cap and Mid Cap Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 5.00% |
Non US Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 20.00% |
Fixed Income Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 25.00% |
Hedge Funds and Similar Investments [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 20.00% |
Private Equity and Other [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations for pension plan assets | 8.00% |
Retirement_Benefits_and_Truste8
Retirement Benefits and Trusteed Assets (Pension Plan - Fair Value Measurements) (Details) (Pension Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $2,812 | $2,632 | $2,211 |
Short-term Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 33 | 15 | |
US Large Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 638 | 639 | |
US Small Cap and Mid Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 162 | 160 | |
Non US Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 535 | 534 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 763 | 634 | |
Hedge Funds and Similar Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 546 | 528 | |
Private Equity and Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 135 | 122 | |
Securities Lending [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -172 | 0 | |
Securities Lending Collateral [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 172 | 0 | |
Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,379 | 1,458 | |
Level 1 [Member] | Short-term Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 33 | 15 | |
Level 1 [Member] | US Large Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 638 | 639 | |
Level 1 [Member] | US Small Cap and Mid Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 162 | 160 | |
Level 1 [Member] | Non US Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 378 | 440 | |
Level 1 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 11 | |
Level 1 [Member] | Hedge Funds and Similar Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 163 | 193 | |
Level 1 [Member] | Private Equity and Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 1 [Member] | Securities Lending [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -136 | 0 | |
Level 1 [Member] | Securities Lending Collateral [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 136 | 0 | |
Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 983 | 767 | |
Level 2 [Member] | Short-term Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 2 [Member] | US Large Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 2 [Member] | US Small Cap and Mid Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 2 [Member] | Non US Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 157 | 94 | |
Level 2 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 758 | 623 | |
Level 2 [Member] | Hedge Funds and Similar Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 68 | 50 | |
Level 2 [Member] | Private Equity and Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 2 [Member] | Securities Lending [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -36 | 0 | |
Level 2 [Member] | Securities Lending Collateral [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 36 | 0 | |
Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 450 | 407 | 363 |
Level 3 [Member] | Short-term Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | US Large Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | US Small Cap and Mid Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | Non US Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | Hedge Funds and Similar Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 315 | 285 | 238 |
Level 3 [Member] | Private Equity and Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 135 | 122 | 125 |
Level 3 [Member] | Securities Lending [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Level 3 [Member] | Securities Lending Collateral [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $0 | $0 |
Retirement_Benefits_and_Truste9
Retirement Benefits and Trusteed Assets (Pension Plan - Fair Value Measurement using Level 3 Inputs) (Details) (Pension Plan [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in plan assets | ||
Plan assets at fair value, beginning of year | $2,632 | $2,211 |
Actual return on plan assets | 212 | 316 |
Plan assets at fair value, end of year | 2,812 | 2,632 |
Hedge Funds and Similar Investments [Member] | ||
Change in plan assets | ||
Plan assets at fair value, end of year | 546 | 528 |
Private Equity and Other [Member] | ||
Change in plan assets | ||
Plan assets at fair value, end of year | 135 | 122 |
Level 3 [Member] | ||
Change in plan assets | ||
Plan assets at fair value, beginning of year | 407 | 363 |
Actual return on plan assets | 27 | 31 |
Purchases | 38 | 33 |
Sales | -22 | -20 |
Plan assets at fair value, end of year | 450 | 407 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | 23 | 29 |
Level 3 [Member] | Hedge Funds and Similar Investments [Member] | ||
Change in plan assets | ||
Plan assets at fair value, beginning of year | 285 | 238 |
Actual return on plan assets | 15 | 29 |
Purchases | 16 | 18 |
Sales | -1 | 0 |
Plan assets at fair value, end of year | 315 | 285 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | 15 | 27 |
Level 3 [Member] | Private Equity and Other [Member] | ||
Change in plan assets | ||
Plan assets at fair value, beginning of year | 122 | 125 |
Actual return on plan assets | 12 | 2 |
Purchases | 22 | 15 |
Sales | -21 | -20 |
Plan assets at fair value, end of year | 135 | 122 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $8 | $2 |
Recovered_Sheet1
Retirement Benefits and Trusteed Assets (OPEB - Postretirement Cost Inclusions) (Details) (Other Postretirement Benefit Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $26 | $35 | $51 |
Interest cost | 68 | 67 | 91 |
Expected return on plan assets | -85 | -74 | -61 |
Amortization of net loss | 14 | 47 | 58 |
Amortization of prior service cost (credit) | -109 | -100 | -14 |
Net pension cost | ($86) | ($25) | $125 |
Recovered_Sheet2
Retirement Benefits and Trusteed Assets (OPEB - Other Changes in Plan Assets and APBO Recognized in Regulatory Assets and OCI) (Details) (Other Postretirement Benefit Plan [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Postretirement Benefit Plan [Member] | ||
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income | ||
Net actuarial (gain) loss | $144 | ($258) |
Amortization of net actuarial loss | -14 | -47 |
Prior service cost | 0 | -159 |
Amortization of prior service cost | 109 | 100 |
Total recognized in Regulatory assets and Other comprehensive income | 239 | -364 |
Total recognized in net periodic pension cost, Regulatory assets and Other comprehensive income | 153 | -389 |
Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income into net periodic benefit cost during next fiscal year | ||
Net actuarial loss | 31 | 15 |
Prior service cost | ($94) | ($109) |
Recovered_Sheet3
Retirement Benefits and Trusteed Assets (OPEB - Reconciliation of Obligations, Assets and Funded Status of Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in projected benefit obligation | |||
Plan amendments | ($2) | $0 | |
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - Regulatory Matters) | |||
Regulatory Liabilities | -395 | -664 | |
Other Postretirement Benefit Plan [Member] | |||
Change in projected benefit obligation | |||
Projected benefit obligation, beginning of year | 1,430 | 1,752 | |
Service cost | 26 | 35 | 51 |
Interest cost | 68 | 67 | 91 |
Plan amendments | 0 | -159 | |
Actuarial (gain) loss | 100 | -200 | |
Medicare Part D subsidy | 0 | 1 | |
Benefits paid | -66 | -66 | |
Projected benefit obligation, end of year | 1,558 | 1,430 | 1,752 |
Change in plan assets | |||
Plan assets at fair value, beginning of year | 1,061 | 756 | |
Actual return on plan assets | 41 | 131 | |
Company contributions | 0 | 239 | |
Benefits paid | -64 | -65 | |
Plan assets at fair value, end of year | 1,038 | 1,061 | 756 |
Funded status of the plan | -520 | -369 | |
Amount recorded as: | |||
Noncurrent liabilities | -520 | -369 | |
Amounts recognized in Regulatory assets (liabilities) (see Note 7 - Regulatory Matters) | |||
Net actuarial loss | 385 | 255 | |
Prior service cost | -194 | -303 | |
Regulatory Liabilities | $191 | ($48) |
Recovered_Sheet4
Retirement Benefits and Trusteed Assets Retirement Benefits and Trusteed Assets (OPEB - Future Payments) (Details) (Other Postretirement Benefit Plan [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $77 |
2016 | 82 |
2017 | 85 |
2018 | 89 |
2019 | 93 |
2020 - 2024 | 505 |
Total Expected Future Benefit Payments | $931 |
Recovered_Sheet5
Retirement Benefits and Trusteed Assets Retirement Benefits and Trusteed Assets (OPEB - Assumptions Used) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate | 4.30% | 4.95% | 4.10% | 4.95% | 4.15% |
Health care trend rate pre 65 | 7.50% | 7.50% | |||
Health care trend rate post 65 | 6.50% | 6.50% | |||
Health care trend rate | 7.00% | 7.00% | |||
Ultimate health care trend rate | 4.50% | 5.00% | |||
Year in which ultimate reached pre 65 | 2025 | 2025 | |||
Year in which ultimate reached post 65 | 2024 | 2024 | |||
Year in which ultimate reached pre- and post- 65 | 2021 | ||||
Discount rate | 4.15% | 4.30% | 4.95% | 5.00% | |
Expected long-term rate of return on plan assets | 8.00% | 8.25% | 8.25% | ||
Health care trend rate pre 65 | 7.50% | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | $0 | $0 | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | |||
Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate | 4.95% | 4.12% | 4.95% | 4.15% | |
Discount rate | 4.95% | 4.15% | 5.00% | ||
Expected long-term rate of return on plan assets | 7.75% | 8.25% | 8.25% | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 0 | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | $0 | $0 | |||
Accumulated postretirement obligation [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Ultimate health care trend rate | 4.50% | ||||
Other postretirement benefit costs [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Ultimate health care trend rate | 4.50% | 5.00% | 5.00% | ||
Year in which ultimate reached pre 65 | 2025 | ||||
Year in which ultimate reached pre- and post- 65 | 2021 | 2021 | 2020 | ||
Health care trend rate post 65 | 6.50% |
Recovered_Sheet6
Retirement Benefits and Trusteed Assets (OPEB - Target Allocations of Plan Assets) (Details) (Other Postretirement Benefit Plan [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 1 |
US Large Cap Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.17 |
US Small Cap and Mid Cap Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.04 |
Non US Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.2 |
Fixed Income Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.25 |
Hedge Funds and Similar Investments [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.2 |
Private Equity and Other [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Allocation Percentage of Assets | 0.14 |
Recovered_Sheet7
Retirement Benefits and Trusteed Assets (OPEB - Fair Value Measurements) (Details) (Other Postretirement Benefit Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $1,038 | $1,061 | $756 |
Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 520 | 614 | |
Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 313 | 265 | |
Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 205 | 182 | 135 |
Short-term Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 3 | |
Short-term Investments [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 3 | |
Short-term Investments [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Short-term Investments [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
US Large Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 179 | 208 | |
US Large Cap Equity Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 179 | 208 | |
US Large Cap Equity Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
US Large Cap Equity Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
US Small Cap and Mid Cap Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 102 | 103 | |
US Small Cap and Mid Cap Equity Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 102 | 103 | |
US Small Cap and Mid Cap Equity Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
US Small Cap and Mid Cap Equity Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Non US Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 190 | 202 | |
Non US Equity Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 151 | 197 | |
Non US Equity Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 39 | 5 | |
Non US Equity Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 254 | 255 | |
Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 11 | 12 | |
Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 243 | 243 | |
Fixed Income Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Hedge Funds and Similar Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 218 | 219 | |
Hedge Funds and Similar Investments [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 73 | 91 | |
Hedge Funds and Similar Investments [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 31 | 17 | |
Hedge Funds and Similar Investments [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 114 | 111 | 78 |
Private Equity and Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 91 | 71 | |
Private Equity and Other [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Private Equity and Other [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Private Equity and Other [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 91 | 71 | 57 |
Securities Lending [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -109 | 0 | |
Securities Lending [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -98 | 0 | |
Securities Lending [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | -11 | 0 | |
Securities Lending [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Securities Lending Collateral [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 109 | 0 | |
Securities Lending Collateral [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 98 | 0 | |
Securities Lending Collateral [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 11 | 0 | |
Securities Lending Collateral [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $0 | $0 |
Recovered_Sheet8
Retirement Benefits and Trusteed Assets (OPEB - Fair Value Measurements using Level 3 Inputs) (Details) (Other Postretirement Benefit Plan [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, beginning of year | $1,061 | $756 |
Actual return on plan assets | 41 | 131 |
Plan assets at fair value, end of year | 1,038 | 1,061 |
Hedge Funds and Similar Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, end of year | 218 | 219 |
Private Equity and Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, end of year | 91 | 71 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, beginning of year | 182 | 135 |
Actual return on plan assets | 11 | 17 |
Purchases | 26 | 37 |
Sales | -14 | -7 |
Plan assets at fair value, end of year | 205 | 182 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | 10 | 16 |
Level 3 [Member] | Hedge Funds and Similar Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, beginning of year | 111 | 78 |
Actual return on plan assets | 5 | 10 |
Purchases | 4 | 23 |
Sales | -6 | 0 |
Plan assets at fair value, end of year | 114 | 111 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | 5 | 10 |
Level 3 [Member] | Private Equity and Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets at fair value, beginning of year | 71 | 57 |
Actual return on plan assets | 6 | 7 |
Purchases | 22 | 14 |
Sales | -8 | -7 |
Plan assets at fair value, end of year | 91 | 71 |
The amount of total gains for the period attributable to the change in unrealized gains or losses related to assets still held at the end of the period | $5 | $6 |
Recovered_Sheet9
Retirement Benefits and Trusteed Assets (Details Textuals) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, cost recognized (less than $1 million in 2012) | $24,000,000 | $21,000,000 | $19,000,000 | |
Retiree Health Care Allowance will increase at lower of the rate of medical inflation or a set percentage | 2.00% | |||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions | 145,000,000 | |||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions | 149,000,000 | 282,000,000 | ||
Defined Benefit Plan, Expected Return on Plan Assets | 7.75% | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | ||
Discount rate | 4.12% | 4.95% | 4.15% | |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions | 0 | 239,000,000 | ||
Defined Benefit Plan, Expected Return on Plan Assets | 8.00% | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | ||
Annual allocation to Retiree Reimbursement Account Per Participant, Retired on or before January 1, 2013 | 3,570 | 3,500 | ||
Annual allocation to Retiree Reimbursement Account Per Participant, Retired after January 1, 2013 | 3,315 | 3,250 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 5,000,000 | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 89,000,000 | |||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 4,000,000 | |||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | 77,000,000 | |||
Discount rate | 4.10% | 4.95% | 4.15% | 4.30% |
Retirement Savings Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions to employee savings plan | 4.00% | |||
Maximum [Member] | Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 145,000,000 | |||
Maximum [Member] | Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 175,000,000 | |||
Retiree Healthcare Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, cost recognized (less than $1 million in 2012) | $2,000,000 | $1,000,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues [Abstract] | |||
Other services | $5 | $7 | $11 |
Other [Abstract] | |||
Dividends declared | 370 | 342 | 317 |
Dividends paid | 370 | 342 | 317 |
Capital Contribution from DTE Energy | 190 | 400 | |
DTE Energy [Member] | |||
Other [Abstract] | |||
Dividends declared | 370 | 342 | 317 |
Dividends paid | 370 | 342 | 317 |
Capital Contribution from DTE Energy | 190 | 400 | 0 |
Energy Sales [Member] | |||
Revenues [Abstract] | |||
Revenue from Related Parties | 2 | 2 | 2 |
Shared Capital Assets [Member] | |||
Revenues [Abstract] | |||
Revenue from Related Parties | 26 | 23 | 26 |
Fuel and Power Purchases [Member] | |||
Costs and Expenses [Abstract] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 4 | 4 | 5 |
Other Services and Interest [Member] | |||
Costs and Expenses [Abstract] | |||
Related Party Transaction, Expenses from Transactions with Related Party | -1 | -1 | 1 |
Corporate Expenses, Net [Member] | |||
Costs and Expenses [Abstract] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $304 | $334 | $322 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textuals) (DTE Energy Foundation [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
DTE Energy Foundation [Member] | |||
Related Party Transaction [Line Items] | |||
Charitable Contributions to a Foundation | $0 | $18,000,000 | $0 |
Supplementary_Quarterly_Financ2
Supplementary Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating Revenues | $1,234 | $1,357 | $1,281 | $1,410 | $1,256 | $1,457 | $1,265 | $1,219 | $5,282 | $5,197 | $5,291 |
Operating Income (Loss) | 250 | 272 | 259 | 271 | 225 | 338 | 202 | 235 | 1,052 | 1,000 | 1,028 |
Net Income | $129 | $136 | $130 | $137 | $101 | $180 | $90 | $116 | $532 | $487 | $486 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 21, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Payments to acquire business | $240 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $28 | $35 | $80 |
Charged to cost and expenses | 50 | 52 | 40 |
Charged to other accounts | 10 | 11 | 7 |
Deductions | -59 | -70 | -92 |
Balance at End of Period | $29 | $28 | $35 |