10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended March 31, 2014

Commission file number 1-2198

The DTE Electric Company meets the conditions set forth in GeneralInstruction H (1) (a) and (b) of Form 10-Q and is, therefore, filing this Formwith the reduced disclosure format.

DTE ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

Michigan	38-0478650
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
One Energy Plaza, Detroit, Michigan	48226-1279
(Address of principal executive offices)	(Zip Code)

313-235-4000

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o	Non-acceleratedfiler x	Smaller reportingcompany o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

All of the registrant's 138,632,324 outstanding shares of common stock are owned by DTE Energy Company.

DTE Electric Company

Quarterly Report on Form 10-Q

Quarter Ended March 31, 2014

TABLE OF CONTENTS

	Page
Definitions	1
Forward-Looking Statements	2
Part I - FINANCIAL INFORMATION
Items 1. Financial Statements	3
Consolidated Statements of Operations (Unaudited)	3
Consolidated Statements of Comprehensive Income (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	5
Consolidated Statements of Financial Position (Unaudited)	6
Consolidated Statements of Changes in Shareholder's Equity (Unaudited)	8
Notes to Consolidated Financial Statements (Unaudited)	9
Item 2. Management's Narrative Analysis of Results of Operations	23
Item 4. Controls and Procedures	25
Part II - OTHER INFORMATION
Item 1. Legal Proceedings	26
Item 1A. Risk Factors	27
Item 6. Exhibits	27
SIGNATURE	28
EX-12-49
EX-31-89
EX-31-90
EX-32-89
EX-32-90
EX-101.INS XBRL Instance Document
EX-101.SCH XBRL Taxonomy Extension Schema
EX-101.CAL XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF XBRL Taxonomy Extension Definition Database
EX-101.LAB XBRL Taxonomy Extension Label Linkbase
EX-101.PRE XBRL Taxonomy Extension Presentation Linkbase

DEFINITIONS

Company	DTE Electric Company and any subsidiary companies
Customer Choice	Michigan legislation giving customers the option to choose alternative suppliers for electricity.
DTE Electric	DTE Electric Company (a direct wholly owned subsidiary of DTE Energy Company) and subsidiary companies.
DTE Energy	DTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas Company and numerous non-utility subsidiaries
EPA	United States Environmental Protection Agency
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
FOV	Finding of Violation
FTRs	Financial transmission rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission grid.
MDEQ	Michigan Department of Environmental Quality
MISO	Midcontinent Independent System Operator, Inc.
MPSC	Michigan Public Service Commission
NOV	Notice of Violation
NRC	United States Nuclear Regulatory Commission
Production tax credits	Tax credits as authorized under Sections 45K and 45 of the Internal Revenue Code that are designed to stimulate investment in and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by the Internal Revenue Service.
PSCR	A Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates its fuel, fuel-related and purchased power costs.
RDM	A Revenue Decoupling Mechanism authorized by the MPSC that is designed to minimize the impact on revenues of changes in average customer usage of electricity
Securitization	DTE Electric financed specific stranded costs at lower interest rates through the sale of rate reduction bonds by a wholly-owned special purpose entity, The Detroit Edison Securitization Funding LLC.
VIE	Variable Interest Entity

Units of Measurement
kWh	Kilowatthour of electricity
MWh	Megawatthour of electricity

1

FORWARD-LOOKING STATEMENTS

Certain information presented herein includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of DTE Electric. Words such as “anticipate,” “believe,” “expect,” “projected,” “aspiration” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated or budgeted. Many factors may impact forward-looking statements including, but not limited to, the following:

• impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures;

• the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals or new legislation; including legislative amendments and Customer Choice programs;

• economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation and thefts of electricity;

• environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;

• health, safety, financial, environmental and regulatory risks associated with ownership and operation of nuclear facilities;

• changes in the cost and availability of coal and other raw materials and purchased power;

• the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions;

• access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;

• instability in capital markets which could impact availability of short and long-term financing;

• the timing and extent of changes in interest rates;

• the level of borrowings;

• the potential for increased costs or delays in completion of significant construction projects;

• changes in and application of federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits;

• the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers;

• unplanned outages;

• the cost of protecting assets against, or damage due to, terrorism or cyber attacks;

• employee relations and the impact of collective bargaining agreements;

• the availability, cost, coverage and terms of insurance and stability of insurance providers;

• cost reduction efforts and the maximization of plant and distribution system performance;

• the effects of competition;

• changes in and application of accounting standards and financial reporting regulations;

• changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues;

• binding arbitration, litigation and related appeals; and

• the risks discussed in our public filings with the Securities and Exchange Commission.

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

2

Part I - Financial Information

Item 1. Financial Statements

DTE Electric Company

Consolidated Statements of Operations (Unaudited)

	Three Months Ended
	March 31,
	2014			2013
	(In millions)
Operating Revenues	$	1,410		$	1,219
Operating Expenses
Fuel and purchased power	498			372
Operation and maintenance	342			331
Depreciation and amortization	228			212
Taxes other than income	71			70
Asset (gains) losses and reserves, net	—			(1		)
	1,139			984
Operating Income	271			235
Other (Income) and Deductions
Interest expense	63			66
Other income	(13		)	(15		)
Other expenses	7			6
	57			57
Income Before Income Taxes	214			178
Income Tax Expense	77			62
Net Income	$	137		$	116

See Notes to Consolidated Financial Statements (Unaudited)

3

DTE Electric Company

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
	2014			2013
	(In millions)
Net income	$	137		$	116
Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $(1) and $—	(1		)	—
Comprehensive income	$	136		$	116

See Notes to Consolidated Financial Statements (Unaudited)

4

DTE Electric Company

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended
	March 31,
	2014			2013
	(In millions)
Operating Activities
Net income	$	137		$	116
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	228			212
Nuclear fuel amortization	5			9
Allowance for equity funds used during construction	(5		)	(3		)
Deferred income taxes	42			27
Asset (gains) losses and reserves, net	—			(1		)
Changes in assets and liabilities:
Accounts receivable, net	6			(3		)
Inventories	55			52
Accounts payable	73			(17		)
Regulatory assets and liabilities	(135		)	163
Accrued pension liability — affiliates	(20		)	(92		)
Accrued postretirement liability — affiliates	(15		)	(125		)
Other assets	(28		)	(31		)
Other liabilities	(31		)	(66		)
Net cash from operating activities	312			241
Investing Activities
Plant and equipment expenditures	(354		)	(255		)
Restricted cash for debt redemption, principally Securitization	65			57
Notes receivable from affiliate	200			—
Proceeds from sale of nuclear decommissioning trust fund assets	271			136
Investment in nuclear decommissioning trust funds	(275		)	(140		)
Other Investments	(8		)	(6		)
Net cash used for investing activities	(101		)	(208		)
Financing Activities
Issuance of long-term debt, net of issuance costs	—			372
Redemption of long-term debt	(113		)	(139		)
Short-term borrowings — other	—			(130		)
Short-term borrowings — affiliate	5			(29		)
Dividends on common stock	(93		)	(85		)
Other	(3		)	(3		)
Net cash used for financing activities	(204		)	(14		)
Net Increase in Cash and Cash Equivalents	7			19
Cash and Cash Equivalents at Beginning of the Period	27			30
Cash and Cash Equivalents at End of the Period	$	34		$	49
Supplemental disclosure of non-cash investing and financing activities
Plant and equipment expenditures in accounts payable	$	176		$	106

See Notes to Consolidated Financial Statements (Unaudited)

5

DTE Electric Company

Consolidated Statements of Financial Position (Unaudited)

	March 31,			December 31,
	2014			2013
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	34		$	27
Restricted cash, principally Securitization	36			100
Accounts receivable (less allowance for doubtful accounts of $28 and $28, respectively)
Customer	724			723
Affiliates	1			24
Other	39			24
Inventories
Fuel	135			188
Materials and supplies	213			215
Notes receivable
Affiliates	—			200
Other	12			2
Regulatory assets	41			13
Prepaid property taxes	76			41
Other	28			27
	1,339			1,584
Investments
Nuclear decommissioning trust funds	1,195			1,191
Other	160			160
	1,355			1,351
Property
Property, plant and equipment	18,922			18,730
Less accumulated depreciation and amortization	(6,991		)	(6,951		)
	11,931			11,779
Other Assets
Regulatory assets	2,237			2,275
Securitized regulatory assets	182			231
Intangible assets	39			41
Notes receivable	1			8
Other	142			141
	2,601			2,696
Total Assets	$	17,226		$	17,410

See Notes to Consolidated Financial Statements (Unaudited)

6

DTE Electric Company

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

	March 31,			December 31,
	2014			2013
	(In millions, except shares)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Accounts payable
Affiliates	$	108		$	60
Other	395			424
Accrued interest	65			61
Current portion long-term debt, including capital leases	675			504
Regulatory liabilities	171			278
Deferred income taxes	97			91
Short-term borrowings
Affiliates	63			58
Other	150			177
	1,724			1,653
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other	4,362			4,540
Securitization bonds	—			105
Capital lease obligations	—			4
	4,362			4,649
Other Liabilities
Deferred income taxes	2,842			2,807
Regulatory liabilities	354			386
Asset retirement obligations	1,691			1,667
Unamortized investment tax credit	39			41
Nuclear decommissioning	175			178
Accrued pension liability — affiliates	685			705
Accrued postretirement liability — affiliates	354			369
Other	102			101
	6,242			6,254
Commitments and Contingencies (Notes 6 and 9)
Shareholder’s Equity
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding	3,596			3,596
Retained earnings	1,319			1,274
Accumulated other comprehensive income (loss)	(17		)	(16		)
	4,898			4,854
Total Liabilities and Shareholder’s Equity	$	17,226		$	17,410

See Notes to Consolidated Financial Statements (Unaudited)

7

DTE Electric Company

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

				Additional					Accumulated Other
	Common Stock			Paid-in		Retained			Comprehensive
	Shares	Amount		Capital		Earnings			Loss			Total
	(Dollars in millions, shares in thousands)
Balance, December 31, 2013	138,632	$	1,386	$	2,210	$	1,274		$	(16	)	$	4,854
Net income	—	—		—		137			—			137
Dividends declared on common stock	—	—		—		(93		)	—			(93		)
Benefit obligations, net of tax	—	—		—		—			(1		)	(1		)
Other	—	—		—		1			—			1
Balance, March 31, 2014	138,632	$	1,386	$	2,210	$	1,319		$	(17	)	$	4,898

See Notes to Consolidated Financial Statements (Unaudited)

8

DTE Electric Company

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1 — 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

These Consolidated Financial Statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the 2013 Annual Report on Form 10-K.

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.

The Consolidated Financial Statements are unaudited, but in the Company's opinion include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2014.

Certain prior year balances were reclassified to match the current year's financial statement presentation. Such revisions included an increase in the Consolidated Statements of Cash Flows line items for (i) Proceeds from sale of nuclear decommissioning trust funds, and (ii) Investment in nuclear decommissioning trust funds by $124 million for the three months ended March 31, 2013. These revisions were needed to properly state the gross purchases and sales activity in the nuclear decommissioning trust fund for the quarter. The total of Net cash used in investing activities for the three months ended March 31, 2013 was unchanged by these revisions. The revisions noted above are not deemed material, individually or in the aggregate, to the prior period consolidated financial statements.

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.

9

DTE Electric Company

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

The Company has variable interests in VIEs through certain of its long-term purchase contracts. As of March 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 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 as of March 31, 2014 and December 31, 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.

	March 31,		December 31,
	2014		2013
	(In millions)
ASSETS
Restricted cash	$	36	$	100
Accounts receivable	40		34
Securitized regulatory assets	182		231
Other assets	3		4
	$	261	$	369
LIABILITIES
Accounts payable and accrued current liabilities	$	1	$	7
Current portion long-term debt	202		196
Current regulatory liabilities	41		43
Securitization bonds	—		105
Other long-term liabilities	8		8
	$	252	$	359

10

DTE Electric Company

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

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

Comprehensive Income (Loss)

Comprehensive income (loss) is the change in common shareholders' equity during a period from transactions and events from non-owner sources, including net income. As shown in the following tables, amounts recorded to accumulated other comprehensive loss for the three months ended March 31, 2014 reflected changes in benefit obligations, consisting of deferred actuarial losses, prior service costs and transition amounts related to pension and other postretirement benefit plans.

	Changes in Accumulated Other Comprehensive Loss by Component (a)
	Three Months Ended March 31, 2014
	Net Unrealized Gain/(Loss) on Investments		Benefit Obligations			Total
	(In millions)
Beginning balance, December 31, 2013	$	1	$	(17	)	$	(16	)
Other comprehensive income before reclassifications	—		(1		)	(1		)
Amounts reclassified from Accumulated other comprehensive income	—		—			—
Net current-period other comprehensive income	—		(1		)	(1		)
Ending balance, March 31, 2014	$	1	$	(18	)	$	(17	)

_______________________________________

(a) All amounts are net of tax.

Intangible Assets

The Company has certain intangible assets relating to emission allowances and renewable energy credits as shown below:

	March 31,		December 31,
	2014		2013
	(In millions)
Emission allowances	$	2	$	2
Renewable energy credits	50		51
	52		53
Less current intangible assets	13		12
	$	39	$	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.

Income Taxes

The Company's effective tax rate for the three months ended March 31, 2014 was 36% as compared to 35% for the three months ended March 31, 2013.

DTE Electric had an income tax payable of $17 million at March 31, 2014 and an income tax receivable of $23 million at December 31, 2013 due DTE Energy.

The Company had $2 million of unrecognized tax benefits at March 31, 2014, that, if recognized, would favorably impact its effective tax rate. The Company does not anticipate any material changes to the unrecognized tax benefits in the next twelve months.

Stock-Based Compensation

The Company received an allocation of costs from DTE Energy associated with stock-based compensation of $19 million and $13 million for the three months ended March 31, 2014 and March 31, 2013, respectively.

11

DTE Electric Company

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

NOTE 3 — 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 March 31, 2014 and December 31, 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 March 31, 2014 and December 31, 2013:

	March 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	$	46	$	—	$	51	$	2	$	114	$	—	$	116
Nuclear decommissioning trusts	764		431		—		1,195		779		412		—		1,191
Other investments (b)	88		49		—		137		91		44		—		135
Derivative assets — FTRs	—		—		1		1		—		—		3		3
Total	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445
Assets:
Current	$	5	$	46	$	1	$	52	$	2	$	114	$	3	$	119
Noncurrent	852		480		—		1,332		870		456		—		1,326
Total Assets	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445

_______________________________________

(a) At March 31, 2014, available-for-sale securities of $51 million, included $36 million and $15 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 both March 31, 2014 and December 31, 2013 of $7 million are included in Other investments on the Consolidated Statements of Financial Position.

12

DTE Electric Company

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

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 net asset values (NAV). 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 three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Net Assets as of beginning of the period	$	3		$	1
Change in fair value recorded in regulatory assets/liabilities	4			1
Purchases, issuances and settlements:
Settlements	(6		)	(1		)
Net Assets as of March 31	$	1		$	1
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31, 2014 and 2013	$	—		$	1

No transfers between Levels 1, 2 or 3 occurred in the three months ended March 31, 2014 and 2013.

13

DTE Electric Company

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

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 March 31, 2014 and December 31, 2013:

	March 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	$	13	$	—	$	—	$	13	$	10	$	—	$	—	$	10
Notes receivable — affiliates	$	—	$	—	$	—	$	—	$	200	$	—	$	—	$	200
Short-term borrowings — affiliates	$	63	$	—	$	—	$	63	$	58	$	—	$	—	$	58
Long-term debt	$	5,032	$	—	$	5,125	$	304	$	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.

The following table summarizes the fair value of the nuclear decommissioning trust fund assets:

	March 31,		December 31,
	2014		2013
	(In millions)
Fermi 2	$	1,174	$	1,172
Fermi 1	3		3
Low-level radioactive waste	18		16
Total	$	1,195	$	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:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Realized gains	$	9		$	8
Realized losses	$	(7	)	$	(7	)
Proceeds from sales of securities	$	271		$	136

14

DTE Electric Company

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

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:

	March 31, 2014				December 31, 2013
	Fair		Unrealized		Fair		Unrealized
	Value		Gains		Value		Gains
	(In millions)
Equity securities	$	730	$	197	$	730	$	201
Debt securities	452		16		442		12
Cash and cash equivalents	13		—		19		—
	$	1,195	$	213	$	1,191	$	213

The debt securities at March 31, 2014 and December 31, 2013 had an average maturity of approximately 7 years, respectively. 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. DTE Electric recognized $33 million and $31 million of unrealized losses as Regulatory assets at March 31, 2014 and December 31, 2013, respectively. Since the decommissioning of Fermi 1 is funded by DTE Electric rather than through a regulatory recovery mechanism, there is no corresponding regulatory asset treatment. Therefore, unrealized losses incurred by the Fermi 1 trust are recognized in earnings immediately. There were no unrealized losses recognized in the three months ended March 31, 2014 and 2013 for Fermi 1.

Other Securities

At March 31, 2014 and December 31, 2013, the securities were comprised primarily of money market and equity securities. During the three months ended March 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 March 31, 2014 and 2013 were $2 million and $7 million, respectively.

NOTE 4 — 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 and losses from the ineffective portion of any hedge 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 recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

15

DTE Electric Company

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

The following table presents the fair value of derivative instruments as of March 31, 2014 and December 31, 2013:

	March 31,		December 31,
	2014		2013
	(In millions)
FTRs — Other current assets	$	1	$	3
Total derivatives not designated as hedging instrument	$	1	$	3

The effects of derivative instruments recoverable through the PSCR mechanism when realized on the Consolidated Statements of Financial Position were $4 million and $1 million in gains related to FTRs recognized in Regulatory liabilities for the three months ended March 31, 2014 and 2013, respectively.

The following represents the cumulative gross volume of derivative contracts outstanding as of March 31, 2014:

Commodity	Number of Units
FTRs (MWh)	16,665

NOTE 5 — ASSET RETIREMENT OBLIGATIONS

A reconciliation of the asset retirement obligations for the three months ended March 31, 2014 follows:

	(In millions)
Asset retirement obligations at December 31, 2013	$	1,667
Accretion	26
Revision in estimated cash flows	(5		)
Liabilities incurred	3
Asset retirement obligations at March 31, 2014	$	1,691

NOTE 6 — REGULATORY MATTERS

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.

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.

16

DTE Electric Company

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

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 nominal 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-related purchased power costs. Resolution of this matter is expected in 2014.

2013 PSCR Year — In March 2014, DTE Electric filed the 2013 PSCR reconciliation calculating a net over-recovery of $54 million that includes an under-recovery of $87 million for the 2012 PSCR year.

NOTE 7 — LONG-TERM DEBT

Debt Issuances

In March 2014, DTE Electric agreed to issue $150 million of 4.60%, 30-year mortgage bonds and $100 million of 3.77%, 12-year mortgage bonds to a group of institutional investors in a private placement transaction. The bonds are expected to close and fund in June 2014. Proceeds will be used for the repayment of existing indebtedness and for 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
				$	113

In April 2014, DTE Electric called $31 million of 2.35% tax exempt revenue bonds and $32 million of 4.65% tax exempt revenue bonds with final maturities of 2024 and 2028, respectively.

NOTE 8 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

DTE Electric has a $300 million unsecured revolving credit agreement with a syndicate of 19 banks that can be used for general corporate borrowings, but is intended to provide liquidity support for the Company's commercial paper program. No one bank provides more than 8.7% of the commitment in the facility. Borrowings under the facility are available at prevailing short-term interest rates. The facility will expire in April 2018. There were no amounts outstanding against the facility at March 31, 2014 and 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. In the agreement, “total funded debt” means all indebtedness of the Company and its consolidatedsubsidiaries, including capital lease obligations, hedge agreements and guarantees of third parties' debt, but excluding contingent obligations and nonrecourse and junior subordinated debt. “Capitalization” means the sum of (a) total funded debt plus (b) “consolidated net worth,” which is equal to consolidated total stockholders' equity of the Company and its consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At March 31, 2014, the total funded debt to total capitalization ratio for DTE Electric was 0.50 to 1 and is in compliance with this financial covenant.

17

DTE Electric Company

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

NOTE 9 — 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. Since 2005, the EPA and the State of Michigan have issued additional emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to additional controls on fossil-fueled power plants to reduce nitrogen oxide, sulfur dioxide, mercury and other emissions. To comply with these requirements, DTE Electric has spent approximately $2 billion through 2013. The Company estimates DTE Electric will make capital expenditures of approximately $280 million in 2014 and up to approximately $1.2 billion of additional capital expenditures through 2021 based on current regulations. Further, 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), finalized in July 2011, required further reductions of sulfur dioxide and nitrogen oxides emissions beginning in 2012. On December 30, 2011, the U.S. Court of Appeals for the District of Columbia (D.C.) Circuit granted the motions to stay the rule, leaving DTE Electric temporarily subject to the previously existing Clean Air Interstate Rule (CAIR). On August 21, 2012, the Court issued its decision, vacating CSAPR and leaving CAIR in place. The EPA's petition seeking a rehearing of the U.S. Court of Appeals' decision regarding the CSAPR was denied on January 24, 2013. On June 24, 2013, the U.S. Supreme Court granted EPA's petition asking the Court to review the D.C. Circuit Court's decision on CSAPR. A ruling by the Supreme Court is expected by the second quarter of 2014. Notwithstanding the appeal filed with the Supreme Court, the EPA and a number of states, including Michigan, have started working on the framework of revised CSAPR regulations which we anticipate to be proposed in the next few years.

The Mercury and Air Toxics Standard (MATS) rule, formerly known as the Electric Generating Unit Maximum Achievable Control Technology (EGU MACT) Rule was finalized on December 16, 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 July 2009, DTE Energy received a Notice of Violation/Finding of Violation (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. On October 20, 2011, the EPA caused to be filed a Notice of Appeal to the U.S. Court of Appeals for the Sixth Circuit. On March 28, 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. On September 3, 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. On March 3, 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. On April 3, 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 River Rouge Unit 3.

18

DTE Electric Company

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

DTE Energy and DTE Electric believe that all 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 March 2013, the Sierra Club filed suit against DTE Electric alleging violations of the Clean Air Act at four of DTE Electric's coal-fired power plants. The plaintiffs allege 1,499six-minute periods of excess opacity of air emissions from 2007-2012 at those facilities. The suit asks that the court enjoin the Company from operating the power plants except in complete compliance with applicable laws and permit requirements, pay civil penalties, conduct beneficial environmental mitigation projects, pay attorney fees and require the installation of any necessary pollution controls or to convert and/or operate the plants' boilers on natural gas to avoid additional violations and to off-set historic unlawful emissions. In December 2013, a U.S. District Court judge issued an order dismissing, without prejudice, the plaintiff's complaint allowing them to file an amended complaint by January 17, 2014. The order dismissing the complaint resulted from a considerable number of plaintiff's claims being time barred based on the statute of limitations. On January 17, 2014, the plaintiffs filed an amended complaint for the period January 13, 2008 - June 30, 2012, reducing the total number of six-minute periods from 1,499 to 1,139. DTE Electric filed an answer to the amended complaint on March 11, 2014. The resolution of this matter is not expected to have a material effect on the Company's operations or financial statements.

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. The initial rule published in 2004 was subsequently remanded and a proposed rule published in 2011. The proposed rule specified an eight year compliance timeline. Final action on this rule has been delayed and is expected in 2014. Depending on final regulations, its requirements may require modifications to some existing intake structures and could impact the rates we charge our customers. It is not possible to quantify the impact of those expected rulemakings at this time.

On April 19, 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 December 2014. DTE Electric has provided comments to the EPA. However, 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 manufactured gas plant (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 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 March 31, 2014 and at December 31, 2013, the Company had $9 million and $8 million accrued for remediation, respectively. Any significant change in assumptions, such as remediation techniques, nature and extent of contamination and regulatory requirements, could impact the estimate of remedial action costs for 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.

DTE Electric owns and operates three permitted engineered ash storage facilities to dispose of fly ash from the coal fired power plant. The EPA has published proposed rules to regulate coal ash under the authority of the Resources Conservation and Recovery Act (RCRA). The proposed rule published in June 2010 contains two primary regulatory options to regulate coal ash residue. The EPA is currently considering either designating coal ash as a “Hazardous Waste” as defined by RCRA or regulating coal ash as non-hazardous waste under RCRA. Agencies and legislatures have urged the EPA to regulate coal ash as a non-hazardous waste. If the EPA designates coal ash as a hazardous waste, the agency could apply some, or all, of the disposal and reuse standards that have been applied to other existing hazardous wastes to disposal and reuse of coal ash. Some of the regulatory actions currently being contemplated could have a significant impact on our operations and financial position and the rates we charge our customers. The rules are expected to be finalized by December 2014. It is not possible to quantify the impact of those expected rulemakings at this time.

19

DTE Electric Company

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

Other

In December 2012, the EPA finalized a new set of regulations regarding the identification of non-hazardous secondary materials that are considered solid waste, industrial boiler and process heater maximum achievable control technologies (IBMACT) for major and area sources, and commercial/industrial solid waste incinerator new source performance standard and emission guidelines (CISWI). Capital costs for pollution controls and/or boiler conversions and the expenses for the one-time energy assessments are not expected to be material.

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.

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 Nuclear Electric Insurance Limited (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.

As of April 1, 2014, 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 $327 million of coverage for extra expenses over a two-year period.

In 2007, the Terrorism Risk Insurance Extension Act of 2005 (TRIA) was extended through December 31, 2014. A major change in the extension is the inclusion of “domestic” acts of terrorism in the definition of covered or “certified” acts. 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 the 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 insured 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 $127.3 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.

20

DTE Electric Company

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

Nuclear Fuel Disposal Costs

In accordance with the Federal Nuclear Waste Policy Act of 1982, DTE Electric has a contract with the U.S. Department of Energy (DOE) for the future storage and disposal of spent nuclear fuel from Fermi 2. DTE Electric is obligated to pay the DOE a fee of 1 mill per kWh of Fermi 2 electricity generated and sold. The fee is 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 currently employs a spent nuclear fuel storage strategy utilizing a fuel pool. The Company continues to develop its on-site dry cask storage facility and has scheduled the initial offload from the spent fuel pool in 2014. 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.

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 provided for a payment of approximately $48 million, received in August 2012, for delay-related costs experienced by DTE Electric through 2010, and a claims process for submittal of delay-related costs from 2011 through 2013. DTE Electric has begun the claims process and claims are being settled on a timely basis. The settlement proceeds reduced the cost of the dry cask storage facility assets. In January 2014, the settlement agreement was extended through 2016. 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.

In February 2013, the U.S. Court of Appeals for the District of Columbia (COA) granted a motion to reopen the fee adequacy litigation to review the DOE's latest fee adequacy report which was released in January 2013. In November 2013, the COA issued a decision ordering the DOE to submit a proposal to Congress to reduce the nuclear waste fee to zero until the DOE enacts an alternative nuclear waste management plan. In January 2014, the DOE submitted such a proposal to Congress that will take effect in 90 legislative calendar days, absent legislative action to the contrary. Simultaneously, the DOE filed a petition for rehearing of the November 2013 decision with the COA. In March 2014, the COA denied DOE's petition for rehearing. DTE Electric continues to pay fees to the U.S. government's nuclear waste fund pending further developments in this proceeding.

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 March 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, renewable energy contracts and energy trading contracts. The Company estimates that these commitments will be approximately $2.6 billion from 2014 through 2033.

The Company also estimates that 2014 capital expenditures will be approximately $1.6 billion. The Company has made certain commitments in connection with expected capital expenditures.

21

DTE Electric Company

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

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.

The Company provides services to the city of Detroit, Michigan (Detroit). Detroit filed for Chapter 9 bankruptcy protection on July 18, 2013. The Company had pre-petition accounts receivable of approximately $20 million outstanding as of the bankruptcy filing date. Detroit has been paying amounts owed in a timely manner and its accounts are substantially current. The Company does not expect Detroit's bankruptcy filing to have a material impact on its financial results.

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.

See Note 6 for a discussion of contingencies related to Regulatory Matters.

NOTE 10 — RETIREMENT BENEFITS AND TRUSTEED ASSETS

The following table details the components of net periodic benefit costs for pension benefits and other postretirement benefits:

	Pension Benefits						Other Postretirement Benefits
	2014			2013			2014			2013
Three Months Ended March 31	(In millions)
Service cost	$	17		$	19		$	7		$	12
Interest cost	40			36			17			18
Expected return on plan assets	(48		)	(46		)	(21		)	(18		)
Amortization of:
Net actuarial loss	27			36			3			12
Prior service credit	—			—			(27		)	(17		)
Net periodic benefit cost (credit)	$	36		$	45		$	(21	)	$	7

Pension and Other Postretirement Contributions

During the first three months of 2014, the Company contributed $30 million to its pension plans. At the discretion of management, and depending upon financial market conditions, the Company may make up to an additional $115 million contribution to its pension plans in 2014.

At the discretion of management, the Company may make up to a $120 million contribution to its other postretirement benefit plans in 2014.

22

Item 2. Management’s Narrative Analysis of Results of Operations

The Management’s Narrative Analysis of Results of Operations discussion for DTE Electric is presented in accordance with General Instruction H (2) (a) of Form 10-Q.

DTE Electric's results for the three months ended March 31, 2014 as compared to the comparable 2013 period are discussed below:

	Three Months Ended
	March 31,
	2014			2013
	(In millions)
Operating revenues	$	1,410		$	1,219
Fuel and purchased power	498			372
Gross margin	912			847
Operation and maintenance	342			331
Depreciation and amortization	228			212
Taxes other than income	71			70
Asset (gains) losses and reserves, net	—			(1		)
Operating Income	271			235
Other (Income) and Deductions	57			57
Income Tax Expense	77			62
Net Income	$	137		$	116
Operating Income as a Percentage of Operating Revenues	19		%	19		%

Gross margin increased $65 million in the three months ended March 31, 2014. Revenues associated with certain tracking mechanisms and surcharges are offset by related expenses elsewhere in the Consolidated Statements of Operations.

The following table details changes in various gross margin components relative to the comparable prior period:

	Three Months
	(In millions)
Amortization of refundable revenue decoupling/deferred gain	$	32
Base sales, inclusive of weather effect	13
Securitization bond and tax surcharge	8
Renewable energy program	4
Low income energy assistance surcharge	6
Regulatory mechanisms and other	2
Increase in gross margin	$	65

23

	Three Months Ended
	March 31,
	2014	2013
	(In thousands of MWh)
Electric Sales
Residential	3,978	3,854
Commercial	4,048	3,923
Industrial	2,501	2,436
Other	205	252
	10,732	10,465
Interconnection sales (a)	618	773
Total Electric Sales	11,350	11,238
Electric Deliveries
Retail and Wholesale	10,732	10,465
Electric Customer Choice, including self generators (b)	1,267	1,260
Total Electric Sales and Deliveries	11,999	11,725

_______________________________________

(a) Represents power that is not distributed by DTE Electric.

(b) Represents deliveries for self generators who have purchased power from alternative energy suppliers to supplement their power requirements.

Operation and maintenance expense increased $11 million in the three months ended March 31, 2014 due primarily to higher power plant generation expenses for planned outages of $27 million, increased low income energy assistance of $6 million and higher energy optimization and renewable energy expenses of $2 million, partially offset by lower employee benefit expenses of $24 million.

Depreciation and amortization expense increased $16 million in the three months ended March 31, 2014 due to higher amortization of regulatory assets of $11 million, primarily related to Securitization, and $5 million of increased expense due to a higher depreciable base.

Outlook— We continue to move forward in our efforts to achieve operational excellence, sustained strong cash flows and earn our authorized return on equity. We expect that our planned significant capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, investment returns and changes in discount rate assumptions in benefit plans and health care costs, and uncertainty of legislative or regulatory actions regarding climate change and electric choice. We expect to continue our efforts to improve productivity and decrease our costs while improving customer satisfaction with consideration of customer rate affordability.

Climate regulation and/or legislation has been proposed and discussed within the U.S. Congress and the EPA. The EPA is implementing regulatory actions under the Clean Air Act to address emissions of greenhouse gases (GHGs). EPA regulation of GHGs requires the best available control technology (BACT) for new major sources or modifications to existing major sources that cause significant increases in GHG emissions. In June 2012, the EPA proposed new source performance standards for carbon dioxide emissions from new fossil-fueled power plants. These new source performance standards were re-proposed on September 20, 2013, under a presidential directive issued on June 25, 2013. Under the same presidential directive, the EPA is expected to propose performance standards for carbon dioxide emissions from existing and modified plants by June 1, 2014 and issue final standards by June 1, 2015. DTE Energy will be an active participant in working with the EPA and other stakeholders to shape the final performance standards for new and existing power plants. The standards for new sources are not expected to have a material impact on the Company. It is not possible to determine the potential impact of future regulations on existing sources at this time. Pending or future legislation or other regulatory actions could have a material impact on our operations and financial position and the rates we charge our customers. Impacts include expenditures for environmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission offsets from market sources and the retirement of facilities where control equipment is not economical. We would seek to recover these incremental costs through increased rates charged to our utility customers as authorized by the MPSC. Increased costs for energy produced from traditional coal based sources could also increase the economic viability of energy produced from renewable and/or nuclear sources, from energy efficiency initiatives, and from the potential development of market-based trading of carbon offsets which could provide new business opportunities. At the present time, it is not possible to quantify the financial implication of these climate related legislative or regulatory initiatives on DTE Electric or its customers.

24

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Management of the Company carried out an evaluation, under the supervision and with the participation of DTE Electric's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2014, which is the end of the period covered by this report. Based on this evaluation, the Company's CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Company's management, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in the effectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls and procedures will be attained.

(b) Changes in internal control over financial reporting

There have been no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

25

Part II - Other Information

Item 1. Legal Proceedings

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. On October 20, 2011, the EPA caused to be filed a Notice of Appeal to the U.S. Court of Appeals for the Sixth Circuit. On March 28, 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. On September 3, 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. On March 3, 2014, the U.S. District Court judge granted DTE Energy's second motion for summary judgment dismissing the civil case related to Monroe Unit 2. On April 3, 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 River Rouge Unit 3.

DTE Energy and DTE Electric believe that all 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 March 2013, the Sierra Club filed suit against DTE Energy and DTE Electric alleging violations of the Clean Air Act at four of DTE Electric's coal-fired power plants. The plaintiffs allege 1,499 6-minute periods of excess opacity of air emissions from 2007-2012 at those facilities. The suit asks that the court enjoin DTE Energy and DTE Electric from operating the power plants except in complete compliance with applicable laws and permit requirements, pay civil penalties, conduct beneficial environmental mitigation projects, pay attorney fees and require the installation of any necessary pollution controls or to convert and/or operate the plants' boilers on natural gas to avoid additional violations and to off-set historic unlawful emissions. In December 2013, a U.S. District Court judge issued an order dismissing, without prejudice, the plaintiff's complaint allowing them to file an amended complaint by January 17, 2014. The order dismissing the complaint resulted from a considerable number of plaintiff's claims being time barred based on the statute of limitations. On January 17, 2014, the plaintiffs filed an amended complaint for the period January 13, 2008 - June 30, 2012, reducing the total number of 6-minute periods from 1,499 to 1,139. DTE Energy and DTE Electric filed an answer to the amended complaint on March 11, 2014. The resolution of this matter is not expected to have a material effect on the Company's operations or financial statements.

For additional discussion on legal matters, see Notes 6 and 9 of the Notes to Consolidated Financial Statements.

26

Item 1A.  Risk Factors

There are various risks associated with the operations of DTE Electric. To provide a framework to understand the operating environment of DTE Electric, we have provided a brief explanation of the more significant risks associated with our businesses in Part 1, Item 1A. Risk Factors in the Company's 2013 Form 10-K. Although we have tried to identify and discuss key risk factors, others could emerge in the future.

Item 6. Exhibits

	(i) Exhibits filed herewith:
12-49	Computation of Ratio of Earnings to Fixed Charges
31-89	Chief Executive Officer Section 302 Form 10-Q Certification of Periodic Report
31-90	Chief Financial Officer Section 302 Form 10-Q Certification of Periodic Report
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Database
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

	(ii) Exhibits furnished herewith:
32-89	Chief Executive Officer Section 906 Form 10-Q Certification of Periodic Report
32-90	Chief Financial Officer Section 906 Form 10-Q Certification of Periodic Report

27

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

		DTE ELECTRIC COMPANY
		(Registrant)
Date: April 25, 2014	By	/s/ DONNA M. ENGLAND
		Donna M. England Chief Accounting Officer (Principal Accounting Officer)

28

EX-12.49

									Exhibit 12-49
DTE Electric Company
Computation of Ratio of Earnings to Fixed Charges
	Three Months Ended		Year Ended December 31,
(Millions of Dollars)	March 31, 2014		2013		2012		2011		2010		2009
Earnings:
Pretax earnings	$	211	$	734	$	761	$	702	$	707	$	604
Fixed Charges	67		281		286		310		328		348
Net earnings	$	278	$	1,015	$	1,047	$	1,012	$	1,035	$	952
Fixed charges:
Interest expense	$	62	$	264	$	269	$	287	$	310	$	325
Adjustments	5		17		17		23		18		23
Fixed Charges	$	67	$	281	$	286	$	310	$	328	$	348
Ratio of earnings to fixed charges	4.15		3.61		3.66		3.26		3.16		2.74

EX-31.89

Exhibit 31-89

FORM 10-Q CERTIFICATION

I, Gerard M. Anderson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Electric Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ GERARD M. ANDERSON	Date:	April 25, 2014
Gerard M. Anderson
Chairman of the Board and Chief Executive Officer of DTE Electric Company

EX-31.90

Exhibit 31-90

FORM 10-Q CERTIFICATION

I, Peter B. Oleksiak, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DTE Electric Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/S/ PETER B. OLEKSIAK	Date:	April 25, 2014
Peter B. Oleksiak
Senior Vice President and Chief Financial Officer of DTE Electric Company

EX-32.89

Exhibit 32-89

CERTIFICATION PURSUANT TO

18 U. S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Electric Company (the “Company”) for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerard M. Anderson, certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2014	/S/ GERARD M. ANDERSON
		Gerard M. Anderson
		Chairman of the Board and Chief Executive Officer of DTE Electric Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.90

Exhibit 32-90

CERTIFICATION PURSUANT TO

18 U. S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of DTE Electric Company (the “Company”) for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Peter B. Oleksiak, certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 25, 2014	/S/ PETER B. OLEKSIAK
		Peter B. Oleksiak
		Senior Vice President and Chief Financial Officer of DTE Electric Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Financial and Other Derivative Instruments (Fair Value of Derivative Instruments) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Derivatives not designated as hedging instruments:
Derivative Asset Fair Value Gross Asset	$ 1	$ 3

XML

Retirement Benefits and Trusteed Assets Retirement Benefits and Trusted Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Pension Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	$ 17	$ 19
Interest Cost	40	36
Expected Return on Plan Assets	(48)	(46)
Amortization of Net Acutuarial Losses	27	36
Amortization of Prior Service Cost (Credit)	0	0
Net Periodic Benefit Cost	36	45
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	7	12
Interest Cost	17	18
Expected Return on Plan Assets	(21)	(18)
Amortization of Net Acutuarial Losses	3	12
Amortization of Prior Service Cost (Credit)	(27)	(17)
Net Periodic Benefit Cost	$ (21)	$ 7

XML

Short-Term Credit Arrangements and Borrowings (Details Textuals) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Short-term Debt [Line Items]
Revolving Credit Facilities with a Syndicate Number of Banks	19
Number of Banks that Provide Percentage of Commitment in any Facility	1
Maximum Percentage of Commitment to Bank in any Facility	8.70%
Maximum Total Funded Debt to Total Capitalization Ratio	0.65
Total Funded Debt to Total Capitalization Ratio	0.50
Commercial Paper [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Amount Outstanding	$ 0	$ 0
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

XML

Fair Value (Reconciliation of Level 3 Assets and Liabilities at Fair Value on a Recurring Basis) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis
Beginning Balance	$ 3	$ 1
Recorded in regulatory assets/liabilities	4	1
Purchases issuances and settlements [Abstract]
Settlements	(6)	(1)
Ending Balance	1	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	$ 0	$ 1

XML

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2014

Long-term Debt, Unclassified [Abstract]

Schedule of Issued Debt [Table Text Block]

In March 2014, DTE Electric agreed to issue $150 million of 4.60%, 30-year mortgage bonds and $100 million of 3.77%, 12-year mortgage bonds to a group of institutional investors in a private placement transaction. The bonds are expected to close and fund in June 2014. Proceeds will be used for the repayment of existing indebtedness and for general corporate purposes.

Schedule of Extinguishment of Debt [Table Text Block]

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
				$	113

XML

Asset Retirement Obligations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations beginning of period	$ 1,667
Accretion	26
Revision in estimated cash flows	(5)
Liabilities Incurred	3
Asset retirement obligations end of period	$ 1,691

XML

Fair Value (Fair Value and Unrealized Gains for the Nuclear Decommissioning Trust Funds) (Details) (Nuclear Decommissioning Trust Fund [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash equivalents	$ 13	$ 19
Nuclear decommissioning trusts	1,195	1,191
Unrealized Gains	213	213
Equity securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Equity Securities	730	730
Unrealized Gains	197	201
Debt securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Debt securities	452	442
Unrealized Gains	16	12
Cash and cash equivalents [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Unrealized Gains	$ 0	$ 0

XML

Commitments and Contingencies (Details Textuals) (USD $)	3 Months Ended			12 Months Ended
	Mar. 31, 2014 facilities dte_instances employees	Dec. 31, 2013	Mar. 31, 2013 dte_instances	Dec. 31, 2013	Jul. 18, 2013
Commitments and Contingencies Disclosure [Abstract]
Environmental Capital Expenditures Through Prior Year End				$ 2,000,000,000
Environmental Capital Expenditures in Current Year	280,000,000
Environmental Capital Expenditures In Future Years	1,200,000,000
EPA is Alleging DTE Electric Power Plants Violated New Source Performance Standards	5
Number of NOVs/FOVs currently being discussed with the EPA	2
Sierra Club is Alleging DTE Electric Coal-Fired Power Plants Violated the Clean Air Act	4
Exceedances of Opacity Standard	1,139		1,499
Period of excess opacity of air emissions at alleged facilities			6 minutes
Number of Former MGP Sites	3
Accrual for Environmental Loss Contingencies	9,000,000	8,000,000		8,000,000
Number of Options to Regulate Coal Ash Residue	2
EPA Sulfur Dioxide Ambient AIr Quality Standard	1 hour
Waiting Period of Policy	P12W
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
Total Limit for Property Damage for Non-Nuclear Event	2,000,000,000
Limit for Property Damage for Non-Nuclear Events Aggregate of Extra Expenses	327,000,000
Limit for Property Damage for Non-Nuclear Events Aggregate of Extra Expenses of Period	2 years
Time Period for TRIA Insurance after the First Loss from Terrorism	1 year
NEIL Policies Against Terrorism 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 Terrorist Act Outside Scope of Trials Subject to One Industry	300,000,000
Maximum Deferred premium charges levied against each licensed nuclear facility	127,300,000
Limit Deferred Premium Charges Per Year	19,000,000
Company Obligated to Pay DOE Fee of Fermi 2 Electricity Generated and Sold	1
Payment from the DOE for Delaying Acceptance of Spent Nuclear Fuel	48,000,000
Court of Appeals proposal to congress to reduce nuclear waste fee, amount		0
Time period after which the Court of Appeals proposal to Congress for nuclear waste fee reduction will take effect		90 days		90 days
Number of Represented Employees	2,600
Long-term Purchase Commitment, Amount	2,600,000,000
Estimated future capital expenditures for remainder of the year	1,600,000,000
Bankruptcy Claims, Amount of Claims under Review by Management					$ 20,000,000

XML

Basis of Presentation (Notes)

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

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

These Consolidated Financial Statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the 2013 Annual Report on Form 10-K.

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.

The Consolidated Financial Statements are unaudited, but in the Company's opinion include all adjustments necessary to present a fair statement of the results for the interim periods. All adjustments are of a normal recurring nature, except as otherwise disclosed in these Consolidated Financial Statements and Notes to Consolidated Financial Statements. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2014.

Certain prior year balances were reclassified to match the current year's financial statement presentation. Such revisions included an increase in the Consolidated Statements of Cash Flows line items for (i) Proceeds from sale of nuclear decommissioning trust funds, and (ii) Investment in nuclear decommissioning trust funds by $124 million for the three months ended March 31, 2013. These revisions were needed to properly state the gross purchases and sales activity in the nuclear decommissioning trust fund for the quarter. The total of Net cash used in investing activities for the three months ended March 31, 2013 was unchanged by these revisions. The revisions noted above are not deemed material, individually or in the aggregate, to the prior period consolidated financial statements.

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 March 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 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 as of March 31, 2014 and December 31, 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.

	March 31,		December 31,
	2014		2013
	(In millions)
ASSETS
Restricted cash	$	36	$	100
Accounts receivable	40		34
Securitized regulatory assets	182		231
Other assets	3		4
	$	261	$	369
LIABILITIES
Accounts payable and accrued current liabilities	$	1	$	7
Current portion long-term debt	202		196
Current regulatory liabilities	41		43
Securitization bonds	—		105
Other long-term liabilities	8		8
	$	252	$	359

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Regulatory Matters (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jan. 02, 2014	Sep. 30, 2012	Jul. 30, 2012
Public Utilities, General Disclosures [Abstract]
Defer the Reversal of RDM Liability				$ 127
Monthly Amount to Amortize from Liability to Income			10.6
PSCR Under-Recovery from Two Plan Years Prior		87
PSCR under-recovery from Three Plan Years Prior		148
Fermi 2 Production Level of Full Capacity					68.00%
Maximum of challenged Fermi 2 outage charges	32
PSCR over-recovery from One Plan Year Prior	$ 54

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Significant Accounting Policies (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Effective Income Tax Rate Reconciliation, Percent	36.00%	35.00%
Unrecognized Tax Benefits	$ 2
DTE Energy [Member]
Significant Accounting Policies [Line Items]
Income Taxes Receivable due from DTE Energy	17		23
Allocated Share-based Compensation Expense from DTE Energy	$ 19	$ 13

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Basis of Presentation (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets [Abstract]
Restricted cash	$ 36	$ 100
Accounts receivable	724	723
Securitized regulatory assets	182	231
Other assets	142	141
Total Assets	17,226	17,410
Liabilities [Abstract]
Current portion long-term debt	675	504
Current regulatory liabilities	171	278
Securitization bonds	0	105
Other long term liabilities	102	101
Variable Interest Entity Securitization [Member]
Assets [Abstract]
Restricted cash	36	100
Accounts receivable	40	34
Securitized regulatory assets	182	231
Other assets	3	4
Total Assets	261	369
Liabilities [Abstract]
Accounts payable and accrued current liabilities	1	7
Current portion long-term debt	202	196
Current regulatory liabilities	41	43
Securitization bonds	0	105
Other long term liabilities	8	8
Total Liabilities	$ 252	$ 359

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Long-Term Debt (Debt Redemptions) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Extinguishment of Debt [Line Items]
Extinguishment of Debt, Amount	$ 113
Securitization Bonds [Member]
Extinguishment of Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.62%
Extinguishment of Debt, Amount	100
Mortgages [Member]
Extinguishment of Debt [Line Items]
Extinguishment of Debt, Amount	$ 13

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Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (16)
Other Comprehensive Income Before Reclassifications	(1)
Amounts Reclassified From Accumulated Other Comprehensive Income	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax	(1)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(17)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	1
Other Comprehensive Income Before Reclassifications	0
Amounts Reclassified From Accumulated Other Comprehensive Income	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax	0
Accumulated Other Comprehensive Income (Loss), Net of Tax	1
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(17)
Other Comprehensive Income Before Reclassifications	(1)
Amounts Reclassified From Accumulated Other Comprehensive Income	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax	(1)
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (18)

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Significant Accounting Policies (Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 52	$ 53
Less Current Intangible Assets	13	12
Finite-Lived Intangible Assets, Net	39	41
Emission Allowances [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2	2
Renewable Energy Credits [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 50	$ 51

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Consolidated Statements of Changes in Equity (Unaudited) (USD $) In Millions, except Share data	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Defined Benefit Plans Adjustment [Member]
Beginning Balance at Dec. 31, 2013	$ 4,854	$ 1,386	$ 2,210	$ 1,274	$ (16)
Beginning Balance, shares at Dec. 31, 2013	138,632,324	138,632,000
Net Income	137			137
Dividends declared on common stock	(93)			(93)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(1)					(1)
Stockholders' Equity, Other	1			1
Ending Balance at Mar. 31, 2014	$ 4,898	$ 1,386	$ 2,210	$ 1,319	$ (17)
Ending Balance, shares at Mar. 31, 2014	138,632,324	138,632,000

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Fair Value (Assets and Liabilities Recorded at Fair Value on a Recurring Basis) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets - FTRs	$ 1	$ 3
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	51	116
Nuclear decommissioning trusts	1,195	1,191
Other investments	137	135
Derivative assets - FTRs	1	3
Assets	1,384	1,445
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5	2
Nuclear decommissioning trusts	764	779
Other investments	88	91
Derivative assets - FTRs	0	0
Assets	857	872
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	46	114
Nuclear decommissioning trusts	431	412
Other investments	49	44
Derivative assets - FTRs	0	0
Assets	526	570
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, 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
Derivative assets - FTRs	1	3
Assets	1	3
Current Asset [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	52	119
Current Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	5	2
Current Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	46	114
Current Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1	3
Noncurrent Asset [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,332	1,326
Noncurrent Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	852	870
Noncurrent Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	480	456
Noncurrent Asset [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 0	$ 0

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Financial and Other Derivative Instruments (Cumulative Gross Volume of Derivative Contracts) (Details) (FTR [Member])	Mar. 31, 2014 dte.volumes
FTR [Member]
Derivative [Line Items]
Investment Contract Volume	16,665

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Consolidated Statements of Operations (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Operating Revenues	$ 1,410	$ 1,219
Operating Expenses
Fuel, purchased power and gas	498	372
Operation and maintenance	342	331
Depreciation and amortization	228	212
Taxes other than income	71	70
Asset (gains) losses and reserves, net	0	(1)
Total operating expenses	1,139	984
Operating Income	271	235
Other (Income) and Deductions
Interest expense	63	66
Other income	(13)	(15)
Other expenses	7	6
Total Other (Income) and Deductions	57	57
Income Before Income Taxes	214	178
Income Tax Expense	77	62
Net Income	$ 137	$ 116

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Long-Term Debt Long-Term Debt (Detail Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Thirty Years [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount, Future Issuance	$ 150
Future Debt Instrument, Interest Rate, Stated Percentage	4.60%
Twelve Years [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount, Future Issuance	100
Future Debt Instrument, Interest Rate, Stated Percentage	3.77%
Final Maturity of 2024 [Member]
Debt Instrument [Line Items]
Future Extinguishment of Debt, Amount	31
Debt Instrument, Interest Rate, Stated Percentage	2.35%
Final Maturity of 2028 [Member]
Debt Instrument [Line Items]
Future Extinguishment of Debt, Amount	$ 32
Debt Instrument, Interest Rate, Stated Percentage	4.65%

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Consolidated Statements of Financial Position (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 34	$ 27
Restricted cash, principally Securitization	36	100
Accounts receivable (less allowance for doubtful accounts of $28 and $28, respectively)
Customer	724	723
Affiliates	1	24
Other	39	24
Inventories
Fuel	135	188
Materials and supplies	213	215
Notes receivable
Affiliates	0	200
Other	12	2
Regulatory assets	41	13
Prepaid property taxes	76	41
Other	28	27
Total Current Assets	1,339	1,584
Investments
Nuclear decommissioning trust funds	1,195	1,191
Other	160	160
Total Investments	1,355	1,351
Property
Property, plant and equipment	18,922	18,730
Less accumulated depreciation and amortization	(6,991)	(6,951)
Property, plant and equipment, net	11,931	11,779
Other Assets
Regulatory assets	2,237	2,275
Securitized regulatory assets	182	231
Intangible assets	39	41
Notes receivable	1	8
Other	142	141
Total Noncurrent Assets	2,601	2,696
Total Assets	17,226	17,410
Accounts payable
Affiliates	108	60
Other	395	424
Accrued interest	65	61
Current portion long-term debt, including capital leases	675	504
Regulatory liabilities	171	278
Deferred income taxes	97	91
Short-term borrowings
Affiliates	63	58
Other	150	177
Total Current Liabilities	1,724	1,653
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other	4,362	4,540
Securitization bonds	0	105
Capital lease obligations	0	4
Total Long-Term Debt (net of current portion)	4,362	4,649
Other Liabilities
Deferred income taxes	2,842	2,807
Regulatory liabilities	354	386
Asset retirement obligations	1,691	1,667
Unamortized investment tax credit	39	41
Nuclear decommissioning	175	178
Accrued pension liability — affiliates	685	705
Accrued postretirement liability — affiliates	354	369
Other	102	101
Total Noncurrent Liabilities	6,242	6,254
Shareholder’s Equity
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding	3,596	3,596
Retained earnings	1,319	1,274
Accumulated other comprehensive income (loss)	(17)	(16)
Total Shareholder's Equity	4,898	4,854
Total Liabilities and Shareholder's Equity	$ 17,226	$ 17,410

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Fair Value (Fair Value of Nuclear Decommissioning Trust Fund Assets) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decommissioning Fund Investments	$ 1,195	$ 1,191
Fermi 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decommissioning Fund Investments	1,174	1,172
Fermi 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decommissioning Fund Investments	3	3
Low level radioactive waste [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decommissioning Fund Investments	18	16
Nuclear Decommissioning Trust Fund [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decommissioning Fund Investments	$ 1,195	$ 1,191

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and liabilities measured on a recurring basis [Table Text Block]

The following table presents assets measured and recorded at fair value on a recurring basis as of March 31, 2014 and December 31, 2013:

	March 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	$	46	$	—	$	51	$	2	$	114	$	—	$	116
Nuclear decommissioning trusts	764		431		—		1,195		779		412		—		1,191
Other investments (b)	88		49		—		137		91		44		—		135
Derivative assets — FTRs	—		—		1		1		—		—		3		3
Total	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445
Assets:
Current	$	5	$	46	$	1	$	52	$	2	$	114	$	3	$	119
Noncurrent	852		480		—		1,332		870		456		—		1,326
Total Assets	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445

_______________________________________

(a) At March 31, 2014, available-for-sale securities of $51 million, included $36 million and $15 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 both March 31, 2014 and December 31, 2013 of $7 million are included in Other investments on the Consolidated Statements of Financial Position.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Net Assets as of beginning of the period	$	3		$	1
Change in fair value recorded in regulatory assets/liabilities	4			1
Purchases, issuances and settlements:
Settlements	(6		)	(1		)
Net Assets as of March 31	$	1		$	1
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31, 2014 and 2013	$	—		$	1

Fair Value of Financial Instruments [Table Text Block]

The following table presents the carrying amount and fair value of financial instruments as of March 31, 2014 and December 31, 2013:

	March 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	$	13	$	—	$	—	$	13	$	10	$	—	$	—	$	10
Notes receivable — affiliates	$	—	$	—	$	—	$	—	$	200	$	—	$	—	$	200
Short-term borrowings — affiliates	$	63	$	—	$	—	$	63	$	58	$	—	$	—	$	58
Long-term debt	$	5,032	$	—	$	5,125	$	304	$	5,146	$	—	$	5,253	$	136

Fair Value of Nuclear Decommissioning Trust Fund Assets [Table Text Block]

The following table summarizes the fair value of the nuclear decommissioning trust fund assets:

	March 31,		December 31,
	2014		2013
	(In millions)
Fermi 2	$	1,174	$	1,172
Fermi 1	3		3
Low-level radioactive waste	18		16
Total	$	1,195	$	1,191

Schedule of Realized Gain (Loss) [Table Text Block]

The following table sets forth the gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Realized gains	$	9		$	8
Realized losses	$	(7	)	$	(7	)
Proceeds from sales of securities	$	271		$	136

Fair Value and Unrealized Gains for Nuclear Decommissioning Trust Fund [Table Text Block]

The following table sets forth the fair value and unrealized gains for the nuclear decommissioning trust funds:

	March 31, 2014				December 31, 2013
	Fair		Unrealized		Fair		Unrealized
	Value		Gains		Value		Gains
	(In millions)
Equity securities	$	730	$	197	$	730	$	201
Debt securities	452		16		442		12
Cash and cash equivalents	13		—		19		—
	$	1,195	$	213	$	1,191	$	213

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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 $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Nuclear Decommissioning Trust Fund [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Realized gains	$ 9	$ 8
Realized losses	(7)	(7)
Proceeds from sales of securities	$ 271	$ 136

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Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2014

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Change in Asset Retirement Obligation [Table Text Block]

A reconciliation of the asset retirement obligations for the three months ended March 31, 2014 follows:

	(In millions)
Asset retirement obligations at December 31, 2013	$	1,667
Accretion	26
Revision in estimated cash flows	(5		)
Liabilities incurred	3
Asset retirement obligations at March 31, 2014	$	1,691

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Consolidated Statements of Financial Position (Parentheticals) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets, Current [Abstract]
Allowance for Doubtful Accounts Receivable	$ 28	$ 28
Statement of Stockholders' Equity [Abstract]
Common Stock, Par or Stated Value Per Share	$ 10	$ 10
Common Stock, Shares Authorized	400,000,000	400,000,000
Common Stock, Shares, Issued	138,632,324	138,632,324
Common Stock, Shares, Outstanding	138,632,324	138,632,324

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net Income	$ 137	$ 116
Other comprehensive income (loss), net of tax:
Benefit obligations, net of taxes of $(1) and $—	(1)	0
Comprehensive income	$ 136	$ 116

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Commitments and Contingencies (Notes)

3 Months Ended

Mar. 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. Since 2005, the EPA and the State of Michigan have issued additional emission reduction regulations relating to ozone, fine particulate, regional haze, mercury, and other air pollution. These rules have led to additional controls on fossil-fueled power plants to reduce nitrogen oxide, sulfur dioxide, mercury and other emissions. To comply with these requirements, DTE Electric has spent approximately $2 billion through 2013. The Company estimates DTE Electric will make capital expenditures of approximately $280 million in 2014 and up to approximately $1.2 billion of additional capital expenditures through 2021 based on current regulations. Further, 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), finalized in July 2011, required further reductions of sulfur dioxide and nitrogen oxides emissions beginning in 2012. On December 30, 2011, the U.S. Court of Appeals for the District of Columbia (D.C.) Circuit granted the motions to stay the rule, leaving DTE Electric temporarily subject to the previously existing Clean Air Interstate Rule (CAIR). On August 21, 2012, the Court issued its decision, vacating CSAPR and leaving CAIR in place. The EPA's petition seeking a rehearing of the U.S. Court of Appeals' decision regarding the CSAPR was denied on January 24, 2013. On June 24, 2013, the U.S. Supreme Court granted EPA's petition asking the Court to review the D.C. Circuit Court's decision on CSAPR. A ruling by the Supreme Court is expected by the second quarter of 2014. Notwithstanding the appeal filed with the Supreme Court, the EPA and a number of states, including Michigan, have started working on the framework of revised CSAPR regulations which we anticipate to be proposed in the next few years.

The Mercury and Air Toxics Standard (MATS) rule, formerly known as the Electric Generating Unit Maximum Achievable Control Technology (EGU MACT) Rule was finalized on December 16, 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 July 2009, DTE Energy received a Notice of Violation/Finding of Violation (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. On October 20, 2011, the EPA caused to be filed a Notice of Appeal to the U.S. Court of Appeals for the Sixth Circuit. On March 28, 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. On September 3, 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. On March 3, 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. On April 3, 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 River Rouge Unit 3.

DTE Energy and DTE Electric believe that all 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 March 2013, the Sierra Club filed suit against DTE Electric alleging violations of the Clean Air Act at four of DTE Electric's coal-fired power plants. The plaintiffs allege 1,499six-minute periods of excess opacity of air emissions from 2007-2012 at those facilities. The suit asks that the court enjoin the Company from operating the power plants except in complete compliance with applicable laws and permit requirements, pay civil penalties, conduct beneficial environmental mitigation projects, pay attorney fees and require the installation of any necessary pollution controls or to convert and/or operate the plants' boilers on natural gas to avoid additional violations and to off-set historic unlawful emissions. In December 2013, a U.S. District Court judge issued an order dismissing, without prejudice, the plaintiff's complaint allowing them to file an amended complaint by January 17, 2014. The order dismissing the complaint resulted from a considerable number of plaintiff's claims being time barred based on the statute of limitations. On January 17, 2014, the plaintiffs filed an amended complaint for the period January 13, 2008 - June 30, 2012, reducing the total number of six-minute periods from 1,499 to 1,139. DTE Electric filed an answer to the amended complaint on March 11, 2014. The resolution of this matter is not expected to have a material effect on the Company's operations or financial statements.

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. The initial rule published in 2004 was subsequently remanded and a proposed rule published in 2011. The proposed rule specified an eight year compliance timeline. Final action on this rule has been delayed and is expected in 2014. Depending on final regulations, its requirements may require modifications to some existing intake structures and could impact the rates we charge our customers. It is not possible to quantify the impact of those expected rulemakings at this time.

On April 19, 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 December 2014. DTE Electric has provided comments to the EPA. However, 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 manufactured gas plant (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 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 March 31, 2014 and at December 31, 2013, the Company had $9 million and $8 million accrued for remediation, respectively. Any significant change in assumptions, such as remediation techniques, nature and extent of contamination and regulatory requirements, could impact the estimate of remedial action costs for 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.

DTE Electric owns and operates three permitted engineered ash storage facilities to dispose of fly ash from the coal fired power plant. The EPA has published proposed rules to regulate coal ash under the authority of the Resources Conservation and Recovery Act (RCRA). The proposed rule published in June 2010 contains two primary regulatory options to regulate coal ash residue. The EPA is currently considering either designating coal ash as a “Hazardous Waste” as defined by RCRA or regulating coal ash as non-hazardous waste under RCRA. Agencies and legislatures have urged the EPA to regulate coal ash as a non-hazardous waste. If the EPA designates coal ash as a hazardous waste, the agency could apply some, or all, of the disposal and reuse standards that have been applied to other existing hazardous wastes to disposal and reuse of coal ash. Some of the regulatory actions currently being contemplated could have a significant impact on our operations and financial position and the rates we charge our customers. The rules are expected to be finalized by December 2014. It is not possible to quantify the impact of those expected rulemakings at this time.

Other

In December 2012, the EPA finalized a new set of regulations regarding the identification of non-hazardous secondary materials that are considered solid waste, industrial boiler and process heater maximum achievable control technologies (IBMACT) for major and area sources, and commercial/industrial solid waste incinerator new source performance standard and emission guidelines (CISWI). Capital costs for pollution controls and/or boiler conversions and the expenses for the one-time energy assessments are not expected to be material.

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.

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 Nuclear Electric Insurance Limited (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.

As of April 1, 2014, 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 $327 million of coverage for extra expenses over a two-year period.

In 2007, the Terrorism Risk Insurance Extension Act of 2005 (TRIA) was extended through December 31, 2014. A major change in the extension is the inclusion of “domestic” acts of terrorism in the definition of covered or “certified” acts. 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 the 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 insured 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 $127.3 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 U.S. Department of Energy (DOE) for the future storage and disposal of spent nuclear fuel from Fermi 2. DTE Electric is obligated to pay the DOE a fee of 1 mill per kWh of Fermi 2 electricity generated and sold. The fee is 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 currently employs a spent nuclear fuel storage strategy utilizing a fuel pool. The Company continues to develop its on-site dry cask storage facility and has scheduled the initial offload from the spent fuel pool in 2014. 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.

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 provided for a payment of approximately $48 million, received in August 2012, for delay-related costs experienced by DTE Electric through 2010, and a claims process for submittal of delay-related costs from 2011 through 2013. DTE Electric has begun the claims process and claims are being settled on a timely basis. The settlement proceeds reduced the cost of the dry cask storage facility assets. In January 2014, the settlement agreement was extended through 2016. 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.

In February 2013, the U.S. Court of Appeals for the District of Columbia (COA) granted a motion to reopen the fee adequacy litigation to review the DOE's latest fee adequacy report which was released in January 2013. In November 2013, the COA issued a decision ordering the DOE to submit a proposal to Congress to reduce the nuclear waste fee to zero until the DOE enacts an alternative nuclear waste management plan. In January 2014, the DOE submitted such a proposal to Congress that will take effect in 90 legislative calendar days, absent legislative action to the contrary. Simultaneously, the DOE filed a petition for rehearing of the November 2013 decision with the COA. In March 2014, the COA denied DOE's petition for rehearing. DTE Electric continues to pay fees to the U.S. government's nuclear waste fund pending further developments in this proceeding.

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 March 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, renewable energy contracts and energy trading contracts. The Company estimates that these commitments will be approximately $2.6 billion from 2014 through 2033.

The Company also estimates that 2014 capital expenditures will be approximately $1.6 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.

The Company provides services to the city of Detroit, Michigan (Detroit). Detroit filed for Chapter 9 bankruptcy protection on July 18, 2013. The Company had pre-petition accounts receivable of approximately $20 million outstanding as of the bankruptcy filing date. Detroit has been paying amounts owed in a timely manner and its accounts are substantially current. The Company does not expect Detroit's bankruptcy filing to have a material impact on its financial results.

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.

See Note 6 for a discussion of contingencies related to Regulatory Matters.

XML

Document Entity Information Document	3 Months Ended
	Mar. 31, 2014
Entity Registrant Name	DTE ELECTRIC CO
Entity Central Index Key	0000028385
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	138,632,324

XML

Retirement Benefits and Trusteed Assets (Notes)

3 Months Ended

Mar. 31, 2014

Pension and Other Postretirement Benefit Expense [Abstract]

Retirement Benefits and Trusted Assets Disclosure [Text Block]

RETIREMENT BENEFITS AND TRUSTEED ASSETS

The following table details the components of net periodic benefit costs for pension benefits and other postretirement benefits:

	Pension Benefits						Other Postretirement Benefits
	2014			2013			2014			2013
Three Months Ended March 31	(In millions)
Service cost	$	17		$	19		$	7		$	12
Interest cost	40			36			17			18
Expected return on plan assets	(48		)	(46		)	(21		)	(18		)
Amortization of:
Net actuarial loss	27			36			3			12
Prior service credit	—			—			(27		)	(17		)
Net periodic benefit cost (credit)	$	36		$	45		$	(21	)	$	7

Pension and Other Postretirement Contributions

During the first three months of 2014, the Company contributed $30 million to its pension plans. At the discretion of management, and depending upon financial market conditions, the Company may make up to an additional $115 million contribution to its pension plans in 2014.

At the discretion of management, the Company may make up to a $120 million contribution to its other postretirement benefit plans in 2014.

XML

Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Tax effect on benefit obligations	$ (1)	$ 0

XML

Financial and Other Derivative Instruments (Notes)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedges, Assets [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 and losses from the ineffective portion of any hedge 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 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 March 31, 2014 and December 31, 2013:

	March 31,		December 31,
	2014		2013
	(In millions)
FTRs — Other current assets	$	1	$	3
Total derivatives not designated as hedging instrument	$	1	$	3

The effects of derivative instruments recoverable through the PSCR mechanism when realized on the Consolidated Statements of Financial Position were $4 million and $1 million in gains related to FTRs recognized in Regulatory liabilities for the three months ended March 31, 2014 and 2013, respectively.

The following represents the cumulative gross volume of derivative contracts outstanding as of March 31, 2014:

Commodity	Number of Units
FTRs (MWh)	16,665

XML

Fair Value (Notes)

3 Months Ended

Mar. 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 March 31, 2014 and December 31, 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 March 31, 2014 and December 31, 2013:

	March 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	$	46	$	—	$	51	$	2	$	114	$	—	$	116
Nuclear decommissioning trusts	764		431		—		1,195		779		412		—		1,191
Other investments (b)	88		49		—		137		91		44		—		135
Derivative assets — FTRs	—		—		1		1		—		—		3		3
Total	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445
Assets:
Current	$	5	$	46	$	1	$	52	$	2	$	114	$	3	$	119
Noncurrent	852		480		—		1,332		870		456		—		1,326
Total Assets	$	857	$	526	$	1	$	1,384	$	872	$	570	$	3	$	1,445

_______________________________________

(a) At March 31, 2014, available-for-sale securities of $51 million, included $36 million and $15 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 both March 31, 2014 and December 31, 2013 of $7 million 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 net asset values (NAV). 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 three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Net Assets as of beginning of the period	$	3		$	1
Change in fair value recorded in regulatory assets/liabilities	4			1
Purchases, issuances and settlements:
Settlements	(6		)	(1		)
Net Assets as of March 31	$	1		$	1
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31, 2014 and 2013	$	—		$	1

No transfers between Levels 1, 2 or 3 occurred in the three months ended March 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 March 31, 2014 and December 31, 2013:

	March 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	$	13	$	—	$	—	$	13	$	10	$	—	$	—	$	10
Notes receivable — affiliates	$	—	$	—	$	—	$	—	$	200	$	—	$	—	$	200
Short-term borrowings — affiliates	$	63	$	—	$	—	$	63	$	58	$	—	$	—	$	58
Long-term debt	$	5,032	$	—	$	5,125	$	304	$	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.

The following table summarizes the fair value of the nuclear decommissioning trust fund assets:

	March 31,		December 31,
	2014		2013
	(In millions)
Fermi 2	$	1,174	$	1,172
Fermi 1	3		3
Low-level radioactive waste	18		16
Total	$	1,195	$	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:

	Three Months Ended March 31,
	2014			2013
	(In millions)
Realized gains	$	9		$	8
Realized losses	$	(7	)	$	(7	)
Proceeds from sales of securities	$	271		$	136

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:

	March 31, 2014				December 31, 2013
	Fair		Unrealized		Fair		Unrealized
	Value		Gains		Value		Gains
	(In millions)
Equity securities	$	730	$	197	$	730	$	201
Debt securities	452		16		442		12
Cash and cash equivalents	13		—		19		—
	$	1,195	$	213	$	1,191	$	213

The debt securities at March 31, 2014 and December 31, 2013 had an average maturity of approximately 7 years, respectively. 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. DTE Electric recognized $33 million and $31 million of unrealized losses as Regulatory assets at March 31, 2014 and December 31, 2013, respectively. Since the decommissioning of Fermi 1 is funded by DTE Electric rather than through a regulatory recovery mechanism, there is no corresponding regulatory asset treatment. Therefore, unrealized losses incurred by the Fermi 1 trust are recognized in earnings immediately. There were no unrealized losses recognized in the three months ended March 31, 2014 and 2013 for Fermi 1.

Other Securities

At March 31, 2014 and December 31, 2013, the securities were comprised primarily of money market and equity securities. During the three months ended March 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 March 31, 2014 and 2013 were $2 million and $7 million, respectively.

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Financial and Other Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedges, Assets [Abstract]

Fair value of derivative instruments

The following table presents the fair value of derivative instruments as of March 31, 2014 and December 31, 2013:

	March 31,		December 31,
	2014		2013
	(In millions)
FTRs — Other current assets	$	1	$	3
Total derivatives not designated as hedging instrument	$	1	$	3

Volume of Commodity Contracts [Table Text Block]

The following represents the cumulative gross volume of derivative contracts outstanding as of March 31, 2014:

Commodity	Number of Units
FTRs (MWh)	16,665

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

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.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

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 March 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 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.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive income (loss) is the change in common shareholders' equity during a period from transactions and events from non-owner sources, including net income. As shown in the following tables, amounts recorded to accumulated other comprehensive loss for the three months ended March 31, 2014 reflected changes in benefit obligations, consisting of deferred actuarial losses, prior service costs and transition amounts related to pension and other postretirement benefit plans.

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

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.

Fair Value Measurement, Policy [Policy Text Block]

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 March 31, 2014 and December 31, 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, Policy [Policy Text Block]

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 net asset values (NAV). 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 [Policy Text Block]

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, Policy [Policy Text Block]

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, Policy [Policy Text Block]

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 and losses from the ineffective portion of any hedge 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 recoverable through the PSCR mechanism when settled. This results in the deferral of unrealized gains and losses as Regulatory assets or liabilities until realized.

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Long-Term Debt (Notes)

3 Months Ended

Mar. 31, 2014

Long-term Debt, Unclassified [Abstract]

Long-term Debt [Text Block]

LONG-TERM DEBT

Debt Issuances

In March 2014, DTE Electric agreed to issue $150 million of 4.60%, 30-year mortgage bonds and $100 million of 3.77%, 12-year mortgage bonds to a group of institutional investors in a private placement transaction. The bonds are expected to close and fund in June 2014. Proceeds will be used for the repayment of existing indebtedness and for 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
				$	113

In April 2014, DTE Electric called $31 million of 2.35% tax exempt revenue bonds and $32 million of 4.65% tax exempt revenue bonds with final maturities of 2024 and 2028, respectively.

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Asset Retirement Obligations (Notes)

3 Months Ended

Mar. 31, 2014

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS

A reconciliation of the asset retirement obligations for the three months ended March 31, 2014 follows:

	(In millions)
Asset retirement obligations at December 31, 2013	$	1,667
Accretion	26
Revision in estimated cash flows	(5		)
Liabilities incurred	3
Asset retirement obligations at March 31, 2014	$	1,691

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Regulatory Matters (Notes)

3 Months Ended

Mar. 31, 2014

Public Utilities, General Disclosures [Abstract]

Regulatory Matters

REGULATORY MATTERS

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.

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 nominal 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-related purchased power costs. Resolution of this matter is expected in 2014.

2013 PSCR Year — In March 2014, DTE Electric filed the 2013 PSCR reconciliation calculating a net over-recovery of $54 million that includes an under-recovery of $87 million for the 2012 PSCR year.

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Short-Term Credit Arrangements and Borrowings (Notes)

3 Months Ended

Mar. 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 with a syndicate of 19 banks that can be used for general corporate borrowings, but is intended to provide liquidity support for the Company's commercial paper program. No one bank provides more than 8.7% of the commitment in the facility. Borrowings under the facility are available at prevailing short-term interest rates. The facility will expire in April 2018. There were no amounts outstanding against the facility at March 31, 2014 and 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. In the agreement, “total funded debt” means all indebtedness of the Company and its consolidatedsubsidiaries, including capital lease obligations, hedge agreements and guarantees of third parties' debt, but excluding contingent obligations and nonrecourse and junior subordinated debt. “Capitalization” means the sum of (a) total funded debt plus (b) “consolidated net worth,” which is equal to consolidated total stockholders' equity of the Company and its consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United States of America. At March 31, 2014, the total funded debt to total capitalization ratio for DTE Electric was 0.50 to 1 and is in compliance with this financial covenant.

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Fair Value (Fair Value of Financial Instruments) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value of Financial Instruments [Line Items]
Notes receivable, excluding capital leases Carrying Amount	$ 13	$ 10
Notes receivable - affiliates Current	0	200
Long-term debt Carrying Amount	5,032	5,146
Fair Value, Inputs, Level 1 [Member]
Fair Value of Financial Instruments [Line Items]
Notes receivable, excluding capital leases Fair Value	0	0
Notes receivable - affiliates, fair value	0	0
Long-term debt Fair Value	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments [Line Items]
Notes receivable, excluding capital leases Fair Value	0	0
Notes receivable - affiliates, fair value	0	0
Long-term debt Fair Value	5,125	5,253
Fair Value, Inputs, Level 3 [Member]
Fair Value of Financial Instruments [Line Items]
Notes receivable, excluding capital leases Fair Value	13	10
Notes receivable - affiliates, fair value	0	200
Long-term debt Fair Value	304	136
Affiliates [Member]
Fair Value of Financial Instruments [Line Items]
Short-term borrowings - affiliates Carrying Amount	63	58
Affiliates [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value of Financial Instruments [Line Items]
Short-term Debt, Fair Value	0	0
Affiliates [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments [Line Items]
Short-term Debt, Fair Value	0	0
Affiliates [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value of Financial Instruments [Line Items]
Short-term Debt, Fair Value	$ 63	$ 58

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

As shown in the following tables, amounts recorded to accumulated other comprehensive loss for the three months ended March 31, 2014 reflected changes in benefit obligations, consisting of deferred actuarial losses, prior service costs and transition amounts related to pension and other postretirement benefit plans.

	Changes in Accumulated Other Comprehensive Loss by Component (a)
	Three Months Ended March 31, 2014
	Net Unrealized Gain/(Loss) on Investments		Benefit Obligations			Total
	(In millions)
Beginning balance, December 31, 2013	$	1	$	(17	)	$	(16	)
Other comprehensive income before reclassifications	—		(1		)	(1		)
Amounts reclassified from Accumulated other comprehensive income	—		—			—
Net current-period other comprehensive income	—		(1		)	(1		)
Ending balance, March 31, 2014	$	1	$	(18	)	$	(17	)

_______________________________________

(a) All amounts are net of tax.

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The Company has certain intangible assets relating to emission allowances and renewable energy credits as shown below:

	March 31,		December 31,
	2014		2013
	(In millions)
Emission allowances	$	2	$	2
Renewable energy credits	50		51
	52		53
Less current intangible assets	13		12
	$	39	$	41

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Retirement Benefits and Trusted Assets (Tables)

3 Months Ended

Mar. 31, 2014

Defined Benefit Plan, Assets for Plan Benefits [Abstract]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The following table details the components of net periodic benefit costs for pension benefits and other postretirement benefits:

	Pension Benefits						Other Postretirement Benefits
	2014			2013			2014			2013
Three Months Ended March 31	(In millions)
Service cost	$	17		$	19		$	7		$	12
Interest cost	40			36			17			18
Expected return on plan assets	(48		)	(46		)	(21		)	(18		)
Amortization of:
Net actuarial loss	27			36			3			12
Prior service credit	—			—			(27		)	(17		)
Net periodic benefit cost (credit)	$	36		$	45		$	(21	)	$	7

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Retirement Benefits and Trusteed Assets Retirement Benefits and Trusteed Assets (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated Future Employer Contributions in Current Fiscal Year	$ 115
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated Future Employer Contributions in Current Fiscal Year	120
Qualified Plans [Member] | Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions by Employer	$ 30

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Financial and Other Derivative Instruments (Details Textuals) (FTR [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
FTR [Member]
Derivative [Line Items]
Effect of Derivative Instruments Recoverable Through PSCR Mechanism	$ 4	$ 1

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating Activities
Net Income	$ 137	$ 116
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	228	212
Nuclear fuel amortization	5	9
Allowance for equity funds used during construction	(5)	(3)
Deferred income taxes	42	27
Asset (gains), losses and reserves, net	0	(1)
Changes in assets and liabilities:
Accounts receivable, net	6	(3)
Inventories	55	52
Accounts payable	73	(17)
Regulatory assets and liabilities	(135)	163
Accrued pension liability — affiliates	(20)	(92)
Accrued postretirement liability — affiliates	(15)	(125)
Other assets	(28)	(31)
Other liabilities	(31)	(66)
Net cash from operating activities	312	241
Investing Activities
Plant and equipment expenditures	(354)	(255)
Restricted cash for debt redemption, principally Securitization	65	57
Notes receivable from affiliate	200	0
Proceeds from sale of nuclear decommissioning trust fund assets	271	136
Investments in nuclear decommissioning trust funds	(275)	(140)
Other Investments	8	6
Net cash used for investing activities	(101)	(208)
Financing Activities
Issuance of long-term debt, net of issuance costs	0	372
Redemption of long-term debt	(113)	(139)
Short-term borrowings - other	0	(130)
Short-term borrowings - Affiliate	5	(29)
Dividends on common stock	(93)	(85)
Other	(3)	(3)
Net cash used for financing activities	(204)	(14)
Net Increase (Decrease) in Cash and Cash Equivalents	7	19
Cash and Cash Equivalents at Beginning of Period	27
Cash and Cash Equivalents at End of Period	34
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Plant and equipment expenditures in accounts payable	$ 176	$ 106

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Significant Accounting Policies (Note)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SIGNIFICANT ACCOUNTING POLICIES

Comprehensive Income (Loss)

Comprehensive income (loss) is the change in common shareholders' equity during a period from transactions and events from non-owner sources, including net income. As shown in the following tables, amounts recorded to accumulated other comprehensive loss for the three months ended March 31, 2014 reflected changes in benefit obligations, consisting of deferred actuarial losses, prior service costs and transition amounts related to pension and other postretirement benefit plans.

	Changes in Accumulated Other Comprehensive Loss by Component (a)
	Three Months Ended March 31, 2014
	Net Unrealized Gain/(Loss) on Investments		Benefit Obligations			Total
	(In millions)
Beginning balance, December 31, 2013	$	1	$	(17	)	$	(16	)
Other comprehensive income before reclassifications	—		(1		)	(1		)
Amounts reclassified from Accumulated other comprehensive income	—		—			—
Net current-period other comprehensive income	—		(1		)	(1		)
Ending balance, March 31, 2014	$	1	$	(18	)	$	(17	)

_______________________________________

(a) All amounts are net of tax.

Intangible Assets

The Company has certain intangible assets relating to emission allowances and renewable energy credits as shown below:

	March 31,		December 31,
	2014		2013
	(In millions)
Emission allowances	$	2	$	2
Renewable energy credits	50		51
	52		53
Less current intangible assets	13		12
	$	39	$	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.

Income Taxes

The Company's effective tax rate for the three months ended March 31, 2014 was 36% as compared to 35% for the three months ended March 31, 2013.

DTE Electric had an income tax payable of $17 million at March 31, 2014 and an income tax receivable of $23 million at December 31, 2013 due DTE Energy.

The Company had $2 million of unrecognized tax benefits at March 31, 2014, that, if recognized, would favorably impact its effective tax rate. The Company does not anticipate any material changes to the unrecognized tax benefits in the next twelve months.

Stock-Based Compensation

The Company received an allocation of costs from DTE Energy associated with stock-based compensation of $19 million and $13 million for the three months ended March 31, 2014 and March 31, 2013, respectively.

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Basis of Presentation (Details Textuals) (USD $) In Millions, unless otherwise specified		3 Months Ended
	Mar. 31, 2014 customers	Mar. 31, 2013 Proceeds from sale of nuclear decommissioning trust funds [Member]	Mar. 31, 2013 Investment in nuclear decommissioning trust funds [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of Electric Customers	2,100,000
Prior Period Reclassification Adjustment		$ (124)	$ 124
Significant Potential Exposure to Loss Due to VIE Long-Term Purchase Contracts	$ 0

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Fair Value (Details Textuals) (USD $)	3 Months Ended										3 Months Ended	12 Months Ended			3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Fair Value, Measurements, Recurring [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member]	Mar. 31, 2014 Restricted Assets [Member] Fair Value, Measurements, Recurring [Member]	Dec. 31, 2013 Restricted Assets [Member] Fair Value, Measurements, Recurring [Member]	Mar. 31, 2014 Other Investments [Member] Fair Value, Measurements, Recurring [Member]	Dec. 31, 2013 Other Investments [Member] Fair Value, Measurements, Recurring [Member]	Mar. 31, 2014 Other Investments [Member] Fair Value, Measurements, Recurring [Member] Equity [Member]	Dec. 31, 2013 Other Investments [Member] Fair Value, Measurements, Recurring [Member] Equity [Member]	Mar. 31, 2014 Nuclear Decommissioning Trust Fund [Member]	Dec. 31, 2013 Nuclear Decommissioning Trust Fund [Member]	Mar. 31, 2014 Fermi 2 [Member]	Dec. 31, 2013 Fermi 2 [Member]	Mar. 31, 2014 Fermi 1 [Member]	Mar. 31, 2013 Fermi 1 [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash equivalents			$ 51,000,000	$ 116,000,000	$ 36,000,000	$ 100,000,000	$ 15,000,000	$ 16,000,000			$ 13,000,000	$ 19,000,000
Available-for-sale Securities, Fair Value Disclosure									7,000,000	7,000,000
Transfers Between Levels 1, 2 and 3	0	0
Average Maturity of Debt Securities											7 years	7 years
Unrealized losses recognized as regulatory assets													33,000,000	31,000,000
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net															0	0
Unrealized Losses on Available for Sale Securities	0	0
Trading Securities, Change in Unrealized Holding Gain (Loss)	$ 2,000,000	$ 7,000,000

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Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2014

Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

The following table summarizes the major balance sheet items as of March 31, 2014 and December 31, 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.

	March 31,		December 31,
	2014		2013
	(In millions)
ASSETS
Restricted cash	$	36	$	100
Accounts receivable	40		34
Securitized regulatory assets	182		231
Other assets	3		4
	$	261	$	369
LIABILITIES
Accounts payable and accrued current liabilities	$	1	$	7
Current portion long-term debt	202		196
Current regulatory liabilities	41		43
Securitization bonds	—		105
Other long-term liabilities	8		8
	$	252	$	359