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Fair Value (Tables)
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:
September 30, 2021December 31, 2020
Level
1
Level
2
Level
3
Other(a)
Netting(b)
Net BalanceLevel
1
Level
2
Level
3
Other(a)
Netting(b)
Net Balance
(In millions)
Assets
Cash equivalents(c)
$9 $ $ $ $ $9 $438 $— $— $— $— $438 
Nuclear decommissioning trusts
Equity securities944   196  1,140 947 — — 222 — 1,169 
Fixed income securities127 429  102  658 102 371 — 82 — 555 
Private equity and other   175  175 — — — 104 — 104 
Cash equivalents34     34 27 — — — — 27 
Other investments(d)
Equity securities61     61 55 — — — — 55 
Fixed income securities7     7 — — — — 
Cash equivalents86     86 97 — — — — 97 
Derivative assets
Commodity contracts(e)
Natural gas579 146 53  (715)63 99 74 60 — (156)77 
Electricity 707 245  (627)325 — 128 52 — (120)60 
Environmental & Other 598 12  (570)40 — 150 — (135)19 
Total derivative assets579 1,451 310  (1,912)428 99 352 116 — (411)156 
Total$1,847 $1,880 $310 $473 $(1,912)$2,598 $1,773 $723 $116 $408 $(411)$2,609 
Liabilities
Derivative liabilities
Commodity contracts(e)
Natural gas$(425)$(297)$(333)$ $664 $(391)$(88)$(59)$(76)$— $151 $(72)
Electricity (576)(340) 614 (302)— (126)(42)— 125 (43)
Environmental & Other (581)  570 (11)— (137)— — 129 (8)
Foreign currency exchange contracts (5)   (5)— (5)— — (5)
Total$(425)$(1,459)$(673)$ $1,848 $(709)$(88)$(327)$(118)$— $405 $(128)
Net Assets (Liabilities) at end of period$1,422 $421 $(363)$473 $(64)$1,889 $1,685 $396 $(2)$408 $(6)$2,481 
Assets
Current$506 $1,183 $258 $ $(1,591)$356 $532 $260 $92 $— $(330)$554 
Noncurrent1,341 697 52 473 (321)2,242 1,241 463 24 408 (81)2,055 
Total Assets$1,847 $1,880 $310 $473 $(1,912)$2,598 $1,773 $723 $116 $408 $(411)$2,609 
Liabilities
Current$(409)$(1,138)$(464)$ $1,546 $(465)$(84)$(223)$(79)$— $318 $(68)
Noncurrent(16)(321)(209) 302 (244)(4)(104)(39)— 87 (60)
Total Liabilities$(425)$(1,459)$(673)$ $1,848 $(709)$(88)$(327)$(118)$— $405 $(128)
Net Assets (Liabilities) at end of period$1,422 $421 $(363)$473 $(64)$1,889 $1,685 $396 $(2)$408 $(6)$2,481 
_______________________________________
(a)Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.
(c)Amounts consisted of $1 million and $2 million of cash equivalents included in Restricted cash on DTE Energy's Consolidated Statements of Financial Position at September 30, 2021 and December 31, 2020, respectively. All other amounts are included in Cash and cash equivalents on the Consolidated Statements of Financial Position.
(d)Excludes cash surrender value of life insurance investments.
(e)For contracts with a clearing agent, DTE Energy nets all activity across commodities. This can result in some individual commodities having a contra balance.
The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:
September 30, 2021December 31, 2020
Level 1Level 2Level 3
Other(a)
Net BalanceLevel 1Level 2Level 3
Other(a)
Net Balance
(In millions)
Assets
Cash equivalents$ $ $ $ $ $$— $— $— $
Nuclear decommissioning trusts
Equity securities944   196 1,140 947 — — 222 1,169 
Fixed income securities127 429  102 658 102 371 — 82 555 
Private equity and other   175 175 — — — 104 104 
Cash equivalents34    34 27 — — — 27 
Other investments
Equity securities18    18 16 — — — 16 
Cash equivalents11    11 11 — — — 11 
Derivative assets — FTRs  12  12 — — — 
Total$1,134 $429 $12 $473 $2,048 $1,107 $371 $$408 $1,890 
Assets
Current$ $ $12 $ $12 $$— $$— $
Noncurrent1,134 429  473 2,036 1,103 371 — 408 1,882 
Total Assets$1,134 $429 $12 $473 $2,048 $1,107 $371 $$408 $1,890 
_______________________________________
(a)Amounts represent assets valued at NAV as a practical expedient for fair value.
Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy:
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
Natural GasElectricityOtherTotalNatural GasElectricityOtherTotal
(In millions)
Net Assets (Liabilities) as of June 30$(181)$(49)$15 $(215)$20 $16 $10 $46 
Transfers from Level 3 into Level 2    (1)— — (1)
Total gains (losses)
Included in earnings(a)
(162)(21) (183)(80)37 (42)
Recorded in Regulatory liabilities  (1)(1)— — 
Purchases, issuances, and settlements
Settlements63 (25)(2)36 22 (48)(13)(39)
Net Assets (Liabilities) as of September 30$(280)$(95)$12 $(363)$(39)$$$(27)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30(a)
$(109)$(30)$(2)$(141)$(57)$11 $(1)$(47)
_______________________________________
(a)Amounts are reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, gas, and other — non-utility in DTE Energy's Consolidated Statements of Operations.
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Natural GasElectricityOtherTotalNatural GasElectricityOtherTotal
(In millions)
Net Assets (Liabilities) as of December 31$(16)$10 $4 $(2)$(15)$16 $$
Transfers from Level 3 into Level 2    (5)— — (5)
Total gains (losses)
Included in earnings(a)
(356)(5) (361)(44)90 (7)39 
Recorded in Regulatory liabilities  14 14 — — 21 21 
Purchases, issuances, and settlements
Settlements92 (100)(6)(14)25 (101)(10)(86)
Net Assets (Liabilities) as of September 30$(280)$(95)$12 $(363)$(39)$$$(27)
Total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30(a)
$(301)$(54)$(17)$(372)$(20)$53 $(17)$16 
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30$ $ $12 $12 $— $— $$
_______________________________________
(a)Amounts are reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, gas, and other — non-utility in DTE Energy's Consolidated Statements of Operations.
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Electric:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(In millions)
Net Assets as of beginning of period$15 $10 $4 $
Change in fair value recorded in Regulatory liabilities(1)14 21 
Purchases, issuances, and settlements
Settlements(2)(12)(6)(17)
Net Assets as of September 30$12 $$12 $
Total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30$ $— $12 $
Unobservable Inputs Related to Level 3 Assets and Liabilities
The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:
September 30, 2021
Commodity ContractsDerivative AssetsDerivative LiabilitiesValuation TechniquesUnobservable InputRangeWeighted Average
(In millions)
Natural Gas$53 $(333)Discounted Cash FlowForward basis price (per MMBtu)$(1.33)$3.53 /MMBtu$(0.04)/MMBtu
Electricity$245 $(340)Discounted Cash FlowForward basis price (per MWh)$(8)$10 /MWh$(1)/MWh
December 31, 2020
Commodity ContractsDerivative AssetsDerivative LiabilitiesValuation TechniquesUnobservable InputRangeWeighted Average
(In millions)
Natural Gas$60 $(76)Discounted Cash FlowForward basis price (per MMBtu)$(0.86)$2.50 /MMBtu$(0.07)/MMBtu
Electricity$52 $(42)Discounted Cash FlowForward basis price (per MWh)$(9)$/MWh$— /MWh
Carrying Amount of Fair Value of Financial Instruments
The following table presents the carrying amount and fair value of financial instruments for DTE Energy:
September 30, 2021December 31, 2020
CarryingFair ValueCarryingFair Value
AmountLevel 1Level 2Level 3AmountLevel 1Level 2Level 3
(In millions)
Notes receivable(a), excluding lessor finance leases
$142 $ $ $142 $141 $— $— $141 
Short-term borrowings$361 $ $361 $ $38 $— $38 $— 
Notes payable(b)
$5 $ $ $5 $19 $— $— $19 
Long-term debt(c)
$17,222 $2,241 $15,486 $1,104 $19,439 $2,547 $18,230 $1,397 
_______________________________________
(a)Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.
(b)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
(c)Includes debt due within one year and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.
The following table presents the carrying amount and fair value of financial instruments for DTE Electric:
September 30, 2021December 31, 2020
CarryingFair ValueCarryingFair Value
AmountLevel 1Level 2Level 3AmountLevel 1Level 2Level 3
(In millions)
Notes receivable(a)
$17 $ $ $17 $16 $— $— $16 
Short-term borrowings — affiliates$32 $ $ $32 $101 $— $— $101 
Short-term borrowings — other$159 $ $159 $ $— $— $— $— 
Notes payable(b)
$4 $ $ $4 $17 $— $— $17 
Long-term debt(c)
$8,906 $ $9,952 $150 $8,236 $— $9,579 $379 
_______________________________________
(a)Included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(c)Includes debt due within one year and excludes finance lease obligations. Carrying value also includes unamortized debt discounts and issuance costs.
Fair Value of Nuclear Decommissioning Trust Fund Assets
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
September 30, 2021December 31, 2020
(In millions)
Fermi 2$1,989 $1,841 
Fermi 13 
Low-level radioactive waste15 11 
$2,007 $1,855 
Schedule of Realized Gains and Losses and Proceeds from Sale of Securities by Nuclear Decommissioning Trust Funds The following table sets forth DTE Electric's gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(In millions)
Realized gains$21 $38 $80 $172 
Realized losses$(1)$(11)$(9)$(103)
Proceeds from sale of securities$217 $816 $854 $2,054 
Fair Value and Unrealized Gains and Losses for Nuclear Decommissioning Trust Funds
The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:
September 30, 2021December 31, 2020
Fair
Value
Unrealized
Gains
Unrealized
Losses
Fair
Value
Unrealized
Gains
Unrealized
Losses
(In millions)
Equity securities$1,140 $507 $(8)$1,169 $481 $(6)
Fixed income securities658 24 (5)555 20 (1)
Private equity and other175 41 (2)104 — — 
Cash equivalents34   27 — — 
$2,007 $572 $(15)$1,855 $501 $(7)
Fair Value of the Fixed Income Securities Held in Nuclear Decommissioning Trust Funds
The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:
September 30, 2021
(In millions)
Due within one year$11 
Due after one through five years138 
Due after five through ten years112 
Due after ten years295 
$556 
Summary of Gains (Losses) Related to the Trust The following table summarizes the Registrant's gains (losses) related to the trust:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(In millions)
Gains (losses) related to equity securities$(1)$$3 $(4)
Gains (losses) related to fixed income securities —  (3)
$(1)$$3 $(7)