Retirement Benefits and Trusteed Assets

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Retirement Benefits and Trusteed Assets

RETIREMENT BENEFITS AND TRUSTEED ASSETS

DTE Energy's subsidiary, DTE Energy Corporate Services, LLC, sponsors defined benefit pension plans and other postretirement benefit plans covering certain employees of the Registrants. Participants of all plans are solely DTE Energy and affiliate participants.

The following table details the components of net periodic benefit costs (credits) for pension benefits and other postretirement benefits for DTE Energy:

	Pension Benefits				Other Postretirement Benefits
	2024		2023		2024		2023
	(In millions)
Three Months Ended March 31,
Service cost	$	14	$	14	$	4	$	4
Interest cost	52		54		16		16
Expected return on plan assets	(85)		(88)		(30)		(28)
Amortization of:
Net actuarial loss	15		2		2		3
Prior service credit	(1)		(1)		(3)		(4)
Settlements	—		2		—		—
Net periodic benefit credit	$	(5)	$	(17)	$	(11)	$	(9)

DTE Electric accounts for its participation in DTE Energy's qualified and non-qualified pension plans by applying multiemployer accounting. DTE Electric accounts for its participation in other postretirement benefit plans by applying multiple-employer accounting. Within multiemployer and multiple-employer plans, participants pool plan assets for investment purposes and to reduce the cost of plan administration. The primary difference between plan types is that assets contributed in multiemployer plans can be used to provide benefits for all participating employers, while assets contributed within a multiple-employer plan are restricted for use by the contributing employer.

As a result of multiemployer accounting treatment, capitalized costs associated with these plans are reflected in Property, plant, and equipment in DTE Electric's Consolidated Statements of Financial Position. The same capitalized costs are reflected as Regulatory assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.

DTE Energy's subsidiaries are responsible for their share of qualified and non-qualified pension benefit costs. DTE Electric's allocated portion of pension benefit costs included in regulatory assets and liabilities, operation and maintenance expense, other income and deductions, and capital expenditures was a credit of $1 million and $9 million for the three months ended March 31, 2024 and 2023, respectively. These amounts may include recognized contractual termination benefit charges, curtailment gains, and settlement charges.

The following table details the components of net periodic benefit costs (credits) for other postretirement benefits for DTE Electric:

	Three Months Ended March 31,
	2024		2023
	(In millions)
Service cost	$	3	$	3
Interest cost	12		12
Expected return on plan assets	(20)		(18)
Amortization of:
Prior service credit	(1)		(3)
Net periodic benefit credit	$	(6)	$	(6)

Pension and Other Postretirement Contributions

No contributions are currently expected for DTE Energy’s postretirement benefit plans in 2024, and contributions to the qualified pension plans are expected to be nominal. Plans may be updated at the discretion of management and depending on economic and financial market conditions.