DTE Energy Company Annual Report 2015

Plain-text annual report

UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549______________________________________________FORM 10-KANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year Ended December 31, 2015Commission File Number Registrants, State of Incorporation, Address, andTelephone Number I.R.S. Employer Identification No.1-11607 DTE Energy Company(a Michigan corporation)One Energy PlazaDetroit, Michigan 48226-1279313-235-4000 38-3217752 1-2198 DTE Electric Company(a Michigan corporation)One Energy PlazaDetroit, Michigan 48226-1279313-235-4000 38-0478650Securities registered pursuant to Section 12(b) of the Act:Registrant Title of Each Class Name of Exchange on which RegisteredDTE Energy Company (DTE Energy) Common stock, without par value New York Stock Exchange DTE Energy 2011 Series I 6.5% Junior Subordinated Debentures due 2061 New York Stock Exchange DTE Energy 2012 Series C 5.25% Junior Subordinated Debentures due 2062 New York Stock Exchange DTE Electric Company (DTE Electric) None NoneSecurities registered pursuant to Section 12(g) of the Act:DTE Energy None DTE Electric NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.DTE Energy Yes oo No x DTE Electric Yes xx No ooIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.DTE Energy Yes oo No x DTE Electric Yes oo No xxIndicate 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 preceding12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.DTE Energy Yes xx No o DTE Electric Yes xx No ooIndicate 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 andposted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).DTE Energy Yes xx No o DTE Electric Yes xx No ooIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant'sknowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.DTE Energy x DTE Electric xxIndicate 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 “largeaccelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.DTE EnergyLarge accelerated filer xxAccelerated filer oNon-accelerated filer oSmaller reporting company o (Do not check if a smaller reporting company)DTE ElectricLarge accelerated filer oAccelerated filer oNon-accelerated filer xxSmaller reporting company 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).DTE Energy Yes oo No x DTE Electric Yes oo No xxOn June 30, 2015, the aggregate market value of DTE Energy's voting and non voting common equity held by non-affiliates was approximately $12.9 billion(based on the NewYork Stock Exchange closing price on such date).Number of shares of Common Stock outstanding at January 29, 2016:Registrant Description SharesDTE Energy Common Stock, without par value 179,476,008 DTE Electric Common Stock, $10 par value, directly-owned by DTE Energy 138,632,324DOCUMENTS INCORPORATED BY REFERENCECertain information in DTE Energy's definitive Proxy Statement for its 2016 Annual Meeting of Common Shareholders to be held May 5, 2016, which will be filed with theSecurities and Exchange Commission pursuant to Regulation 14A, not later than 120 days after the end of the registrant’s fiscal year covered by this report on Form 10-K, isincorporated herein by reference to Part III (Items 10, 11, 12, 13, and 14) of this Form 10-K.This combined Form 10-K is filed separately by two registrants: DTE Energy and DTE Electric. Information contained herein relating to any individual registrant is filed by suchregistrant solely on its own behalf. DTE Electric makes no representation as to information relating exclusively to DTE Energy.DTE Electric, a wholly-owned subsidiary of DTE Energy, meets the conditions set forth in General Instructions I(1)(a) and (b) of Form 10-K and is therefore filing this form withthe reduced disclosure format specified in General Instruction I(2) of Form 10-K. TABLE OF CONTENTS Page Definitions1 Filing Format3 Forward-Looking Statements3PART IItems 1. & 2.Business and Properties5Item 1A.Risk Factors18Item 1B.Unresolved Staff Comments22Item 3.Legal Proceedings22Item 4.Mine Safety Disclosures22PART IIItem 5.Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities23Item 6.Selected Financial Data26Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations26Item 7A.Quantitative and Qualitative Disclosures About Market Risk47Item 8.Financial Statements and Supplementary Data50Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure133Item 9A.Controls and Procedures133Item 9B.Other Information133PART IIIItem 10.Directors, Executive Officers, and Corporate Governance133Item 11.Executive Compensation133Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters133Item 13.Certain Relationships and Related Transactions, and Director Independence133Item 14.Principal Accountant Fees and Services133PART IVItem 15.Exhibits and Financial Statement Schedules135 Signatures146DEFINITIONSAFUDCAllowance for Funds Used During Construction AROAsset Retirement Obligation ASUAccounting Standards Update issued by the FASB CFTCU.S. Commodity Futures Trading Commission COAU.S. Court of Appeals for the District of Columbia DOEU.S. Department of Energy DTE ElectricDTE Electric Company (a direct wholly-owned subsidiary of DTE Energy) and subsidiary companies DTE EnergyDTE Energy Company, directly or indirectly the parent of DTE Electric, DTE Gas, and numerous non-utility subsidiaries DTE GasDTE Gas Company (an indirect wholly-owned subsidiary of DTE Energy) and subsidiary companies EPAU.S. Environmental Protection Agency FASBFinancial Accounting Standards Board FERCFederal Energy Regulatory Commission FOVFinding of Violation FTRsFinancial Transmission Rights are financial instruments that entitle the holder to receive payments related to costs incurredfor congestion on the transmission grid. GCRA Gas Cost Recovery mechanism authorized by the MPSC that allows DTE Gas to recover through rates its natural gas costs. GHGsGreenhouse gases IRMInfrastructure Recovery Mechanism IRSInternal Revenue Service MBTMichigan Business Tax MCITMichigan Corporate Income Tax MCOAMichigan Court of Appeals MDEQMichigan Department of Environmental Quality MGPManufactured Gas Plant MISOMidcontinent Independent System Operator, Inc. MPSCMichigan Public Service Commission MTMMark-to-market NAVNet Asset Value NEILNuclear Electric Insurance Limited NEXUSNEXUS Gas Transmission, LLC Non-utilityAn entity that is not a public utility. Its conditions of service, prices of goods and services, and other operating relatedmatters are not directly regulated by the MPSC. NOVNotice of Violation NRCU.S. Nuclear Regulatory Commission PLDCity of Detroit's Public Lighting Department 1DEFINITIONSProduction tax creditsTax credits as authorized under Sections 45K and 45 of the Internal Revenue Code that are designed to stimulate investmentin and development of alternate fuel sources. The amount of a production tax credit can vary each year as determined by theIRS. PSCRA Power Supply Cost Recovery mechanism authorized by the MPSC that allows DTE Electric to recover through rates itsfuel, fuel-related, and purchased power costs. RDMA Revenue Decoupling Mechanism authorized by the MPSC that is designed to minimize the impact on revenues of changesin average customer usage. REFReduced Emissions Fuel RegistrantsDTE Energy and DTE Electric Retail accessMichigan legislation provided customers the option of access to alternative suppliers for electricity and natural gas. SECSecurities and Exchange Commission SecuritizationDTE 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. ShenangoShenango Incorporated is a coke battery plant located in Pittsburgh, PA, and is included in the Power and Industrial Projectssegment. TRIATerrorism Risk Insurance Program Reauthorization Act of 2015 TRMA Transitional Reconciliation Mechanism authorized by the MPSC that allows DTE Electric to recover through rates thedeferred net incremental revenue requirement associated with the transition of PLD customers to DTE Electric's distributionsystem. VEBAVoluntary Employees Beneficiary Association VIEVariable Interest EntityUnits of Measurement BcfBillion cubic feet of natural gas BTUHeat value (energy content) of fuel kWhKilowatthour of electricity McfThousand cubic feet of gas MMBtuOne million BTU MMcf/dMillion cubic feet of gas per day MWMegawatt of electricity MWhMegawatthour of electricity2FILING FORMATThis combined Form 10-K is separately filed by DTE Energy and DTE Electric. Information in this combined Form 10-K relating to each individualRegistrant is filed by such Registrant on its own behalf. DTE Electric makes no representation regarding information relating to any other companiesaffiliated with DTE Energy other than its own subsidiaries. Neither DTE Energy, nor any of DTE Energy’s other subsidiaries (other than DTE Electric), hasany obligation in respect of DTE Electric's debt securities, and holders of such debt securities should not consider the financial resources or results ofoperations of DTE Energy nor any of DTE Energy’s other subsidiaries (other than DTE Electric and its own subsidiaries (in relevant circumstances)) inmaking a decision with respect to DTE Electric's debt securities. Similarly, none of DTE Electric nor any other subsidiary of DTE Energy has any obligationin respect of debt securities of DTE Energy. This combined Form 10-K should be read in its entirety. No one section of this combined Form 10-K deals withall aspects of the subject matter of this combined Form 10-K.FORWARD-LOOKING STATEMENTSCertain information presented herein includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995with respect to the financial condition, results of operations, and businesses of the Registrants. 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 aresubject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected,estimated, or budgeted. Many factors may impact forward-looking statements of the Registrants including, but not limited to, the following:•impact of regulation by the EPA, FERC, MPSC, NRC, and CFTC, as well as other applicable governmental proceedings and regulations,including any associated impact on rate structures;•the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislativeamendments and retail access programs;•economic conditions and population changes in the Registrants' geographic area resulting in changes in demand, customer conservation, andthefts of electricity and, for DTE Energy, natural gas;•environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal andstate 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, purchased power, and natural gas;•volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy;•impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations;•impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations;•volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations;•changes in the financial condition of DTE Energy's significant customers and strategic partners;•the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expenseand 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;3•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 risk of a major safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, ordistribution facility;•the availability, cost, coverage, and terms of insurance and stability of insurance providers;•cost reduction efforts and the maximization of plant and distribution system performance;•the effects of competition;•changes in and application of accounting standards and financial reporting regulations;•changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues;•contract disputes, binding arbitration, litigation, and related appeals; and•the risks discussed in the Registrants' public filings with the Securities and Exchange Commission.New factors emerge from time to time. The Registrants cannot predict what factors may arise or how such factors may cause results to differ materiallyfrom those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. TheRegistrants undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement ismade or to reflect the occurrence of unanticipated events.4Part IItems 1. and 2. Business and PropertiesGeneralIn 1995, DTE Energy incorporated in the State of Michigan. DTE Energy's utility operations consist primarily of DTE Electric and DTE Gas. DTEEnergy also has three other segments that are engaged in a variety of energy-related businesses.DTE Electric is a Michigan corporation organized in 1903 and is a wholly-owned subsidiary of DTE Energy. DTE Electric is a public utility engaged inthe generation, purchase, distribution, and sale of electricity to approximately 2.2 million customers in southeastern Michigan.DTE Gas is a Michigan corporation organized in 1898 and is a wholly-owned subsidiary of DTE Energy. DTE Gas is a public utility engaged in thepurchase, storage, transportation, distribution, and sale of natural gas to approximately 1.2 million customers throughout Michigan and the sale of storageand transportation capacity.DTE Energy's other businesses are involved in 1) natural gas pipelines, gathering, and storage; 2) power and industrial projects; and 3) energymarketing and trading operations.DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businessesunder DTE Energy are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, theEPA, the MDEQ, and the CFTC.The Registrants' annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and all amendments tosuch reports are available free of charge through the Investors - Reports and Filings page of DTE Energy's website: www.dteenergy.com, as soon as reasonablypracticable after they are filed with or furnished to the SEC. The Registrants' previously filed reports and statements are also available at the SEC’s website:www.sec.gov.The DTE Energy Code of Ethics and Standards of Behavior, Board of Directors’ Mission and Guidelines, Board Committee Charters, and CategoricalStandards for Director Independence are also posted on the DTE Energy website. The information on DTE Energy’s website is not part of this report or anyother report that DTE Energy files with, or furnishes to, the SEC.Additionally, the public may read and copy any materials the Registrants file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE,Room 1580, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that fileelectronically with the SEC at www.sec.gov.Corporate StructureBased on the following structure, DTE Energy sets strategic goals, allocates resources, and evaluates performance. For financial information by segmentfor the last three years, see Note 20 to the Consolidated Financial Statements in Item 8 of this Report, "Segment and Related Information".Electric•The Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity toapproximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan.Gas•The Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas toapproximately 1.2 million residential, commercial, and industrial customers throughout Michigan and the sale of gas storage and transportationcapacity.5Non-utility Operations•Gas Storage and Pipelines consists of natural gas pipelines, gathering, and storage businesses.•Power and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial,commercial, and institutional customers, produce reduced emissions fuel, and sell electricity from renewable energy projects.•Energy Trading consists of energy marketing and trading operations.Corporate and Other•Corporate and other includes various holding company activities, and holds certain non-utility debt and energy-related investments.Refer to Management’s Discussion and Analysis in Item 7 of this Report for an in-depth analysis of each segment’s financial results. A description ofeach business unit follows.ELECTRICDescriptionDTE Energy's Electric segment consists principally of DTE Electric, an electric utility engaged in the generation, purchase, distribution, and sale ofelectricity to approximately 2.2 million customers in southeastern Michigan. DTE Electric is regulated by numerous federal and state governmental agencies,including, but not limited to, the MPSC, the FERC, the NRC, the EPA, and the MDEQ. Electricity is generated from fossil-fuel plants, a hydroelectric pumpedstorage plant, a nuclear plant, wind and other renewable assets and is supplemented with purchased power. The electricity is sold, or distributed through theretail access program, to three major classes of customers: residential, commercial, and industrial, throughout southeastern Michigan.Operating Revenues by Service 2015 2014 2013 (In millions)Residential$2,186 $2,168 $2,351Commercial1,701 1,761 1,883Industrial645 767 799Other (a)281 494 45Subtotal4,813 5,190 5,078Interconnection sales (b)88 93 121Electric segment Operating Revenues$4,901 $5,283 $5,199______________________________(a)Includes revenue associated with the under or over recoveries of tracking mechanisms and deferred gain amortization of the previously reversed RDM liability.(b)Represents power that is not distributed by DTE Electric.6Weather, economic factors, competition, energy efficiency initiatives, and electricity prices affect sales levels to customers. DTE Electric's peak loadand highest total system sales generally occur during the third quarter of the year, driven by air conditioning and other cooling-related demands. DTEElectric's operations are not dependent upon a limited number of customers, and the loss of any one or a few customers would not have a material adverseeffect on the results of DTE Electric.Fuel Supply and Purchased PowerDTE Electric's power is generated from a variety of fuels and is supplemented with purchased power. DTE Electric expects to have an adequate supplyof fuel and purchased power to meet its obligation to serve customers. DTE Electric's generating capability is heavily dependent upon the availability ofcoal. Coal is purchased from various sources in different geographic areas under agreements that vary in both pricing and terms. DTE Electric expects toobtain the majority of its coal requirements through long-term contracts, with the balance to be obtained through short-term agreements and spot purchases.DTE Electric has long-term and short-term contracts for the purchase of approximately 37.9 million tons of low-sulfur western coal and approximately 3.0million tons of Appalachian coal to be delivered from 2016 to 2021. All of these contracts have pricing schedules. DTE Electric has approximately 98% ofthe expected coal requirements for 2016 under contract. Given the geographic diversity of supply, DTE Electric believes it can meet its expected generationrequirements. DTE Electric leases a fleet of rail cars and has the expected western coal rail requirements under contract through 2018. All of the expectedeastern coal rail requirements are under contract through 2016. Contracts covering expected vessel transportation requirements for delivery of purchased coalto electric generating facilities are under contract through 2019.DTE Electric participates in the energy market through MISO. DTE Electric offers its generation in the market on a day-ahead and real-time basis andbids for power in the market to serve its load. DTE Electric is a net purchaser of power that supplements its generation capability to meet customer demandduring peak cycles or during major plant outages.PropertiesDTE Electric owns generating facilities that are located in the State of Michigan. Substantially all of DTE Electric's property is subject to the lien of amortgage.7Generating facilities owned and in service as of December 31, 2015 are shown in the following table: Location byMichigan Net GenerationCapacity (a)Facility County Year in Service (MW)Fossil-fueled Steam-Electric Belle River (b) St. Clair 1984 and 1985 1,034Greenwood St. Clair 1979 785Monroe (c) Monroe 1971, 1973, and 1974 3,066River Rouge Wayne 1957 and 1958 523St. Clair St. Clair 1953, 1954, 1959, 1961, and 1969 1,367Trenton Channel Wayne 1949 and 1968 630 7,405Natural gas and Oil-fueled Peaking Units Various 1966-1971, 1981, 1999, 2002, and 2003 2,009Nuclear-fueled Steam-Electric Fermi 2 Monroe 1988 1,124Hydroelectric Pumped Storage Ludington (d) Mason 1973 958Renewables (e) Wind Brookfield Wind Park Huron 2014 75Echo Wind Park Huron 2014 112Gratiot Wind Park Gratiot 2011 and 2012 102Thumb Wind Project Huron and Sanilac 2012 110 399Solar Various 2010-2015 12 11,907_______________________________________(a)Represents summer net rating for all units with the exception of renewable facilities. The summer net rating is based on operating experience, the physical condition of units,environmental control limitations, and customer requirements for steam, which would otherwise be used for electric generation. Wind and solar facilities reflect name platecapacity.(b)The Belle River capability represents DTE Electric’s entitlement to 81% of the capacity and energy of the plant. See Note 6 to the Consolidated Financial Statements in Item 8 ofthis Report, "Jointly-Owned Utility Plant".(c)The Monroe generating plant provided 40% of DTE Electric’s total 2015 power plant generation.(d)Represents DTE Electric’s 49% interest in Ludington with a total capability of 1,955 MW. See Note 6 to the Consolidated Financial Statements in Item 8 of this Report, "Jointly-Owned Utility Plant".(e)In addition to the owned renewable facilities described above, DTE Electric has long-term contracts for 487 MW of renewable power generated from wind, solar, and biomassfacilities.DTE Electric expects to retire Trenton Channel Unit 7 (110 MW) in April 2016. Over the next fifteen years, DTE Electric expects to retire additionalcoal-fired generation and to increase the proportion of its generation mix attributable to natural gas-fired generation and renewables. DTE Electric acquiredtwo simple-cycle natural gas facilities in 2015. In January 2015, DTE Electric acquired a 732 MW simple-cycle natural gas facility in Carson City, Michigan(Montcalm County) that was placed in service in 2002 and 2003. In October 2015, DTE Electric acquired a 350 MW simple-cycle natural gas facility in EastChina Township, Michigan (St. Clair County) that was placed in service in 2002. These acquisitions are included in Natural gas and Oil-fueled Peaking Unitsin the table above. See Note 4 to the Consolidated Financial Statements in Item 8 of this Report, "Acquisitions and Exit Activities".DTE Electric owns and operates 676 distribution substations with a capacity of approximately 33,729,000 kilovolt-amperes (kVA) and approximately432,500 line transformers with a capacity of approximately 23,472,000 kVA.8Circuit miles of electric distribution lines owned and in service as of December 31, 2015 are shown in the following table: Circuit MilesOperating Voltage-Kilovolts (kV) Overhead Underground4.8 kV to 13.2 kV 27,686 14,73124 kV 182 69240 kV 2,290 383120 kV 60 8 30,218 15,814There are numerous interconnections that allow the interchange of electricity between DTE Electric and electricity providers external to the DTEElectric service area. These interconnections are generally owned and operated by ITC Transmission, an unrelated company, and connect to neighboringenergy companies.RegulationDTE Electric is subject to the regulatory jurisdiction of various agencies, including, but not limited to, the MPSC, the FERC, and the NRC. The MPSCissues orders pertaining to rates, recovery of certain costs, including the costs of generating facilities and regulatory assets, conditions of service, accounting,and operating-related matters. DTE Electric's MPSC-approved rates charged to customers have historically been designed to allow for the recovery of costs,plus an authorized rate of return on investments. The FERC regulates DTE Electric with respect to financing authorization and wholesale electric activities.The NRC has regulatory jurisdiction over all phases of the operation, construction, licensing, and decommissioning of DTE Electric's nuclear plantoperations. DTE Electric is subject to the requirements of other regulatory agencies with respect to safety, the environment, and health.See Notes 7, 8, 11, and 17 to the Consolidated Financial Statements in Item 8 of this Report, "Asset Retirement Obligations", "Regulatory Matters","Fair Value", and "Commitments and Contingencies".Energy Assistance ProgramsEnergy assistance programs, funded by the federal government and the State of Michigan, remain critical to DTE Electric’s ability to control itsuncollectible accounts receivable and collections expenses. DTE Electric’s uncollectible accounts receivable expense is directly affected by the level ofgovernment-funded assistance that qualifying customers receive. DTE Electric works continuously with the State of Michigan and others to determinewhether the share of funding allocated to customers is representative of the number of low-income individuals in the service territory. DTE Electric alsopartners with federal, state, and local officials to attempt to increase the share of low-income funding allocated to customers.Strategy and CompetitionDTE Electric's electrical generation operations seek to provide the energy needs of customers in a cost effective manner. With potential capacityconstraints in the MISO region, there will be increased dependency on DTE Electric's generation to provide reliable service and price stability for customers.This generation will require a large investment due to DTE Electric's aging coal fleet along with increased environmental regulations.DTE Electric's distribution operations focus is on distributing energy in a safe, cost effective, and reliable manner to customers. DTE Electric seeks toincrease operational efficiencies to increase customer satisfaction at an affordable rate.The electric retail access program in Michigan gives electric customers the option of retail access to alternative electric suppliers, subject to limits.Customers with retail access to alternative electric suppliers represented approximately 10% of retail sales in 2015, 2014, and 2013 and consisted primarilyof industrial and commercial customers. MPSC rate orders and 2008 energy legislation enacted by the State of Michigan have placed a 10% cap on the totalretail access related migration, mitigating some of the unfavorable effects of electric retail access on DTE Electric's financial performance and full servicecustomer rates. DTE Electric expects that customers with retail access to alternative electric suppliers will represent approximately 10% of retail sales in2016.9Competition in the regulated electric distribution business is primarily from the on-site generation of industrial customers and from distributedgeneration applications by industrial and commercial customers. DTE Electric does not expect significant competition for distribution to any group ofcustomers in the near term.Revenues from year to year will vary due to weather conditions, economic factors, regulatory events, and other risk factors as discussed in the “RiskFactors” in Item 1A. of this Report.GASDescriptionDTE Energy's Gas segment consists principally of DTE Gas, a natural gas utility engaged in the purchase, storage, transportation, distribution, and saleof natural gas to approximately 1.2 million residential, commercial, and industrial customers throughout Michigan, and the sale of storage and transportationcapacity.Operating Revenues by Service 2015 2014 2013 (In millions)Gas sales$1,019 $1,233 $1,093End-user transportation191 218 212Intermediate transportation59 68 59Storage and other107 117 110Gas segment Operating Revenues$1,376 $1,636 $1,474•Gas sales — Includes the sale and delivery of natural gas primarily to residential and small-volume commercial and industrial customers.•End-user transportation — Gas delivery service provided primarily to large-volume commercial and industrial customers. Additionally, the service isprovided to residential customers and small-volume commercial and industrial customers who have elected to participate in the gas retail accessprogram. End-user transportation customers purchase natural gas directly from marketers, producers, or brokers and utilize DTE Gas' pipeline network totransport the gas to their facilities or homes.•Intermediate transportation — Gas delivery service is provided to producers, brokers, and other gas companies that own the natural gas, but are not theultimate consumers. Intermediate transportation customers use DTE Gas' high-pressure transportation system to transport the natural gas to storage fields,pipeline interconnections, or other locations.•Storage and other — Includes revenues from natural gas storage, appliance maintenance, facility development, and other energy-related services.DTE Gas' gas sales, end-user transportation, and intermediate transportation volumes, revenues, and Net Income, are impacted by weather. Given theseasonal nature of the business, revenues and Net Income are concentrated in the first and fourth quarters of the calendar year. By the end of the first quarter,the heating season is largely over, and DTE Gas typically realizes substantially reduced revenues and earnings in the second quarter and losses in the thirdquarter. The impacts of changes in average customer usage are minimized by the RDM.DTE Gas operations are not dependent upon a limited number of customers, and the loss of any one or a few customers would not have a materialadverse effect on the results of DTE Gas.Natural Gas SupplyDTE Gas' gas distribution system has a planned maximum daily send-out capacity of 2.4 Bcf, with approximately 66% of the volume coming fromunderground storage for 2015. Peak-use requirements are met through utilization of storage facilities, pipeline transportation capacity, and purchased gassupplies. Because of the geographic diversity of supply and its pipeline transportation and storage capacity, DTE Gas is able to reliably meet supplyrequirements. DTE Gas believes natural gas supply and pipeline capacity will be sufficiently available to meet market demands in the foreseeable future.10DTE Gas purchases natural gas supplies in the open market by contracting with producers and marketers, and maintains a diversified portfolio ofnatural gas supply contracts. Supplier, producing region, quantity, and available transportation diversify DTE Gas' natural gas supply base. Natural gassupply is obtained from various sources in different geographic areas (Gulf Coast, Mid-Continent, Canada, and Michigan) under agreements that vary in bothpricing and terms. Gas supply pricing is generally tied to the New York Mercantile Exchange and published price indices to approximate current marketprices combined with MPSC-approved fixed price supplies with varying terms and volumes through 2018.DTE Gas is directly connected to interstate pipelines, providing access to most of the major natural gas supply producing regions in the Gulf Coast,Mid-Continent, and Canadian regions. The primary long-term transportation supply contracts at December 31, 2015 are as follows: Availability(MMcf/d) ContractExpirationGreat Lakes Gas Transmission L.P.30 2017Viking Gas Transmission Company21 2017Vector Pipeline L.P.50 2017Trunkline Gas Company51 2017ANR Pipeline Company154 2028Panhandle Eastern Pipeline Company95 2029PropertiesDTE Gas owns distribution, storage, and transportation properties that are located in the State of Michigan. The distribution system includesapproximately 19,000 miles of distribution mains, approximately 1,165,000 service pipelines, and approximately 1,314,000 active meters, and DTE Gasowns approximately 2,000 miles of transmission pipelines that deliver natural gas to the distribution districts and interconnect DTE Gas storage fields withthe sources of supply and the market areas.DTE Gas owns storage properties relating to four underground natural gas storage fields with an aggregate working gas storage capacity ofapproximately 141 Bcf. These facilities are important in providing reliable and cost-effective service to DTE Gas customers. In addition, DTE Gas sellsstorage services to third parties.Most of DTE Gas' distribution and transportation property is located on property owned by others and used by DTE Gas through easements, permits, orlicenses. Substantially all of DTE Gas' property is subject to the lien of a mortgage.DTE Gas leases a portion of its pipeline system to the Vector Pipeline Partnership (an affiliate) through a capital lease arrangement. See Note 16 to theConsolidated Financial Statements in Item 8 of the Report, "Capital and Operating Leases".RegulationDTE Gas is subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs, including the costs ofregulatory assets, conditions of service, accounting, and operating-related matters. DTE Gas' MPSC-approved rates charged to customers have historicallybeen designed to allow for the recovery of costs, plus an authorized rate of return on investments. DTE Gas operates natural gas storage and transportationfacilities in Michigan as intrastate facilities regulated by the MPSC and provides intrastate storage and transportation services pursuant to an MPSC-approved tariff.DTE Gas also provides interstate storage and transportation services in accordance with an Operating Statement on file with the FERC. The FERC'sjurisdiction is limited and extends to the rates, non-discriminatory requirements, and the terms and conditions applicable to storage and transportationprovided by DTE Gas in interstate markets. FERC granted DTE Gas authority to provide storage and related services in interstate commerce at market-basedrates. DTE Gas provides transportation services in interstate commerce at cost-based rates approved by the MPSC and filed with the FERC.DTE Gas is subject to the requirements of other regulatory agencies with respect to safety, the environment, and health.See Notes 8 and 17 to the Consolidated Financial Statements in Item 8 of this Report, "Regulatory Matters" and "Commitments and Contingencies".11Energy Assistance ProgramEnergy assistance programs, funded by the federal government and the State of Michigan, remain critical to DTE Gas' ability to control its uncollectibleaccounts receivable and collections expenses. DTE Gas' uncollectible accounts receivable expense is directly affected by the level of government-fundedassistance its qualifying customers receive. DTE Gas works continuously with the State of Michigan and others to determine whether the share of fundingallocated to customers is representative of the number of low-income individuals in the gas service territory. DTE Gas also partners with federal, state, andlocal officials to attempt to increase the share of low-income funding allocated to DTE Gas customers.Strategy and CompetitionDTE Gas' strategy is to ensure the safe, reliable, and cost effective delivery of natural gas service within its franchised markets in Michigan. In addition,DTE Gas is promoting the extension of its distribution system to under served markets and the increased use of natural gas furnaces, water heaters, andappliances within its current customer base. DTE Gas continues to focus on the reduction of operating costs and the delivery of energy efficiency productsand services to its customers, making natural gas service the preferred fuel and even more affordable for its customers.Competition in the gas business primarily involves other natural gas transportation providers, as well as providers of alternative fuels and energysources. The primary focus of competition for end-user transportation is cost and reliability. Some large commercial and industrial customers have the abilityto switch to alternative fuel sources such as coal, electricity, oil, and steam. If these customers were to choose an alternative fuel source, they would not havea need for DTE Gas' end-user transportation service. DTE Gas competes against alternative fuel sources by providing competitive pricing and reliable service,supported by its storage capacity.Having an extensive transportation pipeline system has enabled marketing of DTE Gas' storage and transportation services to gas producers, marketers,distribution companies, end-user customers, and other pipeline companies. The business operates in a central geographic location with connections to majorMidwestern interstate pipelines that extend throughout the Midwest, eastern United States, and eastern Canada.DTE Gas' storage capacity is used to store natural gas for delivery to its customers, and is also sold to third parties under a variety of arrangements.Prices for storage arrangements for shorter periods are generally higher, but more volatile, than for longer periods. Prices are influenced primarily by marketconditions, weather, and natural gas pricing.GAS STORAGE AND PIPELINESDescriptionGas Storage and Pipelines controls natural gas storage fields, intrastate lateral and intrastate gathering pipeline systems, and has ownership interests ininterstate pipelines serving the Midwest, Ontario, and Northeast markets. The pipeline and storage assets are primarily supported by long-term, fixed-pricerevenue contracts.PropertiesGas Storage and Pipelines holds the following properties:Property Classification % Owned Description LocationPipelines Bluestone Pipeline 100% 53.3-miles of installed pipeline delivering Marcellus Shale gas to MillenniumPipeline and Tennessee Pipeline PA and NYMichigan gathering systems 100% Gathers production gas in northern Michigan MISusquehanna gathering system 100% Gathering system delivering Southwestern Energy's Marcellus Shale gasproduction to Bluestone Pipeline PAVector Pipeline 40% 348-mile pipeline connecting Chicago, Michigan, and Ontario market centers IL, IN, MI, and OntarioMillennium Pipeline 26% 182-mile pipeline serving markets in the Northeast NYStorage Washington 10 100% 75 Bcf of storage capacity MIWashington 28 50% 16 Bcf of storage capacity MI12The assets of these businesses are well integrated with other DTE Energy operations. Pursuant to an operating agreement, DTE Gas provides physicaloperations, maintenance, and technical support for the Washington 10 and 28 storage facilities and for the Michigan gathering systems.In addition, DTE Energy owns a 50% interest in the NEXUS Pipeline, a proposed 255-mile pipeline to transport Utica and Marcellus shale gas to Ohio,Michigan and Ontario market centers. A FERC application was filed in the fourth quarter of 2015 with an estimated in service date in the fourth quarter of2017.RegulationGas Storage and Pipelines operates natural gas storage facilities in Michigan as intrastate facilities regulated by the MPSC, and provides intrastatestorage and related services pursuant to an MPSC-approved tariff. Gas Storage and Pipelines also provides interstate services in accordance with an OperatingStatement on file with the FERC. Vector and Millennium Pipelines provide interstate transportation services in accordance with their FERC-approved tariffs.In addition, Vector is subject to applicable laws, rules and regulations in Canada. NEXUS Pipeline, when operational, will also provide interstatetransportation services in accordance with their FERC-approved tariffs. In Pennsylvania, Gas Storage and Pipelines' gathering and pipeline assets are subjectto the rules and regulations of the Pennsylvania Public Utility Commission. Bluestone Pipeline is regulated in the state of New York by the New York PublicService Commission.Strategy and CompetitionGas Storage and Pipelines expects to continue its steady growth plan by expanding existing assets, acquiring and/or developing new assets that aretypically supported with long-term customer commitments. Gas Storage and Pipelines has competition from other pipelines and storage providers. The focuswill be on opportunities in the Midwest to Northeast region to supply natural gas to meet growing demand. Much of the growth in demand for natural gas isexpected to occur in the Eastern Canada and the Northeast U.S. regions. Gas Storage and Pipelines believes that the Vector and Millennium Pipelines are wellpositioned to provide access routes and low-cost expansion options to these markets. In addition, Gas Storage and Pipelines believes that MillenniumPipeline is well positioned for growth in production from the Marcellus Shale, especially with respect to Marcellus production in Northern Pennsylvania. GasStorage and Pipelines has an agreement with Southwestern Energy Production Company to support its Bluestone Pipeline and Susquehanna gatheringsystem. DTE Energy expects to continue steady growth in the Gas Storage and Pipelines business and is evaluating new pipeline and storage investmentopportunities that could include additional Millennium and Vector expansions and laterals, Bluestone compression and laterals, Susquehanna gatheringexpansions, and other Marcellus/Utica shale midstream development or partnering opportunities, such as the NEXUS Pipeline. Gas Storage and Pipelines'operations are dependent upon a limited number of customers, and the loss of any one or a few customers could have a material adverse effect on the results ofGas Storage and Pipelines.POWER AND INDUSTRIAL PROJECTSDescriptionPower and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial, andinstitutional customers, produce reduced emissions fuel, and sell electricity from renewable energy projects. This business segment provides services usingproject assets usually located on or near the customers' premises in the steel, automotive, pulp and paper, airport, chemical, and other industries as follows:•Steel and Petroleum Coke — Power and Industrial Projects produces metallurgical coke from one coke battery with a capacity of 1.0 million tons peryear and has an investment in a second coke battery with a capacity of 1.2 million tons per year. Power and Industrial Projects also provides pulverizedcoal and petroleum coke to the steel, pulp and paper, and other industries.•On-Site Energy — Power and Industrial Projects provides power generation, steam production, chilled water production, wastewater treatment, andcompressed air supply to industrial customers. Power and Industrial Projects also provides utility-type services using project assets usually located on ornear the customers' premises in the automotive, airport, chemical, and other industries.13•Wholesale Power and Renewables — Power and Industrial Projects holds ownership interests in, and operates, four renewable generating plants with acapacity of 191 MWs. The electric output is sold under long-term power purchase agreements. Power and Industrial Projects also develops landfill gasrecovery systems that capture the gas and provide local utilities, industries, and consumers with an opportunity to use a competitive, renewable source ofenergy, in addition to providing environmental benefits by reducing GHG emissions.•Reduced Emissions Fuel — Power and Industrial Projects has constructed and placed in service REF facilities at nine sites including facilities located atsix third-party owned coal-fired power plants. DTE Energy has sold membership interests in four of the facilities and entered into lease arrangements attwo of the facilities. DTE Energy will continue to optimize these facilities by seeking investors or entering into lease arrangements for facilitiesoperating at DTE Electric and other utility sites. DTE Energy is in the process of relocating an underutilized facility at an existing site to a new third-party owned coal-fired power plant. In addition, DTE Energy has entered into an agreement to operate an REF facility owned by an outside party locatedat a third-party owned coal-fired power plant. The facilities blend a proprietary additive with coal used in coal-fired power plants, resulting in reducedemissions of nitrogen oxide and mercury. Qualifying facilities are eligible to generate tax credits for ten years upon achieving certain criteria. The valueof a tax credit is adjusted annually by an inflation factor published by the IRS. The value of the tax credit is reduced if the reference price of coal exceedscertain thresholds. The economic benefit of the REF facilities is dependent upon the generation of production tax credits.Properties and OtherThe following are significant properties operated by Power and Industrial Projects:Facility Location Service TypeSteel and Petroleum Coke Pulverized Coal Operations MI Pulverized CoalCoke Production MI Metallurgical Coke SupplyOther Investment in Coke Production and Petroleum Coke IN and MS Metallurgical Coke Supply and Pulverized Petroleum CokeOn-Site Energy Automotive Various sites in MI, IN, OH,and NY Electric Distribution, Chilled Water, Waste Water, Steam, Cooling TowerWater, Reverse Osmosis Water, Compressed Air, Mist, and Dust CollectorsAirports MI and PA Electricity and Hot and Chilled WaterChemical Manufacturing IL, KY, and OH Electricity, Steam, Natural Gas, Compressed Air, and WastewaterConsumer Manufacturing OH Electricity, Steam, Wastewater, and SewerBusiness Park PA ElectricityHospital CA Electricity, Steam, and Chilled WaterWholesale Power and Renewables Pulp and Paper AL Electric Generation and SteamRenewables CA and MN Electric GenerationLandfill Gas Recovery Various U.S. sites Electric Generation and Landfill GasREF MI, OH, OK, IL, PA, and WI REF Supply 2015 2014 2013 (In millions)Production Tax Credits Generated (Allocated to DTE Energy) REF$77 $84 $44Power Generation11 11 8Landfill Gas Recovery3 2 1 $91 $97 $5314RegulationCertain electric generating facilities within Power and Industrial Projects have market-based rate authority from the FERC to sell power. The facilitiesare subject to FERC reporting requirements and market behavior rules. Certain projects of Power and Industrial Projects are also subject to the applicablelaws, rules, and regulations related to the EPA, U.S. Department of Homeland Security, DOE, and various state utility commissions.Strategy and CompetitionPower and Industrial Projects will continue leveraging its energy-related operating experience and project management capability to develop and growits steel, on-site energy, renewable power, and REF businesses. Power and Industrial Projects will also continue to pursue opportunities to provide assetmanagement and operations services to third parties. There are limited competitors for Power and Industrial Projects' existing disparate businesses whoprovide similar products and services. Power and Industrial Projects' operations are dependent upon a limited number of customers, and the loss of any one ora few customers could have a material adverse effect on the results of Power and Industrial Projects.Power and Industrial Projects anticipates building around its core strengths in the markets where it operates. In determining the markets in which tocompete, Power and Industrial Projects examines closely the regulatory and competitive environment, new and pending legislation, the number ofcompetitors, and its ability to achieve sustainable margins. Power and Industrial Projects plans to maximize the effectiveness of its related businesses as itexpands. As Power and Industrial Projects pursues growth opportunities, the first priority will be to achieve value-added returns.Power and Industrial Projects intends to focus on the following areas for growth:•Obtaining investors in the REF projects;•Relocating underutilized REF facilities to alternative coal-fired power plants which may provide increased production and emission reductionopportunities in 2016 and future years;•Acquiring and developing landfill gas recovery facilities, renewable energy projects, and other energy projects which may qualify for taxcredits; and•Providing operating services to owners of on-site industrial and power plants.ENERGY TRADINGDescriptionEnergy Trading focuses on physical and financial power and gas marketing and trading, structured transactions, enhancement of returns from its assetportfolio and optimization of contracted natural gas pipeline transportation, and storage positions. Energy Trading also provides natural gas, power, andrelated services which may include the management of associated storage and transportation contracts on the customers’ behalf and the supply or purchase ofrenewable energy credits to various customers. Energy Trading's customer base is predominantly utilities, local distribution companies, pipelines, producersand generators, and other marketing and trading companies. Energy Trading enters into derivative financial instruments as part of their marketing andhedging activities. These financial instruments are generally accounted for under the MTM method, which results in the recognition in earnings of unrealizedgains and losses from changes in the fair value of the derivatives. Energy Trading utilizes forwards, futures, swaps, and option contracts to mitigate riskassociated with marketing and trading activity, as well as for proprietary trading within defined risk guidelines. Energy Trading also provides commodity riskmanagement services to the other businesses within DTE Energy.Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments and physical power and natural gas contractsare deemed derivatives; whereas, natural gas inventory, contracts for pipeline transportation, renewable energy credits, and storage assets are not derivatives.As a result, this segment will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contractsand assets. The business’ strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards,swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.15RegulationEnergy Trading has market-based rate authority from the FERC to sell power and blanket authority from the FERC to sell natural gas at market prices.Energy Trading is subject to FERC reporting requirements and market behavior rules. Energy Trading is also subject to the applicable laws, rules, andregulations related to the CFTC, U.S. Department of Homeland Security, and DOE. In addition, Energy Trading is subject to applicable laws, rules, andregulations in Canada.Strategy and CompetitionDTE Energy's strategy for the Energy Trading business is to deliver value-added services to DTE Energy customers. DTE Energy seeks to manage thisbusiness in a manner complementary to the growth of DTE Energy's other business segments. Energy Trading focuses on physical marketing and theoptimization of its portfolio of energy assets. The segment competes with electric and gas marketers, financial institutions, traders, utilities, and other energyproviders. The Energy Trading business is dependent upon the availability of capital and an investment grade credit rating. DTE Energy believes it hasample available capital capacity to support Energy Trading activities. DTE Energy monitors its use of capital closely to ensure that its commitments do notexceed capacity. A material credit restriction would negatively impact Energy Trading's financial performance. Competitors with greater access to capital, orat a lower cost, may have a competitive advantage. DTE Energy has risk management and credit processes to monitor and mitigate risk.CORPORATE AND OTHERDescriptionCorporate and Other includes various holding company activities, holds certain non-utility debt and energy-related investments.ENVIRONMENTAL MATTERSThe Registrants are subject to extensive environmental regulation and expect to continue recovering environmental costs related to utility operationsthrough rates charged to customers. The following table summarizes DTE Energy's, including DTE Electric's, estimated significant future environmentalexpenditures based upon current regulations. The amounts reported in the following table do not include any expenditures related to the EPA Clean PowerPlan as discussed below. Actual costs to comply could vary substantially. Additional costs may result as the effects of various substances on the environmentare studied and governmental regulations are developed and implemented. DTE Electric DTE Gas Non-utility Total (In millions)Air$40 $— $— $40Water90 — — 90Contaminated and other sites10 20 — 30Coal Combustion Residuals and Effluent Limitations Guidelines290 — — 290Estimated total future expenditures through 2022$430 $20 $— $450Estimated 2016 expenditures$70 $7 $— $77Estimated 2017 expenditures$40 $4 $— $44Air — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of sulfurdioxide and nitrogen oxides. The EPA and the State of Michigan have issued emission reduction regulations relating to ozone, fine particulate, regionalhaze, mercury, and other air pollution. These rules have led to additional emission controls on fossil-fueled power plants to reduce nitrogen oxide and sulfurdioxide, with further emission controls planned for reductions of mercury and other emissions. These rulemakings could require additional controls for sulfurdioxide, nitrogen oxides, and other hazardous air pollutants over the next few years.16The EPA is implementing regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of theeconomy. Among these actions, the EPA has finalized performance standards for emissions of carbon dioxide from new and existing electric generating units(EGUs). The carbon standards for new sources are not expected to have a material impact on DTE Electric, since DTE Electric has no plans to build new coal-fired generation and any potential new gas generation will be able to comply with the standards. It is not possible to determine the potential impact of thefinal carbon standards (also known as the EPA Clean Power Plan) on existing sources at this time. Pending or future legislation or other regulatory actionscould have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures forenvironmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits frommarket sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek torecover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.Water — The EPA finalized regulations on cooling water intake in August 2014. DTE Electric is conducting studies to determine the best technologyfor reducing the environmental impacts of the cooling water intake structures at each of its facilities. DTE Electric may be required to install technologies toreduce the impacts of the cooling water intakes.Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufacturedlocally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Gas owns, or previouslyowned, fourteen such former MGP sites. DTE Electric owns, or previously owned, three former MGP sites. DTE Energy anticipates the cost amortizationmethodology approved by the MPSC for DTE Gas, which allows DTE Gas to amortize the MGP costs over a ten-year period beginning with the yearsubsequent to the year the MGP costs were incurred, will prevent environmental costs from having a material adverse effect on DTE Energy's operations. DTEElectric believes the likelihood of a material change to the accrued amount is remote based on current knowledge of the conditions at each of its sites.The Registrants are also in the process of cleaning up other sites where contamination is present as a result of historical and ongoing utility operations.These other sites include an engineered ash storage facility, electric distribution substations, gas pipelines, electric generating power plants, and undergroundand aboveground storage tank locations. Cleanup activities associated with these sites will be conducted over the next several years. Any significant changein assumptions, such as remediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedialaction costs for these sites and affect the Registrants' financial position and cash flows and the rates charged to their customers.Coal Combustion Residuals and Effluent Limitations Guidelines— In April 2015, the EPA published a final rule for the disposal of coal combustionresiduals, commonly known as coal ash. The rule became effective in October 2015. The rule is based on the continued listing of coal ash as a non-hazardouswaste and relies on various self-implementation design and performance standards. DTE Electric owns and operates 3 permitted engineered coal ash storagefacilities to dispose of coal ash from coal-fired power plants and operates a number of smaller impoundments at its power plants. At certain facilities, the rulerequires the installation of monitoring wells, compliance with groundwater standards, and the closure of basins at the end of the useful life of the associatedpower plant. At other facilities, the rule requires ash laden waters be moved from earthen basins to steel and concrete tanks.In November 2015, the EPA finalized effluent limitations guidelines for the steam electric power generating industry which may require additionalcontrols to be installed between 2018 and 2023. The initial costs to comply with this rule have been developed and included in the Coal CombustionResidual and Effluent Limitations Guidelines amount in the above table.See Management’s Discussion and Analysis in Item 7 of this Report and Notes 7, 8, and 17 to the Consolidated Financial Statements in Item 8 of thisReport, "Regulatory Matters", "Asset Retirement Obligations", and "Commitments and Contingencies".EMPLOYEESDTE Energy had approximately 10,000 employees as of December 31, 2015, of which approximately 4,900 were represented by unions. DTE Electrichad approximately 4,500 employees as of December 31, 2015, of which approximately 2,600 were represented by unions. There are several bargaining unitsfor DTE Energy’s represented employees. The majority of represented employees for both DTE Energy and DTE Electric are under contracts that expire in2016 and 2017.17Item 1A. Risk FactorsThere are various risks associated with the operations of the Registrants' utility businesses and DTE Energy's non-utility businesses. To provide aframework to understand the operating environment of the Registrants, below is a brief explanation of the more significant risks associated with theirbusinesses. Although the Registrants have tried to identify and discuss key risk factors, others could emerge in the future. Each of the following risks couldaffect performance.The Registrants are subject to rate regulation. Electric and gas rates for the utilities are set by the MPSC and the FERC and cannot be changed withoutregulatory authorization. The Registrants may be negatively impacted by new regulations or interpretations by the MPSC, the FERC, or other regulatorybodies. The Registrants' ability to recover costs may be impacted by the time lag between the incurrence of costs and the recovery of the costs in customers'rates. Regulators also may decide to disallow recovery of certain costs in customers' rates if they determine that those costs do not meet the standards forrecovery under current governing laws and regulations. The Registrants' utilities typically self-implement base rate changes six months after rate case filings,in accordance with Michigan law. However, if the final rates authorized by regulators in the final rate order are lower than the amounts the Registrantscollected during the self-implementation period, the Registrants must refund the difference with interest. Regulators may also disagree with the Registrants'rate calculations under the various mechanisms that are intended to mitigate the risk to their utilities related to certain aspects of the business. If theRegistrants cannot agree with regulators on an appropriate reconciliation of those mechanisms, it may impact the Registrants' ability to recover certain coststhrough customer rates. Regulators may also decide to eliminate these mechanisms in future rate cases, which may make it more difficult for the Registrants torecover their costs in the rates charged to customers. The Registrants cannot predict what rates the MPSC will authorize in future rate cases. New legislation,regulations, or interpretations could change how the business operates, impact the Registrants' ability to recover costs through rates or the timing of suchrecovery, or require the Registrants to incur additional expenses. The outcome of the current Michigan energy policy reform legislative process could impactthe Registrants' recovery of costs through rates.Changes to Michigan's electric retail access program could negatively impact the Registrants' financial performance. The State of Michigancurrently experiences a hybrid market, where the MPSC continues to regulate electric rates for DTE Electric customers, while alternative electric supplierscharge market-based rates. MPSC rate orders, and energy legislation enacted by the State of Michigan in 2008, have placed a 10% cap on the total potentialretail access migration. However, even with the legislated 10% cap on participation, there continues to be legislative and financial risk associated with theelectric retail access program. Electric retail access migration is sensitive to market price and full service electric price changes. The Registrants are requiredunder current regulation to provide full service to retail access customers that choose to return, potentially resulting in the need for additional generatingcapacity. The outcome of the current Michigan energy policy reform legislative process could impact the Registrants' recovery of costs through rates.The MISO regional energy market, including the State of Michigan, is expected to face capacity constraints beginning in 2016, due primarily to theretirement of coal-fired generation caused by increasingly stringent environmental requirements. Significant investment in new natural gas-fired generationand renewables will be required. Under the current regulatory structure, retail access customers do not fund capacity costs, potentially impacting electricsupply reliability and utility customer affordability.Environmental laws and liability may be costly. The Registrants are subject to, and affected by, numerous environmental regulations. Theseregulations govern air emissions, water quality, wastewater discharge, and disposal of solid and hazardous waste. Compliance with these regulations cansignificantly increase capital spending, operating expenses, and plant down times, and can negatively affect the affordability of the rates charged tocustomers.Uncertainty around future environmental regulations creates difficulty planning long-term capital projects in the Registrants' generation fleet and, forDTE Energy, gas distribution businesses. These laws and regulations require the Registrants to seek a variety of environmental licenses, permits, inspections,and other regulatory approvals. The Registrants could be required to install expensive pollution control measures or limit or cease activities, including theretirement of certain generating plants, based on these regulations. Additionally, the Registrants may become a responsible party for environmental cleanupat sites identified by a regulatory body. The Registrants cannot predict with certainty the amount and timing of future expenditures related to environmentalmatters because of the difficulty of estimating cleanup costs. There is also uncertainty in quantifying liabilities under environmental laws that impose jointand several liability on potentially responsible parties.18The Registrants may also incur liabilities as a result of potential future requirements to address climate change issues. Proposals for voluntaryinitiatives and mandatory controls are being discussed both in the United States and worldwide to reduce GHGs such as carbon dioxide, a by-product ofburning fossil fuels. If increased regulations of GHG emissions are implemented, the operations of DTE Electric's fossil-fueled generation assets may besignificantly impacted. Since there can be no assurances that environmental costs may be recovered through the regulatory process, the Registrants' financialperformance may be negatively impacted as a result of environmental matters.For DTE Energy, future environmental regulation of natural gas extraction techniques, including hydraulic fracturing, being discussed both at theUnited States federal level and by some states may affect the profitability of natural gas extraction businesses which could affect demand for, and profitabilityof, DTE Energy's gas transportation businesses.Operation of a nuclear facility subjects the Registrants to risk. Ownership of an operating nuclear generating plant subjects the Registrants tosignificant additional risks. These risks include, among others, plant security, environmental regulation and remediation, changes in federal nuclearregulation, increased capital expenditures to meet industry requirements, and operational factors that can significantly impact the performance and cost ofoperating a nuclear facility. While the Registrants maintain insurance for various nuclear-related risks, there can be no assurances that such insurance will besufficient to cover the Registrants' costs in the event of an accident or business interruption at the nuclear generating plant, which may affect the Registrants'financial performance. In addition, while the Registrants have a nuclear decommissioning trust fund to finance the decommissioning of the nucleargenerating plant, there can be no assurances that such fund will be sufficient to fund the cost of decommissioning.The supply and/or price of energy commodities and/or related services may impact the Registrants' financial results. The Registrants are dependent oncoal for much of their electrical generating capacity. DTE Energy's access to natural gas supplies is critical to ensure reliability of service for utility gascustomers. DTE Energy's non-utility businesses are also dependent upon supplies and prices of energy commodities and services. Price fluctuations, fuelsupply disruptions, and changes in transportation costs, could have a negative impact on the amounts DTE Electric charges utility customers for electricityand DTE Gas charges utility customers for gas and on the profitability of DTE Energy's non-utility businesses. The Registrants have hedging strategies andregulatory recovery mechanisms in place to mitigate some of the negative fluctuations in commodity supply prices in their utility and, for DTE Energy, non-utility businesses, but there can be no assurances that the Registrants' financial performance will not be negatively impacted by price fluctuations. The priceof energy also impacts the market for DTE Energy's non-utility businesses that compete with utilities and alternative electric suppliers.The supply and/or price of other industrial raw and finished inputs and/or related services may impact the Registrants' financial results. TheRegistrants are dependent on supplies of certain commodities, such as copper and limestone, among others, and industrial materials, and services in order tomaintain day-to-day operations and maintenance of their facilities. Price fluctuations, or supply interruptions for these commodities and other items, couldhave a negative impact on the amounts charged to customers for the Registrants' utility products and, for DTE Energy, on the profitability of the non-utilitybusinesses.Adverse changes in the Registrants' credit ratings may negatively affect them. Regional and national economic conditions, increased scrutiny of theenergy industry and regulatory changes, as well as changes in the Registrants' economic performance, could result in credit agencies reexamining their creditratings. While credit ratings reflect the opinions of the credit agencies issuing such ratings and may not necessarily reflect actual performance, a downgradein the Registrants' credit ratings below investment grade could restrict or discontinue their ability to access capital markets and could result in an increase intheir borrowing costs, a reduced level of capital expenditures, and could impact future earnings and cash flows. In addition, a reduction in the Registrants'credit ratings may require them to post collateral related to various physical or financially settled contracts for the purchase of energy-related commodities,products, and services, which could impact their liquidity.19Poor investment performance of pension and other postretirement benefit plan assets and other factors impacting benefit plan costs couldunfavorably impact the Registrants' liquidity and results of operations. The Registrants' costs of providing non-contributory defined benefit pension plansand other postretirement benefit plans are dependent upon a number of factors, such as the rates of return on plan assets, the level of interest rates used tomeasure the required minimum funding levels of the plans, future government regulation, and the Registrants' required or voluntary contributions made tothe plans. The performance of the debt and equity markets affects the value of assets that are held in trust to satisfy future obligations under the Registrants'plans. The Registrants have significant benefit obligations and hold significant assets in trust to satisfy these obligations. These assets are subject to marketfluctuations and will yield uncertain returns, which may fall below the Registrants' projected return rates. A decline in the market value of the pension andother postretirement benefit plan assets will increase the funding requirements under the pension and other postretirement benefit plans if the actual assetreturns do not recover these declines in the foreseeable future. Additionally, the pension and other postretirement benefit plan liabilities are sensitive tochanges in interest rates. As interest rates decrease, the liabilities increase, resulting in increasing benefit expense and funding requirements. Also, if futureincreases in pension and other postretirement benefit costs as a result of reduced plan assets are not recoverable from the Registrants' utility customers, theresults of operations and financial position of the Registrants could be negatively affected. Without sustained growth in the plan investments over time toincrease the value of plan assets, the Registrants could be required to fund these plans with significant amounts of cash. Such cash funding obligations couldhave a material impact on the Registrants' cash flows, financial position, or results of operations.The Registrants' ability to access capital markets is important. The Registrants' ability to access capital markets is important to operate theirbusinesses and to fund capital investments. Turmoil in credit markets may constrain the Registrants' ability, as well as the ability of their subsidiaries, to issuenew debt, including commercial paper, and refinance existing debt at reasonable interest rates. In addition, the level of borrowing by other energy companies,and the market as a whole, could limit the Registrants' access to capital markets. The Registrants' long-term revolving credit facilities do not expire until2020, but the Registrants regularly access capital markets to refinance existing debt or fund new projects at the Registrants' utilities and DTE Energy's non-utility businesses, and the Registrants cannot predict the pricing or demand for those future transactions.Construction and capital improvements to the Registrants' power facilities and DTE Energy's distribution systems subject them to risk. The Registrantsare managing ongoing, and planning future, significant construction and capital improvement projects at multiple power generation and distributionfacilities and DTE Energy's gas distribution system. Many factors that could cause delays or increased prices for these complex projects are beyond theRegistrants' control, including the cost of materials and labor, subcontractor performance, timing and issuance of necessary permits, construction disputes,and weather conditions. Failure to complete these projects on schedule and on budget for any reason could adversely affect the Registrants' financialperformance and operations at the affected facilities and businesses.DTE Energy's non-utility businesses may not perform to its expectations. DTE Energy relies on non-utility operations for an increasing portion ofearnings. If DTE Energy's current and contemplated non-utility investments do not perform at expected levels, DTE Energy could experience diminishedearnings and a corresponding decline in shareholder value.DTE Energy's participation in energy trading markets subjects it to risk. Events in the energy trading industry have increased the level of scrutiny onthe energy trading business and the energy industry as a whole. In certain situations, DTE Energy may be required to post collateral to support tradingoperations, which could be substantial. If access to liquidity to support trading activities is curtailed, DTE Energy could experience decreased earningspotential and cash flows. Energy trading activities take place in volatile markets and expose DTE Energy to risks related to commodity price movements,deviations in weather, and other related risks. DTE Energy's trading business routinely has speculative trading positions in the market, within strict policyguidelines DTE Energy sets, resulting from the management of DTE Energy's business portfolio. To the extent speculative trading positions exist, fluctuatingcommodity prices can improve or diminish DTE Energy's financial results and financial position. DTE Energy manages its exposure by establishing andenforcing strict risk limits and risk management procedures. During periods of extreme volatility, these risk limits and risk management procedures may notwork as planned and cannot eliminate all risks associated with these activities.DTE Energy's ability to utilize production tax credits may be limited. To reduce U.S. dependence on imported oil, the Internal Revenue Code providesproduction tax credits as an incentive for taxpayers to produce fuels and electricity from alternative sources. DTE Energy generated production tax creditsfrom coke production, landfill gas recovery, reduced emission fuel, renewable energy generation, and gas production operations. All production tax creditstaken after 2013 are subject to audit by the IRS. If DTE Energy's production tax credits were disallowed in whole or in part as a result of an IRS audit, therecould be additional tax liabilities owed for previously recognized tax credits that could significantly impact DTE Energy's earnings and cash flows.20Weather significantly affects operations. At both utilities, deviations from normal hot and cold weather conditions affect the Registrants' earnings andcash flows. Mild temperatures can result in decreased utilization of the Registrants' assets, lowering income and cash flows. At DTE Electric, ice storms,tornadoes, or high winds can damage the electric distribution system infrastructure and power generation facilities and require it to perform emergency repairsand incur material unplanned expenses. The expenses of storm restoration efforts may not be fully recoverable through the regulatory process. DTE Gas canexperience higher than anticipated expenses from emergency repairs on its gas distribution infrastructure required as a result of weather related issues.Unplanned power plant outages may be costly. Unforeseen maintenance may be required to safely produce electricity or comply with environmentalregulations. As a result of unforeseen maintenance, the Registrants may be required to make spot market purchases of electricity that exceed the costs ofgeneration. The Registrants' financial performance may be negatively affected if unable to recover such increased costs.DTE Energy relies on cash flows from subsidiaries. DTE Energy is a holding company. Cash flows from the utility and non-utility subsidiaries arerequired to pay interest expenses and dividends on DTE Energy debt and securities. Should a major subsidiary not be able to pay dividends or transfer cashflows to DTE Energy, its ability to pay interest and dividends would be restricted.Renewable portfolio standards and energy efficiency programs may affect the Registrants' business. The Registrants are subject to existing Michigan,and potential future, federal legislation and regulation requiring them to secure sources of renewable energy. The Registrants have complied with the existingstate legislation, but do not know what requirements may be added by federal legislation. In addition, there could be additional state requirements increasingthe percentage of power required to be provided by renewable energy sources. The Registrants cannot predict the financial impact or costs associated withcomplying with potential future legislation and regulations. Compliance with these requirements can significantly increase capital expenditures andoperating expenses and can negatively affect the affordability of the rates charged to customers.The Registrants are also required by Michigan legislation to implement energy efficiency measures and provide energy efficiency customer awarenessand education programs. These requirements necessitate expenditures, and implementation of these programs creates the risk of reducing the Registrants'revenues as customers decrease their energy usage. The Registrants cannot predict how these programs will impact their business and future operating results.Regional, national and international economic conditions can have an unfavorable impact on the Registrants. The Registrants' utility and DTEEnergy's non-utility businesses follow the economic cycles of the customers they serve and credit risk of counterparties they do business with. Should thefinancial conditions of some of DTE Energy's significant customers deteriorate as a result of regional, national or international economic conditions, reducedvolumes of electricity and gas, and demand for energy services DTE Energy supplies, collections of accounts receivable, reductions in federal and stateenergy assistance funding, and potentially higher levels of lost gas or stolen gas and electricity could result in decreased earnings and cash flows.Threats of terrorism or cyber-attacks could affect the Registrants' business. The Registrants may be threatened by problems such as computer virusesor terrorism that may disrupt the Registrants' operations and could harm the Registrants' operating results. The Registrants' industry requires the continuedoperation of sophisticated information technology systems and network infrastructure. Despite implementation of security measures, all of the Registrants'technology systems are vulnerable to disability or failures due to hacking, viruses, acts of war or terrorism, and other causes. If the Registrants' informationtechnology systems were to fail and they were unable to recover in a timely way, the Registrants might be unable to fulfill critical business functions, whichcould have a material adverse effect on the Registrants' business, operating results, and financial condition.In addition, the Registrants' generation plants and electrical distribution facilities and, for DTE Energy, gas pipeline and storage facilities, in particularmay be targets of terrorist activities that could disrupt the Registrants' ability to produce or distribute some portion of their products. The Registrants haveincreased security as a result of past events and may be required by regulators or by the future terrorist threat environment to make investments in securitythat the Registrants cannot currently predict.21Failure to maintain the security of personally identifiable information could adversely affect the Registrants. In connection with the Registrant'sbusinesses, they collect and retain personally identifiable information of their customers, shareholders, and employees. Customers, shareholders, andemployees expect that the Registrants will adequately protect their personal information, and the regulatory environment surrounding information securityand privacy is increasingly demanding. A significant theft, loss, or fraudulent use of customer, shareholder, employee, or Registrant data by cybercrime orotherwise could adversely impact the Registrants' reputation and could result in significant costs, fines, and litigation.Failure to attract and retain key executive officers and other skilled professional and technical employees could have an adverse effect on theRegistrants' operations. The Registrants' businesses are dependent on their ability to attract and retain skilled employees. Competition for skilled employeesin some areas is high, and the inability to attract and retain these employees could adversely affect the Registrants' business and future operating results. Inaddition, the Registrants have an aging utility workforce, and the failure of a successful transfer of knowledge and expertise could negatively impact theiroperations.A work interruption may adversely affect the Registrants. There are several bargaining units for DTE Energy's approximately 4,900 and DTE Electric'sapproximately 2,600 represented employees. The majority of represented employees are under contracts that expire in 2016 and 2017. A union choosing tostrike would have an impact on the Registrants' businesses. The Registrants are unable to predict the effect a work stoppage would have on their costs ofoperations and financial performance.If DTE Energy's goodwill becomes impaired, it may be required to record a charge to earnings. DTE Energy annually reviews the carrying value ofgoodwill associated with acquisitions it has made for impairment. Factors that may be considered for purposes of this analysis include any change incircumstances indicating that the carrying value of DTE Energy goodwill may not be recoverable, such as a decline in stock price and market capitalization,future cash flows, and slower growth rates in the industry. DTE Energy cannot predict the timing, strength, or duration of any economic slowdown orsubsequent recovery, worldwide or in the economy or markets in which it operates; however, when events or changes in circumstances indicate that thecarrying value of these assets may not be recoverable, DTE Energy may take a non-cash impairment charge, which could potentially materially impact DTEEnergy's results of operations and financial position.The Registrants' businesses have safety risks. The Registrants' electric distribution system, power plants, wind energy equipment, and other facilities,and DTE Energy's gas distribution system, gas infrastructure, and other facilities, could be involved in incidents that result in injury, death or property loss toemployees, customers, or the public. Although the Registrants have insurance coverage for many potential incidents, depending upon the nature and severityof any incident, they could experience financial loss, damage to their reputation, and negative consequences from regulatory agencies or other publicauthorities.The Registrants may not be fully covered by insurance. The Registrants have a comprehensive insurance program in place to provide coverage forvarious types of risks, including catastrophic damage as a result of acts of God, terrorism, or a combination of other significant unforeseen events that couldimpact the Registrants' operations. Economic losses might not be covered in full by insurance, or the Registrants' insurers may be unable to meet contractualobligations.Item 1B. Unresolved Staff CommentsNone.Item 3. Legal ProceedingsFor more information on material legal proceedings and matters related to the Registrants, see Notes 8 and 17 to the Consolidated Financial Statements inItem 8 of this Report, "Regulatory Matters" and "Commitments and Contingencies".Item 4. Mine Safety DisclosuresNot applicable.22Part IIItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity SecuritiesDTE Energy common stock is listed on the New York Stock Exchange, which is the principal market for such stock. The following table indicates thereported high and low sales prices of DTE Energy common stock on the Composite Tape of the New York Stock Exchange and dividends paid per share foreach quarterly period during the past two years: DividendsPaid per ShareYear Quarter High Low 2015 First $92.27 $76.84 $0.6900 Second $84.27 $73.23 $0.6900 Third $85.12 $74.53 $0.7300 Fourth $85.36 $77.35 $0.73002014 First $74.61 $64.84 $0.6550 Second $79.45 $72.76 $0.6550 Third $78.89 $71.60 $0.6900 Fourth $90.77 $75.76 $0.6900At December 31, 2015, there were 179,470,213 shares of DTE Energy common stock outstanding. These shares were held by a total of58,999 shareholders of record.DTE Energy paid cash dividends on common stock of $501 million in 2015, $470 million in 2014, and $445 million in 2013. The amount of futuredividends will depend on DTE Energy's earnings, cash flows, financial condition, and other factors that are periodically reviewed by the DTE Energy Boardof Directors. Although there can be no assurances, DTE Energy anticipates paying dividends for the foreseeable future.All of the 138,632,324 issued and outstanding shares of DTE Electric common stock, par value $10 per share, are owned by DTE Energy, and constitute100% of the voting securities of DTE Electric. Therefore, no market exists for DTE Electric's common stock.DTE Electric paid cash dividends on common stock of $395 million in 2015, $370 million in 2014, and $342 million in 2013.For information on DTE Energy dividend restrictions, see Note 15 to the Consolidated Financial Statements in Item 8 of this Report, "Short-TermCredit Arrangements and Borrowings".All of DTE Energy's equity compensation plans that provide for the annual awarding of stock-based compensation have been approved byshareholders. For additional detail, see Note 19 to the Consolidated Financial Statements in Item 8 of this Report, "Stock-Based Compensation".See the following table for information as of December 31, 2015: Number of Securitiesto be Issued UponExercise ofOutstanding Options Weighted-AverageExercise Price ofOutstanding Options Number of SecuritiesRemaining Availablefor Future IssuanceUnder EquityCompensation PlansPlans approved by shareholders262,282 $42.52 2,892,45423UNREGISTERED SALES OF DTE ENERGY EQUITY SECURITIES AND USE OF PROCEEDSPurchases of DTE Energy Equity Securities by the Issuer and Affiliated PurchasersThe following table provides information about DTE Energy's purchases of equity securities that are registered by DTE Energy pursuant to Section 12of the Exchange Act of 1934 for the quarter ended December 31, 2015: Number of SharesPurchased (a) Average PricePaid per Share (a) Number of SharesPurchased as Part ofPublicly AnnouncedPlans or Programs Average Price Paidper Share Maximum DollarValue that MayYet Be PurchasedUnder the Plans orPrograms10/01/2015 — 10/31/20151,576 $79.43 — — —11/01/2015 — 11/30/20152,436 $78.53 — — —12/01/2015 — 12/31/20151,900 $78.42 — — —Total5,912 — _______________________________________(a)Represents shares of DTE Energy common stock withheld to satisfy income tax obligations upon the vesting of restricted stock based on the price in effect at the grant date.COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURNTotal Return to DTE Energy Shareholders(Includes reinvestment of dividends) Annual Return PercentageYear Ended December 31,Company/Index 2011 2012 2013 2014 2015DTE Energy Company 25.76 14.90 14.89 34.61 (3.77)S&P 500 Index 2.11 16.00 32.39 13.69 1.38S&P 500 Multi-Utilities Index 18.41 4.24 17.88 28.94 (1.73) Indexed ReturnsYear Ended December 31, Base Period Company/Index 2010 2011 2012 2013 2014 2015DTE Energy Company 100 125.76 144.51 166.03 223.49 215.07S&P 500 Index 100 102.11 118.45 156.82 178.29 180.75S&P 500 Multi-Utilities Index 100 118.41 123.42 145.50 187.59 184.352425Item 6. Selected Financial DataThe following selected financial data of DTE Energy should be read in conjunction with the accompanying Management’s Discussion and Analysis inItem 7 of this Report and Combined Notes to Consolidated Financial Statements in Item 8 of this Report. This information has been omitted for DTE Electricper General Instruction I (2) (a) of Form 10-K for wholly-owned subsidiaries (reduced disclosure format). 2015 2014 2013 2012 2011 (In millions, except per share amounts)Operating Revenues$10,337 $12,301 $9,661 $8,791 $8,858Net Income Attributable to DTE Energy Company Income from continuing operations attributable toDTE Energy Company (a)$727 $905 $661 $666 $714Discontinued operations (b)— — — (56) (3)Net Income Attributable to DTE Energy Company$727 $905 $661 $610 $711Diluted Earnings Per Common Share Income from continuing operations$4.05 $5.10 $3.76 $3.88 $4.20Discontinued operations— — — (0.33) (0.02)Diluted Earnings Per Common Share$4.05 $5.10 $3.76 $3.55 $4.18Financial Information Dividends declared per share of common stock$2.84 $2.69 $2.59 $2.42 $2.32Total assets$28,737 $27,899 $25,935 $26,318 $25,958Long-term debt, including capital leases$8,835 $8,343 $7,214 $7,014 $7,187Shareholders’ equity$8,772 $8,327 $7,921 $7,373 $7,009_______________________________________(a)2011 results include an $87 million income tax benefit related to the enactment of the MCIT.(b)Discontinued operations represents DTE Energy's Unconventional Gas Production business that was sold in 2012 resulting in a $55 million after-tax loss on sale.Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations asto information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.EXECUTIVE OVERVIEWDTE Energy is a diversified energy company with 2015 operating revenues of approximately $10.3 billion and assets of approximately $28.7 billion.DTE Energy is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providingelectricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy operates three energy-related non-utility segments withoperations throughout the United States.The following table summarizes DTE Energy's financial results: Years Ended December 31, 2015 2014 2013 (In millions, except per share amounts)Net Income Attributable to DTE Energy Company$727 $905 $661Diluted Earnings per Common Share$4.05 $5.10 $3.76The decrease in 2015 Net Income Attributable to DTE Energy Company is primarily due to lower earnings in the Energy Trading and Power andIndustrial Projects segments. The increase in 2014 Net Income Attributable to DTE Energy Company is primarily due to higher earnings in the EnergyTrading, Electric, Power and Industrial Projects, and Gas Storage and Pipelines segments.26Please see detailed explanations of segment performance in the following Results of Operations section.DTE Energy's strategy is to achieve long-term earnings growth, a strong balance sheet, and an attractive dividend yield.DTE Energy's utilities are investing capital to improve customer reliability through investments in base infrastructure and new generation, and tocomply with environmental requirements. DTE Energy expects that planned significant capital investments will result in earnings growth. DTE Energy isfocused on executing plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. DTE Energy operates in aconstructive regulatory environment and has solid relationships with its regulators.DTE Energy has significant investments in non-utility businesses. DTE Energy employs disciplined investment criteria when assessing growthopportunities that leverage its assets, skills, and expertise, and provides diversity in earnings and geography. Specifically, DTE Energy invests in targetedenergy markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. DTE Energy expects growth opportunitiesin the Gas Storage and Pipelines and Power and Industrial Projects segments.A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced short-term andlong-term financing. Near-term growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has anenterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related tocommodity price changes, interest rates, and counterparty credit risk.CAPITAL INVESTMENTSDTE Energy's utility businesses require significant capital investments to maintain and improve the electric generation and electric and natural gasdistribution infrastructure and to comply with environmental regulations and renewable energy requirements.DTE Electric's capital investments over the 2016-2020 period are estimated at $8.2 billion comprised of $3.8 billion for maintenance and other projects,$3.2 billion for distribution infrastructure, and $1.2 billion for new generation. Over the next fifteen years, DTE Electric plans to retire a portion of its coal-fired generation and to increase the proportion of its generation mix attributable to natural gas-fired generation and renewables. DTE Electric acquired twonatural gas facilities in 2015, as described in Note 4 to the Consolidated Financial Statements in Item 8 of this Report, "Acquisitions and Exit Activities".DTE Electric plans to seek regulatory approval in general rate case filings and renewable energy plan filings for capital expenditures consistent with priorratemaking treatment.DTE Gas' capital investments over the 2016-2020 period are estimated at $1.6 billion comprised of $750 million for base infrastructure, $650 millionfor gas main renewal, meter move out, and pipeline integrity programs, and $200 million for expenditures related to the NEXUS Pipeline. DTE Gas plans toseek regulatory approval in general rate case filings for base infrastructure capital expenditures consistent with prior ratemaking treatment. See Note 8 to theConsolidated Financial Statements in Item 8 of this Report, "Regulatory Matters" for a description of DTE Gas' IRM.DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance. Gas Storage and Pipelines'capital investments over the 2016-2020 period are estimated at $2.0 billion to $2.6 billion for gathering and pipeline investments and expansions, includingthe NEXUS Pipeline. Power and Industrial Projects' capital investments over the 2016-2020 period are estimated at $600 million to $950 million forinvestments in cogeneration and on-site energy projects.ENVIRONMENTAL MATTERSThe Registrants are subject to extensive environmental regulation. Additional costs may result as the effects of various substances on the environmentare studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect tocontinue recovering environmental costs related to utility operations through rates charged to customers.27DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of sulfur dioxide andnitrogen oxides. The EPA and the State of Michigan have issued emission reduction regulations relating to ozone, fine particulate, regional haze, mercury,and other air pollution. These rules have led to additional emission controls on fossil-fueled power plants to reduce nitrogen oxide and sulfur dioxide, withfurther emission controls planned for reductions of mercury and other emissions. These rulemakings could require additional controls for sulfur dioxide,nitrogen oxides, and other hazardous air pollutants over the next few years. To comply with these requirements, DTE Electric spent approximately $2.3billion through 2015. It is estimated that DTE Electric will make capital expenditures of approximately $40 million in 2016.As directed by a June 2013 Presidential Memorandum, the EPA is implementing regulatory actions under the Clean Air Act to address emissions ofGHGs from the utility sector and other sectors of the economy. Among these actions, in August 2015, the EPA finalized performance standards for emissionsof carbon dioxide from new and existing electric generating units (EGUs). The carbon performance standards, known as the Clean Power Plan (CPP), requirestates to meet emission reduction targets from existing fossil-fueled EGUs beginning in 2022. The EPA has finalized interim standards applicable from 2022to 2029 leading to emission standards to be achieved in 2030. States must submit initial compliance plans in September 2016, but may request an extensionto submit a final compliance plan by September 2018. States that fail to submit a plan or do not meet EPA criteria for a complete plan will be subject to afederal plan that was proposed by the EPA with the final CPP.The Registrants are working with the State of Michigan and other stakeholders to shape the CPP compliance plan for Michigan. The final carbonstandards for new sources are not expected to have a material impact on the Registrants, since the Registrants have no plans to build new coal-firedgeneration and any potential new gas generation will be able to comply with the standards. At the present time, it is not possible to determine the potentialimpact of the final performance standards for existing power plants due to the multitude of options available to states for compliance that require carefulanalysis and input from numerous stakeholders. Pending or future legislation or other regulatory actions could have a material impact on the Registrants'operations and financial position and the rates the Registrants charge its customers. Impacts include expenditures for environmental equipment beyond whatis currently planned, financing costs related to additional capital expenditures, the purchase of emission credits from market sources, higher costs ofpurchased power, and the retirement of facilities where control equipment is not economical. The Registrants would seek to recover these incremental coststhrough increased rates charged to their utility customers, as authorized by the MPSC.Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives, could also increase theeconomic viability of energy produced from renewable, natural gas-fired generation and/or nuclear sources, energy efficiency initiatives, and the potentialdevelopment of market-based trading of carbon instruments which could provide new business opportunities for DTE Energy's utility and non-utilitysegments. At the present time, it is not possible to quantify the financial impacts of these climate related regulatory initiatives on the Registrants or theircustomers.See Items 1. and 2. Business and Properties and Note 17 to the Consolidated Financial Statements in Item 8 of this Report, "Commitments andContingencies", for further discussion of Environmental Matters.EXIT ACTIVITIESDuring the fourth quarter of 2015, DTE Energy announced the closure of the Shenango Incorporated coke battery plant in response to a sharp downturnin the North American steel industry. The plant, which is part of the Power and Industrial Projects segment, is located in Pittsburgh, PA. As a result of theclosure, DTE Energy recorded a one-time pre-tax non-cash impairment charge of $111 million. The charge included $96 million to fully impair the long-lived assets, employee severance expenses related to the workforce reduction of approximately 170 employees for $3 million, and other expenses, includingwrite downs of inventory, of $12 million. The closure optimizes DTE Energy's coke production at its larger, more efficient facility. Production of coke fromthe Shenango battery ceased in January 2016. The plant closure will not significantly impact DTE Energy's earnings in future periods. As of December 31,2015, no amounts have been paid to date under these exit activities. For amounts accrued at December 31, 2015 related to these exit activities, DTE Energyexpects future cash payments of approximately $7 million to be made in 2016. DTE Energy anticipates incurring additional costs, including environmentalremediation costs, in connection with the closure. An estimate of the amount of the additional costs and timing of the activities cannot be determined atDecember 31, 2015 as alternatives are currently being evaluated, however, the likelihood of these costs being material to DTE Energy's ConsolidatedFinancial Statements is remote.OUTLOOKThe next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with itsintegrated non-utility operations, position it well for long-term growth.28Looking forward, DTE Energy will focus on several areas that are expected to improve future performance:•electric and gas customer satisfaction;•electric reliability;•rate competitiveness and affordability;•regulatory stability and investment recovery for the electric and gas utilities;•growth of utility asset base;•employee engagement;•cost structure optimization across all business segments;•cash, capital, and liquidity to maintain or improve financial strength; and•investments that integrate assets and leverage skills and expertise.DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic,financial, and risk criteria.RESULTS OF OPERATIONSThe following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information,described below, includes intercompany revenues and expenses, and other income and deductions that are eliminated in the Consolidated FinancialStatements. 2015 2014 2013 (In millions)Net Income (Loss) Attributable to DTE Energy by Segment: Electric$542 $528 $484Gas132 140 143Gas Storage and Pipelines107 82 70Power and Industrial Projects16 90 66Energy Trading(22) 122 (58)Corporate and Other(48) (57) (44)Net Income Attributable to DTE Energy Company$727 $905 $661ELECTRICThe Management’s Narrative Analysis of Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordancewith General Instruction I (2) (a) of Form 10-K for wholly-owned subsidiaries.29The Electric segment consists principally of DTE Electric. Results for Electric segment with a reconciliation to DTE Electric are discussed below: 2015 2014 2013 (In millions)Operating Revenues — Utility operations$4,901 $5,283 $5,199Fuel and purchased power — utility1,573 1,705 1,668Gross Margin3,328 3,578 3,531Operation and maintenance1,344 1,332 1,377Depreciation and amortization637 933 902Taxes other than income277 268 261Asset (gains) losses and impairments, net— (1) (3)Operating Income1,070 1,046 994Other (Income) and Deductions238 222 258Income Tax Expense290 296 252Segment Net Income Attributable to DTE Energy Company$542 $528 $484Reconciliation of Segment Net Income Attributable to DTE Energy Company to DTE Electric Net Income2 4 3DTE Electric Net Income Attributable to DTE Energy Company$544 $532 $487See DTE Electric's Consolidated Statements of Operations in Item 8 of this report for a complete view of its results.Gross Margin decreased $250 million in 2015 and increased $47 million in 2014. Revenues associated with certain mechanisms and surcharges areoffset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations.The following table details changes in various gross margin components relative to the comparable prior period: 2015 2014 (In millions)Implementation of new rates$117 $—Base sales, inclusive of weather effect24 (48)Renewable energy program3 20PSCR disallowance(19) —Securitization bond and tax surcharge(376) (10)Amortization of refundable revenue decoupling/deferred gain— 63Low-income energy assistance surcharge— 17Regulatory mechanisms and other1 5Increase (decrease) in Electric segment Gross Margin$(250) $47Reconciliation of Electric segment Gross Margin to DTE Electric Gross Margin(1) —Increase (decrease) in DTE Electric Gross Margin$(251) $4730 2015 2014 2013 (In thousands of MWh)DTE Electric Sales Residential15,001 14,940 15,273Commercial17,192 16,792 16,661Industrial9,690 10,199 10,303Other291 517 942 42,174 42,448 43,179Interconnection sales (a)4,108 3,630 3,883Total DTE Electric Sales46,282 46,078 47,062 DTE Electric Deliveries Retail and Wholesale42,174 42,448 43,179Electric retail access, including self generators (b)4,899 5,033 5,200Total DTE Electric Sales and Deliveries47,073 47,481 48,379______________________________(a)Represents power that is not distributed by DTE Electric.(b)Represents deliveries for self generators that have purchased power from alternative energy suppliers to supplement their power requirements.DTE Electric residential and commercial sales increased due primarily to favorable weather, while industrial sales decreased due primarily to lowersteel customer load.Operation and maintenance expense increased $12 million in 2015 and decreased $45 million in 2014. The increase in 2015 is primarily due toincreased power plant generation expenses of $28 million, increased line clearance expenses of $25 million, increased distribution operations expenses of$13 million, and $18 million of expenses related to the transition of PLD customers to DTE Electric's distribution system effective July 1, 2014, partiallyoffset by decreased storm restoration expenses of $63 million and decreased employee benefits of $7 million. The decrease in 2014 is primarily due todecreased employee benefit expenses of $68 million, decreased distribution operations expenses of $36 million, and decreased power plant generationexpenses of $7 million, partially offset by higher storm restoration expenses of $19 million, increased low-income energy assistance of $17 million, $17million of expenses related to the transition of PLD customers to DTE Electric's distribution system, and increased energy optimization and renewable energyexpenses of $13 million. The MPSC approved a TRM that provides for recovery of the deferred net incremental revenue requirement associated with thetransition of former PLD customers that is reflected in the Depreciation and amortization line in DTE Electric's Consolidated Statements of Operations.Depreciation and amortization expense decreased $296 million in 2015 and increased $31 million in 2014. The 2015 decrease was due to $342million of decreased amortization of regulatory assets related to Securitization and $15 million associated with the TRM, partially offset by $61 million ofincreased expenses due to an increased depreciable base. The 2014 increase was due to $42 million of increased expense due to an increased depreciable baseand increased amortization of regulatory assets of $3 million, primarily related to Securitization, partially offset by $14 million associated with the TRM.Other (Income) and Deductions increased $16 million in 2015 and decreased $36 million in 2014. The increase in 2015 was primarily due to lowerinvestment earnings of $11 million and higher interest expense of $8 million. The decrease in 2014 was primarily due to decreased interest expenses of $18million and the 2013 contribution to the DTE Energy Foundation of $18 million.Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustained strong cash flows, and earn itsauthorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. Looking forward, additionalfactors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, investment returns and changes in discountrate assumptions in benefit plans and health care costs, uncertainty of legislative or regulatory actions regarding climate change and electric retail access, andeffects of energy efficiency programs. DTE Electric residential and commercial sales have increased due primarily to improved economic activity and havebeen substantially offset by energy efficiency measures taken by customers. DTE Electric expects to continue its efforts to improve productivity and decreasecosts while improving customer satisfaction with consideration of customer rate affordability.31DTE Electric filed a rate case with the MPSC on February 1, 2016 requesting an increase in base rates of $344 million based on a projected twelve-month period ending July 31, 2017. The requested increase in base rates is due primarily to an increase in net plant resulting from infrastructure investments,environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenanceexpenses, and working capital. The rate filing also requests an increase in return on equity from 10.3% to 10.5% on a capital structure of 50% equity and 50%debt. DTE Electric anticipates self-implementing a rate increase in August 2016 with an MPSC order expected by February 2017.GASThe Gas segment consists principally of DTE Gas. Gas results are discussed below: 2015 2014 2013 (In millions)Operating Revenues — Utility operations$1,376 $1,636 $1,474Cost of gas — utility526 725 624Gross Margin850 911 850Operation and maintenance430 456 429Depreciation and amortization104 99 95Taxes other than income62 61 56Operating Income254 295 270Other (Income) and Deductions50 77 50Income Tax Expense72 78 77Net Income Attributable to DTE Energy Company$132 $140 $143Gross Margin decreased $61 million in 2015 and increased $61 million in 2014. Revenues associated with certain mechanisms and surcharges areoffset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations.The following table details changes in various gross margin components relative to the comparable prior period: 2015 2014 (In millions)Weather$(64) $31Infrastructure recovery mechanism12 7Home protection program4 7Revenue decoupling mechanism7 (3)Midstream storage and transportation revenues(10) 6Other(10) 13Increase (decrease) in Gross Margin$(61) $61 2015 2014 2013Gas Markets (in Bcf) Gas sales122 138 128End-user transportation169 167 157 291 305 285Intermediate transportation289 305 300Total Gas sales580 610 585Operation and maintenance expense decreased $26 million in 2015 and increased $27 million in 2014. The decrease in 2015 is primarily due todecreased gas operations expenses of $12 million, decreased employee benefits expenses of $10 million, decreased transmission expenses of $3 million, anddecreased uncollectible expenses of $3 million. The increase in 2014 is primarily due to increased gas operations expenses of $32 million, increaseduncollectible expenses of $4 million, and increased corporate administrative expenses of $3 million, partially offset by decreased employee benefit expensesof $10 million and reduced energy optimization expenses of $2 million.32Other (Income) and Deductions decreased $27 million in 2015 and increased $27 million in 2014. The decrease in 2015 is primarily due to the 2014contribution to the DTE Energy Foundation and other charitable organizations. The increase in 2014 is primarily due to contributions to the DTE EnergyFoundation and other charitable organizations in 2014.Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustained strong cash flows, and earn its authorizedreturn on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additionalfactors may impact earnings such as weather, the outcome of regulatory proceedings, benefit plan design changes, and investment returns and changes indiscount rate assumptions in benefit plans and health care costs. DTE Gas expects to continue its efforts to improve productivity and decrease costs whileimproving customer satisfaction with consideration of customer rate affordability.DTE Gas filed a rate case with the MPSC on December 18, 2015 requesting an increase in base rates of $183 million based on a projected twelve-monthperiod ending October 31, 2017. The requested increase in base rates is due primarily to an increase in net plant of $800 million, inclusive of IRM capitalinvestments being recovered through approved IRM surcharge filings. The rate filing also includes projected changes in sales, operation and maintenanceexpenses, and working capital. The rate filing also requests an increase in return on equity from 10.5% to 10.75% on a capital structure of 52% equity and48% debt. DTE Gas anticipates self-implementing a rate increase in November 2016 with an MPSC order expected by December 2016. Concurrent with theMPSC order in this rate case, the existing IRM surcharge will be terminated. However, in this rate case filing, DTE Gas requested to implement a new IRMsurcharge to become effective in January 2017.GAS STORAGE AND PIPELINESThe Gas Storage and Pipelines segment consists of the non-utility gas pipelines and storage businesses. Gas Storage and Pipelines results are discussedbelow: 2015 2014 2013 (In millions)Operating Revenues — Non-utility operations$243 $203 $132Operation and maintenance58 46 25Depreciation and amortization30 34 23Taxes other than income5 4 3Asset (gains) losses and impairments, net— 1 —Operating Income150 118 81Other (Income) and Deductions(29) (19) (36)Income Tax Expense70 53 45Net Income109 84 72Net Income Attributable to Noncontrolling Interests2 2 2Net Income Attributable to DTE Energy Company$107 $82 $70Operating Revenues — Non-utility operations increased $40 million in 2015 and increased $71 million in 2014. The 2015 increase is due primarily toincreased volumes on the Bluestone Pipeline and Susquehanna gathering systems, partially offset by decreased gas storage revenues due to expiringcontracts being replaced with contracts at lower rates. The 2014 increase is due primarily to increased volumes on the Bluestone Pipeline and additionalsegments placed in service in the Susquehanna gathering system. Storage revenue also increased due to weather favorability in early 2014, partially offset bylower market rates.Operation and maintenance expense increased $12 million in 2015 and increased $21 million in 2014. The 2015 increase is due primarily to increasedactivity on the Bluestone and Susquehanna projects and increased gas storage operations expense. The 2014 increase is due primarily to increased activityon the Bluestone and Susquehanna projects and increased corporate overheads due to growth of this segment.Depreciation and amortization expense decreased $4 million in 2015 and increased $11 million in 2014. The 2015 decrease is due primarily to achange in the estimated useful life of Susquehanna gathering assets related to a contract extension in the fourth quarter of 2014, partially offset by additionalBluestone and Susquehanna projects placed in service. The 2014 increase is due primarily to the growth of the Bluestone and Susquehanna projects.33Other (Income) and Deductions increased $10 million in 2015 and decreased $17 million in 2014. The 2015 increase is due primarily to increasedearnings from pipeline investments. The 2014 decrease is due primarily to decreased earnings from a pipeline investment and increased intercompany interestexpense. The earnings from the pipeline investment were negatively impacted in 2014 by a revenue deferral for depreciation collected in FERC-approvedtariff rates in excess of depreciation expense.Outlook — Gas Storage and Pipelines expects to maintain its steady growth by developing an asset portfolio with multiple growth platforms throughinvestment in new projects and expansions. Gas Storage and Pipelines will continue to look for additional investment opportunities and other storage andpipeline projects at favorable prices. The 2015 capacity expansion of Bluestone Pipeline in Susquehanna County, Pennsylvania and Broome County, NewYork, is complete and included a second compressor facility and approximately six miles of additional pipeline loop to accommodate increased shipperdemand. Planning and design activities are underway for Bluestone Pipeline's 2016 expansion. Additionally, the Susquehanna gathering system is beingexpanded to accommodate increased production. Despite recent pressure on producers from low commodity prices, DTE Energy believes its long-termagreement with Southwestern Energy Production Company and the quality of the natural gas reserves in the Marcellus region soundly positions BluestonePipeline and Susquehanna gathering system for future growth.Progress continues on development activities on the NEXUS Pipeline, a transportation path to transport Appalachian Basin shale gas, including Uticaand Marcellus shale gas, directly to consuming markets in northern Ohio, southeastern Michigan, and Dawn Ontario. DTE Energy owns a 50% partnershipinterest in the NEXUS Pipeline. A FERC application was filed in the fourth quarter of 2015 with an estimated in service date in the fourth quarter of 2017.POWER AND INDUSTRIAL PROJECTSThe Power and Industrial Projects segment is comprised primarily of projects that deliver energy and utility-type products and services to industrial,commercial, and institutional customers, produce reduced emissions fuel, and sell electricity from renewable energy projects. Power and Industrial Projectsresults are discussed below: 2015 2014 2013 (In millions)Operating Revenues — Non-utility operations$2,224 $2,289 $1,950Fuel, purchased power, and gas — non-utility1,837 1,913 1,571Gross Margin387 376 379Operation and maintenance379 368 343Depreciation and amortization78 77 72Taxes other than income15 15 15 Asset (gains) losses and impairments, net106 (12) (4)Operating Loss(191) (72) (47)Other (Income) and Deductions(58) (66) (73)Income Taxes Expense (Benefits)(49) (3) 8Production Tax Credits(91) (97) (53) (140) (100) (45)Net Income7 94 71Net Income (Loss) Attributable to Noncontrolling Interests(9) 4 5Net Income Attributable to DTE Energy Company$16 $90 $66Gross Margin increased $11 million in 2015 and decreased $3 million in 2014. The 2015 increase is primarily due to an $8 million increase inproduction at a renewable power project, a $6 million increase in pricing at two landfill gas projects, a $6 million increase associated with a newlyconstructed project in the on-site business, and a $5 million increase in production in the REF business, partially offset by a $13 million decrease in productsales at the steel projects. The 2014 decrease is primarily due to a $13 million decrease in sales associated with project terminations in the on-site energybusiness, $12 million of higher start-up costs associated with new projects in the REF business, a $3 million decrease in lower pricing in the steel business,partially offset by a $19 million increase associated with new renewable power and landfill gas projects, and a $6 million increase due to the closing of thecoal transportation business.34Operation and maintenance expense increased $11 million in 2015 and increased $25 million in 2014. The 2015 increase is primarily due to costsassociated with closure of the Shenango coke battery. The 2014 increase is primarily due to $16 million of higher maintenance and general administrativeexpenses in the steel business and $9 million of higher spending associated with the start-up of a renewable power project.Depreciation and amortization expense increased by $1 million in 2015 and increased by $5 million in 2014. The 2014 increase is primarily due to $4million associated with the start-up of a renewable power project.Asset (gains) losses and impairments, net decreased by $118 million in 2015 and increased by $8 million in 2014. The 2015 decrease is due primarilyto the closure of the Shenango coke battery and a renewable power project. The 2014 increase is due primarily to a gain associated with a sale of an on-siteproject in 2014 and an asset impairment recorded in 2013.Other (Income) and Deductions decreased by $8 million in 2015 and decreased $7 million in 2014. The 2015 decrease is due primarily to charitablecontributions, and the 2014 decrease is due primarily to lower equity earnings at various projects.Income Taxes - Expense (Benefits) decreased by $46 million in 2015. The decrease is primarily due to the impact of the closure of the Shenango cokebattery and a renewable power project.Income Taxes - Production Tax Credits decreased by $6 million in 2015 and increased $44 million in 2014. The 2015 decrease is primarily due to thereduction of ownership interests in the REF projects. The 2014 increase is due primarily to higher production volumes of refined coal that resulted in highertax credits at REF projects.Net Income (Loss) Attributable to Noncontrolling Interests decreased by $13 million in 2015 and decreased by $1 million in 2014. The 2015 lossallocated to noncontrolling interests is primarily due to lease arrangements with investors at various REF facilities.Outlook — Power and Industrial Projects has constructed and placed in service REF facilities at nine sites including facilities located at six third-partyowned coal-fired power plants. DTE Energy has sold membership interests in four of the facilities and entered into lease arrangements in two of the facilities.DTE Energy will continue to optimize these facilities by seeking investors or entering into lease arrangements for facilities operating at DTE Electric andother utility sites. DTE Energy is in the process of relocating underutilized facility equipment at an existing site to a new third-party owned coal-fired powerplant. In addition, DTE Energy has entered into an agreement to operate an REF facility owned by an outside party located at a third-party owned coal-firedpower plant.DTE Energy expects decreased production levels of metallurgical coke and pulverized coal supplied to steel industry customers for 2016. A recentdownturn in the steel industry in the United States will likely negatively impact the volume and pricing of metallurgical coke sales for the upcoming year.See discussion of potential impairment risk related to long-lived steel related assets in the Critical Accounting Estimates section. The segment has fourrenewable power generation facilities in operation. On-site energy services will continue to be delivered in accordance with the terms of long-term contracts.DTE Energy will continue to look for additional investment opportunities and other energy projects at favorable prices.Power and Industrial Projects will continue to leverage its extensive energy-related operating experience and project management capability todevelop additional energy projects to serve energy intensive industrial customers.35ENERGY TRADINGEnergy Trading focuses on physical and financial power and natural gas marketing and trading, structured transactions, enhancement of returns from itsasset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, andrelated services, which may include the management of associated storage and transportation contracts on the customers' behalf, and the supply or purchaseof renewable energy credits to various customers. Energy Trading results are discussed below: 2015 2014 2013 (In millions)Operating Revenues — Non-utility operations$2,459 $3,762 $1,771Purchased power and gas — non-utility2,417 3,478 1,782Gross Margin42 284 (11)Operation and maintenance67 70 72Depreciation and amortization2 1 1Taxes other than income4 4 4Operating Income (Loss)(31) 209 (88)Other (Income) and Deductions6 10 8Income Tax Expense (Benefit)(15) 77 (38)Net Income (Loss) Attributable to DTE Energy Company$(22) $122 $(58)Operating Revenues — Non-utility operations and Purchased power and gas — non-utility were impacted by a decrease in gas prices, partially offsetby an increase in volumes, primarily in the gas structured strategy for the year ended December 31, 2015. For 2014, these line items were impacted by anincrease in gas volumes and prices, primarily in the gas structured strategy.Gross Margin decreased $242 million in 2015 and increased $295 million in 2014. The decrease in 2015 and the increase in 2014 are primarily due totiming from MTM adjustments on certain transactions in the gas structured strategy.The decrease in Gross Margin in 2015 represents a $155 million decrease in realized margins and an $87 million decrease in unrealized margins. The$155 million decrease in realized margins is due to $201 million of unfavorable results, primarily in gas structured, and power trading strategies, offset by$46 million of favorable results, primarily in power full requirements and gas transportation strategies. The $87 million decrease in unrealized margins is dueto $120 million of unfavorable results, primarily in the gas structured strategy, offset by $33 million of favorable results, primarily in power full requirementsand gas transportation strategies.The increase in Gross Margin in 2014 represents a $92 million increase in realized margins and a $203 million increase in unrealized margins. The $92million increase in realized margins is due to $149 million of favorable results, primarily in gas structured and gas transportation strategies, offset by $57million of unfavorable results, primarily in power full requirements, gas full requirements, and gas trading strategies. The $203 million increase in unrealizedmargins is due to $211 million of favorable results, primarily in gas structured and gas full requirements strategies, offset by $8 million of unfavorable results,primarily in the power full requirements strategy.During the first quarter of 2015, Energy Trading experienced slightly colder than normal weather conditions, on average, in the gas and power marketsserved, unlike the extreme weather conditions in the midwest and northeast that Energy Trading experienced in the first quarter of 2014. Consequently, thisled to less favorable results in gas asset optimization strategies due to lower gas prices as compared to 2014, partially offset by lower realized losses fromEnergy Trading's power full requirements strategy as compared to 2014.36Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financialinstruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significantearnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts. Included in the $201 million ofunfavorable realized results for the year ended December 31, 2015 related to gas strategies is $113 million of timing related gains and losses recognized inprevious years that reversed as the underlying contracts settled. The $113 million of timing related items is comprised of a reversal of timing related losses of$65 million in 2014 and a reversal of timing gains of $48 million in 2015. Included in the $120 million of unfavorable unrealized results for the year endedDecember 31, 2015, related to gas strategies is $126 million of timing related gains and losses. The $126 million of timing related items is the variance oftiming gains of $102 million in 2014 and timing losses of $24 million in 2015, which will reverse in future periods as the underlying contracts settle.Included in the $149 million of favorable realized results for the year ended December 31, 2014 in Energy Trading's gas strategies, is $65 million oftiming related losses recognized in 2013 that reversed as the underlying contracts were settled. Included in the $211 million of favorable unrealized resultsfor the year ended December 31, 2014 in Energy Trading's gas strategies, is $102 million of timing related gains which will reverse in future periods, and theabsence of $89 million of timing related losses in 2013.Outlook — In the near-term, Energy Trading expects market conditions to remain challenging and the profitability of this segment may be impacted bythe volatility in commodity prices and the uncertainty of impacts associated with financial reform, regulatory changes, and changes in operating rules ofregional transmission organizations. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments and physicalpower and natural gas contracts are deemed derivatives, whereas natural gas inventory, pipeline transportation, renewable energy credits, and storage assetsare not derivatives. As a result, DTE Energy will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assetswith futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.See also "Fair Value" in the "Capital Resources and Liquidity" section that follows and Notes 11 and 12 to the Consolidated Financial Statements inItem 8 of this Report, “Fair Value” and "Financial and Other Derivative Instruments", respectively.CORPORATE AND OTHERCorporate and Other includes various holding company activities, and holds certain non-utility debt and energy-related investments. The 2015 net lossof $48 million represents an improvement of $9 million from the 2014 net loss of $57 million due primarily to 2014 investment impairments and lowerdeferred tax expense related to the impact of New York state income tax reform enacted in March 2014, partially offset by higher interest expense. The 2014net loss of $57 million represents an increase of $13 million from the 2013 net loss of $44 million due primarily to increased impairments of investments andincreased deferred tax expense related to New York state income tax reform enacted in March 2014.See Note 9 to the Consolidated Financial Statements in Item 8 of this Report, "Income Taxes".CAPITAL RESOURCES AND LIQUIDITYCash RequirementsDTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire, and pay interest onlong-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital andoperating requirements. DTE Energy expects that cash from operations in 2016 will be approximately $1.8 billion, or approximately $100 million lower than2015, due primarily to higher working capital requirements. DTE Energy anticipates base level utility capital investments; environmental, renewable, andenergy optimization expenditures; expenditures for non-utility businesses; and contributions to equity method investees in 2016 of approximately $2.7billion. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capitalspending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creationcriteria.37 2015 2014 2013Cash and Cash Equivalents(In millions)Cash Flows From (Used For) Operating Activities: Net Income$720 $911 $668Adjustments to reconcile Net Income to Net cash from operating activities: Depreciation and amortization852 1,145 1,094Nuclear fuel amortization46 48 38Allowance for equity funds used during construction(21) (21) (15)Deferred income taxes237 356 164Asset (gains) losses and impairments, net107 (4) (8)Working capital and other(30) (596) 213Net cash from operating activities1,911 1,839 2,154Investing Activities: Plant and equipment expenditures — utility(1,817) (1,784) (1,534)Plant and equipment expenditures — non-utility(203) (265) (342)Acquisition(241) — —Proceeds from sale of assets16 45 36Restricted cash for debt redemption, principally Securitization, net97 3 (1)Other(56) (59) (65)Net cash used for investing activities(2,204) (2,060) (1,906)Financing Activities: Issuance of long-term debt, net of issuance costs956 1,736 1,234Redemption of long-term debt(286) (1,237) (961)Short-term borrowings, net101 267 (109)Issuance of common stock9 — 39Repurchase of common stock— (52) —Dividends on common stock(501) (470) (445)Other3 (27) (19)Net cash from (used for) financing activities282 217 (261)Net Decrease in Cash and Cash Equivalents$(11) $(4) $(13)Cash from Operating ActivitiesA majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factorssuch as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.Cash from operations increased $72 million in 2015. The increase in operating cash flows reflects a decrease in cash expenditures for working capitalitems, partially offset by lower Net Income after adjusting for non-cash and non-operating items. The decreases in depreciation and amortization and deferredincome taxes are partially offset by the increase in asset (gains) losses and impairments, which is primarily due to DTE Energy's closure of the Shenango cokebattery plant in 2015. See Note 4 to the Consolidated Financial Statements in Item 8 of this Report, "Acquisitions and Exit Activities".Cash from operations decreased $315 million in 2014. The reduction in operating cash flows reflects an increase in cash expenditures for workingcapital items, partially offset by higher Net Income after adjusting for non-cash and non-operating items (primarily depreciation and amortization anddeferred income taxes).The change in working capital items in 2015 primarily related to increases in regulatory assets and liabilities, derivative assets and liabilities, accountsreceivable, net, and inventories, partially offset by decreases in accrued pension liability, accrued postretirement liability, and accounts payable. The changein working capital items in 2014 primarily related to fuel inventories, derivative assets and liabilities, and regulatory assets and liabilities, partially offset bythe change in accounts receivable, net, accounts payable, and pension and other postretirement liabilities.38Cash used for Investing ActivitiesCash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant andequipment expenditures and acquisitions. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured fullyvalued assets.Capital spending within the utility businesses is primarily to maintain and improve the electric generation, the electric and natural gas distributioninfrastructure, and to comply with environmental regulations and renewable energy requirements.Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth. DTE Energy looks to make growthinvestments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return andcash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria.For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, andeither expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flowsof DTE Energy, with a clear understanding of any potential impact on its credit ratings.Net cash used for investing activities increased $144 million in 2015 due primarily to DTE Energy's $241 million acquisition in January. This ispartially offset by the increase in restricted cash for debt redemption as this activity primarily relates to Securitization bonds that were fully redeemed inMarch 2015.Net cash used for investing activities increased $154 million in 2014 due primarily to increased capital expenditures by the utility businesses, partiallyoffset by decreased capital expenditures by the non-utility business and increased proceeds from sale of assets.Cash from (used for) Financing ActivitiesDTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy continually evaluates itsleverage target, which is currently 50% to 53%, to ensure it is consistent with the objective of a strong investment grade debt rating.Net cash from financing activities increased $65 million in 2015. The increase is primarily attributable to decreased redemptions of long-term debt,which is offset by decreases in issuances of long-term debt, short-term borrowings, and repurchase of common stock.Net cash from financing activities increased $478 million in 2014. The increase is primarily attributable to increases in short-term borrowings andissuances of long-term debt, partially offset by increased redemptions of long-term debt, repurchases of common stock, and increased dividends on commonstock.OutlookDTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utilitybusinesses. Growth in the utilities is expected to be driven primarily by capital spending to maintain and improve the electric generation and electric andnatural gas distribution infrastructure and to comply with new and existing state and federal regulations that will result in additional environmental andrenewable energy investments which will increase the base from which rates are determined. Non-utility growth is expected from additional investments,primarily in the Gas Storage and Pipelines and Power and Industrial Projects segments.DTE Energy may be impacted by the timing of collection or refund of various recovery and tracking mechanisms, as a result of timing of MPSC orders.Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts toidentify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capitalprojects.DTE Energy has approximately $500 million in long-term debt maturing in the next twelve months. The repayment of the debt is expected to be paidthrough internally generated funds or the issuance of long-term debt.DTE Energy has approximately $1.5 billion of available liquidity at December 31, 2015, consisting of cash and amounts available under unsecuredrevolving credit agreements.39DTE Energy expects to issue approximately $100 million of common stock in 2016 through its pension and other employee benefit plans.At the discretion of management, and depending upon financial market conditions, DTE Energy anticipates making 2016 contributions to the pensionplans of up to $180 million and up to $20 million to the other postretirement benefit plans. The planned contributions will be made in cash or a combinationof cash and DTE Energy common stock.Various subsidiaries of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contractscontain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's creditrating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”) state specific circumstances under which DTE Energycan be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”) are not as specific. Forcontracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy mayultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power,and coal) and the provisions and maturities of the underlying transactions. As of December 31, 2015, DTE Energy's contractual obligation to post collateralin the form of cash or letter of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, wasapproximately $412 million.DTE Energy believes it will have sufficient operating flexibility, cash resources, and funding sources to maintain adequate amounts of liquidity and tomeet future operating cash and capital expenditure needs. However, virtually all of DTE Energy's businesses are capital intensive, or require access to capital,and the inability to access adequate capital could adversely impact earnings and cash flows.See Notes 8, 9, 13, 15, and 18 to the Consolidated Financial Statements in Item 8 of this Report, "Regulatory Matters", "Income Taxes", "Long-TermDebt", "Short-Term Credit Arrangements and Borrowings", and "Retirement Benefits and Trusteed Assets".Contractual ObligationsThe following table details DTE Energy's, including DTE Electric's, contractual obligations for debt redemptions, leases, purchase obligations, andother long-term obligations as of December 31, 2015: Total 2016 2017-2018 2019-2020 2021 andBeyond (In millions)Long-term debt: Mortgage bonds, notes, and other (a)$8,820 $465 $416 $1,115 $6,824Junior subordinated debentures480 — — — 480Capital lease obligations24 9 12 3 —Interest7,022 475 756 754 5,037Operating leases197 37 55 34 71Electric, gas, fuel, transportation, and storage purchase obligations (b)6,097 1,918 1,542 575 2,062Long-term DTE Electric renewable energy power purchase agreements (c)(d)1,379 82 165 165 967Other long-term obligations (e)(f)(g)126 38 64 10 14Total obligations$24,145 $3,024 $3,010 $2,656 $15,455_______________________________________(a)Excludes $15 million of unamortized discount on debt.(b)Excludes amounts associated with full requirements contracts where no stated minimum purchase volume is required.(c)The agreements represent the minimum settlements with suppliers for renewable energy and renewable energy credits under existing contract terms which expire from 2030through 2035. DTE Electric's share of plant output ranges from 44% to 100%.(d)Excludes a power purchase agreement with a non-utility affiliate of DTE Energy.(e)Includes liabilities for unrecognized tax benefits of $3 million.(f)Excludes other long-term liabilities of $138 million not directly derived from contracts or other agreements.(g)At December 31, 2015, DTE Energy met the minimum pension funding levels required under the Employee Retirement Income Security Act of 1974 (ERISA) and the PensionProtection Act of 2006 for the defined benefit pension plans. DTE Energy may contribute more than the minimum funding requirements for the pension plans and may alsomake contributions to the other postretirement benefit plans; however, these amounts are not included in the table above as such amounts are discretionary. Planned funding levelsare disclosed in the Capital Resources and Liquidity and Critical Accounting Estimates sections herein and in Note 18 to the Consolidated Financial Statements in Item 8 of thisReport, "Retirement Benefits and Trusteed Assets".40Credit RatingsCredit ratings are intended to provide banks and capital market participants with a framework for comparing the credit quality of securities and are nota recommendation to buy, sell, or hold securities. DTE Energy, DTE Electric, and DTE Gas' credit ratings affect their costs of capital and other terms offinancing, as well as their ability to access the credit and commercial paper markets. DTE Energy, DTE Electric, and DTE Gas' management believes that thecurrent credit ratings provide sufficient access to capital markets. However, disruptions in the banking and capital markets not specifically related to DTEEnergy, DTE Electric, and DTE Gas may affect their ability to access these funding sources or cause an increase in the return required by investors.As part of the normal course of business, DTE Electric, DTE Gas, and various non-utility subsidiaries of DTE Energy routinely enter into physical orfinancially settled contracts for the purchase and sale of electricity, natural gas, coal, capacity, storage, and other energy-related products and services.Certain of these contracts contain provisions which allow the counterparties to request that DTE Energy posts cash or letters of credit in the event that thesenior unsecured debt rating of DTE Energy is downgraded below investment grade. The amount of such collateral which could be requested fluctuates basedupon commodity prices and the provisions and maturities of the underlying transactions and could be substantial. Also, upon a downgrade below investmentgrade, DTE Energy, DTE Electric, and DTE Gas could have restricted access to the commercial paper market, and if DTE Energy is downgraded belowinvestment grade, the non-utility businesses, especially the Energy Trading and Power and Industrial Projects segments, could be required to restrictoperations due to a lack of available liquidity. A downgrade below investment grade could potentially increase the borrowing costs of DTE Energy, DTEElectric, and DTE Gas and their subsidiaries and may limit access to the capital markets. The impact of a downgrade will not affect DTE Energy, DTEElectric, and DTE Gas' ability to comply with existing debt covenants. While DTE Energy, DTE Electric, and DTE Gas currently do not anticipate such adowngrade, they cannot predict the outcome of current or future credit rating agency reviews.In February 2016, based on DTE Energy's strong and predictable earnings and cash flow, Fitch upgraded DTE Energy's unsecured debt rating from'BBB' to 'BBB+' and upgraded DTE Electric's secured debt rating from 'A' to 'A+'.CRITICAL ACCOUNTING ESTIMATESThe preparation of the Registrants' Consolidated Financial Statements in conformity with generally accepted accounting principles requires thatmanagement apply accounting policies and make estimates and assumptions that affect results of operations and the amounts of assets and liabilities reportedin the Consolidated Financial Statements. The Registrants' management believes that the areas described below require significant judgment in theapplication of accounting policy or in making estimates and assumptions in matters that are inherently uncertain and that may change in subsequent periods.Additional discussion of these accounting policies can be found in the Combined Notes to Consolidated Financial Statements in Item 8 of this Report.RegulationA significant portion of the Registrants' businesses are subject to regulation. This results in differences in the application of generally acceptedaccounting principles between regulated and non-regulated businesses. DTE Electric and DTE Gas are required to record regulatory assets and liabilities forcertain transactions that would have been treated as revenue or expense in non-regulated businesses. Future regulatory changes or changes in the competitiveenvironment could result in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of the Registrants' businesses.The Registrants' management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assetsand liabilities are recoverable or refundable in the current rate environment.See Note 8 to the Consolidated Financial Statements in Item 8 of this Report, "Regulatory Matters".DerivativesDerivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Changes in the fair value of the derivative instruments arerecognized in earnings in the period of change. The normal purchases and normal sales exception requires, among other things, physical delivery inquantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that are designated as normal purchases andnormal sales are not recorded at fair value. Substantially all of the commodity contracts entered into by DTE Electric and DTE Gas meet the criteria specifiedfor this exception.41Fair 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 marketparticipants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based oninputs, which refer broadly to assumptions that market participants use in pricing assets and liabilities. These inputs can be readily observable, marketcorroborated, or generally unobservable inputs. The Registrants' management makes certain assumptions it believes that market participants would use inpricing assets and liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants andtheir counterparties is incorporated in the valuation of the assets and liabilities through the use of credit reserves, the impact of which was immaterial atDecember 31, 2015 and 2014. The Registrants' management believes it uses valuation techniques that maximize the use of observable market-based inputsand minimize the use of unobservable inputs.The fair values the Registrants calculate for their derivatives may change significantly as inputs and assumptions are updated for new information.Actual cash returns realized on derivatives may be different from the results the Registrants estimate using models. As fair value calculations are estimatesbased largely on commodity prices, the Registrants perform sensitivity analyses on the fair values of forward contracts. See the sensitivity analysis inItem 7A. of this report, "Quantitative and Qualitative Disclosures About Market Risk". See also the Fair Value section, herein.See Notes 11 and 12 to the Consolidated Financial Statements in Item 8 of this Report, "Fair Value" and "Financial and Other Derivative Instruments",respectively.Allowance for Doubtful AccountsThe Registrants each establish an allowance for doubtful accounts based on historical losses and their respective management's assessment of existingeconomic conditions, customer trends, and other factors. The allowance for doubtful accounts for DTE Electric and DTE Gas is calculated using the agingapproach that utilizes rates developed in reserve studies and applies these factors to past due receivable balances. The Registrants believe the allowance fordoubtful accounts is based on reasonable estimates.Asset ImpairmentsGoodwillCertain of DTE Energy's reporting units have goodwill or allocated goodwill resulting from business combinations. DTE Energy performs animpairment test for each of the reporting units with goodwill annually or whenever events or circumstances indicate that the value of goodwill may beimpaired.In performing Step 1 of the impairment test, DTE Energy compares the fair value of the reporting unit to its carrying value including goodwill. If thecarrying value including goodwill were to exceed the fair value of a reporting unit, Step 2 of the test would be performed. Step 2 of the impairment testrequires the carrying value of goodwill to be reduced to its fair value, if lower, as of the test date.For Step 1 of the test, DTE Energy estimates the reporting unit's fair value using standard valuation techniques, including techniques which useestimates of projected future results and cash flows to be generated by the reporting unit. Such techniques generally include a terminal value that utilizes anearnings multiple approach, which incorporates the current market values of comparable entities. These cash flow valuations involve a number of estimatesthat require broad assumptions and significant judgment by management regarding future performance. DTE Energy also employs market-based valuationtechniques to test the reasonableness of the indications of value for the reporting units determined under the cash flow technique.DTE Energy performs an annual impairment test each October. In between annual tests, DTE Energy monitors its estimates and assumptions regardingestimated future cash flows, including the impact of movements in market indicators in future quarters, and will update the impairment analyses if atriggering event occurs. While DTE Energy believes the assumptions are reasonable, actual results may differ from projections. To the extent projected resultsor cash flows are revised downward, the reporting unit may be required to write down all or a portion of its goodwill, which would adversely impact DTEEnergy's earnings.42DTE Energy performed its annual impairment test as of October 1, 2015 and determined that the estimated fair value of each reporting unit exceeded itscarrying value, and no impairment existed. As part of the annual impairment test, DTE Energy also compared the aggregate fair value of the reporting units toits overall market capitalization. The implied premium of the aggregate fair value over market capitalization is likely attributable to an acquisition controlpremium (the price in excess of a stock's market price that investors typically pay to gain control of an entity).The results of the test and key estimates that were incorporated are as follows as of the October 1, 2015 valuation date:Reporting Unit Goodwill Fair Value Reduction %(a) Discount Rate Terminal Multiple(b) Valuation Methodology (c) (In millions) Electric $1,208 37% 7% 9.5x DCF, assuming stock saleGas 743 31% 6% 10.5x DCF, assuming stock saleGas Storage and Pipelines 24 74% 8% 11.0x DCF, assuming asset salePower and Industrial Projects (d) 26 23% 7% 10.0x DCF, assuming asset sale (e)Energy Trading 17 47% 10% n/a (f) DCF, assuming asset sale $2,018 ______________________________________(a)Percentage by which the fair value of equity of the reporting unit would need to decline to equal its carrying value, including goodwill.(b)Multiple of enterprise value (sum of debt plus equity value) to earnings before interest, taxes, depreciation, and amortization (EBITDA).(c)Discounted cash flows (DCF) incorporated 2016-2020 projected cash flows plus a calculated terminal value.(d)Power and Industrial Projects excludes the Biomass reporting unit, as this unit has no allocated goodwill.(e)Asset sales were assumed, except for Power and Industrial Projects' reduced emissions fuels projects, which assumed stock sales.(f)Due to lack of market comparable information for Energy Trading, DTE Energy capitalized the terminal year cash flows at the weighted average cost of capital (WACC) in lieu ofapplying a terminal EBITDA multiple.DTE Energy identified a goodwill impairment test trigger for its Power and Industrial Projects reporting unit during the fourth quarter of 2015. Thetrigger related to the closure of the Shenango coke battery plant and the testing for recoverability of the long-lived asset for another coke battery in responseto a sharp downturn in the North American steel industry. Accordingly, DTE Energy performed an interim goodwill impairment test for the Power andIndustrial Projects reporting unit as of November 30, 2015 using updated cash flow and discount rate assumptions. As compared to the annual test, theinterim valuation was negatively impacted by the projected lower value expected to be realized from DTE Energy's steel-related projects during 2016 and ahigher discount rate. The fair value reduction percentage decreased from 23% to 16%. The fair value of the reporting unit exceeded its carrying valueincluding goodwill. Therefore, the reporting unit passed Step 1 of the impairment test. No other triggers were identified during the fourth quarter of 2015. In2016, DTE Energy will continue to monitor the North American steel industry for other events that may indicate the fair value of goodwill is below thecarrying value of the Power and Industrial Projects reporting unit.Long-Lived AssetsThe Registrants evaluate the carrying value of long-lived assets, excluding goodwill, when circumstances indicate that the carrying value of thoseassets may not be recoverable. Conditions that could have an adverse impact on the cash flows and fair value of the long-lived assets are deterioratingbusiness climate, condition of the asset, or plans to dispose of the asset before the end of its useful life. The review of long-lived assets for impairmentrequires significant assumptions about operating strategies and estimates of future cash flows, which require assessments of current and projected marketconditions. An impairment evaluation is based on an undiscounted cash flow analysis at the lowest level for which independent cash flows of long-livedassets can be identified from other groups of assets and liabilities. Impairment may occur when the carrying value of the asset exceeds the futureundiscounted cash flows. When the undiscounted cash flow analysis indicates a long-lived asset is not recoverable, the amount of the impairment loss isdetermined by measuring the excess of the long-lived asset over its fair value. An impairment would require the Registrants to reduce both the long-livedasset and current period earnings by the amount of the impairment, which would adversely impact their earnings.During the fourth quarter of 2015, DTE Energy announced the closure of the Shenango coke battery plant. As a result of the closure, long-lived assetswith a carrying value of $96 million were fully impaired.43In connection with the closure of the Shenango coke battery plant, DTE Energy reviewed another coke battery asset for events and circumstances thatindicate the long-lived asset, of approximately $108 million, within the Power and Industrial Projects reporting unit might be impaired. However, DTEEnergy’s estimate of undiscounted cash flows indicated that such carrying amounts were expected to be recovered. DTE Energy will continue to monitor theassumptions used in this analysis. Further deterioration of the steel industry could lead to a future impairment of the asset.Pension and Other Postretirement CostsDTE Energy sponsors defined benefit pension plans and other postretirement benefit plans for eligible employees of the Registrants. The measurementof the plan obligations and cost of providing benefits under these plans involve various factors, including numerous assumptions and accounting elections.When determining the various assumptions that are required, DTE Energy considers historical information as well as future expectations. The benefit costsare affected by, among other things, the actual rate of return on plan assets, the long-term expected return on plan assets, the discount rate applied to benefitobligations, the incidence of mortality, the expected remaining service period of plan participants, level of compensation and rate of compensation increases,employee age, length of service, the anticipated rate of increase of health care costs, benefit plan design changes, and the level of benefits provided toemployees and retirees. Pension and other postretirement benefit costs attributed to the segments are included with labor costs and ultimately allocated toprojects within the segments, some of which are capitalized.DTE Energy had pension costs of $221 million in 2015, $179 million in 2014, and $228 million in 2013. Other postretirement benefit credits were $99million in 2015, $123 million in 2014, and $42 million in 2013. Pension and other postretirement benefit credits for 2015 are calculated based upon anumber of actuarial assumptions, including an expected long-term rate of return on plan assets of 7.75% for the pension plans and 8.00% for the otherpostretirement benefit plans. In developing the expected long-term rate of return assumptions, DTE Energy evaluated asset class risk and return expectations,as well as inflation assumptions. Projected returns are based on broad equity, bond, and other markets. DTE Energy's 2016 expected long-term rate of returnon pension plan assets is based on an asset allocation assumption utilizing active investment management of 47% in equity markets, 25% in fixed incomemarkets, including long duration bonds, and 28% invested in other assets. DTE Energy's 2016 expected long-term rate of return on other postretirement planassets is based on an asset allocation assumption utilizing active investment management of 41% in equity markets, 25% in fixed income markets, and 34%invested in other assets. Because of market volatility, DTE Energy periodically reviews the asset allocation and rebalances the portfolio when consideredappropriate. Given market conditions and financial market risk considerations, DTE Energy is maintaining its long-term rate of return assumptions for thepension plans and the other postretirement plans at 7.75% and 8.00%, respectively, for 2016. DTE Energy believes these rates are reasonable assumptions forthe long-term rate of return on the plan assets for 2016 given its investment strategy. DTE Energy will continue to evaluate the actuarial assumptions,including its expected rate of return, at least annually.DTE Energy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the expected return on plan assets bythe market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that areto be made during the year. Current accounting rules provide that the MRV of plan assets can be either fair value or a calculated value that recognizeschanges in fair value in a systematic and rational manner over not more than five years. For the pension plans, DTE Energy uses a calculated value whendetermining the MRV of the pension plan assets and recognizes changes in fair value over a three-year period. Accordingly, the future value of assets will beimpacted as previously deferred gains or losses are recognized. Financial markets in 2015 detracted from DTE Energy's investment performance resulting inunrecognized net losses. As of December 31, 2015, DTE Energy had $175 million of cumulative losses that remain to be recognized in the calculation of theMRV of pension assets related to investment performance in 2015 and 2014. For the other postretirement benefit plans, DTE Energy uses fair value whendetermining the MRV of other postretirement benefit plan assets, therefore all investment gains and losses have been recognized in the calculation of MRVfor these plans.The discount rate that DTE Energy utilizes for determining future pension and other postretirement benefit obligations is based on a yield curveapproach and a review of bonds that receive one of the two highest ratings given by a recognized rating agency. The yield curve approach matches projectedpension plan and other postretirement benefit payment streams with bond portfolios reflecting actual liability duration unique to the plans. The discount ratedetermined on this basis was 4.50% for the pension plans and 4.50% for the other postretirement plans at December 31, 2015 compared to 4.12% for thepension plans and 4.10% for the other postretirement plans at December 31, 2014.44The mortality assumptions that DTE Energy used to determine the pension and other postretirement benefit obligations as of December 31, 2015, wereupdated to incorporate the MP-2015 generational projection scale issued by the Society of Actuaries in 2015. The mortality assumptions used atDecember 31, 2015 are the RP-2014 mortality table, with variations by type of plan and participant’s union status and employment status, projected back to2006 using Scale MP-2014 and projected forward using Scale MP-2015.DTE Energy estimates that the 2016 total pension costs will approximate $175 million compared to $221 million in 2015, primarily due to higherdiscount rates and changes to the mortality tables, partially offset by less than expected 2015 returns. The 2016 other postretirement benefit credit willapproximate $110 million compared to $99 million in 2015 due to higher discount rate, changes to the mortality tables, and favorable retiree medicalutilization trends, partially offset by lower than expected financial market returns.The health care trend rates for DTE Energy assume 6.25% for pre-65 participants and 6.75% for post-65 participants for 2016, trending down to 4.50%for both pre-65 and post-65 participants in 2027.Future actual pension and other postretirement benefit costs (credits) will depend on future investment performance, changes in future discount rates,and various other factors related to plan design.Lowering the expected long-term rate of return on the plan assets by one percentage point would have increased the 2015 pension costs byapproximately $38 million. Lowering the discount rate and the salary increase assumptions by one percentage point would have increased the 2015 pensioncosts by approximately $21 million. Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2015other postretirement credit by approximately $15 million. Lowering the discount rate assumption by one percentage point would have decreased the 2015other postretirement credit by approximately $27 million. Lowering the health care cost trend assumptions by one percentage point would have increased theother postretirement credit for 2015 by approximately $6 million.The value of the qualified pension and other postretirement benefit plan assets was $5.4 billion at December 31, 2015 and $5.5 billion at December 31,2014. At December 31, 2015, DTE Energy's qualified pension plans were underfunded by $1 billion and its other postretirement benefit plans wereunderfunded by $230 million. The 2015 funding levels generally increased due to increased discount rates, a change in the mortality tables, and plan sponsorcontributions, partially offset by lower than expected financial market returns.Pension and other postretirement costs and pension cash funding requirements may increase in future years without typical returns in the financialmarkets. DTE Energy made contributions to its qualified pension plans of $177 million in 2015 and $188 million in 2014. At the discretion of management,consistent with the Pension Protection Act of 2006, and depending upon financial market conditions, DTE Energy anticipates making contributions to itsqualified pension plans of up to $180 million in 2016 and up to $960 million over the next five years. DTE Energy made other postretirement benefit plancontributions of $199 million in 2015 and $24 million in 2014. DTE Energy is required by orders issued by the MPSC to make other postretirement benefitcontributions at least equal to the amounts included in the utilities' base rates. As a result, DTE Energy anticipates making up to $20 million of contributionsto its other postretirement plans in 2016 and over the next five years. The planned contributions will be made in cash or a combination of cash and DTEEnergy common stock.See Note 18 to the Consolidated Financial Statements in Item 8 of this Report, "Retirement Benefits and Trusteed Assets".Legal ReservesThe Registrants are involved in various legal proceedings, claims, and litigation arising in the ordinary course of business. The Registrants regularlyassess their liabilities and contingencies in connection with asserted or potential matters, and establish reserves when appropriate. Legal reserves are basedupon the Registrants' management’s assessment of pending and threatened legal proceedings and claims against the Registrants.45Accounting for Tax ObligationsThe Registrants are required to make judgments regarding the potential tax effects of various financial transactions and results of operations in order toestimate their obligations to taxing authorities. The Registrants account for uncertain income tax positions using a benefit recognition model with a two-stepapproach, a more-likely-than-not recognition criterion, and a measurement attribute that measures the position as the largest amount of tax benefit that isgreater than 50% likely of being realized upon ultimate settlement. If the benefit does not meet the more likely than not criteria for being sustained on itstechnical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered tohave met the recognition threshold. The Registrants also have non-income tax obligations related to property, sales and use, and employment-related taxes,and ongoing appeals related to these tax matters.Accounting for tax obligations requires judgments, including assessing whether tax benefits are more likely than not to be sustained, and estimatingreserves for potential adverse outcomes regarding tax positions that have been taken. The Registrants also assess their ability to utilize tax attributes,including those in the form of carry-forwards, for which the benefits have already been reflected in the Consolidated Financial Statements. The Registrantsbelieve the resulting tax reserve balances as of December 31, 2015 and 2014 are appropriate. The ultimate outcome of such matters could result in favorableor unfavorable adjustments to the Registrants' Consolidated Financial Statements, and such adjustments could be material.See Note 9 to the Consolidated Financial Statements in Item 8 of this Report, "Income Taxes".NEW ACCOUNTING PRONOUNCEMENTSSee Note 3 to the Consolidated Financial Statements in Item 8 of this Report, "New Accounting Pronouncements".FAIR VALUEDerivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivativeinstruments include power, natural gas, oil, and certain coal forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energydoes not generally account for as derivatives include natural gas inventory, pipeline transportation contracts, renewable energy credits, and storage assets.See Notes 11 and 12 to the Consolidated Financial Statements in Item 8 of this Report, "Fair Value" and "Financial and Other Derivative Instruments",respectively.The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, andrenewable energy credits which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the relatedphysical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however,the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of therisks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separatecomponents based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the deliverylocation (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broadlevels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and thelowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 11 to Consolidated Financial Statements in Item 8of this Report, "Fair Value".46The following tables provide details on changes in the Registrants' MTM net asset (or liability) position during 2015: Total (In millions)MTM at December 31, 2014$87Reclassified to realized upon settlement(45)Changes in fair value recorded to income(28)Amounts recorded to unrealized income(73)Changes in fair value recorded in regulatory liabilities12Change in collateral held by (for) others16Option premiums paid (received) and other(2)MTM at December 31, 2015$40The table below shows the maturity of the Registrants' MTM positions. The positions from 2019 and beyond principally represent longer tenor gasstructured transactions:Source of Fair Value 2016 2017 2018 2019 and Beyond Total Fair Value (In millions)Level 1 $(13) $(14) $(2) $4 $(25)Level 2 21 7 5 2 35Level 3 41 6 1 (52) (4)MTM before collateral adjustments $49 $(1) $4 $(46) 6Collateral adjustments 34MTM at December 31, 2015 $40Item 7A. Quantitative and Qualitative Disclosures About Market RiskMarket Price RiskThe Electric and Gas businesses have commodity price risk, primarily related to the purchases of coal, natural gas, uranium, and electricity. However,the Registrants do not bear significant exposure to earnings risk, as such changes are included in the PSCR and GCR regulatory rate-recovery mechanisms. Inaddition, changes in the price of natural gas can impact the valuation of lost and stolen gas, storage sales, and transportation services revenue at the Gassegment. The Gas segment manages its market price risk related to storage sales revenue primarily through the sale of long-term storage contracts. TheRegistrants are exposed to short-term cash flows or liquidity risk as a result of the time differential between actual cash settlements and regulatory raterecovery.DTE Energy's Gas Storage and Pipelines business segment has exposure to natural gas price fluctuations which impact the pricing for natural gasstorage and transportation. DTE Energy manages its exposure through the use of short, medium, and long-term storage and transportation contracts.DTE Energy's Power and Industrial Projects business segment is subject to electricity, natural gas, and coal product price risk. DTE Energy manages itsexposure to commodity price risk through the use of long-term contracts.DTE Energy's Energy Trading business segment has exposure to electricity, natural gas, coal, crude oil, heating oil, and foreign currency exchangeprice fluctuations. These risks are managed by the energy marketing and trading operations through the use of forward energy, capacity, storage, options, andfutures contracts, within pre-determined risk parameters.47Credit RiskBankruptciesCertain of the Registrants' customers and suppliers have filed for bankruptcy protection under the U.S. Bankruptcy Code. The Registrants regularlyreview contingent matters relating to these customers and suppliers and their purchase and sale contracts and record provisions for amounts considered at riskof probable loss in the allowance for doubtful accounts. The Registrants believe their accrued amounts are adequate for probable loss.Trading ActivitiesDTE Energy is exposed to credit risk through trading activities. Credit risk is the potential loss that may result if the trading counterparties fail to meettheir contractual obligations. DTE Energy utilizes both external and internal credit assessments when determining the credit quality of trading counterparties.The following table displays the credit quality of DTE Energy's trading counterparties as of December 31, 2015: Credit ExposureBefore CashCollateral CashCollateral Net CreditExposure (In millions)Investment Grade (a) A- and Greater$164 $(2) $162BBB+ and BBB230 — 230BBB-56 — 56Total Investment Grade450 (2) 448Non-investment grade (b)7 — 7Internally Rated — investment grade (c)238 — 238Internally Rated — non-investment grade (d)21 (4) 17Total$716 $(6) $710_______________________________________(a)This category includes counterparties with minimum credit ratings of Baa3 assigned by Moody’s Investors Service (Moody’s) or BBB- assigned by Standard & Poor’s RatingGroup, a division of McGraw-Hill Companies, Inc. (Standard & Poor’s). The five largest counterparty exposures, combined, for this category represented approximately 24% ofthe total gross credit exposure.(b)This category includes counterparties with credit ratings that are below investment grade. The five largest counterparty exposures, combined, for this category represented lessthan 1% of the total gross credit exposure.(c)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, but are considered investment grade based on DTE Energy’s evaluation of thecounterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented approximately 13% of the total gross credit exposure.(d)This category includes counterparties that have not been rated by Moody’s or Standard & Poor’s, and are considered non-investment grade based on DTE Energy’s evaluation ofthe counterparty’s creditworthiness. The five largest counterparty exposures, combined, for this category represented approximately 3% of the total gross credit exposure.OtherThe Registrants engage in business with customers that are non-investment grade. The Registrants closely monitor the credit ratings of these customersand, when deemed necessary and permitted under the tariffs, request collateral or guarantees from such customers to secure their obligations.Interest Rate RiskDTE Energy is subject to interest rate risk in connection with the issuance of debt. In order to manage interest costs, DTE Energy may use treasury locksand interest rate swap agreements. DTE Energy's exposure to interest rate risk arises primarily from changes in U.S. Treasury rates, commercial paper rates, andLondon Inter-Bank Offered Rates (LIBOR). As of December 31, 2015, DTE Energy had a floating rate debt-to-total debt ratio of approximately 5.2%.48Foreign Currency Exchange RiskDTE Energy has foreign currency exchange risk arising from market price fluctuations associated with fixed priced contracts. These contracts aredenominated in Canadian dollars and are primarily for the purchase and sale of natural gas and power, as well as for long-term transportation capacity. Tolimit DTE Energy's exposure to foreign currency exchange fluctuations, DTE Energy has entered into a series of foreign currency exchange forward contractsthrough June 2020.Summary of Sensitivity AnalysesThe Registrants performed sensitivity analyses on the fair values of commodity contracts, long-term debt obligations, and foreign currency exchangeforward contracts. The commodity contracts and foreign currency exchange risk listed below principally relate to energy marketing and trading activities.The sensitivity analysis involved increasing and decreasing forward prices and rates at December 31, 2015 and 2014 by a hypothetical 10% and calculatingthe resulting change in the fair values.The results of the sensitivity analysis calculations as of December 31, 2015 and 2014: Assuming a10% Increase in Prices/Rates Assuming a10% Decrease in Prices/Rates As of December 31, As of December 31, Activity 2015 2014 2015 2014 Change in the Fair Value of (In millions) Gas contracts $(5) $(4) $5 $5 Commodity contractsPower contracts $16 $— $(16) $— Commodity contractsOil contracts $1 $— $(1) $— Commodity contractsInterest rate risk — DTE Energy $(372) $(336) $395 $356 Long-term debtInterest rate risk — DTE Electric $(225) $(202) $243 $216 Long-term debtFor further discussion of market risk, see Management's Discussion and Analysis in Item 7 of this Report and Note 12 to the Consolidated FinancialStatements in Item 8 of this Report, "Financial and Other Derivative Instruments".49Item 8. Financial Statements and Supplementary DataThe following Consolidated Financial Statements and financial statement schedules are included herein: PageDTE Energy — Controls and Procedures51DTE Energy — Report of Independent Registered Public Accounting Firm52DTE Energy — Consolidated Statements of Operations53DTE Energy — Consolidated Statements of Comprehensive Income54DTE Energy — Consolidated Statements of Financial Position55DTE Energy — Consolidated Statements of Cash Flows57DTE Energy — Consolidated Statements of Changes in Equity58DTE Electric — Controls and Procedures59DTE Electric — Report of Independent Registered Public Accounting Firm60DTE Electric — Consolidated Statements of Operations61DTE Electric — Consolidated Statements of Comprehensive Income62DTE Electric — Consolidated Statements of Financial Position63DTE Electric — Consolidated Statements of Cash Flows65DTE Electric — Consolidated Statements of Changes in Shareholder's Equity66Combined Notes to Consolidated Financial Statements67Note 1 — Organization and Basis of Presentation67Note 2 — Significant Accounting Policies70Note 3 — New Accounting Pronouncements76Note 4 — Acquisitions and Exit Activities77Note 5 — Property, Plant, and Equipment78Note 6 — Jointly-Owned Utility Plant80Note 7 — Asset Retirement Obligations80Note 8 — Regulatory Matters81Note 9 — Income Taxes86Note 10 — Earnings Per Share89Note 11 — Fair Value89Note 12 — Financial and Other Derivative Instruments97Note 13 — Long-Term Debt102Note 14 — Preferred and Preference Securities104Note 15 — Short-Term Credit Arrangements and Borrowings104Note 16 — Capital and Operating Leases105Note 17 — Commitments and Contingencies106Note 18 — Retirement Benefits and Trusteed Assets112Note 19 — Stock-Based Compensation126Note 20 — Segment and Related Information128Note 21 — Related Party Transactions131Note 22 — Supplementary Quarterly Financial Information (Unaudited)132Financial Statement Schedule Schedule II — Valuation and Qualifying Accounts14550DTE Energy — Controls and Procedures(a) Evaluation of disclosure controls and proceduresManagement of DTE Energy carried out an evaluation, under the supervision and with the participation of DTE Energy’s Chief Executive Officer (CEO)and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Energy's disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2015, which is the end of the period covered by this report. Based on this evaluation, DTEEnergy’s CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that informationrequired to be disclosed by DTE Energy in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported withinthe time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Energy’smanagement, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in theeffectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls andprocedures will be attained.(b) Management’s report on internal control over financial reportingManagement of DTE Energy is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined inExchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, DTE Energy'sCEO and CFO, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of anyevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedures may deteriorate.Management of DTE Energy has assessed the effectiveness of DTE Energy’s internal control over financial reporting as of December 31, 2015. Inmaking this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO) inInternal Control - Integrated Framework. Based on this assessment, management concluded that, as of December 31, 2015, DTE Energy’s internal controlover financial reporting was effective based on those criteria.The effectiveness of DTE Energy’s internal control over financial reporting as of December 31, 2015 has been audited by PricewaterhouseCoopers LLP,an independent registered public accounting firm who also audited DTE Energy’s financial statements, as stated in their report which appears herein.(c) Changes in internal control over financial reportingThere have been no changes in DTE Energy’s internal control over financial reporting during the quarter ended December 31, 2015 that havematerially affected, or are reasonably likely to materially affect, DTE Energy’s internal control over financial reporting.51REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Board of Directors and Shareholders ofDTE Energy CompanyIn our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, the financial position of DTEEnergy Company and its subsidiaries at December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in theperiod ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion,the financial statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth therein when read inconjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internalcontrol over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework 2013 issued by theCommittee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements andfinancial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal controlover financial reporting, included in the accompanying Management’s report on internal control over financial reporting. Our responsibility is to expressopinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on ourintegrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Thosestandards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatementand whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements includedexamining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reportingincluded obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as weconsidered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal controlover financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairlyreflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are beingmade only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliancewith the policies or procedures may deteriorate./s/ PricewaterhouseCoopers LLPDetroit, MichiganFebruary 10, 201652DTE Energy CompanyConsolidated Statements of Operations Year Ended December 31, 2015 2014 2013 (In millions, except per share amounts)Operating Revenues Utility operations$6,238 $6,884 $6,643Non-utility operations4,099 5,417 3,018 10,33712,3019,661 Operating Expenses Fuel, purchased power, and gas — utility2,081 2,407 2,281Fuel, purchased power, and gas — non-utility3,481 4,615 2,544Operation and maintenance2,214 2,204 2,208Depreciation and amortization852 1,145 1,094Taxes other than income364 352 340Asset (gains) losses and impairments, net106 (12) (9) 9,098 10,711 8,458Operating Income1,239 1,590 1,203 Other (Income) and Deductions Interest expense450 429 436Interest income(13) (10) (9)Other income(209) (196) (201)Other expenses61 92 55 289 315 281Income Before Income Taxes950 1,275 922 Income Tax Expense230 364 254 Net Income720 911 668 Less: Net Income (Loss) Attributable to Noncontrolling Interests(7) 6 7 Net Income Attributable to DTE Energy Company$727 $905 $661 Basic Earnings per Common Share Net Income Attributable to DTE Energy Company$4.05 $5.11 $3.76 Diluted Earnings per Common Share Net Income Attributable to DTE Energy Company$4.05 $5.10 $3.76 Weighted Average Common Shares Outstanding Basic179 177 175Diluted179 177 175Dividends Declared per Common Share$2.84 $2.69 $2.59See Combined Notes to Consolidated Financial Statements53DTE Energy CompanyConsolidated Statements of Comprehensive Income Year Ended December 31, 2015 2014 2013 (In millions)Net Income$720 $911 $668 Other comprehensive income (loss), net of tax: Benefit obligations, net of taxes of $8, $(9), and $13, respectively13 (18) 22Net unrealized gains on investments during the period, net of taxes of $—, $1, and $1, respectively1 1 2Foreign currency translation(4) (2) (2)Other comprehensive income (loss)10 (19) 22 Comprehensive income730 892 690Less comprehensive income (loss) attributable to noncontrolling interests(7) 6 7Comprehensive income attributable to DTE Energy Company$737 $886 $683See Combined Notes to Consolidated Financial Statements54DTE Energy CompanyConsolidated Statements of Financial Position December 31, 2015 2014 (In millions)ASSETSCurrent Assets Cash and cash equivalents$37 $48Restricted cash23 120Accounts receivable (less allowance for doubtful accounts of $49 and $54, respectively) Customer1,276 1,504Other72 94Inventories Fuel and gas480 512Materials and supplies323 292Derivative assets129 128Regulatory assets32 76Other203 238 2,575 3,012Investments Nuclear decommissioning trust funds1,236 1,241Investments in equity method investees514 434Other186 194 1,936 1,869Property Property, plant, and equipment28,121 26,538Less accumulated depreciation and amortization(10,087) (9,718) 18,034 16,820Other Assets Goodwill2,018 2,018Regulatory assets3,692 3,651Securitized regulatory assets— 34Intangible assets89 102Notes receivable85 90Derivative assets54 44Other254 259 6,192 6,198Total Assets$28,737 $27,899See Combined Notes to Consolidated Financial Statements55DTE Energy CompanyConsolidated Statements of Financial Position — (Continued) December 31, 2015 2014 (In millions, except shares)LIABILITIES AND EQUITYCurrent Liabilities Accounts payable$809 $973Accrued interest89 86Dividends payable131 122Short-term borrowings499 398Current portion long-term debt, including capital leases473 274Derivative liabilities57 77Regulatory liabilities41 153Other429 494 2,528 2,577Long-Term Debt (net of current portion) Mortgage bonds, notes, and other8,340 7,860Junior subordinated debentures480 480Capital lease obligations15 3 8,835 8,343Other Liabilities Deferred income taxes3,923 3,701Regulatory liabilities569 667Asset retirement obligations2,194 1,962Unamortized investment tax credit62 41Derivative liabilities86 8Accrued pension liability1,133 1,280Accrued postretirement liability228 515Nuclear decommissioning177 182Other207 281 8,579 8,637 Commitments and Contingencies (Notes 8 and 17) Equity Common stock, without par value, 400,000,000 shares authorized, and 179,470,213 and 176,991,231 shares issued andoutstanding, respectively4,123 3,904Retained earnings4,794 4,578Accumulated other comprehensive loss(145) (155)Total DTE Energy Company Equity8,772 8,327Noncontrolling interests23 15Total Equity8,795 8,342Total Liabilities and Equity$28,737 $27,899See Combined Notes to Consolidated Financial Statements56DTE Energy CompanyConsolidated Statements of Cash FlowsYear Ended December 31, 2015 2014 2013Operating Activities(In millions)Net Income$720 $911 $668Adjustments to reconcile Net Income to net cash from operating activities: Depreciation and amortization852 1,145 1,094Nuclear fuel amortization46 48 38Allowance for equity funds used during construction(21) (21) (15)Deferred income taxes237 356 164Equity earnings of equity method investees(66) (48) (59)Dividends from equity method investees64 55 61Asset (gains) losses and impairments, net107 (4) (8)Changes in assets and liabilities: Accounts receivable, net259 48 (154)Inventories1 (177) 123Accounts payable(158) 128 14Accrued pension liability(147) 627 (644)Accrued postretirement liability(287) 165 (526)Derivative assets and liabilities47 (199) 107Regulatory assets and liabilities85 (1,177) 1,269Other current and noncurrent assets and liabilities172 (18) 22Net cash from operating activities1,911 1,839 2,154Investing Activities Plant and equipment expenditures — utility(1,817) (1,784) (1,534)Plant and equipment expenditures — non-utility(203) (265) (342)Acquisition(241) — —Proceeds from sale of assets16 45 36Restricted cash for debt redemption, principally Securitization, net97 3 (1)Proceeds from sale of nuclear decommissioning trust fund assets885 1,146 1,118Investment in nuclear decommissioning trust funds(898) (1,156) (1,134)Distributions from equity method investees19 13 8Contributions to equity method investees(98) (42) (21)Other36 (20) (36)Net cash used for investing activities(2,204) (2,060) (1,906)Financing Activities Issuance of long-term debt, net of issuance costs956 1,736 1,234Redemption of long-term debt(286) (1,237) (961)Short-term borrowings, net101 267 (109)Issuance of common stock9 — 39Repurchase of common stock— (52) —Dividends on common stock(501) (470) (445)Other3 (27) (19)Net cash from (used for) financing activities282 217 (261)Net Decrease in Cash and Cash Equivalents(11) (4) (13)Cash and Cash Equivalents at Beginning of Period48 52 65Cash and Cash Equivalents at End of Period$37 $48 $52 Supplemental disclosure of cash information Cash paid (received) for: Interest, net of interest capitalized$428 $415 $418Income taxes$14 $(35) $121Supplemental disclosure of non-cash investing and financing activities Plant and equipment expenditures in accounts payable$207 $212 $329See Combined Notes to Consolidated Financial Statements57DTE Energy CompanyConsolidated Statements of Changes in Equity Accumulated Other Non- Common Stock Retained Comprehensive Controlling Shares Amount Earnings Income (Loss) Interest Total (Dollars in millions, shares in thousands)Balance, December 31, 2012172,352 $3,587 $3,944 $(158) $38 $7,411Net Income— — 661 — 7 668Dividends declared on common stock— — (454) — — (454)Issuance of common stock589 39 — — — 39Contribution of common stock to pension plan3,026 200 — — — 200Benefit obligations, net of tax— — — 22 — 22Net change in unrealized gains on investments, net of tax— — — 2 — 2Foreign currency translation— — — (2) — (2)Stock-based compensation, distributions to noncontrollinginterests, and other1,120 81 (1) — (12) 68Balance, December 31, 2013177,087 $3,907 $4,150 $(136) $33 $7,954Net Income— — 905 — 6 911Dividends declared on common stock— — (476) — — (476)Repurchase of common stock(713) (52) — — — (52)Benefit obligations, net of tax— — — (18) — (18)Net change in unrealized gains on investments, net of tax— — — 1 — 1Foreign currency translation (2) (2)Stock-based compensation, distributions to noncontrollinginterests, and other617 49 (1) — (24) 24Balance, December 31, 2014176,991 $3,904 $4,578 $(155) $15 $8,342Net Income (Loss)— — 727 — (7) 720Dividends declared on common stock— — (510) — — (510)Issuance of common stock105 9 — — — 9Contribution of common stock to VEBA Trust1,428 117 — — — 117Benefit obligations, net of tax— — — 13 — 13Net change in unrealized gains on investments, net of tax— — — 1 — 1Foreign currency translation— — — (4) — (4)Stock-based compensation, net contributions fromnoncontrolling interests, and other946 93 (1) — 15 107Balance, December 31, 2015179,470 $4,123 $4,794 $(145) $23 $8,795See Combined Notes to Consolidated Financial Statements58DTE Electric — Controls and Procedures(a) Evaluation of disclosure controls and proceduresManagement of DTE Electric carried out an evaluation, under the supervision and with the participation of DTE Electric’s Chief Executive Officer(CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of DTE Electric’s disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2015, which is the end of the period covered by this report. Based on this evaluation, DTEElectric’s CEO and CFO have concluded that such disclosure controls and procedures are effective in providing reasonable assurance that informationrequired to be disclosed by DTE Electric in reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized, and reported withinthe time periods specified in the U.S. Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to DTE Electric’smanagement, including its CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Due to the inherent limitations in theeffectiveness of any disclosure controls and procedures, management cannot provide absolute assurance that the objectives of its disclosure controls andprocedures will be attained.(b) Management’s report on internal control over financial reportingManagement of DTE Electric is responsible for establishing and maintaining adequate internal control over financial reporting as such term is definedin Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, DTE Electric'sCEO and CFO, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of anyevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedures may deteriorate.Management of DTE Electric has assessed the effectiveness of DTE Electric’s internal control over financial reporting as of December 31, 2015. Inmaking this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO) inInternal Control - Integrated Framework. Based on this assessment, management concluded that, as of December 31, 2015, DTE Electric’s internal controlover financial reporting was effective based on those criteria.This annual report does not include an audit report of DTE Electric’s independent registered public accounting firm regarding internal control overfinancial reporting. Management’s report was not subject to audit by DTE Electric’s independent registered public accounting firm pursuant to rules of theSecurities and Exchange Commission that permit DTE Electric to provide only management’s report in this annual report.(c) Changes in internal control over financial reportingThere have been no changes in DTE Electric’s internal control over financial reporting during the quarter ended December 31, 2015 that havematerially affected, or are reasonably likely to materially affect, DTE Electric’s internal control over financial reporting.59REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Board of Directors and Shareholder ofDTE Electric CompanyIn our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, the financial position of DTEElectric Company and its subsidiaries at December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in theperiod ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion,the financial statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth therein when read inconjunction with the related consolidated financial statements. These financial statements and financial statement schedule are the responsibility of theCompany’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. Weconducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accountingprinciples used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion./s/ PricewaterhouseCoopers LLPDetroit, MichiganFebruary 10, 201660DTE Electric CompanyConsolidated Statements of Operations Year Ended December 31, 2015 2014 2013 (In millions)Operating Revenues — Utility operations$4,900 $5,282 $5,197 Operating Expenses Fuel and purchased power — utility1,574 1,706 1,668Operation and maintenance1,342 1,331 1,376Depreciation and amortization633 927 896Taxes other than income277 267 260Asset (gains) losses and impairments, net— (1) (3) 3,826 4,230 4,197Operating Income1,074 1,052 1,000 Other (Income) and Deductions Interest expense258 250 268Interest income— (1) —Other income(60) (62) (54)Other expenses40 35 45 238 222 259Income Before Income Taxes836 830 741 Income Tax Expense292 298 254 Net Income$544 $532 $487See Combined Notes to Consolidated Financial Statements61DTE Electric CompanyConsolidated Statements of Comprehensive Income Year Ended December 31, 2015 2014 2013 (In millions)Net Income$544 $532 $487Other comprehensive income (loss), net of tax: Transfer of benefit obligations, net of taxes of $18 in 201527 — —Benefit obligations, net of taxes of $(4) and $4 for 2014 and 2013, respectively— (10) 5Net unrealized gains on investments during the period, net of taxes of $—, $—, and $—, respectively1 — 1Other comprehensive income (loss)28(10)6Comprehensive income$572$522$493See Combined Notes to Consolidated Financial Statements62DTE Electric CompanyConsolidated Statements of Financial Position December 31, 2015 2014 (In millions)ASSETSCurrent Assets Cash and cash equivalents$15 $14Restricted cash, principally Securitization— 96Accounts receivable (less allowance for doubtful accounts of $28 and $29, respectively) Customer657 688Affiliates14 31Other40 15Inventories Fuel271 269Materials and supplies251 231Notes receivable Affiliates— 8Other— 8Regulatory assets17 46Other66 73 1,331 1,479Investments Nuclear decommissioning trust funds1,236 1,241Other35 172 1,271 1,413Property Property, plant, and equipment21,391 19,805Less accumulated depreciation and amortization(7,646) (7,216) 13,745 12,589Other Assets Regulatory assets2,969 2,913Securitized regulatory assets— 34Intangible assets34 37Prepaid postretirement costs — affiliates24 —Other180 182 3,207 3,166Total Assets$19,554 $18,647See Combined Notes to Consolidated Financial Statements63DTE Electric CompanyConsolidated Statements of Financial Position — (Continued) December 31, 2015 2014 (In millions, except shares)LIABILITIES AND SHAREHOLDER'S EQUITYCurrent Liabilities Accounts payable Affiliates$40 $60Other329 366Accrued interest62 58Current portion long-term debt, including capital leases157 118Regulatory liabilities19 150Short-term borrowings Affiliates75 84Other272 50Other138 151 1,092 1,037Long-Term Debt (net of current portion) Mortgage bonds, notes, and other5,473 5,144Capital lease obligations15 — 5,488 5,144Other Liabilities Deferred income taxes3,498 3,186Regulatory liabilities199 245Asset retirement obligations2,020 1,796Unamortized investment tax credit58 36Nuclear decommissioning177 182Accrued pension liability — affiliates976 1,200Accrued postretirement liability — affiliates307 520Other66 105 7,301 7,270 Commitments and Contingencies (Notes 8 and 17)— — Shareholder's Equity Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding4,086 3,786Retained earnings1,585 1,436Accumulated other comprehensive income (loss)2 (26)Total Shareholder's Equity5,673 5,196Total Liabilities and Shareholder's Equity$19,554 $18,647See Combined Notes to Consolidated Financial Statements64DTE Electric CompanyConsolidated Statements of Cash Flows Year Ended December 31, 2015 2014 2013 (In millions)Operating Activities Net Income$544 $532 $487Adjustments to reconcile Net Income to net cash from operating activities: Depreciation and amortization633 927 896Nuclear fuel amortization46 48 38Allowance for equity funds used during construction(20) (21) (14)Deferred income taxes320 297 108Asset (gains) losses and impairments, net— (1) (3)Changes in assets and liabilities: Accounts receivable, net33 33 (30)Inventories(22) (97) 36Prepaid postretirement benefit costs — affiliates(24) — —Accounts payable(46) 11 (23)Accrued pension liability — affiliates(224) 495 (663)Accrued postretirement liability — affiliates(213) 151 (417)Regulatory assets and liabilities65 (926) 1,029Other current and noncurrent assets and liabilities58 (65) 44Net cash from operating activities1,150 1,384 1,488Investing Activities Plant and equipment expenditures(1,545) (1,561) (1,325)Acquisitions(310) — —Restricted cash for debt redemption, principally Securitization, net96 4 2Notes receivable — affiliate8 192 (200)Proceeds from sale of nuclear decommissioning trust fund assets885 1,146 1,118Investment in nuclear decommissioning trust funds(898) (1,156) (1,134)Transfer of Rabbi Trust assets to affiliate137 — —Other6 (14) (33)Net cash used for investing activities(1,621) (1,389) (1,572)Financing Activities Issuance of long-term debt, net of issuance costs495 942 768Redemption of long-term debt(135) (837) (590)Capital contribution by parent company300 190 400Short-term borrowings, net — other222 50 (130)Short-term borrowings, net — affiliate(8) 26 (22)Dividends on common stock(395) (370) (342)Other(7) (9) (3)Net cash from (used for) financing activities472 (8) 81Net Increase (Decrease) in Cash and Cash Equivalents1 (13) (3)Cash and Cash Equivalents at Beginning of Period14 27 30Cash and Cash Equivalents at End of Period$15 $14 $27 Supplemental disclosure of cash information Cash paid (received) for: Interest, net of interest capitalized$244 $240 $256Income taxes$(53) $4 $183Supplemental disclosure of non-cash investing and financing activities Plant and equipment expenditures in accounts payable$150 $162 $231See Combined Notes to Consolidated Financial Statements65DTE Electric CompanyConsolidated Statements of Changes in Shareholder's Equity Accumulated Additional Other Common Stock Paid in Retained Comprehensive Shares Amount Capital Earnings Income (Loss) Total (Dollars in millions, shares in thousands)Balance, December 31, 2012138,632 $1,386 $1,810 $1,129 $(22) $4,303Net Income— — — 487 — 487Dividends declared on common stock— — — (342) — (342)Benefit obligations, net of tax— — — — 5 5Net change in unrealized gains on investments, net of tax— — — — 1 1Capital contribution by parent company— — 400 — — 400Balance, December 31, 2013138,632 $1,386 $2,210 $1,274 $(16) $4,854Net Income— — — 532 — 532Dividends declared on common stock— — — (370) — (370)Benefit obligations, net of tax— — — — (10) (10)Capital contribution by parent company— — 190 — — 190Balance, December 31, 2014138,632 $1,386 $2,400 $1,436 $(26) $5,196Net Income— — — 544 — 544Dividends declared on common stock— — — (395) — (395)Transfer of benefit obligations, net of tax— — — — 27 27Net change in unrealized gains on investments, net of tax— — — — 1 1Capital contribution by parent company— — 300 — — 300Balance, December 31, 2015138,632 $1,386 $2,700 $1,585 $2 $5,673See Combined Notes to Consolidated Financial Statements66DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial StatementsIndex of Combined Notes to Consolidated Financial StatementsThe Combined Notes to Consolidated Financial Statements are a combined presentation for DTE Energy and DTE Electric. The following list indicatesthe Registrant(s) to which each note applies:Note 1 Organization and Basis of Presentation DTE Energy and DTE ElectricNote 2 Significant Accounting Policies DTE Energy and DTE ElectricNote 3 New Accounting Pronouncements DTE Energy and DTE ElectricNote 4 Acquisitions and Exit Activities DTE Energy and DTE ElectricNote 5 Property, Plant, and Equipment DTE Energy and DTE ElectricNote 6 Jointly-Owned Utility Plant DTE Energy and DTE ElectricNote 7 Asset Retirement Obligations DTE Energy and DTE ElectricNote 8 Regulatory Matters DTE Energy and DTE ElectricNote 9 Income Taxes DTE Energy and DTE ElectricNote 10 Earnings Per Share DTE EnergyNote 11 Fair Value DTE Energy and DTE ElectricNote 12 Financial and Other Derivative Instruments DTE Energy and DTE ElectricNote 13 Long-Term Debt DTE Energy and DTE ElectricNote 14 Preferred and Preference Securities DTE Energy and DTE ElectricNote 15 Short-Term Credit Arrangements and Borrowings DTE Energy and DTE ElectricNote 16 Capital and Operating Leases DTE Energy and DTE ElectricNote 17 Commitments and Contingencies DTE Energy and DTE ElectricNote 18 Retirement Benefits and Trusteed Assets DTE Energy and DTE ElectricNote 19 Stock-Based Compensation DTE Energy and DTE ElectricNote 20 Segment and Related Information DTE EnergyNote 21 Related Party Transactions DTE ElectricNote 22 Supplementary Quarterly Financial Information (Unaudited) DTE Energy and DTE ElectricNOTE 1 — ORGANIZATION AND BASIS OF PRESENTATIONCorporate StructureDTE Energy owns the following businesses:•DTE Electric is a public utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.2 million customers insoutheastern Michigan;•DTE Gas is a public gas utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.2 millioncustomers throughout Michigan and the sale of storage and transportation capacity; and•Other businesses involved in 1) natural gas pipelines, gathering, and storage; 2) power and industrial projects; and 3) energy marketing andtrading operations.DTE Electric and DTE Gas are regulated by the MPSC. Certain activities of DTE Electric and DTE Gas, as well as various other aspects of businessesunder DTE Energy are regulated by the FERC. In addition, the Registrants are regulated by other federal and state regulatory agencies including the NRC, theEPA, the MDEQ, and the CFTC.67DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Basis of PresentationThe accompanying Consolidated Financial Statements of the Registrants are prepared using accounting principles generally accepted in the UnitedStates of America. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities,revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from the Registrants' estimates.The information in these combined notes relates to each of the Registrants as noted in the Index of Combined Notes to Consolidated FinancialStatements. However, DTE Electric does not make any representation as to information related solely to DTE Energy or the subsidiaries of DTE Energy otherthan itself.Certain prior year balances for the Registrants were reclassified to match the current year's Consolidated Financial Statements presentation. Suchrevisions include amounts reclassified to separate Operating Revenues and Fuel, purchased power, and gas between Utility operations and Non-utilityoperations and from Operations and maintenance to Fuel, purchased power, and gas — non-utility related to the Power and Industrial Projects segment. Thereclassifications did not affect DTE Energy's Net Income for the prior periods, as such, they are not deemed material to the previously issued ConsolidatedFinancial Statements. For reclassifications of deferred tax assets and liabilities arising from ASU 2015-17 see Note 3 to the Consolidated FinancialStatements, "New Accounting Pronouncements".Principles of ConsolidationThe Registrants consolidate all majority-owned subsidiaries and investments in entities in which they have controlling influence. Non-majority ownedinvestments are accounted for using the equity method when the Registrants are able to significantly influence the operating policies of the investee. Whenthe Registrants do not influence the operating policies of an investee, the cost method is used. These Consolidated Financial Statements also reflect theRegistrants' proportionate interests in certain jointly-owned utility plants. The Registrants eliminate all intercompany balances and transactions.The Registrants evaluate whether an entity is a VIE whenever reconsideration events occur. The Registrants consolidate VIEs for which they are theprimary beneficiary. If a Registrant is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method ofaccounting. When assessing the determination of the primary beneficiary, a Registrant considers all relevant facts and circumstances, including: the power,through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorbthe expected losses and/or the right to receive the expected returns of the VIE. The Registrants perform ongoing reassessments of all VIEs to determine if theprimary beneficiary status has changed.Legal entities within DTE Energy's Power and Industrial Projects segment enter into long-term contractual arrangements with customers to supplyenergy-related products or services. The entities are generally designed to pass-through the commodity risk associated with these contracts to the customers,with DTE Energy retaining operational and customer default risk. These entities generally are VIEs and consolidated when DTE Energy is the primarybeneficiary. In addition, DTE Energy has interests in certain VIEs through which control of all significant activities is shared with partners, and therefore areaccounted for under the equity method.DTE Energy has variable interests in VIEs through certain of its long-term purchase and sale contracts. DTE Electric has variable interests in VIEsthrough certain of its long-term purchase contracts. As of December 31, 2015, the carrying amount of assets and liabilities in DTE Energy's ConsolidatedStatements of Financial Position that relate to its variable interests under long-term purchase and sale contracts are predominantly related to working capitalaccounts and generally represent the amounts owed by or to DTE Energy for the deliveries associated with the current billing cycle under the contracts. As ofDecember 31, 2015, the carrying amount of assets and liabilities in DTE Electric's Consolidated Statements of Financial Position that relate to its variableinterests under long-term purchase contracts are predominantly related to working capital accounts and generally represent the amounts owed by DTEElectric for the deliveries associated with the current billing cycle under the contracts. The Registrants have not provided any significant form of financialsupport associated with these long-term contracts. There is no significant potential exposure to loss as a result of DTE Energy's variable interests throughthese long-term purchase and sale contracts. In addition, there is no significant potential exposure to loss as a result of DTE Electric's variable intereststhrough these long-term purchase contracts.68DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)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 awholly-owned special purpose entity, Securitization. DTE Electric performed servicing activities including billing and collecting surcharge revenue forSecuritization. The remaining amounts due on the rate reduction bonds were paid in March 2015. The associated regulatory assets were fully amortized byMarch 31, 2015. Subsequent to the pay-down of the bonds, Securitization is no longer a VIE but continues to be consolidated by the Registrants as a votinginterest entity.The maximum risk exposure for consolidated VIEs is reflected on the Registrants' Consolidated Statements of Financial Position. For non-consolidatedVIEs, the maximum risk exposure is generally limited to its investment and amounts which it has guaranteed.The following table summarizes the major Consolidated Statements of Financial Position items for consolidated VIEs as of December 31, 2015 and2014. All assets and liabilities of a consolidated VIE are presented where it has been determined that a consolidated VIE has either (1) assets that can be usedonly to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. Securitization,included in the DTE Energy table below for December 31, 2014, also relates to DTE Electric. VIEs, in which DTE Energy holds a majority voting interest andis the primary beneficiary, that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIE's obligationshave been excluded from the table below. December 31, 2015 December 31, 2014 Total Securitization Other Total (In millions)ASSETS Cash and cash equivalents$14 $— $7 $7Restricted cash8 96 8 104Accounts receivable18 26 15 41Inventories82 — 67 67Property, plant, and equipment, net66 — 81 81Securitized regulatory assets— 34 — 34Other current and long-term assets4 1 6 7 $192 $157 $184 $341 LIABILITIES Accounts payable and accrued current liabilities$13 $3 $8 $11Current portion long-term debt, including capital leases8 105 10 115Current regulatory liabilities— 32 — 32Mortgage bonds, notes, and other10 — 15 15Capital lease obligations— — 3 3Other current and long-term liabilities6 9 6 15 $37 $149 $42 $191Amounts for DTE Energy's non-consolidated VIEs as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 (In millions)Investment in equity method investees$136 $134Notes receivable$15 $15Equity Method InvestmentsInvestments in non-consolidated affiliates that are not controlled by the Registrants, but over which they have significant influence, are accounted forusing the equity method. At December 31, 2015 and 2014, DTE Energy's share of the underlying equity in the net assets of the investees exceeded thecarrying amounts of Investments in equity method investees by $81 million, respectively. The difference is being amortized over the life of the underlyingassets.69DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Equity method investees are described below: Investments % Owned Segment 2015 2014 2015 2014 Description (In millions) Significant Equity Method Investees Gas Storage and Pipelines NEXUS Pipeline $89 $16 50% 50% A proposed 255-mile pipeline to transport Utica andMarcellus shale gas to Ohio, Michigan, and Ontario marketcentersVector Pipeline 96 98 40% 40% 348-mile pipeline connecting Chicago, Michigan, andOntario market centersMillennium Pipeline 111 110 26% 26% 182-mile pipeline serving markets in the Northeast $296 $224 Other Equity Method Investees Other Segments 218 210 $514 $434 The balance in Other Equity Method Investees are individually insignificant and are primarily from the Power and Industrial Projects segment. Theseinvestments are comprised of projects that deliver energy and utility-type products and services to an industrial customer, sell electricity from renewableenergy projects under long-term power purchase agreements, and produce and sell metallurgical coke.For further information by segment, see Note 20 to the Consolidated Financial Statements, "Segment and Related Information".NOTE 2 — SIGNIFICANT ACCOUNTING POLICIESRevenuesThe Registrants' revenues from the sale and delivery of electricity, and DTE Energy's revenues from the sale, delivery, and storage of natural gas arerecognized as services are provided. DTE Electric and DTE Gas record revenues for electricity and gas provided but unbilled at the end of each month. Ratesfor DTE Electric and DTE Gas include provisions to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas, and certain othercosts. Revenues are adjusted for differences between actual costs subject to reconciliation and the amounts billed in current rates. Under or over recoveredrevenues related to these cost recovery mechanisms are included in Regulatory assets or liabilities on the Registrants' Consolidated Statements of FinancialPosition and are recovered or returned to customers through adjustments to the billing factors.For further discussion of recovery mechanisms authorized by the MPSC, see Note 8 to the Consolidated Financial Statements, "Regulatory Matters".DTE Energy's non-utility businesses recognize revenues as services are provided and products are delivered. For discussion of derivative contracts, seeNote 12 to the Consolidated Financial Statements, "Financial and Other Derivative Instruments".70DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Other IncomeOther income for the Registrants is recognized for non-operating income such as equity earnings, allowance for equity funds used during construction,and contract services. DTE Energy's Power and Industrial Projects segment also recognizes Other income in connection with the sale of membership interestsin reduced emissions fuel facilities to investors. In exchange for the cash received, the investors will receive a portion of the economic attributes of thefacilities, including income tax attributes. The transactions are not treated as a sale of membership interests for financial reporting purposes. Other income isconsidered earned when refined coal is produced and tax credits are generated. Power and Industrial Projects recognized approximately $83 million, $78million, and $81 million of Other income for the years ended December 31, 2015, 2014, and 2013, respectively.For information on equity earnings by segment, see Note 20 to the Consolidated Financial Statements, "Segment and Related Information".Accounting for ISO TransactionsDTE Electric participates in the energy market through MISO. MISO requires that DTE Electric submit hourly day-ahead, real-time, and FTR bids andoffers for energy at locations across the MISO region. DTE Electric accounts for MISO transactions on a net hourly basis in each of the day-ahead, real-time,and FTR markets and net transactions across all MISO energy market locations. In any single hour DTE Electric records net purchases in Fuel, purchasedpower, and gas — utility and net sales in Operating Revenues — Utility operations on the Registrants' Consolidated Statements of Operations.The Energy Trading segment participates in the energy markets through various independent system operators and regional transmission organizations(ISOs and RTOs). These markets require that Energy Trading submits hourly day-ahead, real-time bids and offers for energy at locations across each region.Energy Trading submits bids in the annual and monthly auction revenue rights and FTR auctions to the regional transmission organizations. Energy Tradingaccounts for these transactions on a net hourly basis for the day-ahead, real-time, and FTR markets. These transactions are related to trading contracts which,if derivatives, are presented on a net basis in Operating Revenues — Non-utility operations, and if non-derivatives, the realized gains and losses for sales arerecorded in Operating Revenues — Non-utility operations and purchases are recorded in Fuel, purchased power, and gas — non-utility in the DTE EnergyConsolidated Statements of Operations.DTE Electric and Energy Trading record accruals for future net purchases adjustments based on historical experience, and reconcile accruals to actualcosts when invoices are received from MISO and other ISOs and RTOs.Changes in Accumulated Other 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. The amounts recorded to Accumulated other comprehensive income (loss) for the Registrants include unrealized gains and losses onavailable-for-sale securities and changes in benefit obligations, consisting of deferred actuarial losses and prior service costs. The amounts recorded toAccumulated other comprehensive income (loss) relating solely to DTE Energy also include unrealized gains and losses from derivatives accounted for ascash flow hedges, DTE Energy's interest in other comprehensive income of equity investees which comprise the net unrealized gains and losses oninvestments, and foreign currency translation adjustments. Refer to Note 18 to the Consolidated Financial Statements, "Retirement Benefits and TrusteedAssets", regarding the transfer of a portion of DTE Electric benefit obligations during the year.71DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table summarizes the changes in DTE Energy's Accumulated other comprehensive income (loss) by component for the years endedDecember 31, 2015 and 2014: Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) NetUnrealizedLossonDerivatives NetUnrealizedGain/(Loss)onInvestments BenefitObligations(b) ForeignCurrencyTranslation Total (In millions)Balance, December 31, 2013$(4) $(6) $(126) $— $(136)Other comprehensive income (loss) before reclassifications— 1 (25) (2) (26)Amounts reclassified from Accumulated other comprehensive income— — 7 — 7Net current-period Other comprehensive income (loss)— 1(18)(2)(19)Balance, December 31, 2014$(4) $(5)$(144)$(2)$(155)Other comprehensive income (loss) before reclassifications— 1 2 (4) (1)Amounts reclassified from Accumulated other comprehensive income— — 11 — 11Net current-period Other comprehensive income (loss)— 113(4)10Balance, December 31, 2015$(4) $(4)$(131)$(6)$(145)______________________________________(a)All amounts are net of tax, except for Foreign currency translation.(b)The amounts reclassified from Accumulated other comprehensive income (loss) are included in the computation of the net periodic pension and other postretirement benefit costs(see Note 18 to the Consolidated Financial Statements "Retirement Benefits and Trusteed Assets").The following table summarizes the changes in DTE Electric's Accumulated other comprehensive income (loss) by component for the years endedDecember 31, 2015 and 2014: Changes in Accumulated Other Comprehensive Income (Loss) byComponent (a) Net Unrealized Gain onInvestments Benefit Obligations (b) Total (In millions)Balance, December 31, 2013$1 $(17) $(16)Other comprehensive loss before reclassifications— (12) (12)Amounts reclassified from Accumulated other comprehensive income— 2 2Net current-period Other comprehensive loss— (10) (10)Balance, December 31, 2014$1 $(27) $(26)Other comprehensive income before reclassifications1 — 1Transfer of amounts from Accumulated other comprehensive income to affiliate— 27 27Amounts reclassified from Accumulated other comprehensive income— — —Net current-period Other comprehensive income1 27 28Balance, December 31, 2015$2 $— $2______________________________________(a)All amounts are net of tax.(b)The amounts reclassified from Accumulated other comprehensive income (loss) are included in the computation of the net periodic pension and other postretirement benefit costs(see Note 18 to the Consolidated Financial Statements "Retirement Benefits and Trusteed Assets").Cash, Cash Equivalents, and Restricted CashCash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months orless. Restricted cash consists of funds held to satisfy requirements of certain debt and DTE Energy partnership operating agreements. Restricted cashdesignated for interest and principal payments within one year is classified as a Current Asset.72DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)ReceivablesAccounts receivable are primarily composed of trade receivables and unbilled revenue. The Registrants' Accounts receivable are stated at net realizablevalue.The allowance for doubtful accounts for DTE Electric and DTE Gas is generally calculated using the aging approach that utilizes rates developed inreserve studies. DTE Electric and DTE Gas establish an allowance for uncollectible accounts based on historical losses and management’s assessment ofexisting economic conditions, customer trends, and other factors. Customer accounts are generally considered delinquent if the amount billed is not receivedby the due date, which is typically in 21 days, however, factors such as assistance programs may delay aggressive action. DTE Electric and DTE Gas assesslate payment fees on trade receivables based on past-due terms with customers. Customer accounts are written off when collection efforts have beenexhausted. The time period for write-off is 150 days after service has been terminated.The customer allowance for doubtful accounts for DTE Energy's other businesses is calculated based on specific review of probable future collectionsbased on receivable balances in excess of 30 days.DTE Energy unbilled revenues of $620 million and $773 million, including $237 million and $250 million of DTE Electric unbilled revenues, areincluded in Customer Accounts receivable at December 31, 2015 and 2014, respectively.Notes ReceivableNotes receivable, or financing receivables, for DTE Energy are primarily comprised of capital lease receivables and loans and are included in Notesreceivable and Other current assets on DTE Energy’s Consolidated Statements of Financial Position. Notes receivable, or financing receivables, for DTEElectric are primarily comprised of loans.Notes receivable are typically considered delinquent when payment is not received for periods ranging from 60 to 120 days. The Registrants ceaseaccruing interest (nonaccrual status), consider a note receivable impaired, and establish an allowance for credit loss when it is probable that all principal andinterest amounts due will not be collected in accordance with the contractual terms of the note receivable. Cash payments received on nonaccrual status notesreceivable, that do not bring the account contractually current, are first applied to contractually owed past due interest, with any remainder applied toprincipal. Accrual of interest is generally resumed when the note receivable becomes contractually current.In determining the allowance for credit losses for notes receivable, the Registrants consider the historical payment experience and other factors that areexpected to have a specific impact on the counterparty’s ability to pay. In addition, the Registrants monitor the credit ratings of the counterparties fromwhich they have Notes receivable.InventoriesInventory related to utility operations is generally valued at average cost. Inventory related to non-utility operations is valued at the lower of cost ormarket.DTE Gas' natural gas inventory of $65 million and $43 million as of December 31, 2015 and 2014, respectively, is determined using the last-in, first-out (LIFO) method. The replacement cost of gas remaining in storage exceeded the LIFO cost by $60 million and $110 million at December 31, 2015 and2014, respectively.Property, Retirement and Maintenance, and Depreciation and AmortizationProperty is stated at cost and includes construction-related labor, materials, overheads, and AFUDC for utility property. The cost of utility propertiesretired is charged to accumulated depreciation. Expenditures for maintenance and repairs are charged to expense when incurred, except for Fermi 2.Utility property at DTE Electric and DTE Gas is depreciated over its estimated useful life using straight-line rates approved by the MPSC.DTE Energy's non-utility property is depreciated over its estimated useful life using the straight-line method.Depreciation and amortization expense also includes the amortization of certain regulatory assets for the Registrants.73DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Approximately $4 million and $16 million of expenses related to Fermi 2 refueling outages were accrued at December 31, 2015 and 2014, respectively.Amounts are accrued on a pro-rata basis, generally over an 18-month period, that coincides with scheduled refueling outages at Fermi 2. This accrual ofoutage costs matches the regulatory recovery of these costs in rates set by the MPSC. See Note 8 to the Consolidated Financial Statements, "RegulatoryMatters".The cost of nuclear fuel is capitalized. The amortization of nuclear fuel is included within Fuel, purchased power, and gas — utility in the DTE EnergyConsolidated Statements of Operations, and Fuel and purchased power in the DTE Electric Consolidated Statements of Operations, and is recorded using theunits-of-production method.Long-Lived AssetsLong-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not berecoverable. If the carrying amount of the asset exceeds the expected discounted future cash flows generated by the asset, an impairment loss is recognizedresulting in the asset being written down to its estimated fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, lesscosts to sell.Intangible AssetsDTE Energy has certain Intangible assets as shown below: December 31, 2015 2014 (In millions)Emission allowances$1 $1Renewable energy credits38 45Contract intangible assets117 122 156 168Less accumulated amortization62 57Intangible assets, net94 111Less current intangible assets5 9 $89 $102DTE Electric has certain Intangible assets as shown below: December 31, 2015 2014 (In millions)Emission allowances$1 $1Renewable energy credits38 45 39 46Less current intangible assets5 9 $34 $37Emission allowances and renewable energy credits are charged to expense, using average cost, as the allowances and credits are consumed in theoperation of the businesses by the Registrants. DTE Energy amortizes contract Intangible assets on a straight-line basis over the expected period of benefit,ranging from 1 to 26 years. DTE Energy's Intangible assets amortization expense was $11 million in 2015, $12 million in 2014, and $14 million in 2013.74DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table summarizes DTE Energy's estimated contract intangible amortization expense expected to be recognized during each year through2020:Estimated amortization expense(In millions)2016$102017$72018$72019$72020$5Excise and Sales TaxesThe Registrants record the billing of excise and sales taxes as a receivable with an offsetting payable to the applicable taxing authority, with no netimpact on the Registrants' Consolidated Statements of Operations.Deferred Debt CostsThe costs related to the issuance of long-term debt are deferred and amortized over the life of each debt issue. The deferred amounts are included inOther long-term assets on the Registrant's Consolidated Statements of Financial Position. In accordance with MPSC regulations applicable to DTE Energy’selectric and gas utilities the unamortized discount, premium, and expense related to utility debt redeemed with a refinancing are amortized over the life of thereplacement issue. Discount, premium, and expense on early redemptions of debt associated with DTE Energy's non-utility operations are charged toearnings.Investments in Debt and Equity SecuritiesThe Registrants generally classify investments in debt and equity securities as either trading or available-for-sale and have recorded such investmentsat market value with unrealized gains or losses included in earnings or in Other comprehensive income or loss, respectively. Changes in the fair value ofFermi 2 nuclear decommissioning investments are recorded as adjustments to Regulatory assets or liabilities, due to a recovery mechanism from customers.The Registrants' equity investments are reviewed for impairment each reporting period. If the assessment indicates that the impairment is other thantemporary, a loss is recognized resulting in the equity investment being written down to its estimated fair value. See Note 11 of the Consolidated FinancialStatements, "Fair Value".Government GrantsGrants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met.When grants are received related to Property, plant, and equipment, the Registrants reduce the cost of the assets on their Consolidated Statements of FinancialPosition, resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of theassociated expense in the period in which the expense is incurred.DTE Energy FoundationDTE Energy's charitable contributions to the DTE Energy Foundation were $12 million, $25 million, and $18 million for the years ended December 31,2015, 2014, and 2013, respectively. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is tocontribute to and assist charitable organizations.75DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Other Accounting PoliciesSee the following notes for other accounting policies impacting the Registrants’ Consolidated Financial Statements:Note Title7 Asset Retirement Obligations8 Regulatory Matters9 Income Taxes11 Fair Value12 Financial and Other Derivative Instruments19 Stock-Based CompensationNOTE 3 — NEW ACCOUNTING PRONOUNCEMENTSIn May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The objectives of this ASU are to improve upon revenuerecognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principleis that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to inexchange for those goods or services. This ASU also requires expanded qualitative and quantitative disclosures regarding the nature, amount, timing, anduncertainty of revenues and cash flows arising from contracts with customers. In July 2015, the FASB deferred implementation of the revenue standard to beeffective for the first interim period within annual reporting periods beginning after December 15, 2017. The standard is to be applied retrospectively andearly adoption is permitted in the preceding year. The Registrants are currently assessing the impact of this ASU on their Consolidated Financial Statements.In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which changes the analysis that a reporting entitymust perform to determine whether it should consolidate certain types of legal entities. The ASU affects (1) limited partnerships and similar legal entities, (2)evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiarydetermination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. It is effective for the Registrants forthe first interim period within annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Registrants are currentlyassessing the impact of this ASU on their Consolidated Financial Statements.In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costsrelated to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent withdebt discounts. This ASU is effective for reporting periods beginning after December 15, 2015 and interim periods therein. It is to be applied retrospectivelyand early adoption is permitted. Had the Registrants early adopted this ASU it would have decreased assets and liabilities on DTE Energy’s and DTEElectric’s Consolidated Statements of Financial Position by $74 million and $36 million, respectively, at December 31, 2015, and $73 million and $35million, respectively, at December 31, 2014.In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory. The ASU replaces the current lowerof cost or market test with a lower of cost or net realizable value test when cost is determined on a first-in, first-out or average cost basis. The standard iseffective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. It is to be applied prospectively andearly adoption is permitted. The ASU will not have a significant impact on the Registrants' Consolidated Financial Statements.In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires that all deferred tax assetsand liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU is effective for reporting periodsbeginning after December 15, 2016, including interim periods therein. It may be applied either prospectively or retrospectively, and early adoption ispermitted. The Registrants adopted this ASU at December 31, 2015. The adoption of this ASU impacted DTE Energy’s and DTE Electric’s ConsolidatedStatements of Financial Position by decreasing assets and liabilities for 2014 by $75 million and $2 million, respectively.76DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 4 — ACQUISITIONS AND EXIT ACTIVITIESAcquisitionsOn January 21, 2015, DTE Electric closed on an acquisition of a 732 MW simple-cycle natural gas facility in Carson City, Michigan from The LSPower Group. The facility will serve to meet customer needs during periods of peak demand. DTE Electric has completed its valuation analysis to arrive at thefair value of the assets acquired. The cash consideration and total purchase price of approximately $241 million was allocated based on the underlying fairvalue of the assets acquired, which was primarily Property, plant, and equipment. The pro forma results of operations have not been presented for DTEElectric as the effects of the acquisition were not material to either Registrant's Consolidated Statements of Operations.On October 1, 2015, DTE Electric closed on an acquisition of a 350 MW simple-cycle natural gas facility in East China Township, Michigan from anon-utility affiliate of DTE Energy. The facility will serve to meet customer needs during periods of peak demand. DTE Electric has completed its purchaseaccounting. The cash consideration and total purchase price of approximately $69 million was based on the net book value of the assets acquired, which wasprimarily Property, plant, and equipment. The pro forma results of operations have not been presented for DTE Electric as the effects of the acquisition werenot material to its Consolidated Statements of Operations.Exit ActivitiesOn December 17, 2015, DTE Energy announced the closure of the Shenango coke battery plant in response to a sharp downturn in the North Americansteel industry. The plant, which is included in the Power and Industrial Projects segment, is located in Pittsburgh, PA. As a result of the closure, DTE Energyrecorded a one-time pre-tax non-cash impairment charge of $111 million. The charge included $96 million to fully impair the long-lived assets, employeeseverance expenses related to the workforce reduction of approximately 170 employees for $3 million, and other expenses, including write downs ofinventory, of $12 million. DTE Energy's coke production has been shifted to a larger, more efficient coke battery plant in the Power and Industrial Projectssegment. Production of coke from the Shenango coke battery plant ceased in January 2016.A summary of the charges in the Consolidated Statements of Operations resulting from DTE Energy's exit activities is shown below: 2015 (In millions)Fuel, purchased power, and gas — non-utility$5Operation and maintenance10Asset (gains) losses and impairments, net96Total Exit Activity Charges$111For amounts accrued at December 31, 2015 related to these exit activities, DTE Energy expects future cash payments of approximately $7 million to bemade in 2016. DTE Energy anticipates incurring additional costs, including environmental remediation costs, in connection with the closure. An estimate ofthe amount of additional costs and timing of the activities cannot be determined at December 31, 2015 as alternatives are currently being evaluated, however,the likelihood of these costs being material to DTE Energy's Consolidated Financial Statements is remote.77DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 5 — PROPERTY, PLANT, AND EQUIPMENTThe following is a summary of Property, plant, and equipment by classification as of December 31: 2015 2014Property, plant, and equipment(In millions)DTE Electric Generation$11,767 $10,712Distribution7,816 7,414Other1,808 1,679Total DTE Electric21,39119,805DTE Gas Distribution3,124 2,946Storage453 448Transmission and other890 863Total DTE Gas4,467 4,257Non-utility and other2,263 2,476Total DTE Energy28,121 26,538Less accumulated depreciation and amortization DTE Electric Generation(4,346) (3,863)Distribution(2,707) (2,822)Other(593) (531)Total DTE Electric(7,646) (7,216)DTE Gas Distribution(1,163) (1,130)Storage(147) (142)Transmission and other(370) (363)Total DTE Gas(1,680) (1,635)Non-utility and other(761) (867)Total DTE Energy(10,087) (9,718)Net DTE Energy Property, plant, and equipment$18,034 $16,820Net DTE Electric Property, plant, and equipment$13,745 $12,589AFUDC and interest capitalized was approximately $34 million and $37 million for DTE Energy for the years ended December 31, 2015 and 2014,respectively, including AFUDC capitalized of approximately $31 million and $32 million for DTE Electric for the years ended December 31, 2015 and 2014,respectively.The composite depreciation rate for DTE Electric was approximately 3.5% in 2015 and 3.4% in 2014 and 2013. The composite depreciation rate forDTE Gas was 2.6% in 2015 and 2.4% in 2014 and 2013. The average estimated useful life for each major class of utility Property, plant, and equipment as ofDecember 31, 2015 follows: Estimated Useful Lives in YearsUtility Generation Distribution StorageDTE Electric 40 41 N/ADTE Gas N/A 50 53The estimated useful lives for DTE Electric's Other utility assets range from 5 to 62 years, while the estimated useful lives for DTE Gas' Transmissionand other utility assets range from 5 to 70 years. The estimated useful lives for major classes of DTE Energy's non-utility assets and facilities range from 3 to55 years.78DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following is a summary of Depreciation and amortization expense for DTE Energy, including DTE Electric: 2015 2014 2013 (In millions)Property, plant, and equipment$740 $683 $630Regulatory assets and liabilities150 159 163Securitized regulatory assets (a)(38) 303 301 $852 $1,145 $1,094The following is a summary of Depreciation and amortization expense for DTE Electric: 2015 2014 2013 (In millions)Property, plant, and equipment$545 $489 $457Regulatory assets and liabilities126 135 138Securitized regulatory assets (a)(38) 303 301 $633 $927 $896_______________________________________(a)Securitization surcharges ended in December 2014 with remaining over recovery refunded to customers in 2015. Securitization bonds were paid and Securitization regulatoryassets amortization was completed in 2015. The $38 million credit represents the final adjustments to close out the Securitization program.Capitalized software costs are classified as Property, plant, and equipment and the related amortization is included in accumulated depreciation andamortization on the Registrants' Consolidated Financial Statements. The Registrants capitalize the costs associated with computer software developed orobtained for use in their businesses. The Registrants amortize capitalized software costs on a straight-line basis over the expected period of benefit, rangingfrom 3 to 15 years for DTE Energy and 5 to 15 years for DTE Electric. The following balances for capitalized software relate to DTE Energy, including DTEElectric: Year Ended December 31, 2015 2014 2013 (In millions)Amortization expense of capitalized software$98 $77 $71Gross carrying value of capitalized software$770 $668 Accumulated amortization of capitalized software$439 $335 The following balances for capitalized software relate to DTE Electric: Year Ended December 31, 2015 2014 2013 (In millions)Amortization expense of capitalized software$80 $71 $64Gross carrying value of capitalized software$664 $590 Accumulated amortization of capitalized software$369 $293 Property under capital leases for the Registrants is as follows: DTE Energy DTE Electric 2015 2014 2015 2014 (In millions)Gross property under capital leases$48 $35 $22 $9Accumulated amortization of property under capital leases$26 $27 $1 $579DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 6 — JOINTLY-OWNED UTILITY PLANTDTE Electric has joint ownership interest in two power plants, Belle River and Ludington Hydroelectric Pumped Storage. DTE Electric’s share of directexpenses of the jointly-owned plants are included in Fuel, purchased power, and gas — utility and Operation and maintenance expenses in the DTE EnergyConsolidated Statements of Operations and Fuel and purchased power and Operation and maintenance expenses in the DTE Electric Consolidated Statementsof Operations. Ownership information of the two utility plants as of December 31, 2015 was as follows: Belle River LudingtonHydroelectricPumped StorageIn service date1984-1985 1973Total plant capacity1,270 MW 1,955 MWOwnership interest(a) 49%Investment in Property, plant, and equipment (in millions)$1,779 $443Accumulated depreciation (in millions)$1,053 $154_______________________________________(a)DTE Electric's ownership interest is 63% in Unit No. 1, 81% of the facilities applicable to Belle River used jointly by the Belle River and St. Clair Power Plants and 75% incommon facilities used at Unit No. 2.Belle RiverThe Michigan Public Power Agency (MPPA) has an ownership interest in Belle River Unit No. 1 and other related facilities. The MPPA is entitled to19% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance, and capital improvementcosts.Ludington Hydroelectric Pumped StorageConsumers Energy Company has an ownership interest in the Ludington Hydroelectric Pumped Storage Plant. Consumers Energy is entitled to 51% ofthe total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance, and capital improvement costs.NOTE 7 — ASSET RETIREMENT OBLIGATIONSDTE Electric has a legal retirement obligation for the decommissioning costs for its Fermi 1 and Fermi 2 nuclear plants, dismantlement of facilitieslocated on leased property, and various other operations. DTE Electric has conditional retirement obligations for asbestos and PCB removal at certain of itspower plants and various distribution equipment. DTE Gas has conditional retirement obligations for gas pipelines, certain service centers, compressor andgate stations. The Registrants recognize such obligations as liabilities at fair market value when they are incurred, which generally is at the time theassociated assets are placed in service. Fair value is measured using expected future cash outflows discounted at the Registrants' credit-adjusted risk-free rate.For its utility operations, the Registrants recognize in the Consolidated Statements of Operations removal costs in accordance with regulatory treatment. Anydifferences between costs recognized related to asset retirement and those reflected in rates are recognized as either a Regulatory asset or liability on theConsolidated Statements of Financial Position.If a reasonable estimate of fair value cannot be made in the period in which the retirement obligation is incurred, such as for assets with indeterminatelives, the liability is recognized when a reasonable estimate of fair value can be made. Natural gas storage system and certain other distribution assets for DTEGas and substations, manholes, and certain other distribution assets for DTE Electric have an indeterminate life. Therefore, no liability has been recorded forthese assets.80DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)A reconciliation of the asset retirement obligations for 2015 follows: DTE Energy DTE Electric (In millions)Asset retirement obligations at December 31, 2014$1,962 $1,796Accretion119 111Liabilities incurred33 33Revision in estimated cash flows80 80Asset retirement obligations at December 31, 2015$2,194 $2,020The Revision in estimated cash flows was principally attributed to the impact of the Coal Combustion Residuals on DTE Electric's coal ash storagefacility AROs. Refer to Note 17 to the Consolidated Financial Statements, "Commitments and Contingencies", for discussion of the implications of the CoalCombustion Residuals.Approximately $1.8 billion of the asset retirement obligations represent nuclear decommissioning liabilities that are funded through a surcharge toelectric customers over the life of the Fermi 2 nuclear plant. The NRC has jurisdiction over the decommissioning of nuclear power plants and requiresminimum decommissioning funding based upon a formula. The MPSC and FERC regulate the recovery of costs of decommissioning nuclear power plantsand both require the use of external trust funds to finance the decommissioning of Fermi 2. Rates approved by the MPSC provide for the recovery ofdecommissioning costs of Fermi 2 and the disposal of low-level radioactive waste. DTE Electric is continuing to fund FERC jurisdictional amounts fordecommissioning even though explicit provisions are not included in FERC rates. DTE Electric believes the MPSC and FERC collections will be adequateto fund the estimated cost of decommissioning. The decommissioning assets, anticipated earnings thereon, and future revenues from decommissioningcollections will be used to decommission Fermi 2. DTE Electric expects the liabilities to be reduced to zero at the conclusion of the decommissioningactivities. If amounts remain in the trust funds for Fermi 2 following the completion of the decommissioning activities, those amounts will be disbursed basedon rulings by the MPSC and FERC.A portion of the funds recovered through the Fermi 2 decommissioning surcharge and deposited in external trust accounts is designated for the removalof non-radioactive assets and returning the site to greenfield. This removal and greenfielding is not considered a legal liability. Therefore, it is not includedin the asset retirement obligation, but is reflected as the Nuclear decommissioning liability. The decommissioning of Fermi 1 is funded by DTE Electric.Contributions to the Fermi 1 trust are discretionary. For additional discussion of Nuclear decommissioning trust fund assets, see Note 11 to the ConsolidatedFinancial Statements, "Fair Value".NOTE 8 — REGULATORY MATTERSRegulationDTE Electric and DTE Gas are subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs,including the costs of generating facilities and regulatory assets, conditions of service, accounting, and operating-related matters. DTE Electric is alsoregulated by the FERC with respect to financing authorization and wholesale electric activities. Regulation results in differences in the application ofgenerally accepted accounting principles between regulated and non-regulated businesses.The Registrants are unable to predict the outcome of the unresolved regulatory matters discussed herein. Resolution of these matters is dependent uponfuture MPSC orders and appeals, which may materially impact the Consolidated Financial Statements of the Registrants.81DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Regulatory Assets and LiabilitiesDTE Electric and DTE Gas are required to record Regulatory assets and liabilities for certain transactions that would have been treated as revenue orexpense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs ofproviding regulated services and be charged to and collected from customers. Future regulatory changes or changes in the competitive environment couldresult in the discontinuance of this accounting treatment for Regulatory assets and liabilities for some or all of the Registrants' businesses and may require thewrite-off of the portion of any Regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes thatcurrently available facts support the continued use of Regulatory assets and liabilities and that all Regulatory assets and liabilities are recoverable orrefundable in the current regulatory environment.The following are balances and a brief description of the Registrants' Regulatory assets and liabilities at December 31: DTE Energy DTE Electric 2015 2014 2015 2014Assets(In millions)Recoverable pension and other postretirement costs: Pension$2,112 $2,284 $1,592 $1,743Other postretirement costs256 234 198 191Asset retirement obligation565 448 565 448Recoverable Michigan income taxes248 267 203 220Removal costs asset118 15 118 15Unamortized loss on reacquired debt63 67 41 44Other recoverable income taxes61 66 61 66Deferred environmental costs54 59 — —Transitional Reconciliation Mechanism43 14 43 14Cost to achieve Performance Excellence Process33 54 28 46Accrued PSCR/GCR revenue12 61 — 34Recoverable income taxes related to Securitized regulatory assets— 19 — 19Other159 139 137 119 3,724 3,727 2,986 2,959Less amount included in Current Assets(32) (76) (17) (46) $3,692 $3,651 $2,969 $2,913Securitized regulatory assets$— $34 $— $34 DTE Energy DTE Electric 2015 2014 2015 2014Liabilities(In millions)Removal costs liability$291 $308 $— $—Renewable energy197 227 197 227Negative pension offset46 67 — —Accrued PSCR/GCR refund37 — 15 —Refundable income taxes23 33 — —Energy optimization10 24 — 14Fermi 2 refueling outage4 16 4 16Securitization over recovery— 71 — 71Refundable revenue decoupling/deferred gain— 63 — 63Other2 11 2 4 $610 $820 $218 $395Less amount included in Current Liabilities(41) (153) (19) (150) $569 $667 $199 $24582DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)As noted below, certain Regulatory assets for which costs have been incurred have been included (or are expected to be included, for costs incurredsubsequent to the most recently approved rate case) in DTE Electric's or DTE Gas' rate base, thereby providing a return on invested costs (except as noted).Certain other regulatory assets are not included in rate base but accrue recoverable carrying charges until surcharges to collect the assets are billed. CertainRegulatory assets do not result from cash expenditures and therefore do not represent investments included in rate base or have offsetting liabilities thatreduce rate base.ASSETS•Recoverable pension and other postretirement costs — Accounting rules for pension and other postretirement benefit costs require, among otherthings, the recognition in Other comprehensive income of the actuarial gains or losses and the prior service costs that arise during the period but thatare not immediately recognized as components of net periodic benefit costs. DTE Electric and DTE Gas record the impact of actuarial gains or lossesand prior service costs as a Regulatory asset since the traditional rate setting process allows for the recovery of pension and other postretirementcosts. The asset will reverse as the deferred items are amortized and recognized as components of net periodic benefit costs. (a)•Asset retirement obligation — This obligation is for Fermi 2 decommissioning costs. The asset captures the timing differences between expenserecognition and current recovery in rates and will reverse over the remaining life of the related plant. (a)•Recoverable Michigan income taxes — In July 2007, the MBT was enacted by the State of Michigan. State deferred tax liabilities were establishedfor DTE Energy’s utilities and offsetting Regulatory assets were recorded as the impacts of the deferred tax liabilities will be reflected in rates as therelated taxable temporary differences reverse and flow through current income tax expense. In May 2011, the MBT was repealed and the MCIT wasenacted. The Regulatory asset was remeasured to reflect the impact of the MCIT tax rate. (a)•Removal costs asset — Receivable for the recovery of asset removal expenditures in excess of amounts collected from customers.•Unamortized loss on reacquired debt — The unamortized discount, premium, and expense related to debt redeemed with a refinancing are deferred,amortized, and recovered over the life of the replacement issue.•Other recoverable income taxes — Income taxes receivable from DTE Electric’s customers representing the difference in property-related deferredincome taxes and amounts previously reflected in DTE Electric’s rates. This asset will reverse over the remaining life of the related plant. (a)•Deferred environmental costs — The MPSC approved the deferral of investigation and remediation costs associated with DTE Gas' former MGPsites. Amortization of deferred costs is over a ten-year period beginning in the year after costs were incurred, with recovery (net of any insuranceproceeds) through base rate filings. (a)•Transitional Reconciliation Mechanism (TRM) — The MPSC approved the recovery of the deferred net incremental revenue requirement associatedwith the transition of PLD customers to DTE Electric's distribution system, effective July 1, 2014. Annual reconciliations will be filed and surchargeswill be implemented to recover approved amounts.•Cost to achieve Performance Excellence Process (PEP) — The MPSC authorized the deferral of costs to implement the PEP. These costs consist ofemployee severance, project management, and consultant support. These costs are amortized over a ten-year period beginning with the yearsubsequent to the year the costs were deferred.•Accrued PSCR/GCR revenue — Receivable for the temporary under-recovery of and carrying costs on fuel and purchased power costs incurred byDTE Electric which are recoverable through the PSCR mechanism and temporary under-recovery of and carrying costs on gas costs incurred by DTEGas which are recoverable through the GCR mechanism.•Recoverable income taxes related to Securitized regulatory assets — Receivable for the recovery of income taxes to be paid on the non-bypassablesecuritization bond surcharge. A non-bypassable securitization tax surcharge, which ended in December 2014, was in place to recover the incometax over a 14-year period. (a)83DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)•Securitized regulatory assets — The net book balance of the Fermi 2 nuclear plant was written off in 1998 and an equivalent regulatory asset wasestablished. In 2001, the Fermi 2 regulatory asset and certain other regulatory assets were securitized pursuant to PA 142 and an MPSC order. A non-bypassable securitization bond surcharge, which ended in December 2014, was in place to recover the Securitized regulatory asset over a 14-yearperiod.________________________________________________(a)Regulatory assets not earning a return or accruing carrying charges.LIABILITIES•Removal costs liability — The amount collected from customers for the funding of future asset removal activities.•Renewable energy — Amounts collected in rates in excess of renewable energy expenditures.•Negative pension offset — DTE Gas' negative pension costs are not included as a reduction to its authorized rates; therefore, DTE Gas is accruing aRegulatory liability to eliminate the impact on earnings of the negative pension expense accrued. This Regulatory liability will reverse to the extentDTE Gas' pension expense is positive in future years.•Accrued PSCR/GCR refund — Liability for the temporary over-recovery of and a return on power supply costs and transmission costs incurred byDTE Electric which are recoverable through the PSCR mechanism and temporary over-recovery of and a return on gas costs incurred by DTE Gaswhich are recoverable through the GCR mechanism.•Refundable income taxes — Income taxes refundable to DTE Gas' customers representing the difference in property-related deferred income taxespayable and amounts recognized pursuant to MPSC authorization.•Energy optimization (EO) — Amounts collected in rates in excess of energy optimization expenditures.•Fermi 2 refueling outage — Accrued liability for refueling outage at Fermi 2 pursuant to MPSC authorization.•Securitization over recovery — Over recovery of securitization bond expenses.•Refundable revenue decoupling/deferred gain — Amounts were originally accrued as refundable to DTE Electric customers for the change inrevenue resulting from the difference between actual average sales per customer compared to the base level of average sales per customer establishedby the MPSC. In 2012, the MCOA issued a decision reversing the MPSC's decision to authorize a RDM for DTE Electric. The revenue decouplingliability was reversed and, after receiving an order from the MPSC to defer the resulting gain for future amortization, DTE Electric created aregulatory liability representing its obligation to refund the gain. The deferred gain was amortized into earnings in 2014 and 2015.2014 Electric Rate Case FilingDTE Electric filed a rate case with the MPSC on December 19, 2014 requesting an increase in base rates of $370 million based on a projected twelve-month period ending June 30, 2016. The requested increase in base rates was due primarily to an increase in net plant resulting from infrastructureinvestments, plant acquisitions, environmental compliance, and reliability improvement projects. The rate filing also included projected changes in sales,working capital, operation and maintenance expenses, return on equity, and capital structure. On July 1, 2015, DTE Electric realized an annual revenueincrease of $230 million consisting of $190 million of self-implemented base rate increase related to the December 19, 2014 rate request and $40 millionassociated with the required elimination of a credit surcharge. On December 11, 2015, the MPSC issued an order approving an annual revenue increase of$238 million for service rendered on or after December 17, 2015. The rate order also provided for a reduction of the return on equity from 10.5% to 10.3% ona capital structure of 50% debt and 50% equity. On December 22, 2015, DTE Electric petitioned the MPSC for a rehearing and clarification of several issuesrelated to the December 11, 2015 MPSC rate order. The three main issues addressed in the rehearing request were related to the recovery of the cost of theoperating license for Fermi 3, the capitalization of the cost of tree trimming, and costs related to certain land and a building located near DTE Electric'sDetroit headquarters. On January 19, 2016, the MPSC issued an order authorizing DTE Electric to begin amortization of the cost of the Fermi 3 operatinglicense over a 20-year period without a return on the unamortized balance. The MPSC denied the capitalization of the tree trimming costs and the cost relatedto the land and building. DTE Electric recorded a disallowance of $10 million related to tree trim costs in the fourth quarter of 2015 which was previouslycapitalized as of September 30, 2015. The land and building have economic value independent of recovery through rates and therefore no impairment chargewas recorded for these assets. The MPSC order also stated that any changes to the revenue deficiency will be addressed in a final rehearing order in this case.84DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)2016 Electric Rate Case FilingDTE Electric filed a rate case with the MPSC on February 1, 2016 requesting an increase in base rates of $344 million based on a projected twelve-month period ending July 31, 2017. The requested increase in base rates is due primarily to an increase in net plant resulting from infrastructure investments,environmental compliance, and reliability improvement projects. The rate filing also includes projected changes in sales, operation and maintenanceexpenses, and working capital. The rate filing also requests an increase in return on equity from 10.3% to 10.5% on a capital structure of 50% equity and 50%debt. DTE Electric anticipates self-implementing a rate increase in August 2016 with an MPSC order expected by February 2017.PSCR ProceedingsThe PSCR process is designed to allow DTE Electric to recover all of its power supply costs if incurred under reasonable and prudent policies andpractices. DTE Electric's power supply costs include fuel and related transportation costs, purchased and net interchange power costs, nitrogen oxide andsulfur dioxide emission allowances costs, urea costs, transmission costs, and MISO costs. The MPSC reviews these costs, policies, and practices for prudencein annual plan and reconciliation filings.2012 PSCR Year — In March 2013, DTE Electric filed its 2012 PSCR reconciliation that included purchased power costs related to the manualshutdown of the 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 wasrestarted on July 30, 2012, which restored production to approximately 68% of full capacity. In September 2013, the repair to the plant was completed andproduction was returned to full capacity. DTE Electric was able to purchase sufficient power from MISO to continue to provide uninterrupted service tocustomers. On June 30, 2015, the MPSC issued an order that disallowed approximately $19 million of Fermi 2 related purchased power costs. DTE Electricrecorded the impact of this disallowance in the second quarter of 2015.Customer SettlementIn July 2014, an industrial customer of DTE Electric filed a complaint with the MPSC alleging they had been overcharged for the period of February2008 through March 2014, and sought payment from DTE Electric of $22 million, plus interest. In July 2015, the MPSC issued an order that found thecustomer is entitled to a refund in the amount of $20 million, plus interest calculated at 7% per annum. In July 2015, DTE Electric issued a customer refundof $25 million, inclusive of interest. Approximately $16 million of the refund obligation is expected to be recovered through the PSCR and other regulatorymechanisms. DTE Electric does not expect this order to have a material impact to its Consolidated Statements of Operations.2015 DTE Gas Rate Case FilingDTE Gas filed a rate case with the MPSC on December 18, 2015 requesting an increase in base rates of $183 million based on a projected twelve-monthperiod ending October 31, 2017. The requested increase in base rates is due primarily to an increase in net plant of $800 million, inclusive of IRM capitalinvestments being recovered through approved IRM surcharge filings. The rate filing also includes projected changes in sales, operation and maintenanceexpenses, and working capital. The rate filing also requests an increase in return on equity from 10.5% to 10.75% on a capital structure of 52% equity and48% debt. DTE Gas anticipates self-implementing a rate increase in November 2016 with an MPSC order expected by December 2016. Concurrent with theMPSC order in this rate case, the existing IRM surcharge will be terminated. However, in this rate case filing, DTE Gas requested to implement a new IRMsurcharge to become effective in January 2017.DTE Gas IRMIn November 2014, DTE Gas filed an application with the MPSC for approval of an increased IRM surcharge to recover an additional $47 million ofannual capital expenditures in 2016 and 2017 for its gas main renewal program. In November 2015, the MPSC issued an order authorizing an expansion of itsgas main renewal program and an increase in the IRM surcharge of $16 million for 2016 and $31 million for 2017. The 2017 increase is subject to a reductionto the 2016 level if the 2016 target is not met. The IRM surcharge authorized by the order in this filing will become effective in July 2016 and will beterminated upon the implementation of base rates requested in the December 18, 2015 rate case filing.85DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 9 — INCOME TAXESIncome Tax SummaryDTE Energy files a consolidated federal income tax return. DTE Electric is a part of the consolidated federal income tax return of DTE Energy. DTEEnergy and its subsidiaries file consolidated and/or separate company income tax returns in various states and localities, including a consolidated return inthe State of Michigan. DTE Electric is part of the Michigan consolidated income tax return of DTE Energy. The federal, state and local income tax expensefor DTE Electric is determined on an individual company basis with no allocation of tax expenses or benefits from other affiliates of DTE Energy. DTEElectric had an income tax receivable from DTE Energy of $6 million and $29 million at December 31, 2015 and 2014, respectively.The Registrants' total Income Tax Expense varied from the statutory federal income tax rate for the following reasons: 2015 2014 2013DTE Energy(In millions)Income Before Income Taxes$950 $1,275 $922Income tax expense at 35% statutory rate$333 $446 $323Production tax credits(122) (119) (68)Investment tax credits(7) (6) (6)Depreciation(4) (4) (4)AFUDC - Equity(8) (7) (5)Employee Stock Ownership Plan dividends(5) (4) (4)Domestic production activities deduction— — (14)State and local income taxes, net of federal benefit35 51 37Enactment of New York Corporate Income Tax Legislation, net of federal benefit— 8 —Other, net8 (1) (5)Income Tax Expense$230 $364 $254Effective income tax rate24.2% 28.5% 27.5% 2015 2014 2013DTE Electric(In millions)Income Before Income Taxes$836 $830 $741Income tax expense at 35% statutory rate$293 $291 $260Production tax credits(31) (22) (15)Investment tax credits(5) (5) (5)Depreciation3 3 3AFUDC - Equity(7) (7) (5)Employee Stock Ownership Plan dividends(3) (3) (2)Domestic production activities deduction— (2) (18)State and local income taxes, net of federal benefit43 43 41Other, net(1) — (5)Income Tax Expense$292 $298 $254Effective income tax rate34.9% 35.9% 34.3%86DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Components of the Registrants' Income Tax Expense were as follows: 2015 2014 2013DTE Energy(In millions)Current income tax expense (benefit) Federal$(3) $(16) $74State and other income tax(4) 24 16Total current income taxes(7) 8 90Deferred income tax expense Federal178 289 122State and other income tax59 67 42Total deferred income taxes237 356 164Total$230 $364 $254 2015 2014 2013DTE Electric(In millions)Current income tax expense (benefit) Federal$(26) $(19) $123State and other income tax(2) 20 23Total current income taxes(28) 1 146Deferred income tax expense Federal252 251 68State and other income tax68 46 40Total deferred income taxes320 297 108Total$292 $298 $254Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilitiesand the reported amounts in the Consolidated Financial Statements. Consistent with rate making treatment, deferred taxes are offset in the tables below fortemporary differences which have related Regulatory assets and liabilities.The Registrants' deferred tax assets (liabilities) were comprised of the following at December 31: DTE Energy DTE Electric 2015 2014 2015 2014 (In millions)Property, plant, and equipment$(4,211) $(3,832) $(3,468) $(3,152)Securitized regulatory assets5 (2) 5 (3)Tax credit carry-forwards465 296 53 —Pension and benefits(301) (152) (193) (43)Federal net operating loss carry-forward177 — 142 —State and local net operating loss carry-forwards63 39 16 —Investments in equity method investees(82) (84) — —Other(4) 65 (53) 12 (3,888) (3,670) (3,498) (3,186)Less valuation allowance(35) (31) — —Long-term deferred income tax liabilities$(3,923) $(3,701) $(3,498) $(3,186) Deferred income tax assets$1,088 $861 $453 $357Deferred income tax liabilities(5,011) (4,562) (3,951) (3,543) $(3,923) $(3,701) $(3,498) $(3,186)87DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Tax credit carry forwards for DTE Energy include $181 million of general business credits that expire from 2034 through 2035 and $284 million ofalternative minimum tax credits that may be carried forward indefinitely. The alternative minimum tax credits are production tax credits earned prior to 2006but not utilized. The majority of these alternative minimum tax credits were generated from projects that had received a private letter ruling (PLR) from theIRS. These PLRs provide assurance as to the appropriateness of using these credits to offset taxable income, however, these tax credits are subject to IRS auditand adjustment.DTE Energy has a federal net operating loss carry-forward available for use on the tax return of $517 million as of December 31, 2015, which includesapproximately $9 million related to windfall tax benefits attributable to stock-based compensation for which a benefit will be recorded in additional paid-incapital if and when realized. The federal net operating loss carry-forward expires in 2035. No valuation allowance is required for the federal net operating lossdeferred tax asset.The above tables exclude unamortized investment tax credits that are shown separately on the Registrants' Consolidated Statements of FinancialPosition. Investment tax credits are deferred and amortized to income over the average life of the related property.DTE Energy has state and local deferred tax assets related to net operating loss carry-forwards of $63 million and $39 million at December 31, 2015 and2014, respectively. The state and local net operating loss carry-forwards expire from 2016 through 2035. DTE Energy has recorded valuation allowances atDecember 31, 2015 and 2014 of approximately $35 million and $31 million, respectively, with respect to these deferred tax assets. In assessing therealizability of deferred tax assets, DTE Energy considers whether it is more likely than not that some portion or all of the deferred tax assets will not berealized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which thosetemporary differences become deductible.DTE Electric has state and local deferred tax assets related to net operating loss carry-forwards of $16 million at December 31, 2015, while there was nostate and local deferred tax asset related to net operating loss carry-forwards at December 31, 2014. No valuation allowance is required for DTE Electric's stateand local net operating loss carry-forwards.Uncertain Tax PositionsA reconciliation of the beginning and ending amount of unrecognized tax benefits for the Registrants is as follows: 2015 2014 2013DTE Energy(In millions)Balance at January 1$9 $10 $11Lapse of statute of limitations(6) (1) (1)Balance at December 31$3 $9 $10 2015 2014 2013DTE Electric(In millions)Balance at January 1$4 $4 $4Balance at December 31$4 $4 $4DTE Energy had $2 million of unrecognized tax benefits at December 31, 2015 and 2014, that, if recognized, would favorably impact its effective taxrate. DTE Energy does not anticipate any material decrease in unrecognized tax benefits in the next twelve months.DTE Electric had $3 million and $2 million of unrecognized tax benefits at December 31, 2015 and 2014, respectively, that, if recognized, wouldfavorably impact its effective tax rate. DTE Electric does not anticipate any material decrease in unrecognized tax benefits in the next twelve months.The Registrants recognize interest and penalties pertaining to income taxes in Interest expense and Other expenses, respectively, on their ConsolidatedStatements of Operations. Accrued interest pertaining to income taxes for both DTE Energy and DTE Electric totaled $1 million at December 31, 2015 and2014. The Registrants had no accrued penalties pertaining to income taxes. The Registrants recognized interest expense (income) related to income taxes of anominal amount in 2015, 2014, and 2013.88DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)In 2015, DTE Energy, including DTE Electric, settled a federal tax audit for the 2013 tax year. DTE Energy's federal income tax returns for 2014 andsubsequent years remain subject to examination by the IRS. DTE Energy's MBT and MCIT returns for the year 2008 and subsequent years remain subject toexamination by the State of Michigan. DTE Energy also files tax returns in numerous state and local jurisdictions with varying statutes of limitation.NOTE 10 — EARNINGS PER SHAREDTE Energy reports both basic and diluted earnings per share. The calculation of diluted earnings per share assumes the issuance of potentially dilutivecommon shares outstanding during the period from the exercise of stock options. A reconciliation of both calculations is presented in the following table asof December 31: 2015 2014 2013 (In millions, expect per share amounts)Basic Earnings per Share Net Income Attributable to DTE Energy Company$727 $905 $661Average number of common shares outstanding179 177 175Weighted average net restricted shares outstanding— — 1Dividends declared — common shares$508 $475 $453Dividends declared — net restricted shares2 1 1Total distributed earnings$510 $476 $454Net Income less distributed earnings$217 $429 $207Distributed (dividends per common share)$2.84 $2.69 $2.59Undistributed1.21 2.42 1.17Total Basic Earnings per Common Share$4.05 $5.11 $3.76 Diluted Earnings per Share Net Income Attributable to DTE Energy Company$727 $905 $661Average number of common shares outstanding179 177 175Weighted average net restricted shares outstanding— — 1Dividends declared — common shares$508 $475 $453Dividends declared — net restricted shares2 1 1Total distributed earnings$510 $476 $454Net Income less distributed earnings$217 $429 $207Distributed (dividends per common share)$2.84 $2.69 $2.59Undistributed1.21 2.41 1.17Total Diluted Earnings per Common Share$4.05 $5.10 $3.76NOTE 11 — FAIR VALUEFair 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 marketparticipants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based oninputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, marketcorroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets orliabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and theircounterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31,2015 and 2014. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use ofunobservable inputs.89DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fairvalue hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority tounobservable 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 andliabilities 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 theasset or liability and its placement within the fair value hierarchy. The Registrants classify fair value balances based on the fair value hierarchy defined asfollows:•Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Registrants have the ability to access asof 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 indirectlyobservable 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 ormethodologies 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.90DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis as of December 31, 2015 and2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Netting (a) NetBalance Level 1 Level 2 Level 3 Netting (a) Net Balance (In millions)Assets: Cash equivalents (b)$13 $3 $— $— $16 $13 $99 $— $— $112Nuclear decommissioning trusts759 477 — — 1,236 792 449 — — 1,241Other investments (c)149 — — — 149 100 50 — — 150Derivative assets: Commodity Contracts: Natural Gas193 91 103 (285) 102 555 140 92 (681) 106Electricity— 239 68 (232) 75 — 295 47 (280) 62Other2 — 3 (2) 3 42 — 3 (42) 3Other derivative contracts (d)— 12 — (9) 3 — 4 — (3) 1Total derivative assets195 342 174 (528) 183 597 439 142 (1,006) 172Total$1,116 $822 $174 $(528) $1,584 $1,502 $1,037 $142 $(1,006) $1,675 Liabilities: Derivative liabilities: Commodity Contracts: Natural Gas$(218) $(57) $(108) $294 $(89) $(578) $(78) $(62) $679 $(39)Electricity— (243) (62) 253 (52) — (290) (52) 298 (44)Other(2) — (8) 8 (2) (32) (9) (4) 45 —Other derivative contracts (d)— (7) — 7 — — (5) — 3 (2)Total derivative liabilities(220) (307) (178) 562 (143) (610) (382) (118) 1,025 (85)Total$(220) $(307) $(178) $562 $(143) $(610) $(382) $(118) $1,025 $(85)Net Assets (Liabilities) at the end ofthe period$896 $515 $(4) $34 $1,441 $892 $655 $24 $19 $1,590Assets: Current$174 $284 $128 $(441) $145 $582 $504 $109 $(955) $240Noncurrent (e)942 538 46 (87) 1,439 920 533 33 (51) 1,435Total Assets$1,116 $822 $174 $(528) $1,584 $1,502 $1,037 $142 $(1,006) $1,675Liabilities: Current$(174) $(260) $(87) $464 $(57) $(572) $(357) $(112) $964 $(77)Noncurrent(46) (47) (91) 98 (86) (38) (25) (6) 61 (8)Total Liabilities$(220) $(307) $(178) $562 $(143) $(610) $(382) $(118) $1,025 $(85)Net Assets (Liabilities) at the end ofthe period$896 $515 $(4) $34 $1,441 $892 $655 $24 $19 $1,590_______________________________________(a)Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.(b)At December 31, 2015, available-for-sale securities of $16 million included $8 million and $8 million of cash equivalents included in Restricted cash and Other investments onDTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2014, available-for-sale securities of $112 million, included $105 million and $7million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.(c)Excludes cash surrender value of life insurance investments.(d)Primarily includes foreign currency exchange contracts.(e)Includes $149 million and $150 million at December 31, 2015 and 2014, respectively, of other investments that are included in DTE Energy's Consolidated Statements ofFinancial Position in Other investments.91DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance (In millions)Assets: Cash equivalents (a)$5 $3 $— $8 $5 $99 $— $104Nuclear decommissioning trusts759 477 — 1,236 792 449 — 1,241Other investments8 — — 8 97 50 — 147Derivative assets — FTRs— — 3 3 — — 3 3Total$772 $480 $3 $1,255 $894 $598 $3 $1,495 Assets: Current$5 $3 $3 $11 $5 $99 $3 $107Noncurrent767 477 — 1,244 889 499 — 1,388Total Assets$772 $480 $3 $1,255 $894 $598 $3 $1,495_______________________________________(a)At December 31, 2015, available-for-sale securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements ofFinancial Position. At December 31, 2014, available-for-sale securities of $104 million included $96 million and $8 million of cash equivalents included in Restricted cash andOther investments, respectively, on DTE Electric's Consolidated Statements of Financial Position.Cash EquivalentsCash equivalents include investments with maturities of three months or less when purchased. The cash equivalents shown in the fair value table arecomprised of short-term investments and money market funds.Nuclear Decommissioning Trusts and Other InvestmentsThe 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 fundshold exchange-traded equity or debt securities and are valued based on stated NAVs. Non-exchange-traded fixed income securities are valued based uponquotations available from brokers or pricing services. A primary price source is identified by asset type, class, or issue for each security. The trustee monitorsprices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee determinesthat another price source is considered to be preferable. The Registrants have obtained an understanding of how these prices are derived, including the natureand observability of the inputs used in deriving such prices. Additionally, the Registrants selectively corroborate the fair value of securities by comparison ofmarket-based price sources. Investment policies and procedures are determined by DTE Energy's Trust Investments Department which reports to DTEEnergy's Vice President and Treasurer.92DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Derivative Assets and LiabilitiesDerivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that areboth exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availabilityof market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria indetermining 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, brokerquotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are suppliedby brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable oranother price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived.Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuationmodels are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reportingperiod. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methodsare applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTEEnergy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.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 forthe years ended December 31, 2015 and 2014: Year Ended December 31, 2015 Year Ended December 31, 2014 NaturalGas Electricity Other Total NaturalGas Electricity Other Total (In millions)Net Assets (Liabilities) as of December 31$30 $(5) $(1) $24 $(52) $13 $3 $(36)Transfers into Level 3 from Level 2— — — — — — — —Transfers from Level 3 into Level 2— — — — (2) — — (2)Total gains (losses): Included in earnings(44) 44 (8) (8) (40) 25 (5) (20)Recorded in Regulatory assets/liabilities— — 12 12 — — 8 8Purchases, issuances, and settlements: Purchases— 2 — 2 — 1 — 1Issuances— — — — — (3) — (3)Settlements9 (35) (8) (34) 124 (41) (7) 76Net Assets (Liabilities) as of December 31$(5) $6 $(5) $(4) $30 $(5) $(1) $24The amount of total gains (losses) included in Net Incomeattributed to the change in unrealized gains (losses)related to assets and liabilities held at December 31, 2015and 2014 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas —non-utility in DTE Energy's Consolidated Statements ofOperations$(135) $13 $(7) $(129) $35 $9 $(4) $4093DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)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 forthe years ended December 31, 2015 and 2014: Year Ended December 31, 2015 2014 (In millions)Net Assets as of December 31$3 $3Change in fair value recorded in Regulatory assets/liabilities12 8Purchases, issuances, and settlements: Settlements(12) (8)Net Assets as of December 31$3 $3The 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 December 31, 2015 and 2014 and reflected in DTE Electric's Consolidated Statements ofFinancial Position$3 $3Derivatives are transferred between levels primarily due to changes in the source data used to construct price curves as a result of changes in marketliquidity. Transfers in and transfers out are reflected as if they had occurred at the beginning of the period.There were no transfers between Levels 1 and 2 for the Registrants during the years ended December 31, 2015 and 2014, and there were no transfersfrom or into Level 3 for DTE Electric during the same periods.The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities as of December 31, 2015 and 2014: December 31, 2015 CommodityContracts DerivativeAssets DerivativeLiabilities ValuationTechniques Unobservable Input Range Weighted Average (In millions) Natural Gas $103 $(108) DiscountedCash Flow Forward basis price (per MMBtu) $(1.50)— $2.77/MMBtu $(0.19)/MMBtuElectricity $68 $(62) DiscountedCash Flow Forward basis price (per MWh) $(11)— $14/MWh $2/MWh December 31, 2014 CommodityContracts DerivativeAssets DerivativeLiabilities ValuationTechniques Unobservable Input Range Weighted Average (In millions) Natural Gas $92 $(62) DiscountedCash Flow Forward basis price (per MMBtu) $(2.28)— $7.83/MMBtu $(0.22)/MMBtuElectricity $47 $(52) DiscountedCash Flow Forward basis price (per MWh) $(14)— $15/MWh $4/MWhThe unobservable inputs used in the fair value measurement of the electricity and natural gas commodity types consist of inputs that are less observabledue in part to lack of available broker quotes, supported by little, if any, market activity at the measurement date or are based on internally developedmodels. Certain basis prices (i.e., the difference in pricing between two locations) included in the valuation of natural gas and electricity contracts weredeemed unobservable.The inputs listed above would have a direct impact on the fair values of the above security types if they were adjusted. A significant increase (decrease)in the basis price would result in a higher (lower) fair value for long positions, with offsetting impacts to short positions.94DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Fair Value of Financial InstrumentsThe fair value of financial instruments included in the table below is determined by using quoted market prices when available. When quoted prices arenot available, pricing services may be used to determine the fair value with reference to observable interest rate indexes. The Registrants have obtained anunderstanding of how the fair values are derived. The Registrants also selectively corroborate the fair value of their transactions by comparison of market-based price sources. Discounted cash flow analyses based upon estimated current borrowing rates are also used to determine fair value when quoted marketprices are not available. The fair values of notes receivable, excluding capital leases, are generally estimated using discounted cash flow techniques thatincorporate market interest rates as well as assumptions about the remaining life of the loans and credit risk. Depending on the information available, othervaluation techniques may be used that rely on internal assumptions and models. Valuation policies and procedures for the Registrants are determined by DTEEnergy's Treasury Department which reports to DTE Energy's Vice President and Treasurer.The following table presents the carrying amount and fair value of financial instruments for DTE Energy as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 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$32 $— $— $32 $41 $— $— $41Dividends payable$131 $131 $— $— $122 $122 $— $—Short-term borrowings$499 $— $499 $— $398 $— $398 $—Long-term debt, excluding capital leases$9,285 $496 $8,136 $1,203 $8,606 $489 $8,308 $706The following table presents the carrying amount and fair value of financial instruments for DTE Electric as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 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$5 $— $— $5 $12 $— $— $12Notes receivable — affiliates$— $— $— $— $8 $— $— $8Short-term borrowings — affiliates$75 $— $— $75 $84 $— $— $84Short-term borrowings — other$272 $— $272 $— 50 $— $50 $—Long-term debt, excluding capital leases$5,624 $— $5,432 $545 $5,259 $— $5,341 $496For further fair value information on financial and derivative instruments see Note 12 to the Consolidated Financial Statements, "Financial and OtherDerivative Instruments".Nuclear Decommissioning Trust FundsDTE Electric has a legal obligation to decommission its nuclear power plants following the expiration of its operating licenses. This obligation isreflected as an ARO on DTE Electric's Consolidated Statements of Financial Position. Rates approved by the MPSC provide for the recovery ofdecommissioning costs of Fermi 2 and the disposal of low-level radioactive waste. DTE Electric is continuing to fund FERC jurisdictional amounts fordecommissioning even though explicit provisions are not included in FERC rates. See Note 7 to the Consolidated Financial Statements, "Asset RetirementObligations".95DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets: December 31, 2015 December 31, 2014 (In millions)Fermi 2$1,211 $1,221Fermi 13 3Low-level radioactive waste22 17Total$1,236 $1,241The costs of securities sold are determined on the basis of specific identification. The following table sets forth DTE Electric's gains and losses andproceeds from the sale of securities by the nuclear decommissioning trust funds: Year Ended December 31, 2015 2014 2013 (In millions)Realized gains$39 $54 $83Realized losses$(33) $(33) $(41)Proceeds from sales of securities$885 $1,146 $1,118Realized 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 andNuclear decommissioning liability. The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioningtrust funds: December 31, 2015 December 31, 2014 FairValue UnrealizedGains Unrealized Losses FairValue UnrealizedGains Unrealized Losses (In millions)Equity securities$731 $195 $(68) $756 $204 $(39)Debt securities499 16 (4) 474 21 (2)Cash and cash equivalents6 — — 11 — — $1,236 $211$(72) $1,241 $225$(41)The debt securities at December 31, 2015 and 2014 had an average maturity of approximately 6 years and 7 years, respectively. Securities held in theNuclear decommissioning trust funds are classified as available-for-sale. As DTE Electric does not have the ability to hold impaired investments for a periodof time sufficient to allow for the anticipated recovery of market value, all unrealized losses are considered to be other-than-temporary impairments.Unrealized losses incurred by the Fermi 2 trust are recognized as a Regulatory asset.Other SecuritiesAt December 31, 2015 and 2014, the Registrants' securities were comprised primarily of money market and equity securities. There were no unrealizedlosses on available-for-sale securities which were reclassified out of Other comprehensive income (loss) and realized into Net Income for DTE Energy or DTEElectric during the years ended December 31, 2015 and 2014. Gains related to trading securities held at December 31, 2015, 2014, and 2013 were $1 million,$14 million, and $22 million, respectively, for DTE Energy, including $1 million, $12 million, and $19 million, respectively, relating to DTE Electric. Thetrading gains or losses related to the Rabbi Trust assets are allocated from DTE Energy to DTE Electric.96DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 12 — FINANCIAL AND OTHER DERIVATIVE INSTRUMENTSThe Registrants recognize all derivatives at their fair value as Derivative assets or liabilities on their respective Consolidated Statements of FinancialPosition unless they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and aredesignated 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 arecognized 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 (fairvalue 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 exposureis deferred in Accumulated other comprehensive income (loss) and later reclassified into earnings when the underlying transaction occurs. Gains or lossesfrom the ineffective portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative andhedged item are recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in fair value arerecognized in earnings each period.The Registrants' primary market risk exposure is associated with commodity prices, credit, and interest rates. The Registrants have risk managementpolicies to monitor and manage market risks. The Registrants use derivative instruments to manage some of the exposure. DTE Energy uses derivativeinstruments for trading purposes in its Energy Trading segment. Contracts classified as derivative instruments include electricity, natural gas, oil, certain coalforwards, futures, options, swaps, and foreign currency exchange contracts. Items not classified as derivatives include natural gas inventory, pipelinetransportation contracts, renewable energy credits, and natural gas storage assets.DTE Electric — DTE Electric generates, purchases, distributes, and sells electricity. DTE Electric uses forward energy contracts to manage changes inthe price of electricity and fuel. Substantially all of these contracts meet the normal purchases and normal sales exception and are therefore accounted forunder the accrual method. Other derivative contracts are MTM and recoverable through the PSCR mechanism when settled. This results in the deferral ofunrealized gains and losses as Regulatory assets or liabilities until realized.DTE Gas — DTE Gas purchases, stores, transports, distributes and sells natural gas, and sells storage and transportation capacity. DTE Gas has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2018. Substantially all of these contracts meet the normalpurchases and normal sales exception and are therefore accounted for under the accrual method. DTE Gas may also sell forward transportation and storagecapacity contracts. Forward transportation and storage contracts are generally not derivatives and are therefore accounted for under the accrual method.Gas Storage and Pipelines — This segment is primarily engaged in services related to the transportation and storage of natural gas. Primarily fixed-priced contracts are used in the marketing and management of transportation and storage services. Generally these contracts are not derivatives and aretherefore accounted for under the accrual method.Power and Industrial Projects — This segment manages and operates energy and pulverized coal projects, a coke battery, reduced emissions fuelprojects, landfill gas recovery, and power generation assets. Primarily fixed-price contracts are used in the marketing and management of the segment assets.These contracts are generally not derivatives and are therefore accounted for under the accrual method.Energy Trading — Commodity Price Risk — Energy Trading markets and trades electricity, natural gas physical products, and energy financialinstruments, and provides energy and asset management services utilizing energy commodity derivative instruments. Forwards, futures, options, and swapagreements are used to manage exposure to the risk of market price and volume fluctuations in its operations. These derivatives are accounted for byrecording changes in fair value to earnings unless hedge accounting criteria are met.Energy Trading — Foreign Currency Exchange Risk — Energy Trading has foreign currency exchange forward contracts to economically hedge fixedCanadian dollar commitments existing under natural gas and power purchase and sale contracts and natural gas transportation contracts. DTE Energy entersinto these contracts to mitigate price volatility with respect to fluctuations of the Canadian dollar relative to the U.S. dollar. These derivatives are accountedfor by recording changes in fair value to earnings unless hedge accounting criteria are met.Corporate and Other — Interest Rate Risk — DTE Energy may use interest rate swaps, treasury locks, and other derivatives to hedge the risk associatedwith interest rate market volatility.97DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Credit Risk — DTE Energy maintains credit policies that significantly minimize overall credit risk. These policies include an evaluation of potentialcustomers’ and counterparties’ financial condition, including the viability of underlying productive assets, credit rating, collateral requirements, or othercredit enhancements such as letters of credit or guarantees. DTE Energy generally uses standardized agreements that allow the netting of positive andnegative transactions associated with a single counterparty. DTE Energy maintains a provision for credit losses based on factors surrounding the credit risk ofits customers, historical trends, and other information. Based on DTE Energy’s credit policies and its December 31, 2015 provision for credit losses, DTEEnergy’s exposure to counterparty nonperformance is not expected to have a material adverse effect on DTE Energy's Consolidated Financial Statements.Derivative ActivitiesDTE Energy manages its MTM risk on a portfolio basis based upon the delivery period of its contracts and the individual components of the riskswithin each contract. Accordingly, it records and manages the energy purchase and sale obligations under its contracts in separate components based on thecommodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), therisk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The following describes the categories of activities represented by theiroperating characteristics and key risks:•Asset Optimization — Represents derivative activity associated with assets owned and contracted by DTE Energy, including forward natural gaspurchases and sales, natural gas transportation, and storage capacity. Changes in the value of derivatives in this category typically economicallyoffset changes in the value of underlying non-derivative positions, which do not qualify for fair value accounting. The difference in accountingtreatment of derivatives in this category and the underlying non-derivative positions can result in significant earnings volatility.•Marketing and Origination — Represents derivative activity transacted by originating substantially hedged positions with wholesale energymarketers, producers, end-users, utilities, retail aggregators, and alternative energy suppliers.•Fundamentals Based Trading — Represents derivative activity transacted with the intent of taking a view, capturing market price changes, orputting capital at risk. This activity is speculative in nature as opposed to hedging an existing exposure.•Other — Includes derivative activity at DTE Electric related to FTRs. Changes in the value of derivative contracts at DTE Electric are recorded asDerivative assets or liabilities, with an offset to Regulatory assets or liabilities as the settlement value of these contracts will be included in thePSCR mechanism when realized.The following table presents the fair value of derivative instruments as of December 31, 2015 and 2014 for DTE Energy: December 31, 2015 December 31, 2014 DerivativeAssets DerivativeLiabilities DerivativeAssets DerivativeLiabilities (In millions)Derivatives not designated as hedging instruments: Foreign currency exchange contracts$12 $(7) $4 $(5)Commodity Contracts: Natural Gas387 (383) 787 (718)Electricity307 (305) 342 (342)Other5 (10) 45 (45)Total derivatives not designated as hedging instruments:$711 $(705) $1,178 $(1,110) Current$570 $(521) $1,083 $(1,041)Noncurrent141 (184) 95 (69)Total derivatives$711 $(705) $1,178 $(1,110)98DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table presents the fair value of derivative instruments as of December 31, 2015 and 2014 for DTE Electric: December 31, 2015 2014 (In millions)FTRs — Other current assets$3 $3Total derivatives not designated as hedging instrument$3 $3Certain of DTE Energy's derivative positions are subject to netting arrangements which provide for offsetting of asset and liability positions as well asrelated cash collateral. Such netting arrangements generally do not have restrictions. Under such netting arrangements, DTE Energy offsets the fair value ofderivative instruments with cash collateral received or paid for those contracts executed with the same counterparty, which reduces DTE Energy's TotalAssets and Liabilities. Cash collateral is allocated between the fair value of derivative instruments and customer accounts receivable and payable with thesame counterparty on a pro rata basis to the extent there is exposure. Any cash collateral remaining, after the exposure is netted to zero, is reflected inAccounts receivable and Accounts payable as collateral paid or received, respectively.DTE Energy also provides and receives collateral in the form of letters of credit which can be offset against net Derivative assets and liabilities as wellas Accounts receivable and payable. DTE Energy had issued letters of credit of approximately $7 million at December 31, 2015 and 2014, which could beused to offset net Derivative liabilities. Letters of credit received from third parties which could be used to offset net Derivative assets were $2 million and $5million at December 31, 2015 and 2014, respectively. Such balances of letters of credit are excluded from the tables below and are not netted with therecognized assets and liabilities in DTE Energy's Consolidated Statements of Financial Position.For contracts with certain clearing agents the fair value of derivative instruments is netted against realized positions with the net balance reflected aseither 1) a Derivative asset or liability or 2) an Account receivable or payable. Other than certain clearing agents, Accounts receivable and Accounts payablethat are subject to netting arrangements have not been offset against the fair value of Derivative assets and liabilities. Certain contracts that have nettingarrangements have not been offset in DTE Energy's Consolidated Statements of Financial Position. The impact of netting these derivative instruments andcash collateral related to such contracts is not material. Only the gross amounts for these derivative instruments are included in the table below.For DTE Energy, the total cash collateral posted, net of cash collateral received, was $37 million and $61 million as of December 31, 2015 and 2014,respectively. There was $2 million of cash collateral related to unrealized positions to net against Derivative assets while Derivative liabilities are shown netof cash collateral of $36 million as of December 31, 2015. There was no cash collateral related to unrealized positions to net against Derivative assets whileDerivative liabilities are shown net of cash collateral of $19 million as of December 31, 2014. DTE Energy recorded cash collateral paid of $6 million andcash collateral received of $3 million not related to unrealized derivative positions as of December 31, 2015. DTE Energy recorded cash collateral paid of$44 million and cash collateral received of $2 million not related to unrealized derivative positions as of December 31, 2014. These amounts are included inAccounts receivable and Accounts payable and are recorded net by counterparty.99DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table presents the netting offsets of Derivative assets and liabilities for DTE Energy at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Gross Amounts ofRecognized Assets(Liabilities) Gross AmountsOffset in theConsolidatedStatements ofFinancial Position Net Amounts of Assets(Liabilities) Presentedin the ConsolidatedStatements ofFinancial Position Gross Amounts ofRecognized Assets(Liabilities) Gross AmountsOffset in theConsolidatedStatements ofFinancial Position Net Amounts of Assets(Liabilities) Presentedin the ConsolidatedStatements of FinancialPosition (In millions)Derivative assets: Commodity Contracts: Natural Gas$387 $(285) $102 $787 $(681) $106Electricity307 (232) 75 342 (280) 62Other5 (2) 3 45 (42) 3Other derivative contracts (a)12 (9) 3 4 (3) 1Total derivative assets$711 $(528) $183 $1,178 $(1,006) $172 Derivative liabilities: Commodity Contracts: Natural Gas$(383) $294 $(89) $(718) $679 $(39)Electricity(305) 253 (52) (342) 298 (44)Other(10) 8 (2) (45) 45 —Other derivative contracts (a)(7) 7 — (5) 3 (2)Total derivative liabilities$(705) $562 $(143) $(1,110) $1,025 $(85)_______________________________________(a)Primarily includes foreign currency exchange contracts.The following table presents the netting offsets of Derivative assets and liabilities showing the reconciliation of derivative instruments to DTE Energy'sConsolidated Statements of Financial Position at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Current Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent (In millions)Total fair value of derivatives$570 $141 $(521) $(184) $1,083 $95 $(1,041) $(69)Counterparty netting(441) (85) 441 85 (955) (51) 955 51Collateral adjustment— (2) 23 13 — — 9 10Total derivatives as reported$129 $54 $(57) $(86) $128 $44 $(77) $(8)100DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The effect of derivatives not designated as hedging instruments on DTE Energy's Consolidated Statements of Operations for years ended December 31,2015 and 2014 is as follows: Location of Gain(Loss) Recognizedin Income on Derivatives Gain (Loss) Recognized inIncome on Derivatives forYears Ended December 31,Derivatives not Designated as Hedging Instruments 2015 2014 (In millions)Foreign currency exchange contracts Operating Revenues — Non-utility operations $3 $(2)Commodity Contracts: Natural Gas Operating Revenues — Non-utility operations (34) (30)Natural Gas Fuel, purchased power, and gas — non-utility (44) (5)Electricity Operating Revenues — Non-utility operations 54 123Other Operating Revenues — Non-utility operations (7) (7)Total $(28) $79Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations.Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method withunrealized and realized gains and losses recorded in Operating Revenues — Non-utility operations. Non-trading physical commodity sale and purchasederivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in OperatingRevenues — Non-utility operations and purchases recorded in Fuel, purchased power, and gas — non-utility.The following represents the cumulative gross volume of DTE Energy's derivative contracts outstanding as of December 31, 2015:Commodity Number of UnitsNatural Gas (MMBtu) 1,740,824,930Electricity (MWh) 27,668,865Oil (Gallons) 21,756,000Foreign Currency Exchange (Canadian dollars) 72,328,008Various subsidiaries of DTE Energy have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These contractscontain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy’s creditrating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”) state specific circumstances under which DTE Energycan be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”) are not as specific. Forcontracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy mayultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power,and coal) and the provisions and maturities of the underlying transactions. As of December 31, 2015, DTE Energy's contractual obligation to post collateralin the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, wasapproximately $412 million.As of December 31, 2015, DTE Energy had approximately $592 million of derivatives in net liability positions, for which hard triggers exist. Collateralof approximately $5 million has been posted against such liabilities, including cash and letters of credit. Associated derivative net asset positions for whichcontractual offset exists were approximately $500 million. The net remaining amount of approximately $87 million is derived from the $412 million notedabove.101DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 13 — LONG-TERM DEBTLong-Term DebtDTE Energy's long-term debt outstanding and weighted average interest rates (a) of debt outstanding at December 31 were: 2015 2014 (In millions)Mortgage bonds, notes, and other DTE Energy Debt, Unsecured 4.4% due 2016 to 2033$1,947 $1,647DTE Electric Taxable Debt, Principally Secured 4.4% due 2016 to 20455,314 4,824DTE Electric Tax-Exempt Revenue Bonds (b) 5.2% due 2020 to 2030310 330DTE Gas Taxable Debt, Principally Secured 4.9% due 2018 to 20451,124 1,099Other Long-Term Debt, Including Non-Recourse Debt110 121DTE Energy Total Long-Term Debt8,805 8,021Less amount due within one year for DTE Energy(465) (161) $8,340 $7,860DTE Electric Securitization Bonds 6.6% due 2015$— $105Less amount due within one year— (105) $— $—DTE Energy Junior Subordinated Debentures 6.5% due 2061$280 $2805.25% due 2062200 200 $480 $480DTE Electric's long-term debt outstanding and weighted average interest rates (a) of debt outstanding at December 31 were: 2015 2014 (In millions)Mortgage bonds, notes, and other DTE Electric Taxable Debt, Principally Secured 4.4% due 2016 to 2045$5,314 $4,824DTE Electric Tax-Exempt Revenue Bonds (b) 5.2% due 2020 to 2030310 330DTE Electric Total Long-Term Debt5,624 5,154Less amount due within one year for DTE Electric(151) (10) $5,473 $5,144DTE Electric Securitization Bonds 6.6% due 2015$— $105Less amount due within one year— (105) $— $—_______________________________________(a)Weighted average interest rates as of December 31, 2015 are shown below the description of each category of debt.(b)DTE Electric Tax-Exempt Revenue Bonds are issued by a public body that loans the proceeds to DTE Electric on terms substantially mirroring the Revenue Bonds.102DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Debt IssuancesIn 2015, the following debt was issued:Company Month Type Interest Rate Maturity Amount (In millions)DTE Electric March Mortgage Bonds (a) 3.70% 2045 $500DTE Energy June Senior Notes (b) 3.30% 2022 300DTE Gas August Mortgage Bonds (c) 3.35% 2027 40DTE Gas August Mortgage Bonds (c) 4.21% 2045 125 $965_______________________________________(a)Proceeds were used for the redemption of long-term debt, repayment of short-term borrowings, and general corporate purposes.(b)Proceeds were used for general corporate purposes.(c)Proceeds were used for the redemption of long-term debt and general corporate purposes.Debt RedemptionsIn 2015, the following debt was redeemed:Company Month Type Interest Rate Maturity Amount (In millions)DTE Electric March Securitization Bonds 6.62% 2015 $105DTE Electric March Mortgage Bonds 7.904% 2016 10DTE Gas September Senior Notes 5.94% 2015 140DTE Electric December Tax-Exempt Revenue Bonds 5.00% 2015 20DTE Energy Various Other Long-Term Debt Various 2015 11 $286The following table shows the Registrants' scheduled debt maturities, excluding any unamortized discount or premium on debt: 2016 2017 2018 2019 2020 2021 andThereafter Total (In millions)DTE Energy (a)$465 $9 $407 $427 $688 $7,304 $9,300DTE Electric$151 $— $300 $— $632 $4,552 $5,635_______________________________________(a)Amounts include DTE Electric's scheduled debt maturities.Junior Subordinated DebenturesAt December 31, 2015, DTE Energy had $280 million of 6.5% Junior Subordinated Debentures due 2061 and $200 million of 5.25% JuniorSubordinated Debentures due 2062. DTE Energy has the right to defer interest payments on the debt securities. Should DTE Energy exercise this right, itcannot declare or pay dividends on, or redeem, purchase or acquire, any of its capital stock during the deferral period. Any deferred interest payments willbear additional interest at the rate associated with the related debt issue. As of December 31, 2015, no interest payments have been deferred on the debtsecurities.Cross Default ProvisionsSubstantially all of the net utility properties of DTE Electric and DTE Gas are subject to the lien of mortgages. Should DTE Electric or DTE Gas fail totimely pay their indebtedness under these mortgages, such failure may create cross defaults in the indebtedness of DTE Energy.103DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 14 — PREFERRED AND PREFERENCE SECURITIESAs of December 31, 2015, the amount of authorized and unissued stock is as follows:Company Type of Stock Par Value Shares AuthorizedDTE Energy Preferred $— 5,000,000DTE Electric Preferred $100 6,747,484DTE Electric Preference $1 30,000,000DTE Gas Preferred $1 7,000,000DTE Gas Preference $1 4,000,000NOTE 15 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGSDTE Energy, DTE Electric, and DTE Gas have unsecured revolving credit agreements that can be used for general corporate borrowings, but areintended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the facilities are available at prevailing short-term interest rates. Additionally, DTE Energy has other facilities to support letter of credit issuance.The agreements require DTE Energy, DTE Electric, and DTE Gas to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In theagreements, “total funded debt” means all indebtedness of each respective company and their consolidated subsidiaries, including capital lease obligations,hedge agreements, and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior subordinated debt, and certain equity-linked securities and, except for calculations at the end of the second quarter, certain DTE Gas short-term debt. “Capitalization” means the sum of (a) totalfunded debt plus (b) “consolidated net worth,” which is equal to consolidated total equity of each respective company and their consolidated subsidiaries(excluding pension effects under certain FASB statements), as determined in accordance with accounting principles generally accepted in the United Statesof America. At December 31, 2015, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.51 to 1, 0.51 to 1,and 0.48 to 1, respectively, and are in compliance with this financial covenant.The availability under the facilities in place at December 31, 2015 is shown in the following table: DTE Energy DTE Electric DTE Gas Total (In millions)Unsecured letter of credit facility, expiring in February 2017$100 $— $— $100Unsecured letter of credit facility, expiring in September 201770 — — 70Unsecured revolving credit facility, expiring April 20201,200 400 300 1,900 1,370 400 300 2,070Amounts outstanding at December 31, 2015 Commercial paper issuances33 272 194 499Letters of credit130 — — 130 163 272 194 629Net availability at December 31, 2015$1,207 $128 $106 $1,441DTE Energy has other outstanding letters of credit which are not included in the above described facilities totaling approximately $17 million whichare used for various corporate purposes.The weighted average interest rate for short-term borrowings was 0.6% and 0.4% at December 31, 2015 and 2014, respectively, for DTE Energy. Theweighted average interest rate for short-term borrowings was 0.7% and 0.5% at December 31, 2015 and 2014, respectively, for DTE Electric.104DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)In conjunction with maintaining certain exchange traded risk management positions, DTE Energy may be required to post collateral with its clearingagent. DTE Energy has a demand financing agreement for up to $100 million with its clearing agent. The agreement, as amended, also allows for up to $50million of additional margin financing provided that DTE Energy posts a letter of credit for the incremental amount and allows the right of setoff with postedcollateral. At December 31, 2015, a $25 million letter of credit was in place, raising the capacity under this facility to $125 million. The $25 million letter ofcredit is included in the table above. The amount outstanding under this agreement was $103 million and $37 million at December 31, 2015 and 2014,respectively and was fully offset by the posted collateral.Dividend RestrictionsCertain of DTE Energy’s credit facilities contain a provision requiring DTE Energy to maintain a total funded debt to capitalization ratio, as defined inthe agreements, of no more than 0.65 to 1, which has the effect of limiting the amount of dividends DTE Energy can pay in order to maintain compliance withthis provision. At December 31, 2015, the effect of this provision was to restrict the payment of approximately $920 million of Retained earnings totaling$4.8 billion. There are no other effective limitations with respect to DTE Energy’s ability to pay dividends.NOTE 16 — CAPITAL AND OPERATING LEASESLessee - Operating Lease — The Registrants lease various assets under operating leases, including coal railcars, office buildings, a warehouse,computers, vehicles, and other equipment. The lease arrangements expire at various dates through 2046.The Registrants' future minimum lease payments under non-cancelable leases at December 31, 2015 were: DTE Energy DTE Electric OperatingLeases OperatingLeases (In millions)2016$37 $24201730 18201825 15201921 14202013 10Thereafter71 35Total minimum lease payments$197 $116Rental expense for DTE Energy operating leases was $43 million in 2015, $38 million in 2014, and $34 million in 2013, including rental expense forDTE Electric operating leases of $32 million in 2015, $26 million in 2014, and $28 million in 2013.105DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Lessor - Capital Lease — DTE Energy leases a portion of its pipeline system to the Vector Pipeline through a capital lease contract that expires in2020, with renewal options extending for five years. DTE Energy owns a 40% interest in the Vector Pipeline. In addition, DTE Energy has an energy servicesagreement, a portion of which is accounted for as a capital lease. The agreement expires in 2019, with a three or five year renewal option. The components ofDTE Energy's net investment in capital leases at December 31, 2015, were as follows: DTE Energy CapitalLeases (In millions)2016$1320171320181320191020209Thereafter—Total minimum future lease receipts58Residual value of leased pipeline40Less unearned income(27)Net investment in capital lease71Less current portion(6) $65NOTE 17 — COMMITMENTS AND CONTINGENCIESEnvironmentalDTE ElectricAir — DTE Electric is subject to the EPA ozone and fine particulate transport and acid rain regulations that limit power plant emissions of sulfurdioxide and nitrogen oxides. The EPA and the State of Michigan have issued emission reduction regulations relating to ozone, fine particulate, regionalhaze, mercury, and other air pollution. These rules have led to controls on fossil-fueled power plants to reduce nitrogen oxide, sulfur dioxide, mercury andother emissions. Additional rulemakings are expected over the next few years which could require additional controls for sulfur dioxide, nitrogen oxides, andhazardous air pollutants.The Cross State Air Pollution Rule (CSAPR), required further reductions of sulfur dioxide and nitrogen oxides emissions beginning in January 2015.DTE Electric expects to meet its obligations under CSAPR. In November 2015, the EPA proposed an update to the CSAPR ozone season program by issuingthe CSAPR Update Rule. The proposed rule was subsequently published in the Federal Register in December 2015. Beginning in 2017, this proposal wouldreduce summertime (May - September) emissions of oxides of nitrogen (NOX) from power plants in 23 states in the eastern half of the U.S., including DTEEnergy facilities. The CSAPR Update Rule is intended to reduce air quality impacts of the interstate transport of air pollution on downwind areas' ability tomeet the 2008 ozone standard and to respond to the July 2015 remand of certain CSAPR budgets by the U.S. Court of Appeals for the D.C. Circuit. EPAexpects to promulgate the final rule in the summer of 2016. It is not possible to quantify the impact of this rulemaking at this time.106DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The Mercury and Air Toxics Standards (MATS) rule, formerly known as the Electric Generating Unit Maximum Achievable Control Technology (EGUMACT) Rule was finalized in December 2011. The MATS rule required reductions of mercury and other hazardous air pollutants beginning in April 2015.DTE Electric requested and was granted compliance date extensions for all relevant units to April 2016. DTE Electric has tested several technologies asMATS compliance alternatives to Flue Gas Desulfurization (FGD) systems to determine technological and economic feasibility. Dry Sorbent Injection (DSI)and Activated Carbon Injection (ACI) technologies were deemed feasible and their implementation will allow units that would not have been economical forFGD installations to continue operation in compliance with MATS. In November 2014, the U.S. Supreme Court agreed to review a challenge to the MATSrule based on a narrowly focused question of how the EPA considered costs in regulating air pollutants emitted by electric utilities. In June 2015, the U.S.Supreme Court reversed the decision of the Court of Appeals for the D.C. District and remanded the MATS rule to the Court of Appeals for furtherconsideration based on their decision that the EPA must consider costs prior to deciding to regulate under the provisions of the Clean Air Act. Subsequently,in December 2015, the Court of Appeals ordered a remand of the MATS rule back to the EPA without staying the rule. DTE Electric does not expect thisdecision to have a material effect on its compliance plans at this time.The EPA proposed revised air quality standards for ground level ozone in November 2014 and specifically requested comments on the form and levelof the ozone standards. The standards were finalized in October 2015. The State of Michigan will recommend designations by October 2016 and the EPA willfinalize designations by October 2017. DTE Electric cannot predict the financial impact of the revised ozone standards at this time.In July 2009, DTE Energy received a NOV/FOV from the EPA alleging, among other things, that five DTE Electric power plants violated New SourcePerformance standards, Prevention of Significant Deterioration requirements, and operating permit requirements under the Clean Air Act. In June 2010, theEPA 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 receiveda supplemental NOV from the EPA relating to the July 2009 NOV/FOV. The supplemental NOV alleged additional violations relating to the New SourceReview 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 ofMichigan 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, butnot 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 availablecontrol 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 emissionsreductions from DTE Electric's fleet of coal-fired power plants until the new control equipment is operating. In August 2011, the U.S. District Court judgegranted DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric.In October 2011, the EPA caused to be filed a Notice of Appeal to the Court of Appeals for the Sixth Circuit. In March 2013, the Court of Appeals remandedthe case to the U.S. District Court for review of the procedural component of the New Source Review notification requirements. In September 2013, the EPAcaused to be filed a motion seeking leave to amend their complaint regarding the June 2010 NOV/FOV adding additional claims related to outage workperformed at the Trenton Channel and Belle River power plants as well as additional claims related to work performed at the Monroe Power Plant. Inaddition, the Sierra Club caused to be filed a motion to add a claim regarding the River Rouge Power Plant. In March 2014, the U.S. District Court judgegranted again DTE Energy's motion for summary judgment dismissing the civil case related to Monroe Unit 2. In April 2014, the U.S. District Court judgegranted motions filed by the EPA and the Sierra Club to amend their New Source Review complaint adding additional claims for Monroe Units 1, 2 and 3,Belle River Units 1 and 2, Trenton Channel Unit 9 and denied the claims related to River Rouge Power Plant that were brought by the Sierra Club. In June2014, the EPA filed a motion requesting certification for appeal of the March 2014 summary judgment decision. In October 2014, the EPA and the U.S.Department of Justice filed the anticipated notice of appeal of the U.S. District Court judge's dismissal of the Monroe Unit 2 case. The amended New SourceReview claims are all stayed until the appeal is resolved by the Court of Appeals for the Sixth Circuit. Oral arguments for the appeal occurred in December2015.The Registrants believe that the plants and generating units identified by the EPA and the Sierra Club have complied with all applicable federalenvironmental regulations. Depending upon the outcome of discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be required toinstall additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control equipmentis not economical, engage in supplemental environmental programs, and/or pay fines. The Registrants cannot predict the financial impact or outcome of thismatter, or the timing of its resolution.107DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The EPA is implementing regulatory actions under the Clean Air Act to address emissions of GHGs from the utility sector and other sectors of theeconomy. Among these actions, the EPA has finalized performance standards for emissions of carbon dioxide from new and existing electric generating units(EGUs). The carbon standards for new sources are not expected to have a material impact on DTE Electric, since DTE Electric has no plans to build new coal-fired generation and any potential new gas generation will be able to comply with the standards. It is not possible to determine the potential impact of thefinal carbon standards (also known as the EPA Clean Power Plan) on existing sources at this time. Pending or future legislation or other regulatory actionscould have a material impact on DTE Electric's operations and financial position and the rates charged to its customers. Impacts include expenditures forenvironmental equipment beyond what is currently planned, financing costs related to additional capital expenditures, the purchase of emission credits frommarket sources, higher costs of purchased power, and the retirement of facilities where control equipment is not economical. DTE Electric would seek torecover these incremental costs through increased rates charged to its utility customers, as authorized by the MPSC.To comply with air pollution requirements, DTE Electric spent approximately $2.3 billion through 2015. DTE Electric estimates making capitalexpenditures of approximately $40 million in 2016.Water — In response to an EPA regulation, DTE Electric would be required to examine alternatives for reducing the environmental impacts of thecooling water intake structures at several of its facilities. Based on the results of completed studies and expected future studies, DTE Electric may be requiredto install technologies to reduce the impacts of the water intake structures. A final rule became effective in October 2015. The final rule requires studies to becompleted by April 2018 to determine the type of technology needed to reduce impacts to fish. DTE Electric has initiated the process of completing therequired studies. Final compliance for the installation of any required technology will be determined by each state on a case by case, site specific basis. DTEElectric is currently evaluating the compliance options and working with the State of Michigan on evaluating whether any controls are needed. Theseevaluations/studies may require modifications to some existing intake structures. It is not possible to quantify the impact of this rulemaking at this time.Contaminated and Other Sites — Prior to the construction of major interstate natural gas pipelines, gas for heating and other uses was manufacturedlocally from processes involving coal, coke, or oil. The facilities, which produced gas, have been designated as MGP sites. DTE Electric conducted remedialinvestigations at contaminated sites, including three former MGP sites. The investigations have revealed contamination related to the by-products of gasmanufacturing at each MGP site. In addition to the MGP sites, DTE Electric is also in the process of cleaning up other contaminated sites, including the areasurrounding 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. AtDecember 31, 2015 and 2014, DTE Electric had $8 million and $10 million accrued for remediation, respectively. Any change in assumptions, such asremediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites andaffect DTE Electric’s financial position and cash flows. DTE Electric believes the likelihood of a material change to the accrued amount is remote based oncurrent knowledge of the conditions at each site.Coal Combustion Residuals and Effluent Limitations Guidelines — A final EPA rule for the disposal of coal combustion residuals, commonly knownas coal ash became effective in October 2015. The rule is based on the continued listing of coal ash as a non-hazardous waste and relies on various self-implementation design and performance standards. DTE Electric owns and operates three permitted engineered coal ash storage facilities to dispose of coalash from coal-fired power plants and operates a number of smaller impoundments at its power plants. At certain facilities, the rule requires the installation ofmonitoring wells, compliance with groundwater standards, and the closure of basins at the end of the useful life of the associated power plant. At otherfacilities, the rule requires ash laden waters be moved from earthen basins to steel and concrete tanks.In November 2015, the EPA finalized effluent limitations guidelines for the steam electric power generating industry which may require additionalcontrols to be installed between 2018 and 2023. Certain effluent limitations guidelines requirements will be required to be performed in conjunction with thecoal combustion residuals requirements. Costs associated with the building of new facilities over the next seven years to comply with coal combustionresiduals requirements and effluent limitations guidelines are estimated to be approximately $290 million. See Note 7 to the Consolidated FinancialStatements, "Asset Retirement Obligations", for estimated costs of closure of old facilities.108DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)DTE GasContaminated and Other Sites — DTE Gas owns or previously owned, 14 former MGP sites. Investigations have revealed contamination related to theby-products of gas manufacturing at each site. Cleanup of five of the MGP sites is complete and the sites are closed. DTE Gas has also completed partialclosure of two additional sites. Cleanup activities associated with the remaining sites will continue over the next several years. The MPSC has established acost deferral and rate recovery mechanism for investigation and remediation costs incurred at former MGP sites. In addition to the MGP sites, DTE Gas is alsoin the process of cleaning up other contaminated sites, including gate stations, gas pipeline releases, and underground storage tank locations. As ofDecember 31, 2015 and 2014, DTE Gas had $22 million and $24 million accrued for remediation, respectively. Any change in assumptions, such asremediation techniques, nature and extent of contamination, and regulatory requirements, could impact the estimate of remedial action costs for the sites andaffect DTE Gas' financial position and cash flows. DTE Gas anticipates the cost amortization methodology approved by the MPSC, which allows foramortization of the MGP costs over a ten-year period beginning with the year subsequent to the year the MGP costs were incurred, will preventenvironmental costs from having a material adverse impact on DTE Gas' results of operations.Non-utilityDTE Energy’s non-utility businesses are subject to a number of environmental laws and regulations dealing with the protection of the environmentfrom various pollutants.The Michigan coke battery facility received and responded to information requests from the EPA that resulted in the issuance of a NOV in June 2007alleging potential maximum achievable control technologies and new source review violations. The EPA is in the process of reviewing DTE Energy’sposition of demonstrated compliance and has not initiated escalated enforcement. At this time, DTE Energy cannot predict the impact of this issue butexpects no further action. Furthermore, the Michigan coke battery facility is the subject of an investigation by the MDEQ concerning visible emissionsreadings that resulted from DTE Energy self reporting to MDEQ questionable activities by an employee of a contractor hired by DTE Energy to perform thevisible emissions readings. At this time, DTE Energy cannot predict the impact of this investigation.The Shenango coke battery received two NOVs from the Pennsylvania Department of Environmental Protection (PADEP) in 2010 alleging violations ofthe permit for the Pennsylvania coke battery facility in connection with coal pile storm water runoff. DTE Energy settled the alleged violations byimplementing best management practices to address the issues and repair/upgrade its wastewater treatment plant. DTE Energy received a construction permitto upgrade its existing waste water treatment system. Due to the December 2015 decision to close the Shenango coke battery in January 2016, DTE Energywill not proceed with the upgrade to its wastewater treatment system.The Shenango coke battery received an NOV from the Allegheny County, PA Health Department pertaining to excessive opacity readings from fugitivesources in excess of its standards for the Pennsylvania coke battery facility. Fugitive sources at the plant are in full compliance with the applicable FederalOpacity Standards. DTE Energy agreed to a Consent Order and Agreement with Allegheny County pursuant to which DTE Energy paid a fine of $300,000and spent $300,000 for a supplemental environmental project. In May 2014, the Group Against Smog & Pollution (GASP) filed a complaint alleging thatDTE Energy's coke battery facility in Pennsylvania was in violation of visible emissions limits under the Federal Clean Air Act and/or Article XXI of theAllegheny County, PA Health Department's Rules and Regulations. DTE Energy believed that the GASP suit was without merit and filed a motion to dismissin July 2014. In March 2015, the U.S. District Court granted DTE Energy's motion for dismissal. In April 2015, GASP filed a notice of appeal. In January2016, the U.S. Court of Appeals for the Third Circuit affirmed the judgment of dismissal.OtherIn 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 incompliance by 2018. Michigan's non-attainment area includes DTE Energy facilities in southwest Detroit and areas of Wayne County. Modeling runs by theMDEQ suggest that emission reductions may be required by significant sources of sulfur dioxide emissions in these areas, including DTE Electric powerplants and DTE Energy's Michigan coke battery facility. As part of the state implementation plan process, DTE Energy has worked with MDEQ to develop airpermits reflecting significant SO2 emission reductions that, in combination with other non-DTE Energy sources emission reduction strategies, will help thestate attain the standard and sustain its attainment. Since several non-DTE Energy sources are also part of the proposed compliance plan, DTE Energy isunable to determine the full impact of the final required emissions reductions at this time.109DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Nuclear OperationsProperty InsuranceDTE Electric maintains property insurance policies specifically for the Fermi 2 plant. These policies cover such items as replacement power andproperty damage. NEIL is the primary supplier of the insurance policies.DTE Electric maintains a policy for extra expenses, including replacement power costs necessitated by Fermi 2’s unavailability due to an insured event.This policy has a 12-week waiting period and provides an aggregate $490 million of coverage over a three-year period.DTE Electric has $1.5 billion in primary coverage and $1.25 billion of excess coverage for stabilization, decontamination, debris removal, repair and/orreplacement of property, and decommissioning. The combined coverage limit for total property damage is $2.75 billion. The total limit for property damagefor non-nuclear events is $2 billion and an aggregate of $328 million of coverage for extra expenses over a two-year period.On January 13, 2015, the Terrorism Risk Insurance Program Reauthorization Act of 2015 was signed, extending TRIA through December 31, 2020. Formultiple terrorism losses caused by acts of terrorism not covered under the TRIA occurring within one year after the first loss from terrorism, the NEIL policieswould make available to all insured entities up to $3.2 billion, plus any amounts recovered from reinsurance, government indemnity, or other sources tocover losses.Under NEIL policies, DTE Electric could be liable for maximum assessments of up to approximately $45 million per event if the loss associated withany one event at any nuclear plant should exceed the accumulated funds available to NEIL.Public Liability InsuranceAs required by federal law, DTE Electric maintains $375 million of public liability insurance for a nuclear incident. For liabilities arising from aterrorist act outside the scope of TRIA, the policy is subject to one industry aggregate limit of $300 million. Further, under the Price-Anderson AmendmentsAct of 2005, deferred premium charges up to $127 million could be levied against each licensed nuclear facility, but not more than $19 million per year perfacility. Thus, deferred premium charges could be levied against all owners of licensed nuclear facilities in the event of a nuclear incident at any of thesefacilities.Nuclear Fuel Disposal CostsIn accordance with the Federal Nuclear Waste Policy Act of 1982, DTE Electric has a contract with the DOE for the future storage and disposal of spentnuclear fuel from Fermi 2 that required DTE Electric to pay the DOE a fee of 1 mill per kWh of Fermi 2 electricity generated and sold. The fee was acomponent of nuclear fuel expense. The DOE's Yucca Mountain Nuclear Waste Repository program for the acceptance and disposal of spent nuclear fuel wasterminated in 2011. DTE Electric is a party in the litigation against the DOE for both past and future costs associated with the DOE's failure to accept spentnuclear fuel under the timetable set forth in the Federal Nuclear Waste Policy Act of 1982. In July 2012, DTE Electric executed a settlement agreement withthe federal government for costs associated with the DOE's delay in acceptance of spent nuclear fuel from Fermi 2 for permanent storage. The settlementagreement, including extensions, provides for a claims process and payment of delay-related costs experienced by DTE Electric through 2016. DTE Electric'sclaims are being settled and paid on a timely basis. The settlement proceeds reduce the cost of the dry cask storage facility assets and provide reimbursementfor related operating expenses. The 1 mill per kWh DOE fee was reduced to zero effective May 16, 2014.DTE Electric currently employs a spent nuclear fuel storage strategy utilizing a fuel pool and a newly completed dry cask storage facility. The dry caskstorage facility is expected to provide sufficient spent fuel storage capability for the life of the plant as defined by the original operating license.The federal government continues to maintain its legal obligation to accept spent nuclear fuel from Fermi 2 for permanent storage. Issues relating tolong-term waste disposal policy and to the disposition of funds contributed by DTE Electric ratepayers to the federal waste fund await future governmentalaction.110DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Synthetic Fuel GuaranteesDTE Energy discontinued the operations of its synthetic fuel production facilities throughout the United States as of December 31, 2007. DTE Energyprovided certain guarantees and indemnities in conjunction with the sales of interests in its synfuel facilities. The guarantees cover potential commercial,environmental, oil price, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations. DTE Energyestimates that its maximum potential liability under these guarantees at December 31, 2015 is approximately $850 million. Payment under these guaranteesis considered remote.REF GuaranteesDTE Energy has provided certain guarantees and indemnities in conjunction with the sales of interests in or lease of its REF facilities. The guaranteescover potential commercial, environmental, and tax-related obligations that will survive until 90 days after expiration of all applicable statutes of limitations.DTE Energy estimates that its maximum potential liability under these guarantees at December 31, 2015 is approximately $268 million. Payment under theseguarantees is considered remote.Other GuaranteesIn certain limited circumstances, the Registrants enter into contractual guarantees. The Registrants may guarantee another entity’s obligation in theevent it fails to perform and may provide guarantees in certain indemnification agreements. Finally, the Registrants may provide indirect guarantees for theindebtedness of others. DTE Energy’s guarantees are not individually material with maximum potential payments totaling $56 million at December 31, 2015.Payment under these guarantees is considered remote.DTE Energy is periodically required to obtain performance surety bonds in support of obligations to various governmental entities and othercompanies in connection with its operations. As of December 31, 2015, DTE Energy had approximately $55 million of performance bonds outstanding. Inthe event that such bonds are called for nonperformance, DTE Energy would be obligated to reimburse the issuer of the performance bond. DTE Energy isreleased from the performance bonds as the contractual performance is completed and does not believe that a material amount of any currently outstandingperformance bonds will be called.Labor ContractsThere are several bargaining units for DTE Energy's approximately 4,900 represented employees, including DTE Electric's approximately 2,600represented employees. The majority of the represented employees are under contracts that expire in 2016 and 2017.Purchase CommitmentsAs of December 31, 2015, the Registrants were party to numerous long-term purchase commitments relating to a variety of goods and services requiredfor their businesses. These agreements primarily consist of fuel supply commitments and renewable energy contracts for the Registrants, as well as energytrading contracts for DTE Energy. The Registrants estimate the following commitments from 2016 through 2051 for DTE Energy, and 2016 through 2033 forDTE Electric, as detailed in the following table: DTE Energy DTE Electric (In millions)2016$2,038 $49320171,160 4122018611 2402019397 1202020353 882021 and thereafter3,043 992 $7,602 $2,345DTE Energy and DTE Electric expect that 2016 annual capital expenditures and contributions to equity method investees will be approximately $2.7billion and $1.6 billion, respectively. The Registrants have made certain commitments in connection with the estimated 2016 annual capital expendituresand contributions to equity method investees.111DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)BankruptciesCertain of the Registrants' customers and suppliers have filed for bankruptcy protection under the U.S. Bankruptcy Code. The Registrants regularlyreview contingent matters relating to these customers and suppliers and their purchase and sale contracts, and record provisions for amounts considered atrisk of probable loss in the allowance for doubtful accounts. The Registrants believe their accrued amounts are adequate for probable loss.Michigan Sales and Use Tax LitigationIn 2010, the Michigan Department of Treasury finalized a sales and use tax audit of DTE Electric for the period from January 2003 to September 2006.It determined that DTE Electric’s electric distribution equipment was not eligible for an industrial-processing exemption and therefore was subject to the usetax. DTE Electric paid the tax for the period under audit and filed a claim in the Michigan Court of Claims disputing the tax determination. DTE Electric hascontinued to apply an appropriate industrial-processing exemption percentage, where applicable, for purchases in the years subsequent to 2006.The Michigan Court of Claims found in favor of DTE Electric, and that determination was subsequently appealed to the Michigan Supreme Court. InJuly 2015, the Michigan Supreme Court issued an opinion finding that DTE Electric was eligible for a partial industrial-processing exemption on its electricdistribution equipment based on the proportion of exempt use of that equipment. The Supreme Court reversed the lower court decision in part and remandedthe case to the Michigan Court of Claims. DTE Electric reached a settlement with the Michigan Department of Treasury in February 2016 and will receive apartial refund of amounts previously paid.Other ContingenciesThe Registrants are involved in certain other legal, regulatory, administrative, and environmental proceedings before various courts, arbitration panels,and governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additionalenvironmental reviews and investigations, audits, inquiries from various regulators, and pending judicial matters. The Registrants cannot predict the finaldisposition of such proceedings. The Registrants regularly review legal matters and record provisions for claims that they can estimate and are consideredprobable of loss. The resolution of these pending proceedings is not expected to have a material effect on the Registrants' Consolidated Financial Statementsin the periods they are resolved.For a discussion of contingencies related to regulatory matters and derivatives see Notes 8 and 12 to the Consolidated Financial Statements,"Regulatory Matters" and "Financial and Other Derivative Instruments", respectively.NOTE 18 — RETIREMENT BENEFITS AND TRUSTEED ASSETSPension Plan BenefitsDTE Energy has qualified defined benefit retirement plans for eligible represented and non-represented employees. The plans are noncontributory andprovide traditional retirement benefits based on the employees’ years of benefit service, average final compensation, and age at retirement. In addition,certain represented and non-represented employees are covered under cash balance provisions that determine benefits on annual employer contributions andinterest credits. DTE Energy also maintains supplemental nonqualified, noncontributory, retirement benefit plans for selected management employees. Theseplans provide for benefits that supplement those provided by DTE Energy’s other retirement plans.DTE Electric participates in various plans that provide pension and other postretirement benefits for DTE Energy and its affiliates. The plans aresponsored by DTE Energy Corporate Services, LLC (LLC), a subsidiary of DTE Energy. DTE Electric is allocated net periodic benefit costs for its share of theamounts of the combined plans.Effective January 1, 2012 for the Registrants' non-represented employees, and in June 2011 for certain DTE Energy represented employees and March2013 for the majority of DTE Electric represented employees, the Registrants discontinued offering a defined benefit retirement plan to newly hiredemployees. In its place, the Registrants will annually contribute an amount equivalent to 4% (8% for certain DTE Gas represented employees) of anemployee's eligible pay to the employee's defined contribution retirement savings plan.112DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The Registrants' policy is to fund pension costs by contributing amounts consistent with the provisions of the Pension Protection Act of 2006 andadditional amounts when it deems appropriate. DTE Energy contributed $177 million, including $145 million of DTE Electric contributions, to the qualifiedpension plans in 2015. At the discretion of management, and depending upon financial market conditions, DTE Energy anticipates making up to $180million in contributions, including $145 million of DTE Electric contributions, to the pension plans in 2016.Net pension cost for DTE Energy includes the following components: 2015 2014 2013 (In millions)Service cost$100 $83 $94Interest cost210 212 192Expected return on plan assets(296) (273) (266)Amortization of net actuarial loss205 157 208Special termination benefits2 — —Net pension cost$221 $179 $228 2015 2014 (In millions)Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income (loss) Net actuarial loss$19 $805Amortization of net actuarial loss(205) (157)Prior service credit— (7)Total recognized in Regulatory assets and Other comprehensive income (loss)$(186) $641Total recognized in net periodic pension cost, Regulatory assets, and Other comprehensive income (loss)$35 $820Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into netperiodic benefit cost during next fiscal year Net actuarial loss$162 $206Net pension cost for DTE Electric includes the following components: 2015 2014 2013 (In millions)Service cost$77 $64 $73Interest cost160 162 146Expected return on plan assets(210) (194) (184)Amortization of: Net actuarial loss147 110 148Prior service cost1 2 1Special termination benefits1 — —Net pension cost$176 $144 $184113DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued) 2015 2014 (In millions)Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income (loss) Net actuarial (gain) loss$(13) $614Amortization of net actuarial loss(147) (110)Prior service credit— (2)Amortization of prior service cost(1) (2)Total recognized in Regulatory assets and Other comprehensive income (loss)$(161) $500Total recognized in net periodic pension cost, Regulatory assets, and Other comprehensive income (loss)$15 $644Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into netperiodic benefit cost during next fiscal year Net actuarial loss$115 $149Prior service cost$1 $1The following table reconciles the obligations, assets, and funded status of the plans as well as the amounts recognized as prepaid pension cost orpension liability in the Registrants' Consolidated Statements of Financial Position at December 31: DTE Energy DTE Electric 2015 2014 2015 2014 (In millions)Accumulated benefit obligation, end of year$4,569 $4,853 $3,401 $3,712Change in projected benefit obligation Projected benefit obligation, beginning of year$5,269 $4,380 $4,018 $3,341Service cost100 83 75 64Interest cost210 212 156 162Plan amendments— (7) — (2)Actuarial (gain) loss(357) 836 (273) 634Transfer due to plan sponsorship change— — (99) —Special termination benefits2 — — —Benefits paid(253) (235) (192) (181)Projected benefit obligation, end of year$4,971 $5,269 $3,685 $4,018Change in plan assets Plan assets at fair value, beginning of year$3,981 $3,720 $2,812 $2,632Actual return on plan assets(79) 301 (56) 212Company contributions183 195 145 149Benefits paid(253) (235) (192) (181)Plan assets at fair value, end of year$3,832 $3,981 $2,709 $2,812Funded status of the plans$(1,139) $(1,288) $(976) $(1,206)Amount recorded as: Current liabilities$(6) $(8) $— $(6)Noncurrent liabilities(1,133) (1,280) (976) (1,200) $(1,139) $(1,288) $(976) $(1,206)Amounts recognized in Accumulated other comprehensive income (loss), pre-tax Net actuarial loss$180 $194 $— $44Prior service credit(1) (1) — — $179 $193 $— $44Amounts recognized in Regulatory assets (see Note 8 - "Regulatory Matters") Net actuarial loss$2,113 $2,285 $1,588 $1,738Prior service cost (credit)(1) (1) 4 5 $2,112 $2,284 $1,592 $1,743114DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)At December 31, 2015, the benefits related to the Registrants' qualified and nonqualified pension plans expected to be paid in each of the next fiveyears and in the aggregate for the five fiscal years thereafter are as follows: DTE Energy DTE Electric (In millions)2016$274 $2132017285 2212018297 2312019306 2382020314 2442021-20251,662 1,279Total$3,138 $2,426Assumptions used in determining the projected benefit obligation and net pension costs of the Registrants are: 2015 2014 2013Projected benefit obligation Discount rate4.50% 4.12% 4.95%Rate of compensation increase4.65% 4.65% 4.20%Net pension costs Discount rate4.12% 4.95% 4.15%Rate of compensation increase4.65% 4.20% 4.20%Expected long-term rate of return on plan assets7.75% 7.75% 8.25%The Registrants employ a formal process in determining the long-term rate of return for various asset classes. Management reviews historic financialmarket risks and returns and long-term historic relationships between the asset classes of equities, fixed income, and other assets, consistent with the widelyaccepted capital market principle that asset classes with higher volatility generate a greater return over the long-term. Current market factors such as inflation,interest rates, asset class risks, and asset class returns are evaluated and considered before long-term capital market assumptions are determined. The long-termportfolio return is also established employing a consistent formal process, with due consideration of diversification, active investment management, andrebalancing. Peer data is reviewed to check for reasonableness. As a result of this process, the Registrants have long-term rate of return assumptions for thepension plans of 7.75% and other postretirement benefit plans of 8.00% for 2016. The Registrants believe these rates are a reasonable assumption for thelong-term rate of return on plan assets for 2016 given the current investment strategy.The Registrants employ a total return investment approach whereby a mix of equities, fixed income, and other investments are used to maximize thelong-term return on plan assets consistent with prudent levels of risk, with consideration given to the liquidity needs of the plan. Risk tolerance is establishedthrough consideration of future plan cash flows, plan funded status, and corporate financial considerations. The investment portfolio contains a diversifiedblend of equity, fixed income, and other investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, growth and valuestocks, and large and small market capitalizations. Fixed income securities generally include market duration bonds of companies from diversified industries,mortgage-backed securities, non-U.S. securities, bank loans, and U.S. Treasuries. Pension assets include long duration U.S. government and diversifiedcorporate bonds intended to partially mitigate liability volatility caused by changes in discount rates. Other assets, such as private markets and hedge funds,are used to enhance long-term returns while improving portfolio diversification. Derivatives may be utilized in a risk controlled manner, to potentiallyincrease the portfolio beyond the market value of invested assets and/or reduce portfolio investment risk. Investment risk is measured and monitored on anongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews.115DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Target allocations for the Registrants' pension plan assets as of December 31, 2015 are listed below:U.S. Large Capitalization (Cap) Equity Securities22%U.S. Small Cap and Mid Cap Equity Securities5Non-U.S. Equity Securities20Fixed Income Securities25Hedge Funds and Similar Investments20Private Equity and Other8 100%116DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following tables provide the fair value measurement amounts for the Registrants' pension plan assets at December 31, 2015 and 2014 (a): December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions)DTE Energy asset category: Short-term Investments (b)$23 $— $— $23 $46 $— $— $46Equity Securities U.S. Large Cap (c)842 — — 842 899 — — 899U.S. Small Cap and Mid Cap (d)219 — — 219 225 — — 225Non-U.S. (e)510 251 — 761 526 219 — 745Fixed Income Securities (f)5 1,024 — 1,029 7 1,113 — 1,120Hedge Funds and Similar Investments (g)220 96 452 768 226 95 438 759Private Equity and Other (h)— — 190 190 — — 187 187Securities Lending (i)(129) (25) — (154) (189) (50) — (239)Securities Lending Collateral (i)129 25 — 154 189 50 — 239DTE Energy Total$1,819 $1,371 $642 $3,832 $1,929 $1,427 $625 $3,981 DTE Electric asset category: Short-term Investments (b)$16 $— $— $16 $33 $— $— $33Equity Securities U.S. Large Cap (c)599 — — 599 638 — — 638U.S. Small Cap and Mid Cap (d)157 — — 157 162 — — 162Non-U.S. (e)367 178 — 545 378 157 — 535Fixed Income Securities (f)4 699 — 703 5 758 — 763Hedge Funds and Similar Investments (g)158 69 325 552 163 68 315 546Private Equity and Other (h)— — 137 137 — — 135 135Securities Lending (i)(93) (18) — (111) (136) (36) — (172)Securities Lending Collateral (i)93 18 — 111 136 36 — 172DTE Electric Total$1,301 $946 $462 $2,709 $1,379 $983 $450 $2,812_______________________________________(a)For a description of levels within the fair value hierarchy, see Note 11 to the Consolidated Financial Statements, "Fair Value".(b)This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds.Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services.(c)This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-tradedsecurities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(d)This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoteprices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(e)This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities wherebyunadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(f)This category includes corporate bonds from diversified industries, U.S. Treasuries, and mortgage-backed securities. Pricing for investments in this category is obtained fromquoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled fundsare classified as Level 2 assets.(g)This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutualfunds, commingled and limited partnership funds, and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices inactively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuationsfor some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing.(h)This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber andprivate mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in thiscategory may be based on discounted cash flow analyses, relevant publicly-traded comparables, and comparable transactions.(i)In 2014, the Registrants began a securities lending program with a third-party agent. The program allows the agent to lend certain securities from the Registrants' pension trusts toselected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with their securities lending agency agreements.117DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The pension trust holds debt and equity securities directly and indirectly through commingled funds and institutional mutual funds. Exchange-tradeddebt and equity securities held directly are valued using quoted market prices in actively traded markets. The commingled funds and institutional mutualfunds hold exchange-traded equity or debt securities and are valued based on stated NAVs. Non-exchange traded fixed income securities are valued by thetrustee 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 thetrustee challenges an assigned price and determines that another price source is considered to be preferable. The Registrants have obtained an understandingof how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, the Registrants selectivelycorroborate the fair values of securities by comparison of market-based price sources.The following table provides a reconciliation of beginning and ending balances of DTE Energy's pension plan assets measured at fair value on arecurring basis where the determination of fair value includes significant unobservable inputs (Level 3): Year Ended December 31, 2015 Year Ended December 31, 2014 Hedge Fundsand SimilarInvestments Private Equityand Other Total Hedge Fundsand SimilarInvestments Private Equityand Other Total (In millions)Beginning Balance at January 1$438 $187 $625 $395 $170 $565Total realized/unrealized gains (losses)10 10 20 22 16 38Purchases, sales, and settlements: Purchases4 32 36 22 31 53Sales— (39) (39) (1) (30) (31)Ending Balance at December 31$452 $190 $642 $438 $187 $625The amount of total gains for the periodattributable to the change in unrealized gains orlosses related to assets still held at the end of theperiod$10 $(3) $7 $21 $11 $32The following table provides a reconciliation of beginning and ending balances of DTE Electric's pension plan assets measured at fair value on arecurring basis where the determination of fair value includes significant unobservable inputs (Level 3): Year Ended December 31, 2015 Year Ended December 31, 2014 Hedge Fundsand SimilarInvestments Private Equityand Other Total Hedge Fundsand SimilarInvestments Private Equityand Other Total (In millions)Beginning Balance at January 1$315 $135 $450 $285 $122 407Total realized/unrealized gains (losses)7 7 14 15 12 27Purchases, sales, and settlements: Purchases3 23 26 16 22 38Sales— (28) (28) (1) (21) (22)Ending Balance at December 31$325 $137 $462 $315 $135 $450The amount of total gains for the periodattributable to the change in unrealized gains orlosses related to assets still held at the end of theperiod$7 $(2) $5 $15 $8 $23There were no transfers from or into Level 3 and there were no significant transfers between Level 2 and Level 1 in the years ended December 31, 2015and 2014 for either of the Registrants.118DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Other Postretirement BenefitsThe Registrants participate in defined benefit plans sponsored by the LLC that provide certain other postretirement health care and life insurancebenefits for employees who are eligible for these benefits. The Registrants' policy is to fund certain trusts to meet its other postretirement benefit obligations.Separate qualified VEBA and other benefit trusts exist. DTE Energy contributed $199 million to these trusts, including $175 million of DTE Electriccontributions, for the defined benefit other postretirement medical and life insurance benefit plans during 2015. At the discretion of management, DTEEnergy anticipates making up to $20 million of contributions, through contributions from DTE Gas, to the trusts in 2016.Starting in 2012, in lieu of offering future employees defined benefit post-employment health care and life insurance benefits, the Registrants allocate afixed amount per year to an account in a defined contribution VEBA for each employee. These accounts are managed either by the Registrant (for non-represented and certain represented groups) or by the Utility Workers of America (UWUA) for Local 223 employees. DTE Energy contributions to the VEBAfor these accounts were $5 million in 2015, $4 million in 2014, and $2 million in 2013, including DTE Electric contributions of $3 million in 2015, $2million in 2014, and $1 million in 2013.Beginning in 2013, the Registrants replaced the defined benefit employer-sponsored retiree medical, prescription drug, and dental coverage with anotional allocation to a Retiree Reimbursement Account. This change applies to both current and future Medicare eligible non-represented and futurerepresented retirees, spouses, surviving spouses, or same sex domestic partners when the youngest of the retiree's covered household turns age 65. The amountof the annual allocation to each participant is determined by the employee's retirement date, and increases each year for each eligible participant at the lowerof the rate of medical inflation or 2%.Net other postretirement credit for DTE Energy includes the following components: 2015 2014 2013 (In millions)Service cost$34 $34 $47Interest cost81 89 88Expected return on plan assets(131) (122) (110)Amortization of: Net actuarial loss43 20 64Prior service credit(126) (144) (131)Net other postretirement credit$(99) $(123) $(42) 2015 2014 (In millions)Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets and Othercomprehensive income (loss) Net actuarial (gain) loss$(68) $192Amortization of net actuarial loss(43) (20)Amortization of prior service credit126 144Total recognized in Regulatory assets and Other comprehensive income (loss)$15 $316Total recognized in net periodic benefit cost, Regulatory assets, and Other comprehensive income (loss)$(84) $193Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into netperiodic benefit cost during next fiscal year Net actuarial loss$32 $43Prior service credit$(118) $(126)119DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Net other postretirement credit for DTE Electric includes the following components: 2015 2014 2013 (In millions)Service cost$25 $26 $35Interest cost62 68 67Expected return on plan assets(90) (85) (74)Amortization of: Net actuarial loss31 14 47Prior service credit(95) (109) (100)Net other postretirement credit$(67) $(86) $(25) 2015 2014 (In millions)Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets and Othercomprehensive income (loss) Net actuarial (gain) loss$(57) $144Amortization of net actuarial loss(31) (14)Amortization of prior service credit95 109Total recognized in Regulatory assets and Other comprehensive income (loss)$7 $239Total recognized in net periodic benefit cost, Regulatory assets, and Other comprehensive income (loss)$(60) $153Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into netperiodic benefit cost during next fiscal year Net actuarial loss$22 $31Prior service credit$(89) $(94)120DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following table reconciles the obligations, assets, and funded status of the plans including amounts recorded as Accrued postretirement liability inthe Registrants' Consolidated Statements of Financial Position at December 31: DTE Energy DTE Electric 2015 2014 2015 2014 (In millions)Change in accumulated postretirement benefit obligation Accumulated postretirement benefit obligation, beginning of year$2,044 $1,878 $1,558 $1,430Service cost34 34 25 26Interest cost81 89 62 68Actuarial (gain) loss(224) 131 (166) 100Benefits paid(89) (88) (65) (66)Accumulated postretirement benefit obligation, end of year$1,846 $2,044 $1,414 $1,558Change in plan assets Plan assets at fair value, beginning of year$1,528 $1,527 $1,038 $1,061Actual return on plan assets(25) 62 (19) 41Company contributions199 24 175 —Benefits paid(85) (85) (63) (64)Plan assets at fair value, end of year$1,617 $1,528 $1,131 $1,038Funded status, end of year$(229) $(516) $(283) $(520)Amount recorded as: Noncurrent assets$— $— $24 $—Current liabilities(1) (1) — —Noncurrent liabilities(228) (515) (307) (520) $(229) $(516) $(283) $(520)Amounts recognized in Accumulated other comprehensive income (loss), pre-tax Net actuarial loss$24 $34 $— $—Prior service credit(2) (5) — — $22 $29 $— $—Amounts recognized in Regulatory assets (see Note 8 - "Regulatory Matters") Net actuarial loss$387 $488 $297 $385Prior service credit(131) (254) (99) (194) $256 $234 $198 $191At December 31, 2015, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate for thefive fiscal years thereafter for the Registrants are as follows: DTE Energy DTE Electric (In millions)2016$100 $772017105 812018108 842019113 882020116 902021-2025621 476Total$1,163 $896121DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Assumptions used in determining the accumulated postretirement benefit obligation and net other postretirement benefit costs of the Registrants are: 2015 2014 2013Accumulated postretirement benefit obligation Discount rate4.50% 4.10% 4.95%Health care trend rate pre- and post- 656.25 / 6.75% 7.50 / 6.50% 7.50 / 6.50%Ultimate health care trend rate4.50% 4.50% 4.50%Year in which ultimate reached pre- and post- 652027 2025 / 2024 2025 / 2024Other postretirement benefit costs Discount rate (prior to interim remeasurement)4.10% 4.95% 4.15%Discount rate (post interim remeasurement)N/A N/A 4.30%Expected long-term rate of return on plan assets8.00% 8.00% 8.25%Health care trend rate pre- and post- 657.50 / 6.50% 7.50 / 6.50% 7.00%Ultimate health care trend rate4.50% 4.50% 5.00%Year in which ultimate reached pre- and post- 652025 / 2024 2025 / 2024 2021A one percentage point increase in health care cost trend rates would have increased the total service cost and interest cost components of benefit costsfor DTE Energy by $6 million, including $4 million for DTE Electric, in 2015 and would have increased the accumulated benefit obligation for DTE Energyby $100 million, including $74 million for DTE Electric, at December 31, 2015. A one percentage point decrease in the health care cost trend rates wouldhave decreased the total service and interest cost components of benefit costs for DTE Energy by $5 million, including $4 million for DTE Electric, in 2015and would have decreased the accumulated benefit obligation for DTE Energy by $86 million, including $64 million for DTE Electric, at December 31,2015.The process used in determining the long-term rate of return for assets and the investment approach for the other postretirement benefit plans is similarto those previously described for the pension plans.Target allocations for the Registrants' other postretirement benefit plan assets as of December 31, 2015 are listed below:U.S. Large Cap Equity Securities17%U.S. Small Cap and Mid Cap Equity Securities4Non-U.S. Equity Securities20Fixed Income Securities25Hedge Funds and Similar Investments20Private Equity and Other14 100%122DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The following tables provide the fair value measurement amounts for the Registrants' other postretirement benefit plan assets at December 31, 2015and 2014 (a): December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalDTE Energy asset category:(In millions)Short-term Investments (b)$7 $— $— $7 $6 $— $— $6Equity Securities U.S. Large Cap (c)264 — — 264 266 — — 266U.S. Small Cap and Mid Cap (d)138 — — 138 149 — — 149Non-U.S. (e)262 55 — 317 222 59 — 281Fixed Income Securities (f)23 390 — 413 15 360 — 375Hedge Funds and Similar Investments (g)109 45 171 325 107 45 168 320Private Equity and Other (h)— — 153 153 — — 131 131Securities Lending (i)(122) (6) — (128) (141) (17) — (158)Securities Lending Collateral (i)122 6 — 128 141 17 — 158DTE Energy Total$803 $490 $324 $1,617 $765 $464 $299 $1,528 DTE Electric asset category: Short-term Investments (b)$5 $— $— $5 $4 $— $— $4Equity Securities U.S. Large Cap (c)183 — — 183 179 — — 179U.S. Small Cap and Mid Cap (d)97 — — 97 102 — — 102Non-U.S. (e)184 37 — 221 151 39 — 190Fixed Income Securities (f)17 272 — 289 11 243 — 254Hedge Funds and Similar Investments (g)76 32 119 227 73 31 114 218Private Equity and Other (h)— — 109 109 — — 91 91Securities Lending (i)(87) (4) — (91) (98) (11) — (109)Securities Lending Collateral (i)87 4 — 91 98 11 — 109DTE Electric Total$562 $341 $228 $1,131 $520 $313 $205 $1,038_______________________________________(a)For a description of levels within the fair value hierarchy see Note 11 to the Consolidated Financial Statements, "Fair Value".(b)This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds.Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services.(c)This category comprises both actively and not actively managed portfolios that track the S&P 500 low cost equity index funds. Investments in this category are exchange-tradedsecurities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(d)This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoteprices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(e)This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities wherebyunadjusted quote prices can be obtained. Exchange-traded securities held in a commingled fund are classified as Level 2 assets.(f)This category includes corporate bonds from diversified industries, U.S. Treasuries, bank loans, and mortgage backed securities. Pricing for investments in this category isobtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held incommingled funds are classified as Level 2 assets.(g)This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded debt and equity, publicly traded mutualfunds, commingled and limited partnership funds, and non-exchange traded securities. Pricing for Level 1 and Level 2 assets in this category is obtained from quoted prices inactively traded markets and quoted prices from broker or pricing services. Non-exchange traded securities held in commingled funds are classified as Level 2 assets. Valuationsfor some Level 3 assets in this category may be based on limited observable inputs as there may be little, if any, publicly available pricing.(h)This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in timber andprivate mezzanine debt. Pricing for investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for assets in thiscategory may be based on discounted cash flow analyses, relevant publicly-traded comparables, and comparable transactions.(i)In 2014, the Registrants began a securities lending program with a third-party agent. The program allows the agent to lend certain securities from the Registrants' VEBA trust toselected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with their securities lending agency agreements.123DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The DTE Energy Company Master VEBA Trust holds debt and equity securities directly and indirectly through commingled funds and institutionalmutual funds. Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The commingledfunds and institutional mutual funds hold exchange-traded equity or debt securities and are valued based on NAVs. Non-exchange traded fixed incomesecurities are valued by the trustee based upon quotations available from brokers or pricing services. A primary price source is identified by asset type, class,or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary pricesource of a given security if the trustee challenges an assigned price and determines that another price source is considered to be preferable. The Registrantshave obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices.Additionally, the Registrants selectively corroborate the fair values of securities by comparison of market-based price sources.The following table provides a reconciliation of beginning and ending balances of DTE Energy's other postretirement benefit plan assets measured atfair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3): Year Ended December 31, 2015 Year Ended December 31, 2014 Hedge Fundsand SimilarInvestments PrivateEquity andOther Total Hedge Fundsand SimilarInvestments PrivateEquity andOther Total (In millions)Beginning Balance at January 1$168 $131 $299 $159 $101 $260Total realized/unrealized gains (losses)4 9 13 8 9 17Purchases, sales, and settlements: Purchases11 34 45 9 33 42Sales(12) (21) (33) (8) (12) (20)Ending Balance at December 31$171 $153 $324 $168 $131 $299The amount of total gains for the periodattributable to the change in unrealized gains orlosses related to assets still held at the end of theperiod$— $3 $3 $7 $8 $15The following table provides a reconciliation of beginning and ending balances of DTE Electric's other postretirement benefit plan assets measured atfair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3): Year Ended December 31, 2015 Year Ended December 31, 2014 Hedge Fundsand SimilarInvestments PrivateEquity andOther Total Hedge Fundsand SimilarInvestments PrivateEquity andOther Total (In millions)Beginning Balance at January 1$114 $91 $205 $111 $71 $182Total realized/unrealized gains (losses)3 6 9 5 6 11Purchases, sales, and settlements: Purchases11 26 37 4 22 26Sales(9) (14) (23) (6) (8) (14)Ending Balance at December 31$119 $109 $228 $114 $91 $205The amount of total gains for the periodattributable to the change in unrealized gains orlosses related to assets still held at the end of theperiod$— $2 $2 $5 $5 $10There were no transfers from or into Level 3 and there were no significant transfers between Level 2 and Level 1 in the years ended December 31, 2015and 2014 for either of the Registrants.124DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Interim Re-Measurement of Other Postretirement Benefit ObligationIn March 2013, the Registrants reached agreements on new four-year labor contracts with certain represented employees under several bargaining units.As a term of the agreements, the Registrants replaced the defined benefit employer-sponsored retiree medical, prescription drug, and dental coverage forfuture Medicare eligible retirees and their covered dependents with an allocation to a Retiree Reimbursement Account, when the youngest of the retiree'scovered household turns age 65. The initial amount of the allocation of $3,250 per year for each eligible participant increases each year at the lower of therate of medical inflation or 2%. The modification in retiree health coverage will reduce future other postretirement benefit costs.Based on the impact of such benefit cost savings on the Registrants' Consolidated Financial Statements, the Registrants re-measured their retiree healthplan as of March 31, 2013. In performing the re-measurement, the Registrants updated their significant actuarial assumptions, including an adjustment to thediscount rate from 4.15% at December 31, 2012 to 4.30% at March 31, 2013. Plan assets were also updated to reflect fair value as of the re-measurement date.Beginning April 2013, net other postretirement benefit costs were recorded based on the updated actuarial assumptions and benefit changes resulting fromthe new labor contracts.DTE Energy Common StockDTE Energy contributed the following amounts of DTE Energy common stock to the DTE Energy Company Master VEBA Trust for funding its otherpostretirement benefit plans:Date Number of Shares Price per Share Amount (In millions)February 17, 2015 1,427,835 $81.91 $117 $117The above contribution was made on behalf of DTE Electric, which paid DTE Energy cash consideration of $117 million in February 2015.During 2015, DTE Energy also made cash contributions of $82 million, including DTE Electric contributions of $58 million, to the DTE EnergyCompany Master VEBA Trust for its other postretirement benefit plans.Grantor TrustDTE Gas maintains a Grantor Trust that invests in life insurance contracts and income securities to fund other postretirement benefit obligations.Employees and retirees have no right, title, or interest in the assets of the Grantor Trust, and DTE Gas can revoke the trust subject to providing the MPSC withprior notification. DTE Gas accounts for its investment at fair value, which approximated $18 million at December 31, 2015 and 2014, with unrealized gainsand losses recorded to earnings. The Grantor Trust investment is included in Other investments on DTE Energy's Consolidated Statements of FinancialPosition.Defined Contribution PlansThe Registrants also sponsor defined contribution retirement savings plans. Participation in one of these plans is available to substantially allrepresented and non-represented employees. For substantially all employees, the Registrants match employee contributions up to certain predefined limitsbased upon eligible compensation and the employee’s contribution rate. The cost of these plans was $49 million, $48 million, and $41 million in each of theyears 2015, 2014, and 2013, respectively, for DTE Energy, and $23 million, $24 million, and $21 million in each of the years 2015, 2014, and 2013,respectively, for DTE Electric.Plan ChangesIn 2015, certain executive retirement benefit plans were amended to transfer the obligation for benefits as attributed to the LLC. The related planliabilities were transferred from DTE Electric and DTE Gas to the LLC. The related Rabbi Trust assets were also transferred to DTE Energy from DTE Electric.125DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)NOTE 19 — STOCK-BASED COMPENSATIONDTE Energy’s stock incentive program permits the grant of incentive stock options, non-qualifying stock options, stock awards, performance shares,and performance units to employees and members of its Board of Directors. As a result of a stock award, a settlement of an award of performance shares, or byexercise of a participant’s stock option, DTE Energy may deliver common stock from its authorized but unissued common stock and/or from outstandingcommon stock acquired by or on behalf of DTE Energy in the name of the participant. Key provisions of the stock incentive program are:•Authorized limit is 14,500,000 shares of common stock;•Prohibits the grant of a stock option with an exercise price that is less than the fair market value of DTE Energy’s stock on the date of thegrant; and•Imposes the following award limits to a single participant in a single calendar year, (1) options for more than 500,000 shares of common stock;(2) stock awards for more than 150,000 shares of common stock; (3) performance share awards for more than 300,000 shares of common stock(based on the maximum payout under the award); or (4) more than 1,000,000 performance units, which have a face amount of $1.00 each.DTE Energy records compensation expense at fair value over the vesting period for all awards it grants.The following table summarizes the components of stock-based compensation for DTE Energy: 2015 2014 2013 (In millions)Stock-based compensation expense$34 $103 $99Tax benefit$13 $40 $38Stock-based compensation cost capitalized in Property, plant, and equipment$5 $16 $15Stock OptionsOptions are exercisable according to the terms of the individual stock option award agreements and expire ten years after the date of the grant. Theoption exercise price equals the fair value of the stock on the date that the option was granted. Stock options vest ratably over a three-year period.The following table summarizes DTE Energy's stock option activity for the year ended December 31, 2015: Number of Options Weighted AverageExercise Price Aggregate IntrinsicValue(In millions)Options outstanding at December 31, 2014444,278 $43.56 Exercised(178,017) $45.07 Forfeited or expired(3,979) $44.72 Options outstanding and exercisable at December 31, 2015262,282 $42.52 $10As of December 31, 2015, the weighted average remaining contractual life for the exercisable shares is 2.80 years. As of December 31, 2015, all optionswere vested. No options vested during 2015.There were no options granted during 2015, 2014, or 2013. The intrinsic value of options exercised for the years ended December 31, 2015, 2014, and2013 was $7 million, $11 million, and $12 million, respectively. No option expense was recognized for 2015, 2014, or 2013.126DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)The number, weighted average exercise price, and weighted average remaining contractual life of DTE Energy options outstanding as of December 31,2015 were as follows:Range of Exercise Prices Number of Options Weighted Average Exercise Price Weighted AverageRemaining Contractual Life (Years)$27.00 — $38.00 22,083 $27.70 3.16$38.01 — $42.00 80,434 $41.79 2.16$42.01 — $45.00 116,665 $43.90 3.79$45.01 — $50.00 43,100 $47.75 1.15 262,282 $42.52 2.80Restricted Stock AwardsStock awards granted under the plan are restricted for varying periods, generally for three years. Participants have all rights of a shareholder with respectto a stock award, including the right to receive dividends and vote the shares. Prior to vesting in stock awards, the participant: (i) may not sell, transfer,pledge, exchange, or otherwise dispose of shares; (ii) shall not retain custody of the share certificates; and (iii) will deliver to DTE Energy a stock power withrespect to each stock award upon request.The stock awards are recorded at cost that approximates fair value on the date of grant. The cost is amortized to compensation expense over the vestingperiod.Stock award activity for DTE Energy for the years ended December 31 was: 2015 2014 2013Fair value of awards vested (in millions)$9 $11 $8Restricted common shares awarded144,300 159,590 127,785Weighted average market price of shares awarded$83.43 $70.09 $64.72Compensation cost charged against income (in millions)$10 $10 $23The following table summarizes DTE Energy’s restricted stock awards activity for the year ended December 31, 2015: RestrictedStock Weighted AverageGrant DateFair ValueBalance at December 31, 2014416,318 $62.82Grants144,300 $83.43Forfeitures(12,721) $74.78Vested and issued(165,453) $55.73Balance at December 31, 2015382,444 $73.26Performance Share AwardsPerformance shares awarded under the plan are for a specified number of shares of DTE Energy common stock that entitle the holder to receive a cashpayment, shares of DTE Energy common stock, or a combination thereof. The final value of the award is determined by the achievement of certainperformance objectives and market conditions. The awards vest at the end of a specified period, usually three years. Awards granted in 2014 and 2015 wereprimarily deemed to be equity awards. The DTE Energy stock price and number of probable shares attributable to market conditions for such equity awardsare fair valued only at the grant date. Performance shares awarded prior to 2014 are liability awards and are remeasured to fair value at each reporting period.DTE Energy accounts for performance share awards by accruing compensation expense over the vesting period based on: (i) the number of shares expected tobe paid which is based on the probable achievement of performance objectives; and (ii) the closing stock price market value. The settlement of the award isbased on the closing price at the settlement date.127DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)DTE Energy recorded compensation expense for performance share awards as follows: 2015 2014 2013 (In millions)Compensation expense$24 $93 $77Cash settlements (a)$13 $11 $9Stock settlements (a)$71 $61 $56_______________________________________(a)Sum of cash and stock settlements approximates the intrinsic value of the awards.During the vesting period, the recipient of a performance share award has no shareholder rights. During the period beginning on the date theperformance shares are awarded and ending on the certification date of the performance objectives, the number of performance shares awarded will beincreased, assuming full dividend reinvestment at the fair market value on the dividend payment date. The cumulative number of performance shares will beadjusted to determine the final payment based on the performance objectives achieved. Performance share awards are nontransferable and are subject to riskof forfeiture.The following table summarizes DTE Energy’s performance share activity for the period ended December 31, 2015: Performance Shares Weighted AverageGrant DateFair ValueBalance at December 31, 20141,554,697 $69.32Grants467,288 $83.85Forfeitures(47,067) $76.22Payouts(532,700) $—Balance at December 31, 20151,442,218 $75.85Unrecognized Compensation CostsAs of December 31, 2015, DTE Energy's total unrecognized compensation cost related to non-vested stock incentive plan arrangements and theweighted average recognition period was as follows: UnrecognizedCompensationCost Weighted Averageto be Recognized (In millions) (In years)Stock awards$11 1.11Performance shares37 0.97 $48 1.00Allocated Stock-Based CompensationDTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation. DTE Electric's allocation for 2015, 2014, and2013 for stock-based compensation expense was approximately $21 million, $62 million, and $58 million, respectively.NOTE 20 — SEGMENT AND RELATED INFORMATIONDTE Energy sets strategic goals, allocates resources, and evaluates performance based on the following structure:Electric segment consists principally of DTE Electric, which is engaged in the generation, purchase, distribution, and sale of electricity toapproximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan.128DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Gas segment consists principally of DTE Gas, which is engaged in the purchase, storage, transportation, distribution, and sale of natural gas toapproximately 1.2 million residential, commercial, and industrial customers throughout Michigan and the sale of storage and transportation capacity.Gas Storage and Pipelines consists of natural gas pipeline, gathering, and storage businesses.Power and Industrial Projects is comprised primarily of projects that deliver energy and utility-type products and services to industrial, commercial,and institutional customers, produce reduced emissions fuel, and sell electricity from renewable energy projects.Energy Trading consists of energy marketing and trading operations.Corporate and Other includes various holding company activities, holds certain non-utility debt, and energy-related investments.The federal income tax provisions or benefits of DTE Energy’s subsidiaries are determined on an individual company basis and recognize the taxbenefit of tax credits and net operating losses, if applicable. The state and local income tax provisions of the utility subsidiaries are determined on anindividual company basis and recognize the tax benefit of various tax credits and net operating losses, if applicable. The subsidiaries record federal, state,and local income taxes payable to or receivable from DTE Energy based on the federal, state, and local tax provisions of each company.Inter-segment billing for goods and services exchanged between segments is based upon tariffed or market-based prices of the provider and primarilyconsists of the sale of reduced emissions fuel, power sales, and natural gas sales in the following segments: Year Ended December 31, 2015 2014 2013 (In millions)Electric$36 $29 $26Gas3 6 4Gas Storage and Pipelines8 9 3Power and Industrial Projects785 794 816Energy Trading32 33 43Corporate and Other4 3 (24) $868 $874 $868129DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)Financial data of DTE Energy's business segments follows: Electric Gas Gas Storageand Pipelines Power andIndustrialProjects EnergyTrading Corporate andOther ReclassificationsandEliminations Total (In millions)2015 Operating Revenues — Utility operations$4,901 1,376 — — — — (39) $6,238Operating Revenues — Non-utility operations$— — 243 2,224 2,459 2 (829) $4,099Depreciation and amortization$637 104 30 78 2 1 — $852Interest income$— (7) (8) (8) (2) (52) 64 $(13)Interest expense$258 62 24 32 6 132 (64) $450Equity in earnings of equity method investees$2 6 47 8 — 3 — $66Income Tax Expense (Benefit)$290 72 70 (140) (15) (47) — $230Net Income (Loss) Attributable to DTE EnergyCompany$542 132 107 16 (22) (48) — $727Investment in equity method investees$10 9 296 183 — 16 — $514Capital expenditures and acquisitions$1,785 273 161 36 6 — — $2,261Goodwill$1,208 743 24 26 17 — — $2,018Total Assets$19,539 4,299 1,047 860 590 3,530 (1,128) $28,737 Electric Gas Gas Storageand Pipelines Power andIndustrialProjects EnergyTrading Corporate andOther ReclassificationsandEliminations Total (In millions)2014 Operating Revenues — Utility operations$5,283 1,636 — — — — (35) $6,884Operating Revenues — Non-utility operations$— — 203 2,289 3,762 2 (839) $5,417Depreciation and amortization$933 99 34 77 1 1 — $1,145Interest income$(1) (7) (6) (5) — (48) 57 $(10)Interest expense$250 57 22 28 7 122 (57) $429Equity in earnings of equity method investees$1 7 35 5 — — — $48Income Tax Expense (Benefit)$296 78 53 (100) 77 (40) — $364Net Income (Loss) Attributable to DTE EnergyCompany$528 140 82 90 122 (57) — $905Investment in equity method investees$8 10 224 184 — 8 — $434Capital expenditures and acquisitions$1,561 224 184 77 3 — — $2,049Goodwill$1,208 743 24 26 17 — — $2,018Total Assets$18,713 4,247 883 998 755 3,209 (906) $27,899130DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued) Electric Gas Gas Storageand Pipelines Power andIndustrialProjects EnergyTrading Corporate andOther ReclassificationsandEliminations Total (In millions)2013 Operating Revenues — Utility operations$5,199 1,474 — — — — (30) $6,643Operating Revenues — Non-utility operations$— — 132 1,950 1,771 3 (838) $3,018Depreciation and amortization$902 95 23 72 1 1 — $1,094Interest income$(1) (7) (7) (6) — (51) 63 $(9)Interest expense$268 58 18 27 8 120 (63) $436Equity in earnings of equity method investees$1 6 44 8 — — — $59Income Tax Expense (Benefit)$252 77 45 (45) (38) (37) — $254Net Income (Loss) Attributable to DTE EnergyCompany$484 143 70 66 (58) (44) — $661Investment in equity method investees$9 10 201 189 — 6 — $415Capital expenditures and acquisitions$1,325 209 245 93 3 1 — $1,876Goodwill$1,208 743 24 26 17 — — $2,018Total Assets$17,508 3,920 823 1,054 624 2,945 (939) $25,935NOTE 21 — RELATED PARTY TRANSACTIONSDTE Electric has agreements with affiliated companies to sell energy for resale, purchase fuel and power, provide fuel supply services, and providepower plant operation and maintenance services. DTE Electric has agreements with certain DTE Energy affiliates where DTE Electric charges the affiliates fortheir use of the shared capital assets of DTE Electric. A shared services company accumulates various corporate support services expenses and charges varioussubsidiaries of DTE Energy, including DTE Electric. DTE Electric records federal, state, and local income taxes payable to or receivable from DTE Energybased on its federal, state, and local tax provisions.The following is a summary of DTE Electric's transactions with affiliated companies: 2015 2014 2013 (In millions)Revenues Energy sales$2 $2 $2Other services$6 $5 $7Shared capital assets$33 $26 $23Costs Fuel and purchased power$9 $4 $4Other services and interest$2 $(1) $(1)Corporate expenses (net)$334 $304 $334Other Dividends declared$395 $370 $342Dividends paid$395 $370 $342Capital contribution from DTE Energy$300 $190 $400DTE Electric's Accounts receivable and Accounts payable related to Affiliates are payable upon demand and are generally settled in cash within amonthly business cycle. Notes receivable and Short-term borrowings related to Affiliates are subject to a credit agreement with DTE Energy whereby short-term excess cash or cash shortfalls are remitted to or funded by DTE Energy. This credit arrangement involves the charge and payment of interest at market-based rates. Refer to DTE Electric's Consolidated Statements of Financial Position for affiliate balances at December 31, 2015 and 2014.131DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements — (Continued)For DTE Electric, there were no charitable contributions to the DTE Energy Foundation for the years ended December 31, 2015 and 2014, while therewere $18 million in contributions for the year ended December 31, 2013. The DTE Energy Foundation is a non-consolidated not-for-profit privatefoundation, the purpose of which is to contribute and assist charitable organizations.See the following notes for other related party transactions impacting DTE Electric’s Consolidated Financial Statements:Note Title4 Acquisitions and Exit Activities18 Retirement Benefits and Trusteed Assets19 Stock-Based CompensationNOTE 22 — SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (UNAUDITED)DTE EnergyQuarterly earnings per share may not equal full year totals, since quarterly computations are based on weighted average common shares outstandingduring each quarter. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year (In millions, except per share amounts)2015 Operating Revenues$2,984 $2,268 $2,598 $2,487 $10,337Operating Income$461 $204 $440 $134 $1,239Net Income Attributable to DTE Energy Company$273 $109 $265 $80 $727Basic Earnings per Share$1.53 $0.61 $1.47 $0.45 $4.05Diluted Earnings per Share$1.53 $0.61 $1.47 $0.45 $4.052014 Operating Revenues$3,930 $2,698 $2,595 $3,078 $12,301Operating Income$560 $249 $239 $542 $1,590Net Income Attributable to DTE Energy Company$326 $124 $156 $299 $905Basic Earnings per Share$1.84 $0.70 $0.88 $1.68 $5.11Diluted Earnings per Share$1.84 $0.70 $0.88 $1.68 $5.10DTE Electric FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year (In millions)2015 Operating Revenues$1,203 $1,147 $1,385 $1,165 $4,900Operating Income$268 $214 $400 $192 $1,074Net Income$137 $99 $216 $92 $5442014 Operating Revenues$1,410 $1,281 $1,357 $1,234 $5,282Operating Income$271 $259 $272 $250 $1,052Net Income$137 $130 $136 $129 $532132Item 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureNone.Item 9A. Controls and ProceduresSee Item 8. Financial Statements and Supplementary Data for management’s evaluation of the Registrants' disclosure controls and procedures, theirreport on internal control over financial reporting, and their conclusion on changes in internal control over financial reporting.Item 9B. Other InformationNone.Part IIIItem 10. Directors, Executive Officers, and Corporate GovernanceItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related Transactions, and Director IndependenceDTE ElectricInformation required of DTE Electric by Part III (Items 10, 11, 12, and 13) of this Form 10-K is omitted per General Instruction I (2) (c) of Form 10-K forwholly-owned subsidiaries (reduced disclosure format).Item 14. Principal Accountant Fees and ServicesDTE EnergyInformation required of DTE Energy by Part III (Items 10, 11, 12, 13, and 14) of this Form 10-K is incorporated by reference from DTE Energy’sdefinitive Proxy Statement for its 2016 Annual Meeting of Shareholders to be held May 5, 2016. The Proxy Statement will be filed with the SEC, pursuant toRegulation 14A, not later than 120 days after the end of DTE Energy's fiscal year covered by this report on Form 10-K, all of which information is herebyincorporated by reference in, and made part of, this Form 10-K.133DTE ElectricFor the years ended December 31, 2015 and 2014, professional services were performed by PricewaterhouseCoopers LLP (PwC). The following tablepresents fees for professional services rendered by PwC for the audit of DTE Electric’s annual financial statements for the years ended December 31, 2015 andDecember 31, 2014, respectively, and fees billed for other services rendered by PwC during those periods. 2015 2014Audit fees (a)$1,329,245 $1,337,674Audit-related fees (b)12,000 11,000Total$1,341,245 $1,348,674_______________________________________(a)Represents the aggregate fees for the audits of DTE Electric’s annual financial statements included in the Annual Reports on Form 10-K and for the reviews of the financialstatements included in the Quarterly Reports on Form 10-Q.(b)Represents the aggregate fees billed for audit-related services for various attest services.The above listed fees were pre-approved by the DTE Energy Audit Committee. Prior to engagement, the DTE Energy Audit Committee pre-approvesthese services by category of service. The DTE Energy Audit Committee may delegate to the chair of the Audit Committee, or to one or more otherdesignated members of the Audit Committee, the authority to grant pre-approvals of all permitted services or classes of these permitted services to beprovided by the independent auditor up to, but not exceeding, a pre-defined limit. The decision of the designated member to pre-approve a permitted servicewill be reported to the DTE Energy Audit Committee at the next scheduled meeting.134Part IVItem 15. Exhibits and Financial Statement SchedulesA.The following documents are filed as part of this Annual Report on Form 10-K.(1)Consolidated Financial Statements. See “Item 8 — Financial Statements and Supplementary Data.”(2)Financial statement schedule. See “Item 8 — Financial Statements and Supplementary Data.”(3)Exhibits.ExhibitNumber Description DTEEnergy DTEElectric (i) Exhibits filed herewith: 10.96 Third Amendment to the DTE Energy Company Executive Supplemental Retirement Plan (Amended andRestated Effective January 1, 2005) dated as of February 3, 2016 X 10.97 First Amendment to DTE Energy Company Executive Performance Plan Effective May 7, 2015, dated as ofFebruary 3, 2016 X 10.98 First Amendment to DTE Energy Company Executive Deferred Compensation Plan as Amended and Restated,effective as of January 1, 2005, dated as of February 4, 2016 X 10.99 First Amendment to DTE Energy Company Long-Term Incentive Plan Amended and Restated Effective May 1,2014, dated as of February 4, 2016 X 12.65 Computation of Ratio of Earnings to Fixed Charges X 12.66 Computation of Ratio of Earnings to Fixed Charges X 21.11 Subsidiaries of DTE Energy X 23.30 Consent of PricewaterhouseCoopers LLP X 23.31 Consent of PricewaterhouseCoopers LLP X 31.109 Chief Executive Officer Section 302 Form 10-K Certification of Periodic Report X 31.110 Chief Financial Officer Section 302 Form 10-K Certification of Periodic Report X 31.111 Chief Executive Officer Section 302 Form 10-K Certification of Periodic Report X 31.112 Chief Financial Officer Section 302 Form 10-K Certification of Periodic Report X 101.INS XBRL Instance Document X X 101.SCH XBRL Taxonomy Extension Schema X X 101.CAL XBRL Taxonomy Extension Calculation Linkbase X X 101.DEF XBRL Taxonomy Extension Definition Database X X 101.LAB XBRL Taxonomy Extension Label Linkbase X X 101.PRE XBRL Taxonomy Extension Presentation Linkbase X X (ii) Exhibits furnished herewith: 32.109 Chief Executive Officer Section 906 Form 10-K Certification of Periodic Report X 32.110 Chief Financial Officer Section 906 Form 10-K Certification of Periodic Report X 32.111 Chief Executive Officer Section 906 Form 10-K Certification of Periodic Report X 32.112 Chief Financial Officer Section 906 Form 10-K Certification of Periodic Report X135 (iii) Exhibits incorporated by reference: Certain exhibits listed below refer to "The Detroit Edison Company" and "Michigan Consolidated Gas Company" and were effective prior to the change toDTE Electric Company and DTE Gas Company, respectively, effective January 1, 2013. 3(a) Amended Bylaws of DTE Energy Company, as amended through September 17, 2015 (Exhibit 3.1 to DTEEnergy’s Form 8-K dated September 17, 2015) X 3(b) Amended and Restated Articles of Incorporation of DTE Energy Company, dated December 13, 1995 and asamended from time to time (Exhibit 3-1 to DTE Energy’s Form 8-K dated May 6, 2010). X 4(a) Amended and Restated Indenture, dated as of April 9, 2001, between DTE Energy Company and The Bank ofNew York, as trustee (Exhibit 4.1 to Registration Statement on Form S-3 (File No. 333-58834)) and indenturessupplemental thereto, dated as of dates indicated below, and filed as exhibits to the filings set forth below: X Supplemental Indenture, dated as of April 1, 2003, between DTE Energy Company and The Bank of New York,as trustee (Exhibit 4(o) to DTE Energy’s Form 10-Q for the quarter ended March 31, 2003). (2003 Series A63/8% Senior Notes due 2033) X Supplemental Indenture, dated as of May 15, 2006, between DTE Energy Company and The Bank of NewYork, as trustee (Exhibit 4-239 to DTE Energy’s Form 10-Q for the quarter ended June 30, 2006). (2006Series B 6.35% Senior Notes due 2016) X Supplemental Indenture, dated as of December 1, 2011, between DTE Energy Company and The Bank of NewYork Mellon Trust Company, N.A., as successor trustee (Exhibit 4-274 to DTE Energy’s Form 8-K datedDecember 7, 2011). (2011 Series I 6.50% Junior Subordinated Debentures due 2061) X Supplemental Indenture, dated as of September 1, 2012, between DTE Energy Company and The Bank of NewYork Mellon Trust Company, N.A., as successor trustee (Exhibit 4-275 to DTE Energy’s Form 8-K datedOctober 1, 2012) (2012 Series C 5.25% Junior Subordinated Debentures due 2062) X Supplemental Indenture, dated as of December 1, 2013, between DTE Energy and The Bank of New YorkMellon Trust Company, N.A., as successor trustee (Exhibit 4-282 to DTE Energy’s Form 10-K for the yearended December 31, 2013). (2013 Series F Senior Notes due 2023) X Supplemental Indenture, dated as of May 1, 2014, between DTE Energy Company and The Bank of New YorkMellon Trust Company, N.A., as successor trustee (Exhibit 4-284 to DTE Energy’s Form 10-Q for the quarterended June 30, 2014). (2014 Series C due 2024) X Supplemental Indenture, dated as of November 1, 2014, between DTE Energy Company and The Bank of NewYork Mellon Trust Company, N.A., as successor trustee (Exhibit 4-287 to DTE Energy’s Form 10-K for the yearended December 31, 2014). (2014 Series G due 2019) X Supplemental Indenture, dated as of June 15, 2015, between DTE Energy Company and The Bank of NewYork Mellon Trust Company, N.A., as trustee. (Exhibit 4.1 to DTE Energy Company’s Form 8-K filed on June17, 2015). (2015 Series B due 2022) X 4(b) Mortgage and Deed of Trust, dated as of October 1, 1924, between The Detroit Edison Company and The Bankof New York Mellon Trust Company, N.A., as successor trustee (Exhibit B-1 to Detroit Edison's RegistrationStatement on Form A-2 (File No. 2-1630)) and indentures supplemental thereto, dated as of dates indicatedbelow, and filed as exhibits to the filings set forth below: X X Supplemental Indenture, dated as of December 1, 1940, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit B-14 to Detroit Edison's Registration Statement on Form A-2 (File No. 2-4609)). (amendment) X X Supplemental Indenture, dated as of September 1, 1947, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit B-20 to Detroit Edison's Registration Statement on Form S-1 (File No. 2-7136)). (amendment) X X136 Supplemental Indenture, dated as of March 1, 1950, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit B-22 to Detroit Edison's Registration Statement on Form S-1 (File No. 2-8290)).(amendment) X X Supplemental Indenture, dated as of November 15, 1951, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit B-23 to Detroit Edison's Registration Statement on Form S-1 (File No. 2-9226)). (amendment) X X Supplemental Indenture, dated as of August 15, 1957, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 3-B-30 to Detroit Edison's Form 8-K dated September 11, 1957).(amendment) X X Supplemental Indenture, dated as of December 1, 1966, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 2-B-32 to Detroit Edison's Registration Statement on Form S-9 (File No. 2-25664)). (amendment) X X Supplemental Indenture, dated as of February 15, 1990, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-212 to Detroit Edison's Form 10-K for the year ended December 31, 2000).(1990 Series B) X X Supplemental Indenture, dated as of May 1, 1991, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-178 to Detroit Edison's Form 10-K for the year ended December 31, 1996). (1991Series CP) X X Supplemental Indenture, dated as of May 15, 1991, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-179 to Detroit Edison's Form 10-K for the year ended December 31, 1996). (1991Series DP) X X Supplemental Indenture, dated as of February 29, 1992, to the Mortgage and Deed of Trust, dated as of October1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-187 to Detroit Edison's Form 10-Q for the quarter ended March 31, 1998). (1992Series AP) X X Supplemental Indenture, dated as of April 26, 1993, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-215 to Detroit Edison's Form 10-K for the year ended December 31, 2000).(amendment) X X Supplemental Indenture, dated as of September 17, 2002, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4.1 to Detroit Edison's Registration Statement on Form S-3 (File No. 333-100000)). (amendment and successor trustee) X X Supplemental Indenture, dated as of October 15, 2002, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-230 to Detroit Edison's Form 10-Q for the quarter ended September 30,2002). (2002 Series B) X X Supplemental Indenture, dated as of April 1, 2005, to the Mortgage and Deed of Trust, dated as of October 1,1924, between Detroit Edison and The Bank of New York Mellon Trust Company, N.A., as successor trustee(Exhibit 4.3 to Detroit Edison's Registration Statement on Form S-4 (File No. 333-123926)). (2005 Series BR) X X Supplemental Indenture, dated as of September 15, 2005, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4.2 to Detroit Edison's Form 8-K dated September 29, 2005). (2005 Series C) X X 137 Supplemental Indenture, dated as of September 30, 2005, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between Detroit Edison and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-248 to Detroit Edison's Form 10-Q for the quarter ended September 30, 2005).(2005 Series E) X X Supplemental Indenture, dated as of May 15, 2006, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-250 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2006). (2006Series A) X X Supplemental Indenture, dated as of December 1, 2007, to the Mortgage and Deed of Trust, dated as of October1, 1924, between The Detroit Edison Company and J.P. Morgan Trust Company, National Association, assuccessor trustee (Exhibit 4.2 to Detroit Edison's Form 8-K dated December 18, 2007). (2007 Series A) X X Supplemental Indenture, dated as of May 1, 2008 to Mortgage and Deed of Trust, dated as of October 1, 1924between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., as successortrustee (Exhibit 4-253 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008 Series ET) X X Supplemental Indenture, dated as of June 1, 2008 to Mortgage and Deed of Trust, dated as of October 1, 1924between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., as successortrustee (Exhibit 4-255 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008 Series G) X X Supplemental Indenture, dated as of July 1, 2008 to Mortgage and Deed of Trust, dated as of October 1, 1924between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., as successortrustee (Exhibit 4-257 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008 Series KT) X X Supplemental Indenture, dated as of August 1, 2010, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-269 to Detroit Edison's Form 10-Q for the quarter ended September 30, 2010).(2010 Series B) X X Supplemental Indenture, dated as of September 1, 2010, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-271 to Detroit Edison's Form 10-Q for the quarter ended September 30,2010). (2010 Series A) X X Supplemental Indenture, dated as of May 15, 2011, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A. assuccessor trustee (Exhibit 4-275 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2011). (2011Series B) X X Supplemental Indenture, dated as of August 1, 2011, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A. assuccessor trustee (Exhibit 4-276 to Detroit Edison's Form 10-Q for the quarter ended September 30, 2011).(2011 Series GT) X X Supplemental Indenture, dated as of August 15, 2011, to the Mortgage and Deed of Trust, dated as of October1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A. assuccessor trustee (Exhibit 4-277 to Detroit Edison's Form 10-Q for the quarter ended September 30, 2011).(2011 Series D, 2011 Series E, 2011 Series F) X X Supplemental Indenture, dated as of September 1, 2011, to the Mortgage and Deed of Trust, dated as ofOctober 1, 1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A. as successor trustee (Exhibit 4-278 to Detroit Edison's Form 10-Q for the quarter ended September 30,2011). (2011 Series H) X X Supplemental Indenture dated as of June 20, 2012, to the Mortgage and Deed of Trust, dated as of October 1,1924, between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., assuccessor trustee (Exhibit 4-279 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2012). (2012Series A and B) X X 138 Supplemental Indenture, dated as of March 15, 2013, to the Mortgage and Deed of Trust dated as of October 1,1924, between DTE Electric Company and The Bank of New York Mellon, N.A., as successor trustee (Exhibit4-280 to DTE Electric Form 10-Q for the quarter ended March 31, 2013). (2013 Series A) X X Supplemental Indenture, dated as of August 1, 2013, to the Mortgage and Deed of Trust, dated as of October 1,1924, between DTE Electric Company and The Bank of New York Mellon Trust Company, N.A., as successortrustee (Exhibit 4-281 to DTE Electric’s Form 10-Q for the quarter ended September 30, 2013). (2013 Series B) X X Supplemental Indenture, dated as of June 1, 2014, to the Mortgage and Deed of Trust dated as of October 1,1924, between DTE Electric Company and The Bank of New York Mellon, N.A., as successor trustee (Exhibit4-282 to DTE Electric's Form 10-Q for the quarter ended June 30, 2014). (2014 Series A and B) X X Supplemental Indenture, dated as of July 1, 2014, to the Mortgage and Deed of Trust dated as of October 1,1924, between DTE Electric Company and The Bank of New York Mellon, N.A., as successor trustee (Exhibit4-283 to DTE Electric's Form 10-Q for the quarter ended June 30, 2014). (2014 Series D and E) X X Supplemental Indenture, dated as of March 1, 2015, between DTE Electric Company and The Bank of NewYork Mellon Trust Company, N.A., as successor trustee. (Exhibit 4-289 to DTE Electric's Form 10-Q for thequarter ended March 31, 2015). (2015 Series A due 2045) X X 4(c) Collateral Trust Indenture, dated as of June 30, 1993, between The Detroit Edison Company and The Bank ofNew York Mellon Trust Company, N.A., as successor trustee (Exhibit 4-152 to Detroit Edison's RegistrationStatement (File No. 33-50325)) and indentures supplemental thereto, dated as of dates indicated below, andfiled as exhibits to the filings set forth below: X X Tenth Supplemental Indenture, dated as of October 23, 2002, to the Collateral Trust Indenture, dated as ofJune 30, 1993, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-231 to Detroit Edison's Form 10-Q for the quarter ended September 30,2002). (6.35% Senior Notes due 2032) X X Sixteenth Supplemental Indenture, dated as of April 1, 2005, to the Collateral Trust Indenture, dated as ofJune 30, 1993, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4.1 to Detroit Edison's Registration Statement on Form S-4 (File No. 333-123926)). (2005 Series BR 5.45% Senior Notes due 2035) X X Eighteenth Supplemental Indenture, dated as of September 15, 2005, to the Collateral Trust Indenture, dated asof June 30, 1993, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4.1 to Detroit Edison's Form 8-K dated September 29, 2005). (2005 Series C5.19% Senior Notes due October 1, 2023) X X Nineteenth Supplemental Indenture, dated as of September 30, 2005, to the Collateral Trust Indenture, dated asof June 30, 1993, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-247 to Detroit Edison's Form 10-Q for the quarter ended September 30,2005). (2005 Series E 5.70% Senior Notes due 2037) X X Twentieth Supplemental Indenture, dated as of May 15, 2006, to the Collateral Trust Indenture dated as ofJune 30, 1993, between The Detroit Edison Company and The Bank of New York Mellon Trust Company,N.A., as successor trustee (Exhibit 4-249 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2006).(2006 Series A Senior Notes due 2036) X X Twenty-second Supplemental Indenture, dated as of December 1, 2007, to the Collateral Trust Indenture, datedas of June 30, 1993, between The Detroit Edison Company and The Bank of New York MellonTrust Company, N.A., as successor trustee (Exhibit 4.1 to Detroit Edison's Form 8-K dated December 18, 2007).(2007 Series A Senior Notes due 2038) X X 139 Twenty-fourth Supplemental Indenture, dated as of May 1, 2008 to the Collateral Trust Indenture, dated as ofJune 30, 1993 between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A.as successor trustee (Exhibit 4-254 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008Series ET Variable Rate Senior Notes due 2029) X X Twenty-fifth Supplemental Indenture, dated as of June 1, 2008 to the Collateral Trust Indenture, dated as ofJune 30, 1993 between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A.,as successor trustee (Exhibit 4-256 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008Series G 5.60% Senior Notes due 2018) X X Twenty-sixth Supplemental Indenture, dated as of July 1, 2008 to the Collateral Trust Indenture, dated as ofJune 30, 1993 between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A.,as successor trustee (Exhibit 4-258 to Detroit Edison's Form 10-Q for the quarter ended June 30, 2008). (2008Series KT Variable Rate Senior Notes due 2020) X X Thirty-first Supplemental Indenture, dated as of August 1, 2010 to the Collateral Trust Indenture, dated as ofJune 1, 1993 between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A.,as successor trustee (Exhibit 4-270 to Detroit Edison's Form 10-Q for the quarter ended September 30, 2010).(2010 Series B 3.45% Senior Notes due 2020) X X Thirty-second Supplemental Indenture, dated as of September 1, 2010, between The Detroit Edison Companyand The Bank of New York Mellon Trust Company, N.A., as successor trustee (Exhibit 4-272 to DetroitEdison's Form 10-Q for the quarter ended September 30, 2010). (2010 Series A 4.89% Senior Notes due 2020) X X 4(d) Indenture dated as of June 1, 1998 between Michigan Consolidated Gas Company and Citibank, N.A., astrustee, related to Senior Debt Securities (Exhibit 4-1 to Michigan Consolidated Gas Company RegistrationStatement on Form S-3 (File No. 333-63370)) and indentures supplemental thereto, dated as of dates indicatedbelow, and filed as exhibits to the filings set forth below: X Fourth Supplemental Indenture dated as of February 15, 2003, to the Indenture dated as of June 1, 1998between Michigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-3 to MichiganConsolidated Gas Company Form 10-Q for the quarter ended March 31, 2003). (5.70% Senior Notes, 2003Series A due 2033) X Fifth Supplemental Indenture dated as of October 1, 2004, to the Indenture dated as of June 1, 1998 betweenMichigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-6 to Michigan Consolidated GasCompany Form 10-Q for the quarter ended September 31, 2004). (5.00% Senior Notes, 2004 Series E due 2019) X Sixth Supplemental Indenture dated as of April 1, 2008, to the Indenture dated as of June 1, 1998 betweenMichigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-241 to DTE Energy’s Form 10-Qfor the quarter ended March 31, 2008). (5.26% Senior Notes, 2008 Series A due 2013, 6.04% Senior Notes,2008 Series B due 2018 and 6.44% Senior Notes, 2008 Series C due 2023) X Seventh Supplemental Indenture, dated as of June 1, 2008 to Indenture dated as of June 1, 1998 betweenMichigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-243 to DTE Energy’s Form 10-Qfor the quarter ended June 30, 2008). (6.78% Senior Notes, 2008 Series F due 2028) X Eighth Supplemental Indenture, dated as of August 1, 2008 to Indenture dated as of June 1, 1998 betweenMichigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-251 to DTE Energy’s Form 10-Qfor the quarter ended September 30, 2008). (5.94% Senior Notes, 2008 Series H due 2015 and 6.36% SeniorNotes, 2008 Series I due 2020) X 4(e) Indenture of Mortgage and Deed of Trust dated as of March 1, 1944 (Exhibit 7-D to Michigan ConsolidatedGas Company Registration Statement No. 2-5252) and indentures supplemental thereto, dated as of datesindicated below, and filed as exhibits to the filings set forth below: X 140 Thirty-seventh Supplemental Indenture dated as of February 15, 2003 to Indenture of Mortgage and Deed ofTrust dated as of March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee(Exhibit 4-4 to Michigan Consolidated Gas Company Form 10-Q for the quarter ended March 31, 2003).(5.70% collateral bonds due 2033) X Thirty-eighth Supplemental Indenture dated as of October 1, 2004 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee(Exhibit 4-5 to Michigan Consolidated Gas Company Form 10-Q for the quarter ended September 31, 2004).(2004 Series E collateral bonds) X Thirty-ninth Supplemental Indenture, dated as of April 1, 2008 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee(Exhibit 4-240 to DTE Energy’s Form 10-Q for the quarter ended March 31, 2008). (2008 Series B and CCollateral Bonds) X Fortieth Supplemental Indenture, dated as of June 1, 2008 to Indenture of Mortgage and Deed of Trust dated asof March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit 4-242 toDTE Energy’s Form 10-Q for the quarter ended June 30, 2008). (2008 Series F Collateral Bonds) X Forty-first Supplemental Indenture, dated as of August 1, 2008 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee(Exhibit 4-250 to DTE Energy’s Form 10-Q for the quarter ended September 30, 2008). (2008 Series ICollateral Bonds) X Forty-third Supplemental Indenture, dated as of December 1, 2012 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between Michigan Consolidated Gas Company and Citibank, N.A., trustee (Exhibit4-279 to DTE Energy’s Form 10-K for the year ended December 31, 2012). (2012 First Mortgage Bonds SeriesD) X Forty-fourth Supplemental Indenture, dated as of December 1, 2013 to Indenture of Mortgage and Deed ofTrust dated March 1, 1944 between DTE Gas Company and Citibank, N.A., (Exhibit 4-283 to DTE Energy’sForm 10-K for the year ended December 31, 2013). (2013 First Mortgage Bonds Series C, D, and E) X Forty-fifth Supplemental Indenture, dated as of December 1, 2014 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between DTE Gas Company and Citibank, N.A. (Exhibit 4-288 to DTE Energy’sForm 10-K for the year ended December 31, 2014). (2014 First Mortgage Bonds Series F) X Forty-sixth Supplemental Indenture, dated as of August 1, 2015 to Indenture of Mortgage and Deed of Trustdated as of March 1, 1944 between DTE Gas Company and Citibank, N.A. (Exhibit 4-292 to DTE Energy’sForm 10-Q for the quarter ended September 30, 2015). (2015 First Mortgage Bonds Series C and D) X 4(f) Registration Rights Agreement, dated as of June 16, 2015, among DTE Energy Company and the InitialPurchasers named therein. (Exhibit 4.2 to DTE Energy Company’s Form 8-K filed on June 17, 2015) X 10(a) Form of Indemnification Agreement between DTE Energy Company and each of Gerard M. Anderson, StevenE. Kurmas, David E. Meador, Gerardo Norcia, Peter B. Oleksiak, Bruce D. Peterson, and non-employeeDirectors (Exhibit 10-1 to DTE Energy’s Form 8-K dated December 6, 2007) X 10(b) Certain arrangements pertaining to the employment of Gerard M. Anderson with The Detroit Edison Company,dated October 6, 1993 (Exhibit 10-48 to The Detroit Edison Company's Form 10-K for the year endedDecember 31, 1993) X X 10(c) Certain arrangements pertaining to the employment of David E. Meador with The Detroit Edison Company,dated January 14, 1997 (Exhibit 10-5 to The Detroit Edison Company’s Form 10-K for the year endedDecember 31, 1996) X X 10(d) Certain arrangements pertaining to the employment of Bruce D. Peterson, dated May 22, 2002 (Exhibit 10-48to DTE Energy’s Form 10-Q for the quarter ended June 30, 2002) X 10(e) DTE Energy Company Annual Incentive Plan (Exhibit 10-44 to DTE Energy’s Form 10-Q for the quarter endedMarch 31, 2001) X 141 10(f) Amended and Restated DTE Energy Company Long-Term Incentive Plan (as Amended February 6, 2014)(Exhibit 10-88 to DTE Energy’s Form 10-Q for the quarter ended March 31, 2014) X 10(g) DTE Energy Company Retirement Plan for Non-Employee Directors' Fees (as Amended and Restated effectiveas of December 31, 1998) (Exhibit 10-31 to DTE Energy’s Form 10-K for the year ended December 31, 1998) X 10(h) The Detroit Edison Company Supplemental Long-Term Disability Plan, dated January 27, 1997 (Exhibit 10-4to The Detroit Edison Company’s Form 10-K for the year ended December 31, 1996) X X 10(i) Description of Executive Life Insurance Plan (Exhibit 10-47 to DTE Energy’s Form 10-Q for the quarter endedJune 30, 2002) X 10(j) DTE Energy Affiliates Nonqualified Plans Master Trust, effective as of August 15, 2013 (Exhibit 10-87 to DTEEnergy’s Form 10-Q for the quarter ended September 30, 2013) X First Amendment to DTE Energy Affiliates Nonqualified Plans Master Trust, effective as of March 15, 2015(Exhibit 10-94 to DTE Energy’s Form 10-Q for the quarter ended March 15, 2015) X 10(k) Form of Director Restricted Stock Agreement (Exhibit 10.1 to DTE Energy’s Form 8-K dated June 23, 2005) X 10(l) Form of Director Restricted Stock Agreement pursuant to the DTE Energy Company Long-Term Incentive Plan(Exhibit 10.1 to DTE Energy’s Form 8-K dated June 29, 2006) X 10(m) DTE Energy Company Executive Supplemental Retirement Plan as Amended and Restated, effective as ofJanuary 1, 2005 (Exhibit 10.75 to DTE Energy’s Form 10-K for the year ended December 31, 2008) X First Amendment to the DTE Energy Company Executive Supplemental Retirement Plan (Amended andRestated Effective January 1, 2005) dated as of December 2, 2009 (Exhibit 10.1 to DTE Energy’s Form 8-Kdated December 8, 2009) X Second Amendment to the DTE Energy Company Executive Supplemental Retirement Plan (Amended andRestated Effective January 1, 2005) dated as of May 5, 2011 (Exhibit 10.80 to DTE Energy’s Form 10-Q for thequarter ended March 31, 2012) X 10(n) DTE Energy Company Supplemental Retirement Plan as Amended and Restated, effective as of January 1,2005 (Exhibit 10.76 to DTE Energy’s Form 10-K for the year ended December 31, 2008) X First Amendment to the DTE Energy Company Supplemental Retirement Plan (Amended and Restated,effective as of January 1, 2005) dated as of March 19, 2013 (Exhibit 10.92 to Form DTE Energy’s 10-K for theyear ended December 31, 2014) X Second Amendment to the DTE Energy Company Supplemental Retirement Plan (Amended and Restated,effective as of January 1, 2005) dated as of November 11, 2014 (Exhibit 10.93 to DTE Energy’s Form 10-K forthe year ended December 31, 2014) X 10(o) DTE Energy Company Supplemental Savings Plan as Amended and Restated, effective as of January 1, 2005(Exhibit 10.77 to DTE Energy’s Form 10-K for the year ended December 31, 2008) X Second Amendment to the DTE Energy Supplemental Savings Plan dated as of November 13, 2012 (Exhibit10.81 to DTE Energy’s Form 10-K for the year ended December 31, 2012) X 10(p) DTE Energy Company Executive Deferred Compensation Plan as Amended and Restated, effective as ofJanuary 1, 2005 (Exhibit 10.78 to DTE Energy’s Form 10-K for the year ended December 31, 2008) X 10(q) DTE Energy Company Plan for Deferring the Payment of Directors' Fees as Amended and Restated, effective asof January 1, 2005 (Exhibit 10.79 to DTE Energy’s Form 10-K for the year ended December 31, 2008) X 142 First Amendment, dated as of June 25, 2015, to the DTE Energy Company Plan for Deferring the Payment ofDirectors’ Fees (as Amended and Restated effective as of January 1, 2005) (Exhibit 10.95 to DTE Energy’sForm 10-Q for the quarter ended June 30, 2015) X 10(r) DTE Energy Company Deferred Stock Compensation Plan for Non-Employee Directors as Amended andRestated, effective January 1, 2005 (Exhibit 10.80 to DTE Energy’s Form 10-K for the year endedDecember 31, 2008) X 10(s) Form of Third Amended and Restated DTE Energy Company Five-Year Credit Agreement, dated as of October21, 2011 and amended and restated as of April 16, 2015, by and among DTE Energy Company, the lendersparty thereto, Citibank, N.A., as Administrative Agent, and Barclays Bank PLC, The Bank of Nova Scotia andJPMorgan Chase Bank, N.A. as Co-Syndication Agents (Exhibit 10.01 to DTE Energy Company's Form 8-Kfiled on April 21, 2015) X 10(t) Form of Third Amended and Restated DTE Gas Company Five-Year Credit Agreement, dated as of October 21,2011 and amended and restated as of April 16, 2015, by and among DTE Gas Company, the lenders partythereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and Barclays Bank PLC, Citibank, N.A., andBank of America, N.A., as Co-Syndication Agents (Exhibit 10.02 to DTE Energy Company's Form 8-K filed onApril 21, 2015) X 10(u) Form of Third Amended and Restated DTE Electric Company Five-Year Credit Agreement, dated as of October21, 2011 and amended and restated as of April 16, 2015, by and among DTE Electric Company, the lendersparty thereto, Barclays Bank PLC, as Administrative Agent, and Citibank N.A., JPMorgan Chase Bank, N.A.,and Wells Fargo Bank, National Association as Co-Syndication Agents (Exhibit 10.01 to DTE EnergyCompany's and DTE Electric Company's Form 8-K filed on April 21, 2015) X X 10(v) Form of Change-in-Control Agreement, dated as of March 3, 2014, between DTE Energy Company and each ofGerard M. Anderson, Steven E. Kurmas, David E. Meador, Peter B. Oleksiak, Gerardo Norcia, Bruce D. Petersonand Larry E. Steward (Exhibit 10.1 to DTE Energy Company’s Form 8-K filed on March 3, 2014) X 10(w) Form of Change-In-Control Severance Agreement dated as of July 1, 2014, between DTE Energy Company andDonna M. England (Exhibit 10-90 to DTE Energy’s Form 10-Q for the quarter ended June 30, 2014) X 10(x) Form of Change-In-Control Severance Agreement dated as of July 1, 2014, between DTE Energy Company andeach of Lisa A. Muschong, David Ruud and Mark W. Stiers (Exhibit 10-91 to DTE Energy’s Form 10-Q for thequarter ended June 30, 2014) X 99(a) Amendment and Restatement of Master Trust Agreement for the DTE Energy Company Master Plan Trustbetween DTE Energy Corporate Services, LLC and DTE Energy Investment Committee and JP Morgan ChaseBank, N.A., dated as of October 15, 2010 (Exhibit 99-54 to DTE Energy’s Form 10-K for the year endedDecember 31, 2010) X First Amendment to the Amendment and Restatement of Master Trust Agreement for the DTE EnergyCompany Master Plan Trust between DTE Energy Corporate Services, LLC and DTE Energy InvestmentCommittee and JP Morgan Chase Bank, N.A., dated as of March 13, 2013 (Exhibit 99-55 to DTE Energy’sForm 10-K for the year end December 13, 2013) X Second Amendment to the Amendment and Restatement of Master Trust Agreement for the DTE EnergyCompany Master Plan Trust between DTE Energy Corporate Services, LLC and DTE Energy InvestmentCommittee and JP Morgan Chase Bank, N.A., dated as of September 30, 2013 (Exhibit 99-56 to DTE Energy’sForm 10-K for the year ended December 31, 2013) X Third Amendment to the Amendment and Restatement of Master Trust Agreement for the DTE EnergyCompany Master Plan Trust between DTE Energy Corporate Services, LLC and DTE Energy InvestmentCommittee and JP Morgan Chase Bank, N.A., dated as of October 3, 2014 (Exhibit 99-57 to DTE Energy’sForm 10-Q for the quarter ended September 30, 2014) X 143 Fourth Amendment to the Amendment and Restatement of Master Trust Agreement for the DTE EnergyCompany Master Plan Trust between DTE Energy Corporate Services, LLC and DTE Energy InvestmentCommittee and JP Morgan Chase Bank, N.A. dated as of November 28, 2014 (Exhibit 99-58 to DTE Energy’sForm 10-Q for the quarter ended September 30, 2015) X Fifth Amendment to the Amendment and Restatement of Master Trust Agreement for the DTE EnergyCompany Master Plan Trust between DTE Energy Corporate Services, LLC and DTE Energy InvestmentCommittee and Great-West Trust Company, LLC dated as of August 7, 2015 (Exhibit 99-59 to DTE Energy’sForm 10-Q for the quarter ended September 30, 2015) X 144DTE Energy CompanySchedule II — Valuation and Qualifying Accounts Year Ending December 31, 2015 2014 2013 (In millions)Allowance for Doubtful Accounts (shown as deduction from Accounts receivable in DTE Energy'sConsolidated Statements of Financial Position) Balance at Beginning of Period$54 $55 $62Additions: Charged to costs and expenses93 95 94Charged to other accounts (a)14 20 23Deductions (b)(112) (116) (124)Balance at End of Period$49 $54 $55_______________________________________(a)Collection of accounts previously written off.(b)Uncollectible accounts written off.DTE Electric CompanySchedule II — Valuation and Qualifying Accounts Year Ending December 31, 2015 2014 2013 (In millions)Allowance for Doubtful Accounts (shown as deduction from Accounts receivable in DTE Electric'sConsolidated Statements of Financial Position) Balance at Beginning of Period$29 $28 $35Additions: Charged to costs and expenses51 50 52Charged to other accounts (a)6 10 11Deductions (b)(58) (59) (70)Balance at End of Period$28 $29 $28_______________________________________(a)Collection of accounts previously written off.(b)Uncollectible accounts written off.145SignaturesPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, DTE Energy Company has duly caused this report to besigned on its behalf by the undersigned, thereunto duly authorized. DTE ENERGY COMPANY (Registrant) By: /S/ GERARD M. ANDERSON Gerard M. AndersonChairman of the Board andChief Executive OfficerDate: February 10, 2016Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of DTEEnergy Company and in the capacities and on the date indicated.By:/S/ GERARD M. ANDERSON By:/S/ PETER B. OLEKSIAK Gerard M. AndersonChairman of the Board,Chief Executive Officer and Director(Principal Executive Officer) Peter B. OleksiakSenior Vice President and Chief Financial Officer (Principal Financial Officer) By:/S/ DONNA M. ENGLAND By:/S/ JAMES B. NICHOLSON Donna M. EnglandChief Accounting Officer(Principal Accounting Officer) James B. Nicholson, Director By:/S/ DAVID A. BRANDON By:/S/ CHARLES W. PRYOR, JR. David A. Brandon, Director Charles W. Pryor, Jr., Director By:/S/ W. FRANK FOUNTAIN, JR. By:/S/ JOSUE ROBLES, JR. W. Frank Fountain, Jr., Director Josue Robles, Jr., Director By:/S/ CHARLES G. MCCLURE JR. By:/S/ RUTH G. SHAW Charles G. McClure Jr., Director Ruth G. Shaw, Director By:/S/ GAIL J. MCGOVERN By:/S/ DAVID A. THOMAS Gail J. McGovern, Director David A. Thomas, Director By:/S/ MARK A. MURRAY By:/S/ JAMES H. VANDENBERGHE Mark A. Murray, Director James H. Vandenberghe, DirectorDate: February 10, 2016146SignaturesPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, DTE Electric Company has duly caused this report to besigned on its behalf by the undersigned, thereunto duly authorized. DTE ELECTRIC COMPANY (Registrant) By:/S/ GERARD M. ANDERSON Gerard M. AndersonChairman of the Board andChief Executive OfficerDate: February 10, 2016Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of DTEElectric Company and in the capacities and on the date indicated.By:/S/ GERARD M. ANDERSON By:/S/ PETER B. OLEKSIAK Gerard M. AndersonChairman of the Board,Chief Executive Officer and Director(Principal Executive Officer) Peter B. OleksiakSenior Vice President and Chief Financial Officer (Principal Financial Officer) By:/S/ DONNA M. ENGLAND By:/S/ LISA A. MUSCHONG Donna M. EnglandChief Accounting Officer(Principal Accounting Officer) Lisa A. Muschong, Director By:/S/ DAVID E. MEADOR By:/S/ BRUCE D. PETERSON David E. Meador, Director Bruce D. Peterson, DirectorDate: February 10, 2016Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Securities Exchange Act of 1934 by Registrants Which HaveNot Registered Securities Pursuant to Section 12 of the Securities Exchange Act of 1934.No annual report, proxy statement, form of proxy, or other proxy soliciting material has been sent to security holders of DTE Electric Company during theperiod covered by this Annual Report on Form 10-K for the fiscal year ended December 31, 2015.147Exhibit 10.96Third Amendmentto theDTE Energy Company Executive Supplemental Retirement Plan(Amended and Restated Effective January 1, 2005)RecitalsA. DTE Energy Company (the “Company”) adopted the DTE Energy Company Executive Supplemental Retirement Plan(Amended and Restated Effective January 1, 2005) (the “Plan”) to enable the Company to attract and retain executives.B. The Organization and Compensation Committee (the “Committee”) of the Company’s Board of Directors is authorized to amendthe Plan.C. By a resolution properly adopted on February 3, 2016, the Committee amends the Plan to reflect changes in names of entitiesaffiliated with the Company and to clarify ambiguous Plan provisions governing participants’ elections to change the form ofdistribution from the Plan so the provisions reflect the actual administration of the Plan.Plan AmendmentThe DTE Energy Company Executive Supplemental Retirement Plan (Amended and Restated Effective January 1, 2005) is amendedas follows:1. Effective January 1, 2005, Section 6.04(b)(2)(B)(i) is replaced with the following:(i) The Participant’s election is filed with the Committee at least 12 months before the earliest date onwhich the distribution of the Post-2004 Benefit would begin under the Participant’s then-current distribution election;(I) For purposes of this Section 6.04(b)(2)(B)(i), the date the Participant terminatesemployment other than because of death is treated as “the earliest date on which distribution of the Post-2004 Benefit wouldbegin” if the Participant has not filed a previous election under this Section 6.04(b)(2)(B) to change the form of distribution ofthe Post-2004 Benefit. 2. Effective January 1, 2005, Paragraph (b)(2)(A) under “Payment Options – Post-2004 Benefit” in Appendix A, is replaced with thefollowing:(A) The election is filed with the Committee at least 12 months before the earliest date on which thedistribution of the Post-2004 Benefit would begin under the then-current distribution election;(I) For purposes of this Paragraph (b)(2)(A), the date the eligible employee terminatesemployment other than because of death is treated as “the earliest date on which distribution of the Post-2004 Benefit wouldbegin” if the eligible employee has not filed a previous election under this Paragraph (b)(2) to change the form of distribution ofthe Post-2004 Benefit.3. Effective January 1, 2013, the following references in Appendix A to “The Detroit Edison Company” are replaced with “DTEElectric Company”:a. Titleb. Preamble (two occurrences)c. Definition of “Company” (three occurrences)d. Definition of “Certain Management or Highly Compensated Employees”e. Paragraph 1(C) of “Eligibility”f. Sentence preceding “Schedule of Payments”g. “Beneficiary Designation” paragraphh. Paragraph 3 of Exhibit Ai. Title of Addendum I4. Effective January 1, 2013, the definition of “Retirement Plan” is amended to read as follows:Retirement Plan. The DTE Energy Company Retirement Plan. The Retirement Plan is a defined benefit pension plansponsored by DTE Energy Corporate Services, LLC for eligible employees. 5. Effective January 1, 2013, the third paragraph of “Non-Secured Promise; Amendments” in Appendix A is amended by replacing“The Detroit Edison Company” with “DTE Energy Company.”6. Effective as of the date this Third Amendment is adopted, Section 6.01(a) is amended to read as follows:(a) The Committee shall direct the Company to distribute each Participant’s Vested Account in accordance with theParticipant’s distribution election unless the Plan provides otherwise. The distribution election shall provide for payment ineither (i) annual installments over a period not less than two years and not more than 15 years, in one-year increments, or (ii) alump sum distribution. If no distribution election is on file with the Committee, the Participant’s Vested Account shall bedistributed in a single lump sum.7. Effective January 1, 2016, Section 2.04 is amended to read as follows:2.04 “Annual Cash Bonus” means the annual incentive compensation payable in the Plan Year under the DTEEnergy Company Annual Incentive Plan, the DTE Energy Executive Performance Plan, any similar annual incentive plan ofan Affiliated Company, or any successor plan thereto.8. Effective as of the date this Third Amendment is adopted, the first two sentences of Section 10.03 are amended to read as follows:10.03. Right to Accelerate. The Committee in its sole discretion may accelerate all Pre-2005 Benefits upontermination of the Plan, and pay such benefits in a single lump sum. The Committee may accelerate payment of Post-2004Benefits upon termination of the Plan only as permitted by Code Section 409A and the related Treasury Regulations.9. Effective as of the date this Third Amendment is adopted, Section 12.07 is amended to read as follows:12.07. Successors. In the event of any consolidation, merger, acquisition or reorganization of the Company, theobligations of the Company under this Plan shall continue and be binding upon the Company and its respective successors.10. Effective as of the date this Third Amendment is adopted, Section 14.05 is amended to read as follows:14.05. Liability. Upon and at all times after a Change in Control, the Company shall be liable for all obligations underthe Plan to each employee covered by the Plan, regardless of the corporation by which such employee is employed.11. Effective as of the date this Third Amendment is adopted, in Appendix A, the third sentence of the definition of “Company” inthe “Definition” section is amended to read as follows:Where the context refers to any liability for the payment of any benefit to an eligible participant or beneficiary thereof, the term"Company" means DTE Energy Company.12. Effective as of the date this Third Amendment is adopted, in Appendix A, the last sentence in the “Payment Calculation” section,immediately preceding the “Schedule of Payments” section, is amended to read as follows:Each payment under this Plan will be reduced by any federal, state, or local taxes that DTE Energy Companydetermines should be withheld from the payment.13. Effective as of the date this Third Amendment is adopted, in Appendix A, the first three paragraphs of the “Non-SecuredPromise; Amendments” section are revised to read as follows:Non‑Secured Promise; AmendmentsEligible participants have the status of general unsecured creditors of DTE Energy Company. This Plan constitutes apromise by DTE Energy Company to make benefit payments in the future. DTE Energy Company intends that this Plan beunfunded for tax purposes and for purposes of Title I of ERISA. DTE Energy Company intends that this Plan be maintainedprimarily for a select group of management or highly compensated employees.Payments as they become due under the Plan to or in respect of a Company's former employees shall be paid by DTEEnergy Company from its general assets; provided, however, that no provision of the Plan shall preclude DTE EnergyCompany from segregating assets which are intended to be a source for payment of benefits under the Plan.The Organization and Compensation Committee of the DTE Energy Company Board of Directors reserves the right toamend, modify, or discontinue this Plan at any time; provided, however, that no such amendment, modification, or terminationshall adversely affect the rights of participants or beneficiaries who are receiving or are immediately eligible to receive benefitsfrom this Plan at the time of such amendment, modification, or termination, without such person's prior written consent.DTE Energy Company has caused this Third Amendment to be executed on the 3rd day of February, 2016.DTE ENERGY COMPANY/S/ Larry E. Steward________________________________Larry E. StewardSenior Vice President, Human ResourcesThird Amendment to January 1, 2005 Amended and Restated ESRP – Page 1 of 1Exhibit 10.97First Amendmentto theDTE Energy Company Executive Performance PlanRecitalsA. On May 7, 2015, the shareholders of DTE Energy Company (the “Company”) approved the DTE Energy Company ExecutivePerformance Plan (the “Plan”), to enable the Company to attract and retain executives and management personnel.B. Section 9.1 of the Plan authorizes the Organization and Compensation Committee of the Company’s Board of Directors (the“Committee”) to amend the Plan, subject to approval by the shareholders of the Company when required by applicable law.C. By a resolution properly adopted on February 4, 2016, the Committee amends the Plan to limit annual maximum award payableto any individual to a specified dollar amount.Plan AmendmentEffective for Plan Years after 2015, the DTE Energy Company Executive Performance Plan is amended by replacing Section 5.3 withthe following:5.3 Individual Maximum Awards. For any given Plan Year, no one Participant is permitted to receive an Award ofmore than the lesser of:(a) 50% of the Award Pool; or(b) $10,000,000.DTE Energy Company has caused this First Amendment to be executed on the 3rd day of February, 2016.DTE Energy Company/S/ Larry E. Steward____________________________________Larry E. StewardSenior Vice President, Human ResourcesFirst Amendment to DTE Energy Company Executive Performance Plan – Page 1 of 1Exhibit 10.98First Amendmentto theDTE Energy CompanyExecutive Deferred Compensation Plan(Amended and Restated Effective January 1, 2005)RecitalsA. DTE Energy Company (the “Company”) adopted the DTE Energy Company Executive Deferred Compensation Plan (Amendedand Restated Effective January 1, 2005) (the “Plan”) to enable the Company to attract and retain executives.B. The Company’s Board of Directors (the “Board”) is authorized to amend the Plan.C. By a resolution properly adopted on February 4, 2016, the Board amends the Plan to clarify ambiguous Plan provisions governingparticipants’ elections to change the form of distribution from the Plan so the provisions reflect the actual administration of the Plan andto delegate the right to amend the Plan to the Organization and Compensation Committee of the Board.Plan AmendmentThe DTE Energy Company Executive Deferred Compensation Plan is amended as follows:1. Effective January 1, 2005, Section 6.03(b)(2)(A) is replaced with the following:(A) The Participant’s election is filed with the Committee at least 12 months before the earliest date onwhich the distribution of the Post-2004 Subaccount would begin under the Participant’s then-current distribution election;(i) For purposes of this Section 6.03(b)(2)(A), the date the Participant’s employment terminatesfor any reason other than death is treated as “the earliest date on which distribution of the Post-2004 Subaccount would begin”with respect to any Deferral Period ending on the Participant’s termination of employment if the Participant has not filed aprevious election under this Section 6.03(b)(2)(A) to change the form of distribution of the Post-2004 Subaccount.2. Effective as of the date this First Amendment is adopted, the first sentence of Section 10.03 is amended to read as follows:10.03. Right to Accelerate. The Committee in its sole discretion may accelerate all vested benefits upon termination ofthe Plan, and pay such benefits in a single lump sum, but only to the extent permitted by Code section 409A and the relatedTreasury Regulations with respect to Post-2004 Subaccounts.3. Effective as of the date this First Amendment is adopted, Section 11.01 is amended to read as follows:11.01. Right to Amend or Terminate. The Plan may be amended, modified or terminated by the Committee at anytime. Such amendment, modification or termination may modify or eliminate any benefit hereunder except that suchamendment, modification or termination shall not affect the rights of Participants or Beneficiaries to the vested portion of aParticipant’s Account as of the date of such amendment or termination.11.02 - different standards for suspending distributions apply under Code §409A to Post-2004 Subaccounts4. Effective as of the date this First Amendment is adopted, Section 11.02 is amended to read as follows:11.02. Right to Suspend. If the Committee determines that payments under the Plan would have a material adverseaffect on the Company’s ability to carry on its business, the Committee may suspend payments of Pre-2005 Subaccountstemporarily for such time as in its sole discretion it deems advisable, but in no event for a period in excess of one year. If theCommittee determines that payments under the Plan will jeopardize the Company’s ability to continue as a going concern, theCommittee may suspend payments of Post-2004 Subaccounts until the first taxable year when payment will not have thateffect. The Committee shall direct the Company to pay such suspended payments in a lump sum immediately upon theexpiration of the period of suspension.11.03 - different standards for Plan termination distributions apply under Code §409A to Post-2004 Subaccounts5. Effective as of the date this First Amendment is adopted, the second sentence of Section 12.12 is amended to read as follows:Unless otherwise authorized by the Committee or its delegate, no amendment or modification to this Plan shall be effective untilreduced to writing and adopted pursuant to Section 11.01.6. Effective as of the date this First Amendment is adopted, Section 12.07 is amended to read as follows:12.07. Successors. In the event of any consolidation, merger, acquisition or reorganization of the Company, theobligations of the Company under this Plan shall continue and be binding upon the Company and its respective successors.7. Effective as of the date this First Amendment is adopted, Section 14.04 is amended to read as follows:14.04. Liability. Upon and at all times after a Change in Control, the Company shall be liable for all obligations underthe Plan to each employee covered by the Plan, regardless of the corporation by which such employee is employed.DTE Energy Company has caused this First Amendment to be executed on the 4th day of February, 2016.DTE Energy Company/S/ Larry E. Steward__________________________________________Larry E. StewardSenior Vice President, Human ResourcesFirst Amendment to DTE Executive Deferred Compensation Plan Restated Effective January 1, 2005 – Page 1 of 1Exhibit 10.99First Amendmentto theDTE Energy Company Long-Term Incentive Planas Amended and Restated Effective May 1, 2014RecitalsA. On May 1, 2014, the shareholders of DTE Energy Company (the “Company”) approved the DTE Energy Company Long-TermIncentive Plan as Amended and Restated Effective May 1, 2014 (the “LTIP”), to enable the Company to attract and retain executivesand management personnel.B. Article 14.01 of the LTIP authorizes the Company’s Board of Directors (the “Board”) to amend the LTIP when the amendment isnon-material and does not require shareholder approval.C. By a resolution properly adopted on February 4, 2016, the Board amends the LTIP to impose additional requirements for vestingand payment of Awards following a Change in Control under specified circumstances.Plan AmendmentEffective immediately, the DTE Energy Company Long-Term Incentive Plan as Amended and Restated Effective May 1, 2014 isamended as follows:1. Article 12.01 is amended to read as follows:12.01 Effect on Awards(a) Subject to Section 13.09, the following provisions govern the treatment of an outstanding award under this Planupon a Change in Control if the award is not continued under Section 12.02(a) and is not substituted under Section12.02(b):(i) OptionsEach outstanding Option is fully exercisable (in whole or in part at the discretion of the holder) on and after aControl Change Date.(ii) Stock AwardsEach outstanding Stock Award is transferable and non-forfeitable on and after a Control Change Date withoutregard to whether any Performance Objectives or other conditions to which the award is subject have been met.(iii) Performance SharesEach outstanding Performance Share award is earned as of a Control Change Date and will be settled as soonthereafter as practicable.(iv) Performance UnitsAll outstanding Performance Units are earned as of a Control Change Date and will be settled as soon thereafteras possible.(b) Subject to Section 13.09, the following provisions govern the treatment of an outstanding award under this Planupon a Change in Control if the award is continued under Section 12.02(a) or substituted under Section 12.02(b):(i) OptionsEach outstanding Option is fully exercisable (in whole or in part at the discretion of the holder) on and after theearlier of:(A) The date specified in the Award Agreement; or(B) The Participant’s Change in Control Termination.(ii) Stock AwardsEach outstanding Stock Award is transferable and non-forfeitable on and after the earlier of:(A) The date specified in the Award Agreement; or(B) The Participant’s Change in Control Termination without regard to whether any PerformanceObjectives or other conditions to which the award is subject have been met.(iii) Performance SharesEach outstanding Performance Share award is earned as of the earlier of:(A) The date specified in the Award Agreement; or(B) The Participant’s Change in Control Termination, and will be settled as soon thereafter aspracticable.(iv) Performance UnitsEach outstanding Performance Unit Award is earned as of the earlier of:(A) The date specified in the Award Agreement; or(B) The Participant’s Change in Control Termination, and will be settled as soon thereafter aspracticable.(c) DefinitionsFor purposes of this Article XII:(i) Change in Control Termination. A Participant has a Change in Control Termination if:(A) The Participant’s employment is terminated by the Company or a Subsidiary during the SeverancePeriod other than:(I) because of the Participant’s death;(II) because the Participant became permanently disabled within the meaning of, and beganreceiving disability benefits under, the Company or Subsidiary sponsored long-term disabilityplan in effect for, or applicable to, the Participant immediately prior to the Change in Control;(III) under any mandatory retirement policy of the Company or a Subsidiary; or(IV) for Cause;or(B) The Participant terminates his or her employment during the Severance Period for Good Reason,regardless of whether any other reason, other than Cause, for the Participant’s termination exists or hasoccurred, including other employment.(ii) Severance Period. A Severance Period resulting from a Change in Control is the period beginning on thedate the Change in Control occurs and ending on the earliest of:(A)The second anniversary of the Change in Control;(B)The Participant’s 65th birthday, if the Participant is subject to the DTE Energy MandatoryRetirement Policy; or(C)The Participant’s death.(iii) Good Reason. A Participant terminates employment for Good Reason if the Participant terminates his orher employment during the Severance Period following the occurrence of any of the following events during theSeverance Period:(A) Failure to elect or reelect to the office, or otherwise maintain the Participant in a position within thesame or higher Executive Grouping Level (as in existence prior to the Change in Control) with theCompany and/or a Subsidiary, as applicable, which the Participant held immediately prior to the Changein Control, or the removal of the Participant as Chairman of the Company (or any successor to theCompany) if the Participant was Chairman of the Company immediately prior to the Change in Control;(B) A significant adverse change in the nature or scope of the authorities, powers, functions,responsibilities or duties attached to the position with the Company and its Subsidiaries as compared toother executives in the same Executive Grouping Level within the Company or the Subsidiary whichthe Participant held immediately prior to the Change in Control;(C) A reduction in the Participant’s Base Pay or the opportunity to earn Incentive Pay from theCompany, its Subsidiaries or the failure to pay the Participant Base Pay or Incentive Pay earned whendue;(D) The termination or denial of the Participant’s rights to Employee Benefits or a material reductionin the aggregate scope or value of Employee Benefits (unless, in the case of Welfare Benefits or PensionBenefits the termination, denial or reduction applies to all similarly situated employees of the Companyand its Subsidiaries), any of which is not remedied by the Company within 10 calendar days after theCompany receives written notice from the Participant of the change, reduction or termination;(E) Without the Participant’s prior written consent, the Company:(I) Requires the Participant to change the Participant’s principal location of work to anylocation that is in excess of 300 miles from the location immediately prior to the Change inControl; or(II) Requires the Participant to travel away from the Participant’s office in the course ofdischarging the Participant’s responsibilities or duties at least 40% more (in terms of aggregatedays in any calendar year or in any calendar quarter when annualized for purposes ofcomparison to any prior year) than the average number of travel days per calendar year that wasrequired of the Participant in the three full calendar years immediately prior to the Change inControl;(iv) Cause. The Participant’s employment will be considered terminated for Cause if prior to termination of theParticipant’s employment, the Board reasonably determines, based on a preponderance of the evidencereasonably available to the Board as of the date the Board adopts the resolution described below, that theParticipant committed or engaged in:(A) an intentional act of fraud, embezzlement or theft at a level that constitutes a felony in connectionwith the Participant’s duties or in the course of the Participant’s employment with the Company or aSubsidiary, whether or not the Participant is convicted or pleads guilty or nolo contender (no contest) toany related criminal charges;(B) Intentional wrongful damage to property of the Company or a Subsidiary;(C) Intentional wrongful disclosure of secret processes or confidential information of the Company ora Subsidiary;(D) Intentional wrongful engagement in any Competitive Activity;(E) Willful and continued failure by the Participant to substantially perform the Participant’s dutieswith the Company that is not cured within 30 days after the Board delivers to the Participant a writtendemand for substantial performance specifically identifying the Participant’s failure to perform; or(F) Other intentional activity, including but not limited to a breach of the Participant’s fiduciary dutieswith respect to the Company, a Subsidiary, or any welfare plan or pension plan sponsored by theCompany or a Subsidiary;which, in the reasonable judgment of the Board and based on a preponderance of the evidence available to theBoard is significantly detrimental to the reputation, goodwill or business of the Company or significantlydisrupts the workplace environment or operation of the Company’s business or administrative activities.For purposes of this Article XII, no act or failure to act on the part of a Participant will be deemed “intentional”if it was due primarily to an error in the Participant’s judgment or the Participant’s negligence. An act will bedeemed “intentional” only if done or omitted to be done by the Participant not in good faith and withoutreasonable belief that the Participant’s action or omission was in the best interest of the Company.For purposes of this Article XII, the Participant has not been terminated for Cause unless and until:(G) A meeting of the Board is called and held for the purpose of determining if the Participant is to beterminated for Cause; and(H) The Participant is given reasonable notice of the meeting and an opportunity to be heard before theBoard, with Participant’s counsel if the Participant so chooses; and(I) At that meeting the Board finds, in the good faith opinion of the Board, that the Participant hascommitted an act entitling the Board to terminate the Participant’s employment for Cause; and(J) The Participant has been provided a copy of the resolution duly adopted at that meeting by theaffirmative vote of not less than three-quarters of the Board then in office and specifying in detail theparticulars of the Board’s finding.The Participant and the Participant’s beneficiaries retain the right to contest the validity or propriety of theBoard’s determination that the Participant’s employment was terminated for Cause.(v) Competitive Activity. Competitive Activity is a Participant’s direct employment, without the writtenconsent of the Board (or any Committee of the Board to which the Board delegates its authority in writing), inany business or enterprise (including the Participant’s own business or enterprise) if:(A) The business or enterprise engages in substantial and direct competition with the Company or anyof its Subsidiaries in any state in which the Company or Subsidiary was engaged in business or activelynegotiating to enter business as of the Participant’s Change in Control Termination; and(B) The business’s or enterprise’s sales of any product or service competitive with any product orservice of the Company or any of its Subsidiaries amounted to 10% of the business’s or enterprise’s netsales for its most recently completed fiscal year; and(C) the Company’s or Subsidiary’s net sales of the competitive product or service amounted to 10% ofthe Company’s or Subsidiary’s net sales for its most recently completed fiscal year; and(D) The Board determines the Participant’s employment in the business or enterprise is detrimental tothe Company or any of its Subsidiaries.“Competitive Activity” does not include the mere ownership of not more than 10% of the total combined votingpower or aggregate value of all classes of stock or other securities in the enterprise and the Participant’s exerciseof rights resulting from ownership of the stock.The Board (or its delegate) has sole discretion and authority to determine if a Participant is engaging inCompetitive Activity for purposes of this Article XII. It is the Participant’s responsibility to provide informationsufficient for the Board (or its delegate) to make these determinations.(vi) Incentive Pay. Incentive Pay is the aggregate annual payments of cash or equity compensation(determined without regard to any deferral election) and annual vesting of equity compensation, in addition toBase Pay, under any bonus, incentive, profit-sharing, performance, discretionary pay or similar agreement,policy, plan, program or arrangement (whether or not funded) of the Company or a Subsidiary, or anysuccessor, providing economic value on an aggregate basis at least as favorable to the Participant, in terms of theamount of benefits, levels of coverage and performance measures and levels of required performance, as thebenefits payable prior to the Change in Control.(vii) Base Pay. Base Pay is the Participant’s annual base salary (prior to any pre-tax deferrals made under anyemployee benefit plans of the Company) in effect immediately prior to the Change in Control or immediatelyprior to the Participant’s Change in Control Termination, if higher.2. Article 12.02 is amended to read as follows:12.02 Conversion of Outstanding Awards(a) Continuation of PlanIf the Change in Control is described in Section 2.06(a) or (b) and the Surviving Entity or Acquiring Entity is acorporation with common stock publicly traded on an established U.S. stock exchange, the Board may enter into anagreement with the Surviving Entity or Acquiring Entity for the Surviving Entity or Acquiring Entity to adopt andmaintain the Plan and to adopt and maintain all outstanding Award Agreements under the existing terms of theAgreement. Equitable adjustments will be made to all outstanding Award Agreements to reflect the Fair Market Valueof the Common Stock as of the day before the Control Change Date and to substitute Common Stock subject toAgreements with comparable common stock of the Surviving Entity or Acquiring Entity.(b) Substitution of PlanIf the Change in Control is described in Section 2.06(a) or (b) and the Surviving Entity or Acquiring Entity is acorporation with common stock publicly traded on an established U.S. stock exchange, the Board may enter into anagreement with the Surviving Entity or Acquiring Entity for the Surviving Entity or Acquiring Entity to adopt acomparable equity compensation plan and grant new Awards under that plan in substitution for outstanding Awardsunder this Plan. The fair market value of the common stock of the Surviving Entity or Acquiring Entity subject to thesubstituted Awards will not be less than the Fair Market Value of the Common Stock subject to outstanding Awardsunder this Plan as of the day before the Control Change Date.3. Article 12.03 is amended to read as follows:12.03 Settlement of Awards(a) Options(i) If outstanding Options under this Plan are not continued under Section 12.02(a) and are not substitutedunder Section 12.02(b) and the Options become exercisable under Section 12.01(a)(i), each Participant with anoutstanding Option will be paid, for each share of Common Stock for which the Participant holds anoutstanding Option, the excess, if any, of the Fair Market Value of the Common Stock as of the day before theControl Change Date over the exercise price of the Option.(ii) If outstanding Options under this Plan are continued under Section 12.02(a) or substituted under Section12.02(b), and the Options become exercisable under Section 12.01(b)(i)(B), the Participant will be paid, foreach share of substituted common stock for which the Participant holds an outstanding Option, the excess, ifany, of the Fair Market Value of the substituted common stock as of the day before the Participant’s Change inControl Termination over the exercise price of the Option.(b) Stock Awards(i) If outstanding Stock Awards under this Plan are not continued under Section 12.02(a) and are notsubstituted under Section 12.02(b) and the Stock Awards become transferable and non-forfeitable under Section12.01(a)(ii), each Participant with a Stock Award will be paid, for each share of Common Stock subject to anoutstanding Stock Award, the Fair Market Value of the Common Stock as of the day before the ControlChange Date.(ii) If outstanding Stock Awards under this Plan are continued under Section 12.02(a) or substituted underSection 12.02(b), and the Stock Awards become transferable and non-forfeitable under Section 12.01(b)(ii)(B),the Participant will be paid, for each share of substituted common stock subject to an outstanding Stock Award,the Fair Market Value of the substituted common stock as of the day before the Participant’s Change in ControlTermination.(c) Performance Shares(i) If outstanding Performance Share Awards under this Plan are not continued under Section 12.02(a) and arenot substituted under Section 12.02(b) and the Performance Share Awards become earned under Section12.01(a)(iii), an award is based only on criteria other than Performance Objectives (such as continued service) isearned in full. The amount of a Performance Share Award based on Performance Objectives earned is thegreater of the amount that would have been payable on attainment of:(A) target levels of performance; or(B) actual levels of performance,using performance through the Control Change Date for purposes of determining actual levels of performance.Performance Shares will be settled in cash based on the Fair Market Value of the Common Stock as of the daybefore the Control Change Date.(ii) If outstanding Performance Share Awards under this Plan are continued under Section 12.02(a) orsubstituted under Section 12.02(b) and the Performance Share Awards become earned under Section 12.01(b)(iii)(B), an award is based only on criteria other than Performance Objectives (such as continued service) isearned in full. The amount of a Performance Share Award based on Performance Objectives earned is thegreater of the amount that would have been payable on attainment of:(A) target levels of performance; or(B) actual levels of performance,using performance through the date of the Participant’s Change in Control Termination for purposes ofdetermining actual levels of performance. Performance Shares will be settled in cash based on the Fair MarketValue of the substituted common stock as of the day before the Participant’s Change in Control Termination.(d) Performance Units(i) If outstanding Performance Unit Awards under this Plan are not continued under Section 12.02(a) and arenot substituted under Section 12.02(b) and the Performance Unit Awards become earned under Section12.01(a)(iv), the amount earned with respect to each award of Performance Units is the greater of the amountthat would have been payable on attainment of:(A) target levels of performance; or(B) actual levels of performance,using performance through the Control Change Date for purposes of determining actual levels of performance.Performance Units will be settled in cash based on the Fair Market Value of the Common Stock as of the daybefore the Control Change Date.(ii) If outstanding Performance Unit Awards under this Plan are continued under Section 12.02(a) orsubstituted under Section 12.02(b) and the Performance Unit Awards become earned under Section 12.01(b)(iv)(B), the amount earned with respect to each award of Performance Units is the greater of the amount that wouldhave been payable on attainment of:(A) target levels of performance; or(B) actual levels of performance,using performance through the date of the Participant’s Change in Control Termination for purposes ofdetermining actual levels of performance. Performance Units will be settled in cash based on the Fair MarketValue of the substituted common stock as of the day before the Participant’s Change in Control Termination.DTE Energy Company has caused this First Amendment to be executed on the 4th day of February, 2016.DTE Energy Company/S/ Larry E. Steward____________________________________Larry E. StewardSenior Vice President, Human ResourcesFirst Amendment to DTE Energy Company Long-Term Incentive Plan Restated Effective May 1, 2014 - Page 1 of 1Exhibit 12.65DTE Energy CompanyComputation of Ratio of Earnings to Fixed Charges Year Ended December 31, 2015 2014 2013 2012 2011 (In millions)Earnings: Pretax earnings$950 $1,275 $922 $960 $991Adjustments(3) (15) (26) 71 4Fixed charges473 453 461 463 520Net earnings$1,420 $1,713 $1,357 $1,494 $1,515 Fixed Charges: Interest expense$446 $424 $432 $441 $490Adjustments27 29 29 22 30Fixed charges$473 $453 $461 $463 $520 Ratio of earnings to fixed charges3.00 3.78 2.94 3.23 2.91Exhibit 12.66DTE Electric CompanyComputation of Ratio of Earnings to Fixed Charges Year Ended December 31, 2015 2014 2013 2012 2011 (In millions)Earnings: Pretax earnings$836 $830 $741 $768 $704Adjustments(11) (11) (7) (7) (2)Fixed charges277 267 281 286 310Net earnings$1,102 $1,086 $1,015 $1,047 $1,012 Fixed Charges: Interest expense$255 $247 $264 $269 $287Adjustments22 20 17 17 23Fixed charges$277 $267 $281 $286 $310 Ratio of earnings to fixed charges3.98 4.07 3.61 3.66 3.26Exhibit 21.11SUBSIDIARIES OF DTE ENERGY COMPANYDTE Energy Company’s principal subsidiaries as of December 31, 2015 are listed below. All other subsidiaries, if considered in the aggregate as asingle subsidiary, would not constitute a significant subsidiary.Subsidiary State of Incorporation1.DTE Electric Company Michigan2.DTE Enterprises, Inc. Michigan3.DTE Gas Holdings, Inc. Michigan4.DTE Gas Company MichiganExhibit 23.30CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-157769) and Form S-8 (No. 333-202343, 333-133645, 333-109623, and 333-199746) of DTE Energy Company of our report dated February 10, 2016 relating to the financial statements, financialstatement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K./s/ PricewaterhouseCoopers LLPDetroit, MichiganFebruary 10, 2016Exhibit 23.31CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-206552) of DTE Electric Company of our reportdated February 10, 2016 relating to the financial statements and financial statement schedule, which appears in this Form 10-K./s/ PricewaterhouseCoopers LLPDetroit, MichiganFebruary 10, 2016Exhibit 31.109FORM 10-K CERTIFICATIONI, Gerard M. Anderson, certify that:1.I have reviewed this Annual Report on Form 10-K of DTE Energy 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 thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial 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 inExchange 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 withinthose 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 oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal 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 theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's mostrecent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially affect, the registrant's internal control over financial reporting; and5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe 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 arereasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internalcontrol over financial reporting./S/ GERARD M. ANDERSONDate:February 10, 2016Gerard M. AndersonChairman of the Board andChief Executive Officer of DTE Energy Company Exhibit 31.110FORM 10-K CERTIFICATIONI, Peter B. Oleksiak, certify that:1.I have reviewed this Annual Report on Form 10-K of DTE Energy 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 thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial 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 inExchange 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 withinthose 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 oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal 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 theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's mostrecent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially affect, the registrant's internal control over financial reporting; and5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe 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 arereasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internalcontrol over financial reporting./S/ PETER B. OLEKSIAKDate:February 10, 2016Peter B. OleksiakSenior Vice President andChief Financial Officer of DTE Energy Company Exhibit 31.111FORM 10-K CERTIFICATIONI, Gerard M. Anderson, certify that:1.I have reviewed this Annual Report on Form 10-K 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 thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial 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 inExchange 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 withinthose 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 oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal 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 theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's mostrecent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially affect, the registrant's internal control over financial reporting; and5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe 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 arereasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internalcontrol over financial reporting./S/ GERARD M. ANDERSONDate:February 10, 2016Gerard M. AndersonChairman of the Board andChief Executive Officer of DTE Electric Company Exhibit 31.112FORM 10-K CERTIFICATIONI, Peter B. Oleksiak, certify that:1.I have reviewed this Annual Report on Form 10-K 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 thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial 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 inExchange 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 withinthose 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 oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal 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 theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's mostrecent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially affect, the registrant's internal control over financial reporting; and5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe 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 arereasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internalcontrol over financial reporting./S/ PETER B. OLEKSIAKDate:February 10, 2016Peter B. OleksiakSenior Vice President andChief Financial Officer of DTE Electric Company Exhibit 32.109CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report on Form 10-K of DTE Energy Company for the year ended December 31, 2015, as filed with the Securities andExchange Commission on the date hereof (the “Report”), I, Gerard M. Anderson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant toSection 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 DTE EnergyCompany.Date:February 10, 2016/S/ GERARD M. ANDERSON Gerard M. AndersonChairman of the Board andChief Executive Officer of DTE Energy Company A signed original of this written statement required by Section 906 has been provided to DTE Energy Company and will be retained by DTE EnergyCompany and furnished to the Securities and Exchange Commission or its staff upon request.Exhibit 32.110CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report on Form 10-K of DTE Energy Company for the year ended December 31, 2015, as filed with the Securities andExchange 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 906of 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 DTE EnergyCompany.Date:February 10, 2016/S/ PETER B. OLEKSIAK Peter B. OleksiakSenior Vice President andChief Financial Officer of DTE Energy Company A signed original of this written statement required by Section 906 has been provided to DTE Energy Company and will be retained by DTE EnergyCompany and furnished to the Securities and Exchange Commission or its staff upon request.Exhibit 32.111CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report on Form 10-K of DTE Electric Company for the year ended December 31, 2015, as filed with the Securities andExchange Commission on the date hereof (the “Report”), I, Gerard M. Anderson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant toSection 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 DTE ElectricCompany.Date:February 10, 2016/S/ GERARD M. ANDERSON Gerard M. AndersonChairman of the Board andChief Executive Officer of DTE Electric Company A signed original of this written statement required by Section 906 has been provided to DTE Electric Company and will be retained by DTE ElectricCompany and furnished to the Securities and Exchange Commission or its staff upon request.Exhibit 32.112CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report on Form 10-K of DTE Electric Company for the year ended December 31, 2015, as filed with the Securities andExchange 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 906of 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 DTE ElectricCompany.Date:February 10, 2016/S/ PETER B. OLEKSIAK Peter B. OleksiakSenior Vice President andChief Financial Officer of DTE Electric Company A signed original of this written statement required by Section 906 has been provided to DTE Electric Company and will be retained by DTE ElectricCompany and furnished to the Securities and Exchange Commission or its staff upon request.

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