DTE ENERGY CODTE
DTE ENERGY CO Debt Disclosure
LONG-TERM DEBT
Long-Term Debt
DTE Energy's long-term debt outstanding and interest rates of debt outstanding at December 31 were:
Interest Rate(a) | Maturity Date | 2023 | 2022 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Mortgage bonds, notes, and other | |||||||||||||||||||||||
| DTE Energy debt, unsecured | 3.3% | 2024 — 2030 | $ | 5,105 | $ | 5,105 | |||||||||||||||||
| DTE Electric debt, principally secured | 3.8% | 2024 — 2053 | 10,370 | 9,572 | |||||||||||||||||||
| DTE Gas debt, principally secured | 4.2% | 2025 — 2052 | 2,545 | 2,325 | |||||||||||||||||||
| 18,020 | 17,002 | ||||||||||||||||||||||
| Unamortized debt discount | (26) | (26) | |||||||||||||||||||||
| Unamortized debt issuance costs | (100) | (92) | |||||||||||||||||||||
| Long-term debt due within one year | (2,075) | (1,077) | |||||||||||||||||||||
| $ | 15,819 | $ | 15,807 | ||||||||||||||||||||
Securitization bonds(b) | |||||||||||||||||||||||
| DTE Electric securitization bonds | 5.3% | 2027 — 2038 | $ | 777 | $ | 215 | |||||||||||||||||
| Unamortized debt issuance costs | (8) | (4) | |||||||||||||||||||||
| Long-term debt due within one year | (64) | (39) | |||||||||||||||||||||
| $ | 705 | $ | 172 | ||||||||||||||||||||
| Junior Subordinated Debentures | |||||||||||||||||||||||
| Subordinated debentures | 4.8% | 2077 — 2081 | $ | 910 | $ | 910 | |||||||||||||||||
| Unamortized debt issuance costs | (27) | (27) | |||||||||||||||||||||
| $ | 883 | $ | 883 | ||||||||||||||||||||
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(a)Weighted average interest rate as of December 31, 2023.
(b)Bonds are held by DTE Securitization I and DTE Securitization II, special purpose entities consolidated by DTE Electric. Refer to Note 1 to the Consolidated Financial Statements, “Organization and Basis of Presentation,” for additional information regarding these entities and restrictions related to the bonds.
DTE Electric's long-term debt outstanding and interest rates of debt outstanding at December 31 were:
Interest Rate(a) | Maturity Date | 2023 | 2022 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Mortgage bonds, notes, and other | |||||||||||||||||||||||
| Long-term debt, principally secured | 3.8% | 2024 — 2053 | $ | 10,370 | $ | 9,572 | |||||||||||||||||
| Unamortized debt discount | (23) | (22) | |||||||||||||||||||||
| Unamortized debt issuance costs | (73) | (65) | |||||||||||||||||||||
| Long-term debt due within one year | (100) | (203) | |||||||||||||||||||||
| $ | 10,174 | $ | 9,282 | ||||||||||||||||||||
Securitization bonds(b) | |||||||||||||||||||||||
| DTE Electric securitization bonds | 5.3% | 2027 — 2038 | $ | 777 | $ | 215 | |||||||||||||||||
| Unamortized debt issuance costs | (8) | (4) | |||||||||||||||||||||
| Long-term debt due within one year | (64) | (39) | |||||||||||||||||||||
| $ | 705 | $ | 172 | ||||||||||||||||||||
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(a)Weighted average interest rate as of December 31, 2023.
(b)Bonds are held by DTE Securitization I and DTE Securitization II, special purpose entities consolidated by DTE Electric. Refer to Note 1 to the Consolidated Financial Statements, “Organization and Basis of Presentation,” for additional information regarding these entities and restrictions related to the bonds.
Debt Issuances
Refer to the table below for debt issued in 2023:
| Company | Month | Type | Interest Rate | Maturity Date | Amount | |||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||
| DTE Electric | March | Mortgage bonds(a) | 5.20% | 2033 | $ | 600 | ||||||||||||||||||||||||||
| DTE Electric | March | Mortgage bonds(a) | 5.40% | 2053 | 600 | |||||||||||||||||||||||||||
| DTE Energy | March | Term loan facility draw(b) | Variable | 2023 | 200 | |||||||||||||||||||||||||||
| DTE Energy | May | Senior notes(c) | 4.875% | 2028 | 800 | |||||||||||||||||||||||||||
| DTE Electric | June | Tax-exempt revenue bonds(d) | 3.875% | 2053 | 100 | |||||||||||||||||||||||||||
| DTE Gas | October | Mortgage bonds(a) | 5.57% | 2030 | 150 | |||||||||||||||||||||||||||
| DTE Gas | October | Mortgage bonds(a) | 5.73% | 2035 | 145 | |||||||||||||||||||||||||||
| DTE Electric | November | Securitization bonds(e) | 5.97% | 2033(f) | 301 | |||||||||||||||||||||||||||
| DTE Electric | November | Securitization bonds(e) | 6.09% | 2038(g) | 301 | |||||||||||||||||||||||||||
| $ | 3,197 | |||||||||||||||||||||||||||||||
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(a)Proceeds used for the repayment of short-term borrowings, for capital expenditures, and for other general corporate purposes.
(b)Proceeds used for general corporate purposes.
(c)Proceeds used for the repayment of amounts outstanding under the term loan facility.
(d)Tax-exempt revenue bonds are issued by a public body that loans the proceeds to DTE Electric with terms substantially mirroring the revenue bonds. Proceeds were used to finance costs relating to solid waste disposal facilities at the Monroe and St. Clair power plants. The bonds will be subject to mandatory tender in June 2030.
(e)Bonds were issued in alignment with Green Bond principles to support the closure and recovery of St. Clair and Trenton Channel generation plants and DTE Electric's transition to cleaner energy. Proceeds were used to reimburse DTE Electric for qualified costs incurred or the net book value of the St. Clair and Trenton Channel plants and other qualified costs. The securitization financing order from the MPSC required that the net proceeds be subsequently applied by DTE Electric to retire existing debt or equity. Accordingly, DTE Electric used net proceeds of $297 million towards the partial retirement of the 2013 Series B Mortgage bonds noted in the Debt Redemptions table below and issued a special dividend of $297 million to DTE Energy. Refer to Note 9 to the Consolidated Financial Statements, "Regulatory Matters," for additional information.
(f)Principal payments on the bonds will be made semi-annually beginning September 2024, with the final payment scheduled for March 2032.
(g)Principal payments on the bonds will be made semi-annually beginning March 2032, with the final payment scheduled for September 2037.
In June 2022, DTE Energy entered into a $1.125 billion unsecured term loan with a maturity date of December 2023. Any borrowings on the loan were determined to be long-term debt, as the term of the facility exceeded one year. Through the first quarter of 2023, DTE Energy had drawn $1.0 billion on the term loan, bearing interest at SOFR plus 0.90% per annum. These borrowings were repaid in May and June 2023, as noted in the debt redemptions table below. Unused term loan capacity of $125 million terminated in June 2023 per the terms of the credit agreement.
Debt Redemptions
Refer to the table below for debt redeemed in 2023:
| Company | Month | Type | Interest Rate | Maturity Date | Amount | |||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||
| DTE Gas | April | Senior notes | 6.44% | 2023 | $ | 25 | ||||||||||||||||||||||||||
| DTE Energy | May | Term loan facility | Variable | 2023 | 800 | |||||||||||||||||||||||||||
| DTE Electric | June | Securitization bonds | 2.64% | 2023 | 19 | |||||||||||||||||||||||||||
| DTE Energy | June | Term loan facility | Variable | 2023 | 200 | |||||||||||||||||||||||||||
| DTE Electric | September | Mortgage bonds | 4.31% | 2023 | 102 | |||||||||||||||||||||||||||
| DTE Electric | October | Senior notes | 5.19% | 2023 | 100 | |||||||||||||||||||||||||||
| DTE Electric | December | Securitization bonds | 2.64% | 2023 | 20 | |||||||||||||||||||||||||||
| DTE Gas | December | Mortgage bonds | 3.64% | 2023 | 50 | |||||||||||||||||||||||||||
| DTE Electric | December | Mortgage bonds(a) | 3.65% | 2024 | 300 | |||||||||||||||||||||||||||
| $ | 1,616 | |||||||||||||||||||||||||||||||
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(a)Represents a partial redemption with $100 million remaining principal to be redeemed in 2024.
Debt Maturities
The following table shows the Registrants' scheduled debt maturities, excluding any unamortized discount on debt:
| 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and Thereafter | Total | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
DTE Energy(a)(b) | $ | 2,139 | $ | 1,292 | $ | 851 | $ | 230 | $ | 1,737 | $ | 13,458 | $ | 19,707 | |||||||||||||||||||||||||||
DTE Electric(b) | $ | 164 | $ | 422 | $ | 251 | $ | 39 | $ | 617 | $ | 9,654 | $ | 11,147 | |||||||||||||||||||||||||||
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(a)Amounts include DTE Electric's scheduled debt maturities.
(b)Amounts include DTE Securitization I and DTE Securitization II scheduled debt maturities.
The following table shows scheduled interest payments related to the Registrants' long-term debt:
| 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and Thereafter | Total | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
DTE Energy(a)(b) | $ | 749 | $ | 668 | $ | 651 | $ | 623 | $ | 589 | $ | 8,412 | $ | 11,692 | |||||||||||||||||||||||||||
DTE Electric(b) | $ | 432 | $ | 427 | $ | 416 | $ | 408 | $ | 400 | $ | 5,150 | $ | 7,233 | |||||||||||||||||||||||||||
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(a)Amounts include DTE Electric's scheduled interest payments.
(b)Amounts include DTE Securitization I and DTE Securitization II scheduled interest payments.
Junior Subordinated Debentures
DTE Energy has the right to defer interest payments on the Junior Subordinated Debentures. Should DTE Energy exercise this right, it cannot declare or pay dividends on, or redeem, purchase or acquire, any of its capital stock during the deferral period. Any deferred interest payments will bear additional interest at the rate associated with the related debt issue. As of December 31, 2023, no interest payments have been deferred on the Junior Subordinated Debentures.
Cross Default Provisions
Substantially 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 to timely pay their indebtedness under these mortgages, such failure may create cross defaults in the indebtedness of DTE Energy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 8, 2024 | Showing above |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 5, 2020 | |
| 2018 | Feb 7, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 10, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.