Payments of special dividend

[Table of Contents](#ie1b09d57e49a40aaa81f572e6311eac9_10)DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)NOTE 10 — LONG-TERM DEBT Debt IssuancesIn 2022, the following debt was issued:

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| Company |  | Month |  | Type |  | Interest Rate |  | Maturity Date |  | Amount |
|  |  |  |  |  |  |  |  |  |  | (In millions) |
| DTE Electric |  | February |  | Mortgage bonds(a) |  | 3.00% |  | 2032 |  | $ | 500  |  |
| DTE Electric |  | February |  | Mortgage bonds(b) |  | 3.65% |  | 2052 |  | 400  |  |
| DTE Electric |  | March |  | Securitization bonds(c) |  | 2.64% |  | 2027(d) |  | 184  |  |
| DTE Electric |  | March |  | Securitization bonds(c) |  | 3.11% |  | 2036(e) |  | 52  |  |
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|  |  |  |  |  |  |  |  |  |  | $ | 1,136  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)Proceeds used for the repayment of short-term borrowings, for capital expenditures, and for other general corporate purposes.(b)Bonds were issued as Green Bonds with proceeds to be used for eligible green expenditures, including costs related to the generation of solar and wind energy, purchases of renewable energy from wind and solar power facilities, and energy optimization programs.(c)Proceeds were used to reimburse DTE Electric for qualified costs previously incurred, including the net book value of the River Rouge generation plant, tree trimming surge program costs, 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 proceeds of $115 million towards retirement of the 2012 Series A Mortgage bonds noted in the Debt Redemptions table below and issued a one-time special dividend of $115 million to DTE Energy. Refer to Note 6 to the Consolidated Financial Statements, “Regulatory Matters,” for additional information(d)Principal payments on the bonds will be made semi-annually beginning December 2022, with the final payment scheduled for December 2026.(e)Principal payments on the bonds will be made semi-annually beginning June 2027, with the final payment scheduled for December 2035.Debt RedemptionsIn 2022, the following debt was redeemed:

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| Company |  | Month |  | Type |  | Interest Rate |  | Maturity Date |  | Amount |
|  |  |  |  |  |  |  |  |  |  | (In millions) |
| DTE Electric |  | March |  | Mortgage bonds |  | 2.65% |  | 2022 |  | $ | 250  |  |
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NOTE 11 — 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 are intended to provide liquidity support for each of the companies’ commercial paper programs. Borrowings under the revolvers are available at prevailing short-term interest rates. DTE Energy also has other facilities to support letter of credit issuance.The unsecured revolving credit agreements have historically required 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 June 2021, DTE Energy amended its total funded debt to capitalization ratio requirement to no more than 0.70 to 1 starting with the third quarter of 2021 and ending December 2022. The amendment was a result of temporary balance sheet impacts resulting from the separation of DT Midstream on July 1, 2021. In the agreements, "total funded debt" means all indebtedness of each respective company and their consolidated subsidiaries, including finance 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) total funded 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 States of America. At March 31, 2022, the total funded debt to total capitalization ratios for DTE Energy, DTE Electric, and DTE Gas were 0.67 to 1, 0.53 to 1, and 0.46 to 1, respectively, and were in compliance with this financial covenant.42
