DTE Energy 2012 Annual Report Download - page 61

Table of Contents
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Amounts for non-consolidated VIEs as of December 31, 2012 and December 31, 2011 are as follows:
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Other investments 
$117
Notes receivable 
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Revenues
Revenues from the sale and delivery of electricity, and the sale, delivery and storage of natural gas are recognized as services are provided. DTE Electric
and DTE Gas record revenues for electricity and gas provided but unbilled at the end of each month. Rates for DTE Electric and DTE Gas include provisions
to adjust billings for fluctuations in fuel and purchased power costs, cost of natural gas and certain other costs. Revenues are adjusted for differences between
actual costs subject to reconciliation and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are
recorded on the Consolidated Statements of Financial Position and are recovered or returned to customers through adjustments to the billing factors.
See Note 11 for further discussion of recovery mechanisms authorized by the MPSC.
Non-utility businesses recognize revenues as services are provided and products are delivered. See Note 4 for discussion of derivative contracts.
Accounting for ISO Transactions
DTE Electric participates in the energy market through MISO. MISO requires that we submit hourly day-ahead, real- time and FTR bids and offers 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, purchased power and
gas and net sales in Operating revenues on the Consolidated Statements of Operations. DTE Electric records net sale billing adjustments when invoices are
received.
Energy Trading participates in the energy markets through various independent system operators and regional transmission organizations (ISOs and
RTOs). These markets require that we submit hourly day-ahead, real-time bids and offers for energy at locations across each region. We submit bids in the
annual and monthly auction revenue rights and FTR auctions to the regional transmission organizations. Energy Trading accounts for these transactions on a
net hourly basis for the day-ahead, real-time and FTR markets. These transactions are related to our trading contracts which are presented on a net basis in
Operating revenues in the Consolidated Statements of Income.
DTE Electric and Energy Trading record expense accruals for future net purchases adjustments based on historical experience, and reconcile accruals to
actual expenses when invoices are received from MISO, the ISOs and RTOs.
Comprehensive Income
Comprehensive income is the change in common shareholders’ equity during a period from transactions and events from non-owner sources, including
net income. As shown in the following table, amounts recorded to accumulated other comprehensive loss for the year ended December 31, 2012 include
unrealized gains and losses from derivatives accounted for as cash flow hedges, unrealized gains and losses on available for sale securities, the Company’s
interest in comprehensive income of equity investees, changes in benefit obligations, consisting of deferred actuarial losses, prior service costs and transition
amounts related to pension and other postretirement benefit plans, and foreign currency translation adjustments.
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