DTE Energy 2012 Annual Report Download - page 91

Table of Contents
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The agreements require the Company to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In the agreements, “total funded
debt” means all indebtedness of the Company and its 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) total funded debt plus (b) “consolidated net worth,”
which is equal to consolidated total stockholders’ equity of the Company and its 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 December 31, 2012, the total
funded debt to total capitalization ratios for DTE Energy, DTE Electric and DTE Gas are 0.48 to 1, 0.52 to 1 and 0.46 to 1, respectively, and are in
compliance with this financial covenant. The availability under these combined facilities at December 31, 2012 is shown in the following table:
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



Unsecured letter of credit facility, expiring in May 2013 50
—
—
50
Unsecured letter of credit facility, expiring in August 2015 125
—
—
125
Unsecured revolving credit facility, expiring October 2016 1,100
300
400
1,800
Total credit facilities at December 31, 2012 $1,275
$300
$400
$1,975
Amounts outstanding at December 31, 2012:
Commercial paper issuances —
130
110
240
Letters of credit 175
—
—
175
175
130
110
415
Net availability at December 31, 2012 $1,100
$170
$290
$1,560
The Company has other outstanding letters of credit which are not included in the above described facilities totaling approximately $ 73 million which
are used for various corporate purposes.
The weighted average interest rate for short-term borrowings was 0.4% and 0.5% at December 31, 2012 and 2011, respectively.
In conjunction with maintaining certain exchange traded risk management positions, the Company may be required to post cash collateral with its
clearing agent. The Company has a demand financing agreement for up to $100 million with its clearing agent. The agreement, as amended, also allows for up
to $50 million of additional margin financing provided that the Company posts a letter of credit for the incremental amount. At December 31, 2012, a $40
million letter of credit was in place, raising the capacity under this facility to $140 million. The $40 million letter of credit is included in the table above. The
amount outstanding under this agreement was $65 million and $56 million at December 31, 2012 and December 31, 2011, respectively.
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Lessee — The Company leases various assets under capital and operating leases, including coal railcars, office buildings, a warehouse, computers,
vehicles and other equipment. The Company has also entered into various power purchase agreements which meet the criteria of capital and operating leases.
The lease arrangements expire at various dates through 2032. Future minimum lease payments under non-cancelable leases at December 31, 2012 were:
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