Free Writing Prospectus, dated October 28, 2026
Filed pursuant to Rule 433 under the Securities Act of 1933
Supplementing the Preliminary Prospectus, dated October 9, 2026
Registration Statement Nos. 333-298489 and 333-298489-01
This Preliminary Term Sheet has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any securitization bonds in any jurisdiction where such offer or sale is prohibited. Please read the important information and qualifications on page 2 of this Preliminary Term Sheet.
DTE Electric Securitization Funding III LLC
(the “Issuing Entity”)
PRELIMINARY TERM SHEET
$600,461,000 Senior Secured Securitization Bonds, Series 2026A (the “Bonds”)
October 28, 2026
| Issuing Entity: | DTE Electric Securitization Funding III LLC | |
| Sponsor, Depositor and Initial Servicer: | DTE Electric Company | |
| Trustee: | U.S. Bank Trust Company, National Association | |
| Sole Bookrunner: | Citigroup Global Markets Inc. | |
| Co-Managers: | Huntington Securities, Inc. Independence Point Securities LLC Siebert Williams Shank & Co., LLC | |
| Expected Ratings (Moody’s/S&P): | Aaa (sf)/AAA (sf)(1) | |
| Interest Payment Dates(2): | February 1 and August 1, commencing August 1, 2027 | |
| Annual Report Commencement Date: | March 31, 2027 | |
| Initial Securitization Charges as a Percentage of Customers’ total Electricity Bill: | The initial Power Supply Securitization Charge is expected to represent approximately 0.73% of the Power Supply portion of the total DTE Electric bill, as of August 2026, received by a 650 kWh residential Power Supply Customer of DTE Electric.
The initial Distribution Securitization Charge is expected to represent approximately 2.54% of the Distribution portion of the total DTE Electric bill, as of August 2026, received by a 650 kWh residential Distribution Customer of DTE Electric.
For DTE Electric’s retail electric distribution customers subject to both the Power Supply Securitization Charge and the Distribution Securitization Charge, the combined initial Securitization Charges are expected to represent approximately 1.68% of the total DTE Electric bill, as of August 2026, received by a 650 kWh residential Customer of DTE Electric.
For DTE Electric’s retail electric distribution customers subject to both the Power Supply Securitization Charge and the Distribution Securitization Charge, the estimated aggregate amount of (1) the initial Securitization Charge for the Bonds, (2) the securitization charge for the Series 2022A Securitization Bonds and (3) the securitization charge for the Series 2023A Securitization Bonds is expected to represent approximately 3.41% of the total DTE Electric bill, as of August 2026, received by a 650 kWh residential Customer of DTE Electric. | |
| (1) | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
| (2) | In any case where the date on which payment is due shall not be a Business Day, then payment may be made on the next Business Day. |
1
| Tranche |
Expected Weighted Average Life (Years)* |
Principal Amount Offered* | Scheduled Final Payment Date* |
Final Maturity Date* |
CUSIP | ISIN | ||||||||||||||||||
| A-1 |
2.72 | $ | 412,333,000 | 8/1/2031 | 8/1/2032 | 26254QAA8 | US26254QAA85 | |||||||||||||||||
| A-2 |
9.86 | $ | 188,128,000 | 8/1/2040 | 8/1/2041 | 26254QAB6 | US26254QAB68 | |||||||||||||||||
| * | Preliminary, subject to change. |
DTE Electric Company and the Issuing Entity have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents DTE Electric Company and the Issuing Entity have filed with the SEC as exhibits to the registration statement for more complete information about the Issuing Entity and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, DTE Electric Company, the Issuing Entity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at 1-800-831-9146 or emailing prospectus@citi.com.
This Preliminary Term Sheet is not required to contain all information that is required to be included in the prospectus for the securities offering to which this Preliminary Term Sheet relates. The prospectus contains material information not contained herein, and the prospective purchasers are referred to the prospectus, as it may be amended or supplemented. This Preliminary Term Sheet is not an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such offer, solicitation or sale is not permitted.
The information in this Preliminary Term Sheet is preliminary and may be superseded by an additional term sheet provided to you prior to the time you enter into a contract of sale. This Preliminary Term Sheet is being delivered to you solely to provide you with information about the offering of the securities referred to herein. The securities are being offered when, as and if issued. In particular, you are advised that these securities, and the securitization charges securing them, are subject to modification or revision (including, among other things, the possibility that one or more tranches of securities may be split, combined or eliminated), at any time prior to issuance or availability of a final prospectus. As a result, you may commit to purchase securities that have characteristics that may change, and you are advised that all or a portion of the securities may not be issued that have the characteristics described in these materials. The Issuing Entity’s obligation to sell securities to you is conditioned on the securities and the underlying transaction having the characteristics described in these materials.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PRELIMINARY TERM SHEET IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Price and availability of the Bonds are subject to change without notice.
A contract of sale will come into being no sooner than the date on which the Bonds have been priced and the underwriters have confirmed the allocation of securities to be made to you; any “indications of interest” expressed by you, and any “soft circles” generated by the underwriters, will not create binding contractual obligations for you or the underwriters (or any other person or entity). You may withdraw your offer to purchase securities at any time prior to the underwriters’ acceptance of your offer.
Any legends, disclaimers or other notices that may appear at the bottom of the email communication to which this Preliminary Term Sheet is attached relating to (i) these materials not constituting an offer (or a solicitation of an offer), (ii) no representation that these materials are accurate or complete and may not be updated or (iii) these materials possibly being confidential are not applicable to these materials and should be disregarded. Such legends, disclaimers or other notices have been automatically generated as a result of these materials having been sent via Bloomberg or another system.
2
EXPECTED SINKING FUND SCHEDULE(1)
| Semi- Annual Payment Date |
Tranche A-1 | Tranche A-2 | ||||||
| Closing Date |
$ | 0.00 | $ | 0.00 | ||||
| August 1, 2027 |
$ | 56,072,585.57 | $ | 0.00 | ||||
| February 1, 2028 |
$ | 40,487,529.75 | $ | 0.00 | ||||
| August 1, 2028 |
$ | 41,583,729.60 | $ | 0.00 | ||||
| February 1, 2029 |
$ | 42,709,609.10 | $ | 0.00 | ||||
| August 1, 2029 |
$ | 43,865,971.75 | $ | 0.00 | ||||
| February 1, 2030 |
$ | 45,053,642.94 | $ | 0.00 | ||||
| August 1, 2030 |
$ | 46,273,470.33 | $ | 0.00 | ||||
| February 1, 2031 |
$ | 47,526,324.52 | $ | 0.00 | ||||
| August 1, 2031 |
$ | 48,760,136.44 | $ | 52,963.34 | ||||
| February 1, 2032 |
$ | 0.00 | $ | 8,052,023.52 | ||||
| August 1, 2032 |
$ | 0.00 | $ | 8,291,410.19 | ||||
| February 1, 2033 |
$ | 0.00 | $ | 8,537,913.81 | ||||
| August 1, 2033 |
$ | 0.00 | $ | 8,791,745.99 | ||||
| February 1, 2034 |
$ | 0.00 | $ | 9,053,124.60 | ||||
| August 1, 2034 |
$ | 0.00 | $ | 9,322,273.99 | ||||
| February 1, 2035 |
$ | 0.00 | $ | 9,599,425.20 | ||||
| August 1, 2035 |
$ | 0.00 | $ | 9,884,816.11 | ||||
| February 1, 2036 |
$ | 0.00 | $ | 10,178,691.69 | ||||
| August 1, 2036 |
$ | 0.00 | $ | 10,481,304.19 | ||||
| February 1, 2037 |
$ | 0.00 | $ | 10,792,913.37 | ||||
| August 1, 2037 |
$ | 0.00 | $ | 11,113,786.69 | ||||
| February 1, 2038 |
$ | 0.00 | $ | 11,444,199.56 | ||||
| August 1, 2038 |
$ | 0.00 | $ | 11,784,435.61 | ||||
| February 1, 2039 |
$ | 0.00 | $ | 12,134,786.89 | ||||
| August 1, 2039 |
$ | 0.00 | $ | 12,495,554.10 | ||||
| February 1, 2040 |
$ | 0.00 | $ | 12,867,046.92 | ||||
| August 1, 2040 |
$ | 0.00 | $ | 13,249,584.23 | ||||
|
|
|
|
|
|||||
| Total Payments |
$ | 412,333,000.00 | $ | 188,128,000.00 | ||||
| (1) | Preliminary, subject to change. |
3
EXPECTED AMORTIZATION SCHEDULE(1)
OUTSTANDING PRINCIPAL BALANCE PER TRANCHE
| Semi- Annual Payment Date |
Tranche A-1(2) | Tranche A-2(3) | ||||||
| Closing Date |
$ | 412,333,000.00 | $ | 188,128,000.00 | ||||
| August 1, 2027 |
$ | 356,260,414.43 | $ | 188,128,000.00 | ||||
| February 1, 2028 |
$ | 315,772,884.68 | $ | 188,128,000.00 | ||||
| August 1, 2028 |
$ | 274,189,155.08 | $ | 188,128,000.00 | ||||
| February 1, 2029 |
$ | 231,479,545.98 | $ | 188,128,000.00 | ||||
| August 1, 2029 |
$ | 187,613,574.23 | $ | 188,128,000.00 | ||||
| February 1, 2030 |
$ | 142,559,931.29 | $ | 188,128,000.00 | ||||
| August 1, 2030 |
$ | 96,286,460.96 | $ | 188,128,000.00 | ||||
| February 1, 2031 |
$ | 48,760,136.44 | $ | 188,128,000.00 | ||||
| August 1, 2031 |
$ | 0.00 | $ | 188,075,036.66 | ||||
| February 1, 2032 |
$ | 0.00 | $ | 180,023,013.14 | ||||
| August 1, 2032 |
$ | 0.00 | $ | 171,731,602.95 | ||||
| February 1, 2033 |
$ | 0.00 | $ | 163,193,689.14 | ||||
| August 1, 2033 |
$ | 0.00 | $ | 154,401,943.15 | ||||
| February 1, 2034 |
$ | 0.00 | $ | 145,348,818.55 | ||||
| August 1, 2034 |
$ | 0.00 | $ | 136,026,544.56 | ||||
| February 1, 2035 |
$ | 0.00 | $ | 126,427,119.36 | ||||
| August 1, 2035 |
$ | 0.00 | $ | 116,542,303.25 | ||||
| February 1, 2036 |
$ | 0.00 | $ | 106,363,611.56 | ||||
| August 1, 2036 |
$ | 0.00 | $ | 95,882,307.37 | ||||
| February 1, 2037 |
$ | 0.00 | $ | 85,089,394.00 | ||||
| August 1, 2037 |
$ | 0.00 | $ | 73,975,607.31 | ||||
| February 1, 2038 |
$ | 0.00 | $ | 62,531,407.75 | ||||
| August 1, 2038 |
$ | 0.00 | $ | 50,746,972.14 | ||||
| February 1, 2039 |
$ | 0.00 | $ | 38,612,185.25 | ||||
| August 1, 2039 |
$ | 0.00 | $ | 26,116,631.15 | ||||
| February 1, 2040 |
$ | 0.00 | $ | 13,249,584.23 | ||||
| August 1, 2040 |
$ | 0.00 | $ | 0.00 | ||||
| (1) | Preliminary, subject to change. |
| (2) | To be paid from Distribution Securitization Charges and Power Supply Securitization Charges. |
| (3) | To be paid from Power Supply Securitization Charges only. |
4
Scheduled Principal Contribution Obligation Balance Schedule(1)
| Tranche A-1 | Tranche A-2 | |||||||||||||||
| Semi-Annual |
Distribution | Power Supply | Total | Power Supply | ||||||||||||
| Closing Date |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
| August 1, 2027 |
$ | 46,842,462.31 | $ | 9,230,123.26 | $ | 56,072,585.57 | $ | 0.00 | ||||||||
| February 1, 2028 |
$ | 33,822,866.69 | $ | 6,664,663.06 | $ | 40,487,529.75 | $ | 0.00 | ||||||||
| August 1, 2028 |
$ | 34,738,620.79 | $ | 6,845,108.81 | $ | 41,583,729.60 | $ | 0.00 | ||||||||
| February 1, 2029 |
$ | 35,679,168.96 | $ | 7,030,440.14 | $ | 42,709,609.10 | $ | 0.00 | ||||||||
| August 1, 2029 |
$ | 36,645,182.45 | $ | 7,220,789.30 | $ | 43,865,971.75 | $ | 0.00 | ||||||||
| February 1, 2030 |
$ | 37,637,350.77 | $ | 7,416,292.17 | $ | 45,053,642.94 | $ | 0.00 | ||||||||
| August 1, 2030 |
$ | 38,656,382.04 | $ | 7,617,088.29 | $ | 46,273,470.33 | $ | 0.00 | ||||||||
| February 1, 2031 |
$ | 39,703,003.58 | $ | 7,823,320.94 | $ | 47,526,324.52 | $ | 0.00 | ||||||||
| August 1, 2031 |
$ | 40,777,962.41 | $ | 7,982,174.03 | $ | 48,760,136.44 | $ | 52,963.34 | ||||||||
| February 1, 2032 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 8,052,023.52 | ||||||||
| August 1, 2032 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 8,291,410.19 | ||||||||
| February 1, 2033 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 8,537,913.81 | ||||||||
| August 1, 2033 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 8,791,745.99 | ||||||||
| February 1, 2034 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 9,053,124.60 | ||||||||
| August 1, 2034 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 9,322,273.99 | ||||||||
| February 1, 2035 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 9,599,425.20 | ||||||||
| August 1, 2035 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 9,884,816.11 | ||||||||
| February 1, 2036 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 10,178,691.69 | ||||||||
| August 1, 2036 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 10,481,304.19 | ||||||||
| February 1, 2037 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 10,792,913.37 | ||||||||
| August 1, 2037 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 11,113,786.69 | ||||||||
| February 1, 2038 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 11,444,199.56 | ||||||||
| August 1, 2038 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 11,784,435.61 | ||||||||
| February 1, 2039 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 12,134,786.89 | ||||||||
| August 1, 2039 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 12,495,554.10 | ||||||||
| February 1, 2040 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 12,867,046.92 | ||||||||
| August 1, 2040 |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 13,249,584.23 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Payments |
$ | 344,503,000.00 | $ | 67,830,000.00 | $ | 412,333,000.00 | $ | 188,128,000.00 | ||||||||
| (1) | Preliminary, subject to change. |
5
WEIGHTED AVERAGE LIFE SENSITIVITY
| -5% (1.65 Standard Deviations from Mean) |
-15% (4.70 Standard Deviations from Mean) |
|||||||||||||||||||
| Tranche | Expected Weighted Average Life (Years)(1) |
WAL (yrs) (1) | Change (days)(1)(2) | WAL (yrs)(1) | Change (days) (1)(2) | |||||||||||||||
| A-1 |
2.72 | 2.72 | 0 | 2.75 | 8 | |||||||||||||||
| A-2 |
9.86 | 9.86 | 0 | 9.87 | 3 | |||||||||||||||
| (1) | Preliminary, subject to change. |
| (2) | Number is rounded to whole days. |
Assumptions
For the purposes of preparing the above chart, the following assumptions, among others, have been made: (i) in relation to the initial forecast, the forecast error stays constant over the life of the Bonds and is equal to an overestimate of electricity consumption of 5% (1.65 standard deviations from mean) or 15% (4.70 standard deviations from mean); (ii) the Servicer makes timely and accurate filings to make True-Up Adjustments to the Securitization Charges semi-annually; (iii) customer net charge-off rates are held constant at 0.90% for all classes of Customers; (iv) all Securitization Charges are remitted 34 days after such charges are billed; (v) operating expenses are equal to projections; (vi) there is no acceleration of the applicable Final Maturity Date of the Bonds; (vii) a permanent loss of all Power Supply Customers and Distribution Customers required to pay each Securitization Charge, as the case may be, has not occurred; and (viii) the issuance date of the Bonds is November 12, 2026. There can be no assurance that the weighted average lives of the Bonds will be as shown.
6