Related Party Transactions

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

DTE Energy enters into related party transactions with certain equity method investees, primarily NEXUS.

DTE Gas is party to a 15-year capacity lease agreement with NEXUS for the transportation of natural gas. Under the lease agreement, DTE Gas provides firm pipeline capacity in the DTE Gas system in order for NEXUS to provide service to its customers from an interconnect between NEXUS and DTE Gas. DTE Gas charges NEXUS a fixed daily pipeline reservation charge for this capacity.

DTE Electric and DTE Gas are also party to respective 20-year and 15-year service agreements with NEXUS for the transportation of natural gas. Under the service agreements, NEXUS provides firm pipeline capacity to transport natural gas to DTE Electric and to service DTE Gas customers. DTE Electric and DTE Gas incur a firm daily pipeline reservation charge, which is recovered through the respective PSCR and GCR mechanisms.

DTE Energy Trading also enters into related party transactions with NEXUS for the transportation of natural gas.

The following table summarizes the amounts resulting from these transactions included in the Consolidated Statements of Operations for the years ended December 31:


	2020		2019		2018
	(In millions)
Operating Revenues — Utility operations
DTE Gas	$	32	$	32	$	6
Fuel, purchased power, and gas — utility
DTE Electric	$	8	$	8	$	1
DTE Gas	$	21	$	22	$	1
Fuel, purchased power, gas, and other — non-utility
DTE Energy Trading	$	27	$	13	$	1

Other related party transactions with equity method investees include transactions with Vector Pipeline and Millennium Pipeline. Refer to Note 18 to the Consolidated Financial Statements, "Leases," for lease activity related to Vector Pipeline. Other transactions relating to Vector Pipeline and Millennium Pipeline were not material for the years ended December 31, 2020, 2019, and 2018.

DTE Electric has agreements with affiliated companies to sell energy for resale, purchase fuel and power, provide fuel supply services, and provide power plant operation and maintenance services. DTE Electric has agreements with certain DTE Energy affiliates where it charges the affiliates for their use of the shared capital assets of DTE Electric. A shared services company accumulates various corporate support expenses and charges various subsidiaries of DTE Energy, including DTE Electric. DTE Electric records federal, state, and local income taxes payable to or receivable from DTE Energy based on its federal, state, and local tax provisions.

The following is a summary of DTE Electric's transactions with affiliated companies:


	2020		2019		2018
	(In millions)
Revenues and Other Income
Energy sales	$	8	$	10	$	9
Other services	$	2	$	5	$	4
Shared capital assets	$	51	$	47	$	43
Costs
Fuel and purchased power	$	16	$	9	$	7
Other services and interest	$	1	$	23	$	33
Corporate expenses	$	367	$	372	$	377
Other
Dividends declared	$	539	$	494	$	461
Dividends paid	$	539	$	494	$	461
Capital contribution from DTE Energy	$	636	$	180	$	325

DTE Electric's Accounts receivable and Accounts payable related to Affiliates are payable upon demand and are generally settled in cash within a monthly business cycle. Notes receivable and Short-term borrowings related to Affiliates are subject to a credit agreement with DTE Energy whereby short-term excess cash or cash shortfalls are remitted to or funded by DTE Energy. This credit arrangement involves the charge and payment of interest at market-based rates. Refer to DTE Electric's Consolidated Statements of Financial Position for affiliate balances at December 31, 2020 and 2019.

There were $20 million in charitable contributions made by DTE Electric to the DTE Energy Foundation for the year ended December 31, 2020 and no contributions for the years ended December 31, 2019, and 2018. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is to contribute and assist charitable organizations.

See the following notes for other related party transactions impacting DTE Electric’s Consolidated Financial Statements:


Note						Title

1						Organization and Basis of Presentation
21						Retirement Benefits and Trusteed Assets
22						Stock-Based Compensation