Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

LEASES

Lessor

During the first quarter 2022, DTE Energy completed construction of and began operating certain energy infrastructure assets for a large industrial customer under a long-term agreement, where the assets will transfer to the customer at the end of the contract term in 2040. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $33 million.

The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:

	DTE Energy
	March 31, 2022
	(In millions)
2022	$	19
2023	26
2024	27
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	460
Residual value of leased pipeline	17
Less unearned income	248
Net investment in finance lease	229
Less current portion	6
	$	223

Interest income recognized under finance leases was $5 million and $4 million for the three months ended March 31, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended March 31,
	2022		2021
	(In millions)
Fixed payments	$	4	$	14
Variable payments	16		17
	$	20	$	31
Operating revenues	$	20	$	21
Other income	—		10
	$	20	$	31

Leases

LEASES

Lessor

During the first quarter 2022, DTE Energy completed construction of and began operating certain energy infrastructure assets for a large industrial customer under a long-term agreement, where the assets will transfer to the customer at the end of the contract term in 2040. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $33 million.

The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:

	DTE Energy
	March 31, 2022
	(In millions)
2022	$	19
2023	26
2024	27
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	460
Residual value of leased pipeline	17
Less unearned income	248
Net investment in finance lease	229
Less current portion	6
	$	223

Interest income recognized under finance leases was $5 million and $4 million for the three months ended March 31, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended March 31,
	2022		2021
	(In millions)
Fixed payments	$	4	$	14
Variable payments	16		17
	$	20	$	31
Operating revenues	$	20	$	21
Other income	—		10
	$	20	$	31

Leases

LEASES

Lessor

During the first quarter 2022, DTE Energy completed construction of and began operating certain energy infrastructure assets for a large industrial customer under a long-term agreement, where the assets will transfer to the customer at the end of the contract term in 2040. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $33 million.

The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:

	DTE Energy
	March 31, 2022
	(In millions)
2022	$	19
2023	26
2024	27
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	460
Residual value of leased pipeline	17
Less unearned income	248
Net investment in finance lease	229
Less current portion	6
	$	223

Interest income recognized under finance leases was $5 million and $4 million for the three months ended March 31, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended March 31,
	2022		2021
	(In millions)
Fixed payments	$	4	$	14
Variable payments	16		17
	$	20	$	31
Operating revenues	$	20	$	21
Other income	—		10
	$	20	$	31