CAPITAL AND OPERATING LEASES

Lessee — Operating Lease — The Registrants lease various assets under operating leases, including coal railcars, office buildings, a warehouse, computers, vehicles, and other equipment. The lease arrangements expire at various dates through 2046.

The Registrants' future minimum lease payments under non-cancelable operating leases at December 31, 2016 were:



	DTE Energy		DTE Electric
	(In millions)
2017	$	33	$	18
2018	28		15
2019	24		14
2020	13		10
2021	11		9
2022 and thereafter	66		31
Total minimum lease payments	$	175	$	97

Rental expense for DTE Energy operating leases was $43 million in 2016 and 2015, and $38 million in 2014, including rental expense for DTE Electric operating leases of $28 million in 2016, $32 million in 2015, and $26 million in 2014.

Lessor — Capital Lease — DTE Energy leases a portion of its pipeline system to the Vector Pipeline through a capital lease contract that expires in 2020, with renewal options extending for five years. DTE Energy owns a 40% interest in the Vector Pipeline. In addition, DTE Energy has an energy services agreement, a portion of which is accounted for as a capital lease. The agreement expires in 2019, with a three or five year renewal option.

The components of DTE Energy's net investment in capital leases at December 31, 2016, were as follows:



	DTE Energy
	(In millions)
2017	$	12
2018	12
2019	11
2020	9
2021	—
2022 and thereafter	—
Total minimum future lease receipts	44
Residual value of leased pipeline	40
Less unearned income	(20		)
Net investment in capital lease	64
Less current portion	(7		)
	$	57