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, 2017 were:



	DTE Energy		DTE Electric
	(In millions)
2018	$	40	$	15
2019	34		14
2020	22		9
2021	13		9
2022	9		6
2022 and thereafter	48		38
Total minimum lease payments	$	166	$	91

Rental expense for DTE Energy operating leases was $51 million in 2017 and $43 million in 2016 and 2015, including rental expense for DTE Electric operating leases of $28 million in 2017, $28 million in 2016, and $32 million in 2015.

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 two energy services agreements, for which a portion of are accounted for as capital leases. These agreements were extended during the year and expire in 2019 and 2026.

The components of DTE Energy's net investment in capital leases at December 31, 2017, were as follows:



	DTE Energy
	(In millions)
2018	$	13
2019	10
2020	9
2021	—
2022	—
2023 and thereafter	1
Total minimum future lease receipts	33
Residual value of leased pipeline	40
Less unearned income	(15		)
Net investment in capital lease	58
Less current portion	(7		)
	$	51