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Leases
 9 Months Ended
Sep. 30, 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.
During the third quarter 2022, DTE Energy completed construction of and began operating energy infrastructure assets for another large industrial customer in Canada. Under the long-term agreement, the customer will have the option to purchase the assets at the end of the initial contract term in 2042. The customer may also elect to extend the term in 5 year increments and may purchase the assets during the extension period. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $64 million, subject to foreign currency translation adjustments.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
September 30, 2022
(In millions)
2022$9 
202334 
202434 
202534 
202633 
2027 and Thereafter451 
Total minimum future lease receipts595 
Residual value of leased pipeline17 
Less unearned income321 
Net investment in finance lease291 
Less current portion7 
$284 
Interest income recognized under finance leases was $6 million and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $17 million and $13 million for the nine months ended September 30, 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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Fixed payments$3 $13 $11 $42 
Variable payments21 55 52 90 
$24 $68 $63 $132 
Operating revenues$24 $26 $63 $70 
Other income— 42 — 62 
$24 $68 $63 $132 
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.
During the third quarter 2022, DTE Energy completed construction of and began operating energy infrastructure assets for another large industrial customer in Canada. Under the long-term agreement, the customer will have the option to purchase the assets at the end of the initial contract term in 2042. The customer may also elect to extend the term in 5 year increments and may purchase the assets during the extension period. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $64 million, subject to foreign currency translation adjustments.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
September 30, 2022
(In millions)
2022$9 
202334 
202434 
202534 
202633 
2027 and Thereafter451 
Total minimum future lease receipts595 
Residual value of leased pipeline17 
Less unearned income321 
Net investment in finance lease291 
Less current portion7 
$284 
Interest income recognized under finance leases was $6 million and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $17 million and $13 million for the nine months ended September 30, 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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Fixed payments$3 $13 $11 $42 
Variable payments21 55 52 90 
$24 $68 $63 $132 
Operating revenues$24 $26 $63 $70 
Other income— 42 — 62 
$24 $68 $63 $132 
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.
During the third quarter 2022, DTE Energy completed construction of and began operating energy infrastructure assets for another large industrial customer in Canada. Under the long-term agreement, the customer will have the option to purchase the assets at the end of the initial contract term in 2042. The customer may also elect to extend the term in 5 year increments and may purchase the assets during the extension period. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing an additional net investment of $64 million, subject to foreign currency translation adjustments.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
September 30, 2022
(In millions)
2022$9 
202334 
202434 
202534 
202633 
2027 and Thereafter451 
Total minimum future lease receipts595 
Residual value of leased pipeline17 
Less unearned income321 
Net investment in finance lease291 
Less current portion7 
$284 
Interest income recognized under finance leases was $6 million and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $17 million and $13 million for the nine months ended September 30, 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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Fixed payments$3 $13 $11 $42 
Variable payments21 55 52 90 
$24 $68 $63 $132 
Operating revenues$24 $26 $63 $70 
Other income— 42 — 62 
$24 $68 $63 $132