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Leases (Tables)

12 Months Ended

Dec. 31, 2023

Components of Lease Cost and Other Information Related to Leases

The following is a summary of the components of lease cost for the years ended December 31:


	DTE Energy						DTE Electric
	2023		2022		2021		2023		2022		2021
	(In millions)
Operating lease cost	$	22	$	18	$	19	$	17	$	12	$	14
Finance lease cost:
Amortization of right-of-use assets	7		7		7		6		6		6
Interest of lease liabilities	—		1		1		—		—		—
Total finance lease cost	7		8		8		6		6		6
Variable lease cost	13		9		9		—		—		—
Short-term lease cost	12		19		14		4		10		6

	$	54	$	54	$	50	$	27	$	28	$	26

The following is a summary of other information related to leases for the years ended December 31:


	DTE Energy									DTE Electric
	2023			2022			2021			2023			2022			2021
	(In millions)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of these liabilities:
Operating cash flows for finance leases	$	9		$	8		$	8		$	7		$	7		$	7
Operating cash flows for operating leases	$	19		$	17		$	19		$	15		$	12		$	14

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	61		$	5		$	5		$	61		$	2		$	1
Finance leases	$	5		$	3		$	3		$	5		$	1		$	1

Weighted Average Remaining Lease Term (Years)
Operating leases	18.7			12.8			12.7			19.8			11.1			10.3
Finance leases	8.9			8.2			7.8			4.5			1.1			2.1

Weighted Average Discount Rate
Operating leases	4.4		%	3.7		%	3.6		%	4.5		%	3.4		%	3.4		%
Finance leases	4.0		%	2.4		%	2.2		%	5.4		%	1.0		%	1.0		%

Schedule of Maturities of Operating Leases

The Registrants' future minimum lease payments under leases for remaining periods as of December 31, 2023 are as follows:


	DTE Energy				DTE Electric
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
	(In millions)
2024	$	20	$	3	$	16	$	2
2025	15		3		12		1
2026	14		2		10		1
2027	12		2		10		1
2028	10		2		8		1
2029 and thereafter	134		6		110		—
Total future minimum lease payments	205		18		166		6
Imputed interest	(80)		(2)		(70)		—
Lease liabilities	$	125	$	16	$	96	$	6

Schedule of Maturities of Finance Leases

The Registrants' future minimum lease payments under leases for remaining periods as of December 31, 2023 are as follows:


	DTE Energy				DTE Electric
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
	(In millions)
2024	$	20	$	3	$	16	$	2
2025	15		3		12		1
2026	14		2		10		1
2027	12		2		10		1
2028	10		2		8		1
2029 and thereafter	134		6		110		—
Total future minimum lease payments	205		18		166		6
Imputed interest	(80)		(2)		(70)		—
Lease liabilities	$	125	$	16	$	96	$	6

Schedule of Finance Leases Reported on Consolidated Statement of Financial Position

Finance leases reported on the Consolidated Statements of Financial Position are as follows for the years ended December 31:


	DTE Energy				DTE Electric
	2023		2022		2023		2022
	(In millions)
Right-of-use assets, within Property, plant, and equipment, net	$	18	$	19	$	6	$	6
Current lease liabilities, within Current portion of long-term debt	$	3	$	8	$	2	$	6
Long-term lease liabilities	$	13	$	11	$	4	$	1

Schedule of Lease Income Associated with Operating Leases

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:


	2023		2022		2021
	(In millions)
Fixed payments	$	15	$	15	$	67
Variable payments	44		67		131
	$	59	$	82	$	198

Operating revenues	$	59	$	82	$	103
Other income(a)	—		—		95
	$	59	$	82	$	198

_______________________________________

(a)Decrease in 2022 is due to the closure of the REF business.

Schedule of Minimum Future Rental Revenues under Operating Leases

DTE Energy’s minimum future rental revenues under operating leases for remaining periods as of December 31, 2023 are as follows:


	DTE Energy
	(In millions)
2024	$	15
2025	15
2026	11
2027	10
2028	6
2029 and thereafter	36
	$	93

Schedule of Property under Operating Leases

The following is a summary of property under operating leases for DTE Energy as of December 31:


	2023		2022
	(In millions)
Gross property under operating leases	$	228	$	282
Accumulated amortization of property under operating leases	$	118	$	128

Components of Net Investment in Finance Leases

The components of DTE Energy’s net investment in finance leases for remaining periods as of December 31, 2023 are as follows:


	DTE Energy
	(In millions)
2024	$	34
2025	34
2026	34
2027	34
2028	34
2029 and thereafter	389
Total minimum future lease receipts	559
Residual value of leased pipeline	17
Less unearned income	289
Net investment in finance lease	287
Less current portion	8
	$	279