Related Party Transactions

12 Months Ended

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

DTE Energy enters into related party transactions with certain equity method investees, primarily between DTE Gas and NEXUS. DTE Gas is party to a 15-year capacity lease agreement with NEXUS for the transportation of natural gas. Under the lease agreement, DTE Gas provides firm pipeline capacity in the DTE Gas system in order for NEXUS to provide service to its customers from an interconnect between NEXUS and DTE Gas. NEXUS is charged a fixed daily pipeline reservation charge. DTE Gas operating revenues from this agreement was $32 million and $6 million in 2019 and 2018, respectively. DTE Gas is also party to a 15-year service agreement with NEXUS for the transportation of natural gas. Under the service agreement, NEXUS provides firm pipeline capacity to transport natural gas to service DTE Gas customers. DTE Gas incurs a firm daily pipeline reservation charge, which totaled $21 million and $2 million in 2019 and 2018, respectively. These expenses are included in Fuel, purchased power, and gas - utility on the Consolidated Statements of Operations and are recovered through the GCR mechanism. Other related party transactions with equity method investees include transactions with Vector Pipeline and Millennium Pipeline. These transactions were not material for the years ended December 31, 2019, 2018, and 2017.

DTE Electric has agreements with affiliated companies to sell energy for resale, purchase fuel and power, provide fuel supply services, and provide power plant operation and maintenance services. DTE Electric has agreements with certain DTE Energy affiliates where DTE Electric charges the affiliates for their use of the shared capital assets of DTE Electric. A shared services company accumulates various corporate support services expenses and charges various subsidiaries of DTE Energy, including DTE Electric. DTE Electric records federal, state, and local income taxes payable to or receivable from DTE Energy based on its federal, state, and local tax provisions.

The following is a summary of DTE Electric's transactions with affiliated companies:



	2019		2018		2017
	(In millions)
Revenues
Energy sales	$	10	$	9	$	9
Other services	$	5	$	4	$	4
Shared capital assets	$	47	$	43	$	39
Costs
Fuel and purchased power	$	9	$	7	$	6
Other services and interest	$	23	$	33	$	(2	)
Corporate expenses, net	$	372	$	377	$	370
Other
Dividends declared	$	494	$	461	$	432
Dividends paid	$	494	$	461	$	432
Capital contribution from DTE Energy	$	180	$	325	$	100

DTE Electric's Accounts receivable and Accounts payable related to Affiliates are payable upon demand and are generally settled in cash within a monthly business cycle. Notes receivable and Short-term borrowings related to Affiliates are subject to a credit agreement with DTE Energy whereby short-term excess cash or cash shortfalls are remitted to or funded by DTE Energy. This credit arrangement involves the charge and payment of interest at market-based rates. Refer to DTE Electric's Consolidated Statements of Financial Position for affiliate balances at December 31, 2019 and 2018.

There were no contributions made by DTE Electric to the DTE Energy Foundation for the years ended December 31, 2019 and 2018. There were $7 million in charitable contributions made by DTE Electric to the DTE Energy Foundation for the year ended December 31, 2017. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is to contribute and assist charitable organizations.

See the following notes for other related party transactions impacting DTE Electric’s Consolidated Financial Statements:



Note		Title
1		Organization and Basis of Presentation
21		Retirement Benefits and Trusteed Assets
22		Stock-Based Compensation