Property, Plant and Equipment (Notes)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

PROPERTY, PLANT AND EQUIPMENT

Summary of property by classification as of December 31:



	2012			2011
Property, Plant and Equipment	(In millions)
Generation	$	10,383		$	9,785
Distribution	7,306			7,003
Total	17,689			16,788
Less Accumulated Depreciation and Amortization
Generation	(3,880		)	(3,946		)
Distribution	(2,837		)	(2,580		)
Total	(6,717		)	(6,526		)
Net Property, Plant and Equipment	$	10,972		$	10,262

The Allowance for Funds used During Construction (AFUDC) capitalized during 2012 and 2011 was approximately $19 million and $9 million, respectively.

The composite depreciation rate for DTE Electric was approximately 3.3% in 2012, 2011 and 2010.

The average estimated useful life for our generation and distribution property was 40 years and 41 years, respectively, at December 31, 2012.

Capitalized software costs are classified as Property, plant and equipment and the related amortization is included in Accumulated depreciation and amortization on the Consolidated Statements of Financial Position. The Company capitalizes the costs associated with computer software it develops or obtains for use in its business. The Company amortizes capitalized software costs on a straight-line basis over the expected period of benefit, ranging from 5 to 15 years.

Capitalized software costs amortization expense was $62 million in 2012, $58 million in 2011 and $55 million in 2010. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2012 were $479 million and $245 million, respectively. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2011 were $501 million and $218 million, respectively. Amortization expense of capitalized software costs is estimated to be approximately $40 million annually for 2013 through 2017.

Gross property under capital leases was $6 million and $26 million at December 31, 2012 and December 31, 2011, respectively. Accumulated amortization of property under capital leases was $3 million and $14 million at December 31, 2012 and December 31, 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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