Property, Plant and Equipment

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)
Electric
Generation	$	10,383		$	9,785
Distribution	7,306			7,003
Total Electric	17,689			16,788
Gas
Distribution	2,735			2,561
Storage	434			406
Other	852			902
Total Gas	4,021			3,869
Non-utility and other	1,921			1,884
Total	23,631			22,541
Less Accumulated Depreciation, Depletion and Amortization
Electric
Generation	(3,880		)	(3,946		)
Distribution	(2,837		)	(2,580		)
Total Electric	(6,717		)	(6,526		)
Gas
Distribution	(1,075		)	(1,041		)
Storage	(133		)	(127		)
Other	(363		)	(413		)
Total Gas	(1,571		)	(1,581		)
Non-utility and other	(659		)	(688		)
Total	(8,947		)	(8,795		)
Net Property, Plant and Equipment	$	14,684		$	13,746

The Allowance for Funds used During Construction (AFUDC) capitalized was approximately $20 million and $10 million during 2012 and 2011, respectively.

The composite depreciation rate for DTE Electric was approximately 3.3% in 2012, 2011 and 2010. The composite depreciation rate for DTE Gas was 2.4% in 2012, 2.3% in 2011 and 2.5% in 2010.

The average estimated useful life for each major class of utility property, plant and equipment as of December 31, 2012 follows:

The estimated useful lives for major classes of non-utility assets and facilities ranges from 3 to 55 years.

Capitalized software costs are classified as Property, plant and equipment and the related amortization is included in Accumulated depreciation, depletion 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 3 to 15 years.

Capitalized software costs amortization expense was $75 million in 2012 and $65 million in 2011 and 2010. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2012 were $561 million and $295 million, respectively. The gross carrying amount and accumulated amortization of capitalized software costs at December 31, 2011 were $623 million and $300 million, respectively. Amortization expense of capitalized software costs is estimated to be approximately $46 million annually for 2013 through 2017.

Gross property under capital leases was $32 million and $57 million at December 31, 2012 and December 31, 2011, respectively. Accumulated amortization of property under capital leases was $3 million and $34 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.

+ References+ Details

Estimated Useful Lives in Years

Generation

Distribution