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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment PROPERTY, PLANT, AND EQUIPMENT
The following is a summary of Property, plant, and equipment by classification as of December 31:
20212020
Property, plant, and equipment(In millions)
DTE Electric
Zero carbon generation
Nuclear$3,394 $3,295 
Renewables2,522 1,817 
Fossil and other generation8,640 8,031 
Distribution11,414 10,354 
Other2,879 2,674 
Total DTE Electric28,849 26,171 
DTE Gas
Distribution4,900 4,517 
Storage593 576 
Transmission and other1,415 1,341 
Total DTE Gas6,908 6,434 
DTE Vantage1,118 1,194 
Other208 217 
Total DTE Energy$37,083 $34,016 
Accumulated depreciation and amortization
DTE Electric
Zero carbon generation
Nuclear$(413)$(373)
Renewables(357)(295)
Fossil and other generation(3,214)(3,014)
Distribution(2,842)(2,686)
Other(850)(682)
Total DTE Electric(7,676)(7,050)
DTE Gas
Distribution(1,265)(1,215)
Storage(154)(146)
Transmission and other(426)(403)
Total DTE Gas(1,845)(1,764)
DTE Vantage(545)(619)
Other(73)(84)
Total DTE Energy$(10,139)$(9,517)
Net DTE Energy Property, plant, and equipment$26,944 $24,499 
Net DTE Electric Property, plant, and equipment$21,173 $19,121 
AFUDC and Capitalized Interest
AFUDC represents the cost of financing construction projects for regulated businesses, including the estimated cost of debt and authorized return-on-equity. The debt component is recorded as a reduction to interest expense and the equity component is recorded as other income. Non-regulated businesses record capitalized interest as a reduction to interest expense.
The AFUDC and capitalized interest rates were as follows for the years ended December 31:
202120202019
DTE Electric AFUDC5.46 %5.47 %5.43 %
DTE Gas AFUDC5.55 %5.56 %5.56 %
Non-regulated businesses capitalized interest3.30 %3.90 %4.00 %
The following is a summary of AFUDC and interest capitalized for the years ended December 31:
202120202019
DTE Energy(In millions)
Allowance for debt funds used during construction and interest capitalized$12 $11 $14 
Allowance for equity funds used during construction27 25 24 
Total$39 $36 $38 
202120202019
DTE Electric(In millions)
Allowance for debt funds used during construction$11 $10 $10 
Allowance for equity funds used during construction25 23 22 
Total$36 $33 $32 
Depreciation and Amortization
The composite depreciation rate for DTE Electric was approximately 4.2%, 4.2%, and 4.0% in 2021, 2020 and 2019, respectively. The composite depreciation rate for DTE Gas was 2.9%, 2.8%, and 2.7% in 2021, 2020, and 2019, respectively. The average estimated useful life for each major class of utility Property, plant, and equipment as of December 31, 2021 follows:
Estimated Useful Lives in Years
UtilityGenerationDistributionStorage
DTE Electric3438N/A
DTE GasN/A4958
The estimated useful lives for DTE Electric's Other utility assets range from 3 to 80 years, while the estimated useful lives for DTE Gas' Transmission and other utility assets range from 3 to 80 years. The estimated useful lives for major classes of DTE Energy's non-utility assets and facilities range from 3 to 50 years.
The following is a summary of Depreciation and amortization expense for DTE Energy:
202120202019
(In millions)
Property, plant, and equipment$1,095 $1,025 $927 
Regulatory assets and liabilities259 244 227 
Intangible assets16 16 9 
Other7 7 6 
$1,377 $1,292 $1,169 
The following is a summary of Depreciation and amortization expense for DTE Electric:
202120202019
(In millions)
Property, plant, and equipment$890 $831 $748 
Regulatory assets and liabilities214 207 193 
Other5 5 5 
$1,109 $1,043 $946 
Capitalized Software
Capitalized software costs are classified as Property, plant, and equipment and the related amortization is included in accumulated depreciation and amortization on the Registrants' Consolidated Financial Statements. The Registrants capitalize the costs associated with computer software developed or obtained for use in their businesses. The Registrants amortize capitalized software costs on a straight-line basis over the expected period of benefit, ranging from 3 to 15 years for both DTE Energy and DTE Electric.
The following balances for capitalized software relate to DTE Energy:
Year Ended December 31,
202120202019
(In millions)
Amortization expense of capitalized software$145 $128 $122 
Gross carrying value of capitalized software$920 $863 
Accumulated amortization of capitalized software$493 $430 
The following balances for capitalized software relate to DTE Electric:
Year Ended December 31,
202120202019
(In millions)
Amortization expense of capitalized software$132 $118 $112 
Gross carrying value of capitalized software$826 $756 
Accumulated amortization of capitalized software$439 $363