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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2022
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:
20222021
Property, plant, and equipment(In millions)
DTE Electric
Zero carbon generation
Nuclear$3,684 $3,394 
Renewables2,567 2,522 
Fossil and other generation8,789 8,640 
Distribution12,502 11,414 
Other3,049 2,879 
Total DTE Electric30,591 28,849 
DTE Gas
Distribution5,376 4,900 
Storage607 593 
Transmission and other1,534 1,415 
Total DTE Gas7,517 6,908 
DTE Vantage1,059 1,118 
Other179 208 
Total DTE Energy$39,346 $37,083 
Accumulated depreciation and amortization
DTE Electric
Zero carbon generation
Nuclear$(428)$(413)
Renewables(426)(357)
Fossil and other generation(3,352)(3,214)
Distribution(3,040)(2,842)
Other(849)(850)
Total DTE Electric(8,095)(7,676)
DTE Gas
Distribution(1,330)(1,265)
Storage(163)(154)
Transmission and other(461)(426)
Total DTE Gas(1,954)(1,845)
DTE Vantage(469)(545)
Other(61)(73)
Total DTE Energy$(10,579)$(10,139)
Net DTE Energy Property, plant, and equipment$28,767 $26,944 
Net DTE Electric Property, plant, and equipment$22,496 $21,173 
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 on the Registrants' Consolidated Statements of Operations. 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:
202220212020
DTE Electric AFUDC5.46 %5.46 %5.47 %
DTE Gas AFUDC5.41 %5.55 %5.56 %
Non-regulated businesses capitalized interest3.00 %3.30 %3.90 %
The following is a summary of AFUDC and interest capitalized for the years ended December 31:
202220212020
DTE Energy(In millions)
Allowance for debt funds used during construction and interest capitalized$13 $12 $11 
Allowance for equity funds used during construction29 27 25 
Total$42 $39 $36 
202220212020
DTE Electric(In millions)
Allowance for debt funds used during construction$11 $11 $10 
Allowance for equity funds used during construction26 25 23 
Total$37 $36 $33 
Depreciation and Amortization
The composite depreciation rate for DTE Electric was approximately 4.2% in 2022, 2021 and 2020. The composite depreciation rate for DTE Gas was 2.9% in 2022 and 2021, and 2.8% in 2020. The average estimated useful life for each major class of utility Property, plant, and equipment as of December 31, 2022 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:
202220212020
(In millions)
Property, plant, and equipment$1,148 $1,095 $1,025 
Regulatory assets and liabilities297 259 244 
Intangible assets16 16 16 
Other7 7 7 
$1,468 $1,377 $1,292 
The following is a summary of Depreciation and amortization expense for DTE Electric:
202220212020
(In millions)
Property, plant, and equipment$951 $890 $831 
Regulatory assets and liabilities248 214 207 
Other5 5 5 
$1,204 $1,109 $1,043 
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 Statements of Financial Position. 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,
202220212020
(In millions)
Amortization expense of capitalized software$159 $145 $128 
Gross carrying value of capitalized software$796 $920 
Accumulated amortization of capitalized software$406 $493 
The following balances for capitalized software relate to DTE Electric:
Year Ended December 31,
202220212020
(In millions)
Amortization expense of capitalized software$146 $132 $118 
Gross carrying value of capitalized software$692 $826 
Accumulated amortization of capitalized software$343 $439