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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2023
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:
20232022
Property, plant, and equipment(In millions)
DTE Electric
Zero carbon generation
Nuclear$3,812 $3,684 
Renewables3,074 2,567 
Fossil and other generation4,157 8,789 
Distribution13,673 12,502 
Other3,220 3,049 
Total DTE Electric27,936 30,591 
DTE Gas
Distribution5,838 5,376 
Storage578 607 
Transmission and other1,613 1,534 
Total DTE Gas8,029 7,517 
DTE Vantage1,075 1,059 
Other234 179 
Total DTE Energy$37,274 $39,346 
Accumulated depreciation and amortization
DTE Electric
Zero carbon generation
Nuclear$(479)$(428)
Renewables(524)(426)
Fossil and other generation(1,393)(3,352)
Distribution(3,205)(3,040)
Other(969)(849)
Total DTE Electric(6,570)(8,095)
DTE Gas
Distribution(1,365)(1,330)
Storage(132)(163)
Transmission and other(493)(461)
Total DTE Gas(1,990)(1,954)
DTE Vantage(479)(469)
Other(66)(61)
Total DTE Energy$(9,105)$(10,579)
Net DTE Energy Property, plant, and equipment$28,169 $28,767 
Net DTE Electric Property, plant, and equipment$21,366 $22,496 
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:
202320222021
DTE Electric AFUDC5.53 %5.46 %5.46 %
DTE Gas AFUDC5.41 %5.41 %5.55 %
Non-regulated businesses capitalized interest3.00 %3.00 %3.30 %
The following is a summary of AFUDC and interest capitalized for the years ended December 31:
202320222021
DTE Energy(In millions)
Allowance for debt funds used during construction and interest capitalized$20 $13 $12 
Allowance for equity funds used during construction42 29 27 
Total$62 $42 $39 
202320222021
DTE Electric(In millions)
Allowance for debt funds used during construction$15 $11 $11 
Allowance for equity funds used during construction40 26 25 
Total$55 $37 $36 
Depreciation and Amortization
The composite depreciation rate for DTE Electric was approximately 4.4% in 2023 and 4.2% in 2022 and 2021. The composite depreciation rate for DTE Gas was 2.9% in 2023, 2022 and 2021. The average estimated useful life for each major class of utility Property, plant, and equipment as of December 31, 2023 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:
202320222021
(In millions)
Property, plant, and equipment$1,239 $1,148 $1,095 
Regulatory assets and liabilities344 297 259 
Intangible assets15 16 16 
Other8 7 7 
$1,606 $1,468 $1,377 
The following is a summary of Depreciation and amortization expense for DTE Electric:
202320222021
(In millions)
Property, plant, and equipment$1,029 $951 $890 
Regulatory assets and liabilities292 248 214 
Other5 5 5 
$1,326 $1,204 $1,109 
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,
202320222021
(In millions)
Amortization expense of capitalized software$189 $159 $145 
Gross carrying value of capitalized software$940 $796 
Accumulated amortization of capitalized software$427 $406 
The following balances for capitalized software relate to DTE Electric:
Year Ended December 31,
202320222021
(In millions)
Amortization expense of capitalized software$172 $146 $132 
Gross carrying value of capitalized software$849 $692 
Accumulated amortization of capitalized software$369 $343