DTE Energy 2012 Annual Report Download - page 76

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Table of Contents


The average estimated useful life for each major class of utility property, plant and equipment as of December 31, 2012 follows:





Electric
40
41
N/A
Gas
N/A
50
53
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.

DTE Electric has joint ownership interest in two power plants, Belle River and Ludington Hydroelectric Pumped Storage. DTE Electric’s share of direct
expenses of the jointly owned plants are included in Fuel, purchased power and gas and Operation and maintenance expenses in the Consolidated Statements
of Operations. Ownership information of the two utility plants as of December 31, 2012 was as follows:




In-service date 1984-1985
1973
Total plant capacity 1,270 MW
1,872 MW
Ownership interest (a)
49%
Investment (in millions) $1,661
$199
Accumulated depreciation (in millions) $ 953
$164
_______________________________________
(a) DTE Electric's ownership interest is 63% in Unit No. 1, 81% of the facilities applicable to Belle River used jointly by the Belle River and St. Clair Power Plants and 75% in
common facilities used at Unit No. 2.
Belle River
The Michigan Public Power Agency (MPPA) has an ownership interest in Belle River Unit No. 1 and other related facilities. The MPPA is entitled to
19% of the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance and capital improvement
costs.
Ludington Hydroelectric Pumped Storage
Consumers Energy Company has an ownership interest in the Ludington Hydroelectric Pumped Storage Plant. Consumers Energy is entitled to 51% of
the total capacity and energy of the plant and is responsible for the same percentage of the plant’s operation, maintenance and capital improvement costs.
74