DTE Energy 2014 Annual Report Download - page 67

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Capitalized software costs amortization expense was $77 million in 2014, $71 million in 2013 and $68 million in 2012. The gross carrying amount and
accumulated amortization of capitalized software costs at December 31, 2014 were $668 million and $335 million, respectively. The gross carrying amount
and accumulated amortization of capitalized software costs at December 31, 2013 were $611 million and $323 million, respectively.
Gross property under capital leases was $35 million at December 31, 2014 and 2013. Accumulated amortization of property under capital leases was
$27 million and $21 million at December 31, 2014 and 2013, respectively.
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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, 2014 was as follows:
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In-service date 1984-1985
1973
Total plant capacity 1,270 MW
1,872 MW
Ownership interest (a)
49%
Investment in property, plant and equipment (in millions) $ 1,742
$ 412
Accumulated depreciation (in millions) $ 993
$ 175
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(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.
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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.
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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.
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The Company has a legal retirement obligation for the decommissioning costs for its Fermi 1 and Fermi 2 nuclear plants, dismantlement of facilities
located on leased property and various other operations. The Company has conditional retirement obligations for gas pipelines, asbestos and PCB removal at
certain of its power plants and various distribution equipment. The Company recognizes such obligations as liabilities at fair market value when they are
incurred, which generally is at the time the associated assets are placed in service. Fair value is measured using expected future cash outflows discounted at
our credit-adjusted risk-free rate. In its regulated operations, the Company recognizes regulatory assets or liabilities for timing differences in expense
recognition for legal asset retirement costs that are currently recovered in rates.
If a reasonable estimate of fair value cannot be made in the period in which the retirement obligation is incurred, such as for assets with indeterminate
lives, the liability is recognized when a reasonable estimate of fair value can be made. Natural gas storage system assets, substations, manholes and certain
other distribution assets have an indeterminate life. Therefore, no liability has been recorded for these assets.
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