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PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2021
PROPERTY, PLANT AND EQUIPMENT |
| 17. | PROPERTY, PLANT AND EQUIPMENT
Schedule of movement in property, plant and equipment
|  | 2021 |  | 2020
|  | Historical cost |  | Accumulated depreciation |  | Net value |  | Historical cost |  | Accumulated depreciation |  | Net value
In service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 246 |  |  |  | (26 | ) |  |  | 220 |  |  |  | 247 |  |  |  | (23 | ) |  |  | 224 |
Reservoirs, dams and watercourses |  |  | 3,296 |  |  |  | (2,352 | ) |  |  | 944 |  |  |  | 3,300 |  |  |  | (2,280 | ) |  |  | 1,020 |
Buildings, works and improvements |  |  | 1,086 |  |  |  | (838 | ) |  |  | 248 |  |  |  | 1,100 |  |  |  | (836 | ) |  |  | 264 |
Machinery and equipment |  |  | 2,673 |  |  |  | (1,976 | ) |  |  | 697 |  |  |  | 2,647 |  |  |  | (1,930 | ) |  |  | 717 |
Vehicles |  |  | 20 |  |  |  | (19 | ) |  |  | 1 |  |  |  | 21 |  |  |  | (19 | ) |  |  | 2 |
Furniture and utensils |  |  | 14 |  |  |  | (11 | ) |  |  | 3 |  |  |  | 14 |  |  |  | (11 | ) |  |  | 3 |
|  |  | 7,335 |  |  |  | (5,222 | ) |  |  | 2,113 |  |  |  | 7,329 |  |  |  | (5,099 | ) |  |  | 2,230 |
In progress |  |  | 306 |  |  |  | — |  |  |  | 306 |  |  |  | 177 |  |  |  | — |  |  |  | 177 |
Net property, plant and equipment |  |  | 7,641 |  |  |  | (5,222 | ) |  |  | 2,419 |  |  |  | 7,506 |  |  |  | (5,099 | ) |  |  | 2,407 |
Changes in PP&E are as follows:
|  | 2020 |  | Additions |  | Disposals |  | Depreciation |  | Reversal of provision (2) |  | Transfers / capitalizations |  | 2021
In service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land (1) |  |  | 224 |  |  |  | — |  |  |  | (1 | ) |  |  | (3 | ) |  |  | — |  |  |  | — |  |  |  | 220 |
Reservoirs, dams and watercourses |  |  | 1,020 |  |  |  | — |  |  |  | — |  |  |  | (81 | ) |  |  | — |  |  |  | 5 |  |  |  | 944 |
Buildings, works and improvements |  |  | 264 |  |  |  | — |  |  |  | — |  |  |  | (17 | ) |  |  | — |  |  |  | 1 |  |  |  | 248 |
Machinery and equipment |  |  | 717 |  |  |  | — |  |  |  | (14 | ) |  |  | (69 | ) |  |  | — |  |  |  | 63 |  |  |  | 697 |
Vehicles |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | 1 |
Furniture and utensils |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |
|  |  | 2,230 |  |  |  | — |  |  |  | (15 | ) |  |  | (171 | ) |  |  | — |  |  |  | 69 |  |  |  | 2,113 |
In progress |  |  | 177 |  |  |  | 182 |  |  |  | — |  |  |  | — |  |  |  | 16 |  |  |  | (69 | ) |  |  | 306 |
Net property, plant and equipment |  |  | 2,407 |  |  |  | 182 |  |  |  | (15 | ) |  |  | (171 | ) |  |  | 16 |  |  |  | — |  |  |  | 2,419 |
| (1) | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession.
| (2) | Reversal of a provision previously recognized for impairment of works in progress assets with expectation of partial or total cancellation, due to the Company’s withdrawn of a previously agreed consortium
|  | 2019 |  | Additions |  | Disposals (3) |  | Depreciation |  | Transfers / capitalizations (2) |  | 2020
In service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land (1) |  |  | 229 |  |  |  | — |  |  |  | (1 | ) |  |  | (4 | ) |  |  | — |  |  |  | 224 |
Reservoirs, dams and watercourses |  |  | 1,080 |  |  |  | — |  |  |  | — |  |  |  | (80 | ) |  |  | 20 |  |  |  | 1,020 |
Buildings, works and improvements |  |  | 274 |  |  |  | — |  |  |  | — |  |  |  | (18 | ) |  |  | 8 |  |  |  | 264 |
Machinery and equipment |  |  | 729 |  |  |  | 20 |  |  |  | (2 | ) |  |  | (79 | ) |  |  | 49 |  |  |  | 717 |
Vehicles |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |
Furniture and utensils |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |
|  |  | 2,317 |  |  |  | 20 |  |  |  | (3 | ) |  |  | (181 | ) |  |  | 77 |  |  |  | 2,230 |
In progress |  |  | 133 |  |  |  | 112 |  |  |  | 11 |  |  |  | — |  |  |  | (79 | ) |  |  | 177 |
Net property, plant and equipment |  |  | 2,450 |  |  |  | 132 |  |  |  | 8 |  |  |  | (181 | ) |  |  | (2 | ) |  |  | 2,407 |
| (1) | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession.
| (2) | Balances of R$2 were transferred to Intangible assets from PP&E.
| (3) | Includes the impairment loss recognized for assets in progress.
|  | 2018 |  | Additions |  | Disposals |  | Depreciation |  | Transfers / capitalizations (2) |  | 2019
In service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land (1) |  |  | 215 |  |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | 17 |  |  |  | 229 |
Reservoirs, dams and watercourses |  |  | 1,150 |  |  |  | — |  |  |  | (4 | ) |  |  | (80 | ) |  |  | 14 |  |  |  | 1,080 |
Buildings, works and improvements |  |  | 314 |  |  |  | — |  |  |  | (5 | ) |  |  | (19 | ) |  |  | (16 | ) |  |  | 274 |
Machinery and equipment |  |  | 854 |  |  |  | — |  |  |  | (81 | ) |  |  | (78 | ) |  |  | 34 |  |  |  | 729 |
Vehicles |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | — |  |  |  | 2 |
Furniture and utensils |  |  | 4 |  |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | 3 |
|  |  | 2,542 |  |  |  |  |  |  |  | (91 | ) |  |  | (183 | ) |  |  | 49 |  |  |  | 2,317 |
In progress |  |  | 120 |  |  |  | 70 |  |  |  | (12 | ) |  |  | — |  |  |  | (45 | ) |  |  | 133 |
Net property, plant and equipment |  |  | 2,662 |  |  |  | 70 |  |  |  | (103 | ) |  |  | (183 | ) |  |  | 4 |  |  |  | 2,450 |
| (1) | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession.
| (2) | Balances of R$4 were transferred between Intangible assets, concession contract assets and PP&E.
Depreciation rates, which take into consideration the expected useful life of the assets, are revised annually by Management and are as follows: Schedule of summary of property plant and equipment depreciation rate
Generation |  | (%) |  | Administration |  | (%)
Reservoirs, dams and watercourses |  |  | 2 |  |  | Software |  |  | 20 |
Buildings — Machine room |  |  | 2 |  |  | Vehicles |  |  | 14.29 |
Buildings — Other |  |  | 3.33 |  |  | IT equipment in general |  |  | 16.67 |
Generator |  |  | 3.33 |  |  | General equipment |  |  | 6.25 |
Water turbine |  |  | 2.5 |  |  | Buildings — Other |  |  | 3.33 |
Pressure tunnel |  |  | 3.13 |  |  |  |  |  |  |
Command station, panel and cubicle |  |  | 3.57 |  |  |  |  |  |  |
Floodgate |  |  | 3.33 |  |  |  |  |  |  |
The average annual depreciation rate for the year 2021 is 3.33% (3.14% in 2020 and 3.13% in 2019). The segregation by activity is as follows:
Hydroelectric Generation |  | Wind Power Generation |  | Administration
| 3.14 | % |  |  | 5.20 | % |  |  | 6.35 | %
The Company has not identified any evidence of impairment of its Property, plant and equipment assets. The generation concession contracts provide that at the end of each concession the grantor must determine the amount to be indemnified to the Company for the residual value. Management believes that the amount ultimately received will be higher than the historical residual value. The residual value of the assets is the residual balance of the assets at the end of the concession contract which will be transferred to the grantor at the end of the concession contract and for which Cemig is entitled to receive in cash. For contracts under which Cemig does not have a right to receive such amounts or there is uncertainty related to collection of the amounts, such as in the case of thermal generation and hydroelectric generation as an independent power producer, no residual value is recognized, and the depreciation rates are adjusted so that all the assets are depreciated within the concession term. Consortium The Company is a partner in an energy generation consortium for the Queimado plant, for which no separate company with independent legal existence was formed to manage the object of the concession. The Company’s portion in the consortium is recorded and controlled individually in the respective categories of PP&E and Intangible assets. Schedule of consortium
|  | Stake in power output (%) |  | Average annual depreciation rate (%) |  | 2021 |  | 2020
In service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Queimado Power Plant |  |  | 82.50 |  |  |  | 3.94 |  |  |  | 220 |  |  |  | 218 |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |  | (127 | ) |  |  | (117 | )
Total in service |  |  |  |  |  |  |  |  |  |  | 93 |  |  |  | 101 |
In progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Queimado Power Plant |  |  | 82.50 |  |  |  | — |  |  |  | — |  |  |  | 2 |
Total in progress |  |  |  |  |  |  |  |  |  |  | — |  |  |  | 2 |
Total |  |  |  |  |  |  |  |  |  |  | 93 |  |  |  | 103 |

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- Definition The entire disclosure for property, plant and equipment. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 16 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=16&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IAS16_g73-79_TI -URIDate 2021-03-24 + Details
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Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration