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INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2021
Schedule of composition of intangible assets

   2021  2020
   Historical cost  Accumulated amortization  Residual value  Historical cost  Accumulated amortization  Residual value
In service                              
Useful life defined                              
Temporary easements   15    (5)   10    13    (4)   9 
Onerous concession   13    (8)   5    19    (13)   6 
Assets of concession   21,476    (9,669)   11,807    20,781    (9,107)   11,674 
Assets of concession - GSF   1,032    (66)   966    —    —    — 
Others   78    (74)   4    78    (70)   8 
    22,614    (9,822)   12,792    20,891    (9,194)   11,697 
In progress   161    —    161    113    —    113 
Net intangible assets   22,775    (9,822)   12,953    21,004    (9,194)   11,810 
Schedule of changes in intangible assets

Changes in Intangible assets are as follow:

 

   2020  Additions  Disposals  Amortization  Transfers (1)  2021
In service                              
Useful life defined                              
Temporary easements   9    —    —    (1)   2    10 
Onerous concession   6    —    —    (1)   —    5 
Assets of concession   11,674    —    (23)   (757)   913    11,807 
Assets of concession - GSF   —    1,032    —    (66)   —    966 
Others   8    —    —    (4)   —    4 
    11,697    1,032    (23)   (829)   915    12,792 
In progress   113    51    —    —   (3)   161 
Net intangible assets    11,810    1,083    (23)   (829)   912    12,953 

 

(1)The transfers were made between concession contract assets to Intangible assets: R$902.

 

   2019  Additions  Disposals (1)  Amortization  Transfers (2)  2020
In service                              
Useful life defined                              
Temporary easements   8    —      —      —      1    9 
Onerous concession   7    —      —      (1)   —      6 
Assets of concession   11,517    —      (24)   (738)   919    11,674 
Others   10    —      —      (5)   3    8 
    11,542    —      (24)   (744)   923    11,697 
In progress   82    41    —      —      (10)   113 
Net intangible assets   11,624    41    (24)   (744)   913    11,810 

 

(1)      This includes the impairment reversal, in the amount of R$14, recognized in the Income Statement under “Other expenses”, as a result of the test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, on December 31, 2020. More information is available on this note.

(2)      The transfers were made between Intangible assets, concession contract assets, financial assets and property, plant and equipment are as follows: (1) R$906 from concession contract assets to intangible assets; (2) R$2 from property, plant and equipment to intangible assets; and (3) R$5 from concession financial asset to intangible assets.

 

   2018  Additions  Disposals (1)  Amortization  Transfers (2)  2019
In service                              
Useful life defined                              
Temporary easements   9    —      —      (1)   —      8 
Onerous concession   7    —      —      —      —      7 
Assets of concession   10,680    891    (41)   (698)   685    11,517 
Others   18    7    —      (5)   (10)   10 
    10,714    898    (41)   (704)   675    11,542 
In progress   63    36    —      —      (17)   82 
Net intangible assets   10,777    934    (41)   (704)   658    11,624 

 

  (1)This includes the impairment, in the amount of R$22 recognized in the Income Statement under “Other expenses”. The test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, recognized in 2018 as part of the its business combination, arises from non-achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. The Value in Use of the assets was calculated based on the projection of future expected cash flows for the operation of the assets of the subsidiary, brought to present value by the weighted average cost of capital defined for the company’s activity, using the Firm Cash Flow (FCFF) methodology.
(2)The transfers were made between Intangible assets, concession contract assets and property, plant and equipment are as follows: (1) R$685 from concession contract assets to intangible assets; (2) (R$4) from intangible assets to property, plant and equipment and; and (3) (R$23) from intangible assets to concession financial assets.
The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows:

The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows:

 

Energy  (%)  Administration  (%)
System cable – below 69 KV   6.67   Software   20.00 
System cable – below 69 KV   3.57   Vehicles   14.29 
Structure – Posts   3.57   General equipment   6.25 
Overhead distribution transformer   4.00   Buildings   3.33 
Circuit breaker – up to 69 kV   3.03         
Capacitor bank – up to 69 kV   6.67         
Voltage regulator – up to 69 kV   4.35         

 

          
Gas  (%)  Administration  (%)
Tubing   3.33   Software   20.00 
Buildings, works and improvements   4.00   Vehicles   20.00 
Improvements in leased properties   10.00   Data processing equipment   20.00 
Machinery and equipment   5.00 a 20.00   Furniture   10.00 

 

The annual average amortization rate is 3.94%. The segregation by activity is as follows:

 

Hydroelectric Generation  Wind Power Generation  Gas  Distribution  Administration
 7.44%   8.81%   3.33%   3.83%   15.82%
Schedule of power plant

 

Power Plant  Intangible assets – Right to extension of concession  End of concession  Extension in years  New end of concession
Cemig Geração Camargos   9    01/05/2046    7    01/03/2053 
Cemig Geração Itutinga   8    01/05/2046    7    01/03/2053 
Cemig Geração Leste   —                  
Dona Rita   —      07/03/2046    4    07/19/2050 
Ervalia   —      07/03/2046    0.8    04/19/2047 
Neblina   —      07/03/2046    0.8    04/19/2047 
Peti   —      01/05/2046    7    01/03/2053 
Sinceridade   —      07/03/2046    0.7    03/12/2047 
Tronqueiras   —      01/05/2046    1    12/26/2046 
Cemig Geração Oeste   —                  
Cajuru (Cemig)   —      01/05/2046    7    01/03/2053 
Cemig Geração Salto Grande   40    01/05/2046    7    01/03/2053 
Cemig Geração Sul   2                
Coronel Domiciano   —      07/03/2046    0.8    04/11/2047 
Joasal   1    01/05/2046    7    01/03/2053 
Marmelos   —      01/05/2046    7    01/03/2053 
Paciencia   —      01/05/2046    7    01/03/2053 
Piau   1    01/05/2046    7    01/03/2053 
Cemig Geração Três Marias   116    01/05/2046    7    01/03/2053 
Cemig Poço Fundo   1    05/29/2045    7    05/27/2052 
Cemig PCH (Pai Joaquim)   —      04/04/2032    0.4    09/14/2032 
Horizontes   —                  
Machado Mineiro   —      07/08/2025    1.9    05/21/2027 
Rosal   9    05/08/2032    3.6    12/13/2035 
Sá Carvalho   39    12/01/2024    1.7    08/27/2026 
Total   226                
Nova Ponte   255    07/23/2025    2.1    08/11/2027 
Irapé   105    02/28/2035    2.6    09/18/2037 
Queimado   19    12/18/2032    1.8    06/26//2034
Sao Bernardo (Cemig)   1    08/19/2025    1.9    06/27/2027 
Emborcação   426    07/23/2025    1.8    05/26/2027 
Total Cemig GT   806                
Total (R$)   1,032                
Schedule of power plant offer for tender

 Schedule of power plant offer for tender

Cemig Geração - Plant re-offered for tender  Amount
São Simão   783 
Miranda   145 
Jaguara   237 
Volta Grande   157 
Total   1,322