DTE Energy
DTE
#926
Rank
$25.89 B
Marketcap
$124.45
Share price
0.96%
Change (1 day)
-11.11%
Change (1 year)
DTE Energy is an American diversified energy company involved in the development and management of energy-related businesses and services
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<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TR><TD colspan="9"><A HREF="#000">DEFINITIONS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;1 &#151; Business.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;2 &#151; Properties.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Item&nbsp;3 &#151; Legal Proceedings.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Item&nbsp;6 &#151; Selected Financial Data.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Item&nbsp;8 &#151; Financial Statements and Supplementary Data.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">Item&nbsp;9 &#151; Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">PART III</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#010">Items 10, 11, 12 and 13</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">Annual Report on Form&nbsp;10-K for The Detroit Edison Company<BR>
PART I</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#012">Item&nbsp;1 &#151; Business.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#013">Item&nbsp;2 &#151; Properties.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#014">Item&nbsp;3 &#151; Legal Proceedings.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#015">Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">PART II</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#017">Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#018">Item&nbsp;6 &#151; Selected Financial Data.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#019">Item&nbsp;7 &#151; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#020">Item&nbsp;8 &#151; Financial Statements and Supplementary Data.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#021">Item&nbsp;9 -Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">PART III</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#023">Items 10, 11, 12 and 13</A></TD></TR>
<TR><TD colspan="9"><A HREF="#024">Annual Reports on Form&nbsp;10-K for DTE Energy Company<BR>
and The Detroit Edison Company</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">PART IV</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#026">Item&nbsp;14 &#151; Exhibits, Financial Statement Schedules and Reports on Form&nbsp;8-K.</A></TD></TR>
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<P align="center"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>

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<P align="center"><FONT size="3"><B>FORM 10-K<BR>
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934<BR>
For the fiscal year ended December&nbsp;31, 1999</B></FONT>

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<TD nowrap align="center"><FONT size="2"><B>Commission</B></FONT></TD>
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<TD nowrap align="center"><FONT size="2"><B>Registrants; State of Incorporation;</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>I.R.S. Employer</B></FONT></TD>
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<TD nowrap align="center"><FONT size="2"><B>File Number</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Address; and Telephone Number</B></FONT></TD>
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<TD nowrap align="center"><FONT size="2"><B>Identification No.</B></FONT></TD>
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<TD valign="top"><FONT size="2">1-11607</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company<BR>
(a Michigan corporation)<BR>
2000 2nd Avenue<BR>
Detroit, Michigan 48226-1279<BR>
313-235-4000
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">38-3217752</FONT></TD>

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<TR><TD><TR><TD><TR><TD><TR><TD>
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<TD valign="top"><FONT size="2">1-2198</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company<BR>
(a Michigan corporation)<BR>
2000 2nd Avenue<BR>
Detroit, Michigan 48226-1279<BR>
313-235-8000
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">38-0478650</FONT></TD>
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<P>Securities registered pursuant to Section&nbsp;12(b) of the Act:

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<TD nowrap align="center"><FONT size="2"><B>Title of each class</B></FONT></TD>
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<TD nowrap align="center"><FONT size="2"><B>Name of each exchange on which registered</B></FONT></TD>
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<TD valign="top"><FONT size="2"><B>DTE Energy Company</B><BR>
</FONT></TD>
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<TR><TD><TR><TD><TR><TD><TR><TD>
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<TD valign="top"><FONT size="2">Common Stock, without par value, with contingent preferred<BR>
stock purchase rights</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
New York and Chicago Stock Exchanges</FONT></TD>
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<TD width="18%">&nbsp;</TD>
<TR><TD><TR><TD><TR><TD><TR><TD>
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<TD valign="top"><FONT size="2"><B>The Detroit Edison Company</B><BR>
</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
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<TD valign="top"><FONT size="2">Quarterly Income Debt Securities (QUIDS)
(Junior Subordinated Deferrable Interest Debentures
- - 7.625%, 7.54% and 7.375% Series)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
New York Stock Exchange</FONT></TD>
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<P>Securities registered pursuant to Section&nbsp;12(g) of the Act:

<P align="center"><B>None</B>

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<P align="center"><FONT size="3"><B>(Title of Class)</B></FONT>

<P>Indicate by check mark whether the registrants (1)&nbsp;have filed all reports required to be filed by Section&nbsp;13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for such shorter period that the registrants
were required to file such reports), and (2)&nbsp;have been subject to such filing requirements for the past 90&nbsp;days. <B>Yes X
No __</B>

<P>Indicate by check mark if disclosure of delinquent filers pursuant to Item&nbsp;405 of Regulation&nbsp;S-K is not contained
herein, and will not be contained, to the best of registrants&#146; knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form&nbsp;10-K or any amendment to this Form&nbsp;10-K. <B>[ X ]</B>

<P>At January&nbsp;31, 2000, 145,036,824 shares of DTE Energy&#146;s Common Stock, substantially all held by non-affiliates, were
outstanding, with an aggregate market value of approximately $5.04&nbsp;billion based upon the closing price on the New York
Stock Exchange.

<P align="center"><B>DOCUMENTS INCORPORATED BY REFERENCE</B>

<P>Certain information in DTE Energy Company&#146;s definitive Proxy Statement for its 2000 Annual Meeting of Common
Shareholders to be held April&nbsp;14, 2000, which will be filed with the Securities and Exchange Commission pursuant to
Regulation&nbsp;14A, not later than 120&nbsp;days after the end of the Registrants&#146; fiscal year covered by this report on Form
10-K, is incorporated herein by reference to Part III (Items 10, 11, 12 and 13) of this Form&nbsp;10-K.

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<P align="center"><B>DTE Energy Company<BR>
and<BR>
The Detroit Edison Company<BR>
FORM 10-K<BR>
Year Ended December&nbsp;31, 1999</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains the Annual Reports on Form&nbsp;10-K for the fiscal year
ended December&nbsp;31, 1999 for each of DTE Energy Company and The Detroit Edison
Company. Information contained herein relating to an individual registrant is
filed by such registrant on its own behalf. Accordingly, except for its
subsidiaries, The Detroit Edison Company makes no representation as to
information relating to DTE Energy Company or any other companies affiliated
with DTE Energy Company.

<P align="center"><B>INDEX</B>

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<TD></TD>
<TD colspan="3"><HR size="1"></TD>
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<TR valign="bottom">
<TD colspan="3"><FONT size="2">Definitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Annual Report on
Form&nbsp;10-K for DTE Energy Company:</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part&nbsp;I &#151; Item&nbsp;1 - Business</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;2 - Properties</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">13</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;3 - Legal Proceedings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">14</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;4 - Submission of Matters to a Vote of Security Holders</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part&nbsp;II &#151; Item&nbsp;5 - Market for Registrant&#146;s Common Equity and Related
Stockholder Matters</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;6 - Selected Financial Data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">17</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;7 - Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;7A-Quantitative and Qualitative Disclosures About Market
Risk (Included in Item&nbsp;7)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;8 - Financial Statements and Supplementary Data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">30</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;9 - Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">71</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part&nbsp;III &#151; Items 10, 11, 12 and 13 - (Incorporated by
reference from DTE Energy Company&#146;s definitive
Proxy Statement which will be filed with the
Securities and Exchange Commission, pursuant to
Regulation&nbsp;14A, not later
than 120&nbsp;days after the end of the fiscal year)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">71</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Annual Report on
Form&nbsp;10-K for The Detroit Edison Company:</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part&nbsp;I &#151; Item&nbsp;1 - Business</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">72</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;2 - Properties</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">73</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;3 - Legal Proceedings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">73</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;4 - Submission of Matters to a Vote of Security Holders</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">73</FONT></TD>
<TD></TD>
</TR>
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<P align="center">2
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<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="82%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part II &#151; Item&nbsp;5 - Market for Registrant&#146;s Common Equity and Related
Stockholder Matters</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">73</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;6 - Selected Financial Data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">74</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;7 - Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">74</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;8 - Financial Statements and Supplementary Data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">74</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;9 - Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part III &#151; Item&nbsp;10 - Directors and Executive Officers of the Registrant</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;11 - Executive Compensation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;12 - Security Ownership of Certain Beneficial Owners and
Management</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Item&nbsp;13 - Certain Relationships and Related Transactions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Annual Reports on Form&nbsp;10-K for DTE Energy Company and
The Detroit Edison Company:</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Part IV &#151; Item&nbsp;14 - Exhibits, Financial Statement Schedules and Reports
on Form&nbsp;8-K</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">78</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Signature Page to DTE Energy Company Annual Report on Form&nbsp;10-K</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">91</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Signature Page to The Detroit Edison Company Annual Report on Form&nbsp;10-K</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">92</FONT></TD>
<TD></TD>
</TR>
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<P align="center">3
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<DIV align="left"><A name="000"></A></DIV>
<P align="center"><B>DEFINITIONS</B>

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<TR valign="bottom">
<TD width="14%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>
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<TD valign="top"><FONT size="2">Company</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company and Subsidiary Companies</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consumers</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Consumers Energy Company (a wholly owned subsidiary of
CMS Energy Corporation)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Detroit Edison</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company (a wholly owned subsidiary of
DTE Energy Company) and Subsidiary Companies</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">DTE Capital</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Capital Corporation (a wholly owned subsidiary of DTE Energy Company)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Electric Choice</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Gives all retail customers equal opportunity to utilize the transmission system which results in
access to competitive generation resources</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">EPA</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
United States Environmental Protection Agency</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">FERC</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Federal Energy Regulatory Commission</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">kWh</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Kilowatthour</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Ludington</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Ludington Hydroelectric Pumped Storage Plant (owned jointly<BR>
with Consumers)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">MCN</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
MCN Energy Group Inc.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">MDEQ</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Michigan Department of Environmental Quality</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">MPSC</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Michigan Public Service Commission</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">MW</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Megawatt</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">MWh</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Megawatt hour</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Note(s)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Note(s) to Consolidated Financial Statements of the Company
and Detroit Edison</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">NRC</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Nuclear Regulatory Commission</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">PSCR</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Power Supply Cost Recovery</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Registrant</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Company or Detroit Edison, as the case may be</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">SALP</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Systematic Assessment of Licensee Performance</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">SEC</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Securities and Exchange Commission</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">SFAS</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Statement of Financial Accounting Standards</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">4
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<P><HR noshade><P>

<P align="center"><B>Annual Report on Form&nbsp;10-K for DTE Energy Company<BR>
PART I</B>

<!-- link2 "Item&nbsp;1 &#151; Business." -->
<DIV align="left"><A name="001"></A></DIV>
<P align="left"><B>Item&nbsp;1 &#151; Business.</B>

<P align="left"><B>General</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company, a Michigan corporation incorporated in 1995, is an exempt
holding company under the Public Utility Holding Company Act. The Company has
no operations of its own, holding instead directly or indirectly, the stock of
Detroit Edison and other subsidiaries engaged in energy-related businesses.
Detroit Edison is the Company&#146;s principal operating subsidiary, representing
approximately 90% and 86% of the Company&#146;s assets and revenues, respectively,
at December&nbsp;31, 1999. The Company has no employees. Detroit Edison has 8,523
employees and other Company affiliates have 363 employees.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note 2 for information regarding the Company&#146;s pending merger with
MCN.

<P align="left"><B>Non-Regulated Operations</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliates of the Company are engaged in non-regulated businesses,
including energy-related services and products. Such services and products
include the operation of a pulverized coal facility and coke oven batteries,
coal sourcing, blending and transportation, landfill gas-to-energy facilities,
providing expertise in the application of new energy technologies, real estate
development, power marketing and trading, specialty engineering services and
retail marketing of energy and other convenience products. Another affiliate,
DTE Capital Corporation, has approximately $400&nbsp;million of outstanding debt;
the Company has decided to merge DTE Capital's operations into its
own; DTE Capital will transfer all of its assets and liabilities to the Company.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-regulated operating revenues of $681&nbsp;million for 1999 were earned
primarily from projects related to the steel industry and from energy trading
activities.

<P align="left"><B>Utility Operations</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison, incorporated in Michigan since 1967, is a public utility
subject to regulation by the MPSC and FERC and is engaged in the generation,
purchase, transmission, distribution and sale of electric energy in a 7,600
square mile area in Southeastern Michigan. Detroit Edison&#146;s service area
includes about 13% of Michigan&#146;s total land area and about half of its
population (approximately five million people). Detroit Edison&#146;s residential
customers reside in urban and rural areas, including an extensive shoreline
along the Great Lakes and connecting waters. 3,887 of Detroit Edison&#146;s 8,523
employees are represented by unions under two collective bargaining agreements.
One agreement expires in June&nbsp;2004 for 3,307 employees and the other agreement
expires in August&nbsp;2000 for 580 employees.
<P align="center">5
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<P><HR noshade><P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating revenues, sales and customer data by rate class are as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="47%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Operating Revenues (Millions)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="5"><FONT size="2">Electric</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Residential</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,300</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,253</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,179</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Commercial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,629</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,553</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Industrial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">809</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">753</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">726</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">343</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">251</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,047</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,902</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,657</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Sales (Millions of kWh)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="5"><FONT size="2">Electric</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Residential</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">14,064</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">13,752</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12,898</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Commercial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">19,546</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18,897</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">17,997</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Industrial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15,647</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">14,700</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">14,345</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,595</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,357</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,855</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Total System</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">51,852</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">49,706</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">47,095</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Interconnection</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,672</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5,207</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,547</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">55,524</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">54,913</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">50,642</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><FONT size="2">Electric Customers at Year-End (Thousands)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="5"><FONT size="2">Electric</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Residential</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,904</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,884</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,870</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Commercial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">182</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">181</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">178</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Industrial</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="4"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,089</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,068</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,051</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison generally experiences its peak load and highest total
system sales during the third quarter of the year as a result of air
conditioning and cooling-related loads.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 1999, sales to automotive and automotive-related customers
accounted for approximately 9% of total Detroit Edison operating revenues.
Detroit Edison&#146;s 30 largest industrial customers accounted for approximately
17% of total operating revenues in 1999, 1998 and 1997, and no one customer
accounted for more than 4% of total operating revenues.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison&#146;s generating capability is primarily dependent upon coal.
Detroit Edison expects to obtain the majority of its coal requirements through
long-term contracts and the balance through short-term agreements and spot
purchases. Detroit Edison has contracts with four coal suppliers for a total
purchase of up to 38&nbsp;million tons of low-sulfur western coal to be delivered
during the period from 2000 through 2005. It also has four contracts for the
purchase of approximately 3.5&nbsp;million tons of Appalachian coal to be delivered
during the period from 2000 through 2001. These existing long-term coal
contracts include provisions for price escalation as well as de-escalation.

<P align="center">6
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B><i>Certain Factors Affecting Public Utilities</i></B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The electric utility industry is changing as the transition to competition
occurs. MPSC orders issued in 1997 through 1999 form the beginning of the
restructuring of the Michigan electric public utility industry. The
implementation of restructuring creates uncertainty as Electric Choice and the
unbundling of utility products and services continues. While Detroit Edison is
implementing MPSC orders pertaining to competition, Federal and Michigan
legislation regarding competition is under discussion and pending.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring presents serious issues, such as planning for peak sales and
defining the scope of the public utility obligation. The introduction of
Electric Choice has created uncertainty regarding the timing and level of
customer load that may move to other suppliers.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison is subject to extensive environmental regulation.
Additional costs may result as the effects of various chemicals on the
environment (including nuclear waste) are studied and governmental regulations
are developed and implemented. The costs of future nuclear decommissioning
activities are the subject of increased regulatory attention, and recovery of
environmental costs through traditional ratemaking is the subject of
considerable uncertainty.

<P align="left"><B><i>Regulation and Rates</i></B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Michigan Public Service Commission.</I></B><B>&nbsp;</B>Detroit Edison is subject to the
general regulatory jurisdiction of the MPSC, which, from time to time, issues
its orders pertaining to Detroit Edison&#146;s conditions of service, rates and
recovery of certain costs, accounting and various other matters.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Notes 1 and 3, MPSC orders issued in 1997 through 1999 have
provided the beginning of the restructuring of the Michigan electric utility
industry. Other restructuring and regulatory matters are discussed below.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;1998, Detroit Edison filed a required review of its current
depreciation expense with the MPSC. The application requested an effective
increase in annual depreciation expenses of $66&nbsp;million; an adjustment in rates
was not requested. An order from the MPSC is expected in 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an order issued December&nbsp;28, 1998 related to the 1988 Settlement Agreement
regarding Fermi 2, the MPSC requested parties to file briefs discussing whether
the past MPSC orders surrounding Fermi 2 (including the June&nbsp;1995 order
regarding the retail wheeling experiment, the November&nbsp;1997 order that
reflected the net effect of the $53&nbsp;million reduction associated with the Fermi
2 phase in for 1998 and a two-year amortization of incremental storm damage
costs, and the December&nbsp;1998 order regarding the accelerated amortization of
Fermi 2) have fully accounted for the reductions in the Fermi 2 cost of service
and, if not, what additional actions should be taken, as well as what actions
are needed to revert to non-phase-in ratemaking in 2000. In March&nbsp;1999, the
MPSC ruled that no further action needed to be taken at this time.

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;1999, Detroit Edison filed for reconciliation of its MPSC
jurisdictional PSCR revenues and expenses. Detroit Edison indicated that an
underrecovery of $42.6&nbsp;million, including interest, existed, and when offset by
a Fermi 2 performance standard credit of $34&nbsp;million, a net amount of $8.6
million remains to be collected from PSCR customers. An order could be issued by the
MPSC in the first quarter 2000. In September&nbsp;1999, Detroit Edison filed its
2000 PSCR plan case. Fuel and purchased power costs for 2000 are projected to
increase by up to 6&nbsp;percent, on average, over the corresponding forecast for
1999. Detroit Edison is seeking a corresponding increase in its PSCR Factor for
2000. An order is expected in the third quarter of 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;1999, the MPSC initiated new dockets to 1) evaluate the need to
expedite the supplier licensing program as an alternative for suppliers to
obtain local franchises and Certificates of Public Convenience and Necessity
from the MPSC, and 2) to establish guidelines for transactions between
affiliates. The MPSC has not yet issued orders on these issues.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;1999, the MPSC approved an interim code of conduct filed by
Detroit Edison. The interim code allows DTE Energy affiliated companies to
participate in the Electric Choice program. The MPSC also opened a proceeding
to develop a permanent code of conduct. An order from the MPSC is expected in
the third quarter of 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison is under an obligation to solicit capacity from external
suppliers, whenever it determines that additional capacity is required. In
October&nbsp;1999, Detroit Edison filed to use an alternative capacity solicitation
process. Detroit Edison is proposing that if it decides to meet its capacity
requirements by executing contracts with a term longer than one year, it will
utilize a Request for Proposal (RFP)&nbsp;to solicit offers. Otherwise, as long as
Detroit Edison has a need to procure summer capacity to serve native load
customers, Detroit Edison will file an annual report with the MPSC outlining
its expected summer generating needs and the method by which it expects to meet
those needs. In December&nbsp;1999, the MPSC asked interested parties to file
comments on the revised capacity solicitation process in January&nbsp;2000.
Comments opposing the proposal, including the demand for a contested case
hearing process, have been filed.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceedings are pending before the MPSC concerning claims that Detroit Edison&#146;s
service is lacking in reliability in certain aspects. Detroit Edison must file
with the MPSC its plan to address reliability concerns. The MPSC Staff will
meet with Detroit Edison, other utilities, customer groups and other relevant
parties to formulate recommendations to improve reliability. The MPSC Staff
must file a report with the MPSC by March&nbsp;31, 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;19, 2000, the MPSC ordered Detroit Edison to file a plan assessing
its generation and transmission capacity for the upcoming summer and
identifying their plans for meeting the electric demand of all electric
customers. In addition, the MPSC asked Detroit Edison to include an assessment
of the impact of the actions of their affiliates on its plan. The plan is to be
filed with the Commission by February&nbsp;8, 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;3, 2000, the MPSC approved Detroit Edison&#146;s request to transfer
River Rouge 1 assets to its affiliate, DTE River Rouge. The transfer price is
set at $6.6

<P align="center">8
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<P align="left">million, or two times the book value of the assets. The MPSC also
found that 1) the transfer will benefit consumers, 2) is in the public interest
and, 3) does not violate state law. The FERC requires that state commissions
make these findings before it will accept an application for determination of
Exempt Wholesale Generator (EWG)&nbsp;status. EWG status will allow the unit to
sell power into the wholesale market. The MPSC conditioned its approval by
requiring Detroit Edison to apply any proceeds above the current book
balance to stranded costs, to offer the plant output first to retail marketers
participating in Electric Choice, and to file reports with the MPSC detailing
the prices, terms and conditions of its offers.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Nuclear Regulatory Commission.</I></B><B>&nbsp;</B>The NRC has regulatory jurisdiction over
all phases of the operation, construction (including plant modifications),
licensing and decommissioning of Fermi 2.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Federal Energy Regulatory Commission.&nbsp;</I></B>In 1996, the FERC issued Order 888,
which requires public utilities to file open access transmission tariffs for
wholesale transmission services in accordance with non-discriminatory terms and
conditions, and Order 889, which requires public utilities and others to obtain
transmission information for wholesale transactions through a system on the
Internet. In addition, Order 889 requires public utilities to separate
transmission operations from wholesale marketing functions.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;1996, Detroit Edison filed its Pro Forma Open Access Transmission
Tariff in compliance with FERC Order 888. During 1997, Detroit Edison
negotiated a partial settlement regarding the price and terms and conditions of
certain services provided as part of the tariff. Several issues were litigated
and an Order was issued in July&nbsp;1999. Detroit Edison&#146;s request for rehearing
was denied by the FERC. Detroit Edison has filed a claim of appeal with the
Federal Court of Appeals for the Sixth Circuit.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison has a power pooling agreement with Consumers. In March&nbsp;1997, a
joint transmission tariff, filed by Detroit Edison and Consumers, became
effective. In compliance with FERC Order 888, the tariff modified the pooling
agreement to permit third-party access to transmission facilities utilized for
pooled operations under non-discriminatory terms and conditions. As Detroit
Edison and Consumers were unable to agree on other modifications to the pooling
agreement, Detroit Edison has requested that the FERC approve its termination.
Consumers has requested that the pooling agreement be continued. The FERC has
not ruled on either of these requests.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;1999, Detroit Edison submitted a request to the FERC for
authorization to use certain plant accounts to recognize the impairment loss of
Detroit Edison&#146;s Fermi 2 plant and associated assets in accordance with
generally accepted accounting principles. In March&nbsp;1999, the Michigan Attorney
General filed a protest with the FERC and requested that the FERC set the issue
for hearing. In April&nbsp;1999, Detroit Edison filed its response with the FERC,
requesting that the FERC reject the Michigan Attorney General&#146;s protest as an
improper collateral attack on MPSC orders. The FERC has not made a ruling on
these matters.

<P align="center">9
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<P align="left"><B><i>Environmental Matters</i></B>

<P align="left"><I><B>Detroit Edison</B></I>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison, in common with other electric utilities, is subject to
applicable permit and associated record keeping requirements, and to
increasingly stringent federal, state and local standards covering, among other
things, particulate and gaseous stack emission limitations, the discharge of
effluents (including heated cooling water) into lakes and streams and the
handling and disposal of waste material.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Air.</I></B><B>&nbsp;</B>During 1997 and 1998, the EPA issued ozone transport regulations and
final new air quality standards relating to ozone and particulate air
pollution. The new rules will lead to additional controls on fossil-fueled
power plants to reduce nitrogen oxides, sulfur dioxide, carbon dioxide and
particulate emissions. See &#147;Item&nbsp;7 &#151; Environmental Matters&#148; for further
discussion.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Water.</I></B><B>&nbsp;</B>Detroit Edison is required to demonstrate that the cooling water
intake structures at all of its facilities reflect the &#147;best technology
available for minimizing adverse environmental impact.&#148; Detroit Edison filed
such demonstrations and the MDEQ Staff accepted all of them except those
relating to the St. Clair and Monroe Power Plants for which it requested
further information. Detroit Edison subsequently submitted the information.
In the event of a final adverse decision, Detroit Edison may be required to
install additional control technologies to further minimize the impact.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Wastes and Toxic Substances.</I></B><B>&nbsp;</B>The Michigan Solid Waste and Hazardous Waste
Management Acts, the Michigan Environmental Response Act, the Federal Resource
Conservation and Recovery Act, Toxic Substances Control Act, and the Federal
Comprehensive Environmental Response, Compensation and Liability Act of 1980
regulate Detroit Edison&#146;s handling, storage and disposal of its waste
materials.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The EPA and the MDEQ have aggressive programs regarding the clean-up of
contaminated property. Detroit Edison has extensive land holdings and, from
time to time, must investigate claims of improperly disposed of contaminants.
Detroit Edison anticipates that it will be periodically included in these types
of environmental proceedings.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Conners Creek.&nbsp;</I></B>The Conners Creek Power Plant was in reserve status from
1988 to 1998. In April, 1998 the MPSC issued an order granting Detroit
Edison&#146;s request to waive competitive bidding for Conners Creek and restart the
plant. Although Detroit Edison believed that the plant complied with all
applicable environmental requirements, the Michigan Department of Natural
Resources and the Wayne County Air Quality Management Division issued notices
of violation contending that Detroit Edison was required to obtain a series of
new permits prior to plant operation. Subsequently the EPA issued a similar
notice of violation.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August&nbsp;1998, Detroit Edison filed suit seeking a review of determinations
asserted by the state and local agencies that Detroit Edison&#146;s activities in
reactivating the Conners Creek power plant were in violation of certain
environmental regulations.

<P align="center">10
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;1999, the Department of Justice (DOJ)&nbsp;on behalf of the EPA sent
Detroit Edison a Demand Letter requiring the payment of $2.3&nbsp;million in civil
penalties and an unconditional
commitment to abandon the use of the facility as a coal plant. Detroit Edison
rejected the DOJ/EPA demand and the DOJ/EPA filed suit. In March&nbsp;1999, the
United States District Court for the Eastern District of Michigan issued an
Interim Remedial Order which allowed the company to convert the plant and
operate it as a gas-fired facility. This was accomplished in time for the
Conners Creek Power Plant to help meet record electricity demand in the summer
of 1999. Detroit Edison is presently trying to resolve the remaining
outstanding issues through settlement discussions. It is impossible to predict
what impact, if any, the outcome of this will have upon Detroit Edison.

<P align="left"><B><i>Non-Regulated</i></B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s non-regulated affiliates are subject to a number of
environmental laws and regulations dealing with the protection of the
environment from various pollutants. These non-regulated affiliates are in
substantial compliance with all environmental requirements.

<P align="left"><B>Executive Officers of the Registrant</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="25%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Present</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Position</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Age(a)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Present Position</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Held Since</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">Anthony F. Earley, Jr.</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
50
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Chairman of the Board, Chief Executive Officer,
President, Chief Operating Officer, and Member
of the Office of the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Larry G. Garberding</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
61
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Executive Vice President and Chief Financial Officer
<BR>Member of the Office of the President since
December&nbsp;1998
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1-26-95</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Gerard M. Anderson</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
41
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">President and Chief Operating Officer &#150; DTE Energy
Resources, and Member of the Office of
the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Robert J. Buckler</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
50
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">President and Chief Operating Officer &#150; DTE Energy
Distribution, and Member of the Office of
the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Michael E. Champley</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
51
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Senior Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-1-97</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">S. Martin Taylor</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
59
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Senior Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-28-99</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Susan M. Beale</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
51
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and Corporate Secretary
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">12-11-95</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Leslie L. Loomans</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
56
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and Treasurer
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1-26-95</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">David E. Meador</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
42
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-28-99</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Christopher C. Nern</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
55
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and General Counsel
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1-26-95</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As of December&nbsp;31, 1999
<HR size="2" width="90%" align="CENTER" noshade>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Company&#146;s By-Laws, the officers of the Company are elected
annually by the Board of Directors at a meeting held for such purpose, each to
serve until the next annual meeting of directors or until their respective
successors are chosen and qualified.

<P align="center">11
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Article&nbsp;VI of the Company&#146;s Articles of Incorporation,
directors of the Company will not be personally liable to the Company or its
shareholders in the performance of their duties to the full extent permitted by
law.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;VII of the Company&#146;s Articles of Incorporation provides that each
person who is or was or had agreed to become a director or officer of the
Company, or each such person who is or was serving or who had agreed to serve
at the request of the Board of Directors as an employee or agent of the Company
or as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise (including the heirs,
executors, administrators or estate of such person), shall be indemnified by
the Company to the full extent permitted by the Michigan Business Corporation
Act or any other applicable laws as presently or hereafter in effect. In
addition, the Company has entered into indemnification agreements with all of
its officers and directors, which agreements set forth procedures for claims
for indemnification as well as contractually obligating the Company to provide
indemnification to the maximum extent permissible by law.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company and its directors and officers in their capacities as such are
insured against liability for alleged wrongful acts (to the extent defined)
under three insurance policies providing aggregate coverage in the amount of
$100&nbsp;million.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Other Information.</I></B><B>&nbsp;</B>Pursuant to the provisions of the Company&#146;s By-Laws,
the Board of Directors has by resolution set the number of directors comprising
the full Board at 12.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The MCN merger agreement provides that at the completion of the merger,
the Company will promptly increase the size of its board of directors or
exercise its best efforts to secure the resignation of its present directors in
order to cause Mr.&nbsp;Alfred R. Glancy III and two additional persons selected by
MCN after consultation with the Company from among MCN&#146;s directors as of the
date of the merger agreement to be appointed to the Company&#146;s board of
directors.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the merger, Stephen E.
Ewing, currently President and Chief Operating Officer of MCN, is expected to be added as a Member of
the Office of the President.

<P align="center">12
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<!-- TOC -->
<!-- /TOC -->
<!-- link2 "Item&nbsp;2 &#151; Properties." -->
<DIV align="left"><A NAME="002"></A></DIV>
<DIV align="left"><A name="000"></DIV>
<P align="left"><B>Item&nbsp;2 &#151; Properties.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summer net rated capability of Detroit Edison&#146;s generating units is as
follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="41%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="27%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Location By</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Michigan</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>Summer Net</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Year</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Plant Name</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>County</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>Rated Capability (1) (2)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>in Service</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="3"><FONT size="2"><B>(MW)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">Fossil-fueled Steam-Electric
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"></FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2"></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">
Belle River (3)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
St. Clair
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">1,026
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">9.3</FONT></TD>
<TD nowrap valign="top"><FONT size="2">%
</FONT></TD>
<TD valign="top"></TD>
<TD align="left" valign="top"><FONT size="2">1984 and 1985</FONT></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">Conners Creek</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Wayne
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">167
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">1.5
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Greenwood</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
St. Clair
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">785
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">7.1
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1979</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Harbor Beach</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Huron
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">103
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">0.9
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1968</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Marysville</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
St. Clair
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">167
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">1.5
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1930, 1943 and 1947</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Monroe (4)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Monroe
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">3,000
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">27.3
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1971, 1973 and 1974</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">River Rouge</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Wayne
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">510
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">4.6
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1957 and 1958</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">St. Clair</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
St. Clair
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">1,402
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">12.8
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1953, 1954, 1961 and 1969</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Trenton Channel</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Wayne
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">725
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">6.6
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">1949, 1950 and 1968</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><HR size="1">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><HR size="1"></TD>
<TD valign="top"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">7,885
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">71.6</FONT></TD>
<TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Oil or Gas-fueled Peaking<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Units</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<br> Various
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 1,102
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 10.0
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" nowrap valign="top"><FONT size="2"><br> 1966-1971, 1981 and 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Nuclear-fueled Steam-Electric<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Fermi 2 (5)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<br> Monroe
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 1,101
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 10.0
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2"><br> 1988</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Hydroelectric Pumped Storage<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Ludington (6)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<br> Mason
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 917
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><br> 8.4
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2"><br> 1973</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><HR size="1">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><HR size="1"></TD>
<TD valign="top"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">11,005
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">100.0</FONT></TD>
<TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2"><HR size="4" noshade>
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><HR size="4" noshade></TD>
<TD valign="top"></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(1)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Summer net rated capabilities of generating units in service are based on
periodic load tests and are changed depending on operating experience, the
physical condition of units, environmental control limitations and
customer requirements for steam, which otherwise would be used for
electric generation.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(2)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Excludes two oil-fueled units, River Rouge Unit No.&nbsp;1 (206 MW) and St. Clair Unit No.&nbsp;5 (250 MW), in
economy reserve status.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(3)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The Belle River capability represents Detroit Edison&#146;s entitlement to 81.39% of the capacity and energy of
the plant. See Note 5.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(4)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">The Monroe Power Plant provided 33.7% of Detroit Edison&#146;s total 1999 power plant generation.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(5)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Fermi 2 has a design electrical rating (net)&nbsp;of 1,150 MW.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(6)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Represents Detroit Edison&#146;s 49% interest in Ludington with a total
capability of 1,872 MW. Detroit Edison is leasing 306 MW to First Energy
for the six-year period June&nbsp;1, 1996 through May&nbsp;31, 2002.</TD>
</TR>
</TABLE>
<HR size="1">


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison and Consumers are parties to an Electric Coordination
Agreement providing for emergency assistance, coordination of operations and
planning for bulk power supply, with energy interchanged at nine
interconnections. Detroit Edison and Consumers also have interchange agreements
to exchange electric energy through 12 interconnections with FirstEnergy,
Indiana Michigan Power Company, Northern Indiana Public Service Company and
Ontario Hydro. In addition, Detroit Edison has interchange


<P align="center">13

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<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<P>agreements for the exchange of
electric energy with Michigan South Central Power Agency, Rouge Steel Company
and the City of Wyandotte.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison also purchases energy from cogeneration facilities and
other small power producers. Energy purchased from cogeneration facilities and
small power producers amounted to $34&nbsp;million, $31&nbsp;million and $31&nbsp;million for
1999, 1998 and 1997, respectively, and is currently estimated at $43&nbsp;million
for 2000.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison&#146;s electric generating plants are interconnected by a
transmission system operating at up to 345 kilovolts through 37 transmission
stations. As of December&nbsp;31, 1999, electric energy was being distributed in
Detroit Edison&#146;s service area through 616 substations over 3,682 distribution
circuits.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Detroit Edison must currently import power to meet peak loads in
the summer, transmission capacity is a necessary requirement to serve customers
reliably during peak load periods. As a result of certain transmission
procedures, there continues to be uncertainty surrounding the ability of
Detroit Edison to import power reliably into Michigan. To relieve this
uncertainty, additional efforts to secure firm transmission rights continue to
be necessary, as well as additional in-state generating capability.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison acquired significant additional commitments in 1999 from
other utilities, and modified operating practices to provide flexibility to
respond to increasing uncertainties of load and market conditions. Detroit
Edison also added 550 MW of gas-fired combustion turbine peakers, and completed
the conversion of the Conners Creek Plant to natural gas fuel.

<P align="left"><B><I>Non-Regulated</I></B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-regulated property primarily consists of a coke oven battery facility
and a coal processing facility located in River Rouge, Michigan, and a coke
oven battery facility in Burns Harbor, Indiana, along with 22 landfill gas
projects located throughout the United States.

<!-- link2 "Item&nbsp;3 &#151; Legal Proceedings." -->
<DIV align="left"><A NAME="003"></A></DIV>
<DIV align="left"><A name="000"></DIV>
<P align="left"><B>Item&nbsp;3 &#151; Legal Proceedings.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detroit Edison, in the ordinary course of its business, is involved in a
number of suits and controversies including claims for personal injuries and
property damage and matters involving zoning ordinances and other regulatory
matters. As of December&nbsp;31, 1999, Detroit Edison was named as defendant in 164
lawsuits involving claims for personal injuries and property damage and had
been advised of 29 other potential claims not evidenced by lawsuits.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, Detroit Edison has paid nominal penalties which were
administratively assessed by the United States Coast Guard, United States
Department of Transportation under the Federal Water Pollution Control Act, as
amended, with respect to minor accidental oil spills at Detroit Edison&#146;s power plants into
navigable waters

<P align="center">14
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<P><HR noshade><P>



<P>of the United States. Payment of such penalties represents
full disposition of these matters.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Note 12 &#151; Commitments and Contingencies&#148; and &#147;Environmental Matters,
Detroit Edison, Conners Creek&#148; herein for additional information.


<P align="center">15
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<P><HR noshade><P>



<!-- link2 "Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders." -->
<DIV align="left"><A name="001"></A></DIV>
<P align="left"><B>Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders.</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At a special meeting of the holders of Common Stock of the Company
held on December&nbsp;20, 1999, a proposal to approve the issuance of shares
of common stock, without par value, of the Company pursuant to the
Agreement and Plan of Merger, dated as of October&nbsp;4, 1999, as amended,
among the Company, MCN, and DTE Enterprises, Inc., a wholly owned
subsidiary of the Company, pursuant to which MCN will be merged with
and into DTE Enterprises and will become a wholly owned subsidiary of
the Company was ratified with the votes shown:</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="36%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="13%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="13%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="13%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="13%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>For</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Against</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Abstain</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">99,767,427</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,621,731</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,671,678</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><B>PART II</B>

<!-- link2 "Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters." -->
<DIV align="left"><A name="002"></A></DIV>
<P align="left"><B>Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Common Stock is listed on the New York Stock Exchange, which
is the principal market for such stock, and the Chicago Stock Exchange. The
following table indicates the reported high and low sales prices of the
Company&#146;s Common Stock on the Composite Tape of the New York Stock Exchange and
dividends paid per share for each quarterly period during the past two years:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="12%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="14%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Dividends</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Price Range</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Paid</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Calendar Quarter</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>High</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Low</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Per Share</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First<BR>
Second<BR>
Third<BR>
Fourth
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">39-5/8<BR>
42<BR>
45-5/16<BR>
49-1/4
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">33-1/2<BR>
37-11/16<BR>
39-3/16<BR>
41-7/16
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"><FONT size="2">$</FONT></TD>
<TD align="right" valign="top"><FONT size="2">0.515
0.515
0.515
0.515</FONT></TD>
<TD valign="top"></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First<BR>
Second<BR>
Third<BR>
Fourth
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">43-3/4<BR>
44-11/16<BR>
41-7/8<BR>
37-5/16
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">37-15/16<BR>
38-1/4<BR>
35-3/16<BR>
31-1/16
</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"><FONT size="2">$</FONT></TD>
<TD align="right" valign="top"><FONT size="2">0.515
0.515
0.515
0.515</FONT></TD>
<TD valign="top"></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 1999, there were 145,041,324 shares of the Company&#146;s
Common Stock outstanding. These shares were held by a total of 103,858
shareholders of record.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s By-Laws provide that Chapter&nbsp;7B of the Michigan Business
Corporation Act (&#147;Act&#148;) does not apply to the Company. The Act regulates
shareholder rights when an individual&#146;s stock ownership reaches at least 20
percent of a Michigan corporation&#146;s outstanding shares. A shareholder seeking
control of the Company cannot require the Company&#146;s Board of Directors to call
a meeting to vote on issues related to

<P align="center">16
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<P><HR noshade><P>



<P>corporate control within 10&nbsp;days, as
stipulated by the Act. See &#147;Note 7 &#151; Shareholders&#146;
Equity&#148; for additional information, including information concerning the Rights
Agreement, dated as of September&nbsp;23, 1997.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of future dividends will depend on the Company&#146;s earnings,
financial condition and other factors, including the effects of utility
restructuring and the transition to competition, each of which is periodically
reviewed by the Company&#146;s Board of Directors and the successful completion of
the pending merger with MCN.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Article&nbsp;I, Section&nbsp;8.&nbsp;(c)&nbsp;and Article&nbsp;II, Section&nbsp;3.(c) of the
Company&#146;s By-laws, as amended through May&nbsp;1, 1999, notice is given that the
2001 Annual Meeting of the Company&#146;s Common Shareholders will be held on
Wednesday, April&nbsp;25, 2001.

<!-- link2 "Item&nbsp;6 &#151; Selected Financial Data." -->
<DIV align="left"><A name="003"></A></DIV>
<P align="left"><B>Item&nbsp;6 &#151; Selected Financial Data.</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="42%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="11"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="19"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Millions, except per share amounts)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,728</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,221</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,764</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,645</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,636</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">483</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">443</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">406</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Earnings Per Common Share &#151; Basic
and Diluted</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3.33</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3.05</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.88</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.13</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.80</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Dividends Declared Per
Share of Common Stock</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.06</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.06</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.06</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.06</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.06</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">At year end:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Total Assets</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12,316</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12,088</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,223</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,015</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,131</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Long-Term Debt Obligations
(including capital leases) and
Redeemable Preferred and
Preference Stock Outstanding</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,052</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,323</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,058</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,038</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,004</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">17
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<P><HR noshade><P>

<P align="left"><B>Item 7 - Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations.</B>

<P align="left"><B>GROWTH</B>

<P>To sustain long-term earnings growth of 6% annually, DTE Energy Company
(Company) has developed a business strategy focused on its core competencies,
consisting of expertise in developing, managing and operating energy assets,
including coal sourcing, blending and transportation skills. As part of this
strategy, it was expected that one new line of business would be developed in
1999 through acquisition or start-up.

<P>As discussed in Note 2, the Company and MCN Energy Group Inc. (MCN)&nbsp;have
entered into a merger agreement. Subject to the receipt of all regulatory
approvals, and the satisfaction of other agreed upon conditions, the merger is
expected to be completed in the first half of 2000. The Company expects that
completion of the merger will result in the issuance of approximately 30
million additional shares of its common stock and approximately $1.4&nbsp;billion in
external financing. The merger is expected to create a fully integrated
electric and natural gas company that would be able to achieve an average of
$60&nbsp;million in after-tax cost savings per year during the first 10&nbsp;years of the
merger due to anticipated cost reductions. This business combination is also
expected to be accretive by $0.05 to the Company&#146;s earnings per share for the
year 2001, and is expected to strongly support the Company&#146;s commitment to a
long-term earnings growth rate of 6%. The merger is expected to permit the
Company to be responsive to competitive pressures. The external financing
needs of the merger may create a sensitivity to interest rate changes; and the
Company will need to successfully integrate the two operations in order to be
able to service the expected debt requirements and achieve aggregate operating
cost reductions.

<P>The Company is building a portfolio of growth businesses that leverage its
skills and build upon key customer relationships. These growth businesses
include on-site energy projects and services, coal transportation and
processing, and energy marketing and trading. These businesses contributed $69
million to Company earnings in 1999; the earnings contribution is expected to
increase in the future.

<P>The Company&#146;s long-term growth strategy recognizes the fact that competition,
new technologies and environmental concerns will have a significant impact on
reshaping the electric utility industry. As a result, the Company is investing
in new energy-related technologies such as distributed generation, including
fuel cells, and renewable sources of energy.

<P>The Company believes that its financial and technological resources, experience
in the energy field and strategic growth plan position it well to compete in
the changing energy markets, as competition is introduced in Michigan and
across the United States.

<P align="center">18
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B>ELECTRIC INDUSTRY RESTRUCTURING</B>

<P>The Detroit Edison Company (Detroit Edison), the principal operating subsidiary
of the Company, is subject to regulation by the Michigan Public Service
Commission (MPSC)&nbsp;and the Federal Energy Regulatory Commission (FERC).
Michigan legislators and regulators have focused on competition and Electric
Choice in the Michigan electric public utility industry. Electric Choice would
give all retail customers the opportunity to access competitive generation
resources. The MPSC is committed to opening the electric generation market in
Michigan to competition and as a result has issued several Orders relating to
restructuring and competition.

<P>Various bills have been introduced and proposed for introduction at the federal
level and in the Michigan Legislature addressing competition in the electric
markets. The Company and Detroit Edison are reviewing these bills and continue
to work with the parties involved to develop proposals that are fair for the
Company and its shareholders. While the impacts of the adoption and
implementation of one or more of these legislative proposals are unknown, they
may include generation divestiture, securitization, and possible reductions in
earnings. In the meantime, Detroit Edison is voluntarily proceeding with the
implementation of Electric Choice as provided for in MPSC Orders and pursuing
the recovery of stranded costs.

<P align="left"><B>Michigan Public Service Commission</B>

<P align="left"><U>Background</U>

<P>Details on restructuring the electric generation market began to emerge in 1996
with the issuance of a MPSC Staff Report on Electric Industry Restructuring.
MPSC Orders issued since that time have stated that Michigan utilities should
recover stranded costs during a transition period ending December&nbsp;31, 2007.

<P align="left"><U>Restructuring Orders</U>

<P>MPSC Orders issued in 1997 facilitated restructuring, but left several issues
unresolved. Due to the uncertainty regarding the future price of electricity,
the MPSC indicated a true-up mechanism should be established to ensure that
Detroit Edison did not over-recover its stranded costs. The MPSC also
established that during the transition period, affiliates of out-of-state
utilities could not be alternative suppliers without reciprocal arrangements,
but unaffiliated marketers could be an alternative supplier without providing
reciprocal service in another service territory.

<P>MPSC Orders issued in 1998 identified a phased-in approach to restructuring,
whereby Detroit Edison would implement Electric Choice in 225 megawatt (MW)
blocks of power through the transition period, with 1,125 MW, or approximately
12.5% of total load, made available at the end of the transition period, with
all remaining load available for direct access on January&nbsp;1, 2002. Detroit
Edison has received MPSC approval of accelerated amortization of the Fermi 2
nuclear plant. As discussed in Note 3, the December&nbsp;28, 1998 MPSC Order, while
granting Detroit Edison&#146;s request, imposed several conditions for the recovery
of Fermi 2 costs.

<P align="center">19
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<P><HR noshade><P>



<P>In March&nbsp;1999, Detroit Edison filed an application with the MPSC for a review
of its stranded costs, including Electric Choice implementation costs. MPSC
staff and intervenors have made filings in opposition to certain of Detroit
Edison&#146;s proposals for the recovery of stranded costs. A final order is not
expected before the end of the first quarter of 2000. While uncertainties
exist regarding the ultimate amount of costs to be recovered, including
potential disallowances for the recovery of recorded regulatory assets,
recovery of costs to be incurred to implement Electric Choice, and recovery of
other stranded costs, the MPSC has ruled that stranded costs are recoverable.

<P>In July&nbsp;1999, the Association of Businesses Advocating Tariff Equity (ABATE)
made a filing with the MPSC indicating that Detroit Edison&#146;s retail rates
produce approximately $333&nbsp;million of excess revenues. Of this amount,
approximately $202&nbsp;million is related to ABATE&#146;s proposed reversal of the
December&nbsp;28, 1998 MPSC Order authorizing the accelerated amortization of Fermi
2. Detroit Edison supports a revenue deficiency of $33&nbsp;million. The MPSC
staff concluded that no revenue sufficiency exists when Detroit Edison&#146;s
pending required review of its depreciation rates is taken into account.
Detroit Edison requested an increase of $66&nbsp;million in annual depreciation
expense with no corresponding increase in rates. The Michigan Attorney General
proposes the reversal of the December&nbsp;28, 1998 Fermi 2 Amortization Order. A
final MPSC order is not expected until the end of the first quarter of 2000.
Detroit Edison is unable to predict the outcome of this proceeding.

<P align="left"><U>Electric Choice</U>

<P>On June&nbsp;29, 1999, the Michigan Supreme Court, on a 4-3 vote, issued an opinion
determining that the MPSC lacked authority to order experimental retail
wheeling in the context of an Electric Choice program. The court reversed an
earlier Michigan Court of Appeals opinion finding such authority and vacated
two MPSC orders directing implementation of the experimental program. The
court held that the MPSC possesses no common law powers and may only exercise
authority clearly conferred upon it by the Legislature. It stated that retail
wheeling issues involve many policy concerns and stated that the Legislature,
not the court, is the body that must consider and weigh the economic and social
costs, and benefits of electric restructuring.

<P>In September&nbsp;1999, Detroit Edison filed a letter with the MPSC reaffirming the
decision to expeditiously move ahead with the voluntary implementation of
Electric Choice. In September&nbsp;1999, the bidding on 225 MW was fully subscribed.
The second and third bid periods that ended in November&nbsp;1999 and January&nbsp;2000,
respectively, were also fully subscribed. Two additional bidding phases are
contemplated, with 225 MW each closing in March and November&nbsp;2000.

<P>The Electric Choice Program began in December&nbsp;1999, when Detroit Edison
delivered energy from an alternate supplier in the 90 MW portion of the
program. However, several technical issues still remain to be resolved before
Electric Choice can be fully implemented. Detroit Edison has spent
approximately $29&nbsp;million through December&nbsp;31, 1999 and estimates that
expenditures of up to $120&nbsp;million may be required through 2001 to fully
implement the program, and is currently deferring the costs as a regulatory
asset.

<P align="center">20
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>Detroit Edison anticipates that Electric Choice will result in a decrease in
annual sales as well as a decrease in peak demand over the next five years.
These decreases are not expected to have a
significant impact on the Company&#146;s net income due to the opportunity for
non-regulated sales outside of Detroit Edison&#146;s service territory.

<P align="left"><B>Federal Energy Regulatory Commission</B>

<P>Detroit Edison is regulated at the federal level by the FERC with respect to
accounting, sales for resale in interstate commerce, certain transmission
services, issuances of securities, licensing of hydro and pumping stations and
other matters. The FERC, as a policy matter, believes that transmission should
be made available on a non-discriminatory basis.

<P>In a Final Rule issued in December&nbsp;1999, the FERC required that all public
utilities that own, operate or control interstate transmission file by October
15, 2000, a proposal for a Regional Transmission Organization (RTO)&nbsp;or,
alternatively, a description of any efforts made by the utility to participate
in an existing RTO or the reasons for not participating and any obstacles to
such participation, and any plans for further work toward participation. Any
proposed RTO is to be operational by December&nbsp;15, 2001. The FERC said it wants
RTOs in place nationwide to facilitate the development of an open and more
competitive market in bulk power sales of electricity. A public utility that
is a member of an existing transmission entity that conforms to Independent
System Operator (ISO)&nbsp;principles identified by the FERC would have until
January&nbsp;15, 2001 to explain the extent to which the organization meets the
minimum standards for a RTO.

<P>In June&nbsp;1999, Detroit Edison, along with Consumers Energy Co., the American
Electric Power Service Corp., FirstEnergy Corp., and Virginia Electric and
Power Co., filed applications with FERC requesting approval of the Alliance RTO
(Alliance). If approved by the FERC, the Alliance would operate over 43,000
miles of transmission lines in nine states. The Alliance companies hope to
have the RTO begin operations in about 12 to 18&nbsp;months after FERC approval.

<P>The Alliance indicated it will ensure independent and nondiscriminatory
operation of the regional grid, and provide flexibility to current and
potential future members to allow them to divest their transmission assets if
they so desire. The Alliance indicated that a separate for-profit transmission
company, or transco, is a possible end-state and could be an attractive
business model for independent management of transmission assets.

<P>On December&nbsp;20, 1999, the FERC issued an order conditionally approving the
Alliance proposal, but indicated that certain elements needed modification or
further development. The FERC also indicated that it would address the
proposed tariff in a future order, but indicated in this order that the
existing tariff included inappropriate multiple rates unacceptable to the FERC.
It also indicated concerns with the governance structure and the regional
configuration, believing that it may have created a potential barrier to
east-west power transactions.

<P align="center">21
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>The FERC directed the Alliance to make a compliance filing, but did not include
a deadline for this filing.

<P align="left"><B>LIQUIDITY AND CAPITAL RESOURCES</B>

<P align="left"><B>Cash From Operating Activities</B>

<P>Net cash from operating activities, which is the Company&#146;s primary source of
liquidity, was $1,097&nbsp;million in 1999, $834&nbsp;million in 1998 and $905&nbsp;million in
1997. Net cash from operating activities increased in 1999 due primarily to
higher net income and non-cash items and lower cash used for current assets and
liabilities. Net cash from operating activities decreased in 1998 compared to
1997 due primarily to increased accounts receivable and other non-cash items.

<P align="left"><B>Cash Used for Investing Activities</B>

<P>Net cash used for investing activities was lower in 1999 due to lower
investments in non-regulated businesses partially offset by increased plant and
equipment expenditures by Detroit Edison. Net cash used for investing
activities was higher in 1998 due to increased plant and equipment expenditures
and non-regulated investments in coke oven batteries.

<P>Cash requirements for 1999 Detroit Edison capital expenditures were $638
million. Detroit Edison&#146;s cash requirements for capital expenditures are
expected to be approximately $2.5&nbsp;billion for the period 2000 through 2004, and
are expected to be financed from operating cash flows.

<P>Cash requirements for 1999 non-regulated investments and capital expenditures
were $130&nbsp;million. Excluding the effects of the planned merger with MCN, cash
requirements for non-regulated investments and capital expenditures are
expected to be approximately $1.1&nbsp;billion for the period 2000 through 2004.
Significant non-regulated investments are expected to be externally financed.

<P>In February&nbsp;2000, the Company&#146;s board of directors authorized the repurchase of
up to 10&nbsp;million common shares. Stock purchases will be made from time to time
on the open market or through negotiated transactions. The current program&#146;s
timeframe will depend on market conditions and is tentatively set to not exceed
$100&nbsp;million. Consistent with prior Company commitments to repurchase shares
when funds were available, the Company has reduced its 2000 capital commitment
by $100&nbsp;million.

<P align="left"><B>Cash (Used for) From Financing Activities</B>

<P>Net cash used for Company financing activities was $426&nbsp;million in 1999 due to
higher redemptions and reduced issuances of long-term debt.

<P>Net cash from Company financing activities was higher in 1998 due to increases
in long- and short-term borrowings, partially offset by redemptions of
preferred stock and long-term debt.

<P align="center">22
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>The following securities were issued and redeemed in 1999:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>

<TD width="73%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="14%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Securities Issued</B></FONT></TD>
<TD nowrap align="right"></TD>
<TD align="right" colspan="2"><FONT size="2">(Millions)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">

<TD colspan="3"><FONT size="2">Mortgage Bonds</font></TD>
</tr>

<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><font size="2">1999 Series&nbsp;A 5.55% issued in September</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">118</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1999 Series&nbsp;B 4.7% (variable)&nbsp;issued in August</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">40</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1999 Series&nbsp;C 4.73% issued in September</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">67</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1999 Series&nbsp;D floating rate issued in August</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">40</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>

<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Total Issued</B></FONT></TD>

<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">265</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>

<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Securities Redeemed</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Mandatory Redemptions</font></TD>
</TR>

<TR valign="bottom">
<TD></TD>
<TD colspan="2">Mortgage Bonds</TD>
</tr>

<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1990 Series&nbsp;A, B, C 7.9%-8.4% redeemed in March</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1993 Series&nbsp;D 6.45% redeemed in April</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">100</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1993 Series&nbsp;B 6.83% redeemed in December</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1993 Series&nbsp;E 6.83% redeemed in December</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>

<TD colspan="2"><FONT size="2">Non-Recourse Debt</FONT></TD>
<TD></TD>
<TD></TD>

<TD align="right"><FONT size="2">80</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Early Redemptions</font></td>

</tr>
<TR valign="bottom">
<td></td>
<td colspan="2"><FONT size="2">Mortgage Bonds</font></td>
</tr>
<TR valign="bottom">
<td></td>
<td></td>

<td><FONT size="2">
Series&nbsp;KKP 7.3% - 7.5% redeemed in September</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">40</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1992 Series&nbsp;D 8.3% redeemed in November</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">24</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">1989 Series&nbsp;CC 7.5% redeemed in December</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">67</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>

<TD colspan="2"><FONT size="2">Unsecured Installment Sales
Contracts</font></td>
</tr>

<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">Series&nbsp;A 1989 7.75% redeemed in December</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">100</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>

<TD><FONT size="2">Series&nbsp;A 1989B 7.875% redeemed in December</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>

<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Total Redeemed</B></FONT></TD>

<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">548</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>

<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><B>YEAR 2000</B>

<P>The Company spent approximately $85&nbsp;million on the Year 2000 program through
December&nbsp;31, 1999. Year 2000 modification costs had no material impact on
operating results or cash flows. No significant additional spending is
anticipated since the Company and Detroit Edison experienced no Year 2000
related failures of mission critical systems during the rollover to the new
millennium. Though there can be no assurances that Year 2000 issues can be
totally eliminated, the Company and Detroit Edison anticipate no further impact
on financial position, liquidity or results of operations resulting from Year
2000 issues. In addition, no assurances can be given that the systems of
vendors, interconnected utilities and customers will not result in Year 2000
problems.

<P align="center">23
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<P><HR noshade><P>



<P align="left"><B>ENVIRONMENTAL MATTERS</B>

<P>Protecting the environment from damage, as well as correcting past
environmental damage, continues to be a focus of state and federal regulators.
Legislation and/or rulemaking could further impact the electric utility
industry including Detroit Edison. The U.S. Environmental Protection Agency
(EPA)&nbsp;and the Michigan Department of Environmental Quality have aggressive
programs regarding the clean-up of
contaminated property. Detroit Edison anticipates that it will be periodically
included in these types of environmental proceedings.

<P>The EPA has issued ozone transport regulations and final new air quality
standards relating to ozone and particulate air pollution. In September&nbsp;1998,
the EPA issued a State Implementation Plan (SIP)&nbsp;call, giving states a year to
develop new regulations to limit nitrogen oxide emissions because of their
contribution to ozone formation. The EPA draft proposal suggests most emission
reductions should come from utilities. If Michigan follows the EPA&#146;s
recommendations, it is estimated that Detroit Edison will incur $300&nbsp;million of
capital expenditures to comply. Both the ozone transport regulations and the
new air quality standards have been upheld in legal challenges in the U.S.
Court of Appeals. Michigan has proposed regulations to address the ozone
transport issue that would result in capital expenditures of approximately $100
million less than the EPA&#146;s recommendations. Until the legal issues are
resolved and the state issues its regulations, it is impossible to predict the
full impact of the SIP call. Detroit Edison is unable to predict what effect,
if any, restructuring of the electric utility industry would have on
recoverability of such environmental costs.

<P align="left"><B>MARKET RISK</B>

<P>Detroit Edison had investments valued at market of $361&nbsp;million and $309
million in three nuclear decommissioning trust funds at December&nbsp;31, 1999 and
1998, respectively. At December&nbsp;31, 1999, these investments consisted of
approximately 37% in fixed debt instruments, 59% in publicly traded equity
securities and 4% in cash equivalents. At December&nbsp;31, 1998, these investments
consisted of approximately 33% in fixed debt instruments, 63% in publicly
traded equity securities and 4% in cash equivalents. A hypothetical 10%
increase in interest rates and a 10% decrease in equity prices quoted by stock
exchanges would result in an $11&nbsp;million and $9&nbsp;million reduction in the fair
value of debt and a $21&nbsp;million and $20&nbsp;million reduction in the fair value of
equity securities held by the trusts at December&nbsp;31, 1999 and 1998,
respectively.

<P>A hypothetical 10% decrease in interest rates would increase the fair value of
long-term debt from $4&nbsp;billion to $4.5&nbsp;billion at December&nbsp;31, 1999 and from
$4.8&nbsp;billion to $5.3&nbsp;billion at December&nbsp;31, 1998.

<P>DTE Energy Trading, Inc. (DTE ET), an indirect wholly owned subsidiary of the
Company, provides price risk management services utilizing energy commodity
derivative instruments. The Company measures the risk inherent in DTE ET&#146;s
portfolio utilizing Value at Risk (VaR) analysis and other methodologies, which
simulate forward price curves in electric power markets to quantify estimates
of the magnitude and probability of

<P align="center">24
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<P><HR noshade><P>



<P>potential future losses related to open
contract positions. The Company reports VaR as a percentage of its earnings,
based on a 95% confidence interval, utilizing 10-day holding periods. At
December&nbsp;31, 1999 and 1998, DTE ET&#146;s VaR from its power marketing and trading
activities was less than 1% of the Company&#146;s consolidated &#147;Income Before Income
Taxes&#148; for the years ended December&nbsp;31, 1999 and 1998. The VaR model uses the
variance-covariance statistical modeling technique, and implied and historical
volatilities and correlations over the past 20-day period. The estimated
market prices used to value these transactions for VaR purposes reflect the use
of established pricing models and various factors including quotations from
exchanges and over-the-counter markets, price volatility factors, the time
value of money, and location differentials. For further information, see Notes
1 and 11.

<P align="left"><B>RESULTS OF OPERATIONS</B>

<P>Net income for 1999 was up $40&nbsp;million over 1998 earnings due primarily to
lower income taxes resulting from tax credits generated by non-regulated
businesses and the effects of the end of the Fermi 2 phase-in plan in 1998.

<P>Net income for 1998 was up $26&nbsp;million over 1997 earnings due to lower income
taxes resulting from tax credits generated by non-regulated businesses.

<P align="left"><B>Operating Revenues</B>

<P>Operating revenue was $4.7&nbsp;billion, up 12% from 1998 operating revenue of $4.2
billion. Operating revenues increased (decreased)&nbsp;due to the following:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="30%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>

<TD align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<td></td>
<TD align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<tr>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>

</tr>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="4"><FONT size="2">Detroit Edison
Rate change</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(25</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(8</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">System sales volume and mix</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">151 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">220</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Wholesale sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">(19</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">51</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Fermi 2 performance disallowances</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">34 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">(11</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Other &#151; net</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">4 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">(7</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Detroit Edison</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">245</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2">Non-regulated
DTE Energy Resources</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">147 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">163</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">DTE Energy Trading</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">209 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">43</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Other &#151; net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Non-Regulated </FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">362 </FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">212</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">507</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">457</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">25
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P>Detroit Edison kilowatt-hour (kWh) sales for 1999 and the percentage change by year were as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="63%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="3"><FONT size="2"><B>(Billions of kWh)</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Sales</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Residential</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>14.1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B></FONT></TD>
<TD align="right"><FONT size="2"><B>2.3</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.6</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Commercial</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>19.5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3.4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5.0</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Industrial</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>15.6</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>6.4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2.5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Other (primarily sales for resale)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>2.6</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>10.1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">27.1</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Total System</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>51.8</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>4.3</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5.5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Wholesale sales</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3.7</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(29.5</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">46.8</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>55.5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1.1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8.4</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>In 1999, residential sales increased due to more heating demand, increased
usage, and growth in the customer base. Commercial and industrial sales
increased due to favorable economic conditions. In addition, industrial sales
increased due to sales of replacement energy to the Ford Rouge plant.
Wholesale sales decreased due to lower demand for energy and decreased
availability of energy for sale over native load.

<P>In 1998, residential sales increased due to more cooling demand and growth in
the customer base. Commercial sales increased due to more cooling demand and
favorable economic conditions. Industrial sales increased due to higher usage.
Wholesale sales increased due to greater demand for energy and increased
availability of energy for sale.

<P>Non-regulated revenues were higher due to an increased level of operations,
primarily DTE Energy Trading, and the addition of new businesses.

<P align="center">26
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B>Operating Expenses</B>

<P align="left"><U>Fuel and Purchased Power</U>

<P>Net system output and average fuel and purchased power unit costs per
megawatthour (MWh) for Detroit Edison were as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="47%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Thousands of MWh)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Power plant generation
</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B></B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>

<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Fossil</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>43,016</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">44,091</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">42,162</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>

<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Nuclear</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>9,484</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">7,130</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5,523</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Purchased power</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>6,959</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">7,216</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6,146</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net system output</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>59,459</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">58,437</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">53,831</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Average unit cost ($/MWh)
Generation</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>12.51</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12.76</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12.94</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Purchased Power</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>54.80</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">42.26</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">26.98</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>In 1999, fuel and purchased power expense increased due to higher purchased
power unit costs and a 1.7% increase in net system output. The increase was
partially offset by lower fuel unit costs primarily resulting from increased
usage of low-cost nuclear fuel.

<P>In 1998, fuel and purchased power expense increased for Detroit Edison due to
higher purchased power unit costs as a result of price volatility during
periods of unseasonably warm summer weather and an 8.6% increase in system
output. These increases were partially offset by lower unit costs as a result
of increased usage of low-cost nuclear fuel.

<P>In 1999 and 1998, non-regulated purchased power expense increased due to the
operations of DTE Energy Trading.

<P><U>Operation and Maintenance</U>

<P>In 1999, operation and maintenance expenses increased $192&nbsp;million. Higher
non-regulated expenses of $162&nbsp;million were due to an increased level of
operations and the addition of new businesses. Higher Detroit Edison expenses
of $30&nbsp;million were due to increased system and customer enhancements ($22
million), higher Year 2000 expenses ($10&nbsp;million), higher employee benefit
costs ($9&nbsp;million), and generation reliability and maintenance work to address
unplanned outages ($8&nbsp;million), partially offset by lower storm expense ($19
million).

<P>In 1998, operation and maintenance expenses increased $287&nbsp;million. Higher
non-regulated subsidiary expenses of $184&nbsp;million were due to the increased
level of non-regulated operations and the addition of new businesses. Higher
Detroit Edison expenses of $103&nbsp;million were due to higher Year 2000
expenses ($32&nbsp;million), the 1997 storm

<P align="center">27
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<P><HR noshade><P>



<P>expense deferral ($30&nbsp;million), 1998
storm expense ($21&nbsp;million), a 1997 insurance recovery ($15&nbsp;million), 1997
storm amortization ($14&nbsp;million), and the Conners Creek Power Plant restart
($13&nbsp;million), partially offset by cost reductions ($22&nbsp;million).

<P align="left"><U>Depreciation and Amortization</U>

<P>In 1999, depreciation and amortization expense was higher due to higher levels
of plant in service, the accelerated amortization of unamortized nuclear costs,
the adjustment recording one-half of utility earnings in excess of the allowed
11.6% return on equity sharing threshold as additional nuclear cost
amortization, and increased Fermi 2 decommissioning funding due to higher
revenues.

<P>In 1998, depreciation and amortization expense increased due primarily to
increases in property, plant and equipment. These increases were almost
entirely offset by lower Detroit Edison amortization of regulatory assets.

<P align="left"><B>Interest Expense</B>

<P>In 1999, interest expense increased due to the write-off of unamortized bond
issuance expense for early redemption of securities and higher short-term
borrowing costs.

<P>Interest expense increased in 1998 due primarily to the issuance of debt to
finance asset acquisitions of non-regulated subsidiaries and the issuance of
debt to redeem Detroit Edison&#146;s preferred stock.

<P align="left"><B>Income Taxes</B>

<P>Income tax expense for the Company decreased in 1999 and 1998 due primarily to
increased utilization of alternate fuel credits generated from non-regulated
businesses. The majority of alternate fuel credits are available through 2002,
while others have been extended through 2007. The end of the Fermi 2 phase-in
plan also contributed to the decrease in income tax expense for 1999.

<P align="left"><B>FORWARD-LOOKING STATEMENTS</B>

<P>Certain information presented herein is based on the expectations of the
Company and Detroit Edison, and, as such, is forward-looking. The Private
Securities Litigation Reform Act of 1995 encourages reporting companies to
provide analyses and estimates of future prospects and also permits reporting
companies to point out that actual results may differ from those anticipated.


<P>Actual results for the Company and Detroit Edison may differ from those
expected due to a number of variables including, but not limited to, interest
rates, the level of borrowings, weather, actual sales, the effects of
competition and the phased-in implementation of Electric Choice, the
implementation of utility restructuring in Michigan (which involves pending and
proposed regulatory and legislative proceedings, the recovery of stranded
costs, and possible reductions in earnings), environmental and nuclear
requirements, the impact of FERC proceedings and regulations, and the success
of non-regulated lines of business. In addition, expected results will be
affected by the Company&#146;s pending merger with MCN.

<P align="center">28
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<P><HR noshade><P>



<P>While the Company and
Detroit Edison believe that estimates given accurately measure the expected
outcome, actual results could vary materially due to the variables mentioned,
as well as others.


<P align="center">29

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<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<!-- link2 "Item&nbsp;8 &#151; Financial Statements and Supplementary Data." -->
<DIV align="left"><A NAME="007"></A></DIV>
<DIV align="left"><A name="000"></DIV>
<P align="left"><B>Item&nbsp;8 &#151; Financial Statements and Supplementary Data.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following consolidated financial statements and schedules are included
herein.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="92%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<U>Page</U></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Independent Auditors&#146; Report</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
31</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">DTE Energy Company:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Income</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
32</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Cash Flows</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
33</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Balance Sheet</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
34</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Changes in Shareholders&#146; Equity</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
36</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">The Detroit Edison Company:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Income</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
38</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Cash Flows</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
39</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Balance Sheet</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
40</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Consolidated Statement of Changes in Shareholders&#146; Equity</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
42</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Notes to Consolidated Financial Statements</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
43</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Schedule&nbsp;II &#151; Valuation and Qualifying Accounts</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
89</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>Note:&nbsp;Detroit Edison&#146;s financial statements are presented here for ease of reference
and are not considered to be part of Part II &#151; Item&nbsp;8 of the Company&#146;s report.

<P align="center">30
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<P><HR noshade><P>

<P align="left"><B>INDEPENDENT AUDITORS&#146; REPORT</B>

<P align="left">To the Boards of Directors and Shareholders of<BR>
DTE Energy Company and<BR>
The Detroit Edison Company

<P>We have audited the consolidated balance sheets of DTE Energy Company and
subsidiaries and of The Detroit Edison Company and subsidiaries (together, the
&#147;Companies&#148;) as of December&nbsp;31, 1999 and 1998, and the related consolidated
statements of income, cash flows, and changes in shareholders&#146; equity for each
of the three years in the period ended December&nbsp;31, 1999. Our audits also
included the financial statement schedules listed in the Index at Item&nbsp;8. These
financial statements and financial statement schedules are the responsibility of
the Companies&#146; management. Our responsibility is to express an opinion on the
consolidated financial statements and financial statement schedules based on our
audits.

<P>We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

<P>In our opinion, such consolidated financial statements referred to above
present fairly, in all material respects, the financial position of DTE Energy
Company and subsidiaries and of The Detroit Edison Company and subsidiaries at
December&nbsp;31, 1999 and 1998, and the results of their operations and their cash
flows for each of the three years in the period ended December&nbsp;31, 1999 in
conformity with generally accepted accounting principles. Also, in our
opinion, such financial statement schedules, when considered in relation to the
basic consolidated financial statements of the Companies taken as a whole,
present fairly in all material respects the information set forth therein.

<P align="left">DELOITTE &#38; TOUCHE LLP

<P align="left">Detroit, Michigan<BR>
January&nbsp;26, 2000

<P align="center">31
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<P><HR noshade><P>



<P align="center"><B>DTE Energy Company<BR>
Consolidated Statement of Income<BR>
(Millions, Except Per Share Amounts)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="57%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="11"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="11"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Revenues</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>4,728</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,221</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,764</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Expenses</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Fuel and purchased power</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,335</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,063</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">837</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Operation and maintenance</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,480</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,288</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,001</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>735</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">661</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">660</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Taxes other than income</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>277</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">272</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">265</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Operating Expenses</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,827</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,284</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,763</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Income</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>901</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">937</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,001</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Interest Expense and Other</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Interest expense</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>340</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">319</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">297</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Preferred stock dividends of subsidiary</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other &#151; net</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>18</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Interest Expense and Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>358</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">340</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">327</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Income Before Income Taxes</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>543</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">597</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">674</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Income Taxes</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>60</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">154</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">257</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Net Income</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>483</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">443</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Average Common Shares Outstanding</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>145</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Earnings per Common Share &#151; Basic and Diluted</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>3.33</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3.05</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2.88</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)



<P align="center">32
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>DTE Energy Company<BR>
Consolidated Statement of Cash Flows<BR>
(Millions)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="11"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="11"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Operating Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>483</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">443</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Adjustments to reconcile net income to net cash from operating activities:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>735</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">661</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">660</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(90</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(146</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(75</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Changes in current assets and liabilities:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Restricted cash</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(10</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(67</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(54</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Accounts receivable</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(94</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(84</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(36</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Inventories</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(5</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(35</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(39</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Payables</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>30</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">99</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(3</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>48</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(37</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">35</FONT></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>

</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash from operating activities</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,097</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">834</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">905</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Investing Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Plant and equipment expenditures</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(739</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(589</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(484</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Investment in non-regulated businesses</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(29</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(408</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(216</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash used for investing activities</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(768</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(997</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(700</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Financing Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Issuance of long-term debt</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>265</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">763</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">250</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Increase in short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>156</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">189</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">32</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Redemption of long-term debt</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(548</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(255</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(196</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Redemption of preferred stock</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(150</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Dividends on common stock</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(299</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(299</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(299</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash (used for) from financing activities</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(426</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">248</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(213</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>


<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Net (Decrease) Increase in Cash and Cash Equivalents</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(97</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">85</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(8</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Cash and Cash Equivalents at Beginning of the Year</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>130</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">45</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">53</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>


<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Cash and Cash Equivalents at End of the Year</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>33</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">130</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">45</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD colspan="2"><HR size="4" noshade></TD>
<TD></TD>

</TR>


<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Supplementary Cash Flow Information</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Interest paid (excluding interest capitalized)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>340</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">290</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Income taxes paid</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>152</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">160</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">243</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">New capital lease obligations</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">52</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">34</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)





<P align="center">33
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>DTE Energy Company<BR>
Consolidated Balance Sheet<BR>
(Millions, Except Per Share Amounts and Shares)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="66%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>ASSETS</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Current Assets</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Cash and cash equivalents</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>33</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">130</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Restricted cash</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>131</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">121</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Accounts receivable</FONT></TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Customer (less allowance for
doubtful accounts of $21 and $20, respectively)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>388</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">320</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Accrued unbilled revenues</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>166</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">153</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>144</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">131</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Inventories (at average
cost)</FONT></TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Fuel</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>175</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">171</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Materials and supplies</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>168</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">167</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>105</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">39</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,310</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,232</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Investments</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Nuclear decommissioning trust funds</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>361</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>274</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">261</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>635</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">570</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Property</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>11,755</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11,121</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Property under capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>222</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">242</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Nuclear fuel under capital lease</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>663</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">659</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Construction work in progress</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>106</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">156</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>12,746</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12,178</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Less accumulated depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>5,598</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5,235</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>7,148</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6,943</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Regulatory Assets</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>2,935</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,091</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Other Assets</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>288</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">252</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Total Assets</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>12,316</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12,088</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)



<P align="center">34
<!-- PAGEBREAK -->
<P><HR noshade><P>



<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="75%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Current Liabilities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Accounts payable</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>273</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">239</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Accrued interest</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>57</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">57</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Dividends payable</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>75</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">75</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Accrued payroll</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>97</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">101</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>387</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">231</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Income taxes</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>61</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">69</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Current portion long-term debt</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>270</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">294</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Current portion capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>75</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">118</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>309</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">208</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,604</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,392</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Other Liabilities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Deferred income taxes</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,925</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,888</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>114</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">126</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Regulatory liabilities</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>262</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">294</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>564</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">493</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>2,865</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,801</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Long-Term Debt</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,938</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4,197</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Shareholders&#146; Equity</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Common stock, without par value, 400,000,000 shares
authorized, 145,041,324 and 145,071,317 issued
and outstanding, respectively</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,950</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,951</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Retained earnings</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,959</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,747</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,909</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,698</FONT></TD>
<TD></TD>
</tr>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD COLSPAN="2"><FONT size="2"><B>Commitments and Contingencies
(Notes 1, 2, 3, 4, 10, 11, 12 and 13)</B></font></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Total Liabilities and Shareholders&#146; Equity</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>12,316</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">12,088</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)



<P align="center">35
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>DTE Energy Company <br>Consolidated Statement of Changes in Shareholders&#146; Equity<BR>
(Millions, Except Per Share Amounts; Shares in Thousands)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="90%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="46%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Detroit Edison Cumulative Preferred Stock</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Redemption of Cumulative Preferred Stock</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,501</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(150</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Preferred stock expense</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>


<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>

<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Common Stock</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>145,071</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,951</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,098</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,951</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,120</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,951</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Repurchase and retirement of common stock</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(30</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(1</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(27</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(22</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>145,041</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,950</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,071</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,951</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,098</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,951</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Retained Earnings</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at beginning of year</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,747</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,611</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,493</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>483</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">443</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Dividends declared on common stock ($2.06
per share)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(299</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(299</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(299</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Preferred stock expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(6</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>28</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>

<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Balance at end of year</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,959</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,747</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,611</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total Shareholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>3,909</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,698</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,706</FONT></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>


</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)




<P align="center">36
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>[This page intentionally left blank.]</B>

<P align="center">37
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>The Detroit Edison Company<BR>
Consolidated Statement of Income<BR>
(Millions)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="54%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="11"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="11"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Revenues</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>4,047</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,902</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,657</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Expenses</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Fuel and purchased power</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,106</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,021</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">837</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Operation and maintenance</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,028</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">895</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>703</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">643</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">658</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Taxes other than income</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>275</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">270</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">264</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Operating Expenses</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,112</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,932</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,654</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Operating Income</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>935</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">970</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,003</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Interest Expense and Other</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Interest expense</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>284</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">277</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">282</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other &#151; net</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>6</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Interest Expense and Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>290</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">292</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">298</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Income Before Income Taxes</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>645</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">678</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">705</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Income Taxes</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>211</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">260</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">288</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Net Income</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>434</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">418</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Preferred Stock Dividends</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Net Income Available for Common Stock</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>434</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">412</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">405</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)






<P align="center">38
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>The Detroit Edison Company<BR>
Consolidated Statement of Cash Flows<BR>
(Millions)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="11"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="11"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Operating Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>434</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">418</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Adjustments to reconcile net income to net cash from operating activities:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>703</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">643</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">658</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>2</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(217</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(62</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Changes in current assets and liabilities:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Accounts receivable</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(70</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(51</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(18</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Inventories</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(6</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(28</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(16</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Payables</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>17</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">64</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(14</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(52</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(25</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">41</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash from operating activities</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,028</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">804</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,006</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Investing Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Plant and equipment expenditures</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(638</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(548</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(467</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash used for investing activities</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(638</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(548</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(467</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Financing Activities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Issuance of long-term debt</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>265</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">200</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Increase (decrease)&nbsp;in short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>131</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">231</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(10</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Redemption of long-term debt</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(468</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(219</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(185</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Redemption of preferred stock</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(150</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Dividends on common and preferred stock</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(319</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(328</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(331</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Net cash used for financing activities</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(391</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(266</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(526</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Net (Decrease) Increase in Cash and Cash Equivalents</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(1</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(10</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">13</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Cash and Cash Equivalents at Beginning of the Period</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Cash and Cash Equivalents at End of the Period</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Supplementary Cash Flow Information</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Interest paid (excluding interest capitalized)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>284</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">269</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">277</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">Income taxes paid</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>276</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">292</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">277</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2">New capital lease obligations</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">52</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">34</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)



<P align="center">39
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>The Detroit Edison Company<BR>
Consolidated Balance Sheet<BR>
(Millions, Except Per Share Amounts and Shares)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="66%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>ASSETS</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Current Assets</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Cash and cash equivalents</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Accounts receivable</font></td>
</tr>
<TR valign="bottom">

<TD></TD>
<TD></TD>
<TD><FONT size="2">Customer (less allowance for doubtful
accounts of $20 for 1999 and 1998)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>316</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">307</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Accrued unbilled revenues</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>166</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">153</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>138</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">90</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD COLSPAN="2"><FONT size="2">Inventories (at average cost)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B></B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"></FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Fuel</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>175</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">171</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Materials and supplies</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>140</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">138</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>29</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">21</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>968</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">885</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Investments</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Nuclear decommissioning trust funds</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>361</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>34</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">74</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>395</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">383</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Property</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>11,204</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10,610</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Property under capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>221</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">242</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Nuclear fuel under capital lease</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>663</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">659</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Construction work in progress</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">118</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>12,092</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11,629</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Less accumulated depreciation and amortization</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>5,526</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5,201</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>6,566</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6,428</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Regulatory Assets</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>2,935</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,091</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Other Assets</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>187</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">200</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Total Assets</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>11,051</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,987</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">(See Notes to Consolidated Financial Statements.)






<P align="center">40
<!-- PAGEBREAK -->
<P><HR noshade><P>



<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="73%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2">December 31</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2">1998</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>LIABILITIES AND
SHAREHOLDERS&#146; EQUITY</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Current Liabilities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>224</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">211</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>54</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">54</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends payable</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>80</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">80</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>90</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">86</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>362</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">231</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>84</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">60</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>194</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">219</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion capital leases</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>75</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">118</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>159</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">203</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>1,322</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,262</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Other Liabilities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>1,879</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,846</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital leases</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>114</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">126</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>262</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">294</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>562</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">484</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>2,817</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2,750</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Long-Term Debt</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>3,284</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,462</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Shareholders&#146;
Equity</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">

<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
stock, $10 par value, 400,000,000 shares<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized, 145,119,875 issued and outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>1,451</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,451</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium on common stock</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>548</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">548</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock expense</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(48</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(48</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>1,677</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,562</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>3,628</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,513</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>


<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Commitments and Contingencies (Notes 1, 2, 3, 9, 10, 11 and 12)</B></FONT></TD></TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2"><B>Total Liabilities and Shareholders&#146; Equity</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>11,051</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,987</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>
<BR>
<BR>
<CENTER>
<P align="center">(See Notes to Consolidated Financial Statements.)
<P align="center">41
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>The Detroit Edison Company<BR>
Consolidated Statement of Changes in Shareholders&#146; Equity<BR>
(Millions, Except Per Share Amounts; Shares in Thousands)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="90%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="43%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Amount</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Cumulative Preferred Stock</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Balance at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Redemption of Cumulative Preferred Stock</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1,501</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(150</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Preferred stock expense</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Balance at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,501</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">144</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Common Stock</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>145,120</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,451</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,120</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,451</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">145,120</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,451</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Premium on Common Stock</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>548</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">548</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">548</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Common Stock Expense</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(48</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(48</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(48</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Retained Earnings</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Balance at beginning of year</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,562</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,478</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,392</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>434</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">418</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Dividends declared</font></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Common stock ($2.20 per share)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(319</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(319</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(319</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">Cumulative Preferred Stock*</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(6</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(12</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Preferred stock expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(6</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(3</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Balance at end of year</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,677</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,562</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,478</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Total Shareholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>3,628</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,513</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,573</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">*</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">At established rate for each series.</TD>
</TR>
</TABLE>

<P align="center">(See Notes to Consolidated Financial Statements.)



<P align="center">42
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B>DTE Energy Company and The Detroit Edison Company<BR>
Notes to Consolidated Financial Statements</B>

<P align="left"><B>NOTE 1 &#151; SIGNIFICANT ACCOUNTING POLICIES</B>
<hr noshade>
<P align="left"><B>Corporate Structure and Principles of Consolidation</B>

<P>DTE Energy Company (Company), a Michigan corporation incorporated in 1995, is
an exempt holding company under the Public Utility Holding Company Act. The
Company has no significant operations of its own, holding instead the stock of
its principal operating subsidiary, The Detroit Edison Company (Detroit
Edison), an electric public utility regulated by the Michigan Public Service
Commission (MPSC)&nbsp;and the Federal Energy Regulatory Commission (FERC), and
other energy-related businesses.

<P>All majority owned subsidiaries are consolidated. Non-majority owned
investments, including investments in limited liability companies, partnerships
and joint ventures are accounted for using the equity method. All significant
inter-company balances and transactions have been eliminated.

<P>In October&nbsp;1999, the Company&#146;s investee, Plug Power Inc., completed its initial
public offering (IPO)&nbsp;of shares of common stock at $15 per share. After the
IPO, the Company owned approximately 32% of Plug Power&#146;s outstanding common
stock. As a result of Plug Power&#146;s IPO, the Company recognized its
proportionate share of Plug Power&#146;s net assets immediately after the IPO and
recorded an increase of $44&nbsp;million in its investment and an after-tax increase
of $28&nbsp;million to retained earnings with no earnings impact in 1999.

<P align="left"><B>Use of Estimates in the Preparation of Financial Statements</B>

<P>The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

<P align="left"><B>Regulation and Regulatory Assets and Liabilities</B>

<P>Detroit Edison&#146;s transmission and distribution business meets the criteria of
Statement of Financial Accounting Standards (SFAS)&nbsp;No.&nbsp;71, &#147;Accounting for the
Effects of Certain Types of Regulation.&#148; This accounting standard recognizes
the cost based ratemaking process which results in differences in the
application of generally accepted accounting principles between regulated and
non-regulated businesses. SFAS No.&nbsp;71 requires the recording of regulatory
assets and liabilities for certain transactions that would have been treated as
revenue and expense in non-regulated businesses. Detroit Edison&#146;s regulatory
assets and liabilities are being amortized to revenue and expense as they are
included in rates. Continued applicability of SFAS No.&nbsp;71 requires that rates
be designed to recover specific costs of providing regulated services and
products, and that it be reasonable to
<P align="center">43
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P>assume that rates are set at levels that
will recover a utility&#146;s costs and can be charged to and collected from
customers.

<P>MPSC Orders issued in 1997 and 1998 altered the regulatory process in Michigan
and provided a plan for transition to competition for the generation business
of Detroit Edison. Therefore, effective December&nbsp;31, 1998, Detroit Edison&#146;s
generation business no longer met the criteria of SFAS No.&nbsp;71. Detroit Edison
did not write off any regulatory assets as a result of the discontinuation of
SFAS No.&nbsp;71 for its generation business, since accounting guidance issued by
the Financial Accounting Standards Board and its Emerging Issues Task Force
permits the recording of regulatory assets which are expected to be recovered
through regulated rates. A December&nbsp;1998 MPSC Order authorized the recovery of
an additional regulatory asset equal to the net book value of Fermi 2 at
December&nbsp;31, 1998, which includes recoverable income taxes, deferred tax
credits and deferred amortization. See the following table of regulatory
assets and liabilities, and Note 3 for further details.

<P>Detroit Edison has recorded the following regulatory assets and liabilities at
December&nbsp;31:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="66%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2"><B>Assets</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Unamortized nuclear costs</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>2,570</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,808</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Unamortized loss on reacquired debt</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>85</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">94</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Recoverable income taxes</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>201</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">107</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Power supply cost recovery</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>39</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">49</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">1997 storm damage costs</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Electric Choice implementation costs</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>29</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">7</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>11</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Assets</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>2,935</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,091</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2"><B>Liabilities</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Unamortized deferred investment tax credits</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>177</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">188</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Fermi 2 capacity factor performance standard</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>63</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">86</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>22</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">20</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Total Liabilities</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>262</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">294</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</center>
<p align="left"><i><b>Unamoritized nuclear costs &#151; See Note 3.</b></i>



<P align="center">44
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<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<P align="left"><B><I>Unamortized loss on reacquired debt</I></B>

<P>In accordance with MPSC regulations applicable to Detroit Edison, the discount,
premium and expense related to debt redeemed with a refinancing are amortized
over the life of the replacement issue, or if related to the generation
business, beginning in 2002 they will be amortized through 2007. See Note 3.
Discount, premium and expense on early redemptions of debt subsequent to
December&nbsp;31, 1998 are charged to earnings if they relate to the generation
business of Detroit Edison.

<P align="left"><B><I>Recoverable income taxes</I></B>

<P>In 1993, the Company was required to adopt SFAS No.&nbsp;109, &#147;Accounting for Income
Taxes.&#148; SFAS No.&nbsp;109 requires that deferred income taxes be recorded at the
current income tax rate for all temporary differences between the book and tax
basis of assets and liabilities. Prior to 1993, only those deferred taxes that
were authorized by the MPSC were recorded. Upon adoption of SFAS No.&nbsp;109, the
MPSC authorized the Company to record a regulatory asset providing assurance of
future revenue recovery from customers for all deferred income taxes.

<P align="left"><B><I>Power supply cost recovery (PSCR)</I></B>

<P>State legislation provides Detroit Edison a mechanism for recovery of changes
in power supply costs for purchased power and generation based on a
reconciliation of actual costs and usage which is subject to MPSC approval.

<P align="left"><B><I>1997 storm damage costs</I></B>

<P>The costs of major storms in 1997 were deferred, as authorized by the MPSC, and
were amortized into expense in 1998 and 1999 as they were recovered through
rates.

<P align="left"><B><I>Electric Choice implementation costs</I></B>

<P>Costs incurred to implement the Electric Choice Program are being deferred,
with amortization planned to begin coincident with full implementation of the
program.

<P align="left"><B><I>Unamortized deferred investment tax credits</I></B>

<P>Investment tax credits utilized, which relate to utility property, were
deferred and are amortized over the estimated composite service life of the
related property.

<P align="left"><B><I>Fermi 2 capacity factor performance standard</I></B>

<P>The MPSC has established a mechanism which provides for the disallowance of net
incremental replacement power cost if Fermi 2 does not perform to certain
operating criteria. A disallowance is imposed for the amount by which the
Fermi 2 three-year rolling average capacity factor is less than the greater of
either the average of the top 50% of U.S. boiling water reactors or 50%. An
estimate of the incremental cost of replacement

<P align="center">45
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>power is required in computing
the reserve for amounts due customers under this performance standard.

<P align="left"><B>Cash Equivalents</B>

<P>For purposes of the Consolidated Statement of Cash Flows, the Company considers
investments purchased with a maturity of three months or less to be cash
equivalents.

<P align="left"><B>Restricted Cash</B>

<P>Cash maintained for debt service requirements and other contractual obligations
is classified as restricted cash.

<P align="left"><B>Revenues</B>

<P>Detroit Edison records unbilled revenues for electric and steam heating
services provided after cycle billings through month-end.

<P align="left"><B>Property, Retirement and Maintenance, Depreciation and Amortization</B>

<P>A summary of property by classification at December&nbsp;31 is as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="59%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Transmission and
distribution</font></td>
</tr>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Property</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>5,598</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">5,354</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Construction work in progress</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Property under capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Less accumulated depreciation</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(2,180</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2,063</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,423</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,299</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Generation</font></td>
</tr>
<TR valign="bottom">

<TD></TD>
<td><font size="2">Property</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>5,606</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5,256</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Construction work in progress</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">115</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Property under capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>217</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">237</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Less accumulated depreciation</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(2,747</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2,587</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>3,079</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3,021</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Nuclear fuel under capital lease</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>663</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">659</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Less accumulated amortization</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(599</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(551</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>64</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">108</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">46
<!-- PAGEBREAK -->
<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="60%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Non-utility</font></td>

</tr>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<td><font size="2">Property</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>551</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">511</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Construction work in progress</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>102</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">38</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Property under capital leases</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Less accumulated depreciation</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(72</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(34</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>582</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">515</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Total property</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>7,148</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">6,943</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<HR size="1">
<P>Utility properties are stated at original cost less regulatory disallowances
and impairment losses. In general, the cost of properties retired in the
normal course of business is charged to accumulated depreciation. Expenditures
for maintenance and repairs are charged to expense as incurred, and the cost of
new property installed, which replaces property retired, is charged to property
accounts. Detroit Edison recognizes a provision for incremental costs of Fermi
2 refueling outages, including maintenance activities, anticipated to be
incurred during the next scheduled Fermi 2 refueling outage. The annual
provision for utility property depreciation is calculated on the straight-line
remaining life method by applying annual rates approved by the MPSC to the
average of year-beginning and year-ending balances of depreciable property by
primary plant accounts. Provision for depreciation of utility plant, as a
percent of average depreciable property, was 3.33%, 3.32% and 3.29% for 1999,
1998 and 1997, respectively.

<P>Non-utility property is stated at original cost. Depreciation is computed over
the estimated useful lives using straight-line and declining-balance methods.

<P align="left"><B>Long-Lived Assets</B>

<P>Long-lived assets held and used by the Company are reviewed based on market
factors and operational considerations for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable.

<P align="left"><B>Software Costs</B>

<P>The Company capitalizes the cost of software developed for internal use. These
costs are amortized on a straight-line basis over a five-year period beginning
with the project&#146;s completion.

<P align="left"><B>Debt Issue Costs</B>

<P>The costs related to the issuance of long-term debt are amortized over the life
of each issue.

<P align="center">47
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<P align="left"><B>Stock-Based Compensation</B>

<P>The Company accounts for stock-based compensation using the intrinsic value
method. Compensation expense is not recorded for stock options granted with an
exercise price equal to the fair market value at the date of grant. For grants
of restricted stock, compensation equal to the market value of the shares at
the date of grant is deferred and amortized to expense over the vesting period.

<P align="left"><B>Accounting for Risk Management Activities</B>

<P>Trading activities of DTE Energy Trading, Inc. (DTE ET), an indirect wholly
owned subsidiary of the Company, are accounted for using the mark-to-market
method of accounting. Under such method, DTE ET&#146;s energy trading contracts,
including both transactions for physical delivery and financial instruments,
are recorded at market value. The resulting unrealized gains and losses from
changes in market value of open positions are recorded as other current assets
or liabilities. Current period changes in the trading assets or liabilities
are recognized as net gains or losses in operating revenues. The market prices
used to value these transactions reflect management&#146;s best estimate considering
various factors, including closing exchange and over-the-counter quotations,
time value and volatility factors underlying the commitments. Realized gains
and losses from transactions settled with cash are also recognized in operating
revenues. Transactions settled by physical delivery of power are recorded
gross in operating revenues and fuel and purchased power expense.

<P>Detroit Edison continues to account for its forward purchase and sale
commitments and over-the-counter options on a settlement basis.

<P align="left"><B>New Accounting Standard</B>

<P>In June&nbsp;1998, the Financial Accounting Standards Board issued SFAS No.&nbsp;133,
&#147;Accounting for Derivative Instruments and Hedging Activities.&#148; This statement
requires companies to record derivatives on the balance sheet as assets and
liabilities, measured at fair value. Gains or losses resulting from changes in
the values of those derivatives would be accounted for depending on the use of
the derivative and whether it qualifies for hedge accounting. In June&nbsp;1999,
SFAS No.&nbsp;137, &#147;Accounting for Derivative Instruments and Hedging Activities &#150;
Deferral of the Effective Date of FASB Statement No.&nbsp;133&#148; was issued. SFAS No.
137 amends the effective date of SFAS No.&nbsp;133 to fiscal years beginning after
June&nbsp;15, 2000, with earlier adoption encouraged. The Company will adopt this
accounting standard as required by January&nbsp;1, 2001, but has not yet determined
the impact of this new pronouncement on the consolidated financial statements.

<P align="left"><B>Reclassifications</B>

<P>Certain prior year balances have been reclassified to conform to the 1999
presentation.

<P align="center">48
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<P><B>NOTE 2 &#151; MERGER AGREEMENT</B>

<HR size="1">




<P>On October&nbsp;4, 1999, the Company entered into a definitive merger agreement with
MCN Energy Group Inc. (MCN). MCN, a Michigan corporation, is primarily
involved in natural gas production, gathering, processing, transmission,
storage and distribution, electric power generation and energy marketing.
MCN&#146;s largest subsidiary is Michigan Consolidated Gas Company, a natural gas
utility serving 1.2&nbsp;million customers in more than 500 communities throughout
Michigan. Shareholders of the Company have approved the issuance of the
necessary shares of common stock to complete the merger and shareholders of MCN
have approved the Agreement and Plan of Merger. The merger, which is also
subject to a number of regulatory approvals and other agreed upon conditions,
is expected to be completed in the first half of 2000. The merger agreement
provides that the Company will acquire all outstanding shares of MCN for $28.50
per share in cash or 0.775 shares of Company common stock for each share of
MCN common stock, subject to certain allocation procedures requiring that the
aggregate number of shares of MCN common stock that will be converted into cash
and the Company&#146;s common stock will be equal to 55% and 45%, respectively, of
the total number of shares of MCN common stock outstanding immediately prior to
the merger. The transaction was preliminarily valued at $4.6&nbsp;billion, which
includes the assumption of approximately $2&nbsp;billion of MCN&#146;s debt. The Company
expects to continue as an exempt public utility holding company after the
completion of the merger.

<P align="left"><B>NOTE 3 &#151; REGULATORY MATTERS</B>

<HR size="1">




<P>Detroit Edison is subject to the primary regulatory jurisdiction of the MPSC,
which, from time to time, issues its Orders pertaining to Detroit Edison&#146;s
conditions of service, rates and recovery of certain costs including the costs
of generating facilities. MPSC Orders issued December&nbsp;1988, January&nbsp;1994,
November&nbsp;1997, December&nbsp;1998 and March&nbsp;1999, are currently in effect with
respect to Detroit Edison&#146;s rates and certain other revenue, accounting and
operating-related matters.

<P align="left"><B>Electric Industry Restructuring</B>

<P>There are ongoing proceedings for the restructuring of the Michigan electric
public utility industry and the implementation of Electric Choice. During the
period from 1997 through 1999, the MPSC issued several Orders relating to
Electric Choice and competition.

<P>In a December&nbsp;28, 1998 Order, as clarified March&nbsp;8, 1999, the MPSC authorized
the accelerated amortization of the remaining net book balances (as of December
31, 1998) of Fermi 2 and its associated regulatory assets in a manner that will
provide an opportunity for full recovery under current rates from bundled
customers and through transition surcharges from future retail access
customers, taking into account the related tax consequences of those assets, by
December&nbsp;31, 2007.

<P>The December&nbsp;28, 1998 Order, as clarified March&nbsp;8, 1999, imposed conditions for
the recovery by Detroit Edison of accelerated amortization of Fermi 2 and on
March&nbsp;8,

<P align="center">49




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<P><HR noshade><P>



<P>1999, the MPSC issued Orders clarifying several issues related to
Electric Choice. As a result of the Order, as clarified, Detroit Edison:

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Reduced its base rates by approximately $94&nbsp;million annually ,
effective January&nbsp;1, 1999 and effective January&nbsp;1, 2000, by an
additional $15&nbsp;million to reflect the expiration of the two-year
extraordinary storm damage surcharge;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Indicated it will reduce its jurisdictional retail rates by removing
the Fermi 2 regulatory asset, referred to in Note 1 as unamortized
nuclear costs, from rate base on a pro rata jurisdictional rate
basis when such asset reaches zero, which is currently anticipated
to occur January&nbsp;1, 2008;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Indicated that while it has no plans to sell Fermi 2, should such a
sale occur, it will return to customers the difference between Fermi
2&#146;s net book value (currently recorded as a regulatory asset) at the
time of sale and the actual sale price; and the MPSC will be advised
of a purchase of Detroit Edison during the accelerated amortization
period so that the MPSC may determine whether the proposed
transaction is in the public interest and properly balances the
interests of investors and customers;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Agreed that should Detroit Edison seek to abandon Fermi 2 (which
Detroit Edison has no plans to do) during the accelerated
amortization period, and only if electric generation has not been
deregulated by either Michigan state or federal action, Detroit
Edison will initiate a contested case proceeding before the MPSC
seeking approval of the abandonment;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Indicated that if its earned rate of return exceeds its authorized
rate of return during the period of time that amortization of Fermi
2 is being accelerated, it will apply 50% of the excess earnings to
reduce its stranded investment in Fermi 2;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Indicated it will implement a 90 megawatt (MW)&nbsp;Electric Choice pilot
program and will also begin the phase-in of full Electric Choice
commencing in 1999, with full Electric Choice effective January&nbsp;1,
2002; and</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">&#149;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Indicated it will use its &#147;best efforts&#148; to provide standby service
to Electric Choice customers. Best efforts means that Detroit
Edison must make the service available to Electric Choice customers
who request it, but Detroit Edison does not have to build or
purchase new capacity or interrupt firm customers to provide the
service. Standby service is to be priced at Detroit Edison&#146;s top
incremental cost plus 1 cent.</TD>
</TR>
</TABLE>
<P>Several parties have filed petitions for rehearing or clarification; the MPSC
has not ruled on these petitions. The Association of Businesses Advocating
Tariff Equity in Michigan (ABATE)&nbsp;has also filed an appeal with the Michigan
Court of Appeals. Detroit Edison is unable to determine the timing or outcome
of these proceedings.

<P align="left"><B>Accounting Implications</B>

<P>Detroit Edison accounts for its transmission and distribution business in
accordance with SFAS No.&nbsp;71. Continued application of SFAS No.&nbsp;71 by Detroit
Edison requires: 1) third party regulation of rates, 2) cost-based rates, and
3) a reasonable assumption that all costs will be recoverable from customers
through rates.

<P>Due to the restructuring orders which provided sufficient details regarding the
transition to competition for its electric generation business, effective
December&nbsp;31, 1998, Detroit

<P align="center">50
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<P>Edison adopted the provisions of SFAS No.&nbsp;101,
&#147;Regulated Enterprises-Accounting for the Discontinuation of Application of
FASB Statement No.&nbsp;71,&#148; for its electric generation business. SFAS No.&nbsp;101
requires an evaluation to be performed to determine whether or not indications
of impairment exist for plant assets under SFAS No.&nbsp;121, &#147;Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,&#148;
and the elimination of certain effects of rate regulation that have been
recognized as assets or liabilities pursuant to SFAS No.&nbsp;71.

<P>At December&nbsp;31, 1998, Detroit Edison performed an impairment test of its Fermi
2 nuclear generation plant and related regulatory assets pursuant to SFAS No.
121. The impairment test for Fermi 2 indicated that it was fully impaired.
Therefore, the Fermi 2 plant asset and its related regulatory assets were
written off. At December&nbsp;31, 1998, the accumulation of future regulatory
recovery for Fermi 2 assets from bundled customers and transition surcharges
from future retail access customers was calculated. Since the December&nbsp;28,
1998 MPSC Order provides for full recovery of Fermi 2 through the regulated
transmission and distribution business, a regulatory asset was established
which will be amortized through December&nbsp;31, 2007. There was no impact on
income from the write off of the Fermi 2 plant assets and subsequent recording
of the regulatory asset for unamortized nuclear costs.

<P align="left"><B>1988 Settlement Agreement</B>

<P>The December&nbsp;1988 MPSC Order established for the period January&nbsp;1989 through
December&nbsp;2003: 1) a cap on Fermi 2 capital additions of $25&nbsp;million per year,
in 1988 dollars adjusted by the Consumers Price Index (CPI), cumulative, 2) a
cap on Fermi 2 non-fuel operation and maintenance expenses adjusted by the CPI,
and 3) a capacity factor performance standard based on a three-year rolling
average commencing in 1991. For a capital investment of $200&nbsp;million or more
(in 1988 dollars adjusted by the CPI), Detroit Edison must obtain prior MPSC
approval to include the investment in rate base. Under the cap on Fermi 2
capital expenditures, the cumulative amount available totals $76&nbsp;million (in
1999 dollars) at December&nbsp;31, 1999. In a 1999 filing on the true-up of
stranded costs, Detroit Edison requested continued recovery of Fermi 2 capital
additions through 2007, which is the end of the transition period for stranded
cost recovery as ordered by the MPSC. The 1999 Fermi 2 capital additions of
$27&nbsp;million are recorded as a regulatory asset. Under the cap on Fermi 2
non-fuel operation and maintenance expenses, the cumulative amount available
totals $143&nbsp;million (in 1999 dollars) at December&nbsp;31, 1999.

<P>Under the December&nbsp;1988 Order, if nuclear operations at Fermi 2 permanently
cease, amortization in rates of a $513&nbsp;million investment in Fermi 2 would
continue and the remaining net rate base investment amount would be removed
from rate base and amortized in rates, without return, over 10&nbsp;years with such
amortization not to exceed $290&nbsp;million per year. The December&nbsp;1988 and
January&nbsp;1994 Orders do not address the costs of decommissioning if the
operations at Fermi 2 prematurely cease.

<P>In accordance with a November&nbsp;1997 MPSC Order, Detroit Edison reduced revenues
by $53&nbsp;million to reflect the scheduled reduction in the revenue requirement
for Fermi 2, in accordance with the 1988 settlement agreement. The $53&nbsp;million
decrease is

<P align="center">51
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<P> included in the $94&nbsp;million decrease effective January&nbsp;1, 1999. In
addition, the November&nbsp;1997 MPSC Order authorized the deferral of $30&nbsp;million
of 1997 storm damage costs and amortization and recovery of the costs over a
24-month period commencing January&nbsp;1998. In December&nbsp;1997, ABATE and the
Residential Ratepayer Consortium filed a lawsuit in Ingham County Circuit Court
contending that Detroit Edison and the MPSC breached the December&nbsp;1988 MPSC
Order but the lawsuit was subsequently dismissed. The Michigan Attorney General
has filed an appeal of the November&nbsp;1997 Order in the Michigan Court of
Appeals. In June&nbsp;1999, in an unpublished opinion, the Michigan Court of
Appeals remanded back to the MPSC for hearing the November&nbsp;1997 Order. Detroit
Edison filed a motion for rehearing with the Michigan Court of Appeals in July
1999, but the motion was subsequently dismissed. Detroit Edison is unable to
determine the timing or the outcome of the remand.

<P align="left"><B>NOTE 4 &#151; FERMI 2</B>

<HR size="1">




<P align="left"><B>General</B>

<P>Fermi 2, a nuclear generating unit, began commercial operation in January&nbsp;1988.
The Nuclear Regulatory Commission (NRC)&nbsp;maintains jurisdiction over the
licensing and operation of Fermi 2. Fermi 2 has a design electrical rating
(net)&nbsp;of 1,150 MW. This unit represents approximately 11% of total operation
and maintenance expenses and 10% of summer net rated capability. The net book
balance of the Fermi 2 plant was written off at December&nbsp;31, 1998 and an
equivalent regulatory asset was established.

<P>Ownership of an operating nuclear generating unit subjects Detroit Edison to
significant additional risks. Fermi 2 is regulated by a number of different
governmental agencies concerned with public health, safety and environmental
protection. Consequently, Fermi 2 is subjected to greater scrutiny than a
conventional fossil-fueled plant. See Note 3.

<P align="left"><B>Insurance</B>

<P>Detroit Edison insures Fermi 2 with property damage insurance provided by
Nuclear Electric Insurance Limited (NEIL). The NEIL insurance policies provide
$500&nbsp;million of composite primary coverage (with a $1&nbsp;million deductible) and
$2.25&nbsp;billion of excess coverage, respectively, for stabilization,
decontamination and debris removal costs, repair and/or replacement of property
and decommissioning. Accordingly, the combined limits provide total property
damage insurance of $2.75&nbsp;billion.

<P>Detroit Edison maintains insurance policies with NEIL providing for extra
expenses, including certain replacement power costs necessitated by Fermi 2&#146;s
unavailability due to an insured event. These policies have a 12-week waiting
period and provide for three years of coverage.

<P>Under the NEIL policies, Detroit Edison could be liable for maximum
retrospective assessments of up to approximately $20&nbsp;million per loss if any
one loss should exceed the accumulated funds available to NEIL.

<P align="center">52
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<P>As required by federal law, Detroit Edison maintains $200&nbsp;million of public
liability insurance for a nuclear incident. Further, under the Price-Anderson
Amendments Act of 1988, deferred premium charges of $84&nbsp;million could be levied
against each licensed nuclear facility, but not more than $10&nbsp;million per year
per facility. On December&nbsp;31, 1999, there were 106 licensed nuclear facilities
in the United States. Thus, deferred premium charges in the aggregate amount
of approximately $8.89&nbsp;billion could be levied against all owners of licensed
nuclear facilities in the event of a nuclear incident at any of these
facilities.

<P align="left"><B>Decommissioning</B>

<P>The NRC has jurisdiction over the decommissioning of nuclear power plants and
requires decommissioning funding based upon a formula. The MPSC and FERC
regulate the recovery of costs of decommissioning nuclear power plants and both
require the use of external trust funds to finance the decommissioning of Fermi
2. Base rates approved by the MPSC provide for the decommissioning costs of
Fermi 2. Detroit Edison is continuing to fund FERC jurisdictional amounts for
decommissioning even though explicit provisions are not included in FERC rates.
Detroit Edison believes that the MPSC and FERC collections will be adequate to
fund the estimated cost of decommissioning using the NRC formula.

<P>Detroit Edison has established external trust funds to hold decommissioning and
low-level radioactive waste disposal funds collected from customers. During
1999, 1998 and 1997 Detroit Edison collected $38&nbsp;million, $36&nbsp;million and $36
million, respectively, from customers for decommissioning and low-level
radioactive waste disposal. Such amounts were recorded as components of
depreciation and amortization expense and in other liabilities. Net unrealized
gains of $4&nbsp;million and $37&nbsp;million in 1999 and 1998, respectively, were
recorded as increases to the nuclear decommissioning trust funds and other
liabilities. Investments in debt and equity securities held within the
external trust funds are classified as &#147;available for sale.&#148;

<P>At December&nbsp;31, 1999, Detroit Edison had a reserve of $314&nbsp;million for the
future decommissioning of Fermi 2, $12&nbsp;million for low-level radioactive waste
disposal costs, and $35&nbsp;million for the future decommissioning of Fermi 1, an
experimental nuclear unit on the Fermi 2 site that has been shut down since
1972. These reserves are included in other liabilities, with a like amount
deposited in external trust funds. It is estimated that the cost of
decommissioning Fermi 2 when its license expires in the year 2025 will be $688
million in 1999 dollars and $3&nbsp;billion in 2025 dollars using a 6% inflation
rate, and the cost of decommissioning Fermi 1 in 2025 is $34&nbsp;million in 1999
dollars and $161&nbsp;million in 2025 dollars using a 6% inflation rate.

<P align="left"><B>Fermi 2 Phase-In Plan</B>

<P>SFAS No.&nbsp;92, &#147;Regulated Enterprises &#151; Accounting for Phase-in Plans,&#148; permits
the capitalization of costs deferred for future recovery under a phase-in plan.
Based on a MPSC-authorized phase-in plan, Detroit Edison recorded a receivable
totaling $506.5&nbsp;million from 1988 through 1992. Beginning in 1993 and ending
in 1998, these amounts

<P align="center">53
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<P>were amortized to operating expense as they were
included in rates. Amortization of these amounts totaled $84&nbsp;million and $112
million in 1998 and 1997, respectively.

<P align="left"><B>Capacity Factor Performance Standard</B>

<P>The capacity factor disallowances for 1998 and 1999 have not yet been
determined by the MPSC. At December&nbsp;31, 1999 and 1998, Detroit Edison had
accruals of $63&nbsp;million and $86&nbsp;million, respectively, for the Fermi 2 capacity
factor performance standard disallowances that are expected to be imposed by
the MPSC for 1998 and 1999, and for the estimated impact on the 2000 capacity
factor disallowance resulting from Fermi 2&#146;s lower than expected capacity
utilization in 1998.

<P align="left"><B>Nuclear Fuel Disposal Costs</B>

<P>In accordance with the Federal Nuclear Waste Policy Act of 1982, Detroit Edison
has a contract with the United States Department of Energy (DOE)&nbsp;for the future
storage and disposal of spent nuclear fuel from Fermi 2. Detroit Edison is
obligated to pay DOE a fee of one mill per net kilowatthour of Fermi 2
electricity generated and sold. The fee is a component of nuclear fuel
expense. Delays have occurred in the DOE&#146;s program for the acceptance and
disposal of spent nuclear fuel at a permanent repository. Until the DOE is
able to fulfill its obligation under the contract, Detroit Edison is
responsible for the spent nuclear fuel storage and estimates that existing
storage capacity will be sufficient until 2001, or until 2015 with expansion of
such storage capacity. Plans are currently under way to complete the expansion
project by 2001.

<P align="left"><B>NOTE 5 &#151; JOINTLY-OWNED UTILITY PLANT</B>

<HR size="1">




<P>Detroit Edison&#146;s portion of jointly-owned utility plant is as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
<TR valign="bottom">
<TD width="46%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="10%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Belle River</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Ludington Pumped Storage</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">In-service date</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1984-1985</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1973</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Ownership interest</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">*</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">49</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Investment (millions)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,031</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">190</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Accumulated depreciation (millions)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">90</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">*</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Detroit Edison&#146;s ownership interest is 62.78% in Unit No.&nbsp;1, 81.39%
of the portion of the facilities applicable to Belle River used jointly
by the Belle River and St. Clair Power Plants, 49.59% in certain
transmission lines and, at December&nbsp;31, 1999, 75% in facilities used in
common with Unit No.&nbsp;2.</TD>
</TR>
</TABLE>





<P align="left"><B>Belle River</B>

<P>The Michigan Public Power Agency (MPPA)&nbsp;has an ownership interest in Belle
River Unit No.&nbsp;1 and certain other related facilities. MPPA is entitled to
18.61% of the capacity and energy of the entire plant and is responsible for
the same percentage of the plant&#146;s operation and maintenance expenses and
capital improvements.

<P align="center">54
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<P align="left"><B>Ludington Pumped Storage</B>

<P>Operation, maintenance and other expenses of the Ludington Pumped Storage Plant
are shared by Detroit Edison and Consumers Energy Company in proportion to
their respective ownership interests in the plant.

<P align="left"><B>NOTE 6 &#151; INCOME TAXES</B>

<HR size="1">




<P>Total income tax expense as a percent of income before tax varied from the
statutory federal income tax rate for the following reasons:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="68%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Statutory income tax rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>35.0 </B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">35.0 </FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">35.0 </FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Deferred Fermi 2 depreciation and return</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.6</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Investment tax credit</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(1.9</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2.5</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2.1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Depreciation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1.5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.6</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Removal costs</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(2.3</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1.9</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1.5</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Alternate fuels credit</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(21.3</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(13.1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(3.5</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Other-net</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>0.1</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1.0</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.4</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Effective income tax rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>11.1 </B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">25.5 </FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">37.5 </FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Components of income tax expense were as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="71%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Current federal income tax expense</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>144</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">143</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">267</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Deferred federal income tax (benefit)&nbsp;expense &#151; net</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(73</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">26</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Investment tax credit</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(11</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(15</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(15</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>60</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">154</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">257</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>





<P>Internal Revenue Code Section&nbsp;29 provides a tax credit (alternate fuels credit)
for qualified fuels produced and sold by a taxpayer to an unrelated person
during the taxable year. The alternate fuels credit reduced current federal
income tax expense $116&nbsp;million, $79&nbsp;million and $24&nbsp;million for 1999, 1998 and
1997 respectively.

<P align="center">55
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>Deferred income tax assets (liabilities)&nbsp;were comprised of the following at
December&nbsp;31:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="58%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Property</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,209</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,139</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Unamortized nuclear costs</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(899</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(983</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Property taxes</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(66</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(66</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Investment tax credit</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>96</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">154</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Reacquired debt losses</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(30</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(32</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Contributions in aid of construction</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>73</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">63</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>51</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">55</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,984</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,948</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Deferred income tax liabilities</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(2,463</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(2,447</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Deferred income tax assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>479</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">499</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,984</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,948</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>





<P>The federal income tax returns of the Company are settled through the year
1992. The Company believes that adequate provisions for federal income taxes
have been made through December&nbsp;31, 1999.

<P align="left"><B>NOTE 7 &#151; SHAREHOLDERS&#146; EQUITY</B>

<HR size="1">




<P>At December&nbsp;31, 1999, the Company had 5&nbsp;million shares of Cumulative Preferred
Stock, without par value, authorized with no shares issued. At December&nbsp;31,
1999, 1.5&nbsp;million shares of preferred stock are reserved for issuance in
accordance with the
Shareholders Rights Agreement.

<P>At December&nbsp;31, 1999, Detroit Edison had 30&nbsp;million shares of Cumulative
Preference Stock of $1 par value and 6.75&nbsp;million shares of Cumulative
Preferred Stock of $100 par value authorized, with no shares issued. All of
Detroit Edison&#146;s 7.75% Series and 7.74% Series&nbsp;Cumulative Preferred Stock were
redeemed in 1998.

<P>In September&nbsp;1997, the Board of Directors of the Company declared a dividend
distribution of one right (Right) for each share of Company common stock
outstanding. Under certain circumstances, each Right entitles the shareholder
to purchase one one-hundredth of a share of Company Series&nbsp;A Junior
Participating Preferred Stock at a price of $90. If the acquiring person or
group acquires 10% or more of the Company common stock, and the Company
survives, each Right (other than those held by the acquirer) will entitle its
holder to buy Company common stock having a value of $180 for $90. If the
acquiring person or group acquires 10% or more of the Company common stock, and
the Company does not survive, each Right (other than those held by the
surviving or acquiring company) will entitle its holder to buy shares of common
stock of the surviving or acquiring company having a value of $180 for $90.
The Rights will expire on October&nbsp;6, 2007, unless redeemed by the Company at
$0.01 per Right at any time prior to an event which would permit the Rights to
be exercised. The Company may amend the

<P align="center">56
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P>Rights agreement without the approval
of the holders of the Rights Certificates, except that the redemption price may
not be less than $0.01 per Right.

<P align="left"><B>NOTE 8 &#151; LONG-TERM DEBT</B>
<HR size="1">
<P>The Company&#146;s long-term debt outstanding at December&nbsp;31 was:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="53%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Mortgage Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">5.6% to 8.4% due 2000 to 2023</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,539</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,742</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Remarketed Notes</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">6.0% to 6.4% due 2028 to 2034 (a)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>410</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">410</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">6.2% and 7.1% due 2038</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>400</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">400</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Tax Exempt Revenue Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2"><B>Secured by Mortgage Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Installment Sales Contracts
6.9% due 2004 to 2024 (b)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>176</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">282</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Loan Agreements
6.3% due 2008 to 2029 (b)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>831</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">607</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="3"><FONT size="2"><B>Unsecured</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Installment Sales Contracts
6.4% due 2004</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>24</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">142</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><FONT size="2">Loan Agreements
3.6% due 2024 to 2030 (a)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>113</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">113</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>QUIDS</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">7.4% to 7.6% due 2026 to 2028</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>385</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">385</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Non-Recourse Debt</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="2"><FONT size="2">7.5% due 2000 to 2009 (b)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>330</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">410</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="4"><FONT size="2">Less amount due within one year</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(270</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(294</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"><FONT size="2"><B>Total Long-Term Debt</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>3,938</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,197</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="4"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>



<p align="left"> (a) Variable rate at December&nbsp;31, 1999.

<p align="left"> (b) Weighted average interest rate at December&nbsp;31, 1999.





<P>In the years 2000 &#151; 2004, the Company&#146;s long-term debt maturities are $270
million, $234&nbsp;million, $275&nbsp;million, $238&nbsp;million and $64&nbsp;million,
respectively.

<P>Detroit Edison&#146;s 1924 Mortgage and Deed of Trust (Mortgage), the lien of which
covers substantially all of Detroit Edison&#146;s properties, provides for the
issuance of additional General and Refunding Mortgage Bonds (Mortgage Bonds).
At December&nbsp;31, 1999, approximately $4.1&nbsp;billion principal amount of Mortgage
Bonds could have been issued on the basis of property additions, combined with
an earnings test provision, assuming an interest rate of 8% on any such
additional Mortgage Bonds. An additional $1.9&nbsp;billion principal amount of
Mortgage Bonds could have been issued on the basis of bond retirements.

<P align="center">57
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<P><HR noshade><P>



<P>Unless an event of default has occurred, and is continuing, each series of
Quarterly Income Debt Securities (QUIDS)&nbsp;provides that interest will be paid
quarterly. However, Detroit Edison also has the right to extend the interest
payment period on the QUIDS for up to 20 consecutive interest payment periods.
Interest would continue to accrue during the deferral period. If this right
is exercised, Detroit Edison may not declare or pay dividends on, or redeem,
purchase or acquire, any of its capital stock during the deferral period.
Detroit Edison may redeem any series of capital stock pursuant to the terms of
any sinking fund provisions during the deferral period. Additionally, during
any deferral period, Detroit Edison may not enter into any inter-company
transactions with any affiliate of Detroit Edison, including the Company, to
enable the payment of dividends on any equity securities of the Company.

<P>At December&nbsp;31, 1999, $273&nbsp;million of notes and bonds were subject to periodic
remarketings within one year. Remarketing agents remarket these securities at
the lowest interest rate necessary to produce a par bid. In the event that a
remarketing fails, Standby Note Purchase Agreements and/or Letters of Credit
provide that banks will purchase the securities and, after the conclusion of
all necessary proceedings, remarket the bonds. In the event the banks&#146;
obligations under the Standby Note Purchase Agreements and/or Letters of
Credit are not honored, then Detroit Edison would be required to purchase any
securities subject to a failed remarketing.

<P align="left"><B>NOTE 9 &#151; SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS</B>

<HR size="1">




<P>At December&nbsp;31, 1999, Detroit Edison had total short-term credit arrangements
of approximately $524&nbsp;million, under which $162&nbsp;million was outstanding. At
December&nbsp;31, 1998, $231&nbsp;million was outstanding. The weighted average interest
rates for short-term borrowings at December&nbsp;31, 1999 and 1998 were 6.9% and
6.2%, respectively.

<P>Detroit Edison had bank lines of credit of $201&nbsp;million, all of which had
commitment fees in lieu of compensating balances. Detroit Edison uses bank
lines of credit and other credit facilities to support the issuance of
commercial paper and bank loans. Detroit Edison had $162&nbsp;million and $231
million of commercial paper outstanding at December&nbsp;31, 1999 and 1998,
respectively.

<P>Detroit Edison had a nuclear fuel financing arrangement with Renaissance Energy
Company (Renaissance), an unaffiliated company. Renaissance may issue
commercial paper or borrow from participating banks on the basis of promissory
notes. To the extent the maximum amount of funds available to Renaissance
(currently $400&nbsp;million) is not needed by Renaissance to purchase nuclear fuel,
such funds may be loaned to Detroit Edison for general corporate purposes
pursuant to a separate Loan Agreement. At December&nbsp;31, 1999, approximately
$323&nbsp;million was available to Detroit Edison under such Loan Agreement.

<P>Detroit Edison had a $200&nbsp;million short-term financing agreement secured by its
customer accounts receivable and unbilled revenues portfolio under which $200
million was outstanding at December&nbsp;31, 1999 at a weighted average interest
rate of 6.1%. At December&nbsp;31, 1998, there were no amounts outstanding.

<P align="center">58
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<P>At December&nbsp;31, 1999, DTE Capital Corporation (DTE Capital), a Company
subsidiary, had short-term credit arrangements of $400&nbsp;million backed by a
Support Agreement from the Company, under which $25&nbsp;million was outstanding.
The credit agreement provides support for DTE Capital&#146;s commercial paper. At
December&nbsp;31, 1998, there was no commercial paper outstanding. In addition, the
Company has entered into a total of $550&nbsp;million of Support Agreements with
DTE Capital for the purpose of DTE Capital&#146;s credit enhancing activities on
behalf of DTE Energy non-regulated affiliates.

<P align="left"><B>NOTE 10 &#151; LEASES</B>

<HR size="1">




<P>Future minimum lease payments under capital leases, consisting of nuclear fuel
($72&nbsp;million computed on a projected units of production basis), lake vessels
($19&nbsp;million), locomotives and coal cars ($157&nbsp;million), office space ($11
million), and computers, vehicles and other equipment ($2&nbsp;million) at December
31, 1999 are as follows:






<P align="center"><B>(Millions)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="13%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Remaining</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>2000</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2001</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2002</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2003</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2004</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">$48</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">42</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">35</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">21</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">14</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">101</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">261</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Future minimum lease payments for an operating lease for railcars are as follows:

<P align="center"><B>(Millions)</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="12%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Remaining</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>2000</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2001</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2002</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2003</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>2004</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Years</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">$9</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">40</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">83</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P>Rental expenses for both capital and operating leases were $107&nbsp;million
(including $52&nbsp;million for nuclear fuel), $96&nbsp;million (including $49&nbsp;million
for nuclear fuel) and $72&nbsp;million (including $42&nbsp;million for nuclear fuel) for
1999, 1998 and 1997, respectively.

<P>Detroit Edison has a contract with Renaissance which provides for the purchase
by Renaissance for Detroit Edison of up to $400&nbsp;million of nuclear fuel,
subject to the continued availability of funds to Renaissance to purchase such
fuel. Title to the nuclear fuel is held by Renaissance. Detroit Edison makes
quarterly payments under the contract based on the consumption of nuclear fuel
for the generation of electricity.

<P align="left"><B>NOTE 11 &#151; FINANCIAL INSTRUMENTS</B>

<HR size="1">




<P align="left"><B>Trading Activities</B>

<P>DTE ET markets and trades electricity and natural gas physical products and
financial instruments, and provides risk management services utilizing energy
commodity derivative instruments which include futures, exchange traded and
over-the-counter options, and forward purchase and sale commitments. The
notional amounts and


<P align="center">59


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<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<P>terms of DTE ET&#146;s outstanding
energy trading financial instruments and the fair values of DTE ET&#146;s energy
commodity derivative instruments were not material at December&nbsp;31, 1999.

<P align="left"><B><I>Market Risk</I></B>

<P>DTE ET manages, on a portfolio basis, the market risks inherent in its
activities subject to parameters established by the Company&#146;s Risk Management
Committee (RMC), which is authorized by its Board of Directors. Market risks
are monitored by the RMC to ensure compliance with the Company&#146;s stated risk
management policies. DTE ET marks its portfolio to market and measures its
risk on a daily basis in accordance with Value at Risk (VaR) and other risk
methodologies. The quantification of market risk using VaR provides a
consistent measure of risk across diverse energy markets and products.

<P align="left"><B><I>Credit Risk</I></B>

<P>DTE ET is exposed to credit risk in the event of nonperformance by customers or
counterparties of its contractual obligations. The concentration of customers
and/or counterparties may impact overall exposure to credit risk, either
positively or negatively, in that the counterparties may be similarly affected
by changes in economic, regulatory or other conditions. However, DTE ET
maintains credit policies with regard to its customers and counterparties that
management believes significantly minimize overall credit risk. These policies
include an evaluation of potential customers&#146; and counterparties&#146; financial
condition and credit rating, collateral requirements or other credit
enhancements such as letters of credit or guarantees, and the use of
standardized agreements which allow for the netting or offsetting of positive
and negative exposures associated with a single counterparty. Based on these
policies, the Company does not anticipate a materially adverse effect on
financial position or results of operations as a result of customer or
counterparty nonperformance. Those futures and option contracts which are
traded on the New York Mercantile Exchange are financially guaranteed by the
Exchange and have nominal credit risk.

<P align="left"><B>Non-Trading Activities</B>

<P align="left"><B><I>Interest Rate Swaps</I></B>

<P>In October&nbsp;1996, Detroit Edison entered into a three-year interest rate swap
agreement based on a notional amount of $25&nbsp;million, which was nominally linked
to the Detroit Edison 1993 Series&nbsp;B Remarketed Notes. In 1999 and 1998, the
average rate received was 5.12% and 5.68%, respectively, and the average rate
paid was 4.71% and 5.02%, respectively. The net of interest received and
interest paid on the swap was accrued as a component of interest expense in the
current period.

<P>PCI Enterprises Company (PCI), a coal pulverizing subsidiary, entered into a
seven-year interest rate swap agreement beginning June&nbsp;30, 1997, with the
intent of reducing the impact of changes in interest rates on its variable rate
non-recourse debt. The initial notional amount was $30&nbsp;million which was based
on 60% of its term loan of $50&nbsp;million.
<P align="center">60
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<P><HR noshade><P>


<P>The notional amount outstanding at December&nbsp;31, 1999 and 1998, was $24&nbsp;million
and $27&nbsp;million, respectively, and will decline throughout the term of the loan
based on amortization of principal amounts. PCI pays a fixed interest rate of
6.96% on the notional amount and receives a variable interest rate based on
LIBOR. In 1999 and 1998, the average rate received was 5.28% and 5.65%,
respectively. The net of interest received and interest paid on the swap is
accrued as a component of interest expense in the current period.

<P align="left"><B>Fair Value of Financial Instruments</B>

<P>The fair value of financial instruments is determined by reference to various
market data and other valuation techniques as appropriate. The carrying amount
of financial instruments, except for long-term debt, approximates fair value.
The estimated fair value of total long-term debt at December&nbsp;31, 1999 and 1998
was $4&nbsp;billion and $4.8&nbsp;billion, respectively, compared to the carrying amount
of $4.2&nbsp;billion and $4.5&nbsp;billion, respectively.

<P align="left"><B>NOTE 12 &#151; COMMITMENTS AND CONTINGENCIES</B>

<HR size="1">




<P align="left"><B>Commitments</B>

<P>Detroit Edison has outstanding purchase commitments of approximately $850
million at December&nbsp;31, 1999, which includes, among other things, line
construction and clearance costs and equipment purchases. The Company and
Detroit Edison have also entered into long-term fuel supply commitments of
approximately $621&nbsp;million.

<P>Detroit Edison has an Energy Purchase Agreement (Agreement) for the purchase of
steam and electricity from the Detroit Resource Recovery Facility. Under the
Agreement, Detroit Edison will purchase steam through 2008 and electricity
through June&nbsp;2024. In 1996, a special charge to net income of $149&nbsp;million
($97&nbsp;million after-tax) or $0.67 cents per share was recorded. The special
charge included a reserve for steam purchase commitments from 1997 through 2008
and expenditures for closure of a portion of the steam heating system. The
reserve for steam purchase commitments was recorded at its present value,
therefore Detroit Edison will record non-cash accretion expense through 2008.
In addition, amortization of the reserve for steam purchase commitments is
netted against losses on steam heating purchases recorded in fuel and purchased
power expense. Purchases of steam and electricity were $35&nbsp;million, $31
million and $34&nbsp;million for 1999, 1998 and 1997, respectively. Annual steam
purchase commitments are approximately $38&nbsp;million, $39&nbsp;million, $40&nbsp;million,
$42&nbsp;million and $43&nbsp;million for 2000, 2001, 2002, 2003 and 2004, respectively.

<P>In October&nbsp;1995, the MPSC issued an Order approving Detroit Edison&#146;s six-year
capacity and energy purchase agreement with Ontario Hydro. Ontario Hydro
agreed to sell Detroit Edison 300 MW of capacity from mid-May through
mid-September. This purchase will offset a concurrent agreement to lease
approximately a third of Detroit Edison&#146;s Ludington 917 MW capacity to
FirstEnergy for the same time period. The net economic effect of
Ludington lease and the Ontario Hydro purchase is an estimated reduction in
PSCR expense of $74&nbsp;million.
<P align="center">61
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="left"><B>Contingencies</B>

<P align="left"><B><I>Legal Proceedings</I></B>

<P>Detroit Edison and plaintiffs in a class action pending in the Circuit Court
for Wayne County, Michigan (Gilford, et al v. Detroit Edison), as well as
plaintiffs in two other pending actions which make class claims (Sanchez, et al
v. Detroit Edison, Circuit Court for Wayne County, Michigan; and Frazier v.
Detroit Edison, United States District Court, Eastern District of Michigan),
agreed to binding arbitration to settle these matters. A Consent Judgment
received preliminary Court approval. On October&nbsp;28, 1999, a panel of
arbitrators awarded the plaintiffs $45.15&nbsp;million. As a result of sufficient
prior accruals and anticipated insurance coverage, Detroit Edison did not incur
a material 1999 earnings impact due to this award. Detroit Edison anticipates
that the insurance claims process will conclude favorably. While Detroit
Edison can give no assurances as to the final resolution of the claims process,
it does not believe that an unfavorable earnings impact will result.

<P align="left"><I><B>Other</B></I>

<P>In addition to the matters reported herein, the Company and its subsidiaries
are involved in litigation and environmental matters dealing with the numerous
aspects of their business operations. The Company believes that such
litigation and the matters discussed above will not have a material effect on
its financial position, results of operations and cash flows.

<P>See Notes 3 and 4 for a discussion of contingencies related to Regulatory
Matters and Fermi 2.

<P align="left"><B>NOTE 13 &#151; EMPLOYEE BENEFITS</B>

<HR size="1">




<P align="left"><B>Retirement Plan</B>

<P>Detroit Edison has a trusteed and non-contributory defined benefit retirement
plan (Plan) covering all eligible employees who have completed six months of
service. The Plan provides retirement benefits based on the employees&#146; years
of benefit service, average final compensation and age at retirement. Detroit
Edison&#146;s policy is to fund pension cost calculated under the projected unit
credit actuarial cost method.
<P align="center">62
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P>Net pension cost included the following components:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="70%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Service cost &#150; benefits earned during period</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>35</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">31</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">27</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Interest cost on projected benefit obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>92</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">88</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">86</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Expected return on Plan assets</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(124</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(118</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(104</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Amortization of unrecognized prior service cost</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Amortization of unrecognized net asset resulting
from initial application</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(4</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(4</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(4</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD><FONT size="2">Net pension cost</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>4</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>The following reconciles the funded status of the Plan to the amount recorded
in the Consolidated Balance Sheet at December&nbsp;31:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="77%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Projected benefit obligation at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,400</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,294</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Service cost &#150; benefits earned during period</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>35</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">31</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Interest cost on projected benefit obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>92</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">88</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Net (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(49</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">61</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Benefits paid to participants</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(77</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(74</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Plan amendments</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>56</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Projected benefit obligation at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,457</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,400</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Fair value of Plan assets (primarily equity and
debt securities) at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,416</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,347</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Actual return on Plan assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>246</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">143</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Benefits paid to participants</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(77</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(74</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Fair value of Plan assets at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1,585</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,416</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Plan assets in excess of projected benefit obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>128</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Unrecognized net (asset)&nbsp;resulting from initial application</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(11</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(15</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Unrecognized net (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(136</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">31</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Unrecognized prior service cost</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>94</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">47</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Asset recorded in the Consolidated Balance Sheet</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>75</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">79</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">63
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P>Assumptions used in determining the projected benefit obligation at December&nbsp;31
were as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="84%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Discount rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>7.5</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.5</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Annual increase in future compensation levels</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>4.0</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.0</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Expected long-term rate of return on Plan assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>9.5</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">9.0</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>The unrecognized net asset at date of initial application is being amortized
over approximately 15.4&nbsp;years, which was the average remaining service period
of employees at January&nbsp;1, 1987.

<P>In addition to the Plan, there are several supplemental non-qualified,
non-contributory, retirement benefit plans for certain management employees.

<P align="left"><B>Savings and Investment Plans</B>

<P>Detroit Edison has voluntary defined contribution plans qualified under Section
401 (a)&nbsp;and (k)&nbsp;of the Internal Revenue Code for all eligible employees.
Detroit Edison contributes up to 6% of base compensation for non-represented
employees and up to 4% for represented employees. Matching contributions were
$21&nbsp;million, $21&nbsp;million and $20&nbsp;million for 1999, 1998 and 1997,
respectively.

<P align="left"><B>Other Postretirement Benefits</B>

<P>Detroit Edison provides certain postretirement health care and life insurance
benefits for retired employees. Substantially all of Detroit Edison&#146;s
employees will become eligible for such benefits if they reach retirement age
while working for Detroit Edison. These benefits are provided principally
through insurance companies and other organizations.

<P>Net other postretirement benefits cost included the following components:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="71%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="11"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Service cost &#150; benefits earned during period</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>23</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">19</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Interest cost on accumulated
benefit obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>41</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">38</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">39</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Expected return on assets</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(39</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(30</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(20</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Amortization of unrecognized transition obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>21</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">21</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">21</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net other postretirement benefits cost</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>46</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">48</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">59</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">64
<!-- PAGEBREAK -->
<P><HR noshade><P>
<P>The following reconciles the funded status to the amount recorded in the
Consolidated Balance Sheet at December&nbsp;31:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2">Postretirement benefit obligation at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>625</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">580</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Service cost &#150; benefits earned during period</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>23</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Interest cost on accumulated benefit obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>43</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">38</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Benefit payments</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(29</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(27</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Net (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(55</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">15</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Postretirement benefit obligation at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>607</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">625</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Fair value of assets (primarily equity and debt
securities) at beginning of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>422</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">309</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Detroit Edison contributions</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>26</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">57</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Benefit payments</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(8</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Actual return on assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>61</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">56</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Fair value of assets at end of year</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>501</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">422</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Postretirement benefit obligation in (excess)&nbsp;of assets</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(106</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(203</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Unrecognized transition obligation</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>267</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">287</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Unrecognized net (gain)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(105</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(28</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Asset recorded in the
Consolidated</font></td>
</tr>

<TR valign="bottom">
<TD></TD>
<TD></TD>
<td><font size="2">Balance Sheet</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>56</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">56</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Assumptions used in determining the postretirement benefit obligation at
December&nbsp;31 were as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="84%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Discount rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>7.5 </B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.5 </FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Annual increase in future compensation levels</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>4.0</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.0</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Expected long-term rate of return on assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>9.0</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8.5</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Benefit costs were calculated assuming health care cost trend rates beginning
at 8% for 2000 and decreasing to 5% in 2007 and thereafter for persons under
age 65 and decreasing from 5.8% to 5% for persons age 65 and over. A
one-percentage-point increase in health care cost trend rates would increase
the aggregate of the service cost and interest cost components of benefit costs
by $11&nbsp;million for 1999 and increase the accumulated benefit obligation by $86
million at December&nbsp;31, 1999. A one-percentage-point decrease in the health
care cost trend rates would decrease the aggregate of the service cost and
interest cost components of benefit costs by $9&nbsp;million for 1999 and decrease
the accumulated benefit obligation by $70&nbsp;million at December&nbsp;31, 1999.
<P align="center">65
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="left"><B>NOTE 14 &#151; STOCK-BASED COMPENSATION</B>

<HR size="1">




<P>The Company adopted a Long-Term Incentive Plan (LTIP)&nbsp;in 1995. Under the LTIP,
certain key employees may be granted restricted common stock, stock options,
stock appreciation rights, performance shares and performance units. Common
stock granted under the LTIP may not exceed 7.2&nbsp;million shares. Performance
units (which have a face amount of $1) granted under the LTIP may not exceed 25
million in the aggregate. As of December&nbsp;31, 1999, no stock appreciation
rights, performance shares or performance units have been granted under the
LTIP.

<P>Under the LTIP, shares of restricted common stock were awarded and are
restricted for a period not exceeding four years. All shares are subject to
forfeiture if specified performance measures are not met. During the applicable
restriction period, the recipient has all the voting, dividend and other rights
of a record holder except that the shares are nontransferable, and non-cash
distributions paid upon the shares would be subject to transfer restrictions
and risk of forfeiture to the same extent as the shares themselves. The shares
were recorded at the market value on the date of grant and amortized to expense
based on the award that was expected to vest and the period during which the
related employee services were to be rendered. Restricted common stock
activity for the year ended December&nbsp;31 was:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="67%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Restricted common shares awarded</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>99,500</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">74,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">68,500</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Weighted average market price of shares awarded</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>40.99</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">38.77</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">28.38</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Compensation cost charged against
income (thousands)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>945</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">976</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">222</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Stock options were also issued under the LTIP.&nbsp;Options are exercisable at a
rate of 25% per year during the four years following the date of grant. The
options will expire 10&nbsp;years after the date of the grant. The option exercise
price equals the fair market value of the stock on the date that the option was
granted. Stock option activity was as follows:

<P align="center">66
<!-- PAGEBREAK -->
<P><HR noshade><P>


<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="67%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Weighted</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Average</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>of Options</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2">Outstanding at January&nbsp;1, 1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">310,500</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">28.38</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Outstanding at December&nbsp;31, 1997 (none exercisable)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">310,500</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">28.38</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">319,500</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">38.38</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Exercised</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(22,625</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">28.50</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Outstanding at December&nbsp;31, 1998 (58,750 exercisable)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">607,375</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">33.70</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">428,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">41.30</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Exercised</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(11,675</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">30.99</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Canceled</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(24,625</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">31.96</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2">Outstanding at December&nbsp;31, 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">(194,371 exercisable at a weighted average exercise
price of $32.35)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">999,075</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">37.03</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>The range of exercise prices for options outstanding at December&nbsp;31, 1999 was
$28.50 to $43.85. The number, weighted average exercise price and weighted
average remaining contractual life of options outstanding was as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="39%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Range of Exercise</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Weighted Average</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Remaining</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Prices</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Number of Options</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Exercise Price</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Contractual Life</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD><hr size="2" noshade></TD>
<TD></TD>
<TD colspan="3"><hr size="2" noshade></TD>
<TD></TD>
<TD colspan="3"><hr size="2" noshade></TD>
<TD></TD>
<TD colspan="3"><hr size="2" noshade></TD>
</TR>


<TR valign="bottom">
<TD><FONT size="2">$28.50 - $34.75</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">282,825</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">28.68</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">7.2&nbsp;&nbsp;years</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">$38.04 - $43.85</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">716,250</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">40.32</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8.9&nbsp;&nbsp;years</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">999,075</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">37.03</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8.4&nbsp;&nbsp;years</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>The Company applies APB Opinion 25, &#147;Accounting for Stock Issued to Employees.&#148;
Accordingly, no compensation expense has been recorded for options granted.
As required by SFAS No.&nbsp;123, &#147;Accounting for Stock-Based Compensation,&#148; the
Company has determined the pro forma information as if the Company had
accounted for its employee stock options under the fair value method. The fair
value for these options was estimated at the date of grant using a modified
Black/Scholes option pricing model &#151; American style and the following weighted
average assumptions:
<P align="center">67
<!-- PAGEBREAK -->
<P><HR noshade><P>


<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="46%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Risk-free interest rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>5.64</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.84</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">6.83</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Dividend yield</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>4.95</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">5.39</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">7.26</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Expected volatility</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>17.28</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">17.48</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">18.31</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Expected life</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>10&nbsp;&nbsp;years</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10&nbsp;&nbsp;years</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10&nbsp;&nbsp;years</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Fair value per option</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>7.18</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">6.43</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4.15</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>The pro forma effect of these options would be to reduce net income by
$1,289,000, $695,000 and $244,000 for the years ended December&nbsp;31, 1999, 1998
and 1997, respectively, and to reduce earnings per share by $0.01 for the
year-ended December&nbsp;31, 1999. There was no pro forma effect on earnings per
share for the years ended December&nbsp;31, 1998 and 1997.

<P align="left"><B>NOTE 15 &#151; SEGMENT AND RELATED INFORMATION</B>

<HR size="1">




<P>The Company&#146;s reportable business segment is its regulated electric utility,
Detroit Edison, which is engaged in the generation, purchase, transmission,
distribution and sale of electric energy in a 7,600 square mile area in
Southeastern Michigan. All other includes non-regulated energy-related
businesses and services, which develop and manage electricity and other
energy-related projects, and engage in domestic energy trading and marketing.
Inter-segment revenues are not material. Income taxes are allocated based on
intercompany tax sharing agreements, which generally allocate the tax benefit
of alternative fuels tax credits and accelerated depreciation to the respective
subsidiary, without regard to the subsidiary&#146;s own net income or whether such
tax benefits are realized by the Company. Financial data for business segments
are as follows:
<P align="center">68
<!-- PAGEBREAK -->
<P><HR noshade><P>


<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="24%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Regulated</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Reconciliations</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Electric</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>All</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>and</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Utility</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" colspan="2"><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2">(Millions)</FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Operating revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,047</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">681</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,728</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">703</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">32</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">735</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">284</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">26</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">30</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">340</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Income tax expense (benefit)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">211</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(140</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(11</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">60</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">434</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">69</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(20</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">483</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11,051</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1,160</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">105</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12,316</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">638</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">130</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">768</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD nowrap align="center" colspan="2"><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2">(Millions)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Operating revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,902</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">319</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,221</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">643</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">18</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">661</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">277</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">34</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">319</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Income tax expense (benefit)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">260</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(100</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(6</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">154</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">412</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">42</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(11</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">443</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10,987</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">937</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">164</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">12,088</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">548</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">449</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">997</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD nowrap align="center" colspan="2"><FONT size="2">1997</FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2">(Millions)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Operating revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,657</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">107</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,764</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Depreciation and amortization</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">658</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">660</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">282</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">16</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">297</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Income tax expense (benefit)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">288</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(30</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">257</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">405</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">14</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">10,745</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">448</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">30</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">11,223</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">467</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">233</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">700</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><B>NOTE 16 &#151; SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (UNAUDITED)</B>

<HR size="1">




<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2"><B>1999 Quarter Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="15"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Mar. 31</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Jun. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Sep. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Dec. 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="15"><FONT size="2"><B>(Millions, except per share amounts)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,024</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,150</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,440</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,114</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Operating Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">215</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">211</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">281</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">194</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">115</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">110</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">161</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">97</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Earnings Per Common Share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.79</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.76</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">1.11</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.67</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">69
<!-- PAGEBREAK -->
<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="49%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2"><B>1998 Quarter Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="15"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Mar. 31</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Jun. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Sep. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Dec. 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="15"><FONT size="2"><B>(Millions, except per share amounts)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">945</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,064</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,199</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,013</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Operating Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">233</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">248</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">266</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">190</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">104</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">101</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">132</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">106</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Earnings Per Common Share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.72</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.91</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.73</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">70
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- link2 "Item&nbsp;9 &#151; Changes in and Disagreements with Accountants on Accounting and Financial Disclosure." -->
<DIV align="left"><A name="000"></A></DIV>
<P align="left"><B>Item&nbsp;9 &#151; Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.

<!-- link1 "PART III" -->
<DIV align="left"><A name="001"></A></DIV>
<P align="center"><B>PART III</B>

<!-- link2 "Items 10, 11, 12 and 13" -->
<DIV align="left"><A name="002"></A></DIV>
<P align="left"><B>Items 10, 11, 12 and 13</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information required by Part III (Items 10, 11, 12 and 13) of this Form
10-K is incorporated by reference from the Company&#146;s definitive Proxy Statement
for its 2000 Annual Meeting of Common Shareholders to be held April&nbsp;14, 2000,
which will be filed with the Securities and Exchange Commission, pursuant to
Regulation&nbsp;14A, not later than 120&nbsp;days after the end of the Company&#146;s fiscal
year covered by this report on Form&nbsp;10-K, all of which information is hereby
incorporated by reference in, and made part of, this Form&nbsp;10-K, except that the
information required by Item&nbsp;10 with respect to executive officers of the
Registrant is included in Part I of this report.
<P align="center">71
<!-- PAGEBREAK -->
<P><HR noshade><P>


<!-- link1 "Annual Report on Form&nbsp;10-K for The Detroit Edison Company<BR>
PART I" -->
<DIV align="left"><A name="003"></A></DIV>
<P align="center"><B>Annual Report on Form&nbsp;10-K for The Detroit Edison Company<BR>
PART I</B>

<!-- link2 "Item&nbsp;1 &#151; Business." -->
<DIV align="left"><A name="004"></A></DIV>
<P align="left"><B>Item&nbsp;1 &#151; Business.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s &#147;Item&nbsp;1 &#151; Business&#148; which is incorporated herein by this
reference.

<P align="left"><B>Executive Officers of the Registrant</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="26%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="56%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Present</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Position</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Age(a)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Present Position</B></FONT></TD>
<TD></TD>
<TD nowrap align="center"><FONT size="2"><B>Held Since</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD nowrap align="center"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">Anthony F. Earley, Jr.</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
50
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Chairman of the Board, Chief Executive Officer,
President, Chief Operating Officer, and Member
of the Office of the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Larry G. Garberding</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
61
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Executive Vice
President and Chief Financial Officer<BR>
Member of the Office of the President since
December&nbsp;1998
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-90</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Gerard M. Anderson</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
41
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">President and Chief Operating Officer &#151; DTE Energy
Resources, and Member of the Office of
the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Robert J. Buckler</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
50
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">President and Chief Operating Officer &#151; DTE Energy
Distribution, and Member of the Office of
the President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Daniel G. Brudzynski</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
39
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Controller
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-28-99</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Michael E. Champley</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
51
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Senior Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-1-97</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Douglas R. Gipson</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
52
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Senior Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-1-93</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">S. Martin Taylor</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
59
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Senior Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-28-99</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Susan M. Beale</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
51
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and Corporate Secretary
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">3-27-95</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Leslie L. Loomans</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
56
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and Treasurer
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">10-1-89</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Ron A. May</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
48
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">8-1-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">David E. Meador</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
42
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-28-99</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Sandra J. Miller</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
56
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">3-30-98</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Christopher C. Nern</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
55
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President and General Counsel
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">6-1-93</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Michael C. Porter</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
46
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">9-22-97</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">William R. Roller</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
54
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Vice President
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">4-22-96</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">(a)&nbsp;As of December&nbsp;31, 1999</FONT>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Detroit Edison By-Laws, the officers of Detroit Edison are elected
annually by the Board of Directors at a meeting held for such purpose, each to
serve until the next annual meeting of directors or until their respective
successors are chosen and qualified. With the exception of Messrs.&nbsp;Brudzynski,
Meador and Porter, all of the above officers have been employed by Detroit
Edison in one or more management capacities during the past five years.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Daniel G. Brudzynski was Manager, Product Development Finance and Manager,
Forecasting Redesign and Implementation at Chrysler Corporation, an
international automotive manufacturer, from 1995 until 1997. He joined Detroit
Edison in 1997 as Assistant Controller and effective April&nbsp;28, 1999 he was
elected Controller and appointed Assistant Vice President.
<P align="center">72
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David E. Meador was Controller, Mopar Parts Division, at Chrysler
Corporation, an international automotive manufacturer, from November&nbsp;1996 until
February&nbsp;1997. From 1986 to 1996, he held a variety of executive financial
positions at Chrysler. Effective February&nbsp;28, 1997, he was elected Vice
President and effective March&nbsp;29, 1997, he assumed the duties of Controller.
Effective April&nbsp;28, 1999, he was elected Vice President &#150; Finance and
Accounting.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael C. Porter was Senior Vice President and Managing Director at
McCann-Erickson in Detroit from 1994 to September&nbsp;1997 and Vice President of
Marketing for The Stroh Brewery Company in Detroit from 1990 to 1994.
Effective September&nbsp;22, 1997, he was elected Vice President &#151; Corporate
Communications.

<!-- link2 "Item&nbsp;2 &#151; Properties." -->
<DIV align="left"><A name="005"></A></DIV>
<P align="left"><B>Item&nbsp;2 &#151; Properties.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s &#147;Item&nbsp;2 &#151; Properties &#151; Detroit Edison,&#148; which is
incorporated herein by this reference.

<!-- link2 "Item&nbsp;3 &#151; Legal Proceedings." -->
<DIV align="left"><A name="006"></A></DIV>
<P align="left"><B>Item&nbsp;3 &#151; Legal Proceedings.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s &#147;Item&nbsp;3 &#151; Legal Proceedings,&#148; which is incorporated
herein by this reference.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a lawsuit filed in January&nbsp;1999 in the Circuit Court for Wayne County
Michigan (Cook, et al v. Detroit Edison), a number of individual plaintiffs
have claimed employment-related sex, gender and race discrimination, as well as
harassment. A hearing on plaintiffs&#146; request for class action has not yet been
held. Detroit Edison believes the claims are without merit and class action
certification is not appropriate.

<!-- link2 "Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders." -->
<DIV align="left"><A name="007"></A></DIV>
<P align="left"><B>Item&nbsp;4 &#151; Submission of Matters to a Vote of Security Holders.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

<!-- link1 "PART II" -->
<DIV align="left"><A name="008"></A></DIV>
<P align="center"><B>PART II</B>

<!-- link2 "Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters." -->
<DIV align="left"><A name="009"></A></DIV>
<P align="left"><B>Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and Related Stockholder Matters.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s &#147;Item&nbsp;5 &#151; Market for Registrant&#146;s Common Equity and
Related Stockholder Matters,&#148; the third paragraph of which is incorporated
herein by this reference. Detroit Edison&#146;s By-Laws contain this same provision
with respect to the Michigan Business Corporation Act. All of Detroit Edison&#146;s
Common Stock is held by the Company.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of future dividends paid by Detroit Edison to the Company will
depend on Detroit Edison&#146;s earnings, financial condition and other factors,
including the effects of utility restructuring and a transition to competition,
each of which is periodically reviewed by Detroit Edison&#146;s Board of Directors.
<P align="center">73
<!-- PAGEBREAK -->
<P><HR noshade><P>
<!-- link2 "Item&nbsp;6 &#151; Selected Financial Data." -->
<DIV align="left"><A name="010"></A></DIV>
<P align="left"><B>Item&nbsp;6 &#151; Selected Financial Data.</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="3%">&nbsp;</TD>
<TD width="42%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="19"><FONT size="2"><B>Year Ended December 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="19"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="19"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,047</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,902</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,657</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,642</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,636</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">434</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">418</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">417</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">328</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">434</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Net Income Available
for Common Stock</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">434</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">412</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">405</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">312</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">406</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">At year end:</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD><FONT size="2">Total Assets</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,051</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,987</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,745</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">10,874</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">11,131</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Long-Term Debt</font></td>
</tr>

<TR valign="bottom">
<TD></TD>
<td><font size="2">Obligations (including capital
leases) and Redeemable
Preferred and Preference
Stock Outstanding</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,398</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,588</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,812</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">4,004</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<!-- link2 "Item&nbsp;7 &#151; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations." -->
<DIV align="left"><A name="011"></A></DIV>
<P align="left"><B>Item&nbsp;7 &#151; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s and Detroit Edison&#146;s &#147;Item&nbsp;7 &#151; Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations,&#148; which is
incorporated herein by this reference.

<!-- link2 "Item&nbsp;8 &#151; Financial Statements and Supplementary Data." -->
<DIV align="left"><A name="012"></A></DIV>
<P align="left"><B>Item&nbsp;8 &#151; Financial Statements and Supplementary Data.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See pages 30 through 70 (except for Notes 6, 8 and 16 below).

<P align="left"><B>NOTE 6 &#151; INCOME TAXES</B>

<HR size="1">




<P>Total income tax expense as a percent of income before tax varies from the
statutory federal income tax rate for the following reasons:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="65%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD colspan="2"><FONT size="2">Statutory income tax rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>35.0</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">35.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">35.0</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Deferred Fermi 2 depreciation and return</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">3.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Investment tax credit</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(1.6</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2.1</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(2.0</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Depreciation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>1.2</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">4.5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Removal costs</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(1.9</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1.7</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(1.5</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Other-net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(0.9</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">0.4</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"><FONT size="2">Effective income tax rate</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>32.7</B></FONT></TD>
<TD nowrap><FONT size="2"><B>%</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">38.3</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">40.9</FONT></TD>
<TD nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>

<P align="center">74
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<P>Components of income tax expense are as follows:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="60%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="3"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2">Current federal tax expense</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>282</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">280</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">308</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Deferred federal tax benefit &#151; net</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(60</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(5</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(6</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Investment tax credits</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(11</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(15</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(14</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">Total</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>211</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">260</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">288</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>Deferred income tax assets (liabilities)&nbsp;are comprised of the following at December&nbsp;31:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="56%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2">Property</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,197</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,139</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Unamortized nuclear costs</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(899</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(983</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Property taxes</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(66</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(65</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Investment tax credit</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>96</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">154</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Reacquired debt losses</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(30</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(32</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Contributions in aid of construction</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>73</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">63</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Other</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>83</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">96</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,940</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,906</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Deferred income tax liabilities</FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(2,372</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(2,403</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Deferred income tax assets</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>432</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">497</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>(1,940</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(1,906</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><B>NOTE 8 &#151; LONG-TERM DEBT</B>

<HR size="1">




<P>Long-term debt outstanding at December&nbsp;31 was:

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="58%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Mortgage Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">5.6% to 8.4% due 2000 to 2023</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>1,539</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,742</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Remarketed Notes</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">6.0% to 6.4% due 2028 to 2034 (a)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>410</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">410</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>Tax Exempt Revenue Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2"><B>Secured by Mortgage Bonds</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Installment Sales Contracts
6.9% due 2004 to 2024 (b)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>176</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">282</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Loan Agreements
6.3% due 2008 to 2029 (b)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>831</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">607</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">75
<!-- PAGEBREAK -->
<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%" align="center">
<TR valign="bottom">
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="58%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2"><B>Unsecured</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Installment Sales Contracts
6.4% due 2004</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>24</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">142</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD><FONT size="2">Loan Agreements
3.6% due 2024 to 2030 (a)</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>113</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">113</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2"><B>QUIDS</B></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2">7.4% to 7.6% due 2026 to 2028</FONT></TD>
<TD></TD>
<TD align="right"></TD>
<TD align="right"><FONT size="2"><B>385</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">385</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD colspan="3"><FONT size="2">Less amount due within one year</FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2"><B>(194</B></FONT></TD>
<TD nowrap><FONT size="2"><B>)</B></FONT></TD>
<TD></TD>
<TD nowrap align="right"></TD>
<TD align="right"><FONT size="2">(219</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="1"></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD colspan="2"><FONT size="2"><B>Total Long-Term Debt</B></FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2"><B>$</B></FONT></TD>
<TD align="right"><FONT size="2"><B>3,284</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,462</FONT></TD>
<TD></TD>
</TR>
<TR valign="bottom">
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD><HR size="4" noshade></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">(a)&nbsp;Variable rate at December&nbsp;31, 1999.</FONT><BR>
<FONT size="2">(b)&nbsp;Weighted average interest rate at December&nbsp;31, 1999.</FONT>






<P>In the years 2000 &#150; 2004, Detroit Edison&#146;s long-term debt maturities are $194,
$159, $198, $199 and $49&nbsp;million, respectively.

<P>Detroit Edison&#146;s 1924 Mortgage and Deed of Trust (Mortgage), the lien of which
covers substantially all of Detroit Edison&#146;s properties, provides for the
issuance of additional General and Refunding Mortgage Bonds (Mortgage Bonds).
At December&nbsp;31, 1999, approximately $4.1&nbsp;billion principal amount of Mortgage
Bonds could have been issued on the basis of property additions, combined with
an earnings test provision, assuming an interest rate of 8% on any such
additional Mortgage Bonds. An additional $1.9&nbsp;billion principal amount of
Mortgage Bonds could have been issued on the basis of bond retirements.

<P>Unless an event of default has occurred, and is continuing, each series of
Quarterly Income Debt Securities (QUIDS)&nbsp;provides that interest will be paid
quarterly. However, Detroit Edison also has the right to extend the interest
payment period on the QUIDS for up to 20 consecutive interest payment periods.
Interest would continue to accrue during the deferral period. If this right
is exercised, Detroit Edison may not declare or pay dividends on, or redeem,
purchase or acquire, any of its capital stock during the deferral period.
Detroit Edison may redeem any series of capital stock pursuant to the terms of
any sinking fund provisions during the deferral period. Additionally, during
any deferral period, Detroit Edison may not enter into any inter-company
transactions with any affiliate of Detroit Edison, including the Company, to
enable the payment of dividends on any equity securities of the Company.

<P>At December&nbsp;31, 1999, $113&nbsp;million of notes and bonds were subject to periodic
remarketings within one year. Remarketing agents remarket these securities at
the lowest interest rate necessary to produce a par bid. In the event that a
remarketing fails, Standby Note Purchase Agreements and/or Letters of Credit
provide that banks will purchase the securities and, after the conclusion of
all necessary proceedings, remarket the bonds. In the event the banks&#146;
obligations under the Standby Note Purchase Agreements and/or Letters of
Credit are not honored, then, Detroit Edison would be required to purchase any
bonds subject to a failed remarketing.


<P align="center">76
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="left"><B>NOTE 16 &#151; SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (UNAUDITED)</B>

<HR size="1">

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="46%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2"><B>1999 Quarter Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="15"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Mar. 31</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>June 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Dec. 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="15"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">911</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,006</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,211</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">919</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Operating Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">224</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">225</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">286</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">200</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">104</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">107</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">138</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">85</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="46%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</tr>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="15"><FONT size="2"><B>1998 Quarter Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="15"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Mar. 31</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>June 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Sept. 30</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Dec. 31</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" colspan="7"><FONT size="2"><B>(Millions)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">Operating Revenues</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">901</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">992</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">1,105</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">904</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Operating Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">237</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">248</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">284</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">201</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Net Income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">98</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">95</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">125</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">100</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<!-- link2 "Item&nbsp;9 -Changes in and Disagreements with Accountants on Accounting and Financial Disclosure." -->
<DIV align="left"><A name="000"></A></DIV>
<P align="left"><B>Item&nbsp;9 -Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.

<!-- link1 "PART III" -->
<DIV align="left"><A name="001"></A></DIV>
<P align="center"><B>PART III</B>

<!-- link2 "Items 10, 11, 12 and 13" -->
<DIV align="left"><A name="002"></A></DIV>
<P align="left"><B>Items 10, 11, 12 and 13</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the Company&#146;s &#147;Items 10, 11, 12 and 13&#148; which is incorporated herein
by this reference, except for the information required by Item&nbsp;10 with respect
to executive officers of the Registrant which is included in Part 1 of this
report. All of Detroit Edison&#146;s directors are the same as the Company&#146;s
directors.
<P align="center">77
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<P><HR noshade><P>


<!-- link1 "Annual Reports on Form&nbsp;10-K for DTE Energy Company<BR>
and The Detroit Edison Company" -->
<DIV align="left"><A name="003"></A></DIV>
<P align="center"><B>Annual Reports on Form&nbsp;10-K for DTE Energy Company<BR>
and The Detroit Edison Company</B>

<!-- link1 "PART IV" -->
<DIV align="left"><A name="004"></A></DIV>
<P align="center"><B>PART IV</B>

<!-- link2 "Item&nbsp;14 &#151; Exhibits, Financial Statement Schedules and Reports on Form&nbsp;8-K." -->
<DIV align="left"><A name="005"></A></DIV>
<P align="left"><B>Item&nbsp;14 &#151; Exhibits, Financial Statement Schedules and Reports on Form&nbsp;8-K.</B>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The following documents are filed as a part of this Annual
Report on Form&nbsp;10-K.</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Consolidated financial statements. See &#147;Item&nbsp;8 -
Financial Statements and Supplementary Data&#148; on page 30.</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Financial statement schedules. See &#147;Item&nbsp;8 &#151; Financial
Statements and Supplementary Data&#148; on page 30.</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Exhibits (*Denotes management contract or compensatory
plan or arrangement required to be filed as an exhibit to this
report pursuant to Item&nbsp;14 (c)&nbsp;of this report).</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="9%"></TD>
<TD width="91%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Exhibits filed herewith.</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="8%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2">Exhibit</FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left"><FONT size="2"><U>Number</U></FONT></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">2-1-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Agreement and Plan of Merger, among DTE Energy, MCN
Energy Group Inc. and DTE Enterprises, Inc., dated as of
October&nbsp;4, 1999 and amended as of November&nbsp;12, 1999.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4-205-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Supplemental Indenture, dated as of January&nbsp;1, 2000, creating the
General and Refunding Mortgage Bonds of 2000 Series&nbsp;A.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">11-8 -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Basic and Diluted Earnings Per Share of Common Stock.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-21-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Computation of Ratio of Earnings to Fixed Charges.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-22-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Computation of Ratio of Earnings to Fixed Charges.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-23-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Computation of Ratio of Earnings to Fixed
Charges and Preferred Stock Dividends.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">21-4 -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Subsidiaries of the Company and Detroit Edison.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">23-13-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Consent of Deloitte &#38; Touche LLP.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">27-31-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Financial Data Schedule for the period ended December&nbsp;31, 1999
for DTE Energy Company.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">27-32-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Financial Data Schedule for the period ended December&nbsp;31, 1999
for The Detroit Edison Company.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">78
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<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="86%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99-32-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amended and Restated Credit Agreement, Dated as of
January&nbsp;18, 2000 among DTE Capital Corporation, the Initial
Lenders, Citibank, N.A., as Agent, and ABN AMRO Bank N.V., Bank
One N.A., Barclays Bank PLC, Bayerische Landesbank Girozertrale,
Cayman Islands Branch, Comerica Bank and Den Daske Bank
Aktieselskab, as Co-Agents.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>
<TR valign="top">
<TD>&nbsp;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Exhibits incorporated herein by reference.</TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="87%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(a) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Articles of Incorporation of DTE
Energy Company, dated December&nbsp;13, 1995. (Exhibit&nbsp;3-5 to Form
10-Q for quarter ended September&nbsp;30, 1997)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certificate of Designation of Series&nbsp;A Junior
Participating Preferred Stock of DTE Energy Company. Exhibit&nbsp;3-6
to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restated Articles of Incorporation of Detroit Edison,
as filed December&nbsp;10, 1991 with the State of Michigan, Department
of Commerce &#151; Corporation and Securities Bureau (Exhibit&nbsp;3-13 to
Form&nbsp;10-Q for quarter ended June&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Articles of Incorporation of DTE Enterprises, Inc.
(Exhibit&nbsp;3.5 to Registration No.&nbsp;333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Rights Agreement, dated as of September&nbsp;23, 1997, by
and between DTE Energy Company and The Detroit Edison Company, as
Rights Agent (Exhibit&nbsp;4-1 to DTE Energy Company Current Report on
Form&nbsp;8-K, dated September&nbsp;23, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Agreement and Plan of Exchange (Exhibit&nbsp;1(2) to DTE
Energy Form&nbsp;8-B filed January&nbsp;2, 1996, File No.&nbsp;1-11607.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Bylaws of DTE Energy Company, as amended through
September&nbsp;22, 1999. (Exhibit&nbsp;3-3 to Registration No.&nbsp;333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Bylaws of The Detroit Edison Company, as amended
through September&nbsp;22, 1999. (Exhibit&nbsp;3-14 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Bylaws of DTE Enterprises, Inc. (Exhibit&nbsp;3.6 to
Registration No.&nbsp;333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(a) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Mortgage and Deed of Trust, dated as of October&nbsp;1,
1924, between Detroit Edison (File No.&nbsp;1-2198) and Bankers Trust
Company as Trustee (Exhibit&nbsp;B-1 to Registration No.&nbsp;2-1630) and
indentures supplemental thereto, dated as of dates indicated
below, and filed as exhibits to the filings as set forth below:</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">79
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<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="30%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="65%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">September&nbsp;1, 1947</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;B-20 to Registration No.&nbsp;2-7136</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;15, 1971</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-38 to Registration No.&nbsp;2-42160</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;15, 1973</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-39 to Registration No.&nbsp;2-46595</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;1, 1978</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-51 to Registration No.&nbsp;2-61643</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1982</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-30 to Registration No.&nbsp;2-78941</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1982</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-32 to Registration No.&nbsp;2-79674</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">October&nbsp;15, 1985</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-170 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;30, 1987</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-139 to Form&nbsp;10-K for</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;15, 1989</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
year ended December&nbsp;31, 1992
Exhibit&nbsp;4-171 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">December&nbsp;1, 1989</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-172 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">February&nbsp;15, 1990</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-173 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;1, 1991</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-15 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;1, 1991</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-181 to Form&nbsp;10-K for year
ended December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-182 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">February&nbsp;29, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-187 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-188 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-189 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;31, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-190 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1992</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-131 to Registration No.&nbsp;33-56496</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-191 to Form&nbsp;10-Q for
quarter ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;15, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-192 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-143 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;26, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-144 to Form&nbsp;10-Q for
quarter ended March&nbsp;31, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">May&nbsp;31, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-148 to Registration No.&nbsp;33-64296</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-149 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1993 (1993 Series&nbsp;AP)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-150 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1993 (1993 Series&nbsp;H)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">September&nbsp;15, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-158 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;1, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-163 to Registration No.&nbsp;33-53207</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;15, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-166 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1994</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="30%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="65%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-168 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">December&nbsp;1, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-169 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;1, 1995</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-174 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1995</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;1, 1999</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-204 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1999</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-205 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1999</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="8%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="87%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Collateral Trust Indenture (notes), dated as of June
30, 1993 (Exhibit&nbsp;4-152 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Supplemental Note Indenture, dated as of June&nbsp;30,
1993 (Exhibit&nbsp;4-153 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Supplemental Note Indenture, dated as of
September&nbsp;15, 1993 (Exhibit&nbsp;4-159 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of August&nbsp;15, 1996, to Second
Supplemental Note Indenture (Exhibit&nbsp;4-17 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Supplemental Note Indenture, dated as of August
15, 1994 (Exhibit&nbsp;4-169 to Form&nbsp;10-Q for quarter ended September
30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of December&nbsp;12, 1995, to
Third Supplemental Note Indenture, dated as of August&nbsp;15, 1994
(Exhibit&nbsp;4-12 to Registration No.&nbsp;333-00023).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Supplemental Note Indenture, dated as of May&nbsp;1,
1998, between Detroit Edison and Bankers Trust Company, as
Trustee, creating the 7.54% Quarterly Income Debt Securities
(&#147;QUIDS&#148;), including form of QUIDS. (Exhibit&nbsp;4-193 to Form&nbsp;10-Q
for quarter ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(i)-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Seventh Supplemental Note Indenture, dated as of October
15, 1998, between Detroit Edison and Bankers Trust Company, as
Trustee, creating the 7.375% QUIDS, including form of QUIDS.
(Exhibit&nbsp;4-198 to Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Standby Note Purchase Credit Facility, dated as of
August&nbsp;17, 1994, among The Detroit Edison Company, Barclays Bank
PLC, as Bank and Administrative Agent, Bank of America, The Bank
of new York, The Fuji Bank Limited, the Long-Term Credit Bank of
Japan, LTD, Union Bank and Citicorp Securities, Inc. and First
Chicago Capital Markets, Inc. as Remarketing Agents (Exhibit&nbsp;99-18
to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1994.)</FONT></TD>
</TR>
</TABLE>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="10%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="85%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(k)-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$60,000,000 Support Agreement dated as of January&nbsp;21,
1998 between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-183 to Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$100,000,000 Support Agreement, dated as of June&nbsp;16,
1998, between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-194 to Form&nbsp;10-Q for quarter ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(m)-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$300,000,000 Support Agreement, dated as of November&nbsp;18,
1998, between DTE Energy and DTE Capital Corporation. (Exhibit
4-199 to Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$400,000,000 Support Agreement, dated as of January&nbsp;19,
1999, between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-201 to Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$40,000,000 Support Agreement, dated as of February&nbsp;24,
1999 between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-202 to Form&nbsp;10-Q for quarter ended March&nbsp;31, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$50,000,000 Support Agreement, dated as of June&nbsp;10,
1999 between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-203 to Form&nbsp;10-Q for quarter ended June&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Indenture, dated as of June&nbsp;15, 1998, between DTE
Capital Corporation and The Bank of New York, as Trustee.
(Exhibit&nbsp;4-196 to Form&nbsp;10-Q for quarter ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Supplemental Indenture, dated as of June&nbsp;15,
1998, between DTE Capital Corporation and The Bank of New York, as
Trustee, creating the $100,000,000 Remarketed Notes, Series&nbsp;A due
2038, including form of Note. (Exhibit&nbsp;4-197 to Form&nbsp;10-Q for
quarter ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(s)-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Supplemental Indenture, dated as of November&nbsp;1,
1998, between DTE Capital Corporation and The Bank of New York, as
Trustee, creating the $300,000,000 Remarketed Notes, 1998 Series
B, including form of Note. (Exhibit&nbsp;4-200 to Form&nbsp;10-K for year
ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(a)-</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of Michael
C. Porter. (Exhibit&nbsp;10-8* to Form&nbsp;10-Q for Quarter ended
September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Change-in-Control Severance Agreement, dated as of
October&nbsp;1, 1997, between DTE Energy Company and Gerard M.
Anderson, Susan M. Beale, Robert J. Buckler, Michael C. Champley,
Anthony F. Earley, Jr., Larry G. Garberding, Douglas R. Gipson,
John E. Lobbia, Leslie L. Loomans, David E. Meador, Christopher C. Nern,
Michael C. Porter, William R. Roller and S.</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="86%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Martin Taylor. (Exhibit&nbsp;10-9* to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of 1995 Indemnification Agreement between the
Company and its directors and officers (Exhibit&nbsp;3L
(10-1) to DTE Energy Company Form&nbsp;8-B dated January
2, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement between Detroit
Edison and its officers other than those identified
in *10(b) (Exhibit&nbsp;10-41 to Detroit Edison&#146;s Form
10-Q for quarter ended June&nbsp;30, 1993.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of S. Martin Taylor
(Exhibit&nbsp;10-38 to Detroit Edison&#146;s Form&nbsp;10-Q for quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Post-Employment Income
Agreement dated March&nbsp;23, 1998, between Detroit
Edison and Anthony F. Earley, Jr. (Exhibit&nbsp;10-20 to
Form&nbsp;10-Q for quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restricted Stock Agreement, dated March&nbsp;23, 1998, between
Detroit Edison and Anthony F. Earley, Jr. (Exhibit&nbsp;10-20 to Form
10-Q for quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Detroit Edison Savings Reparation Plan
(February&nbsp;23, 1998). Exhibit&nbsp;10-19* for quarter ended March&nbsp;31,
1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of Larry G.
Garberding (Exhibit&nbsp;10-23* to Form&nbsp;10-Q for quarter ended March
31, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement, between Detroit Edison and
(1) John E. Lobbia, (2)&nbsp;Larry G. Garberding and (3)&nbsp;Anthony F.
Earley, Jr. (Exhibit&nbsp;10-24* to Form&nbsp;10-Q for quarter ended March
3, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(k) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement between Detroit Edison and
its directors (Exhibit&nbsp;10-25* to Form&nbsp;10-Q for quarter ended March
31, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Executive Vehicle Program, dated October&nbsp;1, 1993 (Exhibit
10-47 to Detroit Edison&#146;s Form&nbsp;10-Q for quarter ended September
30, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(m) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendment No.&nbsp;1 to Executive Vehicle Plan, November&nbsp;1993
(Exhibit&nbsp;10-58 to Detroit Edison&#146;s Form&nbsp;10-K for year ended
December&nbsp;31, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of Gerard
M. Anderson (Exhibit&nbsp;10-40 to Detroit Edison&#146;s Form&nbsp;10-K for year
ended December&nbsp;31, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-Term Incentive Plan (Exhibit&nbsp;10-3 to Form&nbsp;10-K for year
ended December&nbsp;31, 1996).</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="12%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendment No.&nbsp;1 to The Detroit Edison Company Long-Term
Incentive Plan, effective December&nbsp;31, 1998. (Exhibit&nbsp;10-28* to
Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1999 Executive Incentive Plan Measures (Exhibit&nbsp;10-33* to Form
10-Q for quarter ended March&nbsp;31, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1999 Shareholder Value Improvement Plans-A Measures (Exhibit
10-32* to Form&nbsp;10-Q for quarter ended March&nbsp;31, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(s) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Restatement of The Benefit Equalization Plan for
Certain Employees of The Detroit Edison Company (October&nbsp;1997).
(Exhibit&nbsp;10-11* to Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(t) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Key Employee Deferred Compensation
Plan (October&nbsp;1997). (Exhibit&nbsp;10-12* to Form&nbsp;10-K for year ended
December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(u) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Executive Incentive Plan (October
1997). (Exhibit&nbsp;10-13* to Form&nbsp;10-K for the year ended December
31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(v) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Detroit Edison Company Shareholder Value Improvement Plan
(October&nbsp;1997). (Exhibit&nbsp;10-15* to Form&nbsp;10-K for year ended
December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(w) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Trust Agreement for DTE Energy Company Change-In-Control
Severance Agreements between DTE Energy Company and Wachovia Bank,
N.A. (Exhibit&nbsp;10-16* to Form&nbsp;10-K for year ended December&nbsp;31,
1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(x) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of David E.
Meador (Exhibit&nbsp;10-5 to Form&nbsp;10-K for year ended December&nbsp;31,
1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(y) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Supplemental Long-Term Disability Plan,
dated January&nbsp;27, 1997. (Exhibit *10-4 to form 10-K for year
ended December&nbsp;31, 1996.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(z) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Restatement of the Retirement Reparation Plan for
Certain Employees of The Detroit Edison Company (October&nbsp;1997).
Exhibit *10-10 to Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(aa) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Restatement of The Detroit Edison Company Management
Supplemental Benefit Plan (1998). (Exhibit&nbsp;10-27* to Form&nbsp;10-K
for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(bb) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Plan for Deferring the Payment of
Directors&#146; Fees (As Amended and Restated Effective As of January
1, 1999). (Exhibit&nbsp;10-29* to Form&nbsp;10-K for year ended December
31, 1998.)</FONT></TD>
</TR>
</TABLE>
</CENTER>

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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(cc) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Deferred stock Compensation Plan for Non-Employee Directors, effective as of
January&nbsp;1, 1999. (Exhibit&nbsp;10-30* to Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(dd) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Retirement Plan for Non-Employee Directors (As Amended and Restated Effective
As Of December&nbsp;31, 1998). (Exhibit&nbsp;10-31 to Form&nbsp;10-K for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(a) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Belle River Participation Agreement between Detroit Edison and Michigan Public Power Agency,
dated as of December&nbsp;1, 1982 (Exhibit&nbsp;28-5 to Registration No.&nbsp;2-81501).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Belle River Transmission Ownership and Operating Agreement between Detroit Edison and Michigan
Public Power Agency, dated as of December&nbsp;1, 1982 (Exhibit&nbsp;28-6 to Registration No.&nbsp;2-81501).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1988 Amended and Restated Loan Agreement, dated as of October&nbsp;4, 1988, between Renaissance Energy
Company (an unaffiliated company) (&#147;Renaissance&#148;) and Detroit Edison (Exhibit 99-6 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment to 1988 Amended and Restated Loan Agreement, dated as of February&nbsp;1, 1990,
between Detroit Edison and Renaissance (Exhibit&nbsp;99-7 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Amendment to 1988 Amended and Restated Loan Agreement, dated as of September&nbsp;1, 1993,
between Detroit Edison and Renaissance (Exhibit&nbsp;99-8 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of August&nbsp;28, 1997, to 1988 Amended and Restated Loan Agreement between
Detroit Edison and Renaissance. (Exhibit&nbsp;99-22 to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$200,000,000 364-Day Credit Agreement, dated as of September&nbsp;1, 1993, among Detroit Edison,
Renaissance and Barclays Bank PLC, New York Branch, as Agent (Exhibit&nbsp;99-12 to Registration No.
33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of August&nbsp;31, 1994, to $200,000,000 364-Day Credit Agreement, dated
September&nbsp;1, 1993, among The Detroit Edison Company, Renaissance Energy Company, the Banks party
thereto and Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-19 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of March&nbsp;8, 1996, to $200,000,000 364-Day Credit Agreement, dated
September&nbsp;1, 1993, as amended, among Detroit Edison, Renaissance, the Banks party thereto and
Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-11 to Form&nbsp;10-Q for quarter ended March
31, 1996).</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment, dated as of August&nbsp;29, 1996, to $200,000,000 364-Day Credit Agreement as of
September&nbsp;1, 1990, as amended, among Detroit Edison, Renaissance, the Banks party thereto and
Barclays Bank, PLC, New York Branch, as Agent (Exhibit 99-13 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(k) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment, dated as of September&nbsp;1, 1997, to $200,000,000 Multi-Year Credit Agreement,
dated as of September&nbsp;1, 1993, as amended, among Detroit Edison, Renaissance, the Banks Party
thereto and Barclays Bank PLC, New York Branch, as Agent. (Exhibit 99-24 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Seventh Amendment, dated as of August&nbsp;26, 1999, to $200,000,000 364-Day Credit Agreement, dated
as of September&nbsp;1, 1993, as amended among The Detroit Edison Company, Renaissance Energy Company,
the Banks parties thereto and Barclays Bank PLC, New York branch as Agent. (Exhibit 99-30 to
Form&nbsp;10-Q for quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(m) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$200,000,000 Three-Year Credit Agreement, dated September 1, 1993, among Detroit Edison,
Renaissance and Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-13 to Registration No.
33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of September&nbsp;1, 1994, to $200,000,000 Three-Year Credit Agreement,
dated as of September&nbsp;1, 1993, among The Detroit Edison Company, Renaissance Energy Company, the
Banks party thereto and Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-20 to Form&nbsp;10-Q
for quarter ended September&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of March&nbsp;8, 1996, to $200,000,000 Three-Year Credit Agreement, dated
September&nbsp;1, 1993, as amended among Detroit Edison, Renaissance, the Banks party thereto and
Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-12 to Form&nbsp;10-Q for quarter ended March
31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment, dated as of September&nbsp;1, 1996, to $200,000,000 Multi-Year (formerly Three-Year)
Credit Agreement, dated as of September&nbsp;1, 1993, as amended among Detroit Edison, Renaissance,
the Banks party thereto and Barclays Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-14 to Form
10-Q for quarter ended September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment, dated as of August&nbsp;28, 1997, to $200,000,000 364-Day Credit Agreement, dated as
of September&nbsp;1, 1990, as amended, among Detroit Edison, Renaissance, the Banks Party thereto and
Barclays Bank PLC, New York Branch, as Agent. (Exhibit 99-25 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1997.)</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Amendment, dated as of August&nbsp;27, 1998, to $200,000,000 364-Day Credit Agreement dated as</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
of September&nbsp;1, 1990, as amended, among Detroit Edison, Renaissance, the Banks party thereto and
Barclays Bank PLC, New York Branch, as agent. (Exhibit&nbsp;99-32 to Registration No.&nbsp;333-65765.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(s) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1988 Amended and Restated Nuclear Fuel Heat Purchase Contract, dated October&nbsp;4, 1988, between
Detroit Edison and Renaissance (Exhibit&nbsp;99-9 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(t) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment to 1988 Amended and Restated Nuclear Fuel Heat Purchase Contract, dated as of
February&nbsp;1, 1990, between Detroit Edison and Renaissance (Exhibit&nbsp;99-10 to Registration No.
33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(u) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Eighth Amendment, dated as of August&nbsp;26, 1999 to 1988 Amended and Restated Nuclear Fuel heat
Purchase Contract between Detroit Edison and Renaissance Energy Company. (Exhibit&nbsp;99-31 to Form
10-Q for quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(v) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
U.S. $160,000,000 Standby Note Purchase Credit Facility, dated as of October&nbsp;26, 1999, among
Detroit Edison, the Bank&#146;s signatory thereto, Barclays Bank PLC, as Administrative Agent and
Barclays Capital Inc., Lehman Brothers Inc. and Banc One Capital Markets, Inc., as Remarketing
Agents. (Exhibit&nbsp;99-29 to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(w) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Standby Note Purchase Credit Facility, dated as of September&nbsp;12, 1997, among The Detroit Edison
Company and the Bank&#146;s Signatory thereto and The Chase Manhattan Bank, as Administrative Agent,
and Citicorp Securities, Inc., Lehman Brokers, Inc., as Remarketing Agents and Chase Securities,
Inc. as Arranger. (Exhibit&nbsp;999-26 to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(x) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Master Trust Agreement (&#147;Master Trust&#148;), dated as of June&nbsp;30, 1994, between Detroit Edison and
Fidelity Management Trust Company relating to the Savings &#38; Investment Plans (Exhibit&nbsp;4-167 to
Form&nbsp;10-Q for quarter ended June&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(y) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, effective as of February&nbsp;1, 1995, to Master Trust (Exhibit&nbsp;4-10 to Registration
No.&nbsp;333-00023).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(z) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Amendment, effective as of February&nbsp;1, 1995 to Master Trust (Exhibit&nbsp;4-11 to Registration
No.&nbsp;333-00023).</FONT></TD>

<TR valign="bottom">
<TD valign="top"><FONT size="2">99(aa) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, effective January&nbsp;1, 1996, to Master Trust (Exhibit&nbsp;4-12 to Registration No.
333-00023).</FONT></TD>
</TR>

</TR>
</TABLE>
</CENTER>
<P align="center">87
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(bb) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment to Trust Agreement Between Fidelity Management Trust Company and The Detroit
Edison Company (July&nbsp;1996). Exhibit&nbsp;4-185 to Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(cc) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment to Trust Agreement Between Fidelity Management Trust Company and The Detroit
Edison Company (December&nbsp;1997). Exhibit&nbsp;4-186 to Form&nbsp;10-K for the year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(dd) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison Company Savings
Reparation Plan (Exhibit&nbsp;99-1 to Form&nbsp;10-K for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(ee) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison Company Retirement
Reparation Plan (Exhibit&nbsp;99-2 to Form&nbsp;10-K for year ended December&nbsp;31,1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(ff) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison Company Management
Supplemental Benefit Plan (Exhibit&nbsp;99-3 to Form&nbsp;10-K for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(gg) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison Company Benefit
Equalization Plan (Exhibit&nbsp;99-4 to Form&nbsp;10-K for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(hh) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison Company Plan for
Deferring the Payment of Directors&#146; Fees (Exhibit&nbsp;99-5 to Form&nbsp;10-K for year ended December
31, 1996.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99 (ii) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The DTE Energy Company Retirement Plan
for Non-Employee Directors (Exhibit&nbsp;99-6 to Form&nbsp;10-K for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99 (jj) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Irrevocable Grantor Trust for The DTE Energy Company Plan for Deferring the
Payment of Directors&#146; Fees (Exhibit&nbsp;99-7 to Form&nbsp;10-K for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">(b)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">DTE Energy filed a report on Form&nbsp;8-K,
dated October&nbsp;5, 1999, discussing the proposed merger with
MCN.<br>DTE Energy filed a report on Form 8-K, dated February 16,
2000, discussing its Common Share buyback program.</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="top">
<TD width="1%" align="left">(c)</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">*Denotes management contract or compensatory plan or arrangement required to be entered as an exhibit to this
report.</TD>
</TR>
</TABLE>

<P align="center">88


<!-- PAGEBREAK -->
<P><HR noshade><P>
<P align="center"><B>DTE ENERGY COMPANY</B><BR>

<P align="center"><B>SCHEDULE II &#151; VALUATION AND QUALIFYING ACCOUNTS</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="39%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>Additions</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Balance</B></FONT></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Balance</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>at Beginning</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Charged to</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Charged to</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>at End</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>of</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Costs and</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>of</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Description</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Period</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Expenses</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Accounts(a)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Deductions(b)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Period</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="19"><FONT size="2"><B>(Thousands)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">YEAR 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">21,363</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,357</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(23,720</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">21,000</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">YEAR 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">23,216</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,789</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(26,005</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">YEAR 1997</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">18,738</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,657</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(21,395</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>

<HR size="2" width="10%" align="left" noshade>
<P>
(a)&nbsp;Collection of accounts previously written off.
<P>(b)&nbsp;Uncollectible accounts written off.



<P align="center">89

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>THE DETROIT EDISON COMPANY</B><BR>
<P align="center"><B>SCHEDULE II &#151; VALUATION AND QUALIFYING ACCOUNTS</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="39%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="7"><FONT size="2"><B>Additions</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Balance</B></FONT></TD>
<TD></TD>
<TD colspan="7"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Balance</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>at Beginning</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Charged to</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Charged to</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>at End</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>of</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Costs and</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>of</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Description</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Period</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Expenses</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Accounts(a)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Deductions(b)</B></FONT></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Period</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD></TD>
<TD align="center" colspan="19"><FONT size="2"><B>(Thousands)</B></FONT></TD>
</TR>

<TR valign="bottom">
<TD><FONT size="2">YEAR 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,363</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">3,357</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(23,720</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">YEAR 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">23,216</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,789</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(26,005</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">YEAR 1997</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD><FONT size="2">Allowance for
uncollectible accounts
(shown as deduction
from accounts receivable
in balance sheet)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">18,738</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">2,657</FONT></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">(21,395</FONT></TD>
<TD nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">20,000</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P>

<HR size="2" width="10%" align="left" noshade>
<P>
(a)&nbsp;Collection of accounts previously written off.
<P>(b)&nbsp;Uncollectible accounts written off.



<P align="center">90

<!-- PAGEBREAK -->
<P><HR noshade><P>




<P align="center"><B>SIGNATURES</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section&nbsp;13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="49%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="46%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE ENERGY COMPANY</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
(Registrant)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ ANTHONY F. EARLEY, JR</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/ LARRY G. GARBERDING</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Anthony F. Earley, Jr.
Chairman of the Board,
Chief Executive Officer, President
and Chief Operating Officer</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Larry G. Garberding
Executive Vice President,
Chief Financial Officer and Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ DAVID E. MEADOR</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/ TERENCE E. ADDERLEY</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">David E. Meador
Vice President</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Terence E. Adderley, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ LILLIAN BAUDER</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/ DAVID BING</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Lillian Bauder, Director</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
David Bing, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ WILLIAM C. BROOKS</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/ ALLAN D. GILMOUR</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">William C. Brooks, Director</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Allan D. Gilmour, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ THEODORE S. LEIPPRANDT</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/JOHN E. LOBBIA</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Theodore S. Leipprandt, Director</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
John E. Lobbia, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ EUGENE A. MILLER</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By /s/ DEAN E. RICHARDSON</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Eugene A. Miller, Director</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Dean E. Richardson, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ CHARLES W. PRYOR, JR</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Charles W. Pryor, Jr., Director</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>Date:&nbsp;February&nbsp;23, 2000

<P align="center">91
<!-- PAGEBREAK -->
<P><HR noshade><P>



<P align="center"><B>SIGNATURES</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section&nbsp;13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%" align="center">
<TR valign="bottom">
<TD width="44%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="43%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">THE DETROIT EDISON COMPANY</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">(Registrant)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ ANTHONY F. EARLEY, JR</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ LARRY G. GARBERDING</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Anthony F. Earley, Jr.
Chairman of the Board,
Chief Executive Officer,
President and Chief Operating Officer</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Larry G. Garberding
Executive Vice President,
Chief Financial Officer and Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ DANIEL G. BRUDZYNSKI</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ TERENCE E. ADDERLEY</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Daniel G. Brudzynski
Controller</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Terence E. Adderley, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ LILLIAN BAUDER</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ DAVID BING</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Lillian Bauder, Director</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">David Bing, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ WILLIAM C. BROOKS</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ ALLAN D. GILMOUR</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">William C. Brooks, Director</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Allan D. Gilmour, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ THEODORE S. LEIPPRANDT</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/JOHN E. LOBBIA</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Theodore S. Leipprandt, Director</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">John E. Lobbia, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/ EUGENE A. MILLER</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
By
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">/s/ DEAN E. RICHARDSON</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><HR size="1"></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Eugene A. Miller, Director</FONT></TD>
<TD></TD>
<TD nowrap align="right" valign="top"></TD>
<TD align="right" valign="top"><FONT size="2">
</FONT></TD>
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Dean E. Richardson, Director</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">By /s/CHARLES W. PRYOR, JR</FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2"><HR size="1"></FONT></TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">Charles W. Pryor, Jr., Director</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>Date:&nbsp;February&nbsp;23, 2000


<P align="center">92
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<!-- /TOC -->
<P align="center"><B>Annual Reports on Form&nbsp;10-K for DTE Energy Company<BR>
and The Detroit Edison Company</B>

<P align="center"><B>Exhibit&nbsp;Index</B>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Exhibit</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><FONT size="2"><B>Number</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD colspan="3"><HR size="1"></TD>
</TR>

<TR valign="bottom">
<TD valign="top"><FONT size="2">2-1</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Agreement and Plan of Merger, among DTE Energy, MCN
Energy Group Inc. and DTE Enterprises, Inc., dated as
of October&nbsp;4, 1999 and amended as of November&nbsp;12,
1999.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4-205</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Supplemental Indenture, dated as of January&nbsp;1, 2000,
creating the General and Refunding Mortgage Bonds of
2000 Series&nbsp;A.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">11-8</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">DTE Energy Company Basic and Diluted Earnings Per
Share of Common Stock.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-21</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">DTE Energy Company Computation of Ratio of Earnings to
Fixed Charges.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-22</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">The Detroit Edison Company Computation of Ratio of
Earnings to Fixed Charges.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">12-23</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">The Detroit
Edison Company Computation of Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">21-4</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Subsidiaries of the Company and Detroit Edison.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">23-13</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Consent of Deloitte &#38; Touche LLP.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">27-31</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Financial Data Schedule for the period ended December
31, 1999 for DTE Energy Company.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">27-32</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Financial Data Schedule for the period ended December
31, 1999 for The Detroit Edison Company.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99-32</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Third Amended and Restated Credit Agreement, Dated as
of January&nbsp;18, 2000 among DTE Capital Corporation,
the Initial Lenders, Citibank, N.A., as Agent, and
ABN AMRO Bank N.V., Bank One N.A., Barclays Bank PLC,
Bayerische Landesbank Girozertrale, Cayman Islands
Branch, Comerica Bank and Den Daske Bank
Aktieselskab, as Co-Agents.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>(ii)&nbsp;Exhibits incorporated herein by reference.

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="85%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(a)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Amended and Restated Articles of Incorporation of DTE Energy
Company, dated December&nbsp;13, 1995. (Exhibit&nbsp;3-5 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1997)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">&nbsp;
<!-- PAGEBREAK -->
<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="85%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(b)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Certificate of Designation of Series&nbsp;A Junior
Participating Preferred Stock of DTE Energy Company.
Exhibit&nbsp;3-6 to Form&nbsp;10-Q for quarter ended September
30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(c)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Restated Articles of Incorporation of Detroit Edison, as filed December&nbsp;10, 1991 with the
State of Michigan, Department of Commerce &#151; Corporation and Securities Bureau (Exhibit
3-13 to Form&nbsp;10-Q for quarter ended June&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(d)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Articles of Incorporation of DTE Enterprises, Inc. (Exhibit 3.5 to Registration No.
333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(e)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Rights Agreement, dated as of September&nbsp;23, 1997,
by and between DTE Energy Company and The Detroit
Edison Company, as Rights Agent (Exhibit&nbsp;4-1 to DTE
Energy Company Current Report on Form&nbsp;8-K, dated
September&nbsp;23, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(f)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Agreement and Plan of Exchange (Exhibit 1(2) to DTE Energy Form&nbsp;8-B filed January&nbsp;2,
1996, File No.&nbsp;1-11607.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(g)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Bylaws of DTE Energy Company, as amended through
September&nbsp;22, 1999. (Exhibit&nbsp;3-3 to Registration No.&nbsp;333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(h)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Bylaws of The Detroit Edison Company, as amended
through September&nbsp;22, 1999. (Exhibit&nbsp;3-14 to Form
10-Q for quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">3(i)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Bylaws of DTE Enterprises, Inc. (Exhibit&nbsp;3.6 to Registration No.&nbsp;333-89175.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(a)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
- -
</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">Mortgage and Deed of Trust, dated as of October&nbsp;1,
1924, between Detroit Edison (File No.&nbsp;1-2198) and
Bankers Trust Company as Trustee (Exhibit&nbsp;B-1 to
Registration No.&nbsp;2-1630) and indentures supplemental
thereto, dated as of dates indicated below, and filed
as exhibits to the filings as set forth below:</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="29%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="66%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">September&nbsp;1, 1947</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;B-20 to Registration No.&nbsp;2-7136</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;15, 1971</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-38 to Registration No.&nbsp;2-42160</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;15, 1973</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-39 to Registration No.&nbsp;2-46595</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;1, 1978</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;2-B-51 to Registration No.&nbsp;2-61643</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1982</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-30 to Registration No.&nbsp;2-78941</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1982</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-32 to Registration No.&nbsp;2-79674</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">October&nbsp;15, 1985</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-170 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;30, 1987</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-139 to Form&nbsp;10-K for
year ended December&nbsp;31, 1992</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;15, 1989</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-171 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%" align="center">
<TR valign="bottom">
<TD width="30%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="65%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">December&nbsp;1, 1989</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-172 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">February&nbsp;15, 1990</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-173 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;1, 1991</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-15 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">November&nbsp;1, 1991</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-181 to Form&nbsp;10-K for year
ended December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-182 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">February&nbsp;29, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-187 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-188 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;15, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-189 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">July&nbsp;31, 1992</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-190 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1992</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">January&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-131 to Registration No.&nbsp;33-56496</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-191 to Form&nbsp;10-Q for
quarter ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;15, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-192 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1998</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;1, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-143 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">April&nbsp;26, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-144 to Form&nbsp;10-Q for
quarter ended March&nbsp;31, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">May&nbsp;31, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-148 to Registration No.&nbsp;33-64296</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-149 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1993 (1993 Series&nbsp;AP)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;30, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-150
to Form&nbsp;10-Q for
quarter ended June&nbsp;30,
1993 (1993 Series&nbsp;H)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">September&nbsp;15, 1993</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-158 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1993</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">March&nbsp;1, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-163 to Registration No.&nbsp;33-53207</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">June&nbsp;15, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-166 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-168 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">December&nbsp;1, 1994</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-169 to Form&nbsp;10-K for
year ended December&nbsp;31, 1994</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;1, 1995</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-174 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1995</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;1, 1999</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-204 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1999</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">August&nbsp;15, 1999</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibit&nbsp;4-205 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1999</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Collateral Trust Indenture (notes), dated as of June 30, 1993 (Exhibit 4-152 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Supplemental Note Indenture, dated as of June 30, 1993 (Exhibit 4-153 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Supplemental Note Indenture, dated as of September&nbsp;15, 1993 (Exhibit&nbsp;4-159 to Form
10-Q for quarter ended September&nbsp;30, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of August&nbsp;15, 1996, to
Second Supplemental Note Indenture (Exhibit&nbsp;4-17 to
Form&nbsp;10-Q for quarter ended September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Supplemental Note Indenture, dated as of August&nbsp;15, 1994 (Exhibit 4-169 to Form
10-Q for quarter ended September&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of December&nbsp;12, 1995, to
Third Supplemental Note Indenture, dated as of August
15, 1994 (Exhibit&nbsp;4-12 to Registration No.&nbsp;333-00023).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Supplemental Note Indenture, dated as of May&nbsp;1,
1998, between Detroit Edison and Bankers Trust Company,
as Trustee, creating the 7.54% Quarterly Income Debt
Securities (&#147;QUIDS&#148;), including form of QUIDS. (Exhibit
4-193 to Form&nbsp;10-Q for quarter ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Seventh Supplemental Note Indenture, dated as of
October&nbsp;15, 1998, between Detroit Edison and Bankers
Trust Company, as Trustee, creating the 7.375% QUIDS,
including form of QUIDS. (Exhibit&nbsp;4-198 to Form&nbsp;10-K
for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Standby Note Purchase Credit Facility, dated as of
August&nbsp;17, 1994, among The Detroit Edison Company,
Barclays Bank PLC, as Bank and Administrative Agent,
Bank of America, The Bank of new York, The Fuji Bank
Limited, the Long-Term Credit Bank of Japan, LTD, Union
Bank and Citicorp Securities, Inc. and First Chicago
Capital Markets, Inc. as Remarketing Agents (Exhibit
99-18 to Form&nbsp;10-Q for quarter ended September&nbsp;30,
1994.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(k) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$60,000,000 Support Agreement dated as of January&nbsp;21, 1998
between DTE Energy Company and DTE Capital Corporation.
(Exhibit&nbsp;4-183 to Form&nbsp;10-K for year ended December&nbsp;31,
1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$100,000,000 Support Agreement, dated as of June&nbsp;16,
1998, between DTE Energy Company and DTE Capital
Corporation. (Exhibit&nbsp;4-194 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1998.)</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(m) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$300,000,000 Support Agreement, dated as of November&nbsp;18,
1998, between DTE Energy and DTE Capital Corporation.
(Exhibit&nbsp;4-199 to Form&nbsp;10-K for year ended December&nbsp;31,
1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$400,000,000 Support Agreement, dated as of January
19, 1999, between DTE Energy Company and DTE Capital
Corporation. (Exhibit&nbsp;4-201 to Form&nbsp;10-K for year ended
December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$40,000,000 Support Agreement, dated as of February
24, 1999 between DTE Energy Company and DTE Capital
Corporation. (Exhibit&nbsp;4-202 to Form&nbsp;10-Q for quarter
ended March&nbsp;31, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$50,000,000 Support Agreement, dated as of June&nbsp;10,
1999 between DTE Energy Company and DTE Capital
Corporation. (Exhibit&nbsp;4-203 to Form&nbsp;10-Q for quarter
ended June&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Indenture, dated as of June&nbsp;15, 1998, between DTE
Capital Corporation and The Bank of New York, as
Trustee. (Exhibit&nbsp;4-196 to Form&nbsp;10-Q for quarter ended
June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Supplemental Indenture, dated as of June&nbsp;15,
1998, between DTE Capital Corporation and The Bank of
New York, as Trustee, creating the $100,000,000
Remarketed Notes, Series&nbsp;A due 2038, including form of
Note. (Exhibit&nbsp;4-197 to Form&nbsp;10-Q for quarter ended
June&nbsp;30, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">4(s) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Supplemental Indenture, dated as of November
1, 1998, between DTE Capital Corporation and The Bank
of New York, as Trustee, creating the $300,000,000
Remarketed Notes, 1998 Series&nbsp;B, including form of
Note. (Exhibit&nbsp;4-200 to Form&nbsp;10-K for year ended
December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(a)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of Michael C.
Porter. (Exhibit&nbsp;10-8* to Form&nbsp;10-Q for Quarter ended
September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(b)</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Change-in-Control Severance Agreement, dated as of
October&nbsp;1, 1997, between DTE Energy Company and Gerard M.
Anderson, Susan M. Beale, Robert J. Buckler, Michael C. Champley,
Anthony F. Earley, Jr., Larry G. Garberding, Douglas R. Gipson,
John E. Lobbia, Leslie L. Loomans, David E. Meador, Christopher C.
Nern, Michael C. Porter, William R. Roller and S. Martin Taylor.
(Exhibit&nbsp;10-9* to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of 1995 Indemnification Agreement between the
Company and its directors and officers (Exhibit&nbsp;3L
(10-1) to DTE Energy Company Form&nbsp;8-B dated January&nbsp;2,
1996).</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement between Detroit
Edison and its officers other than those identified in
*10(b) (Exhibit&nbsp;10-41 to Detroit Edison&#146;s Form&nbsp;10-Q for
quarter ended June&nbsp;30, 1993.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment of
S. Martin Taylor (Exhibit&nbsp;10-38 to Detroit Edison&#146;s
Form&nbsp;10-Q for quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Post-Employment Income Agreement
dated March&nbsp;23, 1998, between Detroit Edison and
Anthony F. Earley, Jr. (Exhibit&nbsp;10-20 to Form&nbsp;10-Q for
quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restricted Stock Agreement, dated March&nbsp;23, 1998,
between Detroit Edison and Anthony F. Earley, Jr.
(Exhibit&nbsp;10-20 to Form&nbsp;10-Q for quarter ended March
31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Detroit Edison Savings
Reparation Plan (February&nbsp;23, 1998). Exhibit&nbsp;10-19*
for quarter ended March&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment
of Larry G. Garberding (Exhibit&nbsp;10-23* to Form&nbsp;10-Q
for quarter ended March&nbsp;31, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement, between Detroit
Edison and (1)&nbsp;John E. Lobbia, (2)&nbsp;Larry G.
Garberding and (3)&nbsp;Anthony F. Earley, Jr. (Exhibit
10-24* to Form&nbsp;10-Q for quarter ended March&nbsp;3, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(k) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of Indemnification Agreement between Detroit
Edison and its directors (Exhibit&nbsp;10-25* to Form&nbsp;10-Q
for quarter ended March&nbsp;31, 1998).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Executive Vehicle Program, dated October&nbsp;1, 1993
(Exhibit&nbsp;10-47 to Detroit Edison&#146;s Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(m) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendment No.&nbsp;1 to Executive Vehicle Plan, November
1993 (Exhibit&nbsp;10-58 to Detroit Edison&#146;s Form&nbsp;10-K for
year ended December&nbsp;31, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment
of Gerard M. Anderson (Exhibit&nbsp;10-40 to Detroit
Edison&#146;s Form&nbsp;10-K for year ended December&nbsp;31, 1993).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-Term Incentive Plan (Exhibit&nbsp;10-3 to Form&nbsp;10-K
for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendment No.&nbsp;1 to The Detroit Edison Company
Long-Term Incentive Plan, effective December&nbsp;31,
1998. (Exhibit&nbsp;10-28* to Form&nbsp;10-K for year ended
December&nbsp;31, 1998.)</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1999 Executive Incentive Plan Measures (Exhibit
10-33* to Form&nbsp;10-Q for quarter ended March&nbsp;31,
1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1999 Shareholder Value Improvement Plans-A Measures
(Exhibit&nbsp;10-32* to Form&nbsp;10-Q for quarter ended March
31, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(s) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Restatement of The Benefit Equalization Plan
for Certain Employees of The Detroit Edison Company
(October&nbsp;1997). (Exhibit&nbsp;10-11* to Form&nbsp;10-K for year
ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(t) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Key Employee Deferred
Compensation Plan (October&nbsp;1997). (Exhibit&nbsp;10-12* to
Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(u) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Executive Incentive Plan
(October&nbsp;1997). (Exhibit&nbsp;10-13* to Form&nbsp;10-K for the
year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(v) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Detroit Edison Company Shareholder Value
Improvement Plan (October&nbsp;1997). (Exhibit&nbsp;10-15* to
Form&nbsp;10-K for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(w) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Trust Agreement for DTE Energy Company
Change-In-Control Severance Agreements between DTE
Energy Company and Wachovia Bank, N.A. (Exhibit
10-16* to Form&nbsp;10-K for year ended December&nbsp;31,
1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(x) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain arrangements pertaining to the employment
of David E. Meador (Exhibit&nbsp;10-5 to Form&nbsp;10-K for
year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(y) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Supplemental Long-Term
Disability Plan, dated January&nbsp;27, 1997. (Exhibit
*10-4 to form 10-K for year ended December&nbsp;31, 1996.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(z) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Restatement of the Retirement Reparation
Plan for Certain Employees of The Detroit Edison
Company (October&nbsp;1997). Exhibit *10-10 to Form&nbsp;10-K
for year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(aa) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Restatement of The Detroit Edison Company
Management Supplemental Benefit Plan (1998). (Exhibit
10-27* to Form&nbsp;10-K for year ended December&nbsp;31,
1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(bb) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Plan for Deferring the Payment
of Directors&#146; Fees (As Amended and Restated Effective
As of January&nbsp;1, 1999). (Exhibit&nbsp;10-29* to Form&nbsp;10-K
for year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(cc) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Deferred stock Compensation Plan
for Non-Employee Directors, effective as of January
1, 1999. (Exhibit&nbsp;10-30* to Form&nbsp;10-K for year ended
December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">*10(dd) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Retirement Plan for Non-Employee
Directors (As Amended and Restated Effective As Of
December&nbsp;31, 1998). (Exhibit&nbsp;10-31 to Form&nbsp;10-K for
year ended December&nbsp;31, 1998.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(a) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Belle River Participation Agreement between Detroit
Edison and Michigan Public Power Agency, dated as of
December&nbsp;1, 1982 (Exhibit&nbsp;28-5 to Registration No.
2-81501).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(b) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Belle River Transmission Ownership and Operating
Agreement between Detroit Edison and Michigan Public
Power Agency, dated as of December&nbsp;1, 1982 (Exhibit
28-6 to Registration No.&nbsp;2-81501).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(c) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1988 Amended and Restated Loan Agreement, dated as
of October&nbsp;4, 1988, between Renaissance Energy
Company (an unaffiliated company) (&#147;Renaissance&#148;) and
Detroit Edison (Exhibit&nbsp;99-6 to Registration No.
33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(d) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment to 1988 Amended and Restated Loan
Agreement, dated as of February&nbsp;1, 1990, between
Detroit Edison and Renaissance (Exhibit&nbsp;99-7 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(e) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Amendment to 1988 Amended and Restated Loan
Agreement, dated as of September&nbsp;1, 1993, between
Detroit Edison and Renaissance (Exhibit&nbsp;99-8 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(f) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of August&nbsp;28, 1997, to
1988 Amended and Restated Loan Agreement between
Detroit Edison and Renaissance. (Exhibit&nbsp;99-22 to
Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(g) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$200,000,000 364-Day Credit Agreement, dated as of
September&nbsp;1, 1993, among Detroit Edison, Renaissance
and Barclays Bank PLC, New York Branch, as Agent
(Exhibit&nbsp;99-12 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(h) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of August&nbsp;31, 1994, to
$200,000,000 364-Day Credit Agreement, dated
September&nbsp;1, 1993, among The Detroit Edison Company,
Renaissance Energy Company, the Banks party thereto
and Barclays Bank, PLC, New York Branch, as Agent
(Exhibit&nbsp;99-19 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(i) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of March&nbsp;8, 1996, to
$200,000,000 364-Day Credit Agreement, dated
September&nbsp;1, 1993, as amended, among Detroit Edison,
Renaissance, the Banks party thereto and Barclays</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-11
to Form&nbsp;10-Q for quarter ended March&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(j) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment, dated as of August&nbsp;29, 1996, to
$200,000,000 364-Day Credit Agreement as of September
1, 1990, as amended, among Detroit Edison,
Renaissance, the Banks party thereto and Barclays
Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-13
to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(k) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment, dated as of September&nbsp;1, 1997, to
$200,000,000 Multi-Year Credit Agreement, dated as of
September&nbsp;1, 1993, as amended, among Detroit Edison,
Renaissance, the Banks Party thereto and Barclays
Bank PLC, New York Branch, as Agent. (Exhibit&nbsp;99-24
to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(l) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Seventh Amendment, dated as of August&nbsp;26, 1999, to
$200,000,000 364-Day Credit Agreement, dated as of
September&nbsp;1, 1993, as amended among The Detroit
Edison Company, Renaissance Energy Company, the Banks
parties thereto and Barclays Bank PLC, New York
branch as Agent. (Exhibit&nbsp;99-30 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(m) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
$200,000,000 Three-Year Credit Agreement, dated
September&nbsp;1, 1993, among Detroit Edison, Renaissance
and Barclays Bank, PLC, New York Branch, as Agent
(Exhibit&nbsp;99-13 to Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(n) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, dated as of September&nbsp;1, 1994, to
$200,000,000 Three-Year Credit Agreement, dated as of
September&nbsp;1, 1993, among The Detroit Edison Company,
Renaissance Energy Company, the Banks party thereto
and Barclays Bank, PLC, New York Branch, as Agent
(Exhibit&nbsp;99-20 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(o) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, dated as of March&nbsp;8, 1996, to
$200,000,000 Three-Year Credit Agreement, dated
September&nbsp;1, 1993, as amended among Detroit Edison,
Renaissance, the Banks party thereto and Barclays
Bank, PLC, New York Branch, as Agent (Exhibit&nbsp;99-12
to Form&nbsp;10-Q for quarter ended March&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(p) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment, dated as of September&nbsp;1, 1996, to
$200,000,000 Multi-Year (formerly Three-Year) Credit
Agreement, dated as of September&nbsp;1, 1993, as amended
among Detroit Edison, Renaissance, the Banks party
thereto and Barclays Bank, PLC, New York Branch, as
Agent (Exhibit&nbsp;99-14 to Form&nbsp;10-Q for quarter ended
September&nbsp;30, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(q) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment, dated as of August&nbsp;28, 1997, to
$200,000,000 364-Day Credit Agreement, dated as of
September&nbsp;1, 1990, as amended, among Detroit Edison,
Renaissance, the Banks Party thereto and</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Barclays
Bank PLC, New York Branch, as Agent. (Exhibit&nbsp;99-25
to Form&nbsp;10-Q for quarter ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(r) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Sixth Amendment, dated as of August&nbsp;27, 1998, to
$200,000,000 364-Day Credit Agreement dated as of
September&nbsp;1, 1990, as amended, among Detroit Edison,
Renaissance, the Banks party thereto and Barclays
Bank PLC, New York Branch, as agent. (Exhibit&nbsp;99-32
to Registration No.&nbsp;333-65765.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(s) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
1988 Amended and Restated Nuclear Fuel Heat
Purchase Contract, dated October&nbsp;4, 1988, between
Detroit Edison and Renaissance (Exhibit&nbsp;99-9 to
Registration No.&nbsp;33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(t) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment to 1988 Amended and Restated
Nuclear Fuel Heat Purchase Contract, dated as of
February&nbsp;1, 1990, between Detroit Edison and
Renaissance (Exhibit&nbsp;99-10 to Registration No.
33-50325).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(u) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Eighth Amendment, dated as of August&nbsp;26, 1999 to
1988 Amended and Restated Nuclear Fuel heat Purchase
Contract between Detroit Edison and Renaissance
Energy Company. (Exhibit&nbsp;99-31 to Form&nbsp;10-Q for
quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(v) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
U.S. $160,000,000 Standby Note Purchase Credit
Facility, dated as of October&nbsp;26, 1999, among Detroit
Edison, the Bank&#146;s signatory thereto, Barclays Bank
PLC, as Administrative Agent and Barclays Capital Inc.,
Lehman Brothers Inc. and Banc One Capital Markets,
Inc., as Remarketing Agents. (Exhibit&nbsp;99-29 to Form
10-Q for quarter ended September&nbsp;30, 1999.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(w) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Standby Note Purchase Credit Facility, dated as of
September&nbsp;12, 1997, among The Detroit Edison Company
and the Bank&#146;s Signatory thereto and The Chase
Manhattan Bank, as Administrative Agent, and Citicorp
Securities, Inc., Lehman Brokers, Inc., as
Remarketing Agents and Chase Securities, Inc. as
Arranger. (Exhibit&nbsp;999-26 to Form&nbsp;10-Q for quarter
ended September&nbsp;30, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(x) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Master Trust Agreement (&#147;Master Trust&#148;), dated as
of June&nbsp;30, 1994, between Detroit Edison and Fidelity
Management Trust Company relating to the Savings &#38;
Investment Plans (Exhibit&nbsp;4-167 to Form&nbsp;10-Q for
quarter ended June&nbsp;30, 1994).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(y) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
First Amendment, effective as of February&nbsp;1, 1995,
to Master Trust (Exhibit&nbsp;4-10 to Registration No.
333-00023).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(z) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Amendment, effective as of February&nbsp;1, 1995 to Master
Trust (Exhibit&nbsp;4-11 to Registration No.&nbsp;333-00023).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(aa) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Third Amendment, effective January&nbsp;1, 1996, to
Master Trust (Exhibit&nbsp;4-12 to Registration No.
333-00023).</FONT></TD>
</TR>
</TABLE>
</CENTER>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%" align="center">
<TR valign="bottom">
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="88%">&nbsp;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(bb) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fourth Amendment to Trust Agreement Between Fidelity
Management Trust Company and The Detroit Edison
Company (July&nbsp;1996). Exhibit&nbsp;4-185 to Form&nbsp;10-K for
year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(cc) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fifth Amendment to Trust Agreement Between Fidelity
Management Trust Company and The Detroit Edison
Company (December&nbsp;1997). Exhibit&nbsp;4-186 to Form&nbsp;10-K
for the year ended December&nbsp;31, 1997.)</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(dd) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust
for The Detroit Edison Company Savings Reparation Plan
(Exhibit&nbsp;99-1 to Form&nbsp;10-K for year ended December&nbsp;31,
1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(ee) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust
for The Detroit Edison Company Retirement Reparation
Plan (Exhibit&nbsp;99-2 to Form&nbsp;10-K for year ended
December&nbsp;31,1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(ff) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The
Detroit Edison Company Management Supplemental Benefit
Plan (Exhibit&nbsp;99-3 to Form&nbsp;10-K for year ended December&nbsp;31,
1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(gg) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust
for The Detroit Edison Company Benefit Equalization
Plan (Exhibit&nbsp;99-4 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(hh) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor Trust for The
Detroit Edison Company Plan for Deferring the Payment of
Directors&#146; Fees (Exhibit&nbsp;99-5 to Form&nbsp;10-K for year ended
December&nbsp;31, 1996.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99(ii) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Detroit Edison Company Irrevocable Grantor
Trust for The DTE DTE Energy Company Retirement Plan
for Non-Employee Directors (Exhibit&nbsp;99-6 to Form&nbsp;10-K
for year ended December&nbsp;31, 1996).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
<TD valign="top"><FONT size="2">99 (jj) -</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
DTE Energy Company Irrevocable Grantor Trust for The
DTE Energy Company Plan for Deferring the Payment of Directors&#146;
Fees (Exhibit&nbsp;99-7 to Form&nbsp;10-K for year ended December&nbsp;31,
1996).</FONT></TD>
</TR>
</TABLE>
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<P>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
<TD width="1%" align="left">*</TD>
<TD width="3%">&nbsp;</TD>
<TD width="96%">Denotes management contract or compensatory plan or arrangement
required to be entered as an exhibit to this report.</TD>
</TR>
</TABLE>

<P align="center">&nbsp;

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