1 EXHIBIT 12-21 DTE ENERGY COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Year Ended December 31 ------------------------------------------------------ 1999 1998 1997 ---- ---- ---- (Millions, except for ratio and percent) Net income............................................. $ 483 $ 443 $ 417 --------------- ---------------- --------------- Taxes based on income: Current income taxes................................ 144 143 267 Deferred taxes - net................................ (73) 26 5 Investment tax credit adjustments - net............. (11) (15) (15) Municipal and state................................. 3 3 4 --------------- ---------------- --------------- Total taxes based on income....................... 63 157 261 --------------- ---------------- --------------- Fixed charges: Interest on long-term debt.......................... 279 279 275 Amortization of debt discount, premium and expense....................................... 18 11 11 Other interest...................................... 47 29 11 Interest factor of rents............................ 34 34 34 Preferred stock dividend factor..................... - 7 18 -------------- --------------- -------------- Total fixed charges.................................... 378 360 349 -------------- --------------- -------------- Earnings before taxes based on income and fixed charges................................... $ 924 $ 960 $ 1,027 =============== ================ =============== Ratio of earnings to fixed charges..................... 2.44 2.67 2.94 Preferred stock dividends.............................. $ - $ 6 $ 12 Dividends meeting requirement of IRC Section 247..................................... N/A 4 4 Percent deductible for income tax purposes N/A 40.00% 40.00% Amount deductible...................................... N/A 2 2 Amount not deductible.................................. N/A 4 10 Ratio of pretax income to net income................... N/A 1.35 1.61 Dividend factor for amount not deductible.............. N/A 5 16 Amount deductible...................................... N/A 2 2 -------------- --------------- -------------- Total preferred stock dividend factor........... $ N/A $ 7 $ 18 ============== =============== ==============