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EXHIBIT 12-23
THE DETROIT EDISON COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Year Ended December 31
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1999 1998 1997
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(Millions, except for ratio and percent)
Net income ......................................................... $ 434 $ 418 $ 417
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Taxes based on income:
Current income taxes .............................................. 282 280 308
Deferred taxes - net .............................................. (60) (5) (6)
Investment tax credit adjustments - net............................ (11) (15) (14)
Municipal and state ............................................... 3 3 4
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Total taxes based on income ..................................... 214 263 292
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Fixed charges:
Interest on long-term debt ........................................ 252 254 262
Amortization of debt discount, premium and expense ................ 17 11 11
Other interest .................................................... 19 13 9
Interest factor of rents .......................................... 34 34 34
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Total fixed charges ............................................. 322 312 316
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Earnings before taxes based on income and fixed charges ............. $ 970 $ 993 $ 1,025
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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 1.63 1.70
Dividend factor for amount not deductible ........................... N/A 7 17
Amount deductible ................................................... N/A 2 2
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Total preferred stock dividend factor ........................... N/A 9 19
Total fixed charges ............................................. 322 312 316
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Total fixed charges and preferred stock dividends ............... $ 322 $ 321 $ 335
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Ratio of earnings to fixed charges and preferred stock dividends .... 3.01 3.09 3.06