1 EXHIBIT 12-25 THE DETROIT EDISON COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Six Months Year Ended December 31 Ended ------------------------------------ 6/30/00 1999 1998 1997 ------- ---- ---- ---- (Millions, except for ratio) Net income............................................. $ 188 $ 434 $ 418 $ 417 --------- --------- ---------- -------- Taxes based on income: Income taxes........................................ 101 211 260 288 Municipal and state................................. 1 3 3 4 --------- --------- ---------- -------- Total taxes based on income....................... 102 214 263 292 --------- --------- ---------- -------- Fixed charges: Interest expense.................................... 139 284 278 282 Allowance for funds used during construction...................................... - 4 - - Interest factor of rents............................ 17 34 34 34 --------- --------- ---------- -------- Total fixed charges............................... 156 322 312 316 ========= ========= ========== ======== Earnings before taxes based on income and fixed charges................................... $ 446 $ 970 $ 933 $ 1,025 ========= ========= ========== ======== Ratio of earnings to fixed charges 2.86 3.01 3.18 3.24