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EXHIBIT 12-3
THE DETROIT EDISON COMPANY AND SUBSIDARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED AND PREFERENCE STOCK DIVIDENDS
Year Ended December 31
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1995 1994 1993
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(Thousands, except for ratio and percent)
Net income .................................. $ 433,651 $ 419,909 $ 521,903
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Taxes based on income:
Current income taxes ....................... 220,730 169,381 217,363
Deferred taxes - net ....................... 78,817 110,243 99,801
Investment tax credit adjustments - net .... (16,294) (12,826) (14,227)
Municipal and state ........................ 2,627 2,566 3,373
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Total taxes based on income ............ 285,880 269,364 306,310
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Fixed charges:
Interest on long-term debt ................. 275,599 273,763 325,194
Amortization of debt discount, premium
and expense .............................. 11,312 10,832 9,114
Other interest ............................. 9,666 11,170 4,928
Interest factor of rents ................... 29,000 28,000 29,200
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Total fixed charges .................... 325,577 323,765 368,436
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Earnings before taxes based on income
and fixed charges .......................... $1,045,108 $1,013,038 $1,196,649
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Preferred and preference stock
dividends .................................. $ 27,737 $ 29,640 $ 30,837
Dividends meeting requirement of
IRC Section 247 ............................ 3,870 3,870 4,383
Percent deductible for income tax purposes .. 40.00% 40.00% 40.00%
Amount deductible ........................... 1,548 1,548 1,753
Amount not deductible ....................... 26,189 28,092 29,084
Ratio of pretax income to net income ........ 1.66 1.64 1.58
Dividend factor for amount not deductible ... 43,474 46,071 45,953
Amount deductible ........................... 1,548 1,548 1,753
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Total preferred and preference stock
dividend factor ....................... 45,022 47,619 47,706
Total fixed charges .................... 325,577 323,765 368,436
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Total fixed charges and preferred
and preference stock dividends ........ $ 370,599 $ 371,384 $ 416,142
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Ratio of earnings to fixed charges and
preferred and preference stock
dividends .................................. 2.82 2.73 2.88