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EXHIBIT 12-6
DTE ENERGY COMPANY AND SUBSIDARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Year Ended December 31
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1996 1995 1994
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(Thousands, except for ratio and percent)
Net income .................................. $325,311 $ 433,651 $ 419,909
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Taxes based on income:
Current income taxes ....................... 219,143 220,730 169,381
Deferred taxes - net ....................... 16,949 78,817 110,243
Investment tax credit adjustments - net .... (15,054) (16,294) (12,826)
Municipal and state ........................ 3,348 2,627 2,566
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Total taxes based on income ............ 224,386 285,880 269,364
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Fixed charges:
Interest on long-term debt ................. 275,166 275,599 273,763
Amortization of debt discount, premium
and expense .............................. 11,883 11,312 10,832
Other interest ............................. 4,218 9,666 11,170
Interest factor of rents ................... 34,000 29,000 28,000
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Total fixed charges .................... 325,267 325,577 323,765
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Earnings before taxes based on income
and fixed charges .......................... $874,964 $1,045,108 $1,013,038
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Preferred stock dividends ................... $ 16,015 $ 27,737 $ 29,640
Dividends meeting requirement of
IRC Section 247 ............................ 3,870 3,870 3,870
Percent deductible for income tax purposes .. 40.00% 40.00% 40.00%
Amount deductible ........................... 1,548 1,548 1,548
Amount not deductible ....................... 14,467 26,189 28,092
Ratio of pretax income to net income ........ 1.69 1.66 1.64
Dividend factor for amount not deductible ... 24,449 43,474 46,071
Amount deductible ........................... 1,548 1,548 1,548
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Total preferred stock dividend factor .. 25,997 45,022 47,619
Total fixed charges .................... 325,267 325,577 323,765
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Total fixed charges and preferred
stock dividends ....................... $351,264 $ 370,599 $ 371,384
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Ratio of earnings to fixed charges and
preferred stock dividends .................. 2.49 2.82 2.73