1
EXHIBIT 10.7
1997 EXECUTIVE INCENTIVE PLAN (EIP)
CATEGORY WEIGHT MEASURE LEVEL 1 LEVEL 2
Fermi 33% Fermi-Plant Performance INPO 2 and NRC 2 Ratings INPO 3 and no NRC 3 Ratings
Model - Industry standards of Solid - An improving trend
excellence are met in many areas. is indicated with overall
No significant weaknesses noted. performance generally in
keeping with high standards
required in nuclear power
Recodification 33% Restructuring including Approval of legislation which MPSC approval of a
recovery of stranded costs establishes a comprehensive restructuring plan in
electric utility restructuring substantial agreement with
plan in Michigan that provides (or functionally equivalent
for recovery of a substantial to ) the restructuring plan
portion of Deco's stranded costs proposed by the MPSC Staff
(incl investment in Fermi 2, on December 20, 1996.
regulatory assets and PA-2
contracts)
Note: "Substantial shall be as determined by the Board.
Business Growth
16.50% Earnings $0.11 $0.08
16.50% Establishment of New Businesses Board discretion on level achieved
(See descriptions on next page)
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Executive Incentive Plan (contd)
Development of New Businesses
- - Establish a power marketing subsidiary (personnel, systems/procedures,
strategy, etc.) by year end having progressed significantly towards having
this subsidiary recognized as an important emerging major player in our
region.
- - Establish a coal marketing/trading subsidiary - both the personnel and the
strategy - by year end and take important first steps toward establishing
DTE as a major national player in coal marketing, trading, transportation,
and services.
- - Establish a natural gas marketing capability within CEB that complements
our electric power marketing initiative. The organization (likely in
concert with MCN) and strategy should be in place and we should be
recognized by year end as an important emerging electric/gas provider in
the Great Lakes region.
- - Make substantial progress on the strategy for DTE's generating assets and
marry this strategy with DTE's coal marketing strategy. This effort will
likely involve work with specialty consulting firms as well as numberous
discussions with potential partners. This strategy should also deal with
market power issues that emerge from the record discussions.
- - Establish Edison America as our unregulated mass market electric, gas and
communications marketing subsidiary, with the business plan completed and
accepted in the second quarter and by year end have the subsidiary as a
major player in the unregulated Michigan market and taking the first steps
in being a player in the emerging regional/national market.