1 EXHIBIT 12-8 DTE ENERGY COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Year Ended December 31 ------------------------------------------------------ 1997 1996 1995 ---- ---- ---- (Millions, except for ratio) Net income............................................. $ 429 $ 325 $ 434 --------------- ---------------- --------------- Taxes based on income: Current income taxes................................ 267 219 221 Deferred taxes - net................................ 5 17 79 Investment tax credit adjustments - net............. (15) (15) (17) Municipal and state................................. 4 3 3 --------------- ---------------- --------------- Total taxes based on income....................... 261 224 286 --------------- ---------------- --------------- Fixed charges: Interest on long-term debt.......................... 275 275 275 Amortization of debt discount, premium and expense....................................... 11 12 11 Other interest...................................... 11 4 10 Interest factor of rents............................ 34 34 29 --------------- ---------------- --------------- Total fixed charges............................... 331 325 325 --------------- ---------------- --------------- Earnings before taxes based on income and fixed charges................................... $ 1,021 $ 874 $ 1,045 =============== ================ =============== Ratio of earnings to fixed charges..................... 3.08 2.69 3.21