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EXHIBIT 12-10
DTE ENERGY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Year Ended December 31
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1997 1996 1995
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(Millions, except for ratio and percent)
Net income............................................. $ 429 $ 325 $ 434
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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
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Total taxes based on income..................... 261 224 286
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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
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Total fixed charges............................. 331 325 325
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Earnings before taxes based on income
and fixed charges................................... $ 1,021 $ 874 $ 1,045
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Preferred stock dividends.............................. $ 12 $ 16 $ 28
Dividends meeting requirement of
IRC Section 247..................................... 4 4 4
Percent deductible for income tax purposes............. 40.00% 40.00% 40.00%
Amount deductible...................................... 2 2 2
Amount not deductible.................................. 10 14 26
Ratio of pretax income to net income................... 1.61 1.69 1.66
Dividend factor for amount not deductible.............. 16 24 43
Amount deductible...................................... 2 2 2
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Total preferred stock dividend factor........... 18 26 45
Total fixed charges............................. 331 325 325
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Total fixed charges and preferred
stock dividends............................... $ 349 $ 351 $ 370
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Ratio of earnings to fixed charges and
preferred stock dividends........................... 2.93 2.49 2.82