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EXHIBIT 12-11
THE DETROIT EDISON 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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(Thousands, except for ratio and percent)
Net income............................................. $ 417 $ 328 $ 434
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Taxes based on income:
Current income taxes................................ 308 224 221
Deferred taxes - net................................ (6) 16 79
Investment tax credit adjustments - net............. (14) (15) (17)
Municipal and state................................. 4 3 3
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Total taxes based on income..................... 292 228 286
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Fixed charges:
Interest on long-term debt.......................... 262 275 275
Amortization of debt discount, premium
and expense....................................... 11 12 11
Other interest...................................... 9 4 10
Interest factor of rents............................ 34 34 29
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Total fixed charges............................. 316 325 325
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Earnings before taxes based on income
and fixed charges................................... $ 1,025 $ 881 $ 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................... 1.70 1.70 1.66
Dividend factor for amount not deductible.............. 17 24 43
Amount deductible...................................... 2 2 2
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Total preferred stock dividend factor........... 19 26 45
Total fixed charges............................. 316 325 325
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Total fixed charges and preferred
stock dividends............................... $ 335 $ 351 $ 370
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Ratio of earnings to fixed charges and
preferred stock dividends........................... 3.06 2.51 2.82