1
EXHIBIT 10-18
1998 Executive Incentive Plan Measures
MEASURE WEIGHT LEVEL 1 LEVEL 2
Fermi-Plant Performance 30% Consistently excellent Continued improving
performance as indicated by a performance as indicated by a
capacity factor of 79%, capacity factor of 75.5%,
regulatory performance regulatory performance
(Licensee Event Reports and (Licensee Event Reports and
Notices of Violation) in the top Notices of Violation) in the
quartile of plants in the region, second quartile of plants in the
and completion of the region, and completion of the
Operations Excellence Plan. Operations Excellence Plan.
Restructuring 30% Approval by the legislature and MPSC Approval by the MPSC of a
of an electric utility restructuring plan for restructuring plan that gives Detroit
Michigan that gives Detroit Edison the Edison the opportunity to recover a
opportunity to recover essentially all significant portion of its stranded
stranded costs and positions Detroit costs and does not materially limit
Edison to compete effectively in the Detroit Edison's ability to compete in
competitive marketplace. the competitive marketplace.
Gallup Survey: Employee 10% Baseline set by end of 1st Baseline set by end of 1st
Satisfaction/Organization Climate quarter. Level of improvement quarter. Level of improvement
at the CEO/Board's discretion. at the CEO/Board's discretion.
Y2000 10% Complete 95% of milestones in Complete 85% of milestones in
1998 Y2000 work plan and no 1998 Y2000 work plan and no
planned completion date for planned completion date for
2
any critical system beyond any critical system beyond
4/30/99 6/30/99
Business Growth:
Earnings - Non-Utility Subs (minus 15% $.30 $.25
holding company)
New Business - Continue to develop the 5% Board discretion on level
business concept and business plan achieved
for operational excellence driven LDC
products and services. Edison
America to become an effective
competitor in the Michigan and
Pennsylvania choice programs.
Achieve or exceed budgeted
profitability.