1 EXHIBIT 12-14 DTE ENERGY COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Year Ended December 31 ----------------------------------------------- 1998 1997 1996 ---- ---- ---- (Millions, except for ratio and percent) Net income.................................... $ 443 $ 417 $ 309 ---------- ----------- ------------ Taxes based on income: Current income taxes....................... 143 267 219 Deferred taxes - net....................... 26 5 17 Investment tax credit adjustments - net.... (15) (15) (15) Municipal and state........................ 3 4 3 ---------- ----------- ------------ Total taxes based on income.............. 157 261 224 ---------- ----------- ------------ Fixed charges: Interest on long-term debt................. 279 275 275 Amortization of debt discount, premium and expense.............................. 11 11 12 Other interest............................. 29 11 4 Interest factor of rents................... 34 34 34 Preferred stock dividend factor............ 7 18 26 ---------- ----------- ------------ Total fixed charges........................... 360 349 351 ---------- ----------- ------------ Earnings before taxes based on income and fixed charges.......................... $ 960 $ 1,027 $ 884 =========== =========== ============ Ratio of earnings to fixed charges............ 2.67 2.94 2.52 Preferred stock dividends..................... $ 6 $ 12 $ 16 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......................... 4 10 14 Ratio of pretax income to net income.......... 1.35 1.61 1.69 Dividend factor for amount not deductible..... 5 16 24 Amount deductible............................. 2 2 2 ----------- ----------- ------------ Total preferred stock dividend factor.. $ 7 $ 18 $ 26 =========== =========== ============