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EXHIBIT 12-16
THE DETROIT EDISON COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Year Ended December 31
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1998 1997 1996
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(Millions, except for ratio and percent)
Net income.................................... $ 418 $ 417 $ 328
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Taxes based on income:
Current income taxes....................... 280 308 224
Deferred taxes - net....................... (5) (6) 16
Investment tax credit adjustments - net.... (15) (14) (15)
Municipal and state........................ 3 4 3
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Total taxes based on income............ 263 292 228
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Fixed charges:
Interest on long-term debt................. 254 262 275
Amortization of debt discount, premium
and expense.............................. 11 11 12
Other interest............................. 13 9 4
Interest factor of rents................... 34 34 34
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Total fixed charges.................... 312 316 325
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Earnings before taxes based on income
and fixed charges.......................... $ 993 $ 1,025 $ 881
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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.......... 1.63 1.70 1.70
Dividend factor for amount not deductible..... 7 17 24
Amount deductible............................. 2 2 2
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Total preferred stock dividend factor.. 9 19 26
Total fixed charges.................... 312 316 325
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Total fixed charges and preferred
stock dividends...................... $ 321 $ 335 $ 351
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Ratio of earnings to fixed charges and
preferred stock dividends.................. 3.09 3.06 2.51