1 EXHIBIT 12-16 DTE ENERGY COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Three Months Year Ended December 31 Ended ------------------------------------------ 3/31/99 1998 1997 1996 ------- ---- ---- ---- (Millions, except for ratio and percent) Net income............................................. $ 115 $ 443 $ 417 $ 309 ----------- ----------- ----------- ----------- Taxes based on income: Income taxes........................................ 14 154 257 221 Municipal and state................................. 1 3 4 3 ---------- ----------- ----------- ----------- Total taxes based on income....................... 15 157 261 224 ---------- ----------- ----------- ----------- Fixed charges: Interest expense.................................... 83 319 297 291 Allowance for funds used during construction...................................... 2 - - - Interest factor of rents............................ 9 34 34 34 Preferred stock dividend factor..................... - 7 18 26 ---------- ----------- ----------- ----------- Total fixed charges............................... 94 360 349 351 ---------- ----------- ----------- ----------- Earnings before taxes based on income and fixed charges................................... $ 224 $ 960 $ 1,027 $ 884 =========== =========== =========== =========== Ratio of earnings to fixed charges 2.38 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................... - 1.351 .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 =========== =========== =========== ===========