1 EXHIBIT 12-20 DTE ENERGY COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Nine Months Year Ended December 31 Ended ------------------------------------ 9/30/99 1998 1997 1996 ------- ---- ---- ---- (Millions, except for ratio and percent) Net income............................................. $ 386 $ 443 $ 417 $ 309 ----------- ----------- ----------- ---------- Taxes based on income: Income taxes........................................ 48 154 257 221 Municipal and state................................. 2 3 4 3 ----------- ----------- ----------- ---------- Total taxes based on income....................... 50 157 261 224 ----------- ----------- ----------- ---------- Fixed charges: Interest expense.................................... 260 319 297 291 Allowance for funds used during construction...................................... 4 - - - Interest factor of rents............................ 26 34 34 34 Preferred stock dividend factor..................... - 7 18 26 ----------- ----------- ----------- ---------- Total fixed charges............................... 290 360 349 351 ----------- ----------- ----------- ---------- Earnings before taxes based on income and fixed charges................................... $ 726 $ 960 $ 1,027 $ 884 =========== =========== =========== ========== Ratio of earnings to fixed charges 2.50 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 =========== =========== =========== ==========