1 EXHIBIT 12-21 THE DETROIT EDISON 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) Net income............................................. $ 349 $ 418 $ 417 $ 328 ----------- ----------- ---------- -------- Taxes based on income: Income taxes........................................ 164 260 288 225 Municipal and state................................. 2 3 4 3 ----------- ----------- ---------- -------- Total taxes based on income....................... 166 263 292 228 ----------- ----------- ---------- -------- Fixed charges: Interest expense.................................... 219 278 282 291 Allowance for funds used during construction...................................... 4 - - - Interest factor of rents............................ 26 34 34 34 ----------- ----------- ---------- -------- Total fixed charges............................... 249 312 316 325 =========== =========== ========== ======== Earnings before taxes based on income and fixed charges................................... $ 764 $ 933 $ 1,025 $ 881 =========== =========== ========== ======== Ratio of earnings to fixed charges 3.07 3.18 3.24 2.71