<PAGE>   1
                                                                   EXHIBIT 4-205

                                  EXECUTED IN  _____
                                  COUNTERPARTS OF WHICH
                                  THIS IS COUNTERPART NO.  _  .

                           THE DETROIT EDISON COMPANY
                              (2000 Second Avenue,
                            Detroit, Michigan 48226)

                                       TO
                             BANKERS TRUST COMPANY
                              (Four Albany Street,
                           New York, New York 10015)

                                                  AS TRUSTEE

                            ------------------------

                                   INDENTURE
                          Dated as of August 15, 1999

                            ------------------------

                   SUPPLEMENTAL TO MORTGAGE AND DEED OF TRUST
                          DATED AS OF OCTOBER 1, 1924

                                 PROVIDING FOR

                   (A) GENERAL AND REFUNDING MORTGAGE BONDS,
                           FLOATING RATE 1999 SERIES D
                             DUE SEPTEMBER 17, 2001

                                      AND

                         (B) RECORDING AND FILING DATA
<PAGE>   2
                                        i

                               TABLE OF CONTENTS*

                            ------------------------

<TABLE>
<CAPTION>
                                                              PAGE
                                                              ----
<S>                                                           <C>
PARTIES.....................................................    1
RECITALS
  Original Indenture and Supplementals......................    1
  Issue of Bonds under Indenture............................    1
  Bonds heretofore issued...................................    1
  Reason for creation of new series.........................    5
  Bonds to be Floating Rate 1999 Series D...................    5
  Further Assurance.........................................    5
  Authorization of Supplemental Indenture...................    5
  Consideration for Supplemental Indenture..................    5
                                    PART I.
CREATION OF THREE HUNDRED TWENTY-THIRD
SERIES OF BONDS
GENERAL AND REFUNDING MORTGAGE BONDS,
FLOATING RATE 1999 SERIES D
Sec. 1. Certain terms of Bonds of Floating Rate 1999 Series
  D.........................................................    6
Sec. 2. Redemption of Bonds of Floating Rate 1999 Series
  D.........................................................    8
Sec. 3. Calculation Agent...................................    9
Sec. 4. Form of Bonds of Floating Rate 1999 Series D........   11
        Form of Trustee's Certificate.......................   14
                                    PART II.
RECORDING AND FILING DATA
Recording and filing of Original Indenture..................   15
Recording and filing of Supplemental Indentures.............   15
Recording of Certificates of Provision for Payment..........   20
                                   PART III.
THE TRUSTEE
Terms and conditions of acceptance of trust by Trustee......   20
                                    PART IV.
MISCELLANEOUS
Confirmation of Section 318(c) of Trust Indenture Act.......   20
Execution in Counterparts...................................   20
Testimonium.................................................   21
Execution...................................................   21
Acknowledgement of execution by Company.....................   21
Acknowledgement of execution by Trustee.....................   22
Affidavit as to consideration and good faith................   23
</TABLE>

------------------------
* This Table of Contents shall not have any bearing upon the interpretation of
  any of the terms or provisions of this Indenture.
<PAGE>   3
                                        1

PARTIES.           SUPPLEMENTAL INDENTURE, dated as of the fifteenth day of
                 August, in the year one thousand nine hundred and ninety-nine,
                 between THE DETROIT EDISON COMPANY, a corporation organized and
                 existing under the laws of the State of Michigan and a
                 transmitting utility (hereinafter called the "Company"), party
                 of the first part, and BANKERS TRUST COMPANY, a corporation
                 organized and existing under the laws of the State of New York,
                 having its corporate trust office at Four Albany Street, in the
                 Borough of Manhattan, The City and State of New York, as
                 Trustee under the Mortgage and Deed of Trust hereinafter
                 mentioned (hereinafter called the "Trustee"), party of the
                 second part.

ORIGINAL
INDENTURE AND
SUPPLEMENTALS.     WHEREAS, the Company has heretofore executed and delivered
                 its Mortgage and Deed of Trust (hereinafter referred to as the
                 "Original Indenture"), dated as of October 1, 1924, to the
                 Trustee, for the security of all bonds of the Company
                 outstanding thereunder, and pursuant to the terms and
                 provisions of the Original Indenture, indentures dated as of,
                 respectively, June 1, 1925, August 1, 1927, February 1, 1931,
                 June 1, 1931, October 1, 1932, September 25, 1935, September 1,
                 1936, November 1, 1936, February 1, 1940, December 1, 1940,
                 September 1, 1947, March 1, 1950, November 15, 1951, January
                 15, 1953, May 1, 1953, March 15, 1954, May 15, 1955, August 15,
                 1957, June 1, 1959, December 1, 1966, October 1, 1968, December
                 1, 1969, July 1, 1970, December 15, 1970, June 15, 1971,
                 November 15, 1971, January 15, 1973, May 1, 1974, October 1,
                 1974, January 15, 1975, November 1, 1975, December 15, 1975,
                 February 1, 1976, June 15, 1976, July 15, 1976, February 15,
                 1977, March 1, 1977, June 15, 1977, July 1, 1977, October 1,
                 1977, June 1, 1978, October 15, 1978, March 15, 1979, July 1,
                 1979, September 1, 1979, September 15, 1979, January 1, 1980,
                 April 1, 1980, August 15, 1980, August 1, 1981, November 1,
                 1981, June 30, 1982, August 15, 1982, June 1, 1983, October 1,
                 1984, May 1, 1985, May 15, 1985, October 15, 1985, April 1,
                 1986, August 15, 1986, November 30, 1986, January 31, 1987,
                 April 1, 1987, August 15, 1987, November 30, 1987, June 15,
                 1989, July 15, 1989, December 1, 1989, February 15, 1990,
                 November 1, 1990, April 1, 1991, May 1, 1991, May 15, 1991,
                 September 1, 1991, November 1, 1991, January 15, 1992, February
                 29, 1992, April 15, 1992, July 15, 1992, July 31, 1992,
                 November 30, 1992, December 15, 1992, January 1, 1993, March 1,
                 1993, March 15, 1993, April 1, 1993, April 26, 1993, May 31,
                 1993, June 30, 1993, June 30, 1993, September 15, 1993, March
                 1, 1994, June 15, 1994, August 15, 1994, December 1, 1994,
                 August 1, 1995 and August 1, 1999 supplemental to the Original
                 Indenture, have heretofore been entered into between the
                 Company and the Trustee (the Original Indenture and all
                 indentures supplemental thereto together being hereinafter
                 sometimes referred to as the "Indenture"); and

ISSUE OF BONDS
UNDER INDENTURE.   WHEREAS, the Indenture provides that said bonds shall be
                 issuable in one or more series, and makes provision that the
                 rates of interest and dates for the payment thereof, the date
                 of maturity or dates of maturity, if of serial maturity, the
                 terms and rates of optional redemption (if redeemable), the
                 forms of registered bonds without coupons of any series and any
                 other provisions and agreements in respect thereof, in the
                 Indenture provided and permitted, as the Board of Directors may
                 determine, may be expressed in a supplemental indenture to be
                 made by the Company to the Trustee thereunder; and

BONDS HERETOFORE
ISSUED.            WHEREAS, bonds in the principal amount of Eight billion, four
                 hundred forty-seven million seven hundred fifty-two thousand
                 dollars ($8,447,752,000) have heretofore been issued under the
                 indenture as follows, viz:

<TABLE>
                        <C>        <S>                              <C>  <C>               <C>
                              (1)  Bonds of Series A                --   Principal Amount  $26,016,000,
                              (2)  Bonds of Series B                --   Principal Amount  $23,000,000,
                              (3)  Bonds of Series C                --   Principal Amount  $20,000,000,
                              (4)  Bonds of Series D                --   Principal Amount  $50,000,000,
                              (5)  Bonds of Series E                --   Principal Amount  $15,000,000,
                              (6)  Bonds of Series F                --   Principal Amount  $49,000,000,
                              (7)  Bonds of Series G                --   Principal Amount  $35,000,000,
                              (8)  Bonds of Series H                --   Principal Amount  $50,000,000,
</TABLE>
<PAGE>   4
                                        2
<TABLE>
                        <C>        <S>                              <C>  <C>               <C>
                              (9)  Bonds of Series I                --   Principal Amount  $60,000,000,
                             (10)  Bonds of Series J                --   Principal Amount  $35,000,000,
                             (11)  Bonds of Series K                --   Principal Amount  $40,000,000,
                             (12)  Bonds of Series L                --   Principal Amount  $24,000,000,
                             (13)  Bonds of Series M                --   Principal Amount  $40,000,000,
                             (14)  Bonds of Series N                --   Principal Amount  $40,000,000,
                             (15)  Bonds of Series O                --   Principal Amount  $60,000,000,
                             (16)  Bonds of Series P                --   Principal Amount  $70,000,000,
                             (17)  Bonds of Series Q                --   Principal Amount  $40,000,000,
                             (18)  Bonds of Series W                --   Principal Amount  $50,000,000,
                             (19)  Bonds of Series AA               --   Principal Amount  $100,000,000,
                             (20)  Bonds of Series BB               --   Principal Amount  $50,000,000,
                             (21)  Bonds of Series CC               --   Principal Amount  $50,000,000,
                             (22)  Bonds of Series UU               --   Principal Amount  $100,000,000,
                          (23-31)  Bonds of Series DDP Nos. 1-9     --   Principal Amount  $14,305,000,
                          (32-45)  Bonds of Series FFR Nos. 1-14    --   Principal Amount  $45,600,000,
                          (46-67)  Bonds of Series GGP Nos. 1-22    --   Principal Amount  $42,300,000,
                             (68)  Bonds of Series HH               --   Principal Amount  $50,000,000,
                          (69-90)  Bonds of Series IIP Nos. 1-22    --   Principal Amount  $3,750,000,
                          (91-98)  Bonds of Series JJP Nos. 1-8     --   Principal Amount  $6,850,000,
                         (99-107)  Bonds of Series KKP Nos. 1-9     --   Principal Amount  $34,890,000,
                        (108-122)  Bonds of Series LLP Nos. 1-15    --   Principal Amount  $8,850,000,
                        (123-143)  Bonds of Series NNP Nos. 1-21    --   Principal Amount  $47,950,000,
                        (144-161)  Bonds of Series OOP Nos. 1-18    --   Principal Amount  $18,880,000,
                        (162-180)  Bonds of Series QQP Nos. 1-19    --   Principal Amount  $13,650,000,
                        (181-195)  Bonds of Series TTP Nos. 1-15    --   Principal Amount  $3,800,000,
                            (196)  Bonds of 1980 Series A           --   Principal Amount  $50,000,000,
                        (197-221)  Bonds of 1980 Series CP Nos.
                                   1-25                             --   Principal Amount  $35,000,000,
                        (222-232)  Bonds of 1980 Series DP Nos.
                                   1-11                             --   Principal Amount  $10,750,000,
                        (233-248)  Bonds of 1981 Series AP Nos.
                                   1-16                             --   Principal Amount  $124,000,000,
                            (249)  Bonds of 1985 Series A           --   Principal Amount  $35,000,000,
                            (250)  Bonds of 1985 Series B           --   Principal Amount  $50,000,000,
                            (251)  Bonds of Series PP               --   Principal Amount  $70,000,000,
                            (252)  Bonds of Series RR               --   Principal Amount  $70,000,000,
                            (253)  Bonds of Series EE               --   Principal Amount  $50,000,000,
                        (254-255)  Bonds of Series MMP and MMP No.
                                   2                                --   Principal Amount  $5,430,000,
                            (256)  Bonds of Series T                --   Principal Amount  $75,000,000,
                            (257)  Bonds of Series U                --   Principal Amount  $75,000,000,
                            (258)  Bonds of 1986 Series B           --   Principal Amount  $100,000,000,
                            (259)  Bonds of 1987 Series D           --   Principal Amount  $250,000,000,
                            (260)  Bonds of 1987 Series E           --   Principal Amount  $150,000,000,
                            (261)  Bonds of 1987 Series C           --   Principal Amount  $225,000,000,
                            (262)  Bonds of Series V                --   Principal Amount  $100,000,000,
                            (263)  Bonds of Series SS               --   Principal Amount  $150,000,000,
                            (264)  Bonds of 1980 Series B           --   Principal Amount  $100,000,000,
                            (265)  Bonds of 1986 Series C           --   Principal Amount  $200,000,000,
                            (266)  Bonds of 1986 Series A           --   Principal Amount  $200,000,000,
                            (267)  Bonds of 1987 Series B           --   Principal Amount  $175,000,000,
                            (268)  Bonds of Series X                --   Principal Amount  $100,000,000,
                            (269)  Bonds of 1987 Series F           --   Principal Amount  $200,000,000,
                            (270)  Bonds of 1987 Series A           --   Principal Amount  $300,000,000,
                            (271)  Bonds of Series Y                --   Principal Amount  $60,000,000,
                            (272)  Bonds of Series Z                --   Principal Amount  $100,000,000,
                            (273)  Bonds of 1989 Series A           --   Principal Amount  $300,000,000,
</TABLE>
<PAGE>   5
                                        3
<TABLE>
                        <C>        <S>                              <C>  <C>               <C>
                            (274)  Bonds of 1984 Series AP          --   Principal Amount  $2,400,000,
                            (275)  Bonds of 1984 Series BP          --   Principal Amount  $7,750,000,
                            (276)  Bonds of Series R                --   Principal Amount  $100,000,000,
                            (277)  Bonds of Series S                --   Principal Amount  $150,000,000,
                            (278)  Bonds of 1993 Series D           --   Principal Amount  $100,000,000,
</TABLE>

                 all of which have either been retired and cancelled, or no
                 longer represent obligations of the Company, having been called
                 for redemption and funds necessary to effect the payment,
                 redemption and retirement thereof having been deposited with
                 the Trustee as a special trust fund to be applied for such
                 purpose;

                 (279-284) Bonds of Series KKP Nos. 10-15 in the principal
                 amount of One hundred seventy-nine million five hundred ninety
                 thousand dollars ($179,590,000), all of which are outstanding
                 at the date hereof;

                 (285) Bonds of 1989 Series BP in the principal amount of
                 Sixty-six million five hundred sixty-five thousand dollars
                 ($66,565,000), all of which are outstanding at the date hereof;

                 (286) Bonds of 1990 Series A in the principal amount of One
                 hundred ninety-four million six hundred forty-nine thousand
                 dollars ($194,649,000) of which Sixty-two million seven hundred
                 ninety thousand dollars ($62,790,000) principal amount have
                 heretofore been retired and One hundred thirty-one million
                 eight hundred fifty-nine thousand dollars ($131,859,000)
                 principal amount are outstanding at the date hereof;

                 (287) Bonds of 1990 Series B in the principal amount of Two
                 hundred fifty-six million nine hundred thirty-two thousand
                 dollars ($256,932,000) of which Ninety-five million one hundred
                 sixty thousand dollars ($95,160,000) principal amount have
                 heretofore been retired and One hundred sixty-one million seven
                 hundred seventy-two thousand dollars ($161,772,000) principal
                 amount are outstanding at the date hereof;

                 (288) Bonds of 1990 Series C in the principal amount of
                 Eighty-five million four hundred seventy-five thousand dollars
                 ($85,475,000) of which Thirty-four million one hundred ninety
                 thousand dollars ($34,190,000) principal amount have heretofore
                 been retired and Fifty-one million two hundred eighty-five
                 thousand dollars ($51,285,000) principal amount are outstanding
                 at the date hereof;

                 (289) Bonds of 1991 Series AP in the principal amount of
                 Thirty-two million three hundred seventy-five thousand dollars
                 ($32,375,000), all of which are outstanding at the date hereof;

                 (290) Bonds of 1991 Series BP in the principal amount of
                 Twenty-five million nine hundred ten thousand dollars
                 ($25,910,000), all of which are outstanding at the date hereof;

                 (291) Bonds of 1991 Series CP in the principal amount of
                 Thirty-two million eight hundred thousand dollars
                 ($32,800,000), all of which are outstanding at the date hereof;

                 (292) Bonds of 1991 Series DP in the principal amount of
                 Thirty-seven million six hundred thousand dollars
                 ($37,600,000), all of which are outstanding at the date hereof;

                 (293) Bonds of 1991 Series EP in the principal amount of
                 Forty-one million four hundred eighty thousand dollars
                 ($41,480,000), all of which are outstanding at the date hereof;

                 (294) Bonds of 1991 Series FP in the principal amount of
                 Ninety-eight million three hundred seventy-five thousand
                 dollars ($98,375,000), all of which are outstanding at the date
                 hereof;
<PAGE>   6
                                        4

                 (295) Bonds of 1992 Series BP in the principal amount of Twenty
                 million nine hundred seventy-five thousand dollars
                 ($20,975,000), all of which are outstanding at the date hereof;

                 (296) Bonds of 1992 Series AP in the principal amount of
                 Sixty-six million dollars ($66,000,000), all of which are
                 outstanding at the date hereof;

                 (297) Bonds of 1992 Series D in the principal amount of Three
                 hundred million dollars ($300,000,000), of which Ten million
                 dollars ($10,000,000) principal amount have heretofore been
                 retired and Two hundred ninety million ($290,000,000) principal
                 amount are outstanding at the date hereof;

                 (298) Bonds of 1992 Series CP in the principal amount of
                 Thirty-five million dollars ($35,000,000), all of which are
                 outstanding at the date hereof;

                 (299) Bonds of 1992 Series E in the principal amount of Fifty
                 million dollars ($50,000,000), all of which are outstanding at
                 the date hereof;

                 (300) Bonds of 1989 Series BP No. 2 in the principal amount of
                 Thirty-six million dollars ($36,000,000), all of which are
                 outstanding at the date hereof;

                 (301) Bonds of 1993 Series C in the principal amount of Two
                 hundred twenty-five million dollars ($225,000,000), of which
                 Twenty-seven million dollars ($27,000,000) principal amount
                 have heretofore been retired and One hundred ninety-eight
                 million dollars ($198,000,000) principal amount are outstanding
                 at the date hereof;

                 (302) Bonds of 1993 Series B in the principal amount of Fifty
                 million dollars ($50,000,000), all of which are outstanding at
                 the date hereof;

                 (303) Bonds of 1993 Series E in the principal amount of Four
                 hundred million dollars ($400,000,000), of which Thirty-one
                 million five hundred thousand dollars ($31,500,000) principal
                 amount have heretofore been retired and Three hundred
                 sixty-eight million five hundred thousand dollars
                 ($368,500,000) principal amount are outstanding at the date
                 hereof;

                 (304) Bonds of 1993 Series FP in the principal amount of Five
                 million six hundred eighty-five thousand dollars ($5,685,000),
                 all of which are outstanding at the date hereof;

                 (305) Bonds of 1993 Series G in the principal amount of Two
                 hundred twenty-five million dollars ($225,000,000), of which
                 One hundred twenty-five million dollars ($125,000,000)
                 principal amount have been retired and One hundred million
                 dollars ($100,000,000) principal amount are outstanding at the
                 date hereof;

                 (306) Bonds of 1993 Series J in the principal amount of Three
                 hundred million dollars ($300,000,000), of which Seventy eight
                 million five hundred thousand dollars ($78,500,000) principal
                 amount have heretofore been retired and Two hundred twenty-one
                 million five hundred thousand dollars ($221,500,000) principal
                 amount are outstanding at the date hereof;

                 (307) Bonds of 1993 Series IP in the principal amount of Five
                 million eight hundred twenty-five thousand dollars
                 ($5,825,000), all of which are outstanding at the date hereof;

                 (308) Bonds of 1993 Series AP in the principal amount of
                 Sixty-five million dollars ($65,000,000), all of which are
                 outstanding at the date hereof;

                 (309) Bonds of 1993 Series H in the principal amount of Fifty
                 million dollars ($50,000,000), all of which are outstanding at
                 the date hereof;

                 (310) Bonds of 1993 Series K in the principal amount of One
                 hundred sixty million dollars ($160,000,000), all of which are
                 outstanding at the date hereof;
<PAGE>   7
                                        5

                 (311) Bonds of 1994 Series AP in the principal amount of Seven
                 million five hundred thirty-five thousand dollars ($7,535,000),
                 all of which are outstanding at the date hereof;

                 (312) Bonds of 1994 Series BP in the principal amount of Twelve
                 million nine hundred thirty-five thousand dollars
                 ($12,935,000), all of which are outstanding at the date hereof;

                 (313) Bonds of 1994 Series C in the principal amount of Two
                 hundred million dollars ($200,000,000), all of which are
                 outstanding at the date hereof;

                 (314) Bonds of 1994 Series DP in the principal amount of
                 Twenty-three million seven hundred thousand dollars
                 ($23,700,000), all of which are outstanding at the date hereof;

                 (315) Bonds of 1995 Series AP in the principal amount of
                 Ninety-seven million dollars ($97,000,000), all of which are
                 outstanding at the date hereof;

                 (316) Bonds of 1995 Series BP in the principal amount of
                 Twenty-two million, one hundred seventy-five thousand dollars
                 ($22,175,000), all of which are outstanding at the date hereof;

                 and, accordingly, of the bonds so issued, Two billion nine
                 hundred forty-five million four hundred forty-one thousand
                 dollars ($2,945,441,000) principal amount are outstanding at
                 the date hereof; and

REASON FOR
CREATION OF NEW
SERIES.            WHEREAS, the Company desires to issue a new series of bonds
                 to be issued under the Indenture and to be authenticated and
                 delivered pursuant to Section 8 of Article III of the
                 Indenture; and

BONDS TO BE
FLOATING RATE
1999 SERIES D.     WHEREAS, the Company desires by this Supplemental Indenture
                 to create a new series of bonds, to be designated "General and
                 Refunding Mortgage Bonds, Floating Rate 1999 Series D," and

FURTHER
ASSURANCE.         WHEREAS, the Original Indenture, by its terms, includes in
                 the property subject to the lien thereof all of the estates and
                 properties, real, personal and mixed, rights, privileges and
                 franchises of every nature and kind and wheresoever situate,
                 then or thereafter owned or possessed by or belonging to the
                 Company or to which it was then or at any time thereafter might
                 be entitled in law or in equity (saving and excepting, however,
                 the property therein specifically excepted or released from the
                 lien thereof), and the Company therein covenanted that it
                 would, upon reasonable request, execute and deliver such
                 further instruments as may be necessary or proper for the
                 better assuring and confirming unto the Trustee all or any part
                 of the trust estate, whether then or thereafter owned or
                 acquired by the Company (saving and excepting, however,
                 property specifically excepted or released from the lien
                 thereof); and

AUTHORIZATION OF
SUPPLEMENTAL
INDENTURE.         WHEREAS, the Company in the exercise of the powers and
                 authority conferred upon and reserved to it under and by virtue
                 of the provisions of the Indenture, and pursuant to resolutions
                 of its Board of Directors has duly resolved and determined to
                 make, execute and deliver to the Trustee a supplemental
                 indenture in the form hereof for the purposes herein provided;
                 and

                   WHEREAS, all conditions and requirements necessary to make
                 this Supplemental Indenture a valid and legally binding
                 instrument in accordance with its terms have been done,
                 performed and fulfilled, and the execution and delivery hereof
                 have been in all respects duly authorized;

CONSIDERATION FOR
SUPPLEMENTAL
INDENTURE.         NOW, THEREFORE, THIS INDENTURE WITNESSETH: That The Detroit
                 Edison Company, in consideration of the premises and of the
                 covenants contained in the Indenture and of the sum of One
                 Dollar ($1.00) and other good and valuable consideration to it
                 duly paid by the Trustee at or before the ensealing and
                 delivery of these presents, the receipt whereof is hereby
                 acknowledged, hereby covenants and
<PAGE>   8
                                        6

                 agrees to and with the Trustee and its successors in the trusts
                 under the Original Indenture and in said indentures
                 supplemental thereto as follows:

                                             PART I.

                             CREATION OF THREE HUNDRED TWENTY-THIRD
                                        SERIES OF BONDS.

                              GENERAL AND REFUNDING MORTGAGE BONDS,
                                   FLOATING RATE 1999 SERIES D

TERMS OF BONDS OF
FLOATING RATE 1999
SERIES D.          SECTION 1. The Company hereby creates the Three hundred
                 twenty-third series of bonds to be issued under and secured by
                 the Original Indenture as amended to date and as further
                 amended by this Supplemental Indenture, to be designated, and
                 to be distinguished from the bonds of all other series, by the
                 title "General and Refunding Mortgage Bonds, Floating Rate 1999
                 Series D" (elsewhere herein referred to as the "bonds of 1999
                 Series D"). The aggregate principal amount of bonds of 1999
                 Series D shall be limited to Forty million dollars
                 ($40,000,000), except as provided in Sections 7 and 13 of
                 Article II of the Original Indenture with respect to exchanges
                 and replacements of bonds.

                   The bonds of 1999 Series D shall mature on September 17, 2001
                 and shall be issued as registered bonds without coupons in
                 denominations of $1,000 and any multiple thereof. The bonds of
                 1999 Series D will be issued in book-entry form through the
                 facilities of The Depository Trust Company ("DTC"). Transfers
                 or exchanges of beneficial interests in the bonds of 1999
                 Series D may be effected only through records maintained by DTC
                 or its nominee. Payments of principal and interest on the Bonds
                 will be made to DTC in immediately available funds as the
                 principal of and interest on the bonds of 1999 Series D shall
                 be payable at the office or agency of the Company in the
                 Borough of Manhattan, The City of New York, The State of New
                 York in any coin or currency of the United States of America
                 which at the time of payment is legal tender for public and
                 private debts. The interest on bonds of 1999 Series D, whether
                 in temporary or definitive form, shall be payable without
                 presentation of such bonds and (subject to the provisions of
                 this Section 1) only to or upon the written order of the
                 registered holders thereof.

                   The bonds of 1999 Series D shall bear interest at a rate per
                 annum, reset quarterly, equal to three-month LIBOR (as defined
                 below) plus seventeen basis points (.17%), as determined by the
                 Calculation Agent (as defined below). Interest will be computed
                 on the basis of a 360-day year and the actual number of days in
                 the applicable Interest Period (as defined below). Interest is
                 payable quarterly in arrears on March 15, June 15, September
                 15, and December 15 of each year, commencing September 15,
                 1999, except that the final payment of interest will be due on
                 September 17, 2001, instead of September 15, 2001 (each an
                 "Interest Payment Date"), for the period commencing on and
                 including the immediately preceding Interest Payment Date and
                 ending on and including the day preceding the next Interest
                 Payment Date (each an "Interest Period"), with the exception
                 that the first Interest Period shall commence on and include
                 August 27, 1999. Interest is payable to the persons in whose
                 names the bonds of 1999 Series D are registered at the close of
                 business on the fifteenth calendar day, whether or not a
                 Business Day (as defined below), prior to the Interest Payment
                 Date.

                   The interest rate on the bonds of 1999 Series D may not
                 exceed the "Maximum Rate", which is defined to mean the rate of
                 interest equal to 15% per annum or such higher rate as may be
                 established from time to time by the Board of Directors of the
                 Company.

                   If any Interest Payment Date, other than at stated maturity,
                 for the bonds of 1999 Series D would otherwise be a day that is
                 not a Business Day, such Interest Payment Date will be
                 postponed to the next day that is a Business Day, except that
                 if such Business Day is in the next succeeding calendar month,
                 such Interest
<PAGE>   9
                                        7

                 Payment Date shall be the immediately preceding Business Day.
                 If the stated maturity for the bonds of 1999 Series D falls on
                 a day which is not a Business Day, payment of principal and
                 interest with respect to the bonds of 1999 Series D will be
                 paid on the next succeeding Business Day with the same force
                 and effect as if made on such date and no interest on such
                 payment will accrue from and after such date.

                   The interest rate for each Interest Period shall be
                 determined by the Calculation Agent in accordance with the
                 following provisions:

                   The per annum rate of interest for each Interest Period will
                 be three-month LIBOR on the second Business Day preceding the
                 relevant Interest Reset Date (as defined below) for such
                 Interest Period (the "Interest Determination Date") plus the
                 applicable spread described above. The Interest Determination
                 Date for the first Interest Period shall be August 25, 1999.
                 "LIBOR" for each subsequent Interest Period shall be determined
                 by the Calculation Agent in accordance with the following
                 provisions:

                     (i) On each Interest Determination Date, the Calculation
                Agent shall ascertain the offered rate for three-month deposits
                in U.S. dollars in the London interbank market, which appears on
                the Telerate Page 3750, as of 11:00 a.m. (London time) on such
                Interest Determination Date.

                     (ii) If such rate does not appear on the Telerate Page
                3750, or the Telerate Page 3750 is unavailable, the Calculation
                Agent shall request each of four major banks in the London
                interbank market (the "Reference Banks") to provide the
                Calculation Agent with its offered quotation (expressed as a
                rate per annum) for three-month deposits in U.S. dollars to
                leading banks in the London interbank market at approximately
                11:00 a.m. (London time) on the Interest Determination Date. If
                at least two such quotations are provided, LIBOR in respect of
                the Interest Determination Date, will be the arithmetic mean of
                such quotations.

                     (iii) If less than two of the Reference Banks provide the
                Calculation Agent with such offered quotations, LIBOR in respect
                of that Interest Determination Date shall be the arithmetic mean
                of the rates quoted by three major banks in The City of New York
                (selected by the Calculation Agent) at approximately 11:00 a.m.,
                New York City time, on that Interest Determination Date for
                three-month loans in U.S. dollars to leading European banks, in
                a principal amount equal to an amount of not less than
                $1,000,000 that is representative for a single transaction in
                such market at such time; provided, however, that if the banks
                selected as aforesaid by the Calculation Agent are not quoting
                as mentioned in this sentence, LIBOR shall be LIBOR in effect on
                such Interest Determination Date.

                   "Interest Reset Date" means, with respect to any Interest
                 Period, the first day of such Interest Period.

                   "Business Day" means any day (other than a Saturday or
                 Sunday) on which banking institutions in The City of New York
                 are open for business and which is also a London Banking Day.

                   "London Banking Day" means any day (other than a Saturday or
                 Sunday) on which dealings in deposits are transacted in the
                 London interbank market.

                   "Telerate Page 3750" means the display designated as page
                 "3750" on the Bridge Telerate, Inc. (or such other page as may
                 replace that page on that service for the purpose of displaying
                 the LIBOR Index on a daily basis).

                   All percentages resulting from any calculation on the bonds
                 of 1999 Series D shall be rounded, if necessary, to the nearest
                 one hundred-thousandth of a percentage point, with five
                 one-millionths of a percentage point rounded upward (e.g.,
                 9.876545% (or .09876545) being rounded to 9.87655% (or
                 .0987655)), and U.S. dollar amounts used in or resulting from
                 such calculations shall be rounded to the nearest cent (with
                 one-half cent being rounded upward).
<PAGE>   10
                                        8

                   The Company agrees that, so long as any of the bonds of 1999
                 Series D remain outstanding, it shall maintain under
                 appointment an agent (the "Calculation Agent"), initially
                 Bankers Trust Company, to calculate the rate of interest
                 payable on the Bonds in respect of each Interest Period as
                 provided in Section 3 below. If the Calculation Agent is unable
                 or unwilling to continue to act as such, or if the Calculation
                 Agent fails to establish the applicable rate of interest for
                 any Interest Period, or if the Company removes the Calculation
                 Agent, the Company shall appoint the office of another bank to
                 act as the Calculation Agent; provided, however, that the
                 Calculation Agent shall not resign or be removed until
                 acceptance of an appointment by a successor as evidenced by an
                 appropriate agreement entered into by the Company and such
                 successor Calculation Agent.

                   Each bond of 1999 Series D shall be dated the date of its
                 authentication and interest shall be payable on the principal
                 represented thereby from the March 15, June 15, September 15 or
                 December 15 next preceding the date thereof to which interest
                 has been paid on bonds of 1999 Series D, unless the bond is
                 authenticated on a date to which interest has been paid, in
                 which case interest shall be payable from the date of
                 authentication, or unless the date of authentication is prior
                 to September 15, 1999, in which case interest shall be payable
                 from August 27, 1999 on the bond of 1999 Series D originally
                 evidencing the debt represented thereby.

                   The bonds of 1999 Series D in definitive form shall be, at
                 the election of the Company, fully engraved or shall be
                 lithographed or printed in authorized denominations as
                 aforesaid and numbered 1 and upwards (with such further
                 designation as may be appropriate and desirable to indicate by
                 such designation the form, series and denomination of bonds of
                 1999 Series D). Until bonds of 1999 Series D in definitive form
                 are ready for delivery, the Company may execute, and upon its
                 request in writing the Trustee shall authenticate and deliver
                 in lieu thereof, bonds of 1999 Series D in temporary form, as
                 provided in Section 10 of Article II of the Indenture.
                 Temporary bonds of 1999 Series D, if any, may be printed and
                 may be issued in authorized denominations in substantially the
                 form of definitive bonds of 1999 Series D, but with such
                 omissions, insertions and variations as may be appropriate for
                 temporary bonds, all as may be determined by the Company.

                   Interest on any bond of 1999 Series D which is payable on any
                 Interest Payment Date and is punctually paid or duly provided
                 for shall be paid to the person in whose name that bond, or any
                 previous bond to the extent evidencing the same debt as that
                 evidenced by that bond, is registered at the close of business
                 on the regular record date for such interest, which regular
                 record date shall be the fifteenth calendar day (whether or not
                 a business day) next preceding such Interest Payment Date. If
                 the Company shall default in the payment of the interest due on
                 any Interest Payment Date on the principal represented by any
                 bond of 1999 Series D, such defaulted interest shall forthwith
                 cease to be payable to the registered holder of that bond on
                 the relevant regular record date by virtue of his having been
                 such holder, and such defaulted interest may be paid to the
                 registered holder of that bond (or any bond or bonds of 1999
                 Series D issued upon transfer or exchange thereof) on the date
                 of payment of such defaulted interest or, at the election of
                 the Company, to the person in whose name that bond (or any bond
                 or bonds of 1999 Series D issued upon transfer or exchange
                 thereof) is registered on a subsequent record date established
                 by notice given by mail by or on behalf of the Company to the
                 holders of bonds of 1999 Series D not less than ten (10) days
                 preceding such subsequent record date, which subsequent record
                 date shall be at least five (5) days prior to the payment date
                 of such defaulted interest.

REDEMPTION OF
BONDS OF 1999
SERIES D.          SECTION 2. The bonds of 1999 Series D shall not be redeemable
                 prior to stated maturity.

                   The bonds of 1999 Series D shall not be entitled to or
                 subject to any sinking fund.

EXCHANGE AND
TRANSFER.          At the option of the registered holder, any bonds of 1999
                 Series D, upon surrender thereof for cancellation at the office
                 or agency of the Company in the Borough of
<PAGE>   11
                                        9

                 Manhattan, The City of New York, The State of New York,
                 together with a written instrument of transfer (if so required
                 by the Company or by the Trustee) in form approved by the
                 Company duly executed by the holder or by its duly authorized
                 attorney, shall be exchangeable for a like aggregate principal
                 amount of bonds of 1999 Series D of other authorized
                 denominations, upon the terms and conditions specified herein
                 and in Section 7 of Article II of the Indenture. Bonds of 1999
                 Series D shall be transferable at the office or agency of the
                 Company in the Borough of Manhattan, The City of New York, The
                 State of New York. The Company waives its rights under Section
                 7 of Article II of the Indenture not to make exchanges or
                 transfers of bonds of 1999 Series D during any period of ten
                 (10) days next preceding any interest payment date for such
                 bonds.

                   Bonds of 1999 Series D, in definitive and temporary form, may
                 bear such legends as may be necessary to comply with any law or
                 with any rules or regulations made pursuant thereto or with the
                 rules or regulations of any stock exchange or to conform to
                 usage with respect thereto.

CALCULATION AGENT  SECTION 3. (a) The Company hereby appoints Bankers Trust
                 Company as Calculation Agent (in such capacity, the
                 "Calculation Agent") of the Company with respect to the bonds
                 of 1999 Series D, and the Calculation Agent hereby accepts its
                 obligations as set forth in this Supplemental Indenture upon
                 the terms and conditions set forth herein.

                   (b) As soon as reasonably practical on or after each Interest
                 Determination Date, the Calculation Agent shall determine LIBOR
                 and notify the Company thereof and the resulting interest rate.
                 Upon the request of the beneficial owner of any bond of 1999
                 Series D, the Calculation Agent will provide the interest rate
                 then in effect and, if determined, the applicable interest rate
                 that will become effective as of the next Interest Reset Date.
                 All interest rate determinations made by the Calculation Agent
                 with respect to the bonds of 1999 Series D shall, in the
                 absence of manifest error, be conclusive for all purposes and
                 binding upon the Company.

                   (c) The Calculation Agent shall be entitled to such
                 compensation for its services as the Calculation Agent and the
                 Company may agree, and the Company shall pay such compensation
                 and shall reimburse the Calculation Agent for all reasonable
                 expenses, disbursements and advances incurred or made by the
                 Calculation Agent in connection with the services rendered by
                 it as Calculation Agent.

                   (d) The Calculation Agent shall incur no liability for, or in
                 respect of, any action taken, omitted to be taken or suffered
                 by it in reliance upon any bond of 1999 Series D, certificate,
                 affidavit, instruction, notice, request, direction, order,
                 statement or other paper, document or communication reasonably
                 believed by it to be genuine. Any order, certificate,
                 affidavit, instruction, notice, request, direction, statement
                 or other communication from the Company made or given by it and
                 sent, delivered or directed to the Calculation Agent under,
                 pursuant to or as permitted by any provision of this
                 Supplemental Indenture shall be sufficient for purposes of this
                 Supplemental Indenture if such communication is in writing and
                 signed by any officer of the Company. The Calculation Agent may
                 consult with counsel satisfactory to it (which counsel may be
                 counsel for the Company) and the opinion of such counsel shall
                 constitute full and complete protection of the Calculation
                 Agent with respect to any action taken, omitted to be taken or
                 suffered by it hereunder in good faith and in accordance with
                 and in reliance upon the opinion of such counsel. In acting
                 under this Supplemental Indenture, the Calculation Agent (in
                 its capacity as such) does not assume any obligation to, or any
                 relationship of agency or trust for or with, the holders of the
                 bonds of 1999 Series D.

                   (e) The Calculation Agent shall be obligated only to perform
                 such duties as are specifically set forth herein and no other
                 duties or obligations on the part of the Calculation Agent, in
                 its capacity as such, shall be implied hereby.
<PAGE>   12
                                       10

                   (f) The Calculation Agent may at any time terminate its
                 appointment as Calculation Agent by giving no less than ninety
                 (90) days' written notice to the Company, unless the Company
                 consents in writing to a shorter time. Upon receipt of notice
                 of termination by the Calculation Agent, the Company agrees
                 promptly to appoint a successor Calculation Agent. The Company
                 may terminate the appointment of the Calculation Agent at any
                 time by giving written notice to the Calculation Agent of such
                 termination and specifying the date when such termination shall
                 become effective; provided, however, that no termination by the
                 Calculation Agent or by the Company shall become effective
                 prior to the date of the appointment by the Company, as
                 provided below, of a successor Calculation Agent and the
                 acceptance of such appointment by such successor Calculation
                 Agent. Upon termination by either party pursuant to the
                 provisions of this paragraph, the Calculation Agent shall be
                 entitled to the payment of any compensation owed to it by the
                 Company hereunder, as provided by paragraph (c) above, and the
                 provisions of paragraph (h) below shall remain in effect
                 following such termination.

                   (g) Any successor Calculation Agent appointed by the Company
                 following termination of the appointment of the Calculation
                 Agent pursuant to the provisions of paragraph (f) hereof shall
                 execute and deliver to the Calculation Agent and to the Company
                 an instrument accepting such appointment, and thereupon such
                 successor Calculation Agent shall, without any further act or
                 instrument, become vested with all the rights, immunities,
                 duties and obligations of the Calculation Agent, with like
                 effect as if originally named as Calculation Agent hereunder,
                 and the Calculation Agent shall thereupon be obligated to
                 transfer and deliver, and such successor Calculation Agent
                 shall be entitled to receive and accept, copies of any
                 available records maintained by the Calculation Agent in
                 connection with the performance of its obligations hereunder.

                   (h) The Company shall indemnify and hold free and harmless
                 the Calculation Agent, its officers and employees from and
                 against all actions, claims, damages, liabilities, losses and
                 expenses (including reasonable legal fees and expenses)
                 relating to or arising out of actions, or omissions in any
                 capacity hereunder, except actions, claims, damages,
                 liabilities, losses and expenses caused by the gross negligence
                 or wilful misconduct of the Calculation Agent, its officers or
                 employees.

                   (i) Any corporation into which the Calculation Agent may be
                 merged, converted or consolidated, or any corporation resulting
                 from any merger, conversion or consolidation to which the
                 Calculation Agent may be a party, or any corporation to which
                 the Calculation Agent may sell or otherwise transfer all or
                 substantially all of its corporate trust business, shall, to
                 the extent permitted by applicable law, become the Calculation
                 Agent under this Supplemental Indenture without the execution
                 of any paper or any further act by the parties hereto. The
                 Calculation Agent will give prompt written notice to the
                 Company and the Trustee (if other than Bankers Trust Company)
                 of any such merger, conversion or consolidation.

                   (j) Any notice or other communication given hereunder shall
                 be delivered in person, sent by letter, telecopy or telex or
                 communicated by telephone (subject, in the case of
                 communication by telephone, to written confirmation dispatched
                 within 24 hours) to such address as the party to receive such
                 notice may have previously specified.

                   (k) The terms and conditions of the appointment of the
                 Calculation Agent may be amended only by means of a written
                 instrument duly executed and delivered by or on behalf of the
                 Company and the Calculation Agent; provided, that, except as
                 required by law, or as agreed by the Company and the
                 Calculation Agent, such amendment need not be in the form of an
                 amended or further Supplemental Indenture.

                   (l) Except as provided herein, the provisions of this Section
                 3 are solely for the benefit of the Company and the Calculation
                 Agent hereto and their successors and assigns and no other
                 person shall acquire or have any rights under or by virtue
                 hereof.
<PAGE>   13
                                       11

                                   THE DETROIT EDISON COMPANY
                               GENERAL AND REFUNDING MORTGAGE BOND
                       FLOATING RATE 1999 SERIES D, DUE SEPTEMBER 17, 2001

                   $40,000,000                                             No. 1

                   THE DETROIT EDISON COMPANY (hereinafter called the
                 "Company"), a corporation of the State of Michigan, for value
                 received, hereby promises to pay to CEDE & Co. or registered
                 assigns, at its office or agency in the Borough of Manhattan,
                 The City and State of New York, the principal sum of
                 $40,000,000 in lawful money of the United States of America on
                 the seventeenth day of September 17, 2001, and to pay interest
                 thereon as provided below, at such office or agency, in like
                 lawful money, from August 27, 1999, to the person in whose name
                 this bond is registered at the close of business on the related
                 regular record date as provided below, or (subject to certain
                 exceptions provided in the Indenture hereinafter mentioned),
                 until the Company's obligation with respect to payment of said
                 principal shall have been discharged, all as provided, to the
                 extent and in the manner specified in such Indenture
                 hereinafter mentioned on the reverse hereof and in the
                 supplemental indenture pursuant to which this bond has been
                 issued.

                   The bonds of 1999 Series D will bear interest at a rate per
                 annum, reset quarterly, equal to three-month LIBOR (as defined
                 below) plus seventeen basis points (.17%), as determined by the
                 Calculation Agent (as defined below). Interest will be computed
                 on the basis of a 360-day year and the actual number of days in
                 the applicable Interest Period (as defined below). Interest is
                 payable quarterly in arrears on March 15, June 15, September
                 15, and December 15 of each year, commencing September 15,
                 1999, except that the final payment of interest will be due on
                 September 17, 2001, instead of September 15, 2001 (each an
                 "Interest Payment Date"), for the period commencing on and
                 including the immediately preceding Interest Payment Date and
                 ending on and including the day preceding the next Interest
                 Payment Date (each an "Interest Period"), with the exception
                 that the first Interest Period shall commence on and include
                 August 27, 1999. Interest is payable to the persons in whose
                 names the bonds of 1999 Series D are registered at the close of
                 business on the related regular record date, which shall be the
                 fifteenth calendar day, whether or not a Business Day (as
                 defined below), prior to the Interest Payment Date.

                   The interest rate on the bonds of 1999 Series D may not
                 exceed the "Maximum Rate", which is defined to mean the rate of
                 interest equal to 15% per annum or such higher rate as may be
                 established from time to time by the Board of Directors of the
                 Company.

                   If any Interest Payment Date, other than at stated maturity,
                 for the bonds of 1999 Series D would otherwise be a day that is
                 not a Business Day, such Interest Payment Date will be
                 postponed to the next day that is a Business Day, except that
                 if such Business Day is in the next succeeding calendar month,
                 such Interest Payment Date shall be the immediately preceding
                 Business Day. If the stated maturity for the bonds of 1999
                 Series D falls on a day which is not a Business Day, payment of
                 principal and interest with respect to the bonds of 1999 Series
                 D will be paid on the next succeeding Business Day with the
                 same force and effect as if made on such date and no interest
                 on such payment will accrue from and after such date.

                   The interest rate for each Interest Period will be determined
                 by the Calculation Agent in accordance with the following
                 provisions:

                   The per annum rate of interest for each Interest Period will
                 be three-month LIBOR on the second Business Day preceding the
                 relevant Interest Reset Date (as defined below) for such
                 Interest Period (the "Interest Determination Date") plus the
                 applicable spread described above. The Interest Determination
                 Date for the first Interest Period will be August 25, 1999.
                 "LIBOR" for each subsequent Interest
<PAGE>   14
                                       12

                 Period will be determined by the Calculation Agent in
                 accordance with the following provisions:

                     (i) On each Interest Determination Date, the Calculation
                Agent will ascertain the offered rate for three-month deposits
                in U.S. dollars in the London interbank market, which appears on
                the Telerate Page 3750, as of 11:00 a.m. (London time) on such
                Interest Determination Date.

                     (ii) If such rate does not appear on the Telerate Page
                3750, or the Telerate Page 3750 is unavailable, the Calculation
                Agent will request each of four major banks in the London
                interbank market (the "Reference Banks") to provide the
                Calculation Agent with its offered quotation (expressed as a
                rate per annum) for three-month deposits in U.S. dollars to
                leading banks in the London interbank market at approximately
                11:00 a.m. (London time) on the Interest Determination Date. If
                at least two such quotations are provided, LIBOR in respect of
                the Interest Determination Date, will be the arithmetic mean of
                such quotations.

                     (iii) If less than two of the Reference Banks provide the
                Calculation Agent with such offered quotations, LIBOR in respect
                of that Interest Determination Date will be the arithmetic mean
                of the rates quoted by three major banks in The City of New York
                (selected by the Calculation Agent) at approximately 11:00 a.m.,
                New York City time, on that Interest Determination Date for
                three-month loans in U.S. dollars to leading European banks, in
                a principal amount equal to an amount of not less than
                $1,000,000 that is representative for a single transaction in
                such market at such time; provided, however, that if the banks
                selected as aforesaid by the Calculation Agent are not quoting
                as mentioned in this sentence, LIBOR will be LIBOR in effect on
                such Interest Determination Date.

                   "Interest Reset Date" means, with respect to any Interest
                 Period, the first day of such Interest Period.

                   "Business Day" means any day (other than a Saturday or
                 Sunday) on which banking institutions in The City of New York
                 are open for business and which is also a London Banking Day.

                   "London Banking Day" means any day (other than a Saturday or
                 Sunday) on which dealings in deposits are transacted in the
                 London interbank market.

                   "Telerate Page 3750" means the display designated as page
                 "3750" on the Bridge Telerate, Inc. (or such other page as may
                 replace that page on that service for the purpose of displaying
                 the LIBOR Index on a daily basis).

                   All percentages resulting from any calculation on the bonds
                 of 1999 Series D will be rounded, if necessary, to the nearest
                 one hundred-thousandth of a percentage point, with five
                 one-millionths of a percentage point rounded upward (e.g.,
                 9.876545% (or .09876545) being rounded to 9.87655% (or
                 .0987655)), and U.S. dollar amounts used in or resulting from
                 such calculations will be rounded to the nearest cent (with
                 one-half cent being rounded upward).

                   The Company has agreed that, so long as any of the bonds of
                 1999 Series D remain outstanding, it will maintain under
                 appointment an agent (the "Calculation Agent"), initially
                 Bankers Trust Company, to calculate the rate of interest
                 payable on the Bonds in respect of each Interest Period. If the
                 Calculation Agent is unable or unwilling to continue to act as
                 such, or if the Calculation Agent fails to establish the
                 applicable rate of interest for any Interest Period, or if the
                 Company removes the Calculation Agent, the Company will appoint
                 the office of another bank to act as the Calculation Agent;
                 provided, however, that the Calculation Agent shall not resign
                 or be removed until acceptance of an appointment by a successor
                 as evidenced by an appropriate agreement entered into by the
                 Company and such successor Calculation Agent.
<PAGE>   15
                                       13

                   Reference is hereby made to the further provisions of this
                 bond set forth on the reverse hereof and such further
                 provisions shall for all purposes have the same effect as
                 though set forth at this place.

                   This bond shall not be valid or become obligatory for any
                 purpose until Bankers Trust Company, the Trustee under the
                 Indenture hereinafter mentioned on the reverse hereof, or its
                 successor thereunder, shall have signed the form of certificate
                 endorsed hereon.

                   IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY has caused
                 this instrument to be executed on its behalf by its Vice
                 President and Treasurer, with his manual or facsimile
                 signature, and its corporate seal, or a facsimile thereof, to
                 be impressed or imprinted hereon and the same to be attested by
                 its Secretary or its Assistant Corporate Secretary by manual or
                 facsimile signature.

<TABLE>
                      <S>  <C>                                     <C>

                           Dated:
                           DTE SEAL
                           Attest:
                           SOMERS
                           Assistant Corporate Secretary
                                                                   THE DETROIT EDISON COMPANY
                                                                   By LOOMANS
                                                                       Vice President and Treasurer
</TABLE>

                   This bond is one of an authorized issue of bonds of the
                 Company, unlimited as to amount except as provided in the
                 Indenture hereinafter mentioned or any indentures supplemental
                 thereto, and is one of a series of said bonds known as General
                 and Refunding Mortgage Bonds, Floating Rate 1999 Series D
                 (elsewhere herein referred to as the "bonds of 1999 Series D"),
                 limited to an aggregate principal amount of $40,000,000, except
                 as otherwise provided in the Indenture hereinafter mentioned.
                 This bond and all other bonds of said series are issued and to
                 be issued under, and are all equally and ratably secured
                 (except insofar as any sinking, amortization, improvement or
                 analogous fund, established in accordance with the provisions
                 of the Indenture hereinafter mentioned, may afford additional
                 security for the bonds of any particular series and except as
                 provided in Section 3 of Article VI of said Indenture) by an
                 Indenture, dated as of October 1, 1924, duly executed by the
                 Company to Bankers Trust Company, a corporation of the State of
                 New York, as Trustee, to which Indenture and all indentures
                 supplemental thereto (including the Supplemental Indenture
                 dated as of August 15, 1999) reference is hereby made for a
                 description of the properties and franchises mortgaged and
                 conveyed, the nature and extent of the security, the terms and
                 conditions upon which the bonds are issued and under which
                 additional bonds may be issued, and the rights of the holders
                 of the bonds and of the Trustee in respect of such security
                 (which Indenture and all indentures supplemental thereto,
                 including the Supplemental Indenture dated as of August 15,
                 1999, are hereinafter collectively called
                                       14
                 the "Indenture"). As provided in the Indenture, said bonds may
                 be for various principal sums and are issuable in series, which
                 may mature at different times, may bear interest at different
                 rates and may otherwise vary as in said Indenture provided.
                 With the consent of the Company and to the extent permitted by
                 and as provided in the Indenture, the rights and obligations of
                 the Company and of the holders of the bonds and the terms and
                 provisions of the Company and of the holders of the bonds and
                 the terms and
<PAGE>   16
                                       14

                 provisions of the Indenture, or of any indenture supplemental
                 thereto, may be modified or altered in certain respects by
                 affirmative vote of at least eighty-five percent (85%) in
                 principal amount of the bonds then outstanding, and, if the
                 rights of one or more, but less than all, series of bonds then
                 outstanding are to be affected by the action proposed to be
                 taken, then also by affirmative vote of at least eighty-five
                 percent (85%) in principal amount of the series of bonds so to
                 be affected (excluding in every instance bonds disqualified
                 from voting by reason of the Company's interest therein as
                 specified in the Indenture); provided, however, that, without
                 the consent of the holder hereof, no such modification or
                 alteration shall, among other things, affect the terms of
                 payment of the principal of, or the interest on, this bond,
                 which in those respects is unconditional.

                   The bonds of 1999 Series D, including this bond, shall not be
                 redeemable prior to stated maturity.

                   The bonds of 1999 Series D, including this bond, shall not be
                 entitled or subject to a sinking fund.

                   In case an event of default, as defined in the Indenture,
                 shall occur, the principal of all the bonds issued thereunder
                 may become or be declared due and payable, in the manner, with
                 the effect and subject to the conditions, provided in the
                 Indenture.

                   This bond is transferable by the registered holder hereof, in
                 person or by his attorney duly authorized in writing, on the
                 books of the Company kept at its office or agency in the
                 Borough of Manhattan, The City and State of New York, upon
                 surrender and cancellation of this bond, and, thereupon, a new
                 registered bond or bonds of the same series of authorized
                 denominations for a like aggregate principal amount will be
                 issued to the transferee or transferees in exchange herefor,
                 and this bond with others of like form may in like manner be
                 exchanged for one or more new registered bonds of the same
                 series of other authorized denominations, but of the same
                 aggregate principal amount, all as provided and upon the terms
                 and conditions set forth in the Indenture, and upon payment, in
                 any event, of the charges prescribed in the Indenture.

                   No recourse shall be had for the payment of the principal of,
                 or the interest on, this bond, or for any claim based hereon or
                 otherwise in respect hereof or of the Indenture, or of any
                 indenture supplemental thereto, against any incorporator, or
                 against any past, present or future stockholder, director or
                 officer, as such, of the Company, or of any predecessor or
                 successor corporation, either directly or through the Company
                 or any such predecessor or successor corporation, whether for
                 amounts unpaid on stock subscriptions or by virtue of any
                 constitution, statute or rule of law, or by the enforcement of
                 any assessment or penalty or otherwise howsoever, all such
                 liability being, by the acceptance hereof and as part of the
                 consideration for the issue hereof, expressly waived and
                 released by every holder or owner hereof, as more fully
                 provided in the Indenture.

                             TRUSTEE'S CERTIFICATE

                   This bond is one of the bonds, of the series designated
                 therein, described in the within-mentioned Indenture.

                                       BANKERS TRUST COMPANY,
                                                                      as Trustee

                                       By ...........................
                                         Authorized Officer
<PAGE>   17
                                       15

  FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

--------------------------------------------------------------------------------
    (please insert social security or other identifying number of assignee)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (please print or type name and address of assignee)

the within bond of THE DETROIT EDISON COMPANY and does hereby irrevocably
constitute and appoint

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Attorney, to transfer said bond on the books of the within-mentioned Company,
with full power of substitution in the premises.

Dated:

---------------------------------------------

Notice: The signature to this assignment must correspond with the name as
written upon the face of the bond in every particular without alteration or
enlargement or any change whatsoever.

                                            PART II.

                                    RECORDING AND FILING DATA

RECORDING AND
FILING OF ORIGINAL
INDENTURE.         The Original Indenture and indentures supplemental thereto
                 have been recorded and/or filed and Certificates of Provision
                 for Payment have been recorded as hereinafter set forth.

                   The Original Indenture has been recorded as a real estate
                 mortgage and filed as a chattel mortgage in the offices of the
                 respective Registers of Deeds of certain counties in the State
                 of Michigan as set forth in the Supplemental Indenture dated as
                 of September 1, 1947, has been recorded as a real estate
                 mortgage in the office of the Register of Deeds of Genesee
                 County, Michigan as set forth in the Supplemental Indenture
                 dated as of May 1, 1974, has been filed in the Office of the
                 Secretary of State of Michigan on November 16, 1951 and has
                 been filed and recorded in the office of the Interstate
                 Commerce Commission on December 8, 1969.

RECORDING AND
FILING OF
SUPPLEMENTAL
INDENTURES.        Pursuant to the terms and provisions of the Original
                 Indenture, indentures supplemental thereto heretofore entered
                 into have been recorded as a real estate mortgage and/or filed
                 as a chattel mortgage or as a financing statement in the
                 offices of the respective Registers of Deeds of certain
                 counties in the State of Michigan, the Office of the Secretary
                 of State of Michigan and the Office of the Interstate Commerce
                 Commission, as set forth in supplemental indentures as follows:

<TABLE>
<CAPTION>
                                                                                            RECORDED AND/OR
                                                                                         FILED AS SET FORTH IN
                               SUPPLEMENTAL                      PURPOSE OF                  SUPPLEMENTAL
                                INDENTURE                       SUPPLEMENTAL                   INDENTURE
                               DATED AS OF                       INDENTURE                   DATED AS OF:
                               ------------                     ------------             ---------------------
                       <S>                           <C>                                 <C>
                       June 1, 1925(a)(b)..........  Series B Bonds                      February 1, 1940
                       August 1, 1927(a)(b)........  Series C Bonds                      February 1, 1940
                       February 1, 1931(a)(b)......  Series D Bonds                      February 1, 1940
                       June 1, 1931(a)(b)..........  Subject Properties                  February 1, 1940
                       October 1, 1932(a)(b).......  Series E Bonds                      February 1, 1940
                       September 25, 1935(a)(b)....  Series F Bonds                      February 1, 1940
                       September 1, 1936(a)(b).....  Series G Bonds                      February 1, 1940
                       November 1, 1936(a)(b)......  Subject Properties                  February 1, 1940
                       February 1, 1940(a)(b)......  Subject Properties                  September 1, 1947
                       December 1, 1940(a)(b)......  Series H Bonds and Additional       September 1, 1947
                                                       Provisions
</TABLE>
<PAGE>   18
                                       16

<TABLE>
<CAPTION>
                                                                                            RECORDED AND/OR
                                                                                         FILED AS SET FORTH IN
                               SUPPLEMENTAL                      PURPOSE OF                  SUPPLEMENTAL
                                INDENTURE                       SUPPLEMENTAL                   INDENTURE
                               DATED AS OF                       INDENTURE                   DATED AS OF:
                               ------------                     ------------             ---------------------
                       <S>                           <C>                                 <C>
                       September 1,                  Series I Bonds,                     November 15, 1951
                         1947(a)(b)(c).............    Subject Properties and
                                                       Additional Provisions
                       March 1, 1950(a)(b)(c)......  Series J Bonds                      November 15, 1951
                                                       and Additional Provisions
                       November 15,                  Series K Bonds                      January 15, 1953
                         1951(a)(b)(c).............    Additional Provisions and
                                                       Subject Properties
                       January 15, 1953(a)(b)......  Series L Bonds                      May 1, 1953
                       May 1, 1953(a)..............  Series M Bonds and Subject          March 15, 1954
                                                       Properties
                       March 15, 1954(a)(c)........  Series N Bonds and Subject          May 15, 1955
                                                       Properties
                       May 15, 1955(a)(c)..........  Series O Bonds and Subject          August 15, 1957
                                                       Properties
                       August 15, 1957(a)(c).......  Series P Bonds Additional           June 1, 1959
                                                       Provisions and Subject
                                                       Properties
                       June 1, 1959(a)(c)..........  Series Q Bonds and Subject          December 1, 1966
                                                       Properties
                       December 1, 1966(a)(c)......  Series R Bonds Additional           October 1, 1968
                                                       Provisions and Subject
                                                       Properties
                       October 1, 1968(a)(c).......  Series S Bonds and Subject          December 1, 1969
                                                       Properties
                       December 1, 1969(a)(c)......  Series T Bonds and Subject          July 1, 1970
                                                       Properties
                       July 1, 1970(c).............  Series U Bonds and Subject          December 15, 1970
                                                       Properties
                       December 15, 1970(c)........  Series V and Series W Bonds         June 15, 1971
                       June 15, 1971(c)............  Series X Bonds and Subject          November 15, 1971
                                                       Properties
                       November 15, 1971(c)........  Series Y Bonds and Subject          January 15, 1973
                                                       Properties
                       January 15, 1973(c).........  Series Z Bonds and Subject          May 1, 1974
                                                       Properties
                       May 1, 1974.................  Series AA Bonds and Subject         October 1, 1974
                                                       Properties
                       October 1, 1974.............  Series BB Bonds and Subject         January 15, 1975
                                                       Properties
                       January 15, 1975............  Series CC Bonds and Subject         November 1, 1975
                                                       Properties
                       November 1, 1975............  Series DDP Nos. 1-9 Bonds and       December 15, 1975
                                                       Subject Properties
                       December 15, 1975...........  Series EE Bonds and Subject         February 1, 1976
                                                       Properties
                       February 1, 1976............  Series FFR Nos. 1-13 Bonds          June 15, 1976
                       June 15, 1976...............  Series GGP Nos. 1-7 Bonds and       July 15, 1976
                                                       Subject Properties
                       July 15, 1976...............  Series HH Bonds and Subject         February 15, 1977
                                                       Properties
</TABLE>
<PAGE>   19
                                       17

<TABLE>
<CAPTION>
                                                                                            RECORDED AND/OR
                                                                                         FILED AS SET FORTH IN
                               SUPPLEMENTAL                      PURPOSE OF                  SUPPLEMENTAL
                                INDENTURE                       SUPPLEMENTAL                   INDENTURE
                               DATED AS OF                       INDENTURE                   DATED AS OF:
                               ------------                     ------------             ---------------------
                       <S>                           <C>                                 <C>
                       February 15, 1977...........  Series MMP Bonds and Subject        March 1, 1977
                                                       Properties
                       March 1, 1977...............  Series IIP Nos. 1-7 Bonds, Series   June 15, 1977
                                                       JJP Nos. 1-7 Bonds, Series KKP
                                                       Nos. 1-7 Bonds and Series LLP
                                                       Nos. 1-7 Bonds
                       June 15, 1977...............  Series FFR No. 14 Bonds and         July 1, 1977
                                                       Subject Properties
                       July 1, 1977................  Series NNP Nos. 1-7 Bonds and       October 1, 1977
                                                       Subject Properties
                       October 1, 1977.............  Series GGP Nos. 8-22 Bonds and      June 1, 1978
                                                       Series OOP Nos. 1-17 Bonds and
                                                       Subject Properties
                       June 1, 1978................  Series PP Bonds, Series QQP Nos.    October 15, 1978
                                                       1-9 Bonds and Subject Properties
                       October 15, 1978............  Series RR Bonds and Subject         March 15, 1979
                                                       Properties
                       March 15, 1979..............  Series SS Bonds and Subject         July 1, 1979
                                                       Properties
                       July 1, 1979................  Series IIP Nos. 8-22 Bonds, Series  September 1, 1979
                                                       NNP Nos. 8-21 Bonds and Series
                                                       TTP Nos. 1-15 Bonds and Subject
                                                       Properties
                       September 1, 1979...........  Series JJP No. 8 Bonds, Series KKP  September 15, 1979
                                                       No. 8 Bonds, Series LLP Nos.
                                                       8-15 Bonds, Series MMP No. 2
                                                       Bonds and Series OOP No. 18
                                                       Bonds and Subject Properties
                       September 15, 1979..........  Series UU Bonds                     January 1, 1980
                       January 1, 1980.............  1980 Series A Bonds and Subject     April 1, 1980
                                                       Properties
                       April 1, 1980...............  1980 Series B Bonds                 August 15, 1980
                       August 15, 1980.............  Series QQP Nos. 10-19 Bonds, 1980   August 1, 1981
                                                       Series CP Nos. 1-12 Bonds and
                                                       1980 Series DP No. 1-11 Bonds
                                                       and Subject Properties
                       August 1, 1981..............  1980 Series CP Nos. 13-25 Bonds     November 1, 1981
                                                       and Subject Properties
                       November 1, 1981............  1981 Series AP Nos. 1-12 Bonds      June 30, 1982
                       June 30, 1982...............  Article XIV Reconfirmation          August 15, 1982
                       August 15, 1982.............  1981 Series AP Nos. 13-14 and       June 1, 1983
                                                       Subject Properties
</TABLE>
<PAGE>   20
                                       18

<TABLE>
<CAPTION>
                                                                                            RECORDED AND/OR
                                                                                         FILED AS SET FORTH IN
                               SUPPLEMENTAL                      PURPOSE OF                  SUPPLEMENTAL
                                INDENTURE                       SUPPLEMENTAL                   INDENTURE
                               DATED AS OF                       INDENTURE                   DATED AS OF:
                               ------------                     ------------             ---------------------
                       <S>                           <C>                                 <C>
                       June 1, 1983................  1981 Series AP Nos. 15-16 and       October 1, 1984
                                                       Subject Properties
                       October 1, 1984.............  1984 Series AP and 1984 Series BP   May 1, 1985
                                                       Bonds and Subject Properties
                       May 1, 1985.................  1985 Series A Bonds                 May 15, 1985
                       May 15, 1985................  1985 Series B Bonds and Subject     October 15, 1985
                                                       Properties
                       October 15, 1985............  Series KKP No. 9 Bonds and Subject  April 1, 1986
                                                       Properties
                       April 1, 1986...............  1986 Series A and Subject           August 15, 1986
                                                       Properties
                       August 15, 1986.............  1986 Series B and Subject           November 30, 1986
                                                       Properties
                       November 30, 1986...........  1986 Series C                       January 31, 1987
                       January 31, 1987............  1987 Series A                       April 1, 1987
                       April 1, 1987...............  1987 Series B and 1987 Series C     August 15, 1987
                       August 15, 1987.............  1987 Series D and 1987 Series E     November 30, 1987
                                                       and Subject Properties
                       November 30, 1987...........  1987 Series F                       June 15, 1989
                       June 15, 1989...............  1989 Series A                       July 15, 1989
                       July 15, 1989...............  Series KKP No. 10                   December 1, 1989
                       December 1, 1989............  Series KKP No. 11 and 1989 Series   February 15, 1990
                                                       BP
                       February 15, 1990...........  1990 Series A, 1990 Series B, 1990  November 1, 1990
                                                       Series C, 1990 Series D, 1990
                                                       Series E and 1990 Series F
                       November 1, 1990............  Series KKP No. 12                   April 1, 1991
                       April 1, 1991...............  1991 Series AP                      May 1, 1991
                       May 1, 1991.................  1991 Series BP and 1991 Series CP   May 15, 1991
                       May 15, 1991................  1991 Series DP                      September 1, 1991
                       September 1, 1991...........  1991 Series EP                      November 1, 1991
                       November 1, 1991............  1991 Series FP                      January 15, 1992
                       January 15, 1992............  1992 Series BP                      February 29, 1992 and
                                                                                         April 15, 1992
                       February 29, 1992...........  1992 Series AP                      April 15, 1992
                       April 15, 1992..............  Series KKP No. 13                   July 15, 1992
                       July 15, 1992...............  1992 Series CP                      November 30, 1992
                       July 31, 1992...............  1992 Series D                       November 30, 1992
                       April 1, 1986...............  1986 Series A and Subject           August 15, 1986
                                                       Properties
                       August 15, 1986.............  1986 Series B and Subject           November 30, 1986
                                                       Properties
                       November 30, 1986...........  1986 Series C                       January 31, 1987
                       January 31, 1987............  1987 Series A                       April 1, 1987
                       April 1, 1987...............  1987 Series B and 1987 Series C     August 15, 1987
</TABLE>
<PAGE>   21
                                       19

<TABLE>
<CAPTION>
                                                                                            RECORDED AND/OR
                                                                                         FILED AS SET FORTH IN
                               SUPPLEMENTAL                      PURPOSE OF                  SUPPLEMENTAL
                                INDENTURE                       SUPPLEMENTAL                   INDENTURE
                               DATED AS OF                       INDENTURE                   DATED AS OF:
                               ------------                     ------------             ---------------------
                       <S>                           <C>                                 <C>
                       August 15, 1987.............  1987 Series D and 1987 Series E     November 30, 1987
                                                       and Subject Properties
                       November 30, 1987...........  1987 Series F                       June 15, 1989
                       June 15, 1989...............  1989 Series A                       July 15, 1989
                       July 15, 1989...............  Series KKP No. 10                   December 1, 1989
                       December 1, 1989............  Series KKP No. 11 and 1989 Series   February 15, 1990
                                                       BP
                       February 15, 1990...........  1990 Series A, 1990 Series B, 1990  November 1, 1990
                                                       Series C, 1990 Series D, 1990
                                                       Series E and 1990 Series F
                       November 1, 1990............  Series KKP No. 12                   April 1, 1991
                       April 1, 1991...............  1991 Series AP                      May 1, 1991
                       May 1, 1991.................  1991 Series BP and 1991 Series CP   May 15, 1991
                       May 15, 1991................  1991 Series DP                      September 1, 1991
                       September 1, 1991...........  1991 Series EP                      November 1, 1991
                       November 1, 1991............  1991 Series FP                      January 15, 1992
                       January 15, 1992............  1992 Series BP                      February 29, 1992 and
                                                                                         April 15, 1992
                       February 29, 1992...........  1992 Series AP                      April 15, 1992
                       April 15, 1992..............  Series KKP No. 13                   July 15, 1992
                       July 15, 1992...............  1992 Series CP                      November 30, 1992
                       November 30, 1992...........  1992 Series E and 1993 Series D     March 15, 1993
                       December 15, 1992...........  Series KKP No. 14 and 1989 Series   March 15, 1992
                                                       BP No. 2
                       January 1, 1993.............  1993 Series C                       April 1, 1993
                       March 1, 1993...............  1993 Series E                       June 30, 1993
                       March 15, 1993..............  1993 Series D                       September 15, 1993
                       April 1, 1993...............  1993 Series FP and 1993 Series IP   September 15, 1993
                       April 26, 1993..............  1993 Series G and Amendment of      September 15, 1993
                                                       Article II, Section 5
                       May 31, 1993................  1993 Series J                       September 15, 1993
                       September 15, 1993..........  1993 Series K                       March 1, 1994
                       March 1, 1994...............  1994 Series AP                      June 15, 1994
                       June 15, 1994...............  1994 Series BP                      December 1, 1994
                       August 15, 1994.............  1994 Series C                       December 1, 1994
                       December 1, 1994............  Series KKP No. 15 and 1994 Series   August 1, 1995
                                                       DP
                       August 1, 1995..............  1995 Series A Bond                  August 15, 1999
                                                       1995 Series DP
</TABLE>

                -----------------------------------------
                (a) See Supplemental Indenture dated as of July 1, 1970 for
                    Interstate Commerce Commission filing and recordation
                    information.

                (b) See Supplemental Indenture dated as of May 1, 1953 for
                    Secretary of State of Michigan filing information.

                (c) See Supplemental Indenture dated as of May 1, 1974 for
                    County of Genesee, Michigan recording and filing
                    information.
<PAGE>   22
                                       20

RECORDING OF
CERTIFICATES
OF PROVISION
FOR PAYMENT.       All the bonds of Series A which were issued under the
                 Original Indenture dated as of October 1, 1924, and of Series
                 B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, W, Y, Z,
                 AA, BB, CC, DDP Nos. 1-9, FFR Nos. 1-14, GGP Nos. 1-22, HH, IIP
                 Nos. 1-22, JJP Nos. 1-8, KKP Nos. 1-9, LLP Nos. 1-15, NNP Nos.
                 1-21, OOP Nos. 1-18, QQP Nos. 1-17, TTP Nos. 1-15, UU, 1980
                 Series A, 1980 Series CP Nos. 1-25, 1980 Series DP Nos. 1-11,
                 1981 Series AP Nos. 1-16, 1984 Series AP, 1984 Series BP, 1985
                 Series A, 1985 Series B, 1987 Series A, PP, RR, EE, MMP, MMP
                 No. 2, 1989 Series A and 1993 Series D which were issued under
                 Supplemental Indentures dated as of, respectively, June 1,
                 1925, August 1, 1927, February 1, 1931, October 1, 1932,
                 September 25, 1935, September 1, 1936, December 1, 1940,
                 September 1, 1947, November 15, 1951, January 15, 1953, May 1,
                 1953, March 15, 1954, May 15, 1955, August 15, 1957, December
                 15, 1970, November 15, 1971, January 15, 1973, May 1, 1974,
                 October 1, 1974, January 15, 1975, November 1, 1975, February
                 1, 1976, June 15, 1976, July 15, 1976, October 1, 1977, March
                 1, 1977, July 1, 1979, March 1, 1977, March 1, 1977, March 1,
                 1977, September 1, 1979, July 1, 1977, July 1, 1979, September
                 15, 1979, October 1, 1977, June 1, 1978, October 1, 1977, July
                 1, 1979, January 1, 1980, August 15, 1980, November 1, 1981,
                 October 1, 1984, May 1, 1985, May 15, 1985, January 31, 1987,
                 June 1, 1978, October 15, 1978, December 15, 1975, February 15,
                 1977, September 1, 1979, June 15, 1989 and March 15, 1993 have
                 matured or have been called for redemption and funds sufficient
                 for such payment or redemption have been irrevocably deposited
                 with the Trustee for that purpose; and Certificates of
                 Provision for Payment have been recorded in the offices of the
                 respective Registers of Deeds of certain counties in the State
                 of Michigan, with respect to all bonds of Series A, B, C, D, E,
                 F, G, H, K, L, M, O, W, BB, CC, DDP Nos. 1 and 2, FFR Nos. 1-3,
                 GGP Nos. 1 and 2, IIP No. 1, JJP No. 1, KKP No. 1, LLP No. 1
                 and GGP No. 8.

                                            PART III.

                                          THE TRUSTEE.

TERMS AND
CONDITIONS OF
ACCEPTANCE OF
TRUST BY TRUSTEE.  The Trustee hereby accepts the trust hereby declared and
                 provided, and agrees to perform the same upon the terms and
                 conditions in the Original Indenture, as amended to date and as
                 supplemented by this Supplemental Indenture, and in this
                 Supplemental Indenture set forth, and upon the following terms
                 and conditions:

                   The Trustee shall not be responsible in any manner whatsoever
                 for and in respect of the validity or sufficiency of this
                 Supplemental Indenture or the due execution hereof by the
                 Company or for or in respect of the recitals contained herein,
                 all of which recitals are made by the Company solely.

                                            PART IV.

                                         MISCELLANEOUS.

CONFIRMATION OF
SECTION 318(C) OF
TRUST INDENTURE
ACT.               Except to the extent specifically provided therein, no
                 provision of this supplemental indenture or any future
                 supplemental indenture is intended to modify, and the parties
                 do hereby adopt and confirm, the provisions of Section 318(c)
                 of the Trust Indenture Act which amend and supercede provisions
                 of the Indenture in effect prior to November 15, 1990.

EXECUTION IN
COUNTERPARTS.      THIS SUPPLEMENTAL INDENTURE MAY BE SIMULTANEOUSLY EXECUTED IN
                 ANY NUMBER OF COUNTERPARTS, EACH OF WHICH WHEN SO EXECUTED
                 SHALL BE DEEMED TO BE AN ORIGINAL; BUT SUCH COUNTERPARTS SHALL
                 TOGETHER CONSTITUTE BUT ONE AND THE SAME INSTRUMENT.
<PAGE>   23
                                       21

TESTIMONIUM.       IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY AND BANKERS
                 TRUST COMPANY HAVE CAUSED THESE PRESENTS TO BE SIGNED IN THEIR
                 RESPECTIVE CORPORATE NAMES BY THEIR RESPECTIVE CHAIRMEN OF THE
                 BOARD, PRESIDENTS, VICE PRESIDENTS, ASSISTANT VICE PRESIDENTS,
                 TREASURERS OR ASSISTANT TREASURERS AND IMPRESSED WITH THEIR
                 RESPECTIVE CORPORATE SEALS, ATTESTED BY THEIR RESPECTIVE
                 SECRETARIES, ASSISTANT SECRETARIES, TREASURERS OR ASSISTANT
                 TREASURERS ALL AS OF THE DAY AND YEAR FIRST ABOVE WRITTEN.
                                              THE DETROIT EDISON COMPANY,

                 (Corporate Seal)             By

                                                --------------------------------
                                                          N. A. Khouri
                                                      Assistant Treasurer

EXECUTION.       Attest:

               -----------------------------------------------------------------
                        Jack L. Somers
                 Assistant Corporate Secretary

                 Signed, sealed and delivered by THE
                 DETROIT EDISON COMPANY, in the
                 presence of

               -----------------------------------------------------------------
                            K. Hier

               -----------------------------------------------------------------
                         W. A. Horwath

                 STATE OF MICHIGAN
                                                SS.:
                 COUNTY OF WAYNE

ACKNOWLEDGMENT
OF EXECUTION
BY COMPANY.        On this   day of August, 1999, before me, the subscriber, a
                 Notary Public within and for the County of        , in the
                 State of Michigan, personally appeared N. A. Khouri, to me
                 personally known, who, being by me duly sworn, did say that he
                 does business at 2000 2nd Avenue, Detroit, Michigan 48226-1279
                 and is the Assistant Treasurer of THE DETROIT EDISON COMPANY,
                 one of the corporations described in and which executed the
                 foregoing instrument; that he knows the corporate seal of the
                 said corporation and that the seal affixed to said instrument
                 is the corporate seal of said corporation; and that said
                 instrument was signed and sealed in behalf of said corporation
                 by authority of its Board of Directors and that he subscribed
                 his name thereto by like authority; and said N. A. Khouri,
                 acknowledged said instrument to be the free act and deed of
                 said corporation.

                                              ----------------------------------
                 (Notarial Seal)                              , Notary Public
                                                            County, MI
                                                My Commission Expires
<PAGE>   24
                                       22

<TABLE>
<S>                      <C>                                              <C>
                                                                          BANKERS TRUST COMPANY,
                         (Corporate Seal)                                 By
                                                                              --------------------------------------------
                                                                              Marc J. Parilla
                                                                              Assistant Vice President

                         Attest:
                         ------------------------------------------------
                         Signed, sealed and delivered by
                         BANKERS TRUST COMPANY, in the
                         presence of
                         ------------------------------------------------
                         ------------------------------------------------
</TABLE>

<TABLE>
<S>                      <C>                                           <C>

                                       STATE OF NEW YORK
                                             SS.:
                                      COUNTY OF NEW YORK
</TABLE>

<TABLE>
<S>                      <C>

ACKNOWLEDGEMENT          On this day of August, 1999, before me, the subscriber, a
OF EXECUTION             Notary Public within and for the County of New York, in the
BY TRUSTEE.              State of New York, personally appeared Marc J. Parilla, to
                         me personally known, who, being by me duly sworn, did say
                         that his business office is located at Four Albany Street,
                         New York, New York 10015, and he is Assistant Vice President
                         of BANKERS TRUST COMPANY, one of the corporations described
                         in and which executed the foregoing instrument; that he
                         knows the corporate seal of the said corporation and that
                         the seal affixed to said instrument is the corporate seal of
                         said corporation; and that said instrument was signed and
                         sealed in behalf of said corporation by authority of its
                         Board of Directors and that he subscribed his name thereto
                         by like authority; and said              acknowledged said
                         instrument to be the free act and deed of said corporation.
</TABLE>

<TABLE>
<S>                      <C>                                           <C>
                                        (Notarial Seal)
                                                                       ---------------------------------------------------
                                                                                Notary Public, State of New York
                                                                                               No.
                                                                                    Qualified in Kings County
                                                                                       Commission Expires
</TABLE>
<PAGE>   25
                                       23

STATE OF MICHIGAN
                               SS.:
COUNTY OF WAYNE

<TABLE>
<S>                      <C>

AFFIDAVIT AS TO          N.A. Khouri, being duly sworn, says: that he is the
CONSIDERATION            Assistant Treasurer of THE DETROIT EDISON COMPANY, the
AND GOOD FAITH.          Mortgagor named in the foregoing instrument, and that he has
                         knowledge of the facts in regard to the making of said
                         instrument and of the consideration therefor; that the
                         consideration for said instrument was and is actual and
                         adequate, and that the same was given in good faith for the
                         purposes in such instrument set forth.
</TABLE>

<TABLE>
<S>                      <C>                                              <C>
                                                                          ------------------------------------------------
                                                                                            N.A. Khouri

                         Sworn to before me this    day of
                         August, 1999

                         ------------------------------------------------
                                         , Notary Public
                                         Wayne County, MI
                                      My Commission Expires
                          (Notarial Seal)

                          This instrument was drafted by Frances B. Rohlman, Esq., 2000 Second Avenue, Detroit, Michigan
                                                                       48226
</TABLE>