##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) 
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period ended March 31, 2010
 Commission file number 1-2198
 The Detroit Edison Company meets the conditions set forth in General Instruction H (1) (a) and (b)
of Form 10-Q and is, therefore, filing this Form with the reduced disclosure format.
 THE DETROIT EDISON COMPANY
  Michigan
(State or other jurisdiction of 
incorporation or organization)
    
    38-0478650
(I.R.S. Employer
Identification No.)One Energy Plaza, Detroit, Michigan
(Address of principal executive offices)
    
    48226-1279
(Zip Code)
 313-235-4000
  Yes þ No o
  Yes þ No o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
  Yes o No þ




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##### 



The Detroit Edison Company  Quarterly Report on Form 10-Q  Quarter Ended March 31, 2010
 Table Of Contents
 PageDefinitions
    
    1Forward-Looking Statements
    
    2Part I  Financial InformationItem 1. Financial StatementsConsolidated Statements of Financial Position (Unaudited)
    
    4Consolidated Statements of Operations (Unaudited)
    
    6Consolidated Statements of Cash Flows (Unaudited)
    
    7Consolidated Statements of Changes in Shareholders Equity
and Comprehensive Income (Unaudited)
    
    8Notes to Consolidated Financial Statements (Unaudited)
    
    9Item 2. Managements Narrative Analysis of Results of Operations
    
    22Item 4. Controls and Procedures
    
    25Part II  Other InformationItem 1. Legal Proceedings
    
    26Item 6. Exhibits
    
    27Signature
    
    28EX-31.55EX-31.56EX-32.55EX-32.56




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Definitions
 ASC
    
    Accounting Standards CodificationASU
    
    Accounting Standards UpdateCustomer Choice
    
    Statewide initiatives giving customers in Michigan
the option to choose alternative suppliers for
electricity and gas.Detroit Edison
    
    The Detroit Edison Company (a direct wholly owned
subsidiary of DTE Energy) and subsidiary companiesDTE Energy
    
    DTE Energy Company, directly or indirectly the parent
of Detroit Edison, MichCon and numerous non-utility
subsidiariesEPA
    
    United States Environmental Protection AgencyFASB
    
    Financial Accounting Standards BoardFERC
    
    Federal Energy Regulatory CommissionFTRs
    
    Financial transmission rightsMDEQ
    
    Michigan Department of Environmental QualityMISO
    
    Midwest Independent System Operator is an Independent
System Operator and the Regional Transmission
Organization serving the Midwest United States and
Manitoba, Canada.MPSC
    
    Michigan Public Service CommissionNRC
    
    Nuclear Regulatory CommissionPSCR
    
    A power supply cost recovery mechanism authorized by
the MPSC that allows Detroit Edison to recover
through rates its fuel, fuel-related and purchased
power costs.Securitization
    
    Detroit Edison financed specific stranded costs at
lower interest rates through the sale of rate
reduction bonds by a wholly-owned special purpose
entity, The Detroit Edison Securitization Funding
LLC.Units of MeasurementGWh
    
    Gigawatthour of electricitykWh
    
    Kilowatthour of electricityMW
    
    Megawatt of electricityMWh
    
    Megawatthour of electricity
 1




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Forward-Looking Statements
  
    
    economic conditions resulting in lower demand, customer conservation and increased thefts
of electricity and gas;
    
    changes in the economic and financial viability of our customers, suppliers, and trading
counterparties, and the continued ability of such parties to perform their obligations to
the Company;
    
    economic climate and population growth or decline in the geographic areas where we do
business;
    
    high levels of uncollectible accounts receivable;
    
    access to capital markets and capital market conditions and the results of other
financing efforts which can be affected by credit agency ratings;
    
    instability in capital markets which could impact availability of short and long-term
financing;
    
    the timing and extent of changes in interest rates;
    
    the level of borrowings;
    
    the potential for losses on investments, including nuclear decommissioning and benefit
plan assets and the related increases in future expense and contributions;
    
    the potential for increased costs or delays in completion of significant construction
projects;
    
    the effects of weather and other natural phenomena on operations and sales to customers,
and purchases from suppliers;
    
    environmental issues, laws, regulations, and the increasing costs of remediation and
compliance, including actual and potential new federal and state requirements that include
or could include carbon and more stringent mercury emission controls, a renewable portfolio
standard, energy efficiency mandates, a carbon tax or cap and trade structure and ash
landfill regulations;
    
    nuclear regulations and operations associated with nuclear facilities;
    
    impact of electric and gas utility restructuring in Michigan, including legislative
amendments and Customer Choice programs;
    
    employee relations and the impact of collective bargaining agreements;
    
    unplanned outages;
    
    changes in the cost and availability of coal and other raw materials, purchased power and
natural gas;
    
    volatility in the short-term natural gas storage markets impacting third-party storage
revenues;
    
    cost reduction efforts and the maximization of plant and distribution system performance;
    
    the effects of competition;
 2




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
    
    the uncertainties of successful exploration of gas shale resources and challenges in
estimating gas reserves with certainty;
    
    impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings
and regulations, including any associated impact on rate structures;
    
    changes in and application of federal, state and local tax laws and their
interpretations, including the Internal Revenue Code, regulations, rulings, court
proceedings and audits;
    
    the amount and timing of cost recovery allowed as a result of regulatory proceedings,
related appeals or new legislation;
    
    the cost of protecting assets against, or damage due to, terrorism or cyber attacks;
    
    the availability, cost, coverage and terms of insurance and stability of insurance
providers;
    
    changes in and application of accounting standards and financial reporting regulations;
    
    changes in federal or state laws and their interpretation with respect to regulation,
energy policy and other business issues; and
    
    binding arbitration, litigation and related appeals.
  3




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Part I  Item 1.
 The Detroit Edison Company
 
 Consolidated Statements of Financial Position (Unaudited)
 March 31
    
    
    December 31(in Millions)
    
    2010
    
    
    2009ASSETSCurrent AssetsCash and cash equivalents
    
    $
    161
    
    
    $
    34Restricted cash
    
    
    28
    
    
    
    79Accounts receivable (less allowance for doubtful accounts of $114 and $118, respectively)Customer
    
    
    633
    
    
    
    696Affiliates
    
    
    2
    
    
    
    3Other
    
    
    16
    
    
    
    108InventoriesFuel
    
    
    137
    
    
    
    135Materials and supplies
    
    
    176
    
    
    
    173Notes ReceivableAffiliates
    
    
    8
    
    
    
    65Other
    
    
    1
    
    
    
    3Prepaid property taxes
    
    
    71
    
    
    
    44Other
    
    
    31
    
    
    
    351,264
    
    
    
    1,375InvestmentsNuclear decommissioning trust funds
    
    
    859
    
    
    
    817Other
    
    
    104
    
    
    
    104963
    
    
    
    921PropertyProperty, plant and equipment
    
    
    15,523
    
    
    
    15,451Less accumulated depreciation and amortization
    
    
    (6,174
    )
    
    
    (6,133
    )9,349
    
    
    
    9,318Other AssetsRegulatory assets
    
    
    3,313
    
    
    
    3,333Securitized regulatory assets
    
    
    835
    
    
    
    870Intangible assets
    
    
    10
    
    
    
    9Notes receivable  affiliates
    
    
    15
    
    
    
    17Other
    
    
    121
    
    
    
    1184,294
    
    
    
    4,347Total Assets
    
    $
    15,870
    
    
    $
    15,961
  4




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The Detroit Edison Company  Consolidated Statements of Financial Position (Unaudited)
 March 31
    
    
    December 31(in Millions, Except Shares)
    
    2010
    
    
    2009LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesAccounts payableAffiliates
    
    $
    168
    
    
    $
    74Other
    
    
    265
    
    
    
    251Accrued interest
    
    
    89
    
    
    
    83Accrued vacations
    
    
    46
    
    
    
    48Current portion of long-term debt, including capital leases
    
    
    665
    
    
    
    660Other
    
    
    199
    
    
    
    2131,432
    
    
    
    1,329Long-Term Debt (net of current portion)Mortgage bonds, notes and other
    
    
    3,566
    
    
    
    3,579Securitization bonds
    
    
    717
    
    
    
    793Capital lease obligations
    
    
    23
    
    
    
    254,306
    
    
    
    4,397Other LiabilitiesDeferred income taxes
    
    
    1,901
    
    
    
    1,871Regulatory liabilities
    
    
    720
    
    
    
    711Asset retirement obligations
    
    
    1,316
    
    
    
    1,285Unamortized investment tax credit
    
    
    73
    
    
    
    75Nuclear decommissioning
    
    
    142
    
    
    
    136Accrued pension liability  affiliates
    
    
    793
    
    
    
    987Accrued postretirement liability  affiliates
    
    
    1,064
    
    
    
    1,058Other
    
    
    234
    
    
    
    2396,243
    
    
    
    6,362Commitments and Contingencies (Notes 7 and 10)Shareholders EquityCommon stock, $10 par value, 400,000,000 shares authorized,
and 138,632,324 shares issued and outstanding
    
    
    3,196
    
    
    
    3,196Retained earnings
    
    
    708
    
    
    
    693Accumulated other comprehensive income (loss)
    
    
    (15
    )
    
    
    (16
    )3,889
    
    
    
    3,873Total Liabilities and Shareholders Equity
    
    $
    15,870
    
    
    $
    15,961
  5




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The Detroit Edison Company
 
 Consolidated Statements of Operations (Unaudited)
 Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Operating Revenues
    
    $
    1,146
    
    
    $
    1,118Operating ExpensesFuel and purchased power
    
    
    343
    
    
    
    340Operation and maintenance
    
    
    309
    
    
    
    316Depreciation and amortization
    
    
    204
    
    
    
    188Taxes other than income
    
    
    65
    
    
    
    60Asset gains, net
    
    
    (1
    )
    
    
    920
    
    
    
    904Operating Income
    
    
    226
    
    
    
    214Other (Income) and DeductionsInterest expense
    
    
    81
    
    
    
    79Other income
    
    
    (8
    )
    
    
    (7
    )Other expenses
    
    
    6
    
    
    
    1279
    
    
    
    84Income Before Income Taxes
    
    
    147
    
    
    
    130Income Tax Provision
    
    
    56
    
    
    
    52Net Income
    
    $
    91
    
    
    $
    78
  6




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The Detroit Edison Company
 
 Consolidated Statements of Cash Flows (Unaudited)
 Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Operating ActivitiesNet income
    
    $
    91
    
    
    $
    78Adjustments to reconcile net income to net cash from operating activities:Depreciation and amortization
    
    
    204
    
    
    
    188Deferred income taxes
    
    
    5
    
    
    
    (4
    )Asset gains, net
    
    
    1
    
    
    
    Changes in assets and liabilities, exclusive of changes shown separately
    
    
    76
    
    
    
    154Net cash from operating activities
    
    
    375
    
    
    
    416Investing ActivitiesPlant and equipment expenditures
    
    
    (177
    )
    
    
    (263
    )Restricted cash for debt redemptions
    
    
    51
    
    
    
    64Proceeds from sale of nuclear decommissioning trust fund assets
    
    
    59
    
    
    
    113Investment in nuclear decommissioning trust funds
    
    
    (68
    )
    
    
    (113
    )Other
    
    
    50
    
    
    
    (286
    )Net cash used for investing activities
    
    
    (85
    )
    
    
    (485
    )Financing ActivitiesRedemption of long-term debt
    
    
    (85
    )
    
    
    (81
    )Capital contribution by parent company
    
    
    
    
    
    
    250Dividends on common stock
    
    
    (76
    )
    
    
    (76
    )Other
    
    
    (2
    )
    
    
    (3
    )Net cash from (used for) financing activities
    
    
    (163
    )
    
    
    90Net Increase in Cash and Cash Equivalents
    
    
    127
    
    
    
    21Cash and Cash Equivalents at Beginning of the Period
    
    
    34
    
    
    
    30Cash and Cash Equivalents at End of the Period
    
    $
    161
    
    
    $
    51
  7




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The Detroit Edison Company
 
 Consolidated Statements of Changes in Shareholders Equity and Comprehensive Income (Unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid In
    
    
    Retained
    
    
    Comprehensive(Dollars in Millions, shares in thousands)
    
    Shares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Loss
    
    
    TotalBalance, December 31, 2009
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,810
    
    
    $
    693
    
    
    $
    (16
    )
    
    $
    3,873Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    91
    
    
    
    
    
    
    
    91Dividends declared on common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76
    )
    
    
    
    
    
    
    (76
    )Benefit obligations, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Balance, March 31, 2010
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,810
    
    
    $
    708
    
    
    $
    (15
    )
    
    $
    3,889
  (in Millions)
    
    2010
    
    
    2009Net income
    
    $
    91
    
    
    $
    78Other comprehensive income, net of tax:Benefit obligations, net of taxes
    
    
    1
    
    
    
    Net unrealized gains on investments:Amounts reclassified to income, net of taxes
    
    
    
    
    
    
    1Comprehensive income
    
    $
    92
    
    
    $
    79
  8




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The Detroit Edison Company
 
 Notes to Consolidated Financial Statements (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
 Corporate Structure
   Basis of Presentation
     Principles of Consolidation  Variable Interest Entity (VIE)
 Amendments to FASB Interpretation 46(R)
    9




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March 31,(in Millions)
    
    2010ASSETSRestricted cash
    
    $
    $27Accounts receivable
    
    
    40Securitized regulatory assets
    
    
    835Other assets
    
    
    18$
    920LIABILITIESAccounts payable and accrued current liabilities
    
    $
    5Current portion long-term debt, including capital leases
    
    
    144Other current liabilities
    
    
    36Securitization bonds
    
    
    717Other long term liabilities
    
    
    6$
    908
 NOTE 2  SIGNIFICANT ACCOUNTING POLICIES
 Income Taxes
  Stock-Based Compensation
  NOTE 3  NEW ACCOUNTING PRONOUNCEMENTS
 Variable Interest Entity
 Amendments to FASB Interpretation 46(R). Consolidation
 Fair Value Measurements and Disclosures
 Improving Disclosures about Fair Value Measurements
 10




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NOTE 4  FAIR VALUE
   
 
 
  Net Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    March 31, 2010Assets:Cash equivalents
    
    $
    137
    
    
    $
    
    
    
    $
    
    
    
    $
    137Nuclear decommissioning trusts
    
    
    577
    
    
    
    282
    
    
    
    
    
    
    
    859Other investments
    
    
    43
    
    
    
    54
    
    
    
    
    
    
    
    97Derivative assets  FTRs
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Total
    
    $
    757
    
    
    $
    336
    
    
    $
    1
    
    
    $
    1,094Liabilities:Derivative liabilities  Emissions
    
    
    
    
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )Total
    
    $
    
    
    
    $
    (8
    )
    
    $
    
    
    
    $
    (8
    )Net Assets at March 31, 2010
    
    $
    757
    
    
    $
    328
    
    
    $
    1
    
    
    $
    1,086Assets:Current(1)
    
    $
    137
    
    
    $
    
    
    
    $
    1
    
    
    $
    138Noncurrent(2)
    
    
    620
    
    
    
    336
    
    
    
    
    
    
    
    956Total Assets
    
    $
    757
    
    
    $
    336
    
    
    $
    1
    
    
    $
    1,094Liabilities:Current
    
    $
    
    
    
    $
    (5
    )
    
    $
    
    
    
    $
    (5
    )Noncurrent
    
    
    
    
    
    
    (3
    )
    
    
    
    
    
    
    (3
    )Total Liabilities
    
    $
    
    
    
    $
    (8
    )
    
    $
    
    
    
    $
    (8
    )Net Assets at March 31, 2010
    
    $
    757
    
    
    $
    328
    
    
    $
    1
    
    
    $
    1,086
 11




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(1)
    
    Includes $137 million of cash equivalents that are included in the Consolidated Statements of
Financial Position in Cash and Cash Equivalents.(2)
    
    Includes $97 million of other investments that are included in the Consolidated Statements of
Financial Position in Other Investments.  Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Asset balance as of January 1
    
    $
    2
    
    
    
    4Changes in fair value recorded in regulatory assets/liabilities
    
    
    (1
    )
    
    
    (2
    )Transfers in/out of Level 3
    
    
    
    
    
    
    (2
    )Asset balance as of March 31
    
    $
    1
    
    
    $
    The amount of total gains (losses) included in regulatory
assets and liabilities attributed to the change in unrealized
gains (losses) related to regulatory assets and liabilities
held at March 31, 2010 and 2009
    
    $
    
    
    
    $
    1
  Cash Equivalents
  Nuclear Decommissioning Trusts and Other Investments
  12




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Derivative Assets and Liabilities
  Fair Value of Financial Instruments
  March 31, 2010
    
    
    December 31, 2009Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-Term Debt
    
    $5.1 billion
    
    $4.9 billion
    
    $5.2 billion
    
    $5.0 billion
 Nuclear Decommissioning Trust Funds
    13




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March 31,
    
    
    December 31,(in Millions)
    
    2010
    
    
    2009Fermi 2
    
    $
    831
    
    
    $
    790Fermi 1
    
    
    2
    
    
    
    3Low level radioactive waste
    
    
    26
    
    
    
    24Total
    
    $
    859
    
    
    $
    817
  Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Realized gains
    
    $
    9
    
    
    $
    17Realized losses
    
    $
    (8
    )
    
    $
    (26
    )Proceeds from sales of securities
    
    $
    59
    
    
    $
    113
  Fair
    
    
    Unrealized(in Millions)
    
    Value
    
    
    GainsAs of March 31, 2010Equity securities
    
    $
    445
    
    
    $
    152Debt securities
    
    
    401
    
    
    
    19Cash and cash equivalents
    
    
    13
    
    
    
    $
    859
    
    
    $
    171As of December 31, 2009Equity securities
    
    $
    420
    
    
    $
    135Debt securities
    
    
    388
    
    
    
    17Cash and cash equivalents
    
    
    9
    
    
    
    $
    817
    
    
    $
    152
   14




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Other Available-For-Sale Securities
  March 31, 2010
    
    
    December 31, 2009(in Millions)
    
    Fair Value
    
    
    Carrying value
    
    
    Fair Value
    
    
    Carrying ValueCash equivalents
    
    $
    53
    
    
    $
    53
    
    
    $
    105
    
    
    $
    105Equity securities
    
    $
    4
    
    
    $
    4
    
    
    $
    4
    
    
    $
    4
  NOTE 5  FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS
    Balance Sheet
    
    
    Fair(in Millions)
    
    Location
    
    
    ValueFTRs
    
    Other current assets
    
    $
    1Emissions
    
    Other current liabilities
    
    
    (5
    )Emissions
    
    Other non-current liabilities
    
    
    (3
    )Total derivatives not designated as hedging instrument
    
    
    
    
    
    $
    (7
    )Total derivatives:Current
    
    
    
    
    
    $
    (4
    )Noncurrent
    
    
    
    
    
    
    (3
    )Total derivatives as reported
    
    
    
    
    
    $
    (7
    )
 15




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Commodity
    
    Number of UnitsEmissions (Tons)
    
    
    4,486FTRs (MW)
    
    
    6,142
 NOTE 6  ASSET RETIREMENT OBLIGATIONS
  (in Millions)Asset retirement obligations at January 1, 2010
    
    $
    1,300Accretion
    
    
    21Liabilities incurred
    
    
    9Liabilities settled
    
    
    (1
    )Asset retirement obligations at March 31, 2010
    
    
    1,329Less amount included in current liabilities
    
    
    (13
    )$
    1,316
  NOTE 7  REGULATORY MATTERS
 Energy Optimization Plans
  Detroit Edison Uncollectible Expense True-Up Mechanism (UETM)
  16




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Power Supply Cost Recovery Proceedings
   PSCR Cost of
    
    Description of NetPSCR Year
    
    Date Filed
    

Net Over-recovery
    
    Power Sold
    
    Over-recovery2009
    
    March 2010
    
    $15.6 million
    
    $1.1 billion
    
    The total amount reflects an over-recovery of  $10.9 million, plus $4.7 million in accrued interest due to customers
 Other
  NOTE 8  LONG-TERM DEBT
  NOTE 9  SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
  NOTE 10  COMMITMENTS AND CONTINGENCIES
 Environmental
 Air
  17




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Water
 Contaminated Sites
 Landfill
 Nuclear Operations
 Property Insurance
     18




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Public Liability Insurance
  Nuclear Fuel Disposal Costs
  Guarantees
   Labor Contracts
  Purchase Commitments
  Bankruptcies
  19




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Other Contingencies
   NOTE 11  RETIREMENT BENEFITS AND TRUSTEED ASSETS
  Other Postretirement(in Millions)
    
    Pension Benefits
    
    
    BenefitsThree Months Ended March 31
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    13
    
    
    $
    11
    
    
    $
    13
    
    
    $
    12Interest cost
    
    
    38
    
    
    
    39
    
    
    
    24
    
    
    
    26Expected return on plan assets
    
    
    (43
    )
    
    
    (41
    )
    
    
    (13
    )
    
    
    (10
    )Amortization of:Net actuarial loss
    
    
    18
    
    
    
    9
    
    
    
    9
    
    
    
    12Prior service cost
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    Net transition liability
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Net periodic benefit cost
    
    $
    27
    
    
    $
    20
    
    
    $
    34
    
    
    $
    41
 Pension and other Postretirement Contributions
   Healthcare Legislation
   20




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NOTE 12  SUPPLEMENTAL CASH FLOW INFORMATION
  Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Changes in Assets and Liabilities, Exclusive of Changes Shown SeparatelyAccounts receivable, net
    
    $
    75
    
    
    $
    35Inventories
    
    
    
    
    
    
    13Accrued pension liability  affiliates
    
    
    (93
    )
    
    
    (42
    )Accounts payable
    
    
    21
    
    
    
    (11
    )Accrued PSCR refund
    
    
    (3
    )
    
    
    75Income taxes payable
    
    
    77
    
    
    
    56Postretirement obligation  affiliates
    
    
    6
    
    
    
    10Other assets
    
    
    (9
    )
    
    
    60Other liabilities
    
    
    2
    
    
    
    (42
    )$
    76
    
    
    $
    154
 21




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##### Table of Contents



Part I  Item 2.
 
 Part I  Item 2.
 The Detroit Edison Company
 Managements Narrative Analysis of Results of Operations
   Three Months EndedMarch 31(in Millions)
    
    2010
    
    
    2009Operating Revenues
    
    $
    1,146
    
    
    $
    1,118Fuel and Purchased Power
    
    
    343
    
    
    
    340Gross Margin
    
    
    803
    
    
    
    778Operation and Maintenance
    
    
    309
    
    
    
    316Depreciation and Amortization
    
    
    204
    
    
    
    188Taxes Other Than Income
    
    
    65
    
    
    
    60Asset Gains, Net
    
    
    (1
    )
    
    
    Operating Income
    
    
    226
    
    
    
    214Other (Income) and Deductions
    
    
    79
    
    
    
    84Income Tax Provision
    
    
    56
    
    
    
    52Net Income
    
    $
    91
    
    
    $
    78Operating Income as a Percentage of Operating Revenues
    
    
    20
    %
    
    
    19
    %
 Gross margin
 (in Millions)
    
    Three MonthsJanuary 2010 rate order
    
    $
    53Securitization bond and tax surcharge rate increase
    
    
    13Restoration tracker
    
    
    (10
    )Regulatory Asset Revenue surcharge
    
    
    (13
    )Other
    
    
    (18
    )Increase in gross margin
    
    $
    25
 Three Months EndedMarch 31(in Thousands of MWh)
    
    2010
    
    
    2009Electric SalesResidential
    
    
    3,665
    
    
    
    3,738Commercial
    
    
    3,942
    
    
    
    4,423Industrial
    
    
    2,475
    
    
    
    2,637Other
    
    
    802
    
    
    
    81710,884
    
    
    
    11,615Interconnections sales (1)
    
    
    1,310
    
    
    
    1,035Total Electric Sales
    
    
    12,194
    
    
    
    12,650Electric DeliveriesRetail and Wholesale
    
    
    10,884
    
    
    
    11,615Electric Customer Choice, including self generators (2)
    
    
    1,103
    
    
    
    317Total Electric Sales and Deliveries
    
    
    11,987
    
    
    
    11,932
 
 (1)
    
    Represents power that is not distributed by Detroit Edison.(2)
    
    Includes deliveries for self generators who have purchased power from alternative energy
suppliers to supplement their power requirements. 22




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##### Table of Contents



Three Months EndedPower Generated and Purchased
    
    March 31(in Thousands of MWh)
    
    2010
    
    
    2009Power Plant GenerationFossil
    
    
    9,520
    
    
    
    9,842Nuclear
    
    
    2,200
    
    
    
    2,25411,720
    
    
    
    12,096Purchased Power
    
    
    1,322
    
    
    
    1,352System Output
    
    
    13,042
    
    
    
    13,448Less Line Loss and Internal Use
    
    
    (848
    )
    
    
    (798
    )Net System Output
    
    
    12,194
    
    
    
    12,650Average Unit Cost ($/MWh)Generation (1)
    
    $
    18.78
    
    
    $
    17.30Purchased Power
    
    $
    32.30
    
    
    $
    33.94Overall Average Unit Cost
    
    $
    20.15
    
    
    $
    18.97
 
 (1)
    
    Represents fuel costs associated with power plants. Operation and maintenance
 Outlook
  Capital Resources and Liquidity
   23




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24




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##### Table of Contents



Part I  Item 4.
 Part I  Item 4.
  CONTROLS AND PROCEDURES
 Evaluation of disclosure controls and procedures
  (b) Changes in internal control over financial reporting
  25




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Part II  Other Information
 
 Item 1.  Legal Proceedings
  26




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##### Table of Contents



Item 6.   Exhibits
 ExhibitNumber
    
    DescriptionExhibits filed herewith:31-55
    
    Chief Executive Officer Section 302 Form 10-Q Certification31-56
    
    Chief Financial Officer Section 302 Form 10-Q CertificationExhibits furnished herewith:32-55
    
    Chief Executive Officer Section 906 Form 10-Q Certification32-56
    
    Chief Financial Officer Section 906 Form 10-Q Certification
 27




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##### Table of Contents



SIGNATURE
  THE DETROIT EDISON COMPANY
(Registrant)Date: April 28, 2010
    /s/ PETER B. OLEKSIAKPeter B. OleksiakVice President, Controller and Investor Relations
and Chief Accounting Officer 28