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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549




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FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2002

Commission file number 1-2198

The registrant 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

(Exact name of registrant as specified in its charter)


|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Michigan                                                       |  | 38-0478650                          
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|(State or other jurisdiction of incorporation or
organization) |  | (I.R.S. Employer
Identification No.)
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|2000 2nd Avenue, Detroit, Michigan                             |  | 48226-1279                          
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|(Address of principal executive offices)                       |  | (Zip Code)                          

313-235-8000
(Registrants telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes (X BOX) No(BOX)



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TABLE OF CONTENTS



|                                          |                                                                          |                                                           |  |  |  |  |  | 
|----------------------------------------- | ------------------------------------------------------------------------ | --------------------------------------------------------- |  |  |  |  |  | 
|Definitions                              
|Part I  Financial Information           
|                                          | Item 1. Financial Statements                                            
|                                          |                                                                          | Consolidated Statement of Operations                     
|                                          |                                                                          | Consolidated Statement of Financial Position             
|                                          |                                                                          | Consolidated Statement of Cash Flows                     
|                                          |                                                                          | Consolidated Statement of Changes in Shareholders Equity
|                                          |                                                                          | Notes to Consolidated Financial Statements               
|                                          |                                                                          | INDEPENDENT ACCOUNTANTS REPORT                          
|                                          | Item 2. Managements Narrative Analysis of the Results of Operations.. 4
|Part II  Other Information              
|                                          | Item 6. Exhibits and Reports on Form 8-K                                
|Signature                                
|Awareness Letter of Deloitte & Touche LLP



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##### Table of Contents



The Detroit Edison Company

Quarterly Report on Form 10-Q
Quarter Ended March 31, 2002

Table of Contents

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|Definitions                    |  |                                                              |  |      | 3  | 
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|Part I  Financial Information |  |                                                              |  |     
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|Item 1.                        |  | Financial Statements                                         |  |      |    | 
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|                               |  | Consolidated Statement of Operations                         |  |      | 9  | 
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|                               |  | Consolidated Statement of Financial Position                 |  |      | 10 | 
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|                               |  | Consolidated Statement of Cash Flows                         |  |      | 12 | 
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|                               |  | Consolidated Statement of Changes in Shareholders Equity    |  |      | 13 | 
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|                               |  | Notes to Consolidated Financial Statements                   |  |      | 14 | 
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|                               |  | Independent Accountants Report                              |  |      | 18 | 
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|Item 2.                        |  | Managements Narrative Analysis of the Results of Operations |  |      | 4  | 
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|Part II
 Other
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|Item 6.                        |  | Exhibits and Reports on Form 8-K                             |  |      | 19 | 
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|Signature                      |  |                                                              |  |      | 20 | 

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Definitions



|Customer Choice |  |  |  | The choice program is a statewide initiative giving customers
in Michigan the option to choose alternative suppliers for electricity.                                                                                                                                                                                              
|--------------- |  |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
|DTE Energy      |  |  |  | DTE Energy Company and Subsidiary Companies                                                                                                                                                                                                                                                                                        
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
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|Detroit Edison  |  |  |  | The Detroit Edison Company (a wholly owned subsidiary of DTE
Energy Company) and Subsidiary Companies                                                                                                                                                                                                                              
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
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|Enterprises     |  |  |  | DTE Enterprises Inc. (successor to MCN Energy), a wholly owned
subsidiary of DTE Energy Company                                                                                                                                                                                                                                    
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
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|EPA             |  |  |  | United States Environmental Protection Agency                                                                                                                                                                                                                                                                                      
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|FERC            |  |  |  | Federal Energy Regulatory Commission                                                                                                                                                                                                                                                                                               
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|kWh             |  |  |  | Kilowatthour                                                                                                                                                                                                                                                                                                                       
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|MCN Energy      |  |  |  | MCN Energy Group Inc.                                                                                                                                                                                                                                                                                                              
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|MichCon         |  |  |  | Michigan Consolidated Gas Company                                                                                                                                                                                                                                                                                                  
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|MPSC            |  |  |  | Michigan Public Service Commission                                                                                                                                                                                                                                                                                                 
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|MW              |  |  |  | Megawatt                                                                                                                                                                                                                                                                                                                           
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|MWh             |  |  |  | Megawatthour                                                                                                                                                                                                                                                                                                                       
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|PSCR            |  |  |  | A power supply cost recovery mechanism authorized by the MPSC that
allowed Detroit Edison to recover through rates its fuel, fuel-related and
purchased power electric expenses. The clause was suspended under
Michigans restructuring legislation signed into law June 5, 2000, which
lowered and froze electric customer rates.
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|SEC             |  |  |  | Securities and Exchange Commission                                                                                                                                                                                                                                                                                                 
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|Securitization  |  |  |  | A mechanism used by Detroit Edison to refinance specific
stranded costs at lower interest rates through the sale of rate reduction
bonds.                                                                                                                                                                                          
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
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|SFAS            |  |  |  | Statement of Financial Accounting Standards                                                                                                                                                                                                                                                                                        
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|                |  |  |  |                                                                                                                                                                                                                                                                                                                                    
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|Stranded Costs  |  |  |  | Costs incurred by utilities in order to serve customers in a
regulated environment, but some of which may not be recoverable if
customers switch to alternative suppliers of electricity.                                                                                                                                          

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The Detroit Edison Company

Forward-Looking Statements

Certain information presented herein includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve certain risks and uncertainties that may
cause actual future results to differ materially from those contemplated,
projected, estimated or budgeted in such forward-looking statements. Factors
that may impact forward-looking statements include, but are not limited to,
interest rates, access to the capital markets, the level of borrowings,
weather, actual sales, changes in the cost of fuel and purchased power due to
the suspension of the Power Supply Cost Recovery mechanism, the effects of
competition and the implementation of electric Customer Choice programs, the
implementation of electric utility restructuring in Michigan, environmental and
nuclear requirements, the impact of FERC and MPSC proceedings and regulations
and the timing of the accretive effects of DTE Energys merger with MCN Energy.

Managements Narrative Analysis of the Results of Operations

The Results of Operations discussion for Detroit Edison is presented in
accordance with General Instruction H (2) (a) of Form 10-Q.

Detroit Edison reported earnings of $92 million for the 2002 first quarter,
compared to earnings of $113 million for the same period in 2001. The decrease
in earnings resulted from reduced contributions from Detroit Edisons Energy
Resources and Energy Distribution business units reflecting lower
sales and
the costs associated with two storms in the 2002 first quarter.

New reporting alignment- Beginning in 2002, Detroit Edisons parent company,
DTE Energy, realigned its internal and external financial reporting structure
into three strategic business units (Energy Resources, Energy Distribution and
Energy Gas) that have both regulated and non-regulated operations. This
structure is how management sets strategic goals, allocates resources and
evaluates performance. The realignment resulted in the following two
reportable segments for Detroit Edison:

Energy Resourcesincludes the power generation services of Detroit Edison.
Electricity is generated from Detroit Edisons numerous fossil plants or its
nuclear plant and sold to residential, commercial, industrial and wholesale
customers.

Energy Distributionincludes the electric distribution services of Detroit
Edison. Energy Distribution distributes electricity generated by Energy
Resources to Detroit Edisons 2.1 million residential, commercial and
industrial customers.

Energy Resources

Earnings declined $5 million during the 2002 first quarter reflecting lower
gross margins due to a decrease in operating revenues, partially offset by
lower fuel and purchased power costs. The operating revenues reduction was
attributable to a lower demand for power in the wholesale market, lower
industrial electric sales due to a slower economy, as well as the impact of a
5% legislatively mandated, securitization based, rate reduction for commercial and
industrial customers that began in April 2001. Fuel and
purchased power costs reflect lower electricity sales and favorable energy
market prices. Partially offsetting the impact of lower gross margins was
reduced depreciation and amortization expense due to the extension of the
amortization period for certain regulatory assets that were securitized in
March 2001.

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Managements Narrative Analysis of the Results of Operations

|                               |  |                    |     |      |  |   |     | 
|------------------------------ |  | ------------------ | --- | ---- |  | - | --- | 
|                               |  | Three Months Ended
|                               |  | March 31          
|                               |  |                   
|                               |  | 2002               |     | 2001
|                               |  |                    |     |     
|(in Millions)                  |  |                    |     |      |  |   |     | 
|                              
|                              
|                              
|                              
|Operating revenues             |  | $                  | 617 |      |  | $ | 703 | 
|                              
|                              
|                              
|                              
|Less: Fuel and purchased power |  |                    | 188 |      |  |   | 244 | 
|                               |  |                    |     |      |  |   |    
|                              
|                              
|                              
|                              
|Gross margin                   |  | $                  | 429 |      |  | $ | 459 | 
|                               |  |                    |     |      |  |   |     | 
|Net income                     |  | $                  | 71  |      |  | $ | 76  | 
|                               |  |                    |     |      |  |   |     | 

System output and average fuel and purchased power
costs were as follows:

|                              |                     |  |                    |       |      |  |        |        | 
|----------------------------- | ------------------- |  | ------------------ | ----- | ---- |  | ------ | ------ | 
|                              |                     |  | Three Months Ended
|                              |                     |  | March 31          
|                              |                     |  |                   
|                              |                     |  | 2002               |       | 2001
|                              |                     |  |                    |       |     
|(in Thousands of MWh)         |                     |  |                    |       |      |  |        |       
|                             
|                             
|                             
|                             
|Power generated and purchased |                     |  |                    |       |      |  |        |       
|                             
|                             
|                             
|                             
|Power plant generation        |                     |  |                    |       |      |  |        |       
|                             
|                             
|                             
|                             
|                              | Fossil              |  |                    | 9,111 |      |  |        | 10,228 | 
|                             
|                             
|                             
|                             
|                              | Nuclear             |  |                    | 2,290 |      |  |        | 2,413  | 
|                             
|                             
|                             
|                             
|Purchased power               |                     |  | 1,640              |       |      |  | 1,532  |       
|                              |                     |  |                    |       |      |  |        |       
|                             
|                             
|                             
|                             
|System output                 |                     |  | 13,041             |       |      |  | 14,173 |       
|                              |                     |  |                    |       |      |  |        |       
|Average unit cost ($/MWh)     |                     |  |                    |       |      |  |        |       
|                             
|                             
|                             
|                             
|                              | Generation (1)      |  | $                  | 12.09 |      |  | $      | 12.34  | 
|                              |                     |  |                    |       |      |  |        |       
|                              | Purchased power (2) |  | $                  | 30.10 |      |  | $      | 43.32  | 
|                              |                     |  |                    |       |      |  |        |       



|(1) |  | Represents fuel costs associated with power plants.                                  
|--- |  | -------------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | The average purchased power amounts include gains and losses from
hedging activities.

Outlook Regulatory changes have resulted and will continue to result in
increased competition in the electric generation business. Effective January
1, 2002, the electric Customer Choice program was expanded whereby all electric
customers can choose to purchase their electricity from suppliers other than
their local utility. Detroit Edison expects to lose 5% to 8% of its retail
sales as a result of customers choosing to participate in the electric Customer
Choice program during 2002. To the extent Detroit Edison experiences net
stranded costs as a result of customers switching to an alternative electric
supplier, Michigan legislation provides for the recovery of such stranded
costs. Detroit Edison has issues with the MPSCs methodology of calculating
net stranded costs and has asked for rehearing, clarification and substantial
changes on certain aspects of the applicable order. See Note 2.

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Managements Narrative Analysis of the Results of Operations

Energy Distribution

Earnings declined $16 million during the 2002 first quarter due primarily to
increased operation and maintenance expenses. The significantly higher operation and maintenance
expenses are attributable to approximately $25 million of costs associated with
restoring power to customers who lost service during two storms in the 2002
period.

|                               |  |                    |     |      |  |   |     | 
|------------------------------ |  | ------------------ | --- | ---- |  | - | --- | 
|                               |  | Three Months Ended
|                               |  | March 31          
|                               |  |                   
|                               |  | 2002               |     | 2001
|                               |  |                    |     |     
|(in Millions)                  |  |                    |     |      |  |   |     | 
|                              
|                              
|                              
|                              
|Operating revenues             |  | $                  | 313 |      |  | $ | 321 | 
|                              
|                              
|                              
|                              
|Less: Fuel and purchased power |  |                    | 9   |      |  |   | 15  | 
|                               |  |                    |     |      |  |   |     | 
|                              
|                              
|                              
|                              
|Gross margin                   |  | $                  | 304 |      |  | $ | 306 | 
|                               |  |                    |     |      |  |   |     | 
|Net income                     |  | $                  | 21  |      |  | $ | 37  | 
|                               |  |                    |     |      |  |   |     | 

|                      |  |                    |        |      |  |  |        | 
|--------------------- |  | ------------------ | ------ | ---- |  |  | ------ | 
|                      |  | Three Months Ended
|                      |  | March 31          
|                      |  |                   
|                      |  | 2002               |        | 2001
|                      |  |                    |        |     
|Sales                 |  |                    |        |      |  |  |        | 
|                     
|                     
|                     
|                     
|(in Thousands of MWh) |  |                    |        |      |  |  |        | 
|                     
|                     
|                     
|                     
|Residential           |  |                    | 3,720  |      |  |  | 3,671  | 
|                     
|                     
|                     
|                     
|Commercial            |  |                    | 4,342  |      |  |  | 4,502  | 
|                     
|                     
|                     
|                     
|Industrial            |  |                    | 3,332  |      |  |  | 3,674  | 
|                     
|                     
|                     
|                     
|Wholesale             |  |                    | 125    |      |  |  | 727    | 
|                     
|                     
|                     
|                     
|Customer
choice       |  |                    | 318    |      |  |  | 165    | 
|                     
|                     
|                     
|                     
|Other                 |  |                    | 655    |      |  |  | 674    | 
|                      |  |                    |        |      |  |  |        | 
|                      |  |                    | 12,492 |      |  |  | 13,413 | 
|                      |  |                    |        |      |  |  |        | 

Outlook Regulated electric system sales are expected to remain relatively
flat in 2002 due to the slow economic recovery and to grow modestly beginning
in 2003. Operating results will vary as a result of various external factors
such as weather, changes in economic conditions and the severity and frequency
of storms.

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Managements Narrative Analysis of the Results of Operations

CAPITAL RESOURCES AND LIQUIDITY

|                                                     |                      |   |              |      |      |   |     |      |  
|---------------------------------------------------- | -------------------- | - | ------------ | ---- | ---- | - | --- | ---- | -
|                                                     |                      |   | Three Months
|                                                     |                      |   | March 31    
|                                                     |                      |   |             
|                                                     |                      |   | 2002         |      | 2001
|                                                     |                      |   |              |      |     
|Cash and Cash Equivalents                            |                      |   |              |      |      |   |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|(in Millions)                                        |                      |   |              |      |      |   |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|Cash Flow From (Used For)                            |                      |   |              |      |      |   |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Operating activities |   | $            | (49  | )    |   | $   | 238  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Investing activities |   |              | (134 | )    |   |     | (219 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Financing activities |   |              | (15  | )    |   |     | 434  |  
|                                                     |                      |   |              |      |      |   |     |     
|Net Increase (Decrease) in Cash and Cash Equivalents |                      | $ | (198         | )    |      | $ | 453 |     
|                                                     |                      |   |              |      |      |   |     |     

Operating Activities

Net cash from operating activities decreased $287 million in the first quarter
2002 due to higher working capital levels, reduced electricity sales,
incremental storm restoration costs, and the impact of the 5% rate reduction as
part of securitization.

Higher working capital levels reflect increased customer receivables of $77
million, largely the result of the impact of the economy and the implementation
of a new billing system which has contributed to higher receivable agings.
Management is focused on these issues and expects lower receivables outstanding
over the short term. In addition, lower accounts payable levels, to more
normalized levels, represents the internal focus on managing external payments
and taking greater advantage of purchase discounts.

Inventory levels were up in 2002 related to coal supply that was not utilized
in the generation production process.

A significant portion of the decline in operating cash flow is timing related
that is expected to reverse during the remainder of 2002 and early 2003.

Investing Activities

Net cash used for investing activities decreased $85 million in the first
quarter 2002 due to lower investments in regulatory assets associated with
securitizing the companys Fermi 2 power generation facility in March 2001.
Partially offsetting this increase are higher plant and equipment expenditures
associated with new air quality regulations which require the reduction in
nitrogen oxide levels. Proceeds from the reduction in cash that was
restricted for debt redemptions also affected the comparison.

Financing Activities

Net cash from financing activities declined $449 million during the 2002 first
quarter. This change is due primarily to the issuance of $1.75 billion of
securitization bonds in 2001 and changes in short-term borrowings, redemptions
of long-term debt and repurchases of common stock.

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Managements Narrative Analysis of the Results of Operations

ENVIRONMENTAL MATTERS

EPA ozone transport regulations and final
new air quality standards relating to ozone and particulate air pollution will
impact the Company. Detroit Edison has spent approximately $281 million
through March 2002 and estimates that it will incur an additional $350 to $500
million of future capital expenditures over the next three years to
comply.

NEW ACCOUNTING PRONOUNCEMENTS

During 2001, the Financial Accounting Standards
Board (FASB) issued new accounting pronouncements concerning goodwill
and other intangible assets, asset retirement obligations and
impairment or disposal of long-lived assets. See Note 4 for a
discussion of Detroit Edisons evaluation of the adoption of
these new accounting pronouncements.

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The Detroit Edison Company
Consolidated Statement of Operations (Unaudited)

|                                       |                               |                                  |     |                    |     |      |       |     |     | 
|-------------------------------------- | ----------------------------- | -------------------------------- | --- | ------------------ | --- | ---- | ----- | --- | --- | 
|                                       |                               |                                  |     | Three Months Ended
|                                       |                               |                                  |     | March 31          
|                                       |                               |                                  |     |                   
|                                       |                               |                                  |     | 2002               |     | 2001
|                                       |                               |                                  |     |                    |     |     
|(in Millions)                          |                               |                                  |     |                    |     |      |       |    
|                                      
|                                      
|                                      
|                                      
|Operating Revenues                     |                               | $                                | 930 |                    |     | $    | 1,024 |    
|                                       |                               |                                  |     |                    |     |      |       |    
|Operating Expenses                     |                               |                                  |     |                    |     |      |       |    
|                                      
|                                      
|                                      
|                                      
|                                       | Fuel and purchased power      |                                  |     | 201                |     |      |       | 269 |    
|                                      
|                                      
|                                      
|                                      
|                                       | Operation and maintenance     |                                  |     | 284                |     |      |       | 256 |    
|                                      
|                                      
|                                      
|                                      
|                                       | Depreciation and amortization |                                  |     | 148                |     |      |       | 174 |    
|                                      
|                                      
|                                      
|                                      
|                                       | Taxes other than income       |                                  |     | 71                 |     |      |       | 79  |    
|                                       |                               |                                  |     |                    |     |      |       |    
|                                      
|                                      
|                                      
|                                      
|                                       |                               | Total Operating Expenses         |     |                    | 704 |      |       |     | 778 | 
|                                       |                               |                                  |     |                    |     |      |       |    
|Operating Income                       |                               |                                  | 226 |                    |     |      | 246   |    
|                                       |                               |                                  |     |                    |     |      |       |    
|Interest Expense and Other             |                               |                                  |     |                    |     |      |       |    
|                                      
|                                      
|                                      
|                                      
|                                       | Interest expense              |                                  |     | 78                 |     |      |       | 72  |    
|                                      
|                                      
|                                      
|                                      
|                                       | Other  net                   |                                  |     | 10                 |     |      |       | 5   |    
|                                       |                               |                                  |     |                    |     |      |       |    
|                                      
|                                      
|                                      
|                                      
|                                       |                               | Total Interest Expense and Other |     |                    | 88  |      |       |     | 77  | 
|                                       |                               |                                  |     |                    |     |      |       |    
|Income Before Income Taxes             |                               |                                  | 138 |                    |     |      | 169   |    
|                                       |                               |                                  |     |                    |     |      |       |    
|Income Tax Provision                   |                               |                                  | 46  |                    |     |      | 53    |    
|                                       |                               |                                  |     |                    |     |      |       |    
|Income Before Accounting Change        |                               |                                  | 92  |                    |     |      | 116   |    
|                                      
|                                      
|                                      
|                                      
|Cumulative Effect of Accounting Change |                               |                                  |    |                    |     |      | (3    | )  
|                                       |                               |                                  |     |                    |     |      |       |    
|Net Income                             |                               | $                                | 92  |                    |     | $    | 113   |    
|                                       |                               |                                  |     |                    |     |      |       |    

See Notes to Consolidated Financial Statements (Unaudited)

9



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##### Table of Contents






The Detroit Edison Company
Consolidated Statement of Financial Position

|                              |                                     |                                                                              |        |             |     |             |        |        |     | 
|----------------------------- | ----------------------------------- | ---------------------------------------------------------------------------- | ------ | ----------- | --- | ----------- | ------ | ------ | --- | 
|                              |                                     |                                                                              |        | March 31    |     |             |        |       
|                              |                                     |                                                                              |        | 2002        |     | December 31
|                              |                                     |                                                                              |        | (Unaudited) |     | 2001       
|                              |                                     |                                                                              |        |             |     |            
|(in Millions)                 |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|Assets                        |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|Current Assets                |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              | Cash and cash equivalents           |                                                                              | $      | 17          |     |             | $      | 215    |    
|                             
|                             
|                             
|                             
|                              | Restricted cash                     |                                                                              |        | 24          |     |             |        | 68     |    
|                             
|                             
|                             
|                             
|                              | Accounts receivable                 |                                                                              |        |             |     |             |        |        |    
|                             
|                             
|                             
|                             
|                              |                                     | Customer (less allowance for doubtful accounts of $34 and
$27, respectively) |        |             | 357 |             |        |        | 356 | 
|                             
|                             
|                             
|                             
|                              |                                     | Accrued unbilled revenues                                                    |        |             | 134 |             |        |        | 130 | 
|                             
|                             
|                             
|                             
|                              |                                     | Other                                                                        |        |             | 97  |             |        |        | 95  | 
|                             
|                             
|                             
|                             
|                              | Inventories                         |                                                                              |        |             |     |             |        |        |    
|                             
|                             
|                             
|                             
|                              |                                     | Fuel                                                                         |        |             | 167 |             |        |        | 162 | 
|                             
|                             
|                             
|                             
|                              |                                     | Materials and supplies                                                       |        |             | 128 |             |        |        | 127 | 
|                             
|                             
|                             
|                             
|                              | Prepaid property taxes              |                                                                              |        | 73          |     |             |        |       |    
|                             
|                             
|                             
|                             
|                              | Other                               |                                                                              |        | 28          |     |             |        | 12     |    
|                              |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              |                                     |                                                                              | 1,025  |             |     |             | 1,165  |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|Investments                   |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              | Nuclear decommissioning trust funds |                                                                              |        | 430         |     |             |        | 417    |    
|                             
|                             
|                             
|                             
|                              | Other                               |                                                                              |        | 87          |     |             |        | 97     |    
|                              |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              |                                     |                                                                              | 517    |             |     |             | 514    |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|Property                      |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              | Property, plant and equipment       |                                                                              |        | 11,488      |     |             |        | 11,353 |    
|                             
|                             
|                             
|                             
|                              | Property under capital leases       |                                                                              |        | 220         |     |             |        | 219    |    
|                              |                                     |                                                                              |        |             |     |             |        |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|                              |                                     |                                                                              | 11,708 |             |     |             | 11,572 |       
|                             
|                             
|                             
|                             
|Less accumulated depreciation |                                     |                                                                              | (5,103 | )           |     |             | (5,010 | )     
|                              |                                     |                                                                              |        |             |     |             |        |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|                              |                                     |                                                                              | 6,605  |             |     |             | 6,562  |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|Other Assets                  |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              | Regulatory assets                   |                                                                              |        | 1,132       |     |             |        | 1,138  |    
|                             
|                             
|                             
|                             
|                              | Securitized regulatory assets       |                                                                              |        | 1,675       |     |             |        | 1,692  |    
|                             
|                             
|                             
|                             
|                              | Prepaid pensions                    |                                                                              |        | 154         |     |             |        | 106    |    
|                             
|                             
|                             
|                             
|                              | Other                               |                                                                              |        | 89          |     |             |        | 76     |    
|                              |                                     |                                                                              |        |             |     |             |        |       
|                             
|                             
|                             
|                             
|                              |                                     |                                                                              | 3,050  |             |     |             | 3,012  |       
|                              |                                     |                                                                              |        |             |     |             |        |       
|Total Assets                  |                                     | $                                                                            | 11,197 |             |     | $           | 11,253 |       
|                              |                                     |                                                                              |        |             |     |             |        |       

See Notes to Consolidated Financial Statements (Unaudited)

10



---



##### Table of Contents



The Detroit Edison Company
Consolidated Statement of Financial Position

|                                           |                                                                                                           |   |             |       |             |   |        |       |  
|------------------------------------------ | --------------------------------------------------------------------------------------------------------- | - | ----------- | ----- | ----------- | - | ------ | ----- | -
|                                           |                                                                                                           |   | March 31    |       |             |   |       
|                                           |                                                                                                           |   | 2002        |       | December 31
|                                           |                                                                                                           |   | (Unaudited) |       | 2001       
|                                           |                                                                                                           |   |             |       |            
|(in Millions, Except Shares)               |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|Liabilities and Shareholders Equity       |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|Current Liabilities                        |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           | Accounts payable                                                                                          |   | $           | 269   |             |   | $      | 303   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Accrued interest                                                                                          |   |             | 61    |             |   |        | 85    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Dividends payable                                                                                         |   |             | 74    |             |   |        | 74    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Accrued payroll                                                                                           |   |             | 71    |             |   |        | 89    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Short-term borrowings                                                                                     |   |             | 131   |             |   |        |      |  
|                                          
|                                          
|                                          
|                                          
|                                           | Deferred income taxes                                                                                     |   |             | 63    |             |   |        | 121   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Current portion long-term debt, including capital leases                                                  |   |             | 390   |             |   |        | 215   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Liabilities from risk management activities                                                               |   |             | 37    |             |   |        | 36    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Other                                                                                                     |   |             | 185   |             |   |        | 291   |  
|                                           |                                                                                                           |   |             |       |             |   |        |      
|                                           |                                                                                                           |   | 1,281       |       |             |   | 1,214  |      
|                                           |                                                                                                           |   |             |       |             |   |        |      
|Other Liabilities                          |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           | Deferred income taxes                                                                                     |   |             | 1,811 |             |   |        | 1,749 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Unamortized investment tax credit                                                                         |   |             | 154   |             |   |        | 156   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Nuclear decommissioning                                                                                   |   |             | 424   |             |   |        | 417   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Other                                                                                                     |   |             | 495   |             |   |        | 461   |  
|                                           |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                           |   | 2,884       |       |             |   | 2,783  |      
|                                           |                                                                                                           |   |             |       |             |   |        |      
|Long-Term Debt                             |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           | Mortgage bonds, notes and other                                                                           |   |             | 2,840 |             |   |        | 3,038 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Securitization bonds                                                                                      |   |             | 1,625 |             |   |        | 1,673 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Capital lease obligations                                                                                 |   |             | 88    |             |   |        | 87    |  
|                                           |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                           |   | 4,553       |       |             |   | 4,798  |      
|                                           |                                                                                                           |   |             |       |             |   |        |      
|Commitments and Contingencies (Note 3)     |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|Shareholders Equity                       |                                                                                                           |   |             |       |             |   |        |      
|                                          
|                                          
|                                          
|                                          
|                                           | Common stock, $10 par value, 400,000,000 shares
authorized, and 134,287,832 shares
issued and outstanding |   |             | 1,343 |             |   |        | 1,343 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Premium on common stock                                                                                   |   |             | 507   |             |   |        | 507   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Common stock expense                                                                                      |   |             | (44   | )           |   |        | (44   | )
|                                          
|                                          
|                                          
|                                          
|                                           | Accumulated other comprehensive loss                                                                      |   |             | (20   | )           |   |        | (23   | )
|                                          
|                                          
|                                          
|                                          
|                                           | Retained earnings                                                                                         |   |             | 693   |             |   |        | 675   |  
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                           |   |             |       |             |   |        |      
|                                           |                                                                                                           |   | 2,479       |       |             |   | 2,458  |      
|                                           |                                                                                                           |   |             |       |             |   |        |      
|Total Liabilities and Shareholders Equity |                                                                                                           | $ | 11,197      |       |             | $ | 11,253 |      
|                                           |                                                                                                           |   |             |       |             |   |        |      

See Notes to Consolidated Financial Statements (Unaudited)

11



---



##### Table of Contents






The Detroit Edison Company
Consolidated Statement of Cash Flows (Unaudited)

|                                                     |                                                                            |                                               |                        |      |                    |      |      |       |      |     |  
|---------------------------------------------------- | -------------------------------------------------------------------------- | --------------------------------------------- | ---------------------- | ---- | ------------------ | ---- | ---- | ----- | ---- | --- | -
|                                                     |                                                                            |                                               |                        |      | Three Months Ended
|                                                     |                                                                            |                                               |                        |      | March 31          
|                                                     |                                                                            |                                               |                        |      |                   
|                                                     |                                                                            |                                               |                        |      | 2002               |      | 2001
|                                                     |                                                                            |                                               |                        |      |                    |      |     
|(in Millions)                                        |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|Operating Activities                                 |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net Income                                                                 |                                               | $                      | 92   |                    |      | $    | 113   |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Adjustments to reconcile net income to net cash from
operating activities: |                                               |                        |      |                    |      |      |       |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Depreciation and amortization                 |                        |      | 147                |      |      |       | 174  |    
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Changes in current assets and liabilities:    |                        |      |                    |      |      |       |      |    
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Accounts receivable    |      |                    | (5   | )    |       |      | 72  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Inventories            |      |                    | (6   | )    |       |      | 17  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Prepaid pensions       |      |                    | (47  | )    |       |      | 4   |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Prepaid property taxes |      |                    | (73  | )    |       |      | (76 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Payables               |      |                    | (153 | )    |       |      | (57 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               | Other                  |      |                    | (4   | )    |       |      | (9  | )
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|                                                     |                                                                            | Net cash (used for) from operating activities |                        |      | (49                | )    |      |       | 238  |    
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|Investing Activities                                 |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Plant and equipment expenditures                                           |                                               |                        | (145 | )                  |      |      | (126  | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Restricted cash for debt redemptions                                       |                                               |                        | 44   |                    |      |      | (15   | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Other investments                                                          |                                               |                        | (33  | )                  |      |      | (78   | )   
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|                                                     |                                                                            | Net cash used for investing activities        |                        |      | (134               | )    |      |       | (219 | )  
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|Financing Activities                                 |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Issuance of long-term debt                                                 |                                               |                        |     |                    |      |      | 1,750 |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Redemption of long-term debt                                               |                                               |                        | (71  | )                  |      |      | (150  | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Short-term borrowings, net                                                 |                                               |                        | 131  |                    |      |      | (245  | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Capital lease obligations                                                  |                                               |                        | (1   | )                  |      |      | (3    | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Repurchase of common stock                                                 |                                               |                        |     |                    |      |      | (838  | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Dividends on common stock                                                  |                                               |                        | (74  | )                  |      |      | (80   | )   
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Net cash (used for) from financing activities |                        |      | (15                | )    |      |       | 434  |    
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|Net Increase (Decrease) in Cash and Cash Equivalents |                                                                            |                                               | (198                   | )    |                    |      | 453  |      
|                                                    
|                                                    
|                                                    
|                                                    
|Cash and Cash Equivalents at Beginning of the Period |                                                                            |                                               | 215                    |      |                    |      | 24   |      
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|Cash and Cash Equivalents at End of the Period       |                                                                            | $                                             | 17                     |      |                    | $    | 477  |      
|                                                     |                                                                            |                                               |                        |      |                    |      |      |      
|Supplementary Cash Flow Information                  |                                                                            |                                               |                        |      |                    |      |      |      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Interest paid (excluding interest capitalized)                             |                                               | $                      | 102  |                    |      | $    | 66    |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Income taxes paid                                                          |                                               | $                      | 55   |                    |      | $    | 41    |     

See Notes to Consolidated Financial Statements (Unaudited)

12



---



##### Table of Contents






The Detroit Edison Company
Consolidated Statement of Changes in Shareholders Equity
(Unaudited)

|                                                           |  |              |         |        |  |        |       |          |  |               |     |       |  |       |     |   |  |   |     |             |  |   |     |   |  |   |       |  
|---------------------------------------------------------- |  | ------------ | ------- | ------ |  | ------ | ----- | -------- |  | ------------- | --- | ----- |  | ----- | --- | - |  | - | --- | ----------- |  | - | --- | - |  | - | ----- | -
|                                                           |  |              |         |        |  |        |       |          |  | Premium       |     |       |  |       |     |   |  |   |     | Accumulated |  |   |     |  
|                                                           |  | Common Stock |         | On     |  | Common |       |          |  |               |     | Other |  |       |     |  
|                                                           |  |              |         | Common |  | Stock  |       | Retained |  | Comprehensive |     |       |  |      
|                                                           |  | Shares       |         | Amount |  | Stock  |       | Expense  |  | Earnings      |     | Loss  |  | Total
|                                                           |  |              |         |        |  |        |       |          |  |               |     |       |  |      
|(Dollars in Millions,
Shares in Thousands)                 |  |              |         |        |  |        |       |          |  |               |     |       |  |       |     |   |  |   |     |             |  |   |     |   |  |   |       |  
|                                                          
|                                                          
|                                                          
|                                                          
|Balance, January 1, 2002                                   |  |              | 134,288 |        |  |        | 1,343 |          |  |               | 507 |       |  |       | (44 | ) |  | $ | 675 |             |  | $ | (23 | ) |  | $ | 2,458 |  
|                                                           |  |              |         |        |  |        |       |          |  |               |     |       |  |       |     |   |  |   |     |             |  |   |     |   |  |   |       |  
|Net income                                                 |  |              |        |        |  |        |      |          |  |               |    |       |  |       |    |   |  |   | 92  |             |  |   |    |   |  |   | 92    |  
|                                                          
|                                                          
|                                                          
|                                                          
|Dividends declared on
common stock                         |  |              |        |        |  |        |      |          |  |               |    |       |  |       |    |   |  |   | (74 | )           |  |   |    |   |  |   | (74   | )
|                                                          
|                                                          
|                                                          
|                                                          
|Net change in unrealized
losses on derivatives, net of tax |  |              |        |        |  |        |      |          |  |               |    |       |  |       |    |   |  |   |    |             |  |   | 3   |   |  |   | 3     |  
|                                                           |  |              |         |        |  |        |       |          |  |               |     |       |  |       |     |   |  |   |     |             |  |   |     |   |  |   |       |  
|Balance, March 31, 2002                                    |  |              | 134,288 |        |  | $      | 1,343 |          |  | $             | 507 |       |  | $     | (44 | ) |  | $ | 693 |             |  | $ | (20 | ) |  | $ | 2,479 |  
|                                                           |  |              |         |        |  |        |       |          |  |               |     |       |  |       |     |   |  |   |     |             |  |   |     |   |  |   |       |  

The following table displays comprehensive income (loss) for three-month
periods in 2002 and 2001:

|                                               |                                               |                                                                                 |    |      |   |      |     |   |     |  
|---------------------------------------------- | --------------------------------------------- | ------------------------------------------------------------------------------- | -- | ---- | - | ---- | --- | - | --- | -
|                                               |                                               |                                                                                 |    | 2002 |   | 2001
|                                               |                                               |                                                                                 |    |      |   |     
|(in Millions)                                  |                                               |                                                                                 |    |      |   |      |     |  
|                                              
|                                              
|                                              
|                                              
|Net income                                     |                                               | $                                                                               | 92 |      |   | $    | 113 |  
|                                               |                                               |                                                                                 |    |      |   |      |     |  
|Other comprehensive income (loss), net of tax: |                                               |                                                                                 |    |      |   |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Net unrealized gains (losses) on derivatives: |                                                                                 |    |      |   |      |     |   |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                               | Cumulative effect of a change in accounting principle, net of taxes of $6       |    |      |  |      |     |   | 13  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                               | Gains (losses) arising during the year, net of taxes of $2 and $5, respectively |    |      | 3 |      |     |   | (10 | )
|                                               |                                               |                                                                                 |    |      |   |      |     |  
|                                               | Total other comprehensive income              |                                                                                 |    | 3    |   |      |     | 3 |    
|                                               |                                               |                                                                                 |    |      |   |      |     |  
|Comprehensive income                           |                                               | $                                                                               | 95 |      |   | $    | 116 |  
|                                               |                                               |                                                                                 |    |      |   |      |     |  

See Notes to Consolidated Financial Statements (Unaudited)

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The Detroit Edison Company
Notes to Consolidated Financial Statements (Unaudited)

NOTE 1  GENERAL

These consolidated financial statements (unaudited) should be read in
conjunction with the notes to consolidated financial statements included in the
Annual Report to the Securities and Exchange Commission on Form 10-K.

The accompanying financial statements were prepared in conformity with
accounting principles generally accepted in the United States of America. In
connection with their preparation, management makes estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and expenses,
and disclosure of contingent assets and liabilities. Actual results could
differ from those estimates.

The consolidated financial statements are unaudited, but in the opinion of the
Company, include all adjustments necessary for a fair statement of the results
for the interim periods. Financial results for this interim period are not
necessarily indicative of results that may be expected for any other interim
period or for the fiscal year.

Certain prior year balances have been reclassified to conform to the current
years presentation.

NOTE 2  REGULATORY MATTERS

Electric Industry Restructuring

The MPSC initiated a case to determine the methodology of calculating net
stranded costs as required by Public Act (PA) 141. As a result of an MPSC
order in December 2001, Detroit Edison would recover the net stranded costs
associated with its electric generation operations. Specifically, there would
be an annual filing with the MPSC comparing actual revenues from generation
services to the revenue requirements, including an allowance for the cost of
capital, to recover the costs of generation operations. The MPSC, in its
orders, determined that Detroit Edison had no stranded costs using 2000 data,
established a zero 2002 transition charge and deferred the issues of refining
the net stranded costs methodology and the recalculating of net stranded costs
to 2002. The MPSC also determined that Detroit Edison should provide a full
and offsetting credit for the securitization and tax charges applied to
electric Customer Choice bills in 2002 and maintained an additional credit on
electric Customer Choice bills equivalent to the 5% rate reduction benefiting
full service customers, both funded by savings derived from securitization.
This order combined with lower wholesale power prices are likely to encourage
additional customer participation in the electric Customer Choice program and
result in the loss of margins from providing generation services. Detroit
Edison asked for rehearing and clarification on certain aspects of the order
and requested that the MPSC initiate an expedited proceeding to implement those
clarifications and interpretations.

In another December 2001 order, the MPSC finalized the prices, terms and
conditions contained in the Retail Access Service Tariff (RAST) that were
likely to encourage additional customer participation in the Electric Choice
program. Detroit Edison asked for rehearing and clarification on certain
aspects of the order. In an order issued in April 2002, the MPSC modified its
December 2001 order approving Detroit Edisons RAST and reduced the
requirements imposed on Detroit Edison in the December 2001 order concerning
meter installation, meter reading and computer system enhancements for
customers that elect to participate in the electric Customer Choice program.

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Notes to Consolidated Financial Statements (Unaudited)

Other

In March 2002, DTE Energy filed a report with the MPSC pursuant to a February
2002 MPSC proceeding to review various customer service and billing problems
experienced by Detroit Edison and MichCon customers. The report provided a
detailed response to the MPSCs concerns by addressing the causes and the
short-term and long-term action plans to remedy the customer issues. In
addition, a number of specific commitments were made regarding customer
accessibility and responsiveness to customers. The commitments also include a
compliance audit of its billing systems and associated controls. The MPSC Staff
responded to the Companys report with its own report in April 2002. The MPSC
Staff report generally agreed that the steps outlined in the Companys report
would address the majority of the service issues experienced by DTE
Energy customers
in the recent past. In addition, the MPSC Staff report identified several
additional opportunities to improve customer service including first contact
resolution of complaints and increased meter reading. To the extent the
Company successfully implements its short-term and long-term plans no
additional MPSC action is anticipated.

NOTE 3  CONTINGENCIES

Personal Property Taxes

Detroit Edison and other Michigan utilities have asserted that Michigans
valuation tables result in the substantial overvaluation of utility personal
property. Valuation tables established by the Michigan State Tax Commission
(STC) are used to determine the taxable value of personal property based on the
propertys age. In November 1999, the STC approved new valuation tables that
more accurately recognize the value of a utilitys personal property. The new
tables became effective in 2000 and are currently used to calculate
property tax expense. However, several local taxing jurisdictions have taken
legal action attempting to prevent the STC from implementing the new valuation
tables and have continued to prepare assessments based on the superseded
tables. The legal actions regarding the appropriateness of the new tables were
before the Michigan Tax Tribunal (MTT) which, on April 5, 2002, issued its
decision essentially affirming the validity of the STCs new tables.

Other

Detroit Edison purchases and sells electricity to numerous companies operating
in the steel, automotive, energy and retail industries. During 2001 and 2002,
a number of customers have filed for bankruptcy protection under Chapter 11 of
the U.S. Bankruptcy Code, including certain Enron Corporation affiliates and
National Steel Company. Management regularly reviews contingent matters
relating to purchase and sale contracts and records provisions for amounts
considered probable of loss. Management believes its previously accrued
amounts are adequate for losses that are probable of occurring. The final
resolution of these matters are not expected to have a material effect on
Detroit Edisons financial statements in the period they are resolved.

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Notes to Consolidated Financial Statements (Unaudited)

NOTE 4  NEW ACCOUNTING PRONOUNCEMENTS

Goodwill and Other Intangible Assets- Effective January 1, 2002, Detroit
Edison adopted SFAS No. 142, Goodwill and Other Intangible Assets, which
addresses the financial accounting and reporting standards for the acquisition
of intangible assets outside of a business combination and for goodwill and
other intangible assets subsequent to their acquisition.

SFAS No. 142 requires that useful lives of previously recognized intangible
assets be reassessed and the remaining amortization periods be adjusted
accordingly. Detroit Edisons intangible assets consist
primarily of software and are subject to
amortization. Intangible assets amortization expense was
approximately $9 million in each of the first quarters of 2002 and 2001. There were no
material acquisitions of intangible assets during the first quarter of 2002.
The gross carrying amount and accumulated amortization of intangible assets at
March 31, 2002 were $337 million and
$242 million, respectively. Amortization expense of intangible
assets is estimated to be $36 million annually for 2002 through
2006.

Asset Retirement Obligations- In June 2001, the FASB issued SFAS No. 143,
Accounting for Asset Retirement Obligations. This statement requires that
the fair value of an asset retirement obligation be recognized in the period in
which it is incurred. The associated asset retirement costs would be
capitalized as part of the carrying amount of the long-lived asset. It would
apply to legal obligations associated with the retirement of long-lived assets
that result from the acquisition, construction, development and (or) the normal
operation of a long-lived asset. This statement is effective for financial
statements issued for fiscal years beginning after June 15, 2002. Detroit
Edison will adopt this statement in January 2003 and has not yet determined the
impact of this statement on the consolidated financial statements.

Long-Lived Assets- On January 1, 2002, Detroit Edison adopted SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS No. 144
supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of, but retains the fundamental
provisions for recognizing and measuring impairment of long-lived assets to be
held and used

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Notes to Consolidated Financial Statements (Unaudited)

or disposed of by sale. The statement also supersedes the accounting and
reporting provisions for the disposal of a segment of a business. SFAS No. 144
eliminates the conflict between accounting models for treating the disposition
of long-lived assets that existed between SFAS No. 121 and the guidance for a
segment of a business accounted for as a discontinued operation by adopting the
methodology established in SFAS No. 121, and also resolves implementation
issues related to SFAS No. 121. The adoption of the statement did not have an
impact on the consolidated financial statements of Detroit Edison.

NOTE 5  SEGMENT INFORMATION

During 2002, Detroit Edisons parent company, DTE Energy, realigned its
financial reporting structure into strategic business units that provide
various regulated and non-regulated energy services. The realignment resulted
in the following two reportable segments for Detroit Edison. Inter-segment
revenues are not material.

|                    |       |   |                    |     |      |   |     |       | 
|------------------- | ----- | - | ------------------ | --- | ---- | - | --- | ----- | 
|                    |       |   | Three Months Ended
|                    |       |   | March 31          
|                    |       |   |                   
|                    |       |   | 2002               |     | 2001
|                    |       |   |                    |     |     
|Operating Revenues  |       |   |                    |     |      |   |     |      
|                   
|                   
|                   
|                   
|Energy Resources    |       | $ | 617                |     |      | $ | 703 |      
|                   
|                   
|                   
|                   
|Energy Distribution |       |   | 313                |     |      |   | 321 |      
|                    |       |   |                    |     |      |   |     |      
|                    | Total |   | $                  | 930 |      |   | $   | 1,024 | 
|                    |       |   |                    |     |      |   |     |      

|                    |       |   |    |    |  |   |    |     | 
|------------------- | ----- | - | -- | -- |  | - | -- | --- | 
|Net Income          |       |   |    |    |  |   |    |    
|                   
|                   
|                   
|                   
|Energy Resources    |       | $ | 71 |    |  | $ | 76 |    
|                   
|                   
|                   
|                   
|Energy Distribution |       |   | 21 |    |  |   | 37 |    
|                    |       |   |    |    |  |   |    |    
|                    | Total |   | $  | 92 |  |   | $  | 113 | 
|                    |       |   |    |    |  |   |    |    

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INDEPENDENT ACCOUNTANTS REPORT

To the Board of Directors and Shareholder of
The Detroit Edison Company

We have reviewed the accompanying condensed consolidated statement of financial
position of The Detroit Edison Company and subsidiaries as of March 31, 2002,
and the related condensed consolidated statements of operations, cash flows and
changes in shareholders equity for the three-month periods ended March 31,
2002 and 2001. These financial statements are the responsibility of The
Detroit Edison Companys management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and of making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with auditing standards generally accepted in the United States
of America, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express such
an opinion.

Based on our review, we are not aware of any material modifications that should
be made to such condensed consolidated financial statements for them to be in
conformity with accounting principles generally accepted in the United States
of America.

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated statement of
financial position of The Detroit Edison Company and subsidiaries as of
December 31, 2001, and the related consolidated statements of operations, cash
flows and changes in shareholders equity for the year then ended (not
presented herein); and in our report dated February 26, 2002, we expressed an
unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed consolidated
statement of financial position as of December 31, 2001 is fairly stated, in
all material respects, in relation to the consolidated statement of financial
position from which it has been derived.

/s/ DELOITTE & TOUCHE LLP

Detroit, Michigan
April 23, 2002

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Exhibits and Reports on Form 8-K

|    |  |                         
|--- |  | ------------------------
|(a) |  | Exhibits.               
|   
|   
|   
|   
|    |  |                         
|   
|   
|   
|   
|(i) |  | Exhibits filed herewith.

|        |  |                                                                                       
|------- |  | --------------------------------------------------------------------------------------
|Exhibit |  |                                                                                       
|Number  |  | Description                                                                           
|        |  |                                                                                       
|15-20   |  | Awareness Letter of Deloitte & Touche LLP regarding their report dated
April 23, 2002.
|       
|       
|       
|       
|        |  |                                                                                       
|       
|       
|       
|       
|(ii)    |  | Exhibits incorporated herein by reference.                                            
|       
|       
|       
|       
|        |  |                                                                                       
|       
|       
|       
|       
|        |  | None.                                                                                 
|       
|       
|       
|       
|        |  |                                                                                       
|       
|       
|       
|       
|(b)     |  | Reports on Form 8-K.                                                                  
|       
|       
|       
|       
|        |  |                                                                                       
|       
|       
|       
|       
|        |  | None.                                                                                 

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|      |  |              |  |    |  |                                                                            
|----- |  | ------------ |  | -- |  | ---------------------------------------------------------------------------
|      |  |              |  |    |  | THE DETROIT EDISON COMPANY
(Registrant)                                    
|     
|     
|     
|     
|      |  |              |  |    |  |                                                                            
|     
|     
|     
|     
|Date: |  | May 14, 2002 |  | By |  | /s/ DANIEL G. BRUDZYNSKI
Daniel G. Brudzynski
Vice President and Controller

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Exhibit Index

|        |  |                                                                                       
|------- |  | --------------------------------------------------------------------------------------
|Exhibit |  |                                                                                       
|Number  |  | Description                                                                           
|        |  |                                                                                       
|15-20   |  | Awareness Letter of Deloitte & Touche LLP regarding their report dated
April 23, 2002.