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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 June 30, 2001



|            |  |                                                                                                               |                 |                   
|----------- |  | ------------------------------------------------------------------------------------------------------------- | --------------- | ------------------
|Commission  |  | Registrant; State of Incorporation;                                                                           | I.R.S. Employer
|File Number |  | Address; and Telephone Number                                                                                 |                 | Identification No.
|            |  |                                                                                                               |                 |                   
|           
|           
|           
|           
|1-2198      |  | The Detroit Edison Company
(a Michigan corporation)
2000 2nd Avenue
Detroit, Michigan 48226-1279
313-235-8000 |                 | 38-0478650        



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 registrants were required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes                     No





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TABLE OF CONTENTS



|                                                   |                                |                                                                                                |                                                                       |  |  |  |  | 
|-------------------------------------------------- | ------------------------------ | ---------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- |  |  |  |  | 
|Definitions                                       
|                                                   |                                | Item 2  Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                                   |                                | Item 3  Quantitative and Qualitative Disclosures About Market Risk                           
|                                                   | Part I - Financial Information
|                                                   |                                | Item 1  Financial Statements                                                                 
|                                                   |                                |                                                                                                | Consolidated Statement of Income (Unaudited)                         
|                                                   |                                |                                                                                                | Consolidated Statement of Cash Flows (Unaudited)                     
|                                                   |                                |                                                                                                | Consolidated Balance Sheet (Unaudited)                               
|                                                   |                                |                                                                                                | Consolidated Statement of Changes in Shareholders Equity (Unaudited)
|                                                   |                                |                                                                                                | Notes to Consolidated Financial Statements (Unaudited)               
|                                                   |                                |                                                                                                | Independent Accountants Report                                      
|                                                   | Part II - Other Information   
|                                                   |                                | Item 1  Legal Proceedings                                                                    
|                                                   |                                | Item 5  Other Information                                                                    
|                                                   |                                | Item 6  Exhibits and Reports on Form 8-K                                                     
|Signature Page                                    
|EX-4.226 Supplemental Indenture dated 5/1/01      
|EX-12.33 Computation of Ratio of Earnings         
|EX-15.18 Awareness Letter of Deloitte & Touche LLP
|EX-99.45 Credit Agreement dated 7/11/01           



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THE DETROIT EDISON COMPANY
FORM 10-Q
For The Quarter Ended June 30, 2001



TABLE OF CONTENTS

|               |                                 |                                                                                                |                                                                       |    |      |    | 
|-------------- | ------------------------------- | ---------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -- | ---- | -- | 
|               |                                 |                                                                                                |                                                                       |    | Page |   
|               |                                 |                                                                                                |                                                                       |    |      |   
|Definitions    |                                 |                                                                                                | 3                                                                     |   
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|              
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|               | Part I   Financial Information |                                                                                                |                                                                       | 10 |     
|              
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|              
|              
|               |                                 | Item 1  Financial Statements                                                                 
|              
|              
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|              
|               |                                 |                                                                                                | Consolidated Statement of Income (Unaudited)                          |    |      | 10 | 
|              
|              
|              
|              
|               |                                 |                                                                                                | Consolidated Statement of Cash Flows (Unaudited)                      |    |      | 11 | 
|              
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|              
|               |                                 |                                                                                                | Consolidated Balance Sheet (Unaudited)                                |    |      | 12 | 
|              
|              
|              
|              
|               |                                 |                                                                                                | Consolidated Statement of Changes in Shareholders
Equity (Unaudited) |    |      | 14 | 
|              
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|               |                                 |                                                                                                | Notes to Consolidated Financial Statements (Unaudited)                |    |      | 15 | 
|              
|              
|              
|              
|               |                                 |                                                                                                | Independent Accountants Report                                       |    |      | 20 | 
|              
|              
|              
|              
|               |                                 | Item 2  Managements Discussion and Analysis of Financial
Condition and Results of Operations |                                                                       |    | 4    |   
|              
|              
|              
|              
|               |                                 | Item 3  Quantitative and Qualitative Disclosures About Market Risk                            |                                                                       |    | 9    |   
|              
|              
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|              
|               | Part II  Other Information     |                                                                                                |                                                                       | 21 |     
|              
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|              
|              
|               |                                 | Item 1  Legal Proceedings                                                                     |                                                                       |    | 21   |   
|              
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|              
|              
|               |                                 | Item 5  Other Information                                                                     |                                                                       |    | 21   |   
|              
|              
|              
|              
|               |                                 | Item 6  Exhibits and Reports on Form 8-K                                                      |                                                                       |    | 23   |   
|              
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|              
|Signature Page |                                 |                                                                                                | 27                                                                    |   

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DEFINITIONS

|                       |  |                                                                                                                                                                              
|---------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Annual Report          |  | 2000 Annual Report to the Securities and Exchange Commission on Form 10-K for
The Detroit Edison Company, filed with the DTE Energy Company Annual Report on
Form 10-K       
|                      
|                      
|                      
|                      
|Annual Report Notes    |  | Notes to Consolidated Financial Statements appearing on pages 41 through 71 and
76 through 78 of the Annual Report                                                           
|                      
|                      
|                      
|                      
|DTE                    |  | DTE Energy Company and Consolidated Subsidiary Companies                                                                                                                     
|                      
|                      
|                      
|                      
|Detroit Edison         |  | The Detroit Edison Company (a wholly owned subsidiary of DTE Energy Company) and
Consolidated Subsidiary Companies                                                           
|                      
|                      
|                      
|                      
|Electric Choice        |  | Electric customer access to competitive generation resources                                                                                                                 
|                      
|                      
|                      
|                      
|EPA                    |  | United States Environmental Protection Agency                                                                                                                                
|                      
|                      
|                      
|                      
|FERC                   |  | Federal Energy Regulatory Commission                                                                                                                                         
|                      
|                      
|                      
|                      
|kWh                    |  | Kilowatthour                                                                                                                                                                 
|                      
|                      
|                      
|                      
|MPSC                   |  | Michigan Public Service Commission                                                                                                                                           
|                      
|                      
|                      
|                      
|MW                     |  | Megawatt                                                                                                                                                                     
|                      
|                      
|                      
|                      
|MWh                    |  | Megawatthour                                                                                                                                                                 
|                      
|                      
|                      
|                      
|Note(s)                |  | Note(s) to Consolidated Financial
Statements (Unaudited) appearing herein                                                                                                    
|                      
|                      
|                      
|                      
|PSCR                   |  | Power Supply Cost Recovery                                                                                                                                                   
|                      
|                      
|                      
|                      
|Quarterly Report       |  | Quarterly Report to the Securities and Exchange Commission on Form 10-Q for the
quarter ended March 31, 2001, filed with the DTE Energy Company Quarterly
Report on Form 10-Q
|                      
|                      
|                      
|                      
|Quarterly Report Notes |  | Notes to Consolidated Financial Statements (Unaudited) appearing on pages 16
through 23 of the Quarterly Report                                                              
|                      
|                      
|                      
|                      
|Registrant             |  | Detroit Edison                                                                                                                                                               
|                      
|                      
|                      
|                      
|SFAS                   |  | Statement of Financial Accounting Standards                                                                                                                                  

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Managements Discussion and Analysis of Financial Condition and Results of Operations

This analysis for the three-and six-month periods ended June 30, 2001, as compared to the same periods in 2000,
should be read in conjunction with the consolidated financial statements (unaudited), the accompanying Notes, the
Annual Report Notes and Quarterly Report Notes.

ELECTRIC INDUSTRY RESTRUCTURING

Pursuant to Michigan legislation and MPSC orders, on March 9, 2001, Detroit Edison sold $1.750 billion of
stranded costs to its Securitization LLC subsidiary, and the Securitization LLC issued $1.750 billion of
securitization bonds. Detroit Edison is in the process of using the proceeds of the bonds to retire debt and
equity, as required.

As a result of Detroit Edisons June 2000 5% rate reduction, sale of certain of its stranded costs and the
related sale of Securitization Bonds, Detroit Edisons operating revenues and income are expected to be reduced
in 2001 and future years. This revenue reduction is offset by the certainty of stranded cost recovery that
resulted from the issuance of the Securitization Bonds.

In October 2000, the MPSC initiated a case to determine the methodology of calculating net stranded costs, as
required by Public Act 141 of 2000 (PA 141). In a filing on February 23, 2001, Detroit Edison defined net
stranded costs as the economic harm that results from the loss of bundled rate generation revenue resulting from
Electric Choice, offset by the benefits received when Detroit Edison sells this available power into the market.
Detroit Edison proposed a zero transition charge for the year 2002. A transition charge or credit would begin in
2003, based on actual net stranded costs or benefits, as defined, experienced in 2002. The MPSC Staff proposed
to determine a net stranded cost transition charge based on revenue requirements for the fixed cost component of
generation plant, with a surcharge floor of zero. Other parties proposed different methodologies that would
result in credit surcharges. An order is not expected before the fourth quarter 2001.

Effective January 2001, Detroit Edison transferred its transmission assets, with a book value of approximately
$390 million, to a wholly owned subsidiary, International Transmission Company (ITC). On May 31, 2001, Detroit
Edison distributed 100 percent of the shares of ITC to DTE. Detroit Edison expects that the transaction and
the related impact of the ratemaking process will have the effect of reducing net income by approximately $15
million in 2001 and approximately $52 million per year thereafter, from 2000 levels.

LIQUIDITY AND CAPITAL RESOURCES

Cash From Operating Activities

Net cash from operating activities was higher due primarily to decreases in accounts receivable, increases in
accounts payable, and changes in other assets and liabilities, partially offset by lower net income.

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Cash Used for Investing Activities

Net cash used for investing activities was higher due to increased plant and equipment expenditures.

Cash From Financing Activities

Net cash used for financing activities was higher due primarily to the redemptions of short-term borrowings and
long-term debt and the buyback of common stock, offset by the issuance of Securitization Bonds.

Detroit Edison is subject to the jurisdiction of the Federal Energy Regulatory Commission with respect to its
financing authority. On May 31, 2001, FERC issued an order authorizing up to $1 billion of short-term borrowings
over the succeeding two-year period. On July 10, 2001, FERC issued an order authorizing up to $1 billion
long-term borrowing authority over the succeeding two-year period.

Detroit Edison has a $750 million effective debt registration statement.

Detroit Edison anticipates that it will refinance its obligations with respect to two tax-exempt issues (Michigan
Strategic Fund Collateralized Series 1991CC in the amount of $41.48 million and Collateralized Series 1991DD in
the amount of $98.375 million), during the second half of 2001. This refinancing is subject to approval from the
Michigan Strategic Fund.

On July 27, 2001, Detroit Edison terminated its nuclear fuel financing arrangement with Renaissance Energy
Company. On that date, Detroit Edison purchased all of its leased nuclear fuel for $79 million and funded that
purchase through the issuance of commercial paper. At June 30, 2001, Detroit Edison classified its nuclear fuel
lease obligation as a current liability.

RESULTS OF OPERATIONS

For the three-month period Detroit Edison incurred a net loss of $77 million, compared to net income of $91
million for the same period in 2000. For the six-month period net income was $36 million compared to $188
million for the same period in 2000. This decrease was primarily due to the $163 million ($106 million after
tax) restructuring charge Detroit Edison recorded in June 2001, and the impacts of changes in fair value of
derivative instruments required by Detroit Edisons adoption of SFAS No. 133 Accounting for Derivative
Instruments and Hedging Activities (SFAS No. 133), as amended, on January 1, 2001. See Note 3  Restructuring
Charge herein for additional information.

As a result of the suspension of the PSCR clause in June 2000, Detroit Edisons distribution of yearly earnings
has shifted significantly. The first and fourth quarters of the year show higher earnings, while lower earnings
are realized in the second and third quarters. The PSCR clause suspension also has an impact on earnings, since
rates are no longer adjusted for changes in fuel and purchased power expenses.

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Operating Revenues

Operating revenues increased (decreased) due to the following:

|                            |       |   |              |     |   |            |     |    |  
|--------------------------- | ----- | - | ------------ | --- | - | ---------- | --- | -- | -
|                            |       |   | Three Months |     |   | Six Months |    
|                            |       |   |              |     |   |            |    
|                            |       |   | (Millions)   |    
|                           
|                           
|                           
|                           
|5% Rate reduction           |       | $ | (33          | )   |   | $          | (50 | ) 
|                           
|                           
|                           
|                           
|System sales volume and mix |       |   | (44          | )   |   |            | (44 | ) 
|                           
|                           
|                           
|                           
|Cessation of PSCR mechanism |       |   | (60          | )   |   |            | (14 | ) 
|                           
|                           
|                           
|                           
|Wholesale sales             |       |   | 51           |     |   |            | 85  |   
|                           
|                           
|                           
|                           
|Other-net                   |       |   | 7            |     |   |            | 19  |   
|                            |       |   |              |     |   |           
|                            | Total |   | $            | (79 | ) |            | $   | (4 | )
|                            |       |   |              |     |   |           

Detroit Edison kWh sales increased (decreased) as compared to the prior year as follows:

|                                            |              |  |        |      |   |        |       |      |  
|------------------------------------------- | ------------ |  | ------ | ---- | - | ------ | ----- | ---- | -
|                                            |              |  | Three  |      |   | Six    |      
|                                            |              |  | Months |      |   | Months |      
|                                            |              |  |        |      |   |        |      
|Residential                                 |              |  | (1.0)  | %    |   |        | 2.3   | %   
|                                           
|                                           
|                                           
|                                           
|Commercial                                  |              |  | (4.2   | )    |   |        | (3.8  | )   
|                                           
|                                           
|                                           
|                                           
|Industrial                                  |              |  | (12.9  | )    |   |        | (10.2 | )   
|                                           
|                                           
|                                           
|                                           
|Other (includes primarily sales for resale) |              |  | 2.4    |      |   |        | (0.2  | )   
|                                           
|                                           
|                                           
|                                           
|                                            | Total System |  |        | (5.9 | ) |        |       | (4.0 | )
|                                           
|                                           
|                                           
|                                           
|Wholesale sales                             |              |  | (87.0  | )    |   |        | 2.4   |     
|                                           
|                                           
|                                           
|                                           
|                                            | Total        |  |        | (7.4 | ) |        |       | (3.8 | )

For the three-month period residential sales decreased due to reduced cooling demand. For the six-month period
residential sales increased due to greater heating demand. Commercial sales decreased due to increased migration
of customers to the Electric Choice program. Industrial sales decreased due to reduced auto and steel production
and the end of the Ford Rouge plant replacement energy sales contract. Wholesale sales decreased for the
three-month period due to the expiration of an agreement with Consumers Energy.

For the three- and six-month periods, the wholesale sales component of revenues increased $40 million and $47
million, respectively, as a result of recording the net change in fair value for derivatives not designated as
hedges.

Operating Expenses

Fuel and Purchased Power

Fuel and purchased power expense increased due to
the recording of the net change in fair value for certain derivatives not
designated as hedges. For the three- and six-month periods, fuel
and purchased

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power expense increased $72 million and $92 million, respectively, as a result of recording the net
change in fair value for these derivatives. Fuel and purchased power
expense was also impacted by reduced purchases of higher cost power
and greater use of lower cost nuclear power.

System output and average delivered fuel and purchased power unit costs for Detroit Edison were as follows:

|                          |                 |  |              |       |  |            |                    |        |      |  |        |        |  |  |        |        | 
|------------------------- | --------------- |  | ------------ | ----- |  | ---------- | ------------------ | ------ | ---- |  | ------ | ------ |  |  | ------ | ------ | 
|                          |                 |  | Three Months |       |  | Six Months |                   
|                          |                 |  |              |       |  |            |                   
|                          |                 |  | 2001         |       |  | 2000       |                    |        | 2001 |  |        | 2000   | 
|                          |                 |  |              |       |  |            |                    |        |      |  |        |        | 
|                          |                 |  |              |       |  |            | (Thousands of MWh) |       
|Power plant generation   
|                         
|                         
|                         
|                         
|                          | Fossil          |  |              | 9,390 |  |            |                    | 10,036 |      |  |        | 19,618 |  |  |        | 19,893 | 
|                         
|                         
|                         
|                         
|                          | Nuclear         |  |              | 2,316 |  |            |                    | 963    |      |  |        | 4,729  |  |  |        | 3,352  | 
|                         
|                         
|                         
|                         
|Purchased power           |                 |  | 1,736        |       |  |            | 3,246              |        |      |  | 3,268  |        |  |  | 5,218  |       
|                          |                 |  |              |       |  |            |                    |        |      |  |        |       
|System output             |                 |  | 13,442       |       |  |            | 14,245             |        |      |  | 27,615 |        |  |  | 28,463 |       
|                          |                 |  |              |       |  |            |                    |        |      |  |        |       
|Average unit cost ($/MWh)
|                         
|                         
|                         
|                         
|                          | Generation      |  | $            | 12.03 |  |            | $                  | 15.30  |      |  | $      | 12.20  |  |  | $      | 14.23  | 
|                          |                 |  |              |       |  |            |                    |        |      |  |        |       
|                          | Purchased power |  | $            | 69.96 |  |            | $                  | 49.44  |      |  | $      | 57.47  |  |  | $      | 41.71  | 
|                          |                 |  |              |       |  |            |                    |        |      |  |        |       

Operation and Maintenance

For the three-month period, operation and maintenance expenses increased approximately 7% to $290 million. For
the six-month period, operation and maintenance expenses also increased approximately 7% to $546 million. These
increases were primarily due to expenses related to increased maintenance and reliability work for power
generation and expense related to the funding of the low income and energy efficiency fund required by Michigan
legislation.

Depreciation and Amortization

Depreciation and amortization expense was lower due to an extension of the amortization period for certain
regulatory assets resulting from the securitization of such assets in March 2001.

Interest Expense

Interest expense was higher due to debt issued for securitization, partially offset by redemptions of higher cost
debt with the proceeds of the securitization bonds. Detroit Edisons refunding of such debt is ongoing and is
expected to be completed in the second half of 2001.

Income Taxes (Benefit)

Income taxes decreased due primarily to decreases in pre-tax income and changes in the effective tax rate.

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ACCOUNTING FOR DERIVATIVES

SFAS No. 133 establishes accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging activities. In general, SFAS No. 133
requires that companies recognize all derivatives as either assets or liabilities on the balance sheet, measured
at fair value. SFAS No. 133 provides an exemption for certain contracts that qualify as normal purchases and
sales. To qualify for this exemption, certain criteria must be met, including that it must be probable that the
contract will result in physical delivery.

See Note 6  Financial and Other Derivative Instruments herein for additional information.

ENVIRONMENTAL MATTERS

As discussed in the Annual Report, the EPA has initiated enforcement actions against several major electric
utilities citing violations of new source provisions of the Clean Air Act. Detroit Edison has received and
responded to information requests from the EPA on this subject. Although no action has been initiated against
Detroit Edison, it has closely followed the development of this issue. The Bush Administration has undertaken a
review of the EPAs interpretation of regulations applying to new source review requirements. This review is
expected to focus on the ability of fossil-fueled plant owners to perform plant maintenance without additional
significant environmentally related modifications. While Detroit Edison anticipates its ability to continue to
economically maintain its plants, the outcome of this governmental review cannot be predicted.

As discussed in the Annual Report, Detroit Edison will be impacted by EPA ozone transport regulations and final
new air quality standards relating to ozone and particulate air pollution. Detroit Edison has spent
approximately $117 million and estimates that it will incur
approximately $400 to $500 million of future capital expenditures over the next several years.

FORWARD-LOOKING STATEMENTS

Certain information presented herein is based on the expectations of Detroit Edison, and, as such, is
forward-looking. The Private Securities Litigation Reform Act of 1995 encourages reporting companies to provide
analyses and estimates of future prospects and also permits reporting companies to point out that actual results
may differ from those anticipated.

Actual results for Detroit Edison may differ from those expected due to a number of variables including, but not
limited to: interest rates, the use of derivative instruments and their related accounting treatment, the level
of borrowings, weather, actual sales, changes in the cost of fuel and purchased power due to the suspension of
the PSCR mechanism, the effects of competition and the phased-in implementation of Electric Choice, the
implementation of utility restructuring in Michigan (which involves pending regulatory and related judicial
proceedings, and actual and possible reductions in rates and earnings), environmental and nuclear requirements,
and the impact of FERC

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proceedings and regulations. In addition, expected
results will be affected by the acquisition of
MCN Energy Group Inc. on May 31, 2001, by DTE, Detroit Edison's parent company, and the timing of the accretive
effect of such acquisition. While Detroit Edison believes that estimates given accurately measure the
expected outcome, actual results could vary materially due to the variables mentioned, as well as others.




Quantitative and Qualitative Disclosures About Market Risk

Commodity Price Risk

Detroit Edison is subject to commodity price risk in conjunction with the anticipated purchase of electricity to
meet reliability obligations during times of peak customer demand. Detroit Edisons exposure to commodity price
risk arises from market fluctuations in commodity prices until the date of the anticipated purchase of
electricity. To limit the sensitivity to commodity price fluctuations, Detroit Edison has entered into a series
of forward electricity contracts and option contracts. See Note 6 for further discussion of these derivative
instruments.

A sensitivity analysis model was used to calculate the impact of changes in fair values of Detroit Edisons
forward electricity and option contracts given a hypothetical 10% increase or decrease in commodity prices
utilizing applicable forward commodity rates in effect at June 30, 2001. The favorable (unfavorable) changes in
fair value are as follows:

|                                         |  |              |    |  |              |   |     |  
|---------------------------------------- |  | ------------ | -- |  | ------------ | - | --- | -
|                                         |  | Assuming 10% |    |  | Assuming 10% |  
|                                         |  | Increase in  |    |  | Decrease in  |  
|                                         |  | Prices       |    |  | Prices       |  
|                                         |  |              |    |  |              |  
|                                         |  | (Millions)   |   
|Forward Electricity and Option
Contracts
|                                        
|                                        
|                                        
|                                        
|                                         |  | $            | 15 |  |              | $ | (15 | )

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The Detroit Edison Company
Consolidated Statement of Income (Unaudited)
(Millions)

|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |    |     |       |       |   |     |       | 
|-------------------------------------------------------------------------- | ----------------------------------------- | ----------------------------- | -------------------------------- | - | ------------------ | ----- | ----- | ---------------- | --- | --- | ----- | -- | --- | ----- | ----- | - | --- | ----- | 
|                                                                           |                                           |                               |                                  |   | Three Months Ended |       |       | Six Months Ended |    
|                                                                           |                                           |                               |                                  |   | June 30            |       |       | June 30          |    
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |    
|                                                                           |                                           |                               |                                  |   | 2001               |       |       | 2000             |     |     | 2001  |    |     | 2000  |      
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |    |     |       |      
|Operating Revenues                                                         |                                           | $                             | 992                              |   |                    | $     | 1,071 |                  |     | $   | 2,016 |    |     | $     | 2,020 |  
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Operating Expenses                                                        
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Fuel and purchased power      |                                  |   | 354                |       |       |                  | 336 |     |       |    | 623 |       |       |   | 565 |      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Operation and maintenance     |                                  |   | 290                |       |       |                  | 272 |     |       |    | 546 |       |       |   | 512 |      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Depreciation and amortization |                                  |   | 160                |       |       |                  | 177 |     |       |    | 334 |       |       |   | 359 |      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Taxes other than income       |                                  |   | 72                 |       |       |                  | 72  |     |       |    | 151 |       |       |   | 147 |      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Restructuring charge (Note 3) |                                  |   | 163                |       |       |                  |    |     |       |    | 163 |       |       |   |    |      
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|                                                                           |                                           |                               | Total Operating Expenses         |   |                    | 1,039 |       |                  |     | 857 |       |    |     | 1,817 |       |   |     | 1,583 | 
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Operating Income (Loss)                                                    |                                           |                               | (47                              | ) |                    |       | 214   |                  |     |     | 199   |    |     |       | 437   |  
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Interest Expense and Other                                                
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Interest expense              |                                  |   | 78                 |       |       |                  | 70  |     |       |    | 150 |       |       |   | 139 |      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           |                                           | Other  net                   |                                  |   |                   |       |       |                  | 5   |     |       |    | 5   |       |       |   | 9   |      
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|                                                                           |                                           |                               | Total Interest Expense and Other |   |                    | 78    |       |                  |     | 75  |       |    |     | 155   |       |   |     | 148   | 
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Income (Loss) Before Income Taxes                                          |                                           |                               | (125                             | ) |                    |       | 139   |                  |     |     | 44    |    |     |       | 289   |  
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Income Taxes (Benefit)                                                     |                                           |                               | (48                              | ) |                    |       | 48    |                  |     |     | 5     |    |     |       | 101   |  
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Income (Loss) Before Cumulative Effect of
a Change in Accounting Principle |                                           |                               | (77                              | ) |                    |       | 91    |                  |     |     | 39    |    |     |       | 188   |  
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Cumulative Effect of a Change in                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                           | Accounting Principle, Net of Tax (Note 6) |                               |                                  |  |                    |       |       |                 |     |     |       | (3 | )   |       |       |  |    
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   
|Net Income (Loss)                                                          |                                           | $                             | (77)                             |   |                    | $     | 91    |                  |     | $   | 36    |    |     | $     | 188   |  
|                                                                           |                                           |                               |                                  |   |                    |       |       |                  |     |     |       |   

See Notes to Consolidated Financial Statements (Unaudited)

10



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##### Table of Contents






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

|                                                     |                                                                            |                                            |                     |       |                  |     |    |      |      |      |  
|---------------------------------------------------- | -------------------------------------------------------------------------- | ------------------------------------------ | ------------------- | ----- | ---------------- | --- | -- | ---- | ---- | ---- | -
|                                                     |                                                                            |                                            |                     |       | Six Months Ended |    
|                                                     |                                                                            |                                            |                     |       | June 30          |    
|                                                     |                                                                            |                                            |                     |       |                  |    
|                                                     |                                                                            |                                            |                     |       | 2001             |     |    | 2000 |     
|                                                     |                                                                            |                                            |                     |       |                  |     |    |      |     
|Operating Activities                                
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net Income                                                                 |                                            | $                   | 36    |                  |     | $  | 188  |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Adjustments to reconcile net income to net cash from operating activities:
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Depreciation and amortization              |                     |       | 334              |     |    |      | 359  |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Restructuring charge                       |                     |       | 150              |     |    |      |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Other                                      |                     |       | (129             | )   |    |      | (52  | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            | Changes in current assets and liabilities:
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                            | Accounts receivable |       |                  | 49  |    |      |      | 11   |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                            | Inventories         |       |                  | 19  |    |      |      | 6    |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                            | Payables            |       |                  | 44  |    |      |      | 13   |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                            |                                            | Other               |       |                  | (45 | )  |      |      | (118 | )
|                                                     |                                                                            |                                            |                     |       |                  |    
|                                                     |                                                                            | Net cash from operating activities         |                     |       | 458              |     |    |      | 407  |     
|                                                     |                                                                            |                                            |                     |       |                  |    
|Investing Activities                                
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Plant and equipment expenditures                                           |                                            |                     | (328  | )                |     |    | (282 | )   
|                                                     |                                                                            |                                            |                     |       |                  |    
|                                                     |                                                                            | Net cash used for investing activities     |                     |       | (328             | )   |    |      | (282 | )   
|                                                     |                                                                            |                                            |                     |       |                  |    
|Financing Activities                                
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Issuance of long-term debt                                                 |                                            |                     | 1,750 |                  |     |    | 219  |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Increase (decrease) in short-term borrowings, net                          |                                            |                     | (232  | )                |     |    | 20   |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Increase in restricted cash for debt redemptions                           |                                            |                     | (30   | )                |     |    |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Redemption of long-term debt                                               |                                            |                     | (615  | )                |     |    | (194 | )   
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Repurchase of common stock                                                 |                                            |                     | (846  | )                |     |    |     |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Dividends on common stock                                                  |                                            |                     | (159  | )                |     |    | (160 | )   
|                                                     |                                                                            |                                            |                     |       |                  |    
|                                                     |                                                                            | Net cash used for financing activities     |                     |       | (132             | )   |    |      | (115 | )   
|                                                     |                                                                            |                                            |                     |       |                  |    
|Net Increase (Decrease) in Cash and Cash Equivalents |                                                                            |                                            | (2                  | )     |                  |     | 10 |     
|                                                    
|                                                    
|                                                    
|                                                    
|Cash and Cash Equivalents at Beginning of the Period |                                                                            |                                            | 24                  |       |                  |     | 4  |     
|                                                     |                                                                            |                                            |                     |       |                  |    
|Cash and Cash Equivalents at End of the Period       |                                                                            | $                                          | 22                  |       |                  | $   | 14 |     
|                                                     |                                                                            |                                            |                     |       |                  |    
|Supplementary Cash Flow Information                 
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Interest paid (excluding interest capitalized)                             |                                            | $                   | 122   |                  |     | $  | 133  |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Income taxes paid                                                          |                                            |                     | 80    |                  |     |    | 98   |     
|                                                    
|                                                    
|                                                    
|                                                    
|Noncash Investing and Financing Activities          
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | New capital lease obligations                                              |                                            |                     | 12    |                  |     |    | 41   |     
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Distribution of International Transmission Company to parent               |                                            |                     | 327   |                  |     |    |     |     

See Notes to Consolidated Financial
Statements (Unaudited)

11



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##### Table of Contents






The Detroit Edison Company
Consolidated Balance Sheet (Unaudited)
(Millions, Except Per Share Amounts and Shares)

|                                               |                                        |                                                                              |        |         |     |   |             |        |     | 
|---------------------------------------------- | -------------------------------------- | ---------------------------------------------------------------------------- | ------ | ------- | --- | - | ----------- | ------ | --- | 
|                                               |                                        |                                                                              |        | June 30 |     |   | December 31 |       
|                                               |                                        |                                                                              |        | 2001    |     |   | 2000        |       
|                                               |                                        |                                                                              |        |         |     |   |             |       
|ASSETS                                        
|                                              
|                                              
|                                              
|                                              
|Current Assets                                
|                                              
|                                              
|                                              
|                                              
|                                               | Cash and cash equivalents              |                                                                              | $      | 22      |     |   | $           | 24     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Restricted cash                        |                                                                              |        | 30      |     |   |             |       |    
|                                              
|                                              
|                                              
|                                              
|                                               | Accounts receivable                   
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | Customer (less allowance for doubtful
accounts of $21 and $20, respectively) |        | 312     |     |   |             | 328    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | Accrued unbilled revenues                                                    |        |         | 174 |   |             |        | 188 | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | Other                                                                        |        |         | 108 |   |             |        | 127 | 
|                                              
|                                              
|                                              
|                                              
|                                               | Inventories (at average cost)         
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | Fuel                                                                         |        | 148     |     |   |             | 163    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | Materials and supplies                                                       |        |         | 135 |   |             |        | 139 | 
|                                              
|                                              
|                                              
|                                              
|                                               | Assets from risk management activities |                                                                              |        | 49      |     |   |             |       |    
|                                              
|                                              
|                                              
|                                              
|                                               | Other                                  |                                                                              |        | 90      |     |   |             | 25     |    
|                                               |                                        |                                                                              |        |         |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                        |                                                                              | 1,068  |         |     |   | 994         |       
|                                               |                                        |                                                                              |        |         |     |  
|Investments                                   
|                                              
|                                              
|                                              
|                                              
|                                               | Nuclear decommissioning trust funds    |                                                                              |        | 404     |     |   |             | 398    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Other                                  |                                                                              |        | 79      |     |   |             | 38     |    
|                                               |                                        |                                                                              |        |         |     |  
|                                               |                                        |                                                                              | 483    |         |     |   | 436         |       
|                                               |                                        |                                                                              |        |         |     |  
|Property                                      
|                                              
|                                              
|                                              
|                                              
|                                               | Property, plant and equipment          |                                                                              |        | 10,845  |     |   |             | 11,433 |    
|                                              
|                                              
|                                              
|                                              
|                                               | Property under capital leases          |                                                                              |        | 220     |     |   |             | 220    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Nuclear fuel under capital lease       |                                                                              |        | 716     |     |   |             | 705    |    
|                                               |                                        |                                                                              |        |         |     |  
|                                               |                                        |                                                                              | 11,781 |         |     |   | 12,358      |       
|                                               |                                        |                                                                              |        |         |     |  
|Less accumulated depreciation and amortization |                                        |                                                                              | 5,402  |         |     |   | 5,659       |       
|                                               |                                        |                                                                              |        |         |     |  
|                                               |                                        |                                                                              | 6,379  |         |     |   | 6,699       |       
|                                               |                                        |                                                                              |        |         |     |  
|Other Assets                                  
|                                              
|                                              
|                                              
|                                              
|                                               | Regulatory assets                      |                                                                              |        | 1,107   |     |   |             | 2,686  |    
|                                              
|                                              
|                                              
|                                              
|                                               | Securitized regulatory assets (Note 4) |                                                                              |        | 1,717   |     |   |             |       |    
|                                              
|                                              
|                                              
|                                              
|                                               | Other                                  |                                                                              |        | 113     |     |   |             | 171    |    
|                                               |                                        |                                                                              |        |         |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                        |                                                                              | 2,937  |         |     |   | 2,857       |       
|                                               |                                        |                                                                              |        |         |     |  
|                                              
|                                              
|                                              
|                                              
|Total Assets                                   |                                        | $                                                                            | 10,867 |         |     | $ | 10,986      |       
|                                               |                                        |                                                                              |        |         |     |  

See Notes to Consolidated Financial
Statements (Unaudited)

12



---



##### Table of Contents



|                                           |                                                                                                                              |   |         |       |   |             |        |       |  
|------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- | - | ------- | ----- | - | ----------- | ------ | ----- | -
|                                           |                                                                                                                              |   | June 30 |       |   | December 31 |       
|                                           |                                                                                                                              |   | 2001    |       |   | 2000        |       
|                                           |                                                                                                                              |   |         |       |   |             |       
|LIABILITIES AND SHAREHOLDERS EQUITY      
|                                          
|                                          
|                                          
|                                          
|Current Liabilities                       
|                                          
|                                          
|                                          
|                                          
|                                           | Accounts payable                                                                                                             |   | $       | 272   |   |             | $      | 253   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Accrued interest                                                                                                             |   |         | 84    |   |             |        | 56    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Dividends payable                                                                                                            |   |         | 74    |   |             |        | 80    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Accrued payroll                                                                                                              |   |         | 93    |   |             |        | 96    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Short-term borrowings                                                                                                        |   |         | 13    |   |             |        | 245   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Income taxes                                                                                                                 |   |         |      |   |             |        | 54    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Current portion long-term debt                                                                                               |   |         | 93    |   |             |        | 159   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Current portion capital leases                                                                                               |   |         | 81    |   |             |        | 41    |  
|                                          
|                                          
|                                          
|                                          
|                                           | Liabilities from risk management activities                                                                                  |   |         | 79    |   |             |        |      |  
|                                          
|                                          
|                                          
|                                          
|                                           | Other                                                                                                                        |   |         | 244   |   |             |        | 224   |  
|                                           |                                                                                                                              |   |         |       |  
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                                              |   | 1,033   |       |   |             | 1,208  |      
|                                           |                                                                                                                              |   |         |       |   |            
|Other Liabilities                         
|                                          
|                                          
|                                          
|                                          
|                                           | Deferred income taxes                                                                                                        |   |         | 1,803 |   |             |        | 1,811 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Capital leases                                                                                                               |   |         | 94    |   |             |        | 145   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Unamortized investment tax credit                                                                                            |   |         | 161   |   |             |        | 167   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Other                                                                                                                        |   |         | 828   |   |             |        | 588   |  
|                                           |                                                                                                                              |   |         |       |  
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                                              |   | 2,886   |       |   |             | 2,711  |      
|                                           |                                                                                                                              |   |         |       |   |            
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|Long-Term Debt (Notes 4 and 5)             |                                                                                                                              |   | 4,546   |       |   |             | 3,344  |      
|                                           |                                                                                                                              |   |         |       |   |            
|Shareholders Equity                      
|                                          
|                                          
|                                          
|                                          
|                                           | Common stock, $10 par value, 400,000,000 shares
authorized, 134,287,832 and 145,119,875 issued
and outstanding, respectively |   |         | 1,343 |   |             |        | 1,451 |  
|                                          
|                                          
|                                          
|                                          
|                                           | Premium on common stock                                                                                                      |   |         | 507   |   |             |        | 548   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Common stock expense                                                                                                         |   |         | (44   | ) |             |        | (48   | )
|                                          
|                                          
|                                          
|                                          
|                                           | Accumulated other comprehensive loss                                                                                         |   |         | (31   | ) |             |        |      |  
|                                          
|                                          
|                                          
|                                          
|                                           | Retained earnings                                                                                                            |   |         | 627   |   |             |        | 1,772 |  
|                                           |                                                                                                                              |   |         |       |   |            
|                                           |                                                                                                                              |   | 2,402   |       |   |             | 3,723  |      
|                                           |                                                                                                                              |   |         |       |   |            
|                                          
|                                          
|                                          
|                                          
|Contingencies
(Note 8)                    
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                          
|                                           |                                                                                                                              |   |         |       |   |            
|Total Liabilities and Shareholders Equity |                                                                                                                              | $ | 10,867  |       |   | $           | 10,986 |      
|                                           |                                                                                                                              |   |         |       |   |            

See Notes to Consolidated Financial
Statements (Unaudited)

13



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##### Table of Contents






The Detroit Edison Company
Consolidated Statement of Changes in Shareholders Equity (Unaudited)
(Millions, Except Per Share Amounts; Shares in Thousands)

|                                                          |                                                              |  |        |         |   |        |       |       |  
|--------------------------------------------------------- | ------------------------------------------------------------ |  | ------ | ------- | - | ------ | ----- | ----- | -
|                                                          |                                                              |  | 2001   |        
|                                                          |                                                              |  |        |        
|                                                          |                                                              |  | Shares |         |   | Amount |      
|                                                          |                                                              |  |        |         |   |        |      
|Common Stock                                             
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Balance at beginning of year                                 |  |        | 145,120 |   |        | $     | 1,451 |  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Repurchase and retirement of common stock                    |  |        | (10,832 | ) |        |       | (108  | )
|                                                          |                                                              |  |        |         |   |       
|                                                          | Balance at June 30, 2001                                     |  |        | 134,288 |   |        | $     | 1,343 |  
|                                                          |                                                              |  |        |         |   |       
|                                                         
|                                                         
|                                                         
|                                                         
|Premium on Common Stock                                  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Balance at beginning of year                                 |  |        |         |   |        | $     | 548   |  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Repurchase and retirement of common stock                    |  |        |         |   |        |       | (41   | )
|                                                          |                                                              |  |        |         |   |        |      
|                                                          | Balance at June 30, 2001                                     |  |        |         |   |        | $     | 507   |  
|                                                          |                                                              |  |        |         |   |        |      
|                                                         
|                                                         
|                                                         
|                                                         
|Common Stock Expense                                     
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Balance at beginning of year                                 |  |        |         |   |        | $     | (48   | )
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Repurchase and retirement of common stock                    |  |        |         |   |        |       | 4     |  
|                                                          |                                                              |  |        |         |   |        |      
|                                                          | Balance at June 30, 2001                                     |  |        |         |   |        | $     | (44   | )
|                                                          |                                                              |  |        |         |   |        |      
|                                                         
|                                                         
|                                                         
|                                                         
|Accumulated Other Comprehensive Loss                     
|                                                         
|                                                         
|                                                         
|                                                         
|Net Unrealized Losses on Derivatives Qualified as Hedges:
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Balance at beginning of year                                 |  |        |         |   |        | $     |      |  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Net
change in unrealized gains and losses (Note 7)           |  |        |         |   |        |       | (31   | )
|                                                          |                                                              |  |        |         |   |        |      
|                                                          | Balance at June 30, 2001                                     |  |        |         |   |        | $     | (31   | )
|                                                          |                                                              |  |        |         |   |        |      
|                                                         
|                                                         
|                                                         
|                                                         
|Retained Earnings                                        
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Balance at beginning of year                                 |  |        |         |   |        | $     | 1,772 |  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Net income                                                   |  |        |         |   |        |       | 36    |  
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Dividends declared on common stock ($1.10 per share)         |  |        |         |   |        |       | (153  | )
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Distribution of International Transmission Company to parent |  |        |         |   |        |       | (327  | )
|                                                         
|                                                         
|                                                         
|                                                         
|                                                          | Repurchase and retirement of common stock                    |  |        |         |   |        |       | (701  | )
|                                                          |                                                              |  |        |         |   |        |      
|                                                          | Balance at June 30, 2001                                     |  |        |         |   |        | $     | 627   |  
|                                                          |                                                              |  |        |         |   |        |      
|                                                         
|                                                         
|                                                         
|                                                         
|Total Shareholders Equity                                |                                                              |  |        |         |   | $      | 2,402 |      
|                                                          |                                                              |  |        |         |   |        |      

See Notes to Consolidated Financial
Statements (Unaudited)

14



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##### Table of Contents






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

---

NOTE 1  CORPORATE STRUCTURE

Detroit Edison, a wholly owned subsidiary of DTE (an exempt holding company under the Public Utility Holding
Company Act of 1935, as amended), is a Michigan public utility engaged in the generation, purchase, distribution
and sale of electric energy to 2.1 million customers in a 7,600 square-mile Southeastern Michigan service area.

Effective January 2001, Detroit Edison transferred its transmission assets, with a book value of approximately
$390 million, to a wholly owned subsidiary, International Transmission Company (ITC). On May 31, 2001, Detroit
Edison distributed 100 percent of the shares of ITC to DTE.

NOTE 2  GENERAL

These consolidated financial statements (unaudited) should be read in conjunction with the Annual Report Notes
and the Quarterly Report Notes. The Notes contained herein update and supplement matters discussed in the Annual
Report Notes and the Quarterly Report Notes.

The preparation of the financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.

The consolidated financial statements are unaudited, but in the opinion of Detroit Edison, 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 3  RESTRUCTURING CHARGE

In the second quarter of 2001, Detroit Edison recorded a restructuring charge of $163 million ($106 million after
tax). The charge was associated with a workforce reduction plan in conjunction with DTEs acquisition of MCN
Energy Group Inc., which included early retirement incentives along with voluntary separation arrangements for
890 employees primarily in overlapping corporate support functions. Approximately $13 million of the benefits
have been paid as of June 30, 2001, and it is anticipated that the remaining benefits will be paid from Detroit
Edisons retirement plans.

15



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##### Table of Contents



NOTE 4  SECURITIZATION

Michigan Public Acts 141 and 142 permit Detroit Edison to recover certain stranded costs through securitization.
The MPSC approved the issuance of securitization bonds for the benefit of Detroit Edison. Detroit Edison formed
The Detroit Edison Securitization Funding LLC (Securitization LLC) for the purpose of securitizing its stranded
costs.

In March 2001, the Securitization LLC issued $1.750 billion of its Securitization Bonds, Series 2001-1 and
Detroit Edison sold $1.750 billion of stranded costs to its Securitization LLC. The Securitization Bonds mature
over a period of up to fifteen years and have an average interest rate of 6.3%. Detroit Edison has implemented a
non-bypassable surcharge on its customer bills, effective March 26, 2001, for the purpose of collecting amounts
sufficient to provide for the payment of interest and repayment of principal.

The Securitization LLC is independent of Detroit Edison, as is its ownership of the securitization property. Due
to principles of consolidation, stranded costs sold by Detroit Edison to the Securitization LLC and the $1.750
billion of its securitization bonds appear on Detroit Edisons balance sheet. Detroit Edison makes no claim to
these assets and ownership of such assets has vested in the Securitization LLC and been assigned to the trustee
for the Securitization Bonds. Funds collected by Detroit Edison, acting in the capacity of a servicer for the
Securitization LLC, are remitted to the trustee for the Securitization Bonds. Neither the securitization
property nor funds collected from Detroit Edisons customers for the payment of costs related to the
Securitization LLC and Securitization Bonds are available to Detroit Edisons creditors.

NOTE 5  LONG-TERM DEBT

Detroit Edison utilized a portion of the proceeds from securitization to redeem the following debt during the
six-month period ended June 30, 2001:

|              |       |               |          |   |                     |                     |          |            |        |     |     |     | 
|------------- | ----- | ------------- | -------- | - | ------------------- | ------------------- | -------- | ---------- | ------ | --- | --- | --- | 
|              |       |               | Interest |   |                     | Scheduled           |          |            | Amount |    
|Series        |       | Rate          |          |   | Redemption          |                     |          | (millions) |       
|              |       |               |          |   |                     |                     |          |            |       
|1990 Series A |       |               | 7.904    | % |                     |                     | 04/02/01 |            |        | $   | 6   |    
|             
|             
|             
|             
|1990 Series A |       |               | 7.904    |   |                     | 04/01/02 - 03/31/20 |          |            |        | 119 |    
|             
|             
|             
|             
|1990 Series B |       |               | 7.904    |   |                     |                     | 04/02/01 |            |        |     | 10  |    
|             
|             
|             
|             
|1990 Series C |       |               | 8.357    |   |                     |                     | 04/02/01 |            |        |     | 3   |    
|             
|             
|             
|             
|1992 Series D |       | 7.110 - 8.310 |          |   | 08/01/02 - 08/01/22 |                     |          |            | 96     |    
|             
|             
|             
|             
|1993 Series C |       | 7.350 - 8.30  |          |   | 01/15/03 - 01/15/23 |                     |          |            | 55     |    
|             
|             
|             
|             
|1993 Series E |       | 7.770 - 7.820 |          |   |                     | 03/15/23            |          |            |        | 23  |    
|             
|             
|             
|             
|1993 Series G |       |               | 6.56     |   |                     |                     | 05/01/01 |            |        |     | 100 |    
|             
|             
|             
|             
|1993 Series J |       |               | 7.74     |   |                     |                     | 06/01/18 |            |        |     | 44  |    
|             
|             
|             
|             
|1994 Series C |       |               | Variable |   |                     |                     | 08/15/34 |            |        |     | 100 |    
|             
|             
|             
|             
|2000 Series A |       |               | 7.5      |   |                     |                     | 02/01/05 |            |        |     | 59  |    
|              |       |               |          |   |                     |                     |          |            |        |     |    
|              | Total |               |          |   |                     |                     |          |            |        |     | $   | 615 | 
|              |       |               |          |   |                     |                     |          |            |        |     |    

16



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##### Table of Contents



NOTE 6  FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS

In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No. 133 Accounting for Derivative
Instruments and Hedging Activities. SFAS No. 133, as amended, establishes accounting and reporting standards
for derivative instruments and for hedging activities. It requires that all derivative instruments be recognized
as either assets or liabilities, measured at fair value. The accounting for changes in fair value depends upon
the purpose of the derivative instrument and whether it is designated as a hedge and qualifies for hedge
accounting. To the extent derivative instruments qualify as hedges and are designated as hedges of the
variability of cash flows associated with forecasted transactions, the effective portion of the gain or loss on
such derivative instruments is generally reported in other comprehensive income. The ineffective portion, if
any, is reported in net income. Such amounts reported in other comprehensive income are reclassified into net
income when the forecasted transaction affects earnings. If a cash flow hedge is discontinued because it is
probable that the forecasted transaction will not occur, the net gain or loss is immediately reclassified into
earnings. To the extent derivative instruments qualify as hedges and are designated as hedges of changes in fair
value of an existing asset, liability or firm commitment, the gain or loss on the hedging instrument is
recognized in earnings along with the changes in fair value of the hedged asset, liability or firm commitment
attributable to the hedged risk.

SFAS No. 133 requires that as of the date of initial adoption, the difference between the fair market value of
derivative instruments recorded on the balance sheet and the previous carrying amount of those derivatives be
reported in net income or other comprehensive income, as appropriate, as the cumulative effect of a change in
accounting principle in accordance with Accounting Principles Board Opinion 20, Accounting Changes.

As of January 1, 2001, Detroit Edison adopted SFAS No. 133, as required. The cumulative effect of the adoption
of SFAS No. 133 was an after-tax decrease in net income of $3 million, and an after-tax increase in other
comprehensive income of $13 million. The financial statement impact of recording the various SFAS 133
transactions at January 1, 2001 was as follows:

|                                                      |  |            |    |  
|----------------------------------------------------- |  | ---------- | -- | -
|                                                      |  | Amount     |   
|                                                      |  | Increase   |   
|Financial Statement Line Item                         |  | (Decrease) |   
|                                                      |  |            |   
|                                                      |  | (millions) |   
|Assets from risk management activities                |  | $          | 26 |  
|                                                     
|                                                     
|                                                     
|                                                     
|Liabilities from risk management activities           |  | $          | 10 |  
|                                                     
|                                                     
|                                                     
|                                                     
|Income taxes payable                                  |  | $          | 6  |  
|                                                     
|                                                     
|                                                     
|                                                     
|Other comprehensive income                            |  | $          | 13 |  
|                                                     
|                                                     
|                                                     
|                                                     
|Cumulative effect of a change in accounting principle |  | $          | (3 | )

17



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##### Table of Contents



Commodity Price Risk

Forward Energy Purchase Contracts

Detroit Edison uses over-the-counter (OTC) forward contracts and options to manage the risk of fluctuations in
the market price of electricity. To achieve its hedging objectives, Detroit Edison chooses the time to enter
into purchase and sale contracts and selects the types of instruments. The forward contracts used to financially
hedge electricity price risks are relatively liquid instruments and provide Detroit Edison the flexibility to
execute its hedging strategies and meet its objectives.

Certain of these contracts have been formally designated as cash flow hedges of the forecasted purchase of power
for accounting purposes. Such contracts are measured at fair market value and are recorded as assets and
liabilities in the consolidated balance sheets. Gains and losses on these instruments are included in other
comprehensive income. For the three- and six-month periods ended June 30, 2001, Detroit Edison recorded a net of
tax charge of $34 million and $44 million, respectively, in other comprehensive income for these hedges. Amounts
recorded in other comprehensive income will be reclassified to fuel and purchased power expense as the forecasted
purchases of electricity affect earnings. At June 30, 2001, the estimated net amount of existing loss that is
expected to be reclassified into earnings within the next 12 months is approximately $38 million. The maximum
length of time over which Detroit Edison is hedging its exposure to
the variability of future cash flows is two
years. Ineffectiveness recognized in these hedging relationships was
immaterial for the three- and six-month
periods ended June 30, 2001.

Other Derivative Instruments

Certain of Detroit Edisons electricity and natural gas forward purchase and sale contracts, and purchased
electricity and coal option contracts entered into for the purpose of economically hedging its exposure to
commodity risk, do not qualify for hedge accounting under the provisions of SFAS No. 133. Detroit Edison marks
these contracts to market on its consolidated balance sheet and records an offsetting gain or loss in earnings.
Such holding gains and losses are recorded in revenues or fuel and purchased power expense, depending on the type
of contract.

Certain of Detroit Edisons forward electric contracts are considered normal purchases and sales, as defined by
SFAS No. 133, and therefore are excluded from the scope of SFAS No. 133. In June 2001, the Derivatives
Implementation Group (DIG), a committee of the FASB responsible for providing guidance on the implementation of
SFAS No. 133, reached final conclusions regarding certain contracts in the power generation industry. In June
2001, DIG issue No. C15, Scope Exceptions: Normal Purchases and Normal Sales Exception for Option-Type
Contracts and Forward Contracts in Electricity was issued. The FASB concluded that because electricity cannot
be readily stored in significant quantities, and the entity engaged in selling electricity is obligated to
maintain sufficient capacity to meet the electricity needs of its customer base, an option contract for the
purchase of electricity that meets certain criteria is eligible for the normal purchases and normal sales
exception. Detroit Edison continues to analyze the impact this new guidance will have on its accounting for
derivative instruments.

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##### Table of Contents



The FASB continues to develop interpretive guidance for SFAS No. 133. Accordingly, any future interpretations of
SFAS No. 133 may impact Detroit Edisons ultimate application of the standard.

NOTE 7  COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) is the change in equity during a period from transactions and other events and
circumstances from non-owner sources. Detroit Edison did not have any comprehensive income (loss) in 2000. The
following table displays comprehensive income (loss) for the applicable periods:

|                                               |                                                          |   |                                                                                                               |  |            |      |    |         |   |      | 
|---------------------------------------------- | -------------------------------------------------------- | - | ------------------------------------------------------------------------------------------------------------- |  | ---------- | ---- | -- | ------- | - | ---- | 
|                                               |                                                          |   |                                                                                                               |  | Three      |      |    | Six     |  
|                                               |                                                          |   |                                                                                                               |  | Months     |      |    | Months  |  
|                                               |                                                          |   |                                                                                                               |  | Ended      |      |    | Ended   |  
|                                               |                                                          |   |                                                                                                               |  | 6/30/01    |      |    | 6/30/01 |  
|                                               |                                                          |   |                                                                                                               |  |            |      |    |         |  
|                                               |                                                          |   |                                                                                                               |  | (millions) |     
|Net income (loss)                              |                                                          | $ | (77)                                                                                                          |  |            | $    | 36 |        
|                                              
|                                              
|                                              
|                                              
|Other comprehensive income (loss), net of tax:
|                                              
|                                              
|                                              
|                                              
|                                               | Net unrealized gains on derivatives qualified as hedges:
|                                              
|                                              
|                                              
|                                              
|                                               |                                                          |   | Net unrealized holding gains due to cumulative effect
of a change in accounting principle, net of taxes of $6 |  |            |     |    |         |   | 13   | 
|                                               |                                                          |   | Other net unrealized holding losses arising during the
period, net of taxes of $20 and $25, respectively      |  |            | (37) |    |         |   | (47) | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                          |   | Amounts reclassified to earnings, net of taxes of $2                                                          |  | 3          |      |    |         | 3 |     
|                                               |                                                          |   |                                                                                                               |  |            |     
|Comprehensive income (loss)                    |                                                          | $ | (111)                                                                                                         |  |            | $    | 5  |        
|                                               |                                                          |   |                                                                                                               |  |            |     

NOTE 8 CONTINGENCIES

Detroit Edison is involved in certain legal (including commercial matters), administrative
and environmental proceedings before various courts, arbitration panels and governmental agencies concerning
claims arising in the ordinary course of business. These proceedings include certain contract disputes,
environmental reviews and investigations, and pending judicial matters. Management cannot predict the final
disposition of such proceedings. Management regularly reviews legal matters and records provisions for claims
that are considered probable of loss. The resolution of pending
proceedings is not expected to have
a material effect on Detroit Edison's financial statements in the
period that they are resolved.

19



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##### Table of Contents






Independent Accountants Report

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

We have reviewed the accompanying condensed consolidated balance sheet of The Detroit Edison Company and
subsidiaries as of June 30, 2001, and the related condensed consolidated statements of income for the three-month
and six-month periods ended June 30, 2001 and 2000, the condensed consolidated statements of cash flows for the
six-month periods ended June 30, 2001 and 2000, and the condensed consolidated statement of changes in
shareholders equity for the six-month period ended June 30, 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 balance sheet of The Detroit Edison Company and subsidiaries as of December 31, 2000,
and the related consolidated statements of income, changes in shareholders equity, and cash flows for the year
then ended (not presented herein); and in our report dated January 24, 2001, we expressed an unqualified opinion
on those consolidated financial statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 2000 is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.

DELOITTE & TOUCHE LLP

Detroit, Michigan
August 14, 2001

20



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##### Table of Contents






PART II  OTHER INFORMATION




Legal Proceedings

In May 2001, a class action complaint (Edward Johnson et al v Detroit Edison, U.S. District Court, Eastern
District of Michigan) was filed, seeking to certify a class of African American persons allegedly discriminated
against with respect to denial of training opportunities. Detroit Edison believes that the claims made are
without merit and that class action certification is not appropriate.

In July 2001, Ercilio Beltran v Detroit Edison (Circuit Court for the County of Wayne, Michigan) was filed by the
plaintiff individually and on behalf of similarly-situated individuals seeking to represent a class of job
applicants who allege discrimination on the basis of race and national origin with respect to Detroit Edisons
pre-employment testing program and testing-related procedures. Detroit Edison believes that the claims made are
without merit and that class action certification is not appropriate.




Other Information

On May 31, 2001, Anthony F. Earley, Jr., Susan M.
Beale and Eric H. Peterson (all existing employees of DTE affiliates)
were elected as directors of Detroit Edison, replacing the former Board.

MPSC

Unbundling Case

On June 4, 2001, pursuant to Public Act 141 of 2000 (PA 141), Detroit Edison filed with the MPSC an application
outlining its proposal to unbundle its existing rates. PA 141 required utilities to submit applications to
unbundle their existing rates and separately identify and charge for discrete services. Intervening parties have
filed pleadings at the MPSC indicating their belief that Detroit Edisons application did not comply with PA 141,
claiming that the Companys proposal did not separate and propose charges for the discrete services it provided.
They have requested that the Detroit Edison be ordered to file another application. The MPSC Staff has supported
these parties positions. Detroit Edison believes, and has proposed, that it provides two discrete services:
distribution service, which will continue to be regulated by the MPSC, and bulk power supply service, which is
available from market suppliers. Distribution service has already been unbundled through the MPSC-authorized
Retail Access Service Tariffs. In its application, Detroit Edison has proposed to make its customers aware of
the costs associated with distribution service defined by the Retail Access Service Tariffs. The remaining costs
are those against which price comparisons can be made when the customer receives bulk power supply offers from
alternative electric suppliers.

Performance Standards

On July 11, 2001, the MPSC proposed minimum levels for service quality and distribution system standards that
utilities, including Detroit Edison, were expected to achieve, pursuant to the requirements of PA 141. The
proposed standards address a number of issues,

21



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##### Table of Contents



including electric outage and safety measurements, and customer
relations. Under the Commissions proposed standards, if Detroit Edison failed to meet minimum standards for
restoring power after an outage, Detroit Edison would be required to provide affected customers with bill
credits. The MPSC is expected to issue final standards after comments are received and considered. In a related
matter, the MPSC declined to propose performance standards that would
apply to the transmission system.

22



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##### Table of Contents






Exhibits and Reports on Form 8-K



|(a) |  | Exhibits
|--- |  | --------



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

|        |  |                                                                                                                                                                                                                                                                                                                                   
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit
|Number 
|       
|       
|       
|       
|       
|4-226  |  | Supplemental Indenture dated as of May 1, 2001, establishing the
2001 Series BP Mortgage Bonds.                                                                                                                                                                                                                                   
|       
|       
|       
|       
|12-33  |  | The Detroit Edison Company Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                     
|       
|       
|       
|       
|15-18  |  | Awareness Letter of Deloitte & Touche LLP regarding their report dated August 14, 2001.                                                                                                                                                                                                                                           
|       
|       
|       
|       
|99-45  |  | $300 million Credit Agreement dated July 11, 2001.                                                                                                                                                                                                                                                                                
|       
|       
|       
|       
|(ii)    |  | Exhibits incorporated herein by reference.                                                                                                                                                                                                                                                                                        
|       
|       
|       
|       
|3(a)   |  | Restated Articles of Incorporation of Detroit Edison, as filed December 10, 1991 with
the State of Michigan, Department of Commerce  Corporation and Securities Bureau
(Exhibit 3-13 to Form 10-Q for quarter ended June 30, 1999).                                                                                              
|       
|       
|       
|       
|3(c)   |  | Bylaws of The Detroit Edison Company, as amended through September 22, 1999. (Exhibit
3-14 to Form 10-Q for quarter ended September 30, 1999).                                                                                                                                                                                    
|       
|       
|       
|       
|4(a)   |  | Mortgage and Deed of Trust, dated as of October 1, 1924, between Detroit Edison (File
No. 1-2198) and First Chicago Trust Company of New York as Trustee (Exhibit B-1 to
Registration No. 2-1630) and indentures supplemental thereto, dated as of dates
indicated below, and filed as exhibits to the filings as set forth below:

|                  |  |                                                            
|----------------- |  | -----------------------------------------------------------
|September 1, 1947 |  | Exhibit B-20 to Registration No. 2-7136                    
|                 
|                 
|                 
|                 
|November 15, 1971 |  | Exhibit 2-B-38 to Registration No. 2-42160                 
|                 
|                 
|                 
|                 
|January 15, 1973  |  | Exhibit 2-B-39 to Registration No. 2-46595                 
|                 
|                 
|                 
|                 
|June 1, 1978      |  | Exhibit 2-B-51 to Registration No. 2-61643                 
|                 
|                 
|                 
|                 
|June 30, 1982     |  | Exhibit 4-30 to Registration No. 2 78941                   
|                 
|                 
|                 
|                 
|August 15, 1982   |  | Exhibit 4-32 to Registration No. 2-79674                   
|                 
|                 
|                 
|                 
|December 1, 1989  |  | Exhibit 4-211 to Form 10-K for year ended December 31,
2000
|                 
|                 
|                 
|                 
|February 15, 1990 |  | Exhibit 4-212 to Form 10-K for year ended December 31, 2000
|                 
|                 
|                 
|                 
|April 1, 1991     |  | Exhibit 4-15 to Form 10-K for year
ended December 31, 1996 

23



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##### Table of Contents



|                   |  |                                                                             
|------------------ |  | ----------------------------------------------------------------------------
|November 1, 1991   |  | Exhibit 4-181 to Form 10-K for year ended December 31,
1996                 
|                  
|                  
|                  
|                  
|January 15, 1992   |  | Exhibit 4-182 to Form 10-K for year
ended December 31, 1996                 
|                  
|                  
|                  
|                  
|February 29, 1992  |  | Exhibit 4-187 to Form 10-Q for
quarter ended March 31, 1998                 
|                  
|                  
|                  
|                  
|April 15, 1992     |  | Exhibit 4-188 to Form 10-Q for
quarter ended March 31, 1998                 
|                  
|                  
|                  
|                  
|July 15, 1992      |  | Exhibit 4-189 to Form 10-Q for
quarter ended March 31, 1998                 
|                  
|                  
|                  
|                  
|November 30, 1992  |  | Exhibit 213 to Form 10-K for year ended December 31, 2000                   
|                  
|                  
|                  
|                  
|January 1, 1993    |  | Exhibit 4-131 to Registration No. 33-56496                                  
|                  
|                  
|                  
|                  
|March 1, 1993      |  | Exhibit 4-191 to Form 10-Q for
quarter ended March 31, 1998                 
|                  
|                  
|                  
|                  
|April 1, 1993      |  | Exhibit 4-214 to Form 10-K for year ended December 31,
2000                 
|                  
|                  
|                  
|                  
|April 26, 1993     |  | Exhibit 4-215 to Form 10-K for
year ended December 31, 2000                 
|                  
|                  
|                  
|                  
|May 31, 1993       |  | Exhibit 4-148 to Registration No. 33-64296                                  
|                  
|                  
|                  
|                  
|June 30, 1993      |  | Exhibit 4-216 to Form 10-K for year
ended December 31, 2000 (1993 Series AP)
|                  
|                  
|                  
|                  
|June 30, 1993      |  | Exhibit 4-150 to Form 10-Q
for quarter ended June 30, 1993 (1993 Series H)  
|                  
|                  
|                  
|                  
|September 15, 1993 |  | Exhibit 4-217 to Form 10-K for
year ended December 31, 2000                 
|                  
|                  
|                  
|                  
|March 1, 1994      |  | Exhibit 4-163 to Registration No.
33-53207                                  
|                  
|                  
|                  
|                  
|June 15, 1994      |  | Exhibit 4-218 to Form 10-K for year
ended December 31, 2000                 
|                  
|                  
|                  
|                  
|August 15, 1994    |  | Exhibit 4-220 to Form 10-K for year
ended December 31, 2000                 
|                  
|                  
|                  
|                  
|August 1, 1995     |  | Exhibit 4-221 to Form 10-K for year
ended December 31, 2000                 
|                  
|                  
|                  
|                  
|August 1, 1999     |  | Exhibit 4-204 to Form 10-Q for quarter ended September
30, 1999             
|                  
|                  
|                  
|                  
|August 15, 1999    |  | Exhibit 4-205 to Form 10-Q for quarter ended September
30, 1999             
|                  
|                  
|                  
|                  
|January 1, 2000    |  | Exhibit 4-205 to Form 10-K for year ended December 31,
1999                 
|                  
|                  
|                  
|                  
|April 15, 2000     |  | Exhibit 206 to Form 10-Q for quarter
ended March 31, 2000.                  
|                  
|                  
|                  
|                  
|August 1, 2000     |  | Exhibit 4-210 to Form 10-Q for
quarter ended September 30, 2000             
|                  
|                  
|                  
|                  
|March 15, 2001     |  | Exhibit 4-222 to Form 10-Q for quarter ended March 31,
2001                 

24



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##### Table of Contents



|       |  |                                                                                                                                                                                                                                                                                                                                     
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4(b)  |  | Collateral Trust Indenture (notes), dated as of June 30, 1993 (Exhibit 4-152 to Registration No. 33-50325).                                                                                                                                                                                                                         
|      
|      
|      
|      
|4(c)  |  | First Supplemental Note Indenture, dated as of June 30, 1993
(Exhibit 4-153 to Registration No. 33-50325).                                                                                                                                                                                                                          
|      
|      
|      
|      
|4(d)  |  | First Amendment, dated as of July, 2000, to the First Supplemental Indenture, dated as
of June 30, 1993, to the Collateral Trust Indenture (Notes), dated as of June 30, 1993
(Exhibit 4-208 to Form 10-Q for quarter ended September 30, 2000).                                                                                    
|      
|      
|      
|      
|4(e)  |  | Second Supplemental Note Indenture, dated as of September 15, 1993 (Exhibit 4-159 to Form
10-Q for quarter ended September 30, 1993).                                                                                                                                                                                               
|      
|      
|      
|      
|4(f)  |  | First Amendment, dated as of August 15, 1996, to Second Supplemental Note Indenture
(Exhibit 4-17 to Form 10-Q for quarter ended September 30, 1996).                                                                                                                                                                               
|      
|      
|      
|      
|4(g)  |  | Third Supplemental Note Indenture, dated as of August 15, 1994 (Exhibit 4-169 to Form
10-Q for quarter ended September 30, 1994).                                                                                                                                                                                                   
|      
|      
|      
|      
|4(h)  |  | First Amendment, dated as of December 12, 1995, to Third Supplemental Note Indenture,
dated as of August 15, 1994 (Exhibit 4-12 to Registration No. 333-00023).                                                                                                                                                                     
|      
|      
|      
|      
|4(i)  |  | Sixth Supplemental Note Indenture, dated as of May 1, 1998, between Detroit Edison and
Bankers Trust Company, as Trustee, creating the 7.54% Quarterly Income Debt Securities
(QUIDS), including form of QUIDS. (Exhibit 4-193 to Form 10-Q for quarter ended
June 30, 1998).                                                     
|      
|      
|      
|      
|4(j)  |  | Seventh Supplemental Note Indenture, dated as of October 15, 1998, between Detroit
Edison and Bankers Trust Company, as Trustee, creating the 7.375% QUIDS, including
form of QUIDS. (Exhibit 4-198 to Form 10-K for year ended December 31, 1998).                                                                                 
|      
|      
|      
|      
|4(k)  |  | Eighth Supplemental Indenture, dated as of April 15, 2000, appointing Bank One Trust
Company of New York as Trustee under the Detroit Edison Trust Indenture (Notes), dated
as of June 30, 1993. (Exhibit 4-207 to form 10-Q for the quarter ended March 31, 2000).                                                                 
|      
|      
|      
|      
|4(l)  |  | Standby Note Purchase Credit Facility, dated as of August 17, 1994, among The Detroit
Edison Company, Barclays Bank PLC, as Bank and Administrative Agent, Bank of America,
The Bank of New York, The Fuji Bank Limited, the Long-Term Credit Bank of Japan, LTD,
Union Bank and Citicorp Securities, Inc. and First Chicago Capital

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##### Table of Contents



|        |  |                                                                                                                                                                                                                                                                                                                                                                                      
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       
|       
|       
|       
|        |  | Markets, Inc. as
Remarketing Agents (Exhibit 99-18 to Form 10-Q for quarter ended September 30, 1994).                                                                                                                                                                                                                                                                               
|       
|       
|       
|       
|10(a)  |  | Securitization Property Sale Agreement (Exhibit 10-42 to Form 10-Q for quarter ended
March 31, 2001).                                                                                                                                                                                                                                                                                
|       
|       
|       
|       
|99(a)  |  | Belle River Participation Agreement between Detroit Edison and Michigan Public Power
Agency, dated as of December 1, 1982 (Exhibit 28-5 to Registration No. 2-81501).                                                                                                                                                                                                                
|       
|       
|       
|       
|99(b)  |  | Belle River Transmission Ownership and Operating Agreement between Detroit Edison and
Michigan Public Power Agency, dated as of December 1, 1982 (Exhibit 28-6 to
Registration No. 2-81501).                                                                                                                                                                                         
|       
|       
|       
|       
|99(c)  |  | U.S. $160,000,000 Standby Note Purchase Credit Facility, dated as of October 26, 1999,
among Detroit Edison, the Banks signatory thereto, Barclays Bank PLC, as
Administrative Agent and Barclays Capital Inc., Lehman Brothers Inc. and Banc One
Capital Markets, Inc., as Remarketing Agents. (Exhibit 99-29 to Form 10-Q for quarter
ended September 30, 1999).                  
|       
|       
|       
|       
|99(d)  |  | Standby Note Purchase Credit Facility, dated as of September 12, 1997, among The Detroit
Edison Company and the Banks Signatory thereto and The Chase Manhattan Bank, as
Administrative Agent, and Citicorp Securities, Inc., Lehman Brokers, Inc., as
Remarketing Agents and Chase Securities, Inc. as Arranger. (Exhibit 99-26 to Form
10-Q for quarter ended September 30, 1997).
|       
|       
|       
|       
|99(e)  |  | Order, dated November 2, 2000, of the Michigan Public Service Commission in U-12478
(Exhibit 99-3780 to Form 10-Q for quarter ended September 30, 2000).                                                                                                                                                                                                                             
|       
|       
|       
|       
|99(f)  |  | Order, dated January 4, 2001, of the Michigan Public Service Commission in U-12478.                                                                                                                                                                                                                                                                                                  
|       
|       
|       
|       
|99(g)  |  | Inter-Creditor Agreement (Exhibit 99-41 to Form 10-Q for quarter ended March 31, 2001).                                                                                                                                                                                                                                                                                              
|       
|       
|       
|       
|99(h)  |  | Amendment to Trade Receivables Purchase and Sale Agreement (Exhibit 99-42 to Form 10-Q
for quarter ended March 31, 2001).                                                                                                                                                                                                                                                            
|       
|       
|       
|       
|99(I)  |  | Amended and Restated Trade Receivables Purchase and Sale Agreement (Exhibit 99-43 to
Form 10-Q for quarter ended March 31, 2001).                                                                                                                                                                                                                                                    



|(b) |  | Registrant did not file any Current Reports on Form 8-K during the second quarter of 2001.
|--- |  | ------------------------------------------------------------------------------------------

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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 | August 14, 2001 |  |  | By /s/ DANIEL G. BRUDZYNSKI
|    
|    
|    
|    
|     |                 |  |  | Daniel G. Brudzynski       
|    
|    
|    
|    
|     |                 |  |  | Chief Accounting Officer,  
|    
|    
|    
|    
|     |                 |  |  | Vice President             
|    
|    
|    
|    
|     |                 |  |  | and Controller             

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##### Table of Contents



Index to Exhibits

|        |  |                                                                                                
|------- |  | -----------------------------------------------------------------------------------------------
|Exhibit
|Number  |  | Description                                                                                    
|        |  |                                                                                                
|       
|       
|       
|       
|4-226  |  | Supplemental Indenture dated as of May 1, 2001, establishing the
2001 Series BP Mortgage Bonds.
|       
|       
|       
|       
|12-33  |  | The Detroit Edison Company Computation of Ratio of Earnings to Fixed Charges.                  
|       
|       
|       
|       
|15-18  |  | Awareness Letter of Deloitte & Touche LLP regarding their report dated August 14, 2001.        
|       
|       
|       
|       
|99-45  |  | $300 million Credit Agreement dated July 11, 2001.                                             

23