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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 Quarterly Period Ended June 30, 2003

Commission file number 1-2198

The registrant meets the conditions set forth in General Instruction H (1) (a) and (b)
of Form 10-Q and is, therefore, filing this Form with the reduced disclosure format.

THE DETROIT EDISON COMPANY
(Exact name of registrant as specified in its charter)

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

313-235-4000
(Registrants telephone number, including area code)

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

Yes x No o

Indicate by check mark whether the registrant is an accelerated filer as defined in
Rule 12b-2 of the Exchange Act.

Yes o No x



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TABLE OF CONTENTS



|                                                 |                                                                  |                                                                                    |  |  |  |  |  | 
|------------------------------------------------ | ---------------------------------------------------------------- | ---------------------------------------------------------------------------------- |  |  |  |  |  | 
|Definitions                                     
|Forward-Looking Statements                      
|Part I-Financial Information                    
|                                                 | Item 2. Managements Narrative Analysis of Results of Operations
|                                                 | Item 4. Controls and Procedures                                 
|                                                 | Item 1. Financial Statements                                    
|                                                 |                                                                  | Consolidated Statement of Operations                                              
|                                                 |                                                                  | Consolidated Statement of Financial Position                                      
|                                                 |                                                                  | Consolidated Statement of Cash Flows                                              
|                                                 |                                                                  | Consolidated Statement of Changes in Shareholders Equity and Comprehensive Income
|                                                 |                                                                  | Notes to Consolidated Financial Statements                                        
|                                                 |                                                                  | 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                                       
|Awareness Letter of Deloitte & Touche LLP       
|302 Certification of Chief Executive Officer    
|302 Certification of Chief Financial Officer    
|906 Certification of Chief Executive Officer    
|906 Certification of Chief Financial Officer    
|Amended Trade Receivables Purchase & Sale Agrmnt
|Amended Trade Receivables Purchase & Sale Agrmnt



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The Detroit Edison Company

Quarterly Report on Form 10-Q
Quarter Ended June 30, 2003

Table of Contents

|                           |      | 
|-------------------------- | ---- | 
|                           | PAGE | 
|                           |      | 
|Definitions                | 3    | 
|                           |      | 
|Forward-Looking Statements | 4    | 

Part I  Financial Information

|        |  |                                                                                    |  |   
|------- |  | ---------------------------------------------------------------------------------- |  | --
|Item 1. |  | Financial Statements                                                               |  |   
|        |  |                                                                                    |  |   
|        |  | Consolidated Statement of Operations                                               |  | 11
|        |  |                                                                                    |  |   
|        |  | Consolidated Statement of Financial Position                                       |  | 12
|        |  |                                                                                    |  |   
|        |  | Consolidated Statement of Cash Flows                                               |  | 14
|        |  |                                                                                    |  |   
|        |  | Consolidated Statement of Changes in Shareholders Equity
and Comprehensive Income |  | 15
|        |  |                                                                                    |  |   
|        |  | Notes to Consolidated Financial Statements                                         |  | 16
|        |  |                                                                                    |  |   
|        |  | Independent Accountants Report                                                    |  | 22
|        |  |                                                                                    |  |   
|Item 2. |  | Managements Narrative Analysis of Results of Operations                           |  | 5 
|        |  |                                                                                    |  |   
|Item 4. |  | Controls and Procedures                                                            |  | 10

Part II  Other Information

|        |  |                                  |  |   
|------- |  | -------------------------------- |  | --
|Item 1. |  | Legal Proceedings                |  | 23
|        |  |                                  |  |   
|Item 5. |  | Other Information                |  | 23
|        |  |                                  |  |   
|Item 6. |  | Exhibits and Reports on Form 8-K |  | 23
|        |  |                                  |  |   

|Signature | 25 | 
|--------- | -- | 

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DEFINITIONS

|                |  |                                                                                                                                                                                                                                                                                                                                    
|--------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Company         |  | Detroit Edison Company and subsidiary companies                                                                                                                                                                                                                                                                                    
|                |  |                                                                                                                                                                                                                                                                                                                                    
|Customer Choice |  | Statewide initiatives giving customers in Michigan the option
to choose alternative suppliers for electricity and gas.                                                                                                                                                                                                             
|                |  |                                                                                                                                                                                                                                                                                                                                    
|Detroit Edison  |  | The Detroit Edison Company (a wholly owned subsidiary of
DTE Energy Company) and subsidiary companies                                                                                                                                                                                                                              
|                |  |                                                                                                                                                                                                                                                                                                                                    
|DTE Energy      |  | DTE Energy Company, the parent of Detroit Edison and Enterprises                                                                                                                                                                                                                                                                   
|                |  |                                                                                                                                                                                                                                                                                                                                    
|EPA             |  | United States Environmental Protection Agency                                                                                                                                                                                                                                                                                      
|                |  |                                                                                                                                                                                                                                                                                                                                    
|FERC            |  | Federal Energy Regulatory Commission                                                                                                                                                                                                                                                                                               
|                |  |                                                                                                                                                                                                                                                                                                                                    
|MCN Energy      |  | MCN Energy Group Inc. and subsidiary companies that were merged
into Enterprises                                                                                                                                                                                                                                                   
|                |  |                                                                                                                                                                                                                                                                                                                                    
|MichCon         |  | Michigan Consolidated Gas Company and subsidiary companies                                                                                                                                                                                                                                                                         
|                |  |                                                                                                                                                                                                                                                                                                                                    
|MPSC            |  | Michigan Public Service Commission                                                                                                                                                                                                                                                                                                 
|                |  |                                                                                                                                                                                                                                                                                                                                    
|MWh             |  | Megawatthour                                                                                                                                                                                                                                                                                                                       
|                |  |                                                                                                                                                                                                                                                                                                                                    
|PSCR            |  | A power supply cost recovery mechanism authorized by the MPSC
that allowed Detroit Edison to recover through rates its fuel,
fuel-related and purchased power electric expenses. The clause
was suspended under Michigans restructuring legislation signed
into law June 5, 2000, which lowered and froze electric
customer rates.
|                |  |                                                                                                                                                                                                                                                                                                                                    
|Securitization  |  | Detroit Edison financed specific stranded costs at lower
interest rates through the sale of rate reduction bonds by a
wholly owned special purpose entity, the Detroit Edison
Securitization Funding LLC.                                                                                                                          
|                |  |                                                                                                                                                                                                                                                                                                                                    
|SFAS            |  | Statement of Financial Accounting Standards                                                                                                                                                                                                                                                                                        
|                |  |                                                                                                                                                                                                                                                                                                                                    
|Stranded Costs  |  | Costs incurred by utilities in order to serve customers in a
regulated environment that are not expected to be recoverable
if customers switch to alternative suppliers of electricity and gas.                                                                                                                                    

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Forward-Looking Statements

Certain information presented herein includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve certain risks and uncertainties that may
cause actual future results to differ materially from those contemplated,
projected, estimated or budgeted in such forward-looking statements. There are
many factors that may impact forward-looking statements including, but not
limited to, the following:



| |  | the effects of weather and other natural phenomena on operations and sales to customers;                                               
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------
| |  | economic climate and growth in the geographic areas where we do business;                                                              
| |  | environmental issues, including changes in the climate, and regulations;                                                               
| |  | nuclear regulations and risks associated with nuclear operations;                                                                      
| |  | implementation of electric Customer Choice programs;                                                                                   
| |  | implementation of electric restructuring in Michigan;                                                                                  
| |  | employee relations;                                                                                                                    
| |  | unplanned outages;                                                                                                                     
| |  | capital market conditions and access to capital markets and other financing efforts which can be affected by credit agency ratings;    
| |  | the timing and extent of changes in interest rates;                                                                                    
| |  | the level of borrowings;                                                                                                               
| |  | changes in the cost of fuel and purchased power;                                                                                       
| |  | effects of competition;                                                                                                                
| |  | impact of FERC and MPSC proceedings and regulations;                                                                                   
| |  | changes in federal or state tax laws and their interpretations, including the code, regulations, rulings, court proceedings
and audits;
| |  | ability to recover costs through rate increases;                                                                                       
| |  | property insurance;                                                                                                                    
| |  | the cost of protecting assets against or damage due to terrorism; and                                                                  
| |  | changes in accounting standards and financial reporting regulations.                                                                   

New factors emerge from time to time. We cannot predict what factors may arise
or how such factors may cause our results to differ materially from those
contained in any forward-looking statement. Any forward-looking statement
speaks only as of the date on which such statement is made. We undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events.

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The Detroit Edison Company
Managements Narrative Analysis of Results of Operations

RESULTS OF OPERATIONS

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

We had income of $30 million in the 2003 second quarter compared to income of
$74 million for the 2002 second quarter. For the six-month period, our income
was $45 million compared to income of $167 million for the comparable 2002
period. Lower income was due to reduced revenues, higher operation and
maintenance expenses and increased fuel and purchased power costs. The
comparability of earnings for the six-month period was also impacted by the
adoption of a new accounting rule in the 2003 first quarter. As required by
generally accepted accounting principles, on January 1, 2003, we adopted a new
accounting rule for asset retirement obligations as discussed in Note 2. The
cumulative effect of adopting this new accounting rule was to reduce the 2003
six-month period earnings by $6 million. Results for the six-month period were
also affected by a $14 million net of tax loss on the sale of our steam heating
business in January 2003.

Detroit Edison has the following two reportable segments.

ENERGY RESOURCES

Power Generation

The power generation plants of Detroit Edison comprise our regulated power
generation business. Detroit Edisons numerous fossil plants, hydroelectric
pumped storage plant and its nuclear plant generate electricity that is sold
principally throughout Michigan and the Midwest to residential, commercial,
industrial and wholesale customers.

Power Generation earnings declined $10 million during the 2003 second quarter
and $50 million in the 2003 six-month period reflecting lower gross margins
driven by decreased cooling demand due to mild weather and lost margins from
customers participating in the electric Customer Choice program. As a result
of the electric Customer Choice program, Detroit Edison lost 12% of retail
sales in 2003. To partially offset the impact of these lost margins, Detroit
Edison recorded a $6 million increase in regulatory assets in both the 2003
first and second quarters representing stranded costs that are recoverable
under Michigan legislation. The lower earnings were also attributed to higher
fuel unit costs, higher employee pension and health care benefit costs and
expenses due to the timing of planned reliability and maintenance work done to
improve the production and availability of the generation fleet. Operation and
maintenance expense in the 2003 second quarter was favorably affected by
adjustments recorded that reduced accruals for employee incentive awards due to
expected lower 2003 operating performance. Depreciation and amortization
expenses reflect the income effect of recording regulatory assets representing
net stranded costs and the deferral of other costs recoverable under Public Act
141.

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|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |   |  |   |       |  
|--------------------------------------------------- |  | ------------------ | --- | - | ---------------- | - | --- | ---- |  | - | ----- | - |  | - | ----- | -
|                                                    |  | Three Months Ended |     |   | Six Months Ended |  
|                                                    |  | June 30            |     |   | June 30          |  
|                                                    |  |                    |     |   |                  |  
|                                                    |  | 2003               |     |   | 2002             |   |     | 2003 |  |   | 2002  |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |  
|(in Millions)                                       |  |                    |     |   |                  |   |     |      |  |   |       |   |  |   |       |  
|Operating Revenues                                  |  | $                  | 589 |   |                  | $ | 660 |      |  | $ | 1,206 |   |  | $ | 1,277 |  
|Fuel and Purchased Power                            |  |                    | 224 |   |                  |   | 243 |      |  |   | 465   |   |  |   | 443   |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |  
|Gross Margin                                        |  |                    | 365 |   |                  |   | 417 |      |  |   | 741   |   |  |   | 834   |  
|Operation and Maintenance                           |  |                    | 158 |   |                  |   | 175 |      |  |   | 341   |   |  |   | 312   |  
|Depreciation and Amortization                       |  |                    | 61  |   |                  |   | 76  |      |  |   | 134   |   |  |   | 161   |  
|Taxes other than Income                             |  |                    | 38  |   |                  |   | 36  |      |  |   | 81    |   |  |   | 77    |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |  
|Operating Income                                    |  |                    | 108 |   |                  |   | 130 |      |  |   | 185   |   |  |   | 284   |  
|Other (Income) and Deductions                       |  |                    | 37  |   |                  |   | 44  |      |  |   | 77    |   |  |   | 101   |  
|Income Tax Provision                                |  |                    | 25  |   |                  |   | 30  |      |  |   | 37    |   |  |   | 62    |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |  
|Net Income                                          |  | $                  | 46  |   |                  | $ | 56  |      |  | $ | 71    |   |  | $ | 121   |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |       |  
|Operating Income as a Percent of Operating Revenues |  |                    | 18  | % |                  |   | 20  | %    |  |   | 15    | % |  |   | 22    | %



---

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



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|                              |         |   |                    |       |  |                  |        |       |      |   |        |        |  |   |        |        | 
|----------------------------- | ------- | - | ------------------ | ----- |  | ---------------- | ------ | ----- | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                              |         |   | Three Months Ended |       |  | Six Months Ended |       
|                              |         |   | June 30            |       |  | June 30          |       
|                              |         |   |                    |       |  |                  |       
|                              |         |   | 2003               |       |  | 2002             |        |       | 2003 |   |        | 2002   | 
|                              |         |   |                    |       |  |                  |        |       |      |   |        |        | 
|(in Thousands of MWh)         |         |   |                    |       |  |                  |        |       |      |   |        |        |  |   |        |       
|Power generated and purchased |         |   |                    |       |  |                  |        |       |      |   |        |        |  |   |        |       
|Power plant generation        |         |   |                    |       |  |                  |        |       |      |   |        |        |  |   |        |       
|                              | Fossil  |   |                    | 9,207 |  |                  |        | 9,519 |      |   |        | 18,341 |  |   |        | 18,630 | 
|                              | Nuclear |   |                    | 1,301 |  |                  |        | 2,334 |      |   |        | 3,549  |  |   |        | 4,624  | 
|Purchased power               |         |   | 1,843              |       |  |                  | 2,178  |       |      |   | 3,731  |        |  |   | 3,818  |       
|                              |         |   |                    |       |  |                  |        |       |      |   |        |       
|System output                 |         |   | 12,351             |       |  |                  | 14,031 |       |      |   | 25,621 |        |  |   | 27,072 |       
|                              |         |   |                    |       |  |                  |        |       |      |   |        |       
|Average unit cost ($/MWh)     |         |   |                    |       |  |                  |        |       |      |   |        |        |  |   |        |       
|Generation (1)                |         | $ | 13.56              |       |  | $                | 12.64  |       |      | $ | 13.42  |        |  | $ | 12.41  |       
|                              |         |   |                    |       |  |                  |        |       |      |   |        |       
|Purchased power (2)           |         | $ | 35.26              |       |  | $                | 37.77  |       |      | $ | 34.48  |        |  | $ | 34.48  |       
|                              |         |   |                    |       |  |                  |        |       |      |   |        |       
|Overall Average Unit Cost     |         | $ | 16.80              |       |  | $                | 16.17  |       |      | $ | 17.00  |        |  | $ | 15.29  |       
|                              |         |   |                    |       |  |                  |        |       |      |   |        |       

---

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

Outlook We expect electric restructuring to continue resulting in increased
customer choice in the retail electric generation business. As a result of
customers choosing to participate in the electric Customer Choice program,
Detroit Edison lost 6% of retail sales in 2002 and estimates losing up to 13%
of such sales in 2003. Unrecovered generation-related fixed costs due to
electric Customer Choice are recoverable under Michigan legislation as
determined by the MPSC. As a result, Detroit Edison recorded an increased
regulatory asset relating to stranded costs during the first half of 2003.
There are a number of variables and estimates that impact the level of recoverable stranded costs, including weather, sales mix and wholesale prices. As a result,
our estimate of stranded costs could increase or decrease in future periods.
The regulatory asset will be subject to review by the MPSC in future regulatory
proceedings, and we cannot predict the outcome of this matter. See Note 4 
Regulatory Matters.

The June 2000 Michigan legislation imposed a rate freeze for all classes of
customers through 2003. In addition, the MPSC determined that adjusting rates
for changes in fuel and purchased power through continuance of the Power Supply
Cost Recovery (PSCR) clause would be inconsistent with the rate

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freeze, therefore the MPSC suspended the PSCR clause. It is unclear at this
time whether the PSCR clause will remain suspended beyond 2003. Detroit Edison
filed a rate case in June 2003 addressing this and other issues. We cannot
predict the outcome of this matter. See Note 4  Regulatory Matters.

Future operating results are expected to vary as a result of factors such as
regulatory proceedings, weather, changes in economic conditions and the level
of customer participation in the electric Customer Choice program.

ENERGY DISTRIBUTION

Power Distribution

Power Distribution is comprised of the electric distribution services of
Detroit Edison. Power Distribution distributes electricity generated by Energy
Resources and alternative electric suppliers to Detroit Edisons 2.1 million
customers.

Power Distribution earnings decreased $34 million during the 2003 second
quarter and $66 million in the 2003 six-month period. Results were affected by
a catastrophic ice storm that resulted in over 400,000 customers losing power.
Restoration costs associated with the ice storm reduced after tax earnings by
approximately $25 million, net of insurance. Both periods were also impacted by higher operation
and maintenance expenses and reduced electric deliveries and operating revenues
due to milder weather. The increased operation and maintenance expenses are
attributable to higher employee pension and healthcare benefit costs and
increased costs associated with customer service process improvements. Results
for the 2003 six-month period also reflect a net of tax loss of $14 million on
the sale of our unprofitable steam heating business (Note 3).



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|                                                    |  |                    |     |   |                  |   |     |      |  |   |      |   |  |   |     |  
|--------------------------------------------------- |  | ------------------ | --- | - | ---------------- | - | --- | ---- |  | - | ---- | - |  | - | --- | -
|                                                    |  | Three Months Ended |     |   | Six Months Ended |  
|                                                    |  | June 30            |     |   | June 30          |  
|                                                    |  |                    |     |   |                  |  
|                                                    |  | 2003               |     |   | 2002             |   |     | 2003 |  |   | 2002 |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |      |  
|(in Millions)                                       |  |                    |     |   |                  |   |     |      |  |   |      |   |  |   |     |  
|Operating Revenues                                  |  | $                  | 281 |   |                  | $ | 302 |      |  | $ | 601  |   |  | $ | 615 |  
|Fuel and Purchased Power                            |  |                    | 2   |   |                  |   | 3   |      |  |   | 9    |   |  |   | 12  |  
|Operation and Maintenance                           |  |                    | 186 |   |                  |   | 146 |      |  |   | 368  |   |  |   | 285 |  
|Depreciation and Amortization                       |  |                    | 62  |   |                  |   | 62  |      |  |   | 125  |   |  |   | 124 |  
|Taxes other than Income                             |  |                    | 27  |   |                  |   | 29  |      |  |   | 56   |   |  |   | 60  |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |      |  
|Operating Income                                    |  |                    | 4   |   |                  |   | 62  |      |  |   | 43   |   |  |   | 134 |  
|Other (Income) and Deductions                       |  |                    | 29  |   |                  |   | 35  |      |  |   | 73   |   |  |   | 66  |  
|Income Tax Benefit (Provision)                      |  |                    | 9   |   |                  |   | (9  | )    |  |   | 10   |   |  |   | (22 | )
|                                                    |  |                    |     |   |                  |   |     |      |  |   |      |  
|Net Income (Loss)                                   |  | $                  | (16 | ) |                  | $ | 18  |      |  | $ | (20  | ) |  | $ | 46  |  
|                                                    |  |                    |     |   |                  |   |     |      |  |   |      |  
|Operating Income as a Percent of Operating Revenues |  |                    | 1   | % |                  |   | 21  | %    |  |   | 7    | % |  |   | 22  | %

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|                                    |  |                    |        |  |                  |  |        |      |  |  |        |  |  |  |        | 
|----------------------------------- |  | ------------------ | ------ |  | ---------------- |  | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|                                    |  | Three Months Ended |        |  | Six Months Ended | 
|                                    |  | June 30            |        |  | June 30          | 
|                                    |  |                    |        |  |                  | 
|                                    |  | 2003               |        |  | 2002             |  |        | 2003 |  |  | 2002   | 
|Electric Deliveries                 |  |                    |        |  |                  |  |        |      |  |  |        | 
|(in Thousands of MWh)               |  |                    |        |  |                  |  |        |      |  |  |        | 
|Residential                         |  |                    | 3,243  |  |                  |  | 3,527  |      |  |  | 7,098  |  |  |  | 7,247  | 
|Commercial                          |  |                    | 3,962  |  |                  |  | 4,718  |      |  |  | 8,088  |  |  |  | 9,060  | 
|Industrial                          |  |                    | 3,134  |  |                  |  | 3,537  |      |  |  | 6,219  |  |  |  | 6,869  | 
|Wholesale                           |  |                    | 550    |  |                  |  | 550    |      |  |  | 1,126  |  |  |  | 1,092  | 
|Other                               |  |                    | 89     |  |                  |  | 85     |      |  |  | 196    |  |  |  | 197    | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 
|                                    |  |                    | 10,978 |  |                  |  | 12,417 |      |  |  | 22,727 |  |  |  | 24,465 | 
|Electric Choice                     |  |                    | 1,844  |  |                  |  | 761    |      |  |  | 3,051  |  |  |  | 1,642  | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 
|Total Electric Sales and Deliveries |  |                    | 12,822 |  |                  |  | 13,178 |      |  |  | 25,778 |  |  |  | 26,107 | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 

---

Outlook Regulated electric system deliveries are expected to increase in the
remainder of 2003 due to continued territory and economic growth. Operating
results are expected to vary as a result of external factors such as weather,
changes in economic conditions and the severity and frequency of storms. As
previously mentioned, Detroit Edison filed a rate case in June 2003 to address
future operating costs and other issues.

In July 2003, a catastrophic windstorm in our service territory resulted in
over 190,000 customers losing power. We incurred restoration costs totaling
approximately $20 million, and a substantial portion of such costs are covered by storm insurance.

CAPITAL RESOURCES AND LIQUIDITY



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|                                          |                       |                                                              |     |                  |      |   |      |      |      |  
|----------------------------------------- | --------------------- | ------------------------------------------------------------ | --- | ---------------- | ---- | - | ---- | ---- | ---- | -
|                                          |                       |                                                              |     | Six Months Ended |     
|                                          |                       |                                                              |     | June 30          |     
|                                          |                       |                                                              |     |                  |     
|                                          |                       | 2003                                                         |     |                  | 2002 |  
|(in Millions)                             |                       |                                                              |     |                  |      |  
|Cash and Cash Equivalents                 |                       |                                                              |     |                  |      |   |      |     
|Cash Flow From (Used For)                 |                       |                                                              |     |                  |      |   |      |     
|                                          | Operating activities: |                                                              |     |                  |      |   |      |      |     
|                                          |                       | Net income, depreciation and amortization and deferred taxes |     | $                | 420  |   |      | $    | 445  |  
|                                          |                       | Pension contribution                                         |     |                  | (222 | ) |      |      |     |  
|                                          |                       | Working capital and other                                    |     |                  | (159 | ) |      |      | (236 | )
|                                          |                       |                                                              |     |                  |      |  
|                                          |                       |                                                              | 39  |                  |      |   | 209  |     
|                                          | Investing activities  |                                                              |     | (262             | )    |   |      | (363 | )   
|                                          | Financing activities  |                                                              |     | 198              |      |   |      | (41  | )   
|                                          |                       |                                                              |     |                  |      |  
|Net Decrease in Cash and Cash Equivalents |                       | $                                                            | (25 | )                |      | $ | (195 | )   
|                                          |                       |                                                              |     |                  |      |  

---

Operating Activities

Net cash from operating activities decreased $170 million during the 2003
six-month period as compared to the same 2002 period. The decrease reflects a
decline of $25 million in net income, after adjusting for non-cash items
(depreciation and amortization and deferred taxes) and a $145 million increase
in working capital and other requirements. The increase in working capital
requirements is primarily due to a decrease in accounts payable balances in
2003. We also contributed $222 million of cash to our pension plan in 2003.

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##### Table of Contents



Investing Activities

Net cash relating to investing activities improved $101 million in the 2003
six-month period as compared to the same 2002 period. The improvement is
attributed to decreases in cash contractually designated for debt service and
other investments, partially offset by an increase in plant and equipment
expenditures.

Financing Activities

Net cash from financing activities increased $239 million during the 2003
six-month period as compared to the same 2002 period. The increase is
primarily attributed to higher notes payable to affiliates and a cash infusion
from its parent company, partially offset by an increase in redemptions of
long-term debt.

ELECTRIC CUSTOMER CHOICE PROGRAM

The electric Customer Choice program as originally structured in Michigan
anticipated an eventual  transition to a totally competitive environment where
customers would be charged market-based rates for their electricity. Various
developments in the energy industry have caused the deregulation of electric
generation to proceed at a much slower rate. As a result, Detroit Edisons
rates continue to be regulated by the MPSC. This continued regulation has
hindered Detroit Edisons ability to retain customers that are choosing
alternative suppliers under the electric Customer Choice program. Detroit
Edisons results have been unfavorably impacted by the lack of full recovery of
lost margins and other costs associated with the electric Customer Choice
program. Although the MPSC has encouraged a collaborative process to address
issues relating to customer choice, they continue to delay finalizing a mechanism
to provide for the recovery of stranded costs. Detroit Edison has been an
active participant in this collaborative process. However, efforts to date
have not been effective in resolving the issue of the recovery of stranded
costs. Detroit Edison has addressed this issue in its June 2003 rate filing and
is also considering a legislative solution to this problem later this year. The
continued delay in the timely and full recovery of stranded costs unfavorably
impacts operating results.

ENVIRONMENTAL MATTERS

EPA ozone transport regulations and final new air quality standards relating to ozone and
particulate air pollution will continue to impact us. Detroit Edison spent approximately $500 million through June 2003 and estimates that it will incur approximately $300 to $400 million
of future capital expenditures over the next five to eight years to comply with the existing air quality standards. Recovery
of these costs is included in our June 2003 electric rate case. In addition, we maintain the option to securitize these costs after the completion
of this rate case.

The Environmental Protection Agency (EPA) initiated enforcement actions against several major electric utilities citing violations
of new source provisions of the Clean Air Act. Detroit Edison received and responded to information requests from the EPA on this subject.
The EPA has not initiated proceedings against Detroit Edison. The United States District Court for the Southern District of Ohio Eastern
Division issued a decision on August 7, 2003 finding Ohio Edison in violation of the new source provisions of the Clean Air Act. If the Courts
decision is upheld, the electric utility industry could be required to invest substantial amounts in pollution control equipment. We cannot predict the future impact
of this issue upon Detroit Edison.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 2  New Accounting Pronouncements for discussion of new accounting
pronouncements.

9



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##### Table of Contents






CONTROLS AND PROCEDURES



|(a) |  | Evaluation of disclosure controls and procedures                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | The Companys Chief Executive Officer and Chief Financial Officer have
evaluated the effectiveness of the Companys disclosure controls and
procedures (as defined in the Exchange Act Rules 13a 
15(e) and 15d 
15(e)) as of the end of the period covered by this report, and have
concluded that, such controls and procedures were effective at ensuring
that required information will be disclosed on a timely basis in reports
filed under the Exchange Act.
|   
|(b) |  | Changes in internal controls                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|    |  | There have been no significant changes (including corrective actions with
regard to significant deficiencies or material weaknesses) in the Companys
internal controls or in other factors that could significantly affect these
controls.                                                                                                                                                                                                                          

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The Detroit Edison Company
Consolidated Statement of Operations (Unaudited)

---

|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |     |   |   |       |     |  
|-------------------------------------- | ----------------------------- | ---- | ------------------ | --- | ---- | ---------------- | --- | ---- | - | - | ----- | --- | - | - | ----- | --- | -
|                                       |                               |      | Three Months Ended |     |      | Six Months Ended |    
|                                       |                               |      | June 30            |     |      | June 30          |    
|                                       |                               |      |                    |     |      |                  |    
|                                       |                               | 2003 |                    |     | 2002 |                  |     | 2003 |   |   | 2002  |    
|(in Millions)                          |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Operating Revenues                     |                               | $    | 870                |     |      | $                | 962 |      |   | $ | 1,807 |     |   | $ | 1,892 |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Operating Expenses                     |                               |      |                    |     |      |                  |     |      |   |   |       |     |   |   |       |    
|                                       | Fuel and purchased power      |      |                    | 226 |      |                  |     | 246  |   |   |       | 474 |   |   |       | 455 |  
|                                       | Operation and maintenance     |      |                    | 343 |      |                  |     | 321  |   |   |       | 709 |   |   |       | 597 |  
|                                       | Depreciation and amortization |      |                    | 124 |      |                  |     | 138  |   |   |       | 259 |   |   |       | 285 |  
|                                       | Taxes other than income       |      |                    | 65  |      |                  |     | 65   |   |   |       | 137 |   |   |       | 137 |  
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|                                       |                               |      | 758                |     |      |                  | 770 |      |   |   | 1,579 |     |   |   | 1,474 |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Operating Income                       |                               |      | 112                |     |      |                  | 192 |      |   |   | 228   |     |   |   | 418   |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Other (Income) and Deductions          |                               |      |                    |     |      |                  |     |      |   |   |       |     |   |   |       |    
|                                       | Interest expense              |      |                    | 71  |      |                  |     | 78   |   |   |       | 146 |   |   |       | 156 |  
|                                       | Interest income               |      |                    |    |      |                  |     |     |   |   |       |    |   |   |       | (1  | )
|                                       | Other income                  |      |                    | (22 | )    |                  |     | (6   | ) |   |       | (33 | ) |   |       | (12 | )
|                                       | Other expenses                |      |                    | 17  |      |                  |     | 7    |   |   |       | 37  |   |   |       | 24  |  
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|                                       |                               |      | 66                 |     |      |                  | 79  |      |   |   | 150   |     |   |   | 167   |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Income Before Income Taxes             |                               |      | 46                 |     |      |                  | 113 |      |   |   | 78    |     |   |   | 251   |    
|Income Tax Provision                   |                               |      | 16                 |     |      |                  | 39  |      |   |   | 27    |     |   |   | 84    |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Income Before Accounting Change        |                               |      | 30                 |     |      |                  | 74  |      |   |   | 51    |     |   |   | 167   |    
|Cumulative Effect of Accounting Change |                               |      |                   |     |      |                  |    |      |   |   | (6    | )   |   |   |      |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    
|Net Income                             |                               | $    | 30                 |     |      | $                | 74  |      |   | $ | 45    |     |   | $ | 167   |    
|                                       |                               |      |                    |     |      |                  |     |      |   |   |       |    

---

See Notes to Consolidated Financial Statements (Unaudited)

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##### Table of Contents






The Detroit Edison Company
Consolidated Statement of Financial Position

---

|               |                                           |                                                                              |        |             |     |   |             |        |     | 
|-------------- | ----------------------------------------- | ---------------------------------------------------------------------------- | ------ | ----------- | --- | - | ----------- | ------ | --- | 
|               |                                           |                                                                              |        | June 30     |     |   |             |        |    
|               |                                           |                                                                              |        | 2003        |     |   | December 31 |       
|               |                                           |                                                                              |        | (Unaudited) |     |   | 2002        |       
|               |                                           |                                                                              |        |             |     |   |             |       
|(in Millions)  |                                           |                                                                              |        |             |     |   |             |       
|Assets         |                                           |                                                                              |        |             |     |   |             |       
|Current Assets |                                           |                                                                              |        |             |     |   |             |       
|               | Cash and cash equivalents                 |                                                                              | $      | 11          |     |   | $           | 36     |    
|               | Restricted cash                           |                                                                              |        | 86          |     |   |             | 131    |    
|               | Accounts receivable                       |                                                                              |        |             |     |   |             |        |    
|               |                                           | Customer (less allowance for doubtful accounts of $54 and
$48, respectively) |        |             | 316 |   |             |        | 325 | 
|               |                                           | Accrued unbilled revenues                                                    |        |             | 170 |   |             |        | 177 | 
|               |                                           | Other                                                                        |        |             | 119 |   |             |        | 142 | 
|               | Inventories                               |                                                                              |        |             |     |   |             |        |    
|               |                                           | Fuel                                                                         |        |             | 113 |   |             |        | 126 | 
|               |                                           | Materials and supplies                                                       |        |             | 126 |   |             |        | 130 | 
|               | Property taxes assessed to future periods |                                                                              |        | 23          |     |   |             |       |    
|               | Other                                     |                                                                              |        | 123         |     |   |             | 14     |    
|               |                                           |                                                                              |        |             |     |  
|               |                                           |                                                                              | 1,087  |             |     |   | 1,081       |       
|               |                                           |                                                                              |        |             |     |  
|Investments    |                                           |                                                                              |        |             |     |   |             |       
|               | Nuclear decommissioning trust funds       |                                                                              |        | 466         |     |   |             | 417    |    
|               | Other                                     |                                                                              |        | 25          |     |   |             | 82     |    
|               |                                           |                                                                              |        |             |     |  
|               |                                           |                                                                              | 491    |             |     |   | 499         |       
|               |                                           |                                                                              |        |             |     |  
|Property       |                                           |                                                                              |        |             |     |   |             |       
|               | Property, plant and equipment             |                                                                              |        | 12,516      |     |   |             | 12,121 |    
|               | Less accumulated depreciation             |                                                                              |        | (5,450      | )   |   |             | (5,324 | )  
|               |                                           |                                                                              |        |             |     |  
|               |                                           |                                                                              | 7,066  |             |     |   | 6,797       |       
|               |                                           |                                                                              |        |             |     |  
|Other Assets   |                                           |                                                                              |        |             |     |   |             |       
|               | Regulatory assets (Notes 2 and 4)         |                                                                              |        | 2,003       |     |   |             | 1,143  |    
|               | Securitized regulatory assets             |                                                                              |        | 1,571       |     |   |             | 1,613  |    
|               | Other                                     |                                                                              |        | 136         |     |   |             | 128    |    
|               |                                           |                                                                              |        |             |     |  
|               |                                           |                                                                              | 3,710  |             |     |   | 2,884       |       
|               |                                           |                                                                              |        |             |     |  
|Total Assets   |                                           | $                                                                            | 12,354 |             |     | $ | 11,261      |       
|               |                                           |                                                                              |        |             |     |  

---

See Notes to Consolidated Financial Statements (Unaudited)

12



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##### Table of Contents



The Detroit Edison Company
Consolidated Statement of Financial Position

---

|                                           |                                                                                                           |   |        |             |   |   |             |       |   | 
|------------------------------------------ | --------------------------------------------------------------------------------------------------------- | - | ------ | ----------- | - | - | ----------- | ----- | - | 
|                                           |                                                                                                           |   |        | June 30     |   |   |             |       |  
|                                           |                                                                                                           |   |        | 2003        |   |   | December 31 |      
|                                           |                                                                                                           |   |        | (Unaudited) |   |   | 2002        |      
|                                           |                                                                                                           |   |        |             |   |   |             |      
|(in Millions, Except Shares)               |                                                                                                           |   |        |             |   |   |             |      
|Liabilities and Shareholders Equity       |                                                                                                           |   |        |             |   |   |             |      
|Current Liabilities                        |                                                                                                           |   |        |             |   |   |             |      
|                                           | Accounts payable                                                                                          |   | $      | 162         |   |   | $           | 238   |  
|                                           | Accrued interest                                                                                          |   |        | 78          |   |   |             | 83    |  
|                                           | Dividends payable                                                                                         |   |        | 74          |   |   |             | 74    |  
|                                           | Accrued payroll                                                                                           |   |        | 25          |   |   |             | 24    |  
|                                           | Short-term borrowings                                                                                     |   |        | 200         |   |   |             |      |  
|                                           | Notes payable to affiliates                                                                               |   |        | 392         |   |   |             |      |  
|                                           | Income taxes                                                                                              |   |        | 53          |   |   |             | 30    |  
|                                           | Current portion long-term debt, including capital leases                                                  |   |        | 114         |   |   |             | 319   |  
|                                           | Other                                                                                                     |   |        | 233         |   |   |             | 328   |  
|                                           |                                                                                                           |   |        |             |   |  
|                                           |                                                                                                           |   | 1,331  |             |   |   | 1,096       |      
|                                           |                                                                                                           |   |        |             |   |  
|Other Liabilities                          |                                                                                                           |   |        |             |   |   |             |      
|                                           | Deferred income taxes                                                                                     |   |        | 1,801       |   |   |             | 1,501 |  
|                                           | Asset retirement obligations (Note 2)                                                                     |   |        | 796         |   |   |             |      |  
|                                           | Unamortized investment tax credit                                                                         |   |        | 140         |   |   |             | 146   |  
|                                           | Nuclear decommissioning                                                                                   |   |        | 59          |   |   |             | 416   |  
|                                           | Accrued pension liability                                                                                 |   |        | 365         |   |   |             | 561   |  
|                                           | Other                                                                                                     |   |        | 528         |   |   |             | 484   |  
|                                           |                                                                                                           |   |        |             |   |  
|                                           |                                                                                                           |   | 3,689  |             |   |   | 3,108       |      
|                                           |                                                                                                           |   |        |             |   |  
|Long-Term Debt                             |                                                                                                           |   |        |             |   |   |             |      
|                                           | Mortgage bonds, notes and other                                                                           |   |        | 3,110       |   |   |             | 3,270 |  
|                                           | Securitization bonds                                                                                      |   |        | 1,539       |   |   |             | 1,585 |  
|                                           | Capital lease obligations                                                                                 |   |        | 77          |   |   |             | 80    |  
|                                           |                                                                                                           |   |        |             |   |  
|                                           |                                                                                                           |   | 4,726  |             |   |   | 4,935       |      
|                                           |                                                                                                           |   |        |             |   |  
|Contingencies (Notes 4 and 5)              |                                                                                                           |   |        |             |   |   |             |      
|                                          
|Shareholders Equity                       |                                                                                                           |   |        |             |   |   |             |      
|                                           | Common stock, $10 par value, 400,000,000 shares
authorized, and 134,287,832 shares
issued and outstanding |   |        | 1,343       |   |   |             | 1,343 |  
|                                           | Premium on common stock                                                                                   |   |        | 677         |   |   |             | 507   |  
|                                           | Common stock expense                                                                                      |   |        | (44         | ) |   |             | (44   | )
|                                           | Retained earnings                                                                                         |   |        | 632         |   |   |             | 735   |  
|                                           | Accumulated other comprehensive loss                                                                      |   |        |            |   |   |             | (419  | )
|                                           |                                                                                                           |   |        |             |   |  
|                                           |                                                                                                           |   | 2,608  |             |   |   | 2,122       |      
|                                           |                                                                                                           |   |        |             |   |  
|Total Liabilities and Shareholders Equity |                                                                                                           | $ | 12,354 |             |   | $ | 11,261      |      
|                                           |                                                                                                           |   |        |             |   |  

---

See Notes to Consolidated Financial Statements (Unaudited)

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##### Table of Contents






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

---

|                                                     |                                                                            |                                                                                   |     |                  |      |      |      |      |      |  
|---------------------------------------------------- | -------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | --- | ---------------- | ---- | ---- | ---- | ---- | ---- | -
|                                                     |                                                                            |                                                                                   |     | Six Months Ended |     
|                                                     |                                                                            |                                                                                   |     | June 30          |     
|                                                     |                                                                            |                                                                                   |     |                  |     
|                                                     |                                                                            |                                                                                   |     | 2003             |      |      | 2002 |     
|                                                     |                                                                            |                                                                                   |     |                  |      |      |      |     
|(in Millions)                                        |                                                                            |                                                                                   |     |                  |      |      |     
|Operating Activities                                 |                                                                            |                                                                                   |     |                  |      |      |     
|                                                     | Net Income                                                                 |                                                                                   | $   | 45               |      |      | $    | 167  |     
|                                                     | Adjustments to reconcile net income to net cash from
operating activities: |                                                                                   |     |                  |      |      |      |      |     
|                                                     |                                                                            | Depreciation and amortization                                                     |     |                  | 259  |      |      |      | 285  |  
|                                                     |                                                                            | Deferred income taxes                                                             |     |                  | 116  |      |      |      | (7   | )
|                                                     |                                                                            | Loss on sale of assets                                                            |     |                  | 3    |      |      |      |     |  
|                                                     |                                                                            | Cumulative effect of accounting change                                            |     |                  | 6    |      |      |      |     |  
|                                                     |                                                                            | Changes in assets and liabilities, exclusive of changes
shown separately (Note 1) |     |                  | (390 | )    |      |      | (236 | )
|                                                     |                                                                            |                                                                                   |     |                  |     
|                                                     | Net cash from operating activities                                         |                                                                                   |     | 39               |      |      |      | 209  |     
|                                                     |                                                                            |                                                                                   |     |                  |     
|Investing Activities                                 |                                                                            |                                                                                   |     |                  |      |      |     
|                                                     | Plant and equipment expenditures                                           |                                                                                   |     | (320             | )    |      |      | (313 | )   
|                                                     | Proceeds from sales of assets                                              |                                                                                   |     | 2                |      |      |      |     |     
|                                                     | Restricted cash for debt redemptions                                       |                                                                                   |     | 45               |      |      |      | (6   | )   
|                                                     | Other investments                                                          |                                                                                   |     | 11               |      |      |      | (44  | )   
|                                                     |                                                                            |                                                                                   |     |                  |     
|                                                     |                                                                            | Net cash used for investing activities                                            |     |                  | (262 | )    |      |      | (363 | )
|                                                     |                                                                            |                                                                                   |     |                  |     
|Financing Activities                                 |                                                                            |                                                                                   |     |                  |      |      |     
|                                                     | Redemption of long-term debt                                               |                                                                                   |     | (411             | )    |      |      | (87  | )   
|                                                     | Short-term borrowings, net                                                 |                                                                                   |     | 200              |      |      |      | 200  |     
|                                                     | Notes payable to affiliates                                                |                                                                                   |     | 392              |      |      |      |     |     
|                                                     | Capital contribution by parent company                                     |                                                                                   | 170 |                  |      |      |     |     
|                                                     | Dividends on common stock                                                  |                                                                                   |     | (148             | )    |      |      | (148 | )   
|                                                     | Other                                                                      |                                                                                   | (5  | )                |      |      | (6   | )   
|                                                     |                                                                            |                                                                                   |     |                  |     
|                                                     |                                                                            | Net cash from (used for) financing activities                                     |     |                  | 198  |      |      |      | (41  | )
|                                                     |                                                                            |                                                                                   |     |                  |     
|Net Decrease in Cash and Cash Equivalents            |                                                                            | (25                                                                               | )   |                  |      | (195 | )   
|Cash and Cash Equivalents at Beginning of the Period |                                                                            | 36                                                                                |     |                  |      | 215  |     
|                                                     |                                                                            |                                                                                   |     |                  |     
|Cash and Cash Equivalents at End of the Period       | $                                                                          | 11                                                                                |     |                  | $    | 20   |     
|                                                     |                                                                            |                                                                                   |     |                  |     

---

See Notes to Consolidated Financial Statements (Unaudited)

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##### Table of Contents






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



---

|                                                           |  |              |         |  |        |   |       |        |  |         |          |  |  |               |       |   |      |   |      |       |             |   |      |   |  |   |       |  
|---------------------------------------------------------- |  | ------------ | ------- |  | ------ | - | ----- | ------ |  | ------- | -------- |  |  | ------------- | ----- | - | ---- | - | ---- | ----- | ----------- | - | ---- | - |  | - | ----- | -
|                                                           |  |              |         |  |        |   |       |        |  | Premium |          |  |  |               |       |   |      |   |      |       | Accumulated |   |      |   |  |  
|(Dollars in Millions,                                      |  | Common Stock |         |  | on     |   |       | Common |  |         |          |  |  |               | Other |   |      |   |      |      
|Shares in Thousands)                                       |  |              |         |  | Common |   |       | Stock  |  |         | Retained |  |  | Comprehensive |       |   |      |   |     
|                                                           |  | Shares       |         |  | Amount |   |       | Stock  |  |         | Expense  |  |  | Earnings      |       |   | Loss |   |      | Total |            
|                                                           |  |              |         |  |        |   |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|Balance, December 31, 2002                                 |  |              | 134,288 |  |        | $ | 1,343 |        |  | $       | 507      |  |  | $             | (44   | ) |      | $ | 735  |       |             | $ | (419 | ) |  | $ | 2,122 |  
|                                                           |  |              |         |  |        |   |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|Net income                                                 |  |              |        |  |        |   |      |        |  |         |         |  |  |               |      |   |      |   | 45   |       |             |   |     |   |  |   | 45    |  
|Dividends declared on
common stock                         |  |              |        |  |        |   |      |        |  |         |         |  |  |               |      |   |      |   | (148 | )     |             |   |     |   |  |   | (148  | )
|Net change in unrealized losses
on derivatives, net of tax |  |              |        |  |        |   |      |        |  |         |         |  |  |               |      |   |      |   |     |       |             |   | 2    |   |  |   | 2     |  
|Pension obligation (Note 4)                                |  |              |        |  |        |   |      |        |  |         |         |  |  |               |      |   |      |   |     |       |             |   | 417  |   |  |   | 417   |  
|Capital contribution by parent
company                     |  |              |        |  |        |   |      |        |  |         | 170      |  |  |               |      |   |      |   |     |       |             |   |     |   |  |   | 170   |  
|                                                           |  |              |         |  |        |   |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|Balance, June 30, 2003                                     |  |              | 134,288 |  |        | $ | 1,343 |        |  | $       | 677      |  |  | $             | (44   | ) |      | $ | 632  |       |             | $ |     |   |  | $ | 2,608 |  
|                                                           |  |              |         |  |        |   |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            

---

The following table displays comprehensive income for the six-month periods in
2003 and 2002:



---

|                                        |  |                                                                                     |     |  |      |   |     |   |    |  
|--------------------------------------- |  | ----------------------------------------------------------------------------------- | --- |  | ---- | - | --- | - | -- | -
|(in Millions)                           |  | 2003                                                                                |     |  | 2002 |  
|                                        |  |                                                                                     |     |  |      |  
|Net income                              |  | $                                                                                   | 45  |  |      | $ | 167 |  
|Other comprehensive income, net of tax: |  |                                                                                     |     |  |      |   |     |  
|Net unrealized income on derivatives:   |  |                                                                                     |     |  |      |   |     |  
|                                        |  | Gains (losses) arising during the period, net of taxes of $3 and $(3), respectively |     |  | 8    |   |     |   | (6 | )
|                                        |  | Amounts reclassified to earnings, net of taxes of $(3) and $3, respectively         |     |  | (6   | ) |     |   | 5  |  
|                                        |  |                                                                                     |     |  |      |  
|                                        |  |                                                                                     | 2   |  |      |   | (1  | )
|                                        |  | Pension obligation, net of taxes of $224 (Note 4)                                   |     |  | 417  |   |     |   |   |  
|                                        |  |                                                                                     |     |  |      |  
|Comprehensive income                    |  | $                                                                                   | 464 |  |      | $ | 166 |  
|                                        |  |                                                                                     |     |  |      |  

---

See Notes to Consolidated Financial Statements

15



---



##### Table of Contents






THE DETROIT EDISON COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1  GENERAL

These consolidated financial statements should be read in conjunction with the
notes to consolidated financial statements included in the 2002 Annual Report
to the Securities and Exchange Commission on Form 10-K.

The accompanying consolidated financial statements are prepared using
accounting principles generally accepted in the United States of America. These
accounting principles require us to use estimates and assumptions that impact
the reported amounts of assets, liabilities, revenues and expenses, and the
disclosure of contingent assets and liabilities. Actual results may differ
from our estimates.

The consolidated financial statements are unaudited, but in our opinion 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.

We reclassified some prior year balances to match the current years
presentation.

Consolidated Statement of Cash Flows

We consider investments purchased with a maturity of three months or less to be
cash equivalents. Cash contractually designated for debt service is classified
as restricted cash. The components of changes in assets and liabilities
follows.



---

|                                                                         |                                        |   |                  |      |   |      |      |      |  
|------------------------------------------------------------------------ | -------------------------------------- | - | ---------------- | ---- | - | ---- | ---- | ---- | -
|                                                                         |                                        |   | Six Months Ended |     
|                                                                         |                                        |   | June 30          |     
|                                                                         |                                        |   |                  |     
|                                                                         |                                        |   | 2003             |      |   | 2002 |     
|                                                                         |                                        |   |                  |      |   |      |     
|(in Millions)                                                            |                                        |   |                  |      |   |      |      |     
|Changes in Assets and Liabilities, Exclusive of Changes Shown Separately |                                        |   |                  |      |   |      |      |     
|                                                                         | Accounts receivable, net               |   | $                | (27  | ) |      | $    | (25  | )
|                                                                         | Accrued unbilled receivables           |   |                  | 7    |   |      |      | (47  | )
|                                                                         | Inventories                            |   |                  | 11   |   |      |      | 2    |  
|                                                                         | Accrued pensions                       |   |                  | (114 | ) |      |      | (3   | )
|                                                                         | Accounts payable                       |   |                  | (74  | ) |      |      | (54  | )
|                                                                         | Income taxes payable                   |   |                  | (125 | ) |      |      | 32   |  
|                                                                         | General taxes                          |   |                  | (12  | ) |      |      | (19  | )
|                                                                         | Risk management and trading activities |   |                  | (3   | ) |      |      |     |  
|                                                                         | Other                                  |   |                  | (53  | ) |      |      | (122 | )
|                                                                         |                                        |   |                  |      |   |     
|                                                                         |                                        | $ | (390             | )    |   | $    | (236 | )   
|                                                                         |                                        |   |                  |      |   |     

---

Other cash and non-cash investing and financing activities for the six months
ended June 30 were as follows:



---

|                                    |                                                |      |                  |     |      |  |   |     | 
|----------------------------------- | ---------------------------------------------- | ---- | ---------------- | --- | ---- |  | - | --- | 
|                                    |                                                |      | Six Months Ended |    
|                                    |                                                |      | June 30          |    
|                                    |                                                |      |                  |    
|                                    |                                                | 2003 |                  |     | 2002 | 
|(in Millions)                       |                                                |      |                  |     |      | 
|Supplementary Cash Flow Information |                                                |      |                  |     |      |  |   |    
|                                    | Interest paid (excluding interest capitalized) |      | $                | 151 |      |  | $ | 150 | 
|                                    | Income taxes paid                              |      |                  | 34  |      |  |   | 55  | 

---

16



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##### Table of Contents



NOTE 2  NEW ACCOUNTING PRONOUNCEMENTS

Asset Retirement Obligations On January 1, 2003, we adopted SFAS No. 143,
Accounting for Asset Retirement Obligations, which requires the fair value of
an asset retirement obligation be recognized in the period in which it is
incurred. It applies to legal obligations associated with the retirement of
long-lived assets resulting from the acquisition, construction, development and
(or) the normal operation of a long-lived asset. When a new liability is
recorded, an entity will capitalize the costs of the liability by increasing
the carrying amount of the related long-lived asset. The liability is accreted
to its present value each period, and the capitalized cost is depreciated over
the useful life of the related asset. Upon settlement of the liability, an
entity settles the obligation for its recorded amount or incurs a gain or loss
upon settlement.

We have identified a legal retirement obligation for the decommissioning costs
for our Fermi 1 and 2 nuclear plants. We believe that adoption of SFAS No. 143
results primarily in timing differences in the recognition of legal asset
retirement costs that we are currently recovering in rates and will be
deferring such differences under SFAS No. 71, Accounting for the Effects of
Certain Types of Regulation.

As a result of adopting SFAS No. 143 on January 1, 2003, we recorded a plant
asset of $278 million with offsetting accumulated depreciation of $103 million,
a retirement obligation liability of $771 million and reversed previously
recognized obligations of $366 million, principally nuclear decommissioning
liabilities. We also recorded a cumulative effect amount related to regulated
operations as a regulatory asset of $221 million, and a cumulative effect
charge against earnings of $6 million for 2003.

The impact on the second quarter and six-month period of 2003 of SFAS No. 143
and the pro-forma effect for the comparable 2002 periods as if SFAS No. 143 had
been adopted at January 1, 2002 are immaterial.

A reconciliation of the asset retirement obligation for the 2003 six-month
period follows:



---

|                                                |  |   |     |  
|----------------------------------------------- |  | - | --- | -
|(In Millions)                                   |  |   |     |  
|Asset retirement obligations at January 1, 2003 |  | $ | 771 |  
|Accretion                                       |  |   | 26  |  
|Liabilities settled                             |  |   | (1  | )
|                                                |  |  
|Asset retirement obligations at June 30, 2003   |  | $ | 796 |  
|                                                |  |  

---

SFAS No. 143 also requires the quantification of the estimated cost of removal
obligations, arising from other than legal obligations, which have been accrued
through depreciation charges. At January 1, 2003, we estimate that we had
approximately $300 million of previously accrued asset removal costs related to
our regulated operations, for other than legal obligations, included in
accumulated depreciation.

NOTE 3  DISPOSITION OF STEAM HEATING BUSINESS

In January 2003, we sold Detroit Edisons steam heating business to Thermal
Ventures II, LLP. This disposition is consistent with DTE Energys strategy to
divest non-strategic assets. Due to the continuing involvement of Detroit
Edison in the steam heating business, including the commitment to purchase $176
million in steam for resale through 2008, fund certain capital improvements and
guarantee the buyers credit facility, we recorded a net of tax loss of $14
million in the first quarter of 2003. As a result of our continuing
involvement, this transaction is not considered a sale for accounting purposes.
The steam heating business had assets of $6 million at December 31, 2002, and
net losses of $12 million in 2002, net income of $3 million in 2001 and a net
loss of $18 million in 2000.

17



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##### Table of Contents



NOTE 4  REGULATORY MATTERS

Transitional Rate Plan

On June 20, 2003, Detroit Edison filed an application for a change in retail
electric rates, resumption of the Power Supply Cost Recovery (PSCR) mechanism,
and recovery of net stranded costs with the MPSC. Detroit Edison is
specifically requesting authority to increase rates on an interim basis by $274
million annually to all customers not subject to a rate cap. Public Act 141
(PA141) became effective in June 2000 and contains provisions freezing rates
through 2003 and preventing rate increases for residential customers through
2005 and for small business customers through 2004. Detroit Edison has requested the MPSC act on our interim request in order to
be effective January 1, 2004. Concurrent with the order for interim rate
relief, Detroit Edison requested reinstatement of the PSCR mechanism. The PSCR
mechanism allowed Detroit Edison to recover through rates its fuel,
fuel-related and purchased power electric expenses and was suspended under PA
141. Detroit Edison is also proposing that base rates for the customer classes
still subject to rate caps in 2004 and 2005 be adjusted in an equal and
offsetting amount with any change in PSCR adjustments to maintain the total
rate level currently in effect. Also, the interim request seeks a five-year
surcharge from both full service and electric Customer Choice customers to
recover certain deferred regulatory asset balances including electric Customer
Choice program implementation costs, return on and of clean air investments
made prior to inclusion in rates and net stranded costs for years prior to
2004. This surcharge would be phased in by customer class between 2004 and 2006
as rate caps expire, and would total $109 million annually in 2006.

The application also is requesting a base rate increase for both full service
and electric Customer Choice customers totaling $416 million annually
(approximately 12% increase) in 2006, after the expiration of all customer rate
caps. Detroit Edison is proposing that the $416 million increase be allocated
between full service customers ($265 million) and electric Customer Choice
customers ($151 million). The final request for rate relief is based on a 50
percent equity-50 percent debt capital structure and a proposed return on
equity (ROE) of 11.5%. Detroit Edison is also proposing a ROE sharing
mechanism, which will apply to full service and electric Customer Choice
customers whose rates are no longer capped under PA 141. The ROE sharing
mechanism would be effective for the calendar year in which a final order is
received in this case.

Electric Industry Restructuring

Electric Rates, Customer Choice and
Stranded Costs  PA 141 provided Detroit
Edison with the right to recover net stranded costs, codified and established
January 1, 2002 as the date for full implementation of the MPSCs existing
electric Customer Choice program, and required the MPSC to reduce residential
electric rates by 5%. At that time, Public Act 142 (PA 142) also became
effective. PA 142 provided for the recovery through securitization of
qualified costs which consist of an electric utilitys regulatory assets,
plus various costs, associated with, or resulting from, the establishment of a
competitive electric market and the issuance of securitization bonds.

Acting pursuant to PA 141, in an order issued in June 2000, the MPSC reduced
Detroit Edisons residential electric rates by 5% and imposed a rate freeze for
all classes of customers through 2003. In April 2001, commercial and
industrial rates were lowered by 5% as a result of savings derived from the
issuance of securitization bonds in March 2001, as subsequently discussed.

Certain costs may be deferred and recovered once rates can be increased. This
rate cap may be lifted when certain market test provisions are met,
specifically, when an electric utility has no more than 30% of generation
capacity in its relevant market, with consideration for capacity needed to meet
a utilitys responsibility to serve its retail customers. Statewide,
multi-utility transmission system improvements also are required. In May 2003,
Detroit Edison submitted filings with the MPSC regarding the Companys
compliance with the provisions of PA 141 related to market test and
transmission system improvements. If the MPSC finds that the Company has
complied with the PA 141 provisions, the rate caps established under PA 141
will not continue after the dates specified in the legislation.

18



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##### Table of Contents



As required by PA 141, the MPSC conducted a proceeding to develop a methodology
for calculating the net stranded costs associated with electric Customer
Choice. In a December 2001 order, the MPSC determined that Detroit Edison
could recover net stranded costs associated with the fixed cost component of
its electric generation operations. Specifically, there would be an annual
filing with the MPSC comparing the receipt of revenues associated with the
fixed cost component of its generation services to the revenue requirement for
the fixed cost component of those services, inclusive of an allowance for the
cost of capital. Any resulting shortfall in recovery, net of mitigation, would
be considered a net stranded cost. The MPSC, in its December 2001 order, also
determined that Detroit Edison had no net stranded costs in 2000 and
consequently established a zero net stranded cost transition charge for billing
purposes in 2002. The MPSC authorized Detroit Edison to establish a regulatory
asset to defer recovery of its incurred stranded costs, subject to review in a
subsequent annual net stranded cost proceeding. The MPSC also determined that
Detroit Edison should provide a full and offsetting credit for the
securitization and tax charges applied to electric Customer Choice bills in
2002. In addition, the MPSC ordered an additional credit on bills equal to the
5% rate reduction realized by full service customers. Both credits were to be
funded from savings derived from securitization. The December 2001 order,
coupled with lower wholesale power prices in 2002, has encouraged additional
customer participation in the electric Customer Choice program and has resulted
in the loss of margins attributable to generation services. In May 2002, the
MPSC denied Detroit Edisons request for rehearing and clarification of the December 2001 order. In June
2002, Detroit Edison filed an appeal of the MPSC order at the Michigan Court of
Appeals, challenging the legality of specific aspects of the MPSC order. The
Court of Appeals has not yet issued a decision on this appeal.

In May 2002, Detroit Edison submitted its 2001 net stranded cost filing with
the MPSC. The filing provides refinements to the MPSC Staffs calculation of
net stranded costs that was adopted in the December 2001 order, seeks more
timely recovery of net stranded costs, and addresses issues raised by the
continuation of securitization offsets and rate reduction equalization credits.
Detroit Edisons filing supports the following conclusions: (i) Detroit Edison
had no net stranded costs in 2000 and $13 million of recoverable net stranded
costs attributable to electric Customer Choice in 2001; (ii) Detroit Edison
requested recovery of 2001 net stranded costs through the use of excess
securitization savings; (iii) Detroit Edison expects to incur additional net
stranded costs in 2002 and 2003 as a result of increased electric Customer
Choice participation; and (iv) Detroit Edison recommended that a pro-forma or
forward looking transition charge be approved for billing during the remainder
of 2002 and for 2003 to eliminate the time lag between the occurrence and
recovery of net stranded costs inherent in the methodology approved in the
December 2001 order. In November 2002, the MPSC Staff and other interveners
submitted their 2001 net stranded cost filings. In the fourth quarter of 2002,
Detroit Edison recorded a regulatory asset of $21 million, of which $10 million
represented an estimate of net stranded costs during 2001, and the remaining
balance represented the deferral of environmental expenditures recoverable
under PA 141. The effect of recording the regulatory asset increased 2002
earnings by $14 million, net of tax. During the 2003 six-month period, Detroit
Edison recorded a regulatory asset of $35 million, of which $12 million
represented an estimate of net stranded costs for 2003, and the remainder
representing the deferral of environmental expenditures. The effect for the
2003 six-month period was an increase in earnings of $23 million, net of tax.

On July 31, 2003, the MPSC issued an order finding that Detroit Edison had no net
stranded costs in 2000 and 2001 and established a zero net stranded cost
transition charge for billing purposes in 2003. Although the MPSC found that
Detroit Edison had no stranded costs, the MPSC deferred finalizing the methodology
for determining stranded cost. However, the MPSC did clarify the inclusion of
revenue discounts granted customers under
special contracts in the net stranded cost calculation. As a result of the MPSC order and the related clarifying
language, we recalculated net stranded costs for 2001, 2002 and the 2003
six-month period. Our revised calculation concluded that the $22 million of net stranded costs recorded as of June 30, 2003 was appropriate.

19



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##### Table of Contents



Additionally, the MPSC determined in its July 2003 order that the full and
offsetting credit for securitization and tax charges, and the additional credit
on bills equal to the 5% rate reduction realized by full service customers
should continue in effect and be funded by savings derived from securitization.
The MPSC rejected Detroit Edisons proposal to utilize a forward looking
transition charge and maintained that the use of historical data was more
precise.
As previously mentioned, the MPSC deferred finalizing
the methodology for determining net stranded cost, but indicated they were open to
new proposals, including those arising out of an ongoing collaborative process with various
interested parties, including Detroit Edison. Detroit Edison expects to file a petition for rehearing of
this order.

Minimum Pension Liability

In December 2002, we recorded an additional minimum pension liability as
required under SFAS No. 87, Employers Accounting for Pensions, with
offsetting amounts to an intangible asset and other comprehensive income.
During the first quarter of 2003, the MPSC Staff provided an opinion that the
MPSCs traditional rate setting process allowed for the recovery of pension
costs as measured by SFAS No. 87. Based on the MPSC Staff discussions,
management believes that it will be allowed to recover in rates the minimum
pension liability associated with its regulated operations. Accordingly, in
the first quarter of 2003 we reclassified approximately $641 million ($417
million net of tax) of other comprehensive loss associated with the minimum
pension liability to a regulatory asset.

We are unable to predict the outcome of the regulatory matters discussed
herein. Resolution of these matters is dependent upon future MPSC orders,
which may materially impact the financial position, results of operations and
cash flows of the company.

NOTE 5  CONTINGENCIES

We are 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. We cannot predict
the final disposition of such proceedings. We regularly review legal matters
and record provisions for claims that are considered probable of loss. The
resolution of pending proceedings is not expected to have a material effect on
our financial statements in the period they are resolved.

See Note 4 for a discussion of contingencies related to Regulatory Matters.

20



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##### Table of Contents



NOTE 6  SEGMENT INFORMATION

Detroit Edison has the following two reportable segments. Inter-segment
revenues are not material.



---

|                                       |       |      |                    |    |      |                  |     |      |  |   |       |    |  |   |       |     | 
|-------------------------------------- | ----- | ---- | ------------------ | -- | ---- | ---------------- | --- | ---- |  | - | ----- | -- |  | - | ----- | --- | 
|                                       |       |      | Three Months Ended |    |      | Six Months Ended |    
|                                       |       |      | June 30            |    |      | June 30          |    
|                                       |       |      |                    |    |      |                  |    
|                                       |       | 2003 |                    |    | 2002 |                  |     | 2003 |  |   | 2002  |   
|(in Millions)                          |       |      |                    |    |      |                  |     |      |  |   |       |   
|                                      
|Operating Revenues                     |       |      |                    |    |      |                  |     |      |  |   |       |    |  |   |       |    
|Energy Resources                       |       | $    | 589                |    |      | $                | 660 |      |  | $ | 1,206 |    |  | $ | 1,277 |    
|Energy Distribution                    |       |      | 281                |    |      |                  | 302 |      |  |   | 601   |    |  |   | 615   |    
|                                       |       |      |                    |    |      |                  |     |      |  |   |       |   
|                                       |       | $    | 870                |    |      | $                | 962 |      |  | $ | 1,807 |    |  | $ | 1,892 |    
|                                       |       |      |                    |    |      |                  |     |      |  |   |       |   
|Net Income                             |       |      |                    |    |      |                  |     |      |  |   |       |    |  |   |       |    
|Energy Resources                       |       | $    | 46                 |    |      | $                | 56  |      |  | $ | 71    |    |  | $ | 121   |    
|Energy Distribution                    |       |      | (16                | )  |      |                  | 18  |      |  |   | (20   | )  |  |   | 46    |    
|Cumulative Effect of Accounting Change |       |      |                   |    |      |                  |    |      |  |   | (6    | )  |  |   |      |    
|                                       |       |      |                    |    |      |                  |     |      |  |   |       |   
|                                       | Total |      | $                  | 30 |      |                  | $   | 74   |  |   | $     | 45 |  |   | $     | 167 | 
|                                       |       |      |                    |    |      |                  |     |      |  |   |       |   

---

21



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INDEPENDENT ACCOUNTANTS REPORT

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

We have reviewed the accompanying condensed consolidated statement of financial
position of The Detroit Edison Company and subsidiaries as of June 30, 2003,
the related condensed consolidated statement of operations for the three-month
and six-month periods ended June 30, 2003 and 2002, the condensed consolidated
statement of cash flows for the six-month periods ended June 30, 2003 and 2002,
and the condensed consolidated statement of changes in shareholders equity and
comprehensive income for the six-month period ended June 30, 2003 and six-month
periods ended June 30, 2003 and 2002, respectively. These interim financial
statements are the responsibility of The Detroit Edison Companys management.

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

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated statement of
financial position of The Detroit Edison Company and subsidiaries as of
December 31, 2002 and the related consolidated statements of operations, cash
flows and changes in shareholders equity and comprehensive income for the year
then ended (not presented herein); and in our report dated February 11, 2003,
we expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed
consolidated statement of financial position as of December 31, 2002 is fairly
stated, in all material respects, in relation to the consolidated statement of
financial position from which it has been derived.

/s/  DELOITTE & TOUCHE LLPDetroit, Michigan

August 14, 2003

22



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##### Table of Contents






OTHER INFORMATION




LEGAL PROCEEDINGS

We are 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 contract disputes, environmental reviews
and investigations, and pending judicial matters. We cannot predict the final
disposition of such proceedings. We regularly review legal matters and record
provisions for claims that are considered probable of loss. The resolution of
pending proceedings is not expected to have a material effect on our financial
statements in the period they are resolved. For additional discussion on legal
matters, see the Notes to the Consolidated Financial Statements.




OTHER INFORMATION

None.




EXHIBITS AND REPORTS ON FORM 8-K



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

|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Number     |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Filed:     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|15-24      |  | Awareness Letter of Deloitte & Touche LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31-1       |  | Chief Executive Officer Section 302 Form 10-Q Certification                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31-2       |  | Chief Financial Officer Section 302 Form 10-Q Certification                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|99-11      |  | Amendment dated as of May 28, 2003 to the Trade Receivables Purchase and
Sale Agreement, dated as of February 28, 1989, and an Amendment and
Restatement thereof, dated as of October 1, 1991, and as further amended
by an Amendment dated as of February 28, 1994, an Amendment dated as of
February 1, 1999, an Amendment dated as of January 27, 2000 and an
Amendment dated as of January 25, 2001, among The Detroit Edison Company,
as seller, Citibank, N.A., and Citicorp North America, Inc.
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|99-12      |  | Amendment No. 2 dated as of May 28, 2003 to the Trade Receivables
Purchase and Sale Agreement, dated as of February 28, 1989, an Amendment
and Restatement thereof, dated as of October 1, 1991, an Amendment and
Restatement thereof dated as of March 9, 2001 and an Amendment dated as of
January 17, 2003, among The Detroit Edison Company, as seller, Corporate
Asset Funding Company, Inc., Citibank, N.A., and Citicorp North America,
Inc.                                                   
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Furnished: |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|32-1       |  | Chief Executive Officer Section 906 Certification of Periodic Report                                                                                                                                                                                                                                                                                                                                                                                                                                  
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|32-2       |  | Chief Financial Officer Section 906 Certification of Periodic Report                                                                                                                                                                                                                                                                                                                                                                                                                                  
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

23



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##### Table of Contents





|(b) |  | Reports on Form 8-K
|--- |  | -------------------

During the quarterly period ended June 30, 2003, we filed Current Reports on
Form 8-K covering matters, as follows:

Item 7. Exhibits and Item 9. Information Provided Under Item 12 (Results of
Operations and Financial Condition) filed and dated May 2, 2003 and

Item 5. Other Events and Item 7. Financial Statements and Exhibits and Item 9.
Regulation FD Disclosure filed and dated June 20, 2003.

24



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##### Table of Contents






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                                                  
|      |                 |                                                                             
|      |                 |                                                                             
|      |                 |                                                                             
|Date: | August 13, 2003 | /s/ DANIEL G. BRUDZYNSKI                                                    
|      |                 |                                                                             
|      |                 | Daniel G. Brudzynski
Chief Accounting Officer,
Vice President and Controller

25



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##### Table of Contents



EXHIBIT INDEX

|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Number     |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Filed:     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|15-24      |  | Awareness Letter of Deloitte & Touche LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31-1       |  | Chief Executive Officer Section 302 Form 10-Q Certification                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|31-2       |  | Chief Financial Officer Section 302 Form 10-Q Certification                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|99-11      |  | Amendment dated as of May 28, 2003 to the Trade Receivables Purchase and
Sale Agreement, dated as of February 28, 1989, and an Amendment and
Restatement thereof, dated as of October 1, 1991, and as further amended
by an Amendment dated as of February 28, 1994, an Amendment dated as of
February 1, 1999, an Amendment dated as of January 27, 2000 and an
Amendment dated as of January 25, 2001, among The Detroit Edison Company,
as seller, Citibank, N.A., and Citicorp North America, Inc.
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|99-12      |  | Amendment No. 2 dated as of May 28, 2003 to the Trade Receivables
Purchase and Sale Agreement, dated as of February 28, 1989, an Amendment
and Restatement thereof, dated as of October 1, 1991, an Amendment and
Restatement thereof dated as of March 9, 2001 and an Amendment dated as of
January 17, 2003, among The Detroit Edison Company, as seller, Corporate
Asset Funding Company, Inc., Citibank, N.A., and Citicorp North America,
Inc.                                                   
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|Furnished: |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|32-1       |  | Chief Executive Officer Section 906 Certification of Periodic Report                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|32-2       |  | Chief Financial Officer Section 906 Certification of Periodic Report