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                                                                   EXHIBIT 10-23




                         [DETROIT EDISON LETTERHEAD]
                                  
                                  

                                  July 11, 1990

          Mr. Larry Gilbert Garberding 
          231 N. Lincoln 
          Hinsdale, Illinois 60521

          Dear Larry:

          I am extremely pleased to offer you employment with our organization
          in the position of Executive Vice President and Chief Financial
          Officer, at an annual salary of $285,000.

          Upon employment, the employee benefits and other perquisites of
          employment as a Detroit Edison executive will be made available to
          you. The employment benefits that are made available to all employees
          are described in the enclosed employee's handbook, "Benefits Plus."
          Executive perquisites are briefly described in a separate enclosure.

          Upon commencement of your employment, you will be paid the equivalency
          of one month's salary, $23,750, the premium for three months' health
          care coverage, $1,530, and you will also be eligible for benefits
          under the Company's Relocation Plan.

          Commencement of your employment on or after August 1, 1990, would
          result in your being ineligible to participate in Detroit Edison's
          1990 Shareholder Value Improvement Plan-A. Accordingly, Detroit Edison
          would pay you at the time SVIP awards are otherwise paid to eligible
          employees, an equivalent sum equal to 5/12 of the amount of an award
          calculated by the SVIP formula. Payment is measured by and subject to
          the same terms and conditions as otherwise stated by the SVIP-A, a
          copy of which is enclosed.

          In regard to Detroit Edison's Management Supplemental Benefit Plan,
          which is described in the enclosure, appropriate adjustment would be
          made such that you would be eligible for benefits thereunder upon
          obtaining eight years of service with the Company (or such earlier
          time as may be mutually agreed by you and the Organization and


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          Mr. Larry Gilbert Garberding
          July 11, 1990
          Page two

          Compensation Committee of the Board). Also, in regard to the
          Management Supplemental Benefit Plan, you would be given 25 years of
          "awarded service," as such is used in determining benefits under this
          Plan on the eighth anniversary of your employment (or such earlier
          time as you and the Board may mutually agree upon in the future).

          With respect to retiree health care coverage (as you would not be
          eligible for such under the Company's group health plan), upon your
          retirement, at age 60, or later (or upon retirement at an earlier age
          as may be mutually agreed by you and the Organization and Compensation
          Committee of the Board), Detroit Edison would also provide you with
          insured health care coverage equivalent to health care benefits
          provided to retirees under the Company's group health care plan.
          Should you pre-decease your spouse after retirement, the insurance
          coverage as would be provided to you would include health care
          benefits for your spouse for an additional two years.

          With respect to retiree life and dependent life insurance coverage (as
          you would not be eligible for such under the Company group life
          insurance plan), upon retirement, at age 60 or later (or upon
          retirement at an earlier age as may be mutually agreed upon by you and
          the Organization and Compensation Committee of the Board), Detroit
          Edison would also provide you with retiree life and dependent life
          insurance coverage equivalent to retiree life and dependent life
          insurance benefits provided to retirees under applicable life
          insurance arrangements.

          This offer is subject to successful completion of a pre-employment
          physical examination, a review of references, and completion of our
          employment history form.

          Also, this offer is subject to your election to the office of
          Executive Vice President and Chief Financial Officer, and the approval
          of the compensation offer by the Company's Board of Directors. As with
          other officers, your employment would be "at will" and subject to the
          pleasure of the Board of Directors. This offer of employment is made
          with the understanding that there are no other promised benefits other
          than as are referenced by this letter. Nothing contained herein shall
          be deemed to in any way affect the provisions of any other benefit
          plans, qualified and non-qualified, maintained by the Company.


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          Mr. Larry Gilbert Garberding
          July 11, 1990
          Page three

          Please contact me at (313) 237-8800 as soon as you have completed your
          review of our offer of employment. You may contact Malcolm Dade at
          (313) 237-8610 regarding any questions you may have concerning
          compensation.

          I and the other members of senior management are looking forward to
          you joining us and hope to hear from you soon.

                                               Sincerely,
                                               John E Lobbia


          Enclosures


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Mr. Garberding July 11, 1990 letter enclosures:

        Detroit Edison Benefits Plus Handbook
        Executive Perquisites Not Appearing
            In The "Benefits Plus" Handbook For Employes
        It's Your Move! Detroit Edison Relocation Plan
        1990 Shareholder Value Improvement Plan
        1990 Shareholder Value Improvement Plan
            First Quarter Progress Report
        Management Supplemental Benefit Plan

Also enclosed but not referenced are:

        Memorandum to Newly Hired Employes re. Health Care Coverage for
          Employes Hired or Rehired July 1, 1989 or After with attachments
        Executive Vehicle Program


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                                                                   Exhibit 28-52


                       Certain Arrangements Pertaining to
                     the Employment of Larry G. Garberding

               Effective August 1, 1990, Mr. Larry G. Garberding was elected
          Executive Vice President and Chief Financial Officer of The Detroit
          Edison Company ("Company"). Mr. Garberding has also been elected a
          Director.

               As set forth below, Mr. Garberding's employment with the Company
          includes the following:

               1. In the event that payments are made under the 1990 Shareholder
          Value Improvement Plan-A ("SVIP") (Exhibit 10-23 to the Company's Form
          10-K for the year ended December 31, 1989), Mr. Garberding will be
          awarded an amount measured by the terms and conditions of the SVIP,
          calculated to provide 5/12 of the amount that would otherwise have
          been payable to him if eligibility under the SVIP had been
          established. If paid, one-half of this amount will be in cash and
          one-half will be deferred and such deferred amount will be subject to
          the same terms and conditions applicable to deferred accounts under
          the SVIP.

               2. On his eighth service anniversary with the Company, Mr.
          Garberding will be eligible to participate in the Management
          Supplemental Benefit Plan ("Plan") (Exhibit 10-22 to the Company's
          Form 10-K for the year ended December 31, 1989); and on such
          anniversary date, Mr. Garberding will be awarded 25 years of Company
          service pursuant to the provisions of the Plan.

               3. In the event that Mr. Garberding retires from Company service
          at age 60 or older, Mr. Garberding will be provided with insured
          health care and life insurance coverage equivalent to benefits
          provided to retirees.