##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period ended March 31, 2009
 Commission file number 1-2198
 The Detroit Edison Company meets the conditions set forth in General Instruction H (1) (a) and (b)
of Form 10-Q and is, therefore, filing this Form with the reduced disclosure format.
 THE DETROIT EDISON COMPANY
  Michigan
    
    38-0478650(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)One Energy Plaza, Detroit, Michigan
    
    48226-1279(Address of principal executive offices)
    
    (Zip Code)
 313-235-4000
  Yes þ No o
  Yes o No o
  Large accelerated filero
    
    Accelerated filero
    
    Non-accelerated filerþ
    
    Smaller reporting companyo(Do not check if a smaller reporting company)
  Yes o No þ




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##### 



The Detroit Edison Company  Quarterly Report on Form 10-Q  Quarter Ended March 31, 2009
 Table Of Contents
 PageDefinitions
    
    1Forward-Looking Statements
    
    2Part I  Financial InformationItem 1. Financial StatementsConsolidated Statements of Operations (Unaudited)
    
    8Consolidated Statements of Cash Flows (Unaudited)
    
    9Consolidated Statements of Financial Position (Unaudited)
    
    10Consolidated Statements of Changes in Shareholders Equity and Comprehensive Income (Unaudited)
    
    12Notes to Consolidated Financial Statements (Unaudited)
    
    13Item 2. Managements Narrative Analysis of Results of Operations
    
    4Item 4. Controls and Procedures
    
    7Part II  Other InformationItem 1. Legal Proceedings
    
    24Item 1A. Risk Factors
    
    24Item 6. Exhibits
    
    24Signature
    
    25EX-4.263EX-4.264EX-12.33EX-31.47EX-31.48EX-32.47EX-32.48




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Definitions
 Company
    
    The Detroit Edison CompanyCTA
    
    Costs to achieve, consisting of project management, consultant support
and employee severance, related to the Performance Excellence ProcessCustomer Choice
    
    Statewide initiatives giving customers in Michigan the option to choose
alternative suppliers for electricity.Detroit Edison
    
    The Detroit Edison Company (a direct wholly owned subsidiary of DTE
Energy) and subsidiary companiesDTE Energy
    
    DTE Energy Company, the parent of Detroit Edison and directly or
indirectly the parent company of numerous non-utility subsidiariesEPA
    
    United States Environmental Protection AgencyFASB
    
    Financial Accounting Standards BoardFERC
    
    Federal Energy Regulatory CommissionMDEQ
    
    Michigan Department of Environmental QualityMISO
    
    Midwest Independent System Operator, a Regional Transmission OrganizationMPSC
    
    Michigan Public Service CommissionNRC
    
    Nuclear Regulatory CommissionPSCR
    
    A power supply cost recovery mechanism authorized by the MPSC that
allows Detroit Edison to recover through rates its fuel, fuel-related
and purchased power expenses.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 StandardsUnits of MeasurementkWh
    
    Kilowatthour of electricityMW
    
    Megawatt of electricityMWh
    
    Megawatthour of electricity
 1




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Forward-Looking Statements
  
    
    access to capital markets and capital market conditions and the results of other
financing efforts which can be affected by credit agency ratings;
    
    instability in capital markets which could impact availability of short and long-term
financing;
    
    potential for continued loss on investments, including nuclear
decommissioning and benefit plan assets;
    
    the length and severity of ongoing economic decline;
    
    the timing and extent of changes in interest rates;
    
    the level of borrowings;
    
    the availability, cost, coverage and terms of insurance and stability of insurance
providers;
    
    changes in the economic and financial viability of our customers, suppliers, and
trading counterparties, and the continued ability of such parties to perform their
obligations to Detroit Edison;
    
    the effects of weather and other natural phenomena on operations and sales to
customers, and purchases from suppliers;
    
    economic climate and population growth or decline in the geographic areas where we do
business;
    
    environmental issues, laws, regulations, and the increasing costs of remediation and
compliance, including actual and potential new federal and state requirements that could
include carbon and more stringent mercury emission controls, a renewable portfolio
standard, energy efficiency mandates, and a carbon tax or cap and trade structure;
    
    nuclear regulations and operations associated with nuclear facilities;
    
    impact of electric utility restructuring in Michigan, including legislative amendments
and Customer Choice programs;
    
    employee relations and the impact of collective bargaining agreements;
    
    unplanned outages;
    
    changes in the cost and availability of coal and other raw materials, and purchased
power;
    
    the effects of competition;
    
    impact of regulation by the FERC, MPSC, NRC and other applicable governmental
proceedings and regulations, including any associated impact on rate structures;
    
    changes in and application of federal, state and local tax laws and their
interpretations, including the Internal Revenue Code, regulations, rulings, court
proceedings and audits;
    
    the ability to recover costs through rate increases;
 2




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
    
    the cost of protecting assets against, or damage due to, terrorism;
    
    changes in and application of accounting standards and financial reporting regulations;
    
    changes in federal or state laws and their interpretation with respect to regulation,
energy policy and other business issues;
    
    high levels of uncollectible accounts receivable; and
    
    binding arbitration, litigation and related appeals.
  3




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Part I  Item 2.
 The Detroit Edison Company
 
 Managements Narrative Analysis of Results of Operations
  Factors impacting income
 Three Months EndedMarch 31(in Millions)
    
    2009
    
    
    2008Operating Revenues
    
    $
    1,118
    
    
    $
    1,153Fuel and Purchased Power
    
    
    340
    
    
    
    402Gross Margin
    
    
    778
    
    
    
    751Operation and Maintenance
    
    
    316
    
    
    
    358Depreciation and Amortization
    
    
    188
    
    
    
    192Taxes Other Than Income
    
    
    60
    
    
    
    62Operating Income
    
    
    214
    
    
    
    139Other (Income) and Deductions
    
    
    84
    
    
    
    74Income Tax Provision
    
    
    52
    
    
    
    24Net Income
    
    $
    78
    
    
    $
    41Operating Income as a Percentage of Operating Revenues
    
    
    19
    %
    
    
    12
    %
 Gross margin
 (in Millions)
    
    Three MonthsWeather-related impacts
    
    $
    3Economy
    
    
    (37
    )April 2008 expiration of show-cause rate decrease
    
    
    17December 2008 rate order
    
    
    18Securitization bond and tax surcharge rate increase
    
    
    8Other, net
    
    
    18Increase in gross margin
    
    $
    27
 Three Months EndedMarch 31(in Thousands of MWh)
    
    2009
    
    
    2008Electric SalesResidential
    
    
    3,738
    
    
    
    3,932Commercial
    
    
    4,423
    
    
    
    4,362Industrial
    
    
    2,637
    
    
    
    3,516Wholesale
    
    
    704
    
    
    
    723Other
    
    
    113
    
    
    
    10911,615
    
    
    
    12,642Interconnections sales (1)
    
    
    1,035
    
    
    
    826Total Electric Sales
    
    
    12,650
    
    
    
    13,468Electric DeliveriesRetail and Wholesale
    
    
    11,615
    
    
    
    12,642Electric Customer Choice
    
    
    398
    
    
    
    398Electric Customer Choice  Self Generators (2)
    
    
    (81
    )
    
    
    58Total Electric Sales and Deliveries
    
    
    11,932
    
    
    
    13,098
 4




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(1)
    
    Represents power that is not distributed by Detroit Edison.(2)
    
    Represents deliveries for self generators who have purchased power from alternative energy
suppliers to supplement their power requirements. Three Months EndedPower Generated and Purchased
    
    March 31(in Thousands of MWh)
    
    2009
    
    
    2008Power Plant GenerationFossil
    
    
    9,842
    
    
    
    10,240Nuclear
    
    
    2,254
    
    
    
    2,34312,096
    
    
    
    12,583Purchased Power
    
    
    1,352
    
    
    
    1,730System Output
    
    
    13,448
    
    
    
    14,313Less Line Loss and Internal Use
    
    
    (798
    )
    
    
    (845
    )Net System Output
    
    
    12,650
    
    
    
    13,468Average Unit Cost ($/MWh)Generation (1)
    
    $
    17.30
    
    
    $
    16.60Purchased Power
    
    $
    33.94
    
    
    $
    61.60Overall Average Unit Cost
    
    $
    18.97
    
    
    $
    22.04
 
 (1)
    
    Represents fuel costs associated with power plants. Operation and maintenance
 Outlook
   
    
    Instability in capital markets which could impact availability of short and long-term
financing or the potential for loss on investments;
    
    Economic conditions within Michigan and corresponding impacts on demand for electricity;
    
    Collectibility of accounts receivable;
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
    
    Increases in future expense and contributions to pension and other postretirement plans
due to declines in asset values resulting from market conditions;
    
    The amount and timing of cost recovery allowed as a result of regulatory proceedings,
related appeals or new legislation;
    
    Our ability to reduce costs and maximize plant and distribution system performance;
    
    Weather;
    
    The level of customer participation in the electric Customer Choice program; and
    
    Any current and potential new federal and state environmental, renewable energy and
energy efficiency requirements.
 
 6




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Part I  Item 4.
 CONTROLS AND PROCEDURES
 (a) Evaluation of disclosure controls and procedures
  (b) Changes in internal control over financial reporting
 
 7




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The
Detroit Edison Company
 
 Consolidated Statements of Operations (Unaudited)
 Three Months EndedMarch 31(in Millions)
    
    2009
    
    
    2008Operating Revenues
    
    $
    1,118
    
    
    $
    1,153Operating ExpensesFuel and purchased power
    
    
    340
    
    
    
    402Operation and maintenance
    
    
    316
    
    
    
    358Depreciation and amortization
    
    
    188
    
    
    
    192Taxes other than income
    
    
    60
    
    
    
    62904
    
    
    
    1,014Operating Income
    
    
    214
    
    
    
    139Other (Income) and DeductionsInterest expense
    
    
    79
    
    
    
    76Interest income
    
    
    
    
    
    
    (1
    )Other income
    
    
    (7
    )
    
    
    (12
    )Other expenses
    
    
    12
    
    
    
    1184
    
    
    
    74Income Before Income Taxes
    
    
    130
    
    
    
    65Income Tax Provision
    
    
    52
    
    
    
    24Net Income
    
    $
    78
    
    
    $
    41
  8




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The Detroit Edison Company
 
 Consolidated Statements of Cash Flows (Unaudited)
 Three Months EndedMarch 31(in Millions)
    
    2009
    
    
    2008Operating ActivitiesNet Income
    
    $
    78
    
    
    $
    41Adjustments to reconcile net income to net cash from operating activities:Depreciation and amortization
    
    
    188
    
    
    
    192Deferred income taxes
    
    
    (4
    )
    
    
    (14
    )Asset (gains) and reserves, net
    
    
    
    
    
    
    (1
    )Changes in assets and liabilities, exclusive of changes shown separately
    
    
    154
    
    
    
    113Net cash from operating activities
    
    
    416
    
    
    
    331Investing ActivitiesPlant and equipment expenditures
    
    
    (263
    )
    
    
    (213
    )Restricted cash for debt redemptions
    
    
    64
    
    
    
    55Proceeds from sale of nuclear decommissioning trust fund assets
    
    
    113
    
    
    
    52Investment in nuclear decommissioning trust funds
    
    
    (113
    )
    
    
    (61
    )Other investments
    
    
    (286
    )
    
    
    (12
    )Net cash used for investing activities
    
    
    (485
    )
    
    
    (179
    )Financing ActivitiesRedemption of long-term debt
    
    
    (81
    )
    
    
    (74
    )Repurchase of long-term debt
    
    
    
    
    
    
    (238
    )Short-term borrowings, net
    
    
    
    
    
    
    47Capital contribution by parent company
    
    
    250
    
    
    
    175Dividends on common stock
    
    
    (76
    )
    
    
    (76
    )Other
    
    
    (3
    )
    
    
    (3
    )Net cash used for financing activities
    
    
    90
    
    
    
    (169
    )Net Decrease in Cash and Cash Equivalents
    
    
    21
    
    
    
    (17
    )Cash and Cash Equivalents at Beginning of the Period
    
    
    30
    
    
    
    47Cash and Cash Equivalents at End of the Period
    
    $
    51
    
    
    $
    30
  9




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Part I  Item 1.
 The Detroit Edison Company
 
 Consolidated Statements of Financial Position (Unaudited)
 March 31
    
    
    December 31(in Millions)
    
    2009
    
    
    2008ASSETSCurrent AssetsCash and cash equivalents
    
    $
    51
    
    
    $
    30Restricted cash
    
    
    20
    
    
    
    84Accounts receivable (less allowance for
doubtful accounts of $107 and $121,
respectively)Customer
    
    
    687
    
    
    
    709Affiliates
    
    
    1
    
    
    
    5Other
    
    
    19
    
    
    
    34InventoriesFuel
    
    
    157
    
    
    
    170Materials and supplies
    
    
    169
    
    
    
    169Notes ReceivableAffiliates
    
    
    289
    
    
    
    41Other
    
    
    3
    
    
    
    3Other
    
    
    111
    
    
    
    951,507
    
    
    
    1,340InvestmentsNuclear decommissioning trust funds
    
    
    657
    
    
    
    685Other
    
    
    94
    
    
    
    99751
    
    
    
    784PropertyProperty, plant and equipment
    
    
    15,112
    
    
    
    14,977Less accumulated depreciation
    
    
    (5,884
    )
    
    
    (5,828
    )9,228
    
    
    
    9,149Other AssetsRegulatory assets
    
    
    3,430
    
    
    
    3,456Securitized regulatory assets
    
    
    969
    
    
    
    1,001Intangible assets
    
    
    9
    
    
    
    19Notes ReceivableAffiliates
    
    
    26
    
    
    
    Other
    
    
    2
    
    
    
    3Other
    
    
    97
    
    
    
    904,533
    
    
    
    4,569Total Assets
    
    $
    16,019
    
    
    $
    15,842
  10




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The Detroit Edison Company  Consolidated Statements of Financial Position (Unaudited)
 March 31
    
    
    December 31(in Millions, Except Shares)
    
    2009
    
    
    2008LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesAccounts payable  affiliates
    
    $
    49
    
    
    $
    103Accounts payable other
    
    
    339
    
    
    
    346Accrued interest
    
    
    79
    
    
    
    80Accrued vacation
    
    
    56
    
    
    
    58Accrued power supply cost recovery revenue
    
    
    82
    
    
    
    27Income taxes payable
    
    
    89
    
    
    
    39Short-term borrowings  other
    
    
    75
    
    
    
    75Current portion of long-term debt, including capital leases
    
    
    308
    
    
    
    153Other
    
    
    177
    
    
    
    1971,254
    
    
    
    1,078Long-Term Debt (net of current portion)Mortgage bonds, notes and other
    
    
    3,927
    
    
    
    4,091Securitization bonds
    
    
    861
    
    
    
    932Capital lease obligations
    
    
    31
    
    
    
    334,819
    
    
    
    5,056Other LiabilitiesDeferred income taxes
    
    
    1,879
    
    
    
    1,894Regulatory liabilities
    
    
    593
    
    
    
    593Asset retirement obligations
    
    
    1,221
    
    
    
    1,205Unamortized investment tax credit
    
    
    83
    
    
    
    85Nuclear decommissioning
    
    
    112
    
    
    
    114Accrued pension liability  affiliates
    
    
    935
    
    
    
    978Accrued postretirement liability  affiliates
    
    
    1,085
    
    
    
    1,075Other
    
    
    229
    
    
    
    2086,137
    
    
    
    6,152Commitments and Contingencies (Notes 5 and 8)Shareholders EquityCommon stock, $10 par value, 400,000,000 shares
authorized, and 138,632,324 shares issued and outstanding
    
    
    3,196
    
    
    
    2,946Retained earnings
    
    
    624
    
    
    
    622Accumulated other comprehensive income (loss)
    
    
    (11
    )
    
    
    (12
    )3,809
    
    
    
    3,556Total Liabilities and Shareholders Equity
    
    $
    16,019
    
    
    $
    15,842
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The Detroit Edison Company
 
 Consolidated Statements of Changes in Shareholders Equity and
 Comprehensive Income (Unaudited)
 AccumulatedAdditional
    
    
    
    
    
    OtherCommon Stock
    
    Paid In
    
    Retained
    
    Comprehensive(Dollars in Millions, shares in thousands)
    
    Shares
    
    Amount
    
    Capital
    
    Earnings
    
    Loss
    
    TotalBalance, December 31, 2008
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,560
    
    
    $
    622
    
    
    $
    (12
    )
    
    $
    3,556Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    78
    
    
    
    
    
    
    
    78Capital contribution by parent company
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250Dividends declared on common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76
    )
    
    
    
    
    
    
    (76
    )Net change in unrealized gains on
investments, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Balance, March 31, 2009
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,810
    
    
    $
    624
    
    
    $
    (11
    )
    
    $
    3,809
  (in Millions)
    
    2009
    
    
    2008Net income
    
    $
    78
    
    
    $
    41Other comprehensive income, net of tax:Net unrealized gains on investments:Amounts reclassified to income, net of taxes
    
    
    1
    
    
    
    1Comprehensive income
    
    $
    79
    
    
    $
    42
  12




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The Detroit Edison Company
 
 Notes to Consolidated Financial Statements (Unaudited)
 NOTE 1  GENERAL
     Asset Retirement Obligations
 Accounting for
Asset Retirement Obligations Accounting for Conditional
Asset Retirement Obligations, an interpretation of FASB Statement No. 143
 Accounting for the Effects of Certain Types of Regulation
  (in Millions)Asset retirement obligations at January 1, 2009
    
    $
    1,226Accretion
    
    
    20Liabilities settled
    
    
    (2
    )Revision in estimated cash flows
    
    
    (4
    )Asset retirement obligations at March 31, 2009
    
    
    1,240Less amount included in current liabilities
    
    
    (19
    )$
    1,221
  13




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Retirement Benefits and Trusteed Assets
  Other PostretirementPension Benefits
    
    
    Benefits(in Millions)
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    11
    
    
    $
    12
    
    
    $
    12
    
    
    $
    12Interest cost
    
    
    39
    
    
    
    37
    
    
    
    26
    
    
    
    23Expected return on plan assets
    
    
    (41
    )
    
    
    (41
    )
    
    
    (10
    )
    
    
    (14
    )Amortization of:Net actuarial loss
    
    
    9
    
    
    
    7
    
    
    
    12
    
    
    
    7Prior service cost
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    Net transition liability
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Net periodic benefit cost
    
    $
    20
    
    
    $
    17
    
    
    $
    41
    
    
    $
    29
   Income Taxes
  Stock-Based Compensation
 Share-Based Payment,
 Consolidated Statements of Cash Flows
  Three Months EndedMarch 31(in Millions)
    
    2009
    
    
    2008Changes in Assets and Liabilities, Exclusive of Changes Shown SeparatelyAccounts receivable, net
    
    $
    35
    
    
    $
    76Inventories
    
    
    13
    
    
    
    (11
    )Accrued pension liability  affiliates
    
    
    (42
    )
    
    
    7Accounts payable
    
    
    (11
    )
    
    
    Accrued PSCR refund
    
    
    75
    
    
    
    52Income taxes payable
    
    
    56
    
    
    
    3Postretirement obligation  affiliates
    
    
    10
    
    
    
    2Other assets
    
    
    60
    
    
    
    4Other liabilities
    
    
    (42
    )
    
    
    (20
    )$
    154
    
    
    $
    113
 14




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NOTE 2  NEW ACCOUNTING PRONOUNCEMENTS
 Fair Value Accounting
 Fair Value Measurements
  §
    
    FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial
Instruments,expands the fair value disclosures required for all financial instruments
within the scope of SFAS No. 107 to interim periods.§
    
    FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly,which applies to all assets and liabilities, i.e., financial and nonfinancial,
reemphasizes that the objective of fair value remains unchanged (i.e., an exit price
notion). The FSP provides application guidance on measuring fair value when the volume and
level of activity has significantly decreased and identifying transactions that are not
orderly. The FSP also emphasizes that an entity cannot presume that an observable
transaction price is not orderly even when there has been a significant decline in the
volume and level of activity.§
    
    FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary
Impairments,is intended to bring greater consistency to the timing of impairment
recognition, and provide greater clarity to investors about the credit and noncredit
components of impaired debt securities that are not expected to be sold.
  Disclosures about Derivative Instruments and Guarantees
 Disclosures about Derivative Instruments and Hedging
Activities  an amendment of FASB Statement No. 133
  15




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Noncontrolling Interests in Consolidated Financial Statements
 Noncontrolling Interests in Consolidated Financial
Statements  an Amendment of ARB No. 51.
 NOTE 3  FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS AND FAIR VALUE
 Financial and Other Derivative Instruments
 Accounting for Derivative Instruments and Hedging
Activities
    16




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Derivatives not designated as hedging instruments under SFAS No. 133
 Balance SheetLocation
    


    Fair 
ValueEmissions
    
    
    
    
    
    
    
    
    Other current liabilities
    
    $
    (10
    )Total derivatives not designated as
hedging instruments under SFAS No. 133
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (10
    )Total derivatives:Current
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (10
    )Noncurrent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
derivatives as reported
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (10
    )
 Location of Gain
    
    
    Gain (Loss)(Loss) Recognized
    
    
    Recognized inin Regulatory
    
    
    Regulatory AssetsAssets /Liabilities
    
    
    / Liabilities onOn Derivative
    
    
    DerivativeFTR and Emissions
    
    Regulatory Asset
    
    $
    (9
    )Regulatory Liability
    
    
    (4
    )Total
    
    
    
    
    
    $
    (13
    )
  Commodity
    
    Number of UnitsEmissions (Tons)
    
    
    6,886Electricity (MWh)
    
    
    9,238,632
 Fair Value
   17




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
    
    Level 1  Consists of unadjusted quoted prices in active markets for identical assets or
liabilities that the Company has the ability to access as of the reporting date.
    
    Level 2  Consists of inputs other than quoted prices included within Level 1 that are
directly observable for the asset or liability or indirectly observable through
corroboration with observable market data.
    
    Level 3  Consists of unobservable inputs for assets or liabilities whose fair value is
estimated based on internally developed models or methodologies using inputs that are
generally less readily observable and supported by little, if any, market activity at the
measurement date. Unobservable inputs are developed based on the best available information
and subject to cost-benefit constraints.
  Net Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    March 31, 2009Assets:Cash equivalents
    
    $
    21
    
    
    $
    
    
    
    $
    
    
    
    $
    21Nuclear decommissioning trusts and other investments
    
    
    445
    
    
    
    299
    
    
    
    
    
    
    
    744Total
    
    $
    466
    
    
    $
    299
    
    
    $
    
    
    
    $
    765Liabilities:Derivative liabilities
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    (10
    )Total
    
    $
    
    
    
    $
    (10
    )
    
    $
    
    
    
    $
    (10
    )Net Assets at March 31, 2009
    
    $
    466
    
    
    $
    289
    
    
    $
    
    
    
    $
    755
  (in Millions)
    
    DerivativesAsset balance as of January 1, 2009
    
    $
    4Changes in fair value recorded in regulatory assets/ liabilities
    
    
    (2
    )Transfer in/out of Level 3
    
    
    (2
    )Asset balance as of March 31, 2009
    
    $
    The amount of total gains included in net income attributed to
the change in unrealized gains (losses) related to assets and
liabilities held at March 31, 2009
    
    $
    1
 Cash Equivalents
  Nuclear Decommissioning Trusts and Other Investments
  18




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Derivative Assets and Liabilities
  NOTE 4  REGULATORY MATTERS
 2009 Electric Rate Case Filing
    
    
    Continued progress toward correcting the existing rate structure to more accurately
reflect the actual cost of providing service to business customers;
    
    Continued application of an adjustment mechanism to enable the Company to address the
costs associated with retail electric customers migrating to and from Detroit Edisons full
service retail electric tariff service;
    
    Application of an uncollectible expense true-up mechanism based on the $87 million
expense level of uncollectible expenses that occurred during the 12 month period ended June
2008;
    
    Continued application of the storm restoration expense recovery mechanism and
modification to the line clearance expense recovery mechanism; and
    
    Implementation of a revenue decoupling mechanism.
  Cost-Based Tariffs for Schools
  19




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Renewable Energy Plan
  Energy Optimization Plan
  Power Supply Cost Recovery Proceedings
 2008 Plan Year 
 2009 Plan Year
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Other
   NOTE 5  SHAREHOLDERS EQUITY
  NOTE 6  LONG-TERM DEBT
 Debt Issuances
  (in Millions)Month Issued
    
    Type
    
    Interest Rate

    
    Maturity

    
    AmountApril
    
    Tax- Exempt Revenue Bonds (1)(2)
    
    
    6.00
    %
    
    
    2036
    
    
    $
    69$
    69
 
 (1)
    
    Detroit Edison Tax-Exempt Revenue Bonds are issued by a public body that loans the proceeds
to Detroit Edison on terms substantially mirroring the Revenue Bonds.(2)
    
    Proceeds were used to refund existing Tax Exempt Revenue Bonds. Debt Retirements and Redemptions
  (in Millions)Month Retired
    
    Type
    
    Interest Rate

    

    Maturity

    
    AmountApril
    
    Tax- Exempt Revenue Bonds (1)
    
    Variable
    
    
    2036
    
    
    $
    69$
    69
 
 (1)
    
    These Tax-Exempt Revenue Bonds were redeemed with the proceeds from the issuance of new
Detroit Edison Tax-Exempt Revenue Bonds. NOTE 7  SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
  21




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NOTE 8  COMMITMENTS AND CONTINGENCIES
 Environmental
 Air
 Water
 Contaminated Sites
 Guarantees
  Labor Contracts
  Purchase Commitments
  22




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Bankruptcies
   Other
   23




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Part II
 
 Item 1.  Legal Proceedings
   
 Item 1A.  Risk Factors
  
 Item 6.
 Exhibits
 ExhibitNumber
    
    DescriptionExhibits filed herewith:4-263
    
    Supplemental Indenture, dated as of March 15, 2009 to Mortgage
and Deed of Trust dated as of October 1, 1924 between The Detroit
Edison Company and The Bank of New York Mellon Trust Company, N. A.,
as trustee, providing for General and Refunding Mortgage Bonds, 2009 Series BT.4-264
    
    Twenty-Ninth Supplemental Indenture, dated as of March 15, 2009 to the Collateral Trust Indenture, dated June 30, 1993 between The Detroit Edison Company and The Bank of New York Mellon Trust Company, N.A., providing for 2009 Series BT 6.00% Senior Notes due 2038.12-33
    
    Computation of Ratio of Earnings to Fixed Charges31-47
    
    Chief Executive Officer Section 302 Form 10-Q Certification31-48
    
    Chief Financial Officer Section 302 Form 10-Q CertificationExhibits incorporated by reference:10-44
    
    Form of The Detroit Edison Company (Detroit Edison) Two-Year Credit Agreement,
dated as of April 29, 2009, by and among Detroit Edison, the lenders
party thereto, Barclays Capital, as Administrative Agent, and
Citibank, N.A., JPMorgan Chase Bank, N.A. and The Royal Bank of Scotland plc, as Co-Syndication Agents (Exhibit 10.1 to Form 8-K dated

April 29, 2009).Exhibits furnished herewith:32-47
    
    Chief Executive Officer Section 906 Form 10-Q Certification32-48
    
    Chief Financial Officer Section 906 Form 10-Q Certification
 24




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SIGNATURE
  THE DETROIT EDISON COMPANY
(Registrant)Date: May 5, 2009
    /s/ PETER B. OLEKSIAKPeter B. OleksiakVice President, Controller and

Chief Accounting Officer 25