<PAGE>
                                                    EXECUTION COPY

                                                                   EXHIBIT 4-235

                                   INDENTURE

                           DATED AS OF August 1, 2003

                                 ---------------

                           THE DETROIT EDISON COMPANY
                                (2000 2ND AVENUE,
                            DETROIT, MICHIGAN 48226)

                                       TO

               BANK ONE, NATIONAL ASSOCIATION (153 W. 51st Street
                            NEW YORK, NEW YORK 10019)

                                   AS TRUSTEE

                                 ---------------

                   SUPPLEMENTAL TO MORTGAGE AND DEED OF TRUST
                           DATED AS OF OCTOBER 1, 1924

                                  PROVIDING FOR

                    (A) GENERAL AND REFUNDING MORTGAGE BONDS,
                                  2003 SERIES A

                                       AND

                         (B) RECORDING AND FILING DATA.

<PAGE>

                               TABLE OF CONTENTS*

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>                                                                                                  <C>
PARTIES.......................................................................................         3
RECITALS......................................................................................         3
         Original Indenture and Supplementals.................................................         3
         Issue of Bonds Under Indenture.......................................................         4
         Bonds Heretofore Issued..............................................................         4
         Reason for Creation of New Series....................................................        10
         Bonds to be 2003 Series A ...........................................................        10
         Further Assurance....................................................................        11
         Authorization of Supplemental Indenture..............................................        11
         Consideration for Supplemental Indenture.............................................        11
PART I. CREATION OF THREE HUNDRED THIRTY-FIFTH SERIES OF BONDS.
GENERAL AND REFUNDING MORTGAGE BONDS, 2003 SERIES A...........................................        11
         Sec. 1.   Terms of Bonds of 2003 Series A............................................        11
                   Release....................................................................        14
         Sec. 2.   Redemption of Bonds of 2003 Series A.......................................        14
         Sec. 3.   Redemption of Bonds of 2003 Series A in event of acceleration of Notes.....        15
         Sec. 4.   Form of Bonds of 2003 Series A.............................................        16
                   Form of Trustee's Certificate..............................................        20
PART II. RECORDING AND FILING DATA............................................................        21
         Recording and Filing of Original Indenture...........................................        21
         Recording and Filing of Supplemental Indentures......................................        21
         Recording of Certificates of Provision for Payment...................................        25
PART III. THE TRUSTEE.........................................................................        25
         Terms and Conditions of Acceptance of Trust by Trustee...............................        25
PART IV. MISCELLANEOUS........................................................................        25
         Confirmation of Section 318(c) of Trust Indenture Act................................        25
         Execution in Counterparts............................................................        26
         Testimonium..........................................................................        26
         Execution............................................................................        27
         Acknowledgment of Execution by Company...............................................        28
         Execution by Trustee.................................................................        29
         Acknowledgment of Execution by Trustee...............................................        30
         Affidavit as to Consideration and Good Faith.........................................        31
</TABLE>

----------
* This Table of Contents shall not have any bearing upon the interpretation of
any of the terms or provisions of this Indenture.

                                       2

<PAGE>

PARTIES.                  SUPPLEMENTAL INDENTURE, dated as of the 1st day of
                          August, in the year 2003, between THE DETROIT EDISON
                          COMPANY, a corporation organized and existing under
                          the laws of the State of Michigan and a public utility
                          (hereinafter called the "Company"), party of the first
                          part, and Bank One, National Association, a trust
                          company organized and existing under the laws of the
                          United States, having its corporate trust office at
                          153 W. 51st Street in the Borough of Manhattan, The
                          City and State of New York, as successor Trustee under
                          the Mortgage and Deed of Trust hereinafter mentioned
                          (hereinafter called the "Trustee"), party of the
                          second part.

ORIGINAL INDENTURE AND    WHEREAS, the Company has heretofore executed and
SUPPLEMENTALS.            delivered its Mortgage and Deed of Trust (hereinafter
                          referred to as the "Original Indenture"), dated as of
                          October 1, 1924, to the Trustee, for the security of
                          all bonds of the Company outstanding thereunder, and
                          pursuant to the terms and provisions of the Original
                          Indenture, indentures dated as of, respectively, June
                          1, 1925, August 1, 1927, February 1, 1931, June 1,
                          1931, October 1, 1932, September 25, 1935, September
                          1, 1936, November 1, 1936, February 1, 1940, December
                          1, 1940, September 1, 1947, March 1, 1950, November
                          15, 1951, January 15, 1953, May 1, 1953, March 15,
                          1954, May 15, 1955, August 15, 1957, June 1, 1959,
                          December 1, 1966, October 1, 1968, December 1, 1969,
                          July 1, 1970, December 15, 1970, June 15, 1971,
                          November 15, 1971, January 15, 1973, May 1, 1974,
                          October 1, 1974, January 15, 1975, November 1, 1975,
                          December 15, 1975, February 1, 1976, June 15, 1976,
                          July 15, 1976, February 15, 1977, March 1, 1977, June
                          15, 1977, July 1, 1977, October 1, 1977, June 1, 1978,
                          October 15, 1978, March 15, 1979, July 1, 1979,
                          September 1, 1979, September 15, 1979, January 1,
                          1980, April 1, 1980, August 15, 1980, August 1, 1981,
                          November 1, 1981, June 30, 1982, August 15, 1982, June
                          1, 1983, October 1, 1984, May 1, 1985, May 15, 1985,
                          October 15, 1985, April 1, 1986, August 15, 1986,
                          November 30, 1986, January 31, 1987, April 1, 1987,
                          August 15, 1987, November 30, 1987, June 15, 1989,
                          July 15, 1989, December 1, 1989, February 15, 1990,
                          November 1, 1990, April 1, 1991, May 1, 1991, May 15,
                          1991, September 1, 1991, November 1, 1991, January 15,
                          1992, February 29, 1992, April 15, 1992, July 15,
                          1992, July 31, 1992, November 30, 1992, December 15,
                          1992, January 1, 1993, March 1, 1993, March 15, 1993,
                          April 1, 1993, April 26, 1993, May 31, 1993, June 30,
                          1993, June 30, 1993, September 15, 1993, March 1,
                          1994, June 15, 1994, August 15, 1994, December 1,
                          1994, August 1, 1995, August 1, 1999, August 15, 1999
                          and January 1, 2000, April 15, 2000, August 1, 2000,
                          March 15, 2001, May 1, 2001, August 15, 2001,
                          September 15, 2001, September 17, 2002, October 15,
                          2002 and December 1, 2002 supplemental to the Original
                          Indenture, have heretofore been entered into between
                          the Company and the Trustee (the Original Indenture
                          and all indentures supplemental thereto together being
                          hereinafter sometimes referred to as the "Indenture");
                          and

ISSUE OF BONDS            WHEREAS, the Indenture provides that said bonds shall
UNDER INDENTURE.          be issuable in one or more series, and makes provision
                          that the rates of interest and dates for the payment
                          thereof, the date of maturity or dates of maturity, if
                          of serial maturity, the terms and rates of optional
                          redemption (if redeemable),

                                       3

<PAGE>

                          the forms of registered bonds without coupons of any
                          series and any other provisions and agreements in
                          respect thereof, in the Indenture provided and
                          permitted, as the Board of Directors may determine,
                          may be expressed in a supplemental indenture to be
                          made by the Company to the Trustee thereunder; and

BONDS HERETOFORE          WHEREAS, bonds in the principal amount of Ten billion
ISSUED.                   five hundred six million six hundred forty-seven
                          thousand dollars ($10,506,647,000) have heretofore
                          been issued under the indenture as follows, viz:

<TABLE>
<S>                 <C>                     <C>
(1)                 Bonds of                -- Principal Amount $26,016,000,
                    Series A
(2)                 Bonds of                -- Principal Amount $23,000,000,
                    Series B
(3)                 Bonds of                -- Principal Amount $20,000,000,
                    Series C
(4)                 Bonds of                -- Principal Amount $50,000,000,
                    Series D
(5)                 Bonds of                -- Principal Amount $15,000,000,
                    Series E
(6)                 Bonds of                -- Principal Amount $49,000,000,
                    Series F
(7)                 Bonds of                -- Principal Amount $35,000,000,
                    Series G
(8)                 Bonds of                -- Principal Amount $50,000,000,
                    Series H
(9)                 Bonds of                -- Principal Amount $60,000,000,
                    Series I
(10)                Bonds of                -- Principal Amount $35,000,000,
                    Series J
(11)                Bonds of                -- Principal Amount $40,000,000,
                    Series K
(12)                Bonds of                -- Principal Amount $24,000,000,
                    Series L
(13)                Bonds of                -- Principal Amount $40,000,000,
                    Series M
(14)                Bonds of                -- Principal Amount $40,000,000,
                    Series N
(15)                Bonds of                -- Principal Amount $60,000,000,
                    Series O
(16)                Bonds of                -- Principal Amount $70,000,000,
                    Series P
(17)                Bonds of                -- Principal Amount $40,000,000,
                    Series Q
(18)                Bonds of                -- Principal Amount $50,000,000,
                    Series W
(19)                Bonds of                -- Principal Amount $100,000,000,
                    Series AA
(20)                Bonds of                -- Principal Amount $50,000,000,
                    Series BB
(21)                Bonds of                -- Principal Amount $50,000,000,
                    Series CC
</TABLE>

                                       4

<PAGE>

<TABLE>
<S>                 <C>                     <C>
(22)                Bonds of                -- Principal Amount 100,000,000,
                    Series UU
(23-31)             Bonds of                -- Principal Amount $14,305,000,
                    Series DDP
                    Nos. 1-9
(32-45)             Bonds of                -- Principal Amount $45,600,000,
                    Series FFR
                    Nos. 1-14
(46-67)             Bonds of                -- Principal Amount $42,300,000,
                    Series GGP
                    Nos. 1-22
(68)                Bonds of                -- Principal Amount $50,000,000,
                    Series HH
(69-90)             Bonds of                -- Principal Amount $3,750,000,
                    Series IIP
                    Nos. 1-22
(91-98)             Bonds of                -- Principal Amount $6,850,000,
                    Series JJP
                    Nos. 1-8
(99-107)            Bonds of                -- Principal Amount $34,890,000,
                    Series KKP
                    Nos. 1-9
(108-122)           Bonds of                -- Principal Amount $8,850,000,
                    Series LLP
                    Nos. 1-15
(123-143)           Bonds of                -- Principal Amount $47,950,000,
                    Series NNP
                    Nos. 1-21
(144-161)           Bonds of                -- Principal Amount $18,880,000,
                    Series OOP
                    Nos. 1-18
(162-180)           Bonds of                -- Principal Amount $13,650,000,
                    Series QQP
                    Nos. 1-19
(181-195)           Bonds of                -- Principal Amount $3,800,000,
                    Series TTP
                    Nos. 1-15
(196)               Bonds of 1980           -- Principal Amount $50,000,000,
                    Series A
(197-221)           Bonds of 1980           -- Principal Amount $35,000,000,
                    Series CP
                    Nos. 1-25
(222-232)           Bonds of 1980           -- Principal Amount $10,750,000,
                    Series DP
                    Nos. 1-11
(233-248)           Bonds of 1981           -- Principal Amount 124,000,000,
                    Series AP
                    Nos. 1-16
(249)               Bonds of 1985           -- Principal Amount $35,000,000,
                    Series A
(250)               Bonds of 1985           -- Principal Amount $50,000,000,
                    Series B
(251)               Bonds of                -- Principal Amount $70,000,000,
                    Series PP
</TABLE>

                                       5

<PAGE>

<TABLE>
<S>                 <C>                     <C>
(252)               Bonds of                -- Principal Amount $70,000,000,
                    Series RR
(253)               Bonds of                -- Principal Amount $50,000,000,
                    Series EE
(254-255)           Bonds of                -- Principal Amount $5,430,000,
                    Series MMP and
                    MMP No. 2
(256)               Bonds of                -- Principal Amount $75,000,000,
                    Series T
(257)               Bonds of                -- Principal Amount $75,000,000,
                    Series U
(258)               Bonds of 1986           -- Principal Amount 100,000,000,
                    Series B
(259)               Bonds of 1987           -- Principal Amount 250,000,000,
                    Series D
(260)               Bonds of 1987           -- Principal Amount 150,000,000,
                    Series E
(261)               Bonds of 1987           -- Principal Amount 225,000,000,
                    Series C
(262)               Bonds of                -- Principal Amount 100,000,000,
                    Series V
(263)               Bonds of                -- Principal Amount 150,000,000,
                    Series SS
(264)               Bonds of 1980           -- Principal Amount 100,000,000,
                    Series B
(265)               Bonds of 1986           -- Principal Amount 200,000,000,
                    Series C
(266)               Bonds of 1986           -- Principal Amount 200,000,000,
                    Series A
(267)               Bonds of 1987           -- Principal Amount 175,000,000,
                    Series B
(268)               Bonds of                -- Principal Amount 100,000,000,
                    Series X
(269)               Bonds of 1987           -- Principal Amount 200,000,000,
                    Series F
(270)               Bonds of 1987           -- Principal Amount 300,000,000,
                    Series A
(271)               Bonds of                -- Principal Amount $60,000,000,
                    Series Y
(272)               Bonds of                -- Principal Amount 100,000,000,
                    Series Z
(273)               Bonds of 1989           -- Principal Amount 300,000,000,
                    Series A
(274)               Bonds of 1984           -- Principal Amount $2,400,000,
                    Series AP
(275)               Bonds of 1984           -- Principal Amount $7,750,000,
                    Series BP
(276)               Bonds of                -- Principal Amount 100,000,000,
                    Series R
(277)               Bonds of                -- Principal Amount 150,000,000,
                    Series S
(278)               Bonds of 1993           -- Principal Amount 100,000,000,
                    Series D
</TABLE>

                                       6

<PAGE>

<TABLE>
<S>                 <C>                     <C>
(279)               Bonds of 1992           -- Principal Amount $50,000,000,
                    Series E
(280)               Bonds of 1993           -- Principal Amount $50,000,000,
                    Series B
(281)               Bonds of 1989           -- Principal Amount $66,565,000,
                    Series BP
(282)               Bonds of 1990           -- Principal Amount $194,649,000
                    Series A
(283)               Bonds of 1993           -- Principal Amount $225,000,000
                    Series G
(284)               Bonds of 1993           -- Principal Amount $160,000,000
                    Series K
(285)               Bonds of 1991           -- Principal Amount $41,480,000
                    Series EP
(286)               Bonds of 1993           -- Principal Amount $50,000,000
                    Series H
(287)               Bonds of 1999           -- Principal Amount $40,000,000
                    Series D
(288)               Bonds of 1991           -- Principal Amount $98,375,000
                    Series FP
(289)               Bonds of 1992           -- Principal Amount $20,975,000
                    Series BP
(290)               Bonds of 1992           -- Principal Amount $300,000,000
                    Series D
(291)               Bonds of 1992           -- Principal Amount $35,000,000
                    Series CP
(292)               Bonds of 1993           -- Principal Amount $225,000,000
                    Series C
(293)               Bonds of 1993           -- Principal Amount $400,000,000
                    Series E
(294)               Bonds of 1993           -- Principal Amount $300,000,000
                    Series J
</TABLE>

                          all of which have either been retired and cancelled,
                          or no longer represent obligations of the Company,
                          having been called for redemption and funds necessary
                          to effect the payment, redemption and retirement
                          thereof having been deposited with the Trustee as a
                          special trust fund to be applied for such purpose;

                          (295-300) Bonds of Series KKP Nos. 10-15 in the
                          principal amount of One hundred seventy-nine million
                          five hundred ninety thousand dollars ($179,590,000),
                          of which one hundred twenty-four million two hundred
                          ninety thousand dollars ($124,290,000) principal
                          amount have heretofore been retired and Fifty-five
                          million three hundred thousand dollars ($55,300,000)
                          principal amount are outstanding at the date hereof;

                                       7

<PAGE>

                          (301) Bonds of 1990 Series B in the principal amount
                          of Two hundred fifty-six million nine hundred
                          thirty-two thousand dollars ($256,932,000) of which
                          One hundred thirty-three million two hundred
                          twenty-four thousand dollars ($133,224,000) principal
                          amount havetofore been retired and One hundred
                          twenty-three million seven hundred eight thousand
                          dollars ($123,708,000) principal amount are
                          outstanding at the date hereof;

                          (302) Bonds of 1990 Series C in the principal amount
                          of Eighty-five million four hundred seventy-five
                          thousand dollars ($85,475,000) of which Forty-seven
                          million eight hundred sixty-six thousand dollars
                          ($47,866,000) principal amount have heretofore been
                          retired and Thirty-seven million six hundred nine
                          thousand dollars ($37,609,000) principal amount are
                          outstanding at the date hereof;

                          (303) Bonds of 1991 Series AP in the principal amount
                          of Thirty-two million three hundred seventy-five
                          thousand dollars ($32,375,000), all of which are
                          outstanding at the date hereof;

                          (304) Bonds of 1991 Series BP in the principal amount
                          of Twenty-five million nine hundred ten thousand
                          dollars ($25,910,000), all of which are outstanding at
                          the date hereof;

                          (305) Bonds of 1991 Series CP in the principal amount
                          of Thirty-two million eight hundred thousand dollars
                          ($32,800,000), all of which are outstanding at the
                          date hereof;

                          (306) Bonds of 1991 Series DP in the principal amount
                          of Thirty-seven million six hundred thousand dollars
                          ($37,600,000), all of which are outstanding at the
                          date hereof;

                          (307) Bonds of 1992 Series AP in the principal amount
                          of Sixty-six million dollars ($66,000,000), all of
                          which are outstanding at the date hereof;

                          (308) Bonds of 1989 Series BP No. 2 in the principal
                          amount of Thirty-six million dollars ($36,000,000),
                          all of which are outstanding at the date hereof;

                          (309) Bonds of 1993 Series FP in the principal amount
                          of Five million six hundred eighty-five thousand
                          dollars ($5,685,000), all of which are outstanding at
                          the date hereof;

                          (310) Bonds of 1993 Series IP in the principal amount
                          of Five million eight hundred twenty-five thousand
                          dollars ($5,825,000), all of which are outstanding at
                          the date hereof;

                          (311) Bonds of 1993 Series AP in the principal amount
                          of Sixty-five million dollars ($65,000,000), all of
                          which are outstanding at the date hereof;

                                       8

<PAGE>

                          (312) Bonds of 1994 Series AP in the principal amount
                          of Seven million five hundred thirty-five thousand
                          dollars ($7,535,000), all of which are outstanding at
                          the date hereof;

                          (313) Bonds of 1994 Series BP in the principal amount
                          of Twelve million nine hundred thirty-five thousand
                          dollars ($12,935,000), all of which are outstanding at
                          the date hereof;

                          (314) Bonds of 1994 Series C in the principal amount
                          of Two hundred million dollars ($200,000,000), of
                          which One hundred million dollars ($100,000,000)
                          principal amount have heretofore been retired and One
                          hundred million dollars ($100,000,000) principal
                          amount are outstanding at the date hereof;

                          (315) Bonds of 1994 Series DP in the principal amount
                          of Twenty-three million seven hundred thousand dollars
                          ($23,700,000), all of which are outstanding at the
                          date hereof;

                          (316) Bonds of 1995 Series AP in the principal amount
                          of Ninety-seven million dollars ($97,000,000), all of
                          which are outstanding at the date hereof;

                          (317) Bonds of 1995 Series BP in the principal amount
                          of Twenty-two million, one hundred seventy-five
                          thousand dollars ($22,175,000), all of which are
                          outstanding at the date hereof;

                          (318) Bonds of 1999 Series AP in the principal amount
                          of One hundred eighteen million three hundred sixty
                          thousand dollars ($118,360,000), all of which are
                          outstanding at the date hereof;

                          (319) Bonds of 1999 Series BP in the principal amount
                          of Thirty-nine million seven hundred forty-five
                          thousand dollars ($39,745,000), all of which are
                          outstanding of the date hereof;

                          (320) Bonds of 1999 Series CP in the principal amount
                          of Sixty-six million five hundred sixty-five thousand
                          dollars ($66,565,000), all of which are outstanding at
                          the date hereof;

                          (321) Bonds of 2000 Series A in the principal amount
                          of Two Hundred Twenty million dollars ($220,000,000)
                          of which One hundred forty-three million eight hundred
                          ninety-five thousand dollars ($143,895,000) principal
                          amount have heretofore been retired and seventy-six
                          million one hundred five thousand dollars
                          ($76,105,000) principal amount are outstanding at the
                          date hereof;

                          (322) Bonds of 2000 Series B in the principal amount
                          of Fifty million seven hundred forty-five thousand
                          dollars ($50,745,000), all of which are outstanding at
                          the date hereof;

                          (323) Bonds of 2001 Series AP in the principal amount
                          of Thirty-one million ($31,000,000), all of which are
                          outstanding at the date hereof;

                          (324) Bonds of 2001 Series BP in the principal amount
                          of Eighty-two million three hundred fifty thousand
                          ($82,350,000) all of which are outstanding at the date
                          hereof;

                                       9

<PAGE>

                          (325) Bonds of 2001 Series CP in the principal amount
                          of One hundred thirty-nine million eight hundred
                          fifty-five thousand dollars ($139,855,000) all of
                          which are outstanding at the date hereof;

                          (326) Bonds of 2001 Series D in the principal amount
                          of Two hundred million dollars ($200,000,000) all of
                          which are outstanding at the date hereof;

                          (327) Bonds of 2001 Series E in the principal amount
                          of Five hundred million dollars ($500,000,000) all of
                          which are outstanding at the date hereof;

                          (328) Bonds of 2002 Series A in the principal amount
                          of Two hundred twenty-fifty million dollars
                          ($225,000,000) all of which are outstanding at the
                          date hereof;

                          (329) Bonds of 2002 Series B in the principal amount
                          of Two hundred twenty-fifty million dollars
                          ($225,000,000) all of which are outstanding at the
                          date hereof;

                          (333) Bonds of 2002 Series C in the principal amount
                          of Sixty-four million three hundred thousand dollars
                          ($64,300,000) all of which are outstanding at the date
                          hereof;

                          (334) Bonds of 2002 Series D in the principal amount
                          of Fifty-five million nine hundred seventy-five
                          thousand dollars ($55,975,000) all of which are
                          outstanding at the date hereof; and

                          accordingly, the Company has issued and has presently
                          outstanding Two billion six hundred sixty-two million
                          one hundred fifty-seven thousand dollars
                          ($2,662,157,000) aggregate principal amount of its
                          General and Refunding Mortgage Bonds (the "Bonds") at
                          the date hereof; and

REASON FOR CREATION OF    WHEREAS, the Company intends to issue a series of
NEW SERIES.               Notes under the Note Indenture herein referred to,
                          and, pursuant to the Note Indenture, in order to
                          secure (a) its obligations to XL Capital Assurance
                          Inc., an insurance company incorporated under the laws
                          of the State of New York ("XLCA"), under the Insurance
                          Agreement dated August 28, 2003 (the "2003 A Insurance
                          Agreement") between the Company and XLCA relating to
                          the financial guaranty insurance policy issued by XLCA
                          with respect to the Michigan Strategic Fund Limited
                          Obligation Revenue and Refunding Revenue Bonds (The
                          Detroit Edison Company Exempt Facilities Project),
                          Series 2003A (the "2003A Bonds"), issued under the
                          Trust Indenture dated as of August 1, 2003 (the "2003A
                          Bond Indenture") between Michigan Strategic Fund and
                          Bank One Trust Company, National Association, as
                          trustee, and the Company has agreed to issue its
                          General and Refunding Mortgage Bonds under the
                          Indenture in order further to secure its obligations
                          with respect to such Notes; and

BONDS TO BE 2003          WHEREAS, for such purpose the Company desires by this
SERIES A.                 Supplemental Indenture to create a new series of
                          bonds, to be designated "General and

                                       10

<PAGE>

                          Refunding Mortgage Bonds, 2003 Series A" in the
                          aggregate principal amount of forty-nine million
                          dollars ($49,000,000) to be authenticated and
                          delivered pursuant to Section 8 of Article III of the
                          Indenture; and

FURTHER ASSURANCE.        WHEREAS, the Original Indenture, by its terms,
                          includes in the property subject to the lien thereof
                          all of the estates and properties, real, personal and
                          mixed, rights, privileges and franchises of every
                          nature and kind and wheresoever situate, then or
                          thereafter owned or possessed by or belonging to the
                          Company or to which it was then or at any time
                          thereafter might be entitled in law or in equity
                          (saving and excepting, however, the property therein
                          specifically excepted or released from the lien
                          thereof), and the Company therein covenanted that it
                          would, upon reasonable request, execute and deliver
                          such further instruments as may be necessary or proper
                          for the better assuring and confirming unto the
                          Trustee all or any part of the trust estate, whether
                          then or thereafter owned or acquired by the Company
                          (saving and excepting, however, property specifically
                          excepted or released from the lien thereof); and

AUTHORIZATION OF          WHEREAS, the Company in the exercise of the powers and
SUPPLEMENTAL INDENTURE.   authority conferred upon and reserved to it under and
                          by virtue of the provisions of the Indenture, and
                          pursuant to resolutions of its Board of Directors has
                          duly resolved and determined to make, execute and
                          deliver to the Trustee a supplemental indenture in the
                          form hereof for the purposes herein provided; and

                          WHEREAS, all conditions and requirements necessary to
                          make this Supplemental Indenture a valid and legally
                          binding instrument in accordance with its terms have
                          been done, performed and fulfilled, and the execution
                          and delivery hereof have been in all respects duly
                          authorized;

CONSIDERATION FOR         NOW, THEREFORE, THIS INDENTURE WITNESSETH: That The
SUPPLEMENTAL INDENTURE.   Detroit Edison Company, in consideration of the
                          premises and of the covenants contained in the
                          Indenture and of the sum of One Dollar ($1.00) and
                          other good and valuable consideration to it duly paid
                          by the Trustee at or before the ensealing and delivery
                          of these presents, the receipt whereof is hereby
                          acknowledged, hereby covenants and agrees to and with
                          the Trustee and its successors in the trusts under the
                          Original Indenture and in said indentures supplemental
                          thereto as follows:

                                     PART I.
             CREATION OF THREE HUNDRED THIRTY-FIFTH SERIES OF BONDS,
               GENERAL AND REFUNDING MORTGAGE BONDS, 2003 SERIES A

TERMS OF BONDS OF 2003           SECTION 1. The Company hereby creates the three
SERIES A.                 hundred thirty-fifth series of bonds to be issued
                          under and secured by the Original Indenture as amended
                          to date and as further amended by this Supplemental
                          Indenture, to be designated, and to be distinguished
                          from the bonds of all other series, by the title
                          "General and Refunding Mortgage Bonds, 2003 Series A"
                          (elsewhere herein referred to as the "bonds of 2003
                          Series A"). The aggregate principal amount of bonds of

                                       11
<PAGE>

                          2003 Series A shall be limited to forty-nine million
                          dollars ($49,000,000), except as provided in Sections
                          7 and 13 of Article II of the Original Indenture with
                          respect to exchanges and replacements of bonds.

                                 Subject to the release provisions set forth
                          below, each bond of 2003 Series A is to be irrevocably
                          assigned to, and registered in the name of, Bank One
                          Trust Company, National Association, as trustee, or a
                          successor trustee (said trustee or any successor
                          trustee being hereinafter referred to as the "Note
                          Indenture Trustee"), under the collateral trust
                          indenture, dated as of June 30, 1993 (the "Note
                          Indenture"), as supplemented, between the Note
                          Indenture Trustee and the Company, to secure payment
                          of the Company's 5 1/2 % Senior Notes due 2030 (for
                          purposes of this Part, the "Notes").

                                 The bonds of 2003 Series A shall be issued as
                          registered bonds without coupons in denominations of a
                          multiple of $1,000. The bonds of 2003 Series A shall
                          be issued in the aggregate principal amount of
                          $49,000,000, shall mature on June 1, 2030 (subject to
                          earlier redemption or release) and shall bear interest
                          at the rate of 5 1/2 % per annum, payable semiannually
                          in arrears on June 1 and December 1 of each year
                          (commencing December 1, 2003), until the principal
                          thereof shall have become due and payable and
                          thereafter until the Company's obligation with respect
                          to the payment of said principal shall have been
                          discharged as provided in the Indenture.

                                 The bonds of 2003 Series A shall be payable as
                          to principal, premium, if any, and interest as
                          provided in the Indenture, but only to the extent and
                          in the manner herein provided. The bonds of 2003
                          Series A shall be payable, both as to principal and
                          interest, at the office or agency of the Company in
                          the Borough of Manhattan, The City and State of New
                          York, in any coin or currency of the United States of
                          America which at the time of payment is legal tender
                          for public and private debts.

                                 Except as provided herein, each bond of 2003
                          Series A shall be dated the date of its authentication
                          and interest shall be payable on the principal
                          represented thereby from the June 1 or December 1 next
                          preceding the date thereof to which interest has been
                          paid on bonds of 2003 Series A, unless the bond is
                          authenticated on a date to which interest has been
                          paid, in which case interest shall be payable from the
                          date of authentication, or unless the date of
                          authentication is prior to December 1, 2003, in which
                          case interest shall be payable from August 28, 2003.

                                 The bonds of 2003 Series A in definitive form
                          shall be, at the election of the Company, fully
                          engraved or shall be lithographed or printed in
                          authorized denominations as aforesaid and numbered 1
                          and upwards (with such further designation as may be
                          appropriate and desirable to indicate by such
                          designation the form, series and denomination of bonds
                          of 2003 Series A). Until bonds of 2003 Series A in
                          definitive form are ready for delivery, the Company
                          may execute, and upon its request in writing the
                          Trustee shall authenticate and

                                       12

<PAGE>

                          deliver in lieu thereof, bonds of 2003 Series A in
                          temporary form, as provided in Section 10 of Article
                          II of the Indenture. Temporary bonds of 2003 Series A,
                          if any, may be printed and may be issued in authorized
                          denominations in substantially the form of definitive
                          bonds of 2003 Series A, but without a recital of
                          redemption prices and with such omissions, insertions
                          and variations as may be appropriate for temporary
                          bonds, all as may be determined by the Company.

                                 Interest on any bond of 2003 Series A that is
                          payable on any interest payment date and is punctually
                          paid or duly provided for shall be paid to the person
                          in whose name that bond, or any previous bond to the
                          extent evidencing the same debt as that evidenced by
                          that bond, is registered at the close of business on
                          the regular record date for such interest, which
                          regular record date shall be the fifteenth calendar
                          day (whether or not a business day) next preceding
                          such interest payment date. If the Company shall
                          default in the payment of the interest due on any
                          interest payment date on the principal represented by
                          any bond of 2003 Series A, such defaulted interest
                          shall forthwith cease to be payable to the registered
                          holder of that bond on the relevant regular record
                          date by virtue of his having been such holder, and
                          such defaulted interest may be paid to the registered
                          holder of that bond (or any bond or bonds of 2003
                          Series A issued upon transfer or exchange thereof) on
                          the date of payment of such defaulted interest or, at
                          the election of the Company, to the person in whose
                          name that bond (or any bond or bonds of 2003 Series A
                          issued upon transfer or exchange thereof) is
                          registered on a subsequent record date established by
                          notice given by mail by or on behalf of the Company to
                          the holders of bonds of 2003 Series A not less than
                          ten (10) days preceding such subsequent record date,
                          which subsequent record date shall be at least five
                          (5) days prior to the payment date of such defaulted
                          interest.

                                 Bonds of 2003 Series A shall not be assignable
                          or transferable except as may be set forth under
                          Section 405 of the Note Indenture or in the
                          supplemental indenture relating to the Notes, or,
                          subject to compliance with applicable law, as may be
                          involved in the course of the exercise of rights and
                          remedies consequent upon an Event of Default under the
                          Note Indenture. Any such transfer shall be made upon
                          surrender thereof for cancellation at the office or
                          agency of the Company in the Borough of Manhattan, The
                          City and State of New York, together with a written
                          instrument of transfer (if so required by the Company
                          or by the Trustee) in form approved by the Company
                          duly executed by the holder or by its duly authorized
                          attorney. Bonds of 2003 Series A shall in the same
                          manner be exchangeable for a like aggregate principal
                          amount of bonds of 2003 Series A upon the terms and
                          conditions specified herein and in Section 7 of
                          Article II of the Indenture. The Company waives its
                          rights under Section 7 of Article II of the Indenture
                          not to make exchanges or transfers of bonds of 2003
                          Series A during any period of ten days next preceding
                          any redemption date for such bonds.

                                 Bonds of 2003 Series A, in definitive and
                          temporary form, may bear such legends as may be
                          necessary to comply with any law or with any rules or
                          regulations made pursuant thereto or as may be
                          specified in the Note Indenture.

                                       13

<PAGE>

                                 Upon payment of the principal or premium, if
                          any, or interest on the Notes, whether at maturity or
                          prior to maturity by redemption or otherwise, or upon
                          provision for the payment thereof having been made in
                          accordance with Article V of the Note Indenture, bonds
                          of 2003 Series A in a principal amount equal to the
                          principal amount of such Notes, shall, to the extent
                          of such payment of principal, premium or interest, be
                          deemed fully paid and the obligation of the Company
                          thereunder to make such payment shall forthwith cease
                          and be discharged, and, in the case of the payment of
                          principal and premium, if any, such bonds shall be
                          surrendered for cancellation or presented for
                          appropriate notation to the Trustee.

                                 In the event the Company desires to provide for
                          the payment of bonds of 2003 Series A, in lieu of
                          defeasing such bonds in accordance with the Indenture,
                          it shall either redeem an equal principal amount of
                          2003A Bonds or take such action as shall be required
                          by Section 2.04 of the 2003A Bond Indenture to defease
                          an equal principal amount of the 2003A Bonds. Pursuant
                          to Section 2.03(c) of the Note Indenture, such
                          redemption or defeasance shall result in the discharge
                          of the Company's obligation with respect to such Notes
                          and the cancellation thereof which, in accordance with
                          the preceding paragraph, shall result in the discharge
                          of the Company's obligation with respect to the
                          applicable bonds of 2003 Series A and cancellation
                          thereof.

                                 Any amount payable by the Company in respect of
                          principal of bonds of 2003 Series A, whether at
                          maturity or prior to maturity by redemption or upon
                          acceleration or otherwise, in a circumstance where
                          there has not been a corresponding payment of
                          principal of 2003A Bonds shall be applied
                          simultaneously to the redemption or defeasance of an
                          equal principal amount of 2003A Bonds in accordance
                          with the 2003A Bond Indenture. In the event the amount
                          so paid is insufficient to provide for such redemption
                          or defeasance, the Company shall pay such additional
                          amount as shall be necessary to make up for the
                          deficiency.

RELEASE.                         From and after the Release Date (as defined in
                          the Note Indenture), the bonds of 2003 Series A shall
                          be deemed fully paid, satisfied and discharged and the
                          obligation of the Company thereunder shall be
                          terminated. On the Release Date, the bonds of 2003
                          Series A shall be surrendered to and canceled by the
                          Trustee. The Company covenants and agrees that, prior
                          to the Release Date, it will not take any action that
                          would cause the outstanding principal amount of the
                          bonds of 2003 Series A to be less than the then
                          outstanding principal amount of the Notes.

REDEMPTION OF                    SECTION 2. Bonds of 2003 Series A shall be
BONDS OF 2003 SERIES A.   redeemed on the respective dates and in the respective
                          principal amounts which correspond to the redemption
                          dates for, and the principal amounts to be redeemed
                          of, the Notes.

                                       14

<PAGE>

                                 In the event the Company elects to redeem any
                          Notes prior to maturity in accordance with the
                          provisions of the Note Indenture and the 2003A
                          Insurance Agreement, the Company shall on the same
                          date redeem bonds of 2003 Series A in principal
                          amounts and at redemption prices corresponding to the
                          Notes so redeemed. The Company agrees to give the
                          Trustee notice of any such redemption of bonds of 2003
                          Series A on the same date as it gives notice of
                          redemption of Notes to the Note Indenture Trustee.

REDEMPTION OF                    SECTION 3. In the event of an Event of Default
BONDS OF 2003 SERIES A IN under the Note Indenture and the acceleration of all
EVENT OF ACCELERATION OF  Notes, the bonds of 2003 Series A shall be redeemable
NOTES OR IN EVENT OF      in whole upon receipt by the Trustee of a written
REDEMPTION OF NOTES UPON  demand (hereinafter called a "Redemption Demand") from
ACCELERATION OF 2003A     the Note Indenture Trustee stating that there has
BONDS.                    occurred under the Note Indenture both an Event of
                          Default and a declaration of acceleration of payment
                          of principal, accrued interest and premium, if any, on
                          the Notes, specifying the last date to which interest
                          on the Notes has been paid (such date being
                          hereinafter referred to as the "Initial Interest
                          Accrual Date") and demanding redemption of the bonds
                          of said series. In addition, in the event of a
                          required redemption of the Notes upon demand of XLCA
                          prior to the Release Date upon a declaration of
                          acceleration of the payment of the 2003A Bonds, the
                          bonds of 2003 Series A shall be redeemable in whole
                          upon receipt by the Trustee of a Redemption Demand
                          from the Note Indenture Trustee stating that such
                          redemption of the Notes is required, stating that the
                          redemption price was not paid when due and demanding
                          redemption of the bonds of the 2003 Series A. The
                          Trustee shall, within five days after receiving such
                          Redemption Demand, mail a copy thereof to the Company
                          marked to indicate the date of its receipt by the
                          Trustee. Promptly upon receipt by the Company of such
                          copy of a Redemption Demand, the Company shall fix a
                          date on which it will redeem the bonds of said series
                          so demanded to be redeemed (hereinafter called the
                          "Demand Redemption Date"). Notice of the date fixed as
                          the Demand Redemption Date shall be mailed by the
                          Company to the Trustee at least ten days prior to such
                          Demand Redemption Date. The date to be fixed by the
                          Company as and for the Demand Redemption Date may be
                          any date up to and including the earlier of (x) the
                          60th day after receipt by the Trustee of the
                          Redemption Demand or (y) the maturity date of such
                          bonds first occurring following the 20th day after the
                          receipt by the Trustee of the Redemption Demand;
                          provided, however, that if the Trustee shall not have
                          received such notice fixing the Demand Redemption Date
                          on or before the 10th day preceding the earlier of
                          such dates, the Demand Redemption Date shall be deemed
                          to be the earlier of such dates. The Trustee shall
                          mail notice of the Demand Redemption Date (such notice
                          being hereinafter called the "Demand Redemption
                          Notice") to the Note Indenture Trustee not more than
                          ten nor less than five days prior to the Demand
                          Redemption Date.

                                 Each bond of 2003 Series A shall be redeemed by
                          the Company on the Demand Redemption Date therefore
                          upon surrender thereof by the Note Indenture Trustee
                          to the Trustee at a redemption price equal to the
                          principal amount thereof plus accrued interest thereon
                          at the rate specified for such bond from the Initial
                          Interest

                                       15

<PAGE>

                          Accrual Date to the Demand Redemption Date plus an
                          amount equal to the aggregate premium, if any, due and
                          payable on such Demand Redemption Date on all Notes;
                          provided, however, that in the event of a receipt by
                          the Trustee of a notice that, pursuant to Section 602
                          of the Note Indenture, the Note Indenture Trustee has
                          terminated proceedings to enforce any right under the
                          Note Indenture, then any Redemption Demand shall
                          thereby be rescinded by the Note Indenture Trustee,
                          and no Demand Redemption Notice shall be given, or, if
                          already given, shall be automatically annulled; but no
                          such rescission or annulment shall extend to or affect
                          any subsequent default or impair any right consequent
                          thereon.

                                 Anything herein contained to the contrary
                          notwithstanding, the Trustee is not authorized to take
                          any action pursuant to a Redemption Demand and such
                          Redemption Demand shall be of no force or effect,
                          unless it is executed in the name of the Note
                          Indenture Trustee by its President or one of its Vice
                          Presidents.

FORM OF BONDS OF                 SECTION 4. The bonds of 2003 Series A and the
2003 SERIES A.            form of Trustee's Certificate to be endorsed on such
                          bonds shall be substantially in the following forms,
                          respectively:

                           THE DETROIT EDISON COMPANY
                       GENERAL AND REFUNDING MORTGAGE BOND
                                  2003 SERIES A

                                 Notwithstanding any provisions hereof or in the
                          Indenture, this bond is not assignable or transferable
                          except as may be required to effect a transfer to any
                          successor trustee under the Collateral Trust
                          Indenture, dated as of June 30, 1993, as amended, and
                          as further supplemented as of August 1, 2003, between
                          The Detroit Edison Company and Bank One Trust Company,
                          National Association, as Note Trustee, or, subject to
                          compliance with applicable law, as may be involved in
                          the course of the exercise of rights and remedies
                          consequent upon an Event of Default under said
                          Indenture.

                               $49,000,000                    No. R-1

                                 THE DETROIT EDISON COMPANY (hereinafter called
                          the "Company"), a corporation of the State of
                          Michigan, for value received, hereby promises to pay
                          to Bank One Trust Company, National Association, as
                          Note Trustee, or registered assigns, at the Company's
                          office or agency in the Borough of Manhattan, The City
                          and State of New York, the principal sum of Forty-Nine
                          Million Dollars ($49,000,000) in lawful money of the
                          United States of America on June 1, 2030 (subject to
                          earlier redemption or release) and interest thereon at
                          the rate of 5 1/2 % per annum, in like lawful money,
                          from August 28, 2003, and after the first payment of
                          interest on bonds of this Series has been made or
                          otherwise provided for, from the most recent date to
                          which interest has been paid or otherwise provided
                          for, semi-annually on June 1 and December 1 of each
                          year (commencing

                                       16

<PAGE>

                          December 1, 2003), until the Company's obligation with
                          respect to payment of said principal shall have been
                          discharged, all as provided, to the extent and in the
                          manner specified in the Indenture hereinafter
                          mentioned and in the supplemental indenture pursuant
                          to which this bond has been issued.

                                 Under a Collateral Trust Indenture, dated as of
                          June 30, 1993, as amended and as further supplemented
                          as of August 1, 2003 (hereinafter called the "Note
                          Indenture"), between the Company and Bank One Trust
                          Company, National Association, as Note Trustee
                          (hereinafter called the "Note Indenture Trustee"), the
                          Company has issued its 5 1/2% Senior Notes due 2030
                          (the "Notes"). This bond was originally issued to the
                          Note Indenture Trustee so as to secure the payment of
                          the Notes. Payments of principal of, or premium, if
                          any, or interest on, the Notes shall constitute like
                          payments on this bond as further provided herein and
                          in the supplemental indenture pursuant to which this
                          bond has been issued.

                                 The Notes were issued to XL Capital Assurance
                          Inc., an insurance company incorporated under New York
                          law ("XLCA"), to secure the Company's obligations to
                          XLCA under that certain Insurance Agreement dated
                          August , 2003 (the "Insurance Agreement") between the
                          Company and XLCA relating to Financial Guaranty
                          Insurance Policy No. CA0678A issued by XLCA with
                          respect to the Michigan Strategic Fund Limited
                          Obligation Refunding Revenue Bonds (The Detroit Edison
                          Company Exempt Facilities Project), Series 2003A (the
                          "2003A Bonds") which are issued under the Trust
                          Indenture dated as of August 1, 2003 (the "2003A Bond
                          Indenture") between Michigan Strategic Fund and Bank
                          One Trust Company, National Association, as trustee

                                 This bond is one of an authorized issue of
                          bonds of the Company, unlimited as to amount except as
                          provided in the Indenture hereinafter mentioned or any
                          indentures supplemental thereto, and is one of a
                          series of General and Refunding Mortgage Bonds known
                          as 2003 Series A, limited to an aggregate principal
                          amount of $49,000,000, except as otherwise provided in
                          the Indenture hereinafter mentioned. This bond and all
                          other bonds of said series are issued and to be issued
                          under, and are all equally and ratably secured (except
                          insofar as any sinking, amortization, improvement or
                          analogous fund, established in accordance with the
                          provisions of the Indenture hereinafter mentioned, may
                          afford additional security for the bonds of any
                          particular series and except as provided in Section 3
                          of Article VI of said Indenture) by an Indenture,
                          dated as of October 1, 1924, duly executed by the
                          Company to Bank One, National Association, as
                          successor in interest to Bankers Trust Company, a
                          corporation organized under the laws of the Untied
                          States, as Trustee, to which Indenture and all
                          indentures supplemental thereto (including the
                          Supplemental Indenture dated as of August 1, 2003)
                          reference is hereby made for a description of the
                          properties and franchises mortgaged and conveyed, the
                          nature and extent of the security, the terms and
                          conditions upon which the bonds are issued and under
                          which additional bonds may be issued, and the rights
                          of the holders of the

                                       17

<PAGE>

                          bonds and of the Trustee in respect of such security
                          (which Indenture and all indentures supplemental
                          thereto, including the Supplemental Indenture dated as
                          of August 1, 2003, are hereinafter collectively called
                          the "Indenture"). As provided in the Indenture, said
                          bonds may be for various principal sums and are
                          issuable in series, which may mature at different
                          times, may bear interest at different rates and may
                          otherwise vary as in said Indenture provided. With the
                          consent of the Company and to the extent permitted by
                          and as provided in the Indenture, the rights and
                          obligations of the Company and of the holders of the
                          bonds and the terms and provisions of the Indenture,
                          or of any indenture supplemental thereto, may be
                          modified or altered in certain respects by affirmative
                          vote of at least eighty-five percent (85%) in amount
                          of the bonds then outstanding, and, if the rights of
                          one or more, but less than all, series of bonds then
                          outstanding are to be affected by the action proposed
                          to be taken, then also be affirmative vote of at least
                          eighty-five percent (85%) in amount of the series of
                          bonds so to be affected (excluding in every instance
                          bonds disqualified from voting by reason of the
                          Company's interest therein as specified in the
                          Indenture); provided, however, that, without the
                          consent of the holder hereof, no such modification or
                          alteration shall, among other things, affect the terms
                          of payment of the principal of or the interest on this
                          bond, which in those respects is unconditional.

                                 This bond is redeemable prior to the Release
                          Date upon the terms and conditions set forth in the
                          Indenture, including provision for redemption upon
                          demand of the Note Indenture Trustee following the
                          occurrence of an Event of Default under the Note
                          Indenture and the acceleration of the principal of the
                          Notes and including provision for redemption upon
                          demand of the Note Indenture Trustee in the event of a
                          required redemption of the Notes following a
                          declaration of acceleration of the 2003A Bonds and
                          payment by XLCA of the accelerated principal of the
                          2003A Bonds, such demand stating that such redemption
                          of the Notes is required, stating that the redemption
                          price thereof was not paid when due and demanding
                          redemption of this bond.

                                 Under the Indenture, funds may be deposited
                          with the Trustee (which shall have become available
                          for payment), in advance of the redemption date of any
                          of the bonds of 2003 Series A (or portions thereof),
                          in trust for the redemption of such bonds (or portions
                          thereof) and the interest due or to become due
                          thereon, and thereupon all obligations of the Company
                          in respect of such bonds (or portions thereof) so to
                          be redeemed and such interest shall cease and be
                          discharged, and the holders thereof shall thereafter
                          be restricted exclusively to such funds for any and
                          all claims of whatsoever nature on their part under
                          the Indenture or with respect to such bonds (or
                          portions thereof) and interest. In the event the
                          Company desires to provide for the payment of bonds of
                          2003 Series A, in lieu of defeasing such bonds in
                          accordance with the Indenture, the Company shall
                          either redeem an equal principal amount of 2003A Bonds
                          or take such action as shall be required by the 2003A
                          Bond Indenture to defease an equal principal amount of
                          2003A Bonds.

                                       18

<PAGE>


                                 In case an event of default, as defined in the
                          Indenture, shall occur, the principal of all the bonds
                          issued thereunder may become or be declared due and
                          payable, in the manner, with the effect and subject to
                          the conditions provided in the Indenture.

                                 Any amount payable by the Company in respect of
                          principal of bonds of 2003 Series A, whether at
                          maturity or prior to maturity by redemption or
                          otherwise, in a circumstance where there has not been
                          a corresponding payment of principal of 2003A Bonds
                          shall be applied simultaneously to the redemption or
                          defeasance of an equal principal amount of 2003A Bonds
                          in accordance with the 2003A Bond Indenture.

                                 Upon payment of the principal of, or premium,
                          if any, or interest on, the Notes, whether at maturity
                          or prior to maturity by redemption or otherwise or
                          upon provision for the payment thereof having been
                          made in accordance with Article V of the Note
                          Indenture, bonds of 2003 Series A in a principal
                          amount equal to the principal amount of such Notes,
                          and having both a corresponding maturity date and
                          interest rate shall, to the extent of such payment of
                          principal, premium or interest, be deemed fully paid
                          and the obligation of the Company thereunder to make
                          such payment shall forthwith cease and be discharged,
                          and, in the case of the payment of principal and
                          premium, if any, such bonds of said series shall be
                          surrendered for cancellation or presented for
                          appropriate notation to the Trustee.

                                 This bond is not assignable or transferable
                          except as set forth under Section 405 of the Note
                          Indenture or in the supplemental indenture relating to
                          the Notes, or, subject to compliance with applicable
                          law, as may be involved in the course of the exercise
                          of rights and remedies consequent upon an Event of
                          Default under the Note Indenture. Any such transfer
                          shall be made by the registered holder hereof, in
                          person or by his attorney duly authorized in writing,
                          on the books of the Company kept at its office or
                          agency in the Borough of Manhattan, The City and State
                          of New York, upon surrender and cancellation of this
                          bond, and thereupon, a new registered bond of the same
                          series of authorized denominations for a like
                          aggregate principal amount will be issued to the
                          transferee in exchange therefor, and this bond with
                          others in like form may in like manner be exchanged
                          for one or more new bonds of the same series of other
                          authorized denominations, but of the same aggregate
                          principal amount, all as provided and upon the terms
                          and conditions set forth in the Indenture, and upon
                          payment, in any event, of the charges prescribed in
                          the Indenture.

                                 From and after the Release Date (as defined in
                          the Note Indenture), the bonds of 2003 Series A shall
                          be deemed fully paid, satisfied and discharged and the
                          obligation of the Company thereunder shall be
                          terminated. On the Release Date, the bonds of 2003
                          Series A shall be surrendered to and cancelled by the
                          Trustee. The Company covenants and agrees that, prior
                          to the Release Date, it will not take any action that
                          would cause the outstanding principal amount of the
                          bond of 2003 Series A to be less than the then
                          outstanding principal amount of the Notes.

                                       19

<PAGE>

                                 No recourse shall be had for the payment of the
                          principal of or the interest on this bond, or for any
                          claim based hereon or otherwise in respect hereof or
                          of the Indenture, or of any indenture supplemental
                          thereto, against any incorporator, or against any
                          past, present or future stockholder, director or
                          officer, as such, of the Company, or of any
                          predecessor or successor corporation, either directly
                          or through the Company or any such predecessor or
                          successor corporation, whether for amounts unpaid on
                          stock subscriptions or by virtue of any constitution,
                          statute or rule of law, or by the enforcement of any
                          assessment or penalty or otherwise howsoever; all such
                          liability being, by the acceptance hereof and as art
                          of the consideration for the issue hereof, expressly
                          waived and released by every holder or owner hereof,
                          as more fully provided in the Indenture.

                                 This bond shall not be valid or become
                          obligatory for any purpose until Bank One, National
                          Association, the Trustee under the Indenture, or its
                          successor thereunder, shall have signed the form of
                          certificate endorsed hereon.

                                 IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY
                          has caused this instrument to be executed by its Vice
                          President and Treasurer, with his manual or facsimile
                          signatures, and its corporate seal, or a facsimile
                          thereof, to be impressed or imprinted hereon and the
                          same to be attested by its Vice President and
                          Corporate Secretary by manual or facsimile signature.

                          Dated: August   , 2003

                                     THE DETROIT EDISON COMPANY

                                       By:___________________________________
                                            Vice President and Treasurer

                          [SEAL]

                          Attest:____________________________________________
                                    Vice President and Corporate Secretary

                                     [FORM OF TRUSTEE'S CERTIFICATE]

FORM OF TRUSTEE'S                This bond is one of the bonds, of the series
CERTIFICATE.              designated therein, described in the within-mentioned
                          Indenture.

                          BANK ONE, NATIONAL ASSOCIATION as Trustee

                          By __________________________________
                                  Authorized Officer

                                       20

<PAGE>

                                      PART II.

                                  RECORDING AND FILING DATA

RECORDING AND FILING OF           The Original Indenture and indentures
ORIGINAL INDENTURE.       supplemental thereto have been recorded and/or filed
                          and Certificates of Provision for Payment have been
                          recorded as hereinafter set forth.

                                 The Original Indenture has been recorded as a
                          real estate mortgage and filed as a chattel Mortgage
                          in the offices of the respective Registers of Deeds of
                          certain counties in the State of Michigan as set forth
                          in the Supplemental Indenture dated as of September 1,
                          1947, has been recorded as a real estate mortgage in
                          the office of the Register of Deeds of Genesee County,
                          Michigan as set forth in the Supplemental Indenture
                          dated as of May 1, 1974, has been filed in the Office
                          of the Secretary of State of Michigan on November 16,
                          1951 and has been filed and recorded in the office of
                          the Interstate Commerce Commission on December 8,
                          1969.

RECORDING AND FILING OF          Pursuant to the terms and provisions of the
SUPPLEMENTAL INDENTURES.  Original Indenture, indentures supplemental thereto
                          heretofore entered into have been Recorded as a real
                          estate mortgage and/or filed as a chattel mortgage or
                          as a financing statement in the offices of the
                          respective Registers of Deeds of certain counties in
                          the State of Michigan, the Office of the Secretary of
                          State of Michigan and the Office of the Interstate
                          Commerce Commission, as set forth in supplemental
                          indentures as follows:

<TABLE>
<CAPTION>
                                                                               RECORDED AND/OR
                                                                            FILED AS SET FORTH IN
          SUPPLEMENTAL                  PURPOSE OF                              SUPPLEMENTAL
           INDENTURE                   SUPPLEMENTAL                              INDENTURE
          DATED AS OF                   INDENTURE                               DATED AS OF:
          -----------                   ---------                               ------------
<S>                                   <C>                                   <C>
June 1, 1925(a)(b).............       Series B Bonds                         February 1, 1940

August 1, 1927(a)(b)...........       Series C Bonds                         February 1, 1940

February 1, 1931(a)(b).........       Series D Bonds                         February 1, 1940

June 1, 1931(a)(b).............       Subject Properties                     February 1, 1940

October 1, 1932(a)(b)..........       Series E Bonds                         February 1, 1940

September 25, 1935(a)(b).......       Series F Bonds                         February 1, 1940

September 1, 1936(a)(b)........       Series G Bonds                         February 1, 1940

November 1, 1936(a)(b).........       Subject Properties                     February 1, 1940

February 1, 1940(a)(b).........       Subject Properties                     September 1, 1947

December 1, 1940(a)(b).........       Series H Bonds and Additional          September 1, 1947
                                      Provisions

</TABLE>

                                       21

<PAGE>

<TABLE>
<S>                                   <C>                                    <C>
September 1, 1947(a)(b)(c).....       Series I Bonds, Subject Properties     November 15, 1951
                                      and Additional Provisions

March 1, 1950(a)(b)(c).........       Series J Bonds and Additional          November 15, 1951
                                      Provisions

November 15, 1951(a)(b)(c).....       Series K Bonds Additional Provisions   January 15, 1953
                                      and Subject Properties

January 15, 1953(a)(b).........       Series L Bonds                         May 1, 1953

May 1, 1953(a).................       Series M Bonds and Subject Properties  March 15, 1954

March 15, 1954(a)(c)...........       Series N Bonds and Subject Properties  May 15, 1955

May 15, 1955(a)(c).............       Series O Bonds and Subject Properties  August 15, 1957

August 15, 1957(a)(c)..........       Series P Bonds Additional Provisions   June 1, 1959
                                      and Subject Properties

June 1, 1959(a)(c).............       Series Q Bonds and Subject Properties  December 1, 1966

December 1, 1966(a)(c).........       Series R Bonds Additional Provisions   October 1, 1968
                                      and Subject Properties

October 1, 1968(a)(c)..........       Series S Bonds and Subject Properties  December 1, 1969

December 1, 1969(a)(c).........       Series T Bonds and Subject Properties  July 1, 1970

July 1, 1970(c)................       Series U Bonds and Subject Properties  December 15, 1970

December 15, 1970(c)...........       Series V and Series W Bonds            June 15, 1971

June 15, 1971(c)...............       Series X Bonds and Subject Properties  November 15, 1971

November 15, 1971(c)...........       Series Y Bonds and Subject Properties  January 15, 1973

January 15, 1973(c)............       Series Z Bonds and Subject Properties  May 1, 1974

May 1, 1974....................       Series AA Bonds and Subject            October 1, 1974
                                      Properties

October 1, 1974................       Series BB Bonds and Subject            January 15, 1975
                                      Properties

January 15, 1975...............       Series CC Bonds and Subject            November 1, 1975
                                      Properties

November 1, 1975...............       Series DDP Nos. 1-9 Bonds and          December 15, 1975
                                      Subject Properties

December 15, 1975..............       Series EE Bonds and Subject            February 1, 1976
                                      Properties

February 1, 1976...............       Series FFR Nos. 1-13 Bonds             June 15, 1976

June 15, 1976..................       Series GGP Nos. 1-7 Bonds and          July 15, 1976
                                      Subject Properties

July 15, 1976..................       Series HH Bonds and Subject            February 15, 1977
                                      Properties

February 15, 1977..............       Series MMP Bonds and Subject           March 1, 1977
                                      Properties
</TABLE>

                                       22
<PAGE>

<TABLE>
<S>                                   <C>                                    <C>
March 1, 1977..................       Series IIP Nos. 1-7 Bonds, Series      June 15, 1977
                                      JJP Nos. 1-7 Bonds, Series KKP Nos.
                                      1-7 Bonds and Series LLP Nos. 1-7
                                      Bonds

June 15, 1977..................       Series FFR No. 14 Bonds and Subject    July 1, 1977
                                      Properties

July 1, 1977...................       Series NNP Nos. 1-7 Bonds and          October 1, 1977
                                      Subject Properties

October 1, 1977................       Series GGP Nos. 8-22 Bonds and         June 1, 1978
                                      Series OOP Nos. 1-17 Bonds and
                                      Subject Properties

June 1, 1978...................       Series PP Bonds, Series QQP Nos. 1-9   October 15, 1978
                                      Bonds and Subject Properties

October 15, 1978...............       Series RR Bonds and Subject            March 15, 1979
                                      Properties

March 15, 1979.................       Series SS Bonds and Subject            July 1, 1979
                                      Properties

July 1, 1979...................       Series IIP Nos. 8-22 Bonds, Series     September 1, 1979
                                      NNP Nos. 8-21 Bonds and Series TTP
                                      Nos. 1-15 Bonds and Subject
                                      Properties

September 1, 1979..............       Series JJP No. 8 Bonds, Series KKP     September 15, 1979
                                      No. 8 Bonds, Series LLP Nos. 8-15
                                      Bonds, Series MMP No. 2 Bonds and
                                      Series OOP No. 18 Bonds and Subject
                                      Properties

September 15, 1979.............       Series UU Bonds                        January 1, 1980

January 1, 1980................       1980 Series A Bonds and Subject        April 1, 1980
                                      Properties

April 1, 1980..................       1980 Series B Bonds                    August 15, 1980

August 15, 1980................       Series QQP Nos. 10-19 Bonds, 1980      August 1, 1981
                                      Series CP Nos. 1-12 Bonds and 1980
                                      Series DP No. 1-11 Bonds and Subject
                                      Properties

August 1, 1981.................       1980 Series CP Nos. 13-25 Bonds and    November 1, 1981
                                      Subject Properties

November 1, 1981...............       1981 Series AP Nos. 1-12 Bonds         June 30, 1982

June 30, 1982..................       Article XIV Reconfirmation             August 15, 1982

August 15, 1982................       1981 Series AP Nos. 13-14 and          June 1, 1983
                                      Subject Properties

June 1, 1983...................       1981 Series AP Nos. 15-16 and          October 1, 1984
                                      Subject Properties

October 1, 1984................       1984 Series AP and 1984 Series BP      May 1, 1985
                                      Bonds and Subject Properties

May 1, 1985....................       1985 Series A Bonds                    May 15, 1985

May 15, 1985...................       1985 Series B Bonds and Subject        October 15, 1985
                                      Properties

October 15, 1985...............       Series KKP No. 9 Bonds and Subject     April 1, 1986
                                      Properties
</TABLE>

                                       23

<PAGE>

<TABLE>
<S>                                   <C>                                    <C>
April 1, 1986..................       1986 Series A and Subject Properties   August 15, 1986

August 15, 1986................       1986 Series B and Subject Properties   November 30, 1986

November 30, 1986..............       1986 Series C                          January 31, 1987

January 31, 1987...............       1987 Series A                          April 1, 1987

April 1, 1987..................       1987 Series B and 1987 Series C        August 15, 1987

August 15, 1987................       1987 Series D and 1987 Series E and    November 30, 1987
                                      Subject Properties

November 30, 1987..............       1987 Series F                          June 15, 1989

June 15, 1989..................       1989 Series A                          July 15, 1989

July 15, 1989..................       Series KKP No. 10                      December 1, 1989

December 1, 1989...............       Series KKP No. 11 and 1989 Series BP   February 15, 1990

February 15, 1990..............       1990 Series A, 1990 Series B, 1990     November 1, 1990
                                      Series C, 1990 Series D, 1990 Series
                                      E and 1990 Series F

November 1, 1990...............       Series KKP No. 12                      April 1, 1991

April 1, 1991..................       1991 Series AP                         May 1, 1991

May 1, 1991....................       1991 Series BP and 1991 Series CP      May 15, 1991

May 15, 1991...................       1991 Series DP                         September 1, 1991

September 1, 1991..............       1991 Series EP                         November 1, 1991

November 1, 1991...............       1991 Series FP                         January 15, 1992

January 15, 1992...............       1992 Series BP                         February  29, 1992 and
                                                                             April 15, 1992

February 29, 1992..............       1992 Series AP                         April 15, 1992

April 15, 1992.................       Series KKP No. 13                      July 15, 1992

July 15, 1992..................       1992 Series CP                         November 30, 1992

July 31, 1992..................       1992 Series D                          November 30, 1992

November 30, 1992..............       1992 Series E and 1993 Series D        March 15, 1993

December 15, 1992..............       Series KKP No. 14 and 1989 Series BP   March 15, 1992
                                      No. 2

January 1, 1993................       1993 Series C                          April 1, 1993

March 1, 1993..................       1993 Series E                          June 30, 1993

March 15, 1993.................       1993 Series D                          September 15, 1993

April 1, 1993..................       1993 Series FP and 1993 Series IP      September 15, 1993

April 26, 1993.................       1993 Series G and Amendment of         September 15, 1993
                                      Article II, Section 5

May 31, 1993...................       1993 Series J                          September 15, 1993

September 15, 1993.............       1993 Series K                          March 1, 1994

March 1, 1994..................       1994 Series AP                         June 15, 1994

June 15, 1994..................       1994 Series BP                         December 1, 1994

August 15, 1994................       1994 Series C                          December 1, 1994

December 1, 1994...............       Series KKP No. 15 and 1994 Series DP   August 1, 1995

August 1, 1995.................       1995 Series AP and 1995 Series DP      August 1, 1999
</TABLE>

                  (a) See Supplemental Indenture dated as of July 1, 1970 for
                  Interstate Commerce Commission filing and recordation
                  information.

                  (b) See Supplemental Indenture dated as of May 1, 1953 for
                  Secretary of State of Michigan filing information.

                  (c) See Supplemental Indenture dated as of May 1, 1974 for
                  County of Genesee, Michigan recording and filing information.

                                       24

<PAGE>

RECORDING OF              All the bonds of Series A which were issued under the
CERTIFICATES OF           Original Indenture dated as of October 1, 1924, and of
PROVISION FOR             Series B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q,
PAYMENT.                  R, S, W, Y, Z, AA, BB, CC, DDP Nos. 1-9, FFR Nos.
                          1-14, GGP Nos. 1-22, HH, IIP Nos. 1-22, JJP Nos. 1-8,
                          KKP Nos. 1-9, LLP Nos. 1-15, NNP Nos. 1-21, OOP Nos.
                          1-18, QQP Nos. 1-17, TTP Nos. 1-15, UU, 1980 Series A,
                          1980 Series CP Nos. 1-25, 1980 Series DP Nos. 1-11,
                          1981 Series AP Nos. 1-16, 1984 Series AP, 1984 Series
                          BP, 1985 Series A, 1985 Series B, 1987 Series A, PP,
                          RR, EE, MMP, MMP No. 2, 1989 Series A, 1990 Series A,
                          1993 Series D, 1993 Series G and 1993 Series H which
                          were issued under Supplemental Indentures dated as of,
                          respectively, June 1, 1925, August 1, 1927, February
                          1, 1931, October 1, 1932, September 25, 1935,
                          September 1, 1936, December 1, 1940, September 1,
                          1947, November 15, 1951, January 15, 1953, May 1,
                          1953, March 15, 1954, May 15, 1955, August 15, 1957,
                          December 15, 1970, November 15, 1971, January 15,
                          1973, May 1, 1974, October 1, 1974, January 15, 1975,
                          November 1, 1975, February 1, 1976, June 15, 1976,
                          July 15, 1976, October 1, 1977, March 1, 1977, July 1,
                          1979, March 1, 1977, March 1, 1977, March 1, 1977,
                          September 1, 1979, July 1, 1977, July 1, 1979,
                          September 15, 1979, October 1, 1977, June 1, 1978,
                          October 1, 1977, July 1, 1979, January 1, 1980, August
                          15, 1980, November 1, 1981, October 1, 1984 May 1,
                          1985, May 15, 1985, January 31, 1987, June 1, 1978,
                          October 15, 1978, December 15, 1975, February 15,
                          1977, September 1, 1979, June 15, 1989, February 15,
                          1990, March 15, 1993, April 26, 1992 and September 15,
                          1992 have matured or have been called for redemption
                          and funds sufficient for such payment or redemption
                          have been irrevocably deposited with the Trustee for
                          that purpose; and Certificates of Provision for
                          Payment have been recorded in the offices of the
                          respective Registers of Deeds of certain counties in
                          the State of Michigan, with respect to all bonds of
                          Series A, B, C, D, E, F, G, H, K, L, M, O, W, BB, CC,
                          DDP Nos. 1 and 2, FFR Nos. 1-3, GGP Nos. 1 and 2, IIP
                          No. 1, JJP No. 1, KKP No. 1, LLP No. 1 and GGP No. 8.

                                   PART III.

                                  THE TRUSTEE.

TERMS AND CONDITIONS OF           The Trustee hereby accepts the trust hereby
ACCEPTANCE OF TRUST BY            declared and provided, and agrees to perform
TRUSTEE.                          the same upon the terms and conditions in the
                                  Original Indenture, as amended to date and as
                                  supplemented by this Supplemental Indenture,
                                  and in this Supplemental Indenture set forth,
                                  and upon the following terms and conditions:

                                  The Trustee shall not be responsible in any
                                  manner whatsoever for and in respect of the
                                  validity or sufficiency of this Supplemental
                                  Indenture or the due execution hereof by the
                                  Company or for or in respect of the recitals
                                  contained herein, all of which recitals are
                                  made by the Company solely.

                                       25

<PAGE>

                                    PART IV.

                                 MISCELLANEOUS.

CONFIRMATION OF SECTION   Except to the extent specifically provided therein, no
318 (c) OF TRUST          provision of this supplemental indenture or any future
INDENTURE ACT.            supplemental indenture is intended to modify, and the
                          parties do hereby adopt and confirm, the provisions of
                          Section 318(c) of the Trust Indenture Act which amend
                          and supersede provisions of the Indenture in effect
                          prior to November 15, 1990.

EXECUTION IN              THIS SUPPLEMENTAL INDENTURE MAY BE SIMULTANEOUSLY
COUNTERPARTS.             EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH
                          WHEN SO EXECUTED SHALL BE DEEMED TO BE AN ORIGINAL;
                          BUT SUCH COUNTERPARTS SHALL TOGETHER CONSTITUTE BUT
                          ONE AND THE SAME INSTRUMENT.

TESTIMONIUM.              IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY AND
                          BANK ONE, NATIONAL ASSOCIATION HAVE CAUSED THESE
                          PRESENTS TO BE SIGNED IN THEIR RESPECTIVE CORPORATE
                          NAMES BY THEIR RESPECTIVE CHAIRMEN OF THE BOARD,
                          PRESIDENTS, VICE PRESIDENTS, ASSISTANT VICE
                          PRESIDENTS, TREASURERS OR ASSISTANT TREASURERS AND
                          IMPRESSED WITH THEIR RESPECTIVE CORPORATE SEALS,
                          ATTESTED BY THEIR RESPECTIVE SECRETARIES OR ASSISTANT
                          SECRETARIES, ALL AS OF THE DAY AND YEAR FIRST ABOVE
                          WRITTEN.

                                       26

<PAGE>

THE DETROIT EDISON COMPANY,

By: _______________________
Name:
Title:

EXECUTION.                Attest:

                          _____________________________
                          Name:
                          Title:

Signed, sealed and delivered by
THE DETROIT EDISON COMPANY,

in the presence of

______________________________
Name:

______________________________
Name:

<PAGE>

STATE OF MICHIGAN
            SS.:

COUNTY OF WAYNE

Acknowledgement of        On this ____ day of August, 2003, before me, the
Execution by              subscriber, a Notary Public within and for the County
Company                   of Wayne, in the State of Michigan, personally
                          appeared _________________, to me personally known,
                          who, being by me duly sworn, did say that he does
                          business at 2000 2nd Avenue, Detroit, Michigan 48226
                          and is the Assistant Treasurer of THE DETROIT EDISON
                          COMPANY, one of the corporations described in and
                          which executed the foregoing instrument; that he knows
                          the corporate seal of the said corporation and that
                          the seal affixed to said instrument is the corporate
                          seal of said corporation; and that said instrument was
                          signed and sealed in behalf of said corporation by
                          authority of its Board of Directors and that he
                          subscribed his name thereto by like authority; and
                          said _____________ acknowledged said instrument to be
                          the free act and deed of said corporation.

(Notarial Seal)           _____________________________
                          ______________________ Notary
                          _____________________________
                          My Commission Expires

<PAGE>

BANK ONE, NATIONAL ASSOCIATION,

(Corporate Seal)          By: ___________________________
                              Name:
                              Title:

Attest:

Name
Title:

Signed, sealed and delivered by

BANK ONE, NATIONAL ASSOCIATION,
in the presence of

_________________________________
Name:

_________________________________
Name:

<PAGE>

                              STATE OF ILLINOIS
                                                SS:

Acknowledgment of         On this _____ day of August, 2003, before me, the
Execution by Trustee.     subscriber, a Notary Public within and for the County
                          of Cook, in the State of Illinois, personally appeared
                          ________________, to me personally known, who, being
                          by me duly sworn, did say that his business office is
                          located at 1 Bank One Plaza, Chicago, Illinois 60670,
                          and he is Vice President of BANK ONE, NATIONAL
                          ASSOCIATION, one of the corporations described in and
                          which executed the foregoing instrument; that he knows
                          the corporate seal of the said corporation and that
                          the seal affixed to said instrument is the corporate
                          seal of said corporation; and that said instrument was
                          signed and sealed in behalf of said corporation by
                          authority of its Board of Directors and that he
                          subscribed his name thereto by like authority; and
                          said ________________ acknowledged said instrument to
                          be the free act and deed of said corporation.

(Notarial Seal)           _______________________________________
                          Notary Public, State of Illinois
                          No.
                          Qualified in Cook County
                          Commission Expires _____________

<PAGE>

                              STATE OF MICHIGAN
                                                SS:

                              COUNTY OF WAYNE.

Affidavit as to           ____________ being duly sworn, says: that he is the
Consideration and Good    Assistant Treasurer of THE DETROIT EDISON COMPANY, the
Faith.                    Mortgagor named in the foregoing instrument, and that
                          he has knowledge of the facts in regard to the making
                          of said instrument and of the consideration therefor;
                          that the consideration for said instrument was and is
                          actual and adequate, and that the same was given in
                          good faith for the purposes in such instrument set
                          forth.

                          _________________________________
                          Name:

Sworn to before me this ____ day of August, 2003

_____________________________
_____________________, Notary
_____________________________
My Commission Expires:_______
(Notarial Seal)