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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



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FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended June 30, 2002

Commission file number 1-2198

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

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

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

313-235-8000
(Registrants telephone number, including area code)

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

Yes x No o



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TABLE OF CONTENTS



|                               |                                                                      |                                                           |  |  |  |  |  | 
|------------------------------ | -------------------------------------------------------------------- | --------------------------------------------------------- |  |  |  |  |  | 
|Definitions                   
|Part I  Financial Information
|                               | Item 1. Financial Statements                                        
|                               | Item 2. Managements Narrative Analysis of the Results of Operations
|                               |                                                                      | Consolidated Statement of Operations                     
|                               |                                                                      | Consolidated Statement of Financial Position             
|                               |                                                                      | Consolidated Statement of Cash Flows                     
|                               |                                                                      | Consolidated Statement of Changes in Shareholders Equity
|                               |                                                                      | Notes to Consolidated Financial Statements               
|                               |                                                                      | Independent Accountants Report                          
|Part II  Other Information   
|                               | Item 6. Exhibits and Reports on Form 8-K                            
|Signature                     
|Awareness Letter              
|Certification of CEO          
|Certification of CFO          



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The Detroit Edison Company

Quarterly Report on Form 10-Q
Quarter Ended June 30, 2002

Table of Contents

|                               |                                                                      |                                                           |    |      |    | 
|------------------------------ | -------------------------------------------------------------------- | --------------------------------------------------------- | -- | ---- | -- | 
|                               |                                                                      |                                                           |    | Page |   
|                               |                                                                      |                                                           |    |      |   
|                              
|Definitions                    |                                                                      |                                                           | 3  |     
|                              
|Part I  Financial Information |                                                                      |                                                           |    |     
|                              
|                               | Item 1. Financial Statements                                         |                                                           |    |      |   
|                              
|                               |                                                                      | Consolidated Statement of Operations                      |    |      | 9  | 
|                              
|                               |                                                                      | Consolidated Statement of Financial Position              |    |      | 10 | 
|                              
|                               |                                                                      | Consolidated Statement of Cash Flows                      |    |      | 12 | 
|                              
|                               |                                                                      | Consolidated Statement of Changes in Shareholders Equity |    |      | 13 | 
|                              
|                               |                                                                      | Notes to Consolidated Financial Statements                |    |      | 14 | 
|                              
|                               |                                                                      | Independent Accountants Report                           |    |      | 19 | 
|                              
|                               | Item 2. Managements Narrative Analysis of the Results of Operations |                                                           |    | 4    |   
|                              
|Part II  Other Information    |                                                                      |                                                           |    |     
|                              
|                               | Item 6. Exhibits and Reports on Form 8-K                             |                                                           |    | 20   |   
|                              
|Signature                      |                                                                      |                                                           | 21 |     

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Definitions

| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | --------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Customer Choice |  | The choice program is a statewide initiative giving customers
in Michigan the option to choose alternative suppliers for electricity.                                                                                                                                                                                              
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | DTE Energy      |  | DTE Energy Company and Subsidiary Companies                                                                                                                                                                                                                                                                                        
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | Detroit Edison  |  | The Detroit Edison Company (a wholly owned subsidiary of DTE
Energy Company) and Subsidiary Companies                                                                                                                                                                                                                              
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | Enterprises     |  | DTE Enterprises Inc. (successor to MCN Energy), a wholly owned
subsidiary of DTE Energy Company                                                                                                                                                                                                                                    
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | EPA             |  | United States Environmental Protection Agency                                                                                                                                                                                                                                                                                      
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | FERC            |  | Federal Energy Regulatory Commission                                                                                                                                                                                                                                                                                               
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | kWh             |  | Kilowatthour                                                                                                                                                                                                                                                                                                                       
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | MCN Energy      |  | MCN Energy Group Inc.                                                                                                                                                                                                                                                                                                              
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | MichCon         |  | Michigan Consolidated Gas Company                                                                                                                                                                                                                                                                                                  
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | MPSC            |  | Michigan Public Service Commission                                                                                                                                                                                                                                                                                                 
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | MW              |  | Megawatt                                                                                                                                                                                                                                                                                                                           
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | MWh             |  | Megawatthour                                                                                                                                                                                                                                                                                                                       
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | PSCR            |  | A power supply cost recovery mechanism authorized by the MPSC that
allowed Detroit Edison to recover through rates its fuel, fuel-related and
purchased power electric expenses. The clause was suspended under
Michigans restructuring legislation signed into law June 5, 2000, which
lowered and froze electric customer rates.
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | SEC             |  | Securities and Exchange Commission                                                                                                                                                                                                                                                                                                 
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | Securitization  |  | A mechanism used by Detroit Edison to refinance specific
stranded costs at lower interest rates through the sale of rate reduction
bonds.                                                                                                                                                                                          
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | SFAS            |  | Statement of Financial Accounting Standards                                                                                                                                                                                                                                                                                        
| |  |                 |  |                                                                                                                                                                                                                                                                                                                                    
| |  | Stranded Costs  |  | Costs incurred by utilities in order to serve customers in a
regulated environment, but some of which may not be recoverable if
customers switch to alternative suppliers of electricity.                                                                                                                                          

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The Detroit Edison Company

Forward-Looking Statements

Certain information presented herein includes forward-looking statements.
Forward-looking statements involve certain risks and uncertainties that may
cause actual future results to differ materially from those contemplated,
projected, estimated or budgeted in such forward-looking statements. Factors
that may impact forward-looking statements include, but are not limited to,
interest rates, access to the capital markets, the level of borrowings,
weather, actual sales, changes in the cost of fuel and purchased power due to
the suspension of the PSCR mechanism, the effects of
competition and the implementation of electric Customer Choice programs, the
implementation of electric utility restructuring in Michigan, environmental and
nuclear requirements, the impact of FERC and MPSC proceedings and regulations
and the timing of the accretive effects of DTE Energys merger with MCN Energy.




Managements Narrative Analysis of the Results of Operations

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

Detroit Edison reported earnings of $74 million for the 2002 three-month
period, compared to a net loss of $77 million for the same period in 2001. For
the six-month period, net income was $167 million compared to $36 million for
the same period in 2001. Earnings comparability are affected by $173 million
($113 million net of taxes) of merger and restructuring charges that were
recorded in the second quarter of 2001.

New reporting alignment- Beginning in 2002, Detroit Edisons parent company,
DTE Energy, realigned its internal and external financial reporting structure
into three strategic business units (Energy Resources, Energy Distribution and
Energy Gas) that have both regulated and non-regulated operations. This
structure is how management sets strategic goals, allocates resources and
evaluates performance. The realignment resulted in the following two
reportable segments for Detroit Edison:

Energy Resourcesincludes the power generation services of Detroit Edison.
Electricity is generated from Detroit Edisons numerous fossil plants or its
nuclear plant and sold to residential, commercial, industrial and wholesale
customers.

Energy Distributionincludes the electric distribution services of Detroit
Edison. Energy Distribution distributes electricity generated by Energy
Resources and alternative electric suppliers to Detroit Edisons 2.1 million
residential, commercial and industrial customers.

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Managements Narrative Analysis and Results of Operations

|                                             |       |   |                    |    |  |                  |      |     |      |   |     |      |  |   |      |    | 
|-------------------------------------------- | ----- | - | ------------------ | -- |  | ---------------- | ---- | --- | ---- | - | --- | ---- |  | - | ---- | -- | 
|                                             |       |   | Three Months Ended |    |  | Six Months Ended |     
|                                             |       |   | June 30            |    |  | June 30          |     
|                                             |       |   |                    |    |  |                  |     
|                                             |       |   | 2002               |    |  | 2001             |      |     | 2002 |   |     | 2001 | 
|                                             |       |   |                    |    |  |                  |      |     |      |   |     |      | 
|Net Income (Loss)                            |       |   |                    |    |  |                  |      |     |      |   |     |      |  |   |      |   
|Energy Resources                             |       | $ | 57                 |    |  | $                | 12   |     |      | $ | 128 |      |  | $ | 88   |   
|Energy Distribution                          |       |   | 17                 |    |  |                  | 24   |     |      |   | 39  |      |  |   | 62   |   
|                                             |       |   |                    |    |  |                  |      |     |      |   |     |     
|                                             |       |   | 74                 |    |  |                  | 36   |     |      |   | 167 |      |  |   | 150  |   
|                                             |       |   |                    |    |  |                  |      |     |      |   |     |     
|Merger and Restructuring Charges, net of tax |       |   |                   |    |  |                  | (113 | )   |      |   |    |      |  |   | (114 | ) 
|                                             |       |   |                    |    |  |                  |      |     |      |   |     |     
|                                             | Total |   | $                  | 74 |  |                  | $    | (77 | )    |   | $   | 167  |  |   | $    | 36 | 
|                                             |       |   |                    |    |  |                  |      |     |      |   |     |     

Energy Resources

Earnings increased $45 million and $40 million during the 2002 three- and
six-month periods reflecting higher gross margins due to lower fuel and
purchased power costs, partially offset by a decrease in operating revenue.
Fuel and purchased power costs reflect favorable energy market prices and an
increase in unrealized mark to market gains. The operating revenues decrease
was attributable to the impact of a 5% legislatively mandated, securitization
based, rate reduction for commercial and industrial customers that began in
April 2001.
The higher gross margins were partially offset by increased operations and
maintenance expenses for health care and pension costs. Depreciation and
amortization expense decreased reflecting the extension of the amortization
period from seven years to 15 years for certain regulatory assets that were
securitized in 2001.

|                               |  |                    |     |  |                  |   |     |      |  |   |       |  |  |   |       | 
|------------------------------ |  | ------------------ | --- |  | ---------------- | - | --- | ---- |  | - | ----- |  |  | - | ----- | 
|                               |  | Three Months Ended |     |  | Six Months Ended |  
|                               |  | June 30            |     |  | June 30          |  
|                               |  |                    |     |  |                  |  
|                               |  | 2002               |     |  | 2001             |   |     | 2002 |  |   | 2001  | 
|                               |  |                    |     |  |                  |   |     |      |  |   |       | 
|(in Millions)                  |  |                    |     |  |                  |   |     |      |  |   |       |  |  |   |       | 
|Operating revenues             |  | $                  | 654 |  |                  | $ | 704 |      |  | $ | 1,271 |  |  | $ | 1,407 | 
|Less: Fuel and purchased
power |  |                    | 240 |  |                  |   | 351 |      |  |   | 428   |  |  |   | 595   | 
|                               |  |                    |     |  |                  |   |     |      |  |   |       | 
|Gross margin                   |  | $                  | 414 |  |                  | $ | 353 |      |  | $ | 843   |  |  | $ | 812   | 
|                               |  |                    |     |  |                  |   |     |      |  |   |       | 
|Net income                     |  | $                  | 57  |  |                  | $ | 12  |      |  | $ | 128   |  |  | $ | 88    | 
|                               |  |                    |     |  |                  |   |     |      |  |   |       | 

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Managements Narrative Analysis and Results of Operations

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

|                              |                     |  |                    |       |  |                  |        |       |      |  |        |        |  |  |        |        | 
|----------------------------- | ------------------- |  | ------------------ | ----- |  | ---------------- | ------ | ----- | ---- |  | ------ | ------ |  |  | ------ | ------ | 
|                              |                     |  | Three Months Ended |       |  | Six Months Ended |       
|                              |                     |  | June 30            |       |  | June 30          |       
|                              |                     |  |                    |       |  |                  |       
|                              |                     |  | 2002               |       |  | 2001             |        |       | 2002 |  |        | 2001   | 
|                              |                     |  |                    |       |  |                  |        |       |      |  |        |        | 
|(in Thousands of MWh)         |                     |  |                    |       |  |                  |        |       |      |  |        |        |  |  |        |       
|Power generated and purchased |                     |  |                    |       |  |                  |        |       |      |  |        |        |  |  |        |       
|Power plant generation        |                     |  |                    |       |  |                  |        |       |      |  |        |        |  |  |        |       
|                              | Fossil              |  |                    | 9,519 |  |                  |        | 9,390 |      |  |        | 18,630 |  |  |        | 19,618 | 
|                              | Nuclear             |  |                    | 2,334 |  |                  |        | 2,316 |      |  |        | 4,624  |  |  |        | 4,729  | 
|Purchased power               |                     |  | 2,178              |       |  |                  | 1,736  |       |      |  | 3,818  |        |  |  | 3,268  |       
|                              |                     |  |                    |       |  |                  |        |       |      |  |        |       
|System output                 |                     |  | 14,031             |       |  |                  | 13,442 |       |      |  | 27,072 |        |  |  | 27,615 |       
|                              |                     |  |                    |       |  |                  |        |       |      |  |        |       
|Average unit cost ($/MWh)     |                     |  |                    |       |  |                  |        |       |      |  |        |        |  |  |        |       
|                              | Generation (1)      |  | $                  | 12.64 |  |                  | $      | 12.03 |      |  | $      | 12.41  |  |  | $      | 12.20  | 
|                              |                     |  |                    |       |  |                  |        |       |      |  |        |       
|                              | Purchased power (2) |  | $                  | 37.77 |  |                  | $      | 69.96 |      |  | $      | 34.48  |  |  | $      | 57.47  | 
|                              |                     |  |                    |       |  |                  |        |       |      |  |        |       



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

Outlook Regulatory changes have resulted and will continue to result in
increased competition in the electric generation business. Effective January
1, 2002, the electric Customer Choice program was expanded whereby all electric
customers can choose to purchase their electricity from suppliers other than
their local utility. Detroit Edison expects to lose 5% to 8% of its retail
sales as a result of customers choosing to participate in the electric Customer
Choice program during 2002. To the extent Detroit Edison experiences net
stranded costs as a result of customers switching to an alternative electric
supplier, Michigan legislation provides for the recovery of such stranded
costs. Detroit Edison disagrees with the MPSCs methodology for determining
and recovering net stranded costs and has asked for rehearing, clarification
and substantial changes on certain aspects of the applicable order. In May
2002, the MPSC denied Detroit Edisons request for rehearing and clarification
on certain aspects of the order. In June 2002, Detroit Edison filed an appeal
of the MPSC order at the Michigan Court of Appeals. See Note 3.

Energy Distribution

Earnings declined $7 million and $23 million during the 2002 three- and
six-month periods due primarily to increased operation and maintenance
expenses. The increased operation and maintenance expenses are attributable to
higher health care and pension costs, heat-related maintenance costs on the
distribution system and costs associated with restoring power to customers who
lost service during two storms in the 2002 six-month period. Operating
revenues increased due primarily to higher residential sales due to warm June
weather.

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Managements Narrative Analysis and Results of Operations

|                   |  |                    |     |  |                  |   |     |      |  |   |      |  |  |   |     | 
|------------------ |  | ------------------ | --- |  | ---------------- | - | --- | ---- |  | - | ---- |  |  | - | --- | 
|                   |  | Three Months Ended |     |  | Six Months Ended |  
|                   |  | June 30            |     |  | June 30          |  
|                   |  |                    |     |  |                  |  
|                   |  | 2002               |     |  | 2001             |   |     | 2002 |  |   | 2001 | 
|                   |  |                    |     |  |                  |   |     |      |  |   |      | 
|(in Millions)      |  |                    |     |  |                  |   |     |      |  |   |      |  |  |   |     | 
|Operating revenues |  | $                  | 308 |  |                  | $ | 288 |      |  | $ | 621  |  |  | $ | 609 | 
|                   |  |                    |     |  |                  |   |     |      |  |   |      | 
|Net income         |  | $                  | 17  |  |                  | $ | 24  |      |  | $ | 39   |  |  | $ | 62  | 
|                   |  |                    |     |  |                  |   |     |      |  |   |      | 

|                                    |  |                    |        |  |                  |  |        |      |  |  |        |  |  |  |        | 
|----------------------------------- |  | ------------------ | ------ |  | ---------------- |  | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|                                    |  | Three Months Ended |        |  | Six Months Ended | 
|Electric Sales and Deliveries       |  | June 30            |        |  | June 30          | 
|                                    |  |                    |        |  |                  | 
|                                    |  | 2002               |        |  | 2001             |  |        | 2002 |  |  | 2001   | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 
|(in Thousands of MWh)               |  |                    |        |  |                  |  |        |      |  |  |        |  |  |  |        | 
|Electric Sales                      |  |                    |        |  |                  |  |        |      |  |  |        |  |  |  |        | 
|Residential                         |  |                    | 3,527  |  |                  |  | 3,236  |      |  |  | 7,247  |  |  |  | 6,906  | 
|Commercial                          |  |                    | 4,718  |  |                  |  | 4,753  |      |  |  | 9,060  |  |  |  | 9,255  | 
|Industrial                          |  |                    | 3,537  |  |                  |  | 3,649  |      |  |  | 6,869  |  |  |  | 7,323  | 
|Wholesale                           |  |                    | 550    |  |                  |  | 537    |      |  |  | 1,092  |  |  |  | 1,116  | 
|Other                               |  |                    | 85     |  |                  |  | 92     |      |  |  | 197    |  |  |  | 187    | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 
|                                    |  |                    | 12,417 |  |                  |  | 12,267 |      |  |  | 24,465 |  |  |  | 24,787 | 
|Electric Choice (delivery only)     |  |                    | 761    |  |                  |  | 406    |      |  |  | 1,642  |  |  |  | 572    | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 
|Total Electric Sales and Deliveries |  |                    | 13,178 |  |                  |  | 12,673 |      |  |  | 26,107 |  |  |  | 25,359 | 
|                                    |  |                    |        |  |                  |  |        |      |  |  |        | 

Outlook Regulated electric system deliveries are expected to
increase in 2002 due to the economic recovery and continue to grow beginning in
2003. Operating results will vary as a result of various external factors such
as weather, changes in economic conditions and the severity and frequency of
storms.

CAPITAL RESOURCES AND LIQUIDITY

|                                          |                      |   |                  |      |   |      |    |      |  
|----------------------------------------- | -------------------- | - | ---------------- | ---- | - | ---- | -- | ---- | -
|                                          |                      |   | Six Months Ended |     
|                                          |                      |   | June 30          |     
|                                          |                      |   |                  |     
|                                          |                      |   | 2002             |      |   | 2001 |   
|                                          |                      |   |                  |      |   |      |   
|Cash and Cash Equivalents                 |                      |   |                  |      |   |      |    |     
|(in Millions)                             |                      |   |                  |      |   |      |    |     
|Cash Flow From (Used For)                 |                      |   |                  |      |   |      |    |     
|                                          | Operating activities |   | $                | 209  |   |      | $  | 602  |  
|                                          | Investing activities |   |                  | (363 | ) |      |    | (489 | )
|                                          | Financing activities |   |                  | (41  | ) |      |    | (115 | )
|                                          |                      |   |                  |      |   |     
|Net Decrease in Cash and Cash Equivalents |                      | $ | (195             | )    |   | $    | (2 | )   
|                                          |                      |   |                  |      |   |     

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Managements Narrative Analysis and Results of Operations

Operating Activities

Net cash from operating activities decreased $393 million in the 2002 six-month
period due to higher working capital levels, incremental storm restoration
costs and the impact of the 5% rate reduction as part of securitization.

Higher working capital levels reflect increased customer receivables of $117
million, largely the result of the impact of the economy on collections.
Management expects lower receivables outstanding by year end. Increased sales
due to warm June weather also contributed to the higher receivable balance. In
addition, lower accounts payable levels represents the internal focus on
managing external payments and taking greater advantage of purchase discounts.

Investing Activities

Net cash used for investing activities decreased $126 million in the 2002
six-month period due to lower investments in regulatory assets associated with
securitizing the companys Fermi 2 power generation facility in March 2001.
Partially offsetting this decrease are higher plant and equipment expenditures
associated with new air quality regulations which require the reduction in
nitrogen oxide levels. Additional cash that was restricted for debt
redemptions also affected the comparison.

Financing Activities

Net cash used for financing activities decreased $74 million during the 2002
six-month period. This change is due primarily to the issuance of $1.75
billion of securitization bonds in 2001 and changes in short-term borrowings,
redemptions of long-term debt and repurchases of common stock.

ENVIRONMENTAL MATTERS

EPA ozone transport regulations and final new air quality standards relating to
ozone and particulate air pollution will impact the Company. Detroit Edison
has spent approximately $348 million through June 2002 and estimates that it
will incur an additional $400 to $500 million of future capital expenditures
over the next three years to comply.

NEW ACCOUNTING PRONOUNCEMENTS

During 2001, the Financial Accounting Standards Board (FASB) issued new
accounting pronouncements concerning business combinations, goodwill and other
intangible assets, asset retirement obligations and impairment or disposal of
long-lived assets. See Note 6 for a discussion of Detroit Edisons evaluation
of the adoption of these new accounting pronouncements.

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The Detroit Edison Company
Consolidated Statement of Operations (Unaudited)

|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |     |       |   |       |     |       | 
|-------------------------------------- | -------------------------------- | -------------------------------- | --- | ------------ | --- | - | ---------- | --- | ----- | ---- | ----- | --- | ----- | - | ----- | --- | ----- | 
|                                       |                                  |                                  |     | Three Months |     |   | Six Months |    
|                                       |                                  |                                  |     | Ended        |     |   | Ended      |    
|                                       |                                  |                                  |     | June 30      |     |   | June 30    |    
|                                       |                                  |                                  |     |              |     |   |            |    
|                                       |                                  |                                  |     | 2002         |     |   | 2001       |     |       | 2002 |       |     | 2001  |  
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |     |       |  
|(in Millions)                          |                                  |                                  |     |              |     |   |            |     |       |      |       |     |       |   |       |    
|Operating Revenues                     |                                  | $                                | 962 |              |     | $ | 992        |     |       | $    | 1,892 |     |       | $ | 2,016 |    
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Operating Expenses                     |                                  |                                  |     |              |     |   |            |     |       |      |       |     |       |   |       |    
|                                       | Fuel and purchased power         |                                  |     | 239          |     |   |            | 354 |       |      |       | 440 |       |   |       | 623 |      
|                                       | Operation and maintenance        |                                  |     | 328          |     |   |            | 280 |       |      |       | 612 |       |   |       | 534 |      
|                                       | Depreciation and amortization    |                                  |     | 138          |     |   |            | 160 |       |      |       | 285 |       |   |       | 334 |      
|                                       | Taxes other than income          |                                  |     | 65           |     |   |            | 72  |       |      |       | 137 |       |   |       | 151 |      
|                                       | Merger and restructuring charges |                                  |     |             |     |   |            | 173 |       |      |       |    |       |   |       | 175 |      
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|                                       |                                  | Total Operating Expenses         |     |              | 770 |   |            |     | 1,039 |      |       |     | 1,474 |   |       |     | 1,817 | 
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Operating Income (Loss)                |                                  |                                  | 192 |              |     |   | (47        | )   |       |      | 418   |     |       |   | 199   |    
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Interest Expense and Other             |                                  |                                  |     |              |     |   |            |     |       |      |       |     |       |   |       |    
|                                       | Interest expense                 |                                  |     | 78           |     |   |            | 78  |       |      |       | 156 |       |   |       | 150 |      
|                                       | Other  net                      |                                  |     | 1            |     |   |            |    |       |      |       | 11  |       |   |       | 5   |      
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|                                       |                                  | Total Interest Expense and Other |     |              | 79  |   |            |     | 78    |      |       |     | 167   |   |       |     | 155   | 
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Income (Loss) Before Income Taxes      |                                  |                                  | 113 |              |     |   | (125       | )   |       |      | 251   |     |       |   | 44    |    
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Income Tax Provision (Benefit)         |                                  |                                  | 39  |              |     |   | (48        | )   |       |      | 84    |     |       |   | 5     |    
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Income (Loss) Before Accounting Change |                                  |                                  | 74  |              |     |   | (77        | )   |       |      | 167   |     |       |   | 39    |    
|Cumulative Effect of Accounting Change |                                  |                                  |    |              |     |   |           |     |       |      |      |     |       |   | (3    | )  
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    
|Net Income (Loss)                      |                                  | $                                | 74  |              |     | $ | (77        | )   |       | $    | 167   |     |       | $ | 36    |    
|                                       |                                  |                                  |     |              |     |   |            |     |       |      |       |    

See Notes to Consolidated Financial Statements (Unaudited)

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The Detroit Edison Company
Consolidated Statement of Financial Position

|               |                                     |                                                                              |        |             |     |   |             |        |     | 
|-------------- | ----------------------------------- | ---------------------------------------------------------------------------- | ------ | ----------- | --- | - | ----------- | ------ | --- | 
|               |                                     |                                                                              |        | June 30     |     |   |             |        |    
|               |                                     |                                                                              |        | 2002        |     |   | December 31 |       
|               |                                     |                                                                              |        | (Unaudited) |     |   | 2001        |       
|               |                                     |                                                                              |        |             |     |   |             |       
|(in Millions)  |                                     |                                                                              |        |             |     |   |             |       
|Assets         |                                     |                                                                              |        |             |     |   |             |       
|Current Assets |                                     |                                                                              |        |             |     |   |             |       
|               | Cash and cash equivalents           |                                                                              | $      | 20          |     |   | $           | 215    |    
|               | Restricted cash                     |                                                                              |        | 73          |     |   |             | 68     |    
|               | Accounts receivable                 |                                                                              |        |             |     |   |             |        |    
|               |                                     | Customer (less allowance for doubtful accounts of $40 and
$27, respectively) |        |             | 390 |   |             |        | 356 | 
|               |                                     | Accrued unbilled revenues                                                    |        |             | 178 |   |             |        | 130 | 
|               |                                     | Other                                                                        |        |             | 88  |   |             |        | 95  | 
|               | Inventories                         |                                                                              |        |             |     |   |             |        |    
|               |                                     | Fuel                                                                         |        |             | 162 |   |             |        | 162 | 
|               |                                     | Materials and supplies                                                       |        |             | 125 |   |             |        | 127 | 
|               | Other                               |                                                                              |        | 43          |     |   |             | 12     |    
|               |                                     |                                                                              |        |             |     |  
|               |                                     |                                                                              | 1,079  |             |     |   | 1,165       |       
|               |                                     |                                                                              |        |             |     |  
|Investments    |                                     |                                                                              |        |             |     |   |             |       
|               | Nuclear decommissioning trust funds |                                                                              |        | 413         |     |   |             | 417    |    
|               | Other                               |                                                                              |        | 100         |     |   |             | 97     |    
|               |                                     |                                                                              |        |             |     |  
|               |                                     |                                                                              | 513    |             |     |   | 514         |       
|               |                                     |                                                                              |        |             |     |  
|Property       |                                     |                                                                              |        |             |     |   |             |       
|               | Property, plant and equipment       |                                                                              |        | 11,626      |     |   |             | 11,353 |    
|               | Property under capital leases       |                                                                              |        | 220         |     |   |             | 219    |    
|               |                                     |                                                                              |        |             |     |  
|               |                                     |                                                                              | 11,846 |             |     |   | 11,572      |       
|               | Less accumulated depreciation       |                                                                              |        | (5,186      | )   |   |             | (5,010 | )  
|               |                                     |                                                                              |        |             |     |  
|               |                                     |                                                                              | 6,660  |             |     |   | 6,562       |       
|               |                                     |                                                                              |        |             |     |  
|Other Assets   |                                     |                                                                              |        |             |     |   |             |       
|               | Regulatory assets                   |                                                                              |        | 1,130       |     |   |             | 1,138  |    
|               | Securitized regulatory assets       |                                                                              |        | 1,656       |     |   |             | 1,692  |    
|               | Prepaid pensions                    |                                                                              |        | 109         |     |   |             | 106    |    
|               | Other                               |                                                                              |        | 80          |     |   |             | 76     |    
|               |                                     |                                                                              |        |             |     |  
|               |                                     |                                                                              | 2,975  |             |     |   | 3,012       |       
|               |                                     |                                                                              |        |             |     |  
|Total Assets   |                                     | $                                                                            | 11,227 |             |     | $ | 11,253      |       
|               |                                     |                                                                              |        |             |     |  

See Notes to Consolidated Financial Statements (Unaudited)

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##### Table of Contents



The Detroit Edison Company
Consolidated Statement of Financial Position

|                                           |                                                                                                           |   |             |       |   |             |        |       |  
|------------------------------------------ | --------------------------------------------------------------------------------------------------------- | - | ----------- | ----- | - | ----------- | ------ | ----- | -
|                                           |                                                                                                           |   | June 30     |       |   |             |        |      
|                                           |                                                                                                           |   | 2002        |       |   | December 31 |       
|                                           |                                                                                                           |   | (Unaudited) |       |   | 2001        |       
|                                           |                                                                                                           |   |             |       |   |             |       
|(in Millions, Except Shares)               |                                                                                                           |   |             |       |   |             |        |      
|Liabilities and Shareholders Equity       |                                                                                                           |   |             |       |   |             |        |      
|Current Liabilities                        |                                                                                                           |   |             |       |   |             |        |      
|                                           | Accounts payable                                                                                          |   | $           | 249   |   |             | $      | 303   |  
|                                           | Accrued interest                                                                                          |   |             | 91    |   |             |        | 85    |  
|                                           | Dividends payable                                                                                         |   |             | 74    |   |             |        | 74    |  
|                                           | Accrued payroll                                                                                           |   |             | 88    |   |             |        | 89    |  
|                                           | Short-term borrowings                                                                                     |   |             | 200   |   |             |        |      |  
|                                           | Deferred income taxes                                                                                     |   |             | 161   |   |             |        | 121   |  
|                                           | Current portion long-term debt, including capital leases                                                  |   |             | 375   |   |             |        | 215   |  
|                                           | Liabilities from risk management activities                                                               |   |             | 33    |   |             |        | 36    |  
|                                           | Other                                                                                                     |   |             | 178   |   |             |        | 291   |  
|                                           |                                                                                                           |   |             |       |   |            
|                                           |                                                                                                           |   | 1,449       |       |   |             | 1,214  |      
|                                           |                                                                                                           |   |             |       |   |            
|Other Liabilities                          |                                                                                                           |   |             |       |   |             |        |      
|                                           | Deferred income taxes                                                                                     |   |             | 1,746 |   |             |        | 1,749 |  
|                                           | Unamortized investment tax credit                                                                         |   |             | 152   |   |             |        | 156   |  
|                                           | Nuclear decommissioning                                                                                   |   |             | 413   |   |             |        | 417   |  
|                                           | Other                                                                                                     |   |             | 445   |   |             |        | 461   |  
|                                           |                                                                                                           |   |             |       |   |            
|                                           |                                                                                                           |   | 2,756       |       |   |             | 2,783  |      
|                                           |                                                                                                           |   |             |       |   |            
|Long-Term Debt                             |                                                                                                           |   |             |       |   |             |        |      
|                                           | Mortgage bonds, notes and other                                                                           |   |             | 2,836 |   |             |        | 3,038 |  
|                                           | Securitization bonds                                                                                      |   |             | 1,625 |   |             |        | 1,673 |  
|                                           | Capital lease obligations                                                                                 |   |             | 85    |   |             |        | 87    |  
|                                           |                                                                                                           |   |             |       |   |            
|                                           |                                                                                                           |   | 4,546       |       |   |             | 4,798  |      
|                                           |                                                                                                           |   |             |       |   |            
|Contingencies (Note 4)                     |                                                                                                           |   |             |       |   |             |        |      
|Shareholders Equity                       |                                                                                                           |   |             |       |   |             |        |      
|                                           | Common stock, $10 par value, 400,000,000 shares
authorized, and 134,287,832 shares
issued and outstanding |   |             | 1,343 |   |             |        | 1,343 |  
|                                           | Premium on common stock                                                                                   |   |             | 507   |   |             |        | 507   |  
|                                           | Common stock expense                                                                                      |   |             | (44   | ) |             |        | (44   | )
|                                           | Accumulated other comprehensive loss                                                                      |   |             | (24   | ) |             |        | (23   | )
|                                           | Retained earnings                                                                                         |   |             | 694   |   |             |        | 675   |  
|                                           |                                                                                                           |   |             |       |   |            
|                                           |                                                                                                           |   | 2,476       |       |   |             | 2,458  |      
|                                           |                                                                                                           |   |             |       |   |            
|Total Liabilities and Shareholders Equity |                                                                                                           | $ | 11,227      |       |   | $           | 11,253 |      
|                                           |                                                                                                           |   |             |       |   |            

See Notes to Consolidated Financial Statements (Unaudited)

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##### Table of Contents






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

|                                                     |                                                                            |                                            |                            |      |                  |      |    |       |      |     |  
|---------------------------------------------------- | -------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ---- | ---------------- | ---- | -- | ----- | ---- | --- | -
|                                                     |                                                                            |                                            |                            |      | Six Months Ended |     
|                                                     |                                                                            |                                            |                            |      | June 30          |     
|                                                     |                                                                            |                                            |                            |      |                  |     
|                                                     |                                                                            |                                            |                            |      | 2002             |      |    | 2001  |     
|                                                     |                                                                            |                                            |                            |      |                  |      |    |       |     
|(in Millions)                                        |                                                                            |                                            |                            |      |                  |      |    |      
|Operating Activities                                 |                                                                            |                                            |                            |      |                  |      |    |      
|                                                     | Net Income                                                                 |                                            | $                          | 167  |                  |      | $  | 36    |     
|                                                     | Adjustments to reconcile net income to net cash from
operating activities: |                                            |                            |      |                  |      |    |       |     
|                                                     |                                                                            | Depreciation and amortization              |                            |      | 285              |      |    |       | 334  |    
|                                                     |                                                                            | Merger and restructuring charge            |                            |      |                 |      |    |       | 150  |    
|                                                     |                                                                            | Changes in current assets and liabilities: |                            |      |                  |      |    |       |      |    
|                                                     |                                                                            |                                            | Accounts receivable        |      |                  | (72  | )  |       |      | 45  |  
|                                                     |                                                                            |                                            | Inventories                |      |                  | 2    |    |       |      | 15  |  
|                                                     |                                                                            |                                            | Prepaid pensions           |      |                  | (3   | )  |       |      | (17 | )
|                                                     |                                                                            |                                            | Prepaid property taxes     |      |                  | (29  | )  |       |      | (29 | )
|                                                     |                                                                            |                                            | Payables                   |      |                  | (36  | )  |       |      | (64 | )
|                                                     |                                                                            |                                            | Risk
management activities |      |                  |     |    |       |      | 51  |  
|                                                     |                                                                            |                                            | Other                      |      |                  | (105 | )  |       |      | 81  |  
|                                                     |                                                                            |                                            |                            |      |                  |     
|                                                     |                                                                            | Net cash from operating activities         |                            |      | 209              |      |    |       | 602  |    
|                                                     |                                                                            |                                            |                            |      |                  |     
|Investing Activities                                 |                                                                            |                                            |                            |      |                  |      |    |      
|                                                     | Plant and equipment expenditures                                           |                                            |                            | (313 | )                |      |    | (287  | )   
|                                                     | Restricted cash for debt redemptions                                       |                                            |                            | (6   | )                |      |    | (30   | )   
|                                                     | Other investments                                                          |                                            |                            | (44  | )                |      |    | (172  | )   
|                                                     |                                                                            |                                            |                            |      |                  |     
|                                                     |                                                                            | Net cash used for investing activities     |                            |      | (363             | )    |    |       | (489 | )  
|                                                     |                                                                            |                                            |                            |      |                  |     
|Financing Activities                                 |                                                                            |                                            |                            |      |                  |      |    |      
|                                                     | Issuance of long-term debt                                                 |                                            |                            |     |                  |      |    | 1,750 |     
|                                                     | Redemption of long-term debt                                               |                                            |                            | (87  | )                |      |    | (615  | )   
|                                                     | Short-term borrowings, net                                                 |                                            |                            | 200  |                  |      |    | (232  | )   
|                                                     | Capital lease obligations                                                  |                                            |                            | (6   | )                |      |    | (11   | )   
|                                                     | Repurchase of common stock                                                 |                                            |                            |     |                  |      |    | (848  | )   
|                                                     | Dividends on common stock                                                  |                                            |                            | (148 | )                |      |    | (159  | )   
|                                                     |                                                                            |                                            |                            |      |                  |     
|                                                     |                                                                            | Net cash used for financing activities     |                            |      | (41              | )    |    |       | (115 | )  
|                                                     |                                                                            |                                            |                            |      |                  |     
|Net Decrease in Cash and Cash Equivalents            |                                                                            |                                            | (195                       | )    |                  |      | (2 | )    
|Cash and Cash Equivalents at Beginning of the Period |                                                                            |                                            | 215                        |      |                  |      | 24 |      
|                                                     |                                                                            |                                            |                            |      |                  |     
|Cash and Cash Equivalents at End of the Period       |                                                                            | $                                          | 20                         |      |                  | $    | 22 |      
|                                                     |                                                                            |                                            |                            |      |                  |     
|Supplementary Cash Flow Information                  |                                                                            |                                            |                            |      |                  |      |    |      
|                                                     | Interest paid (excluding interest capitalized)                             |                                            | $                          | 150  |                  |      | $  | 122   |     
|                                                     | Income taxes paid                                                          |                                            |                            | 55   |                  |      |    | 80    |     

See Notes to Consolidated Financial Statements (Unaudited)

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

|                                                           |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |             |   |     |   |  |   |       |  
|---------------------------------------------------------- |  | ------------ | ------- |  | ------ |  | ----- | ------ |  | ------- | -------- |  |  | ------------- | ----- | - | ---- | - | ---- | ----- | ----------- | - | --- | - |  | - | ----- | -
|                                                           |  |              |         |  |        |  |       |        |  | Premium |          |  |  |               |       |   |      |   |      |       | Accumulated |   |     |   |  |  
|                                                           |  | Common Stock |         |  | On     |  |       | Common |  |         |          |  |  |               | Other |   |      |   |      |      
|                                                           |  |              |         |  | Common |  |       | Stock  |  |         | Retained |  |  | Comprehensive |       |   |      |   |     
|                                                           |  | Shares       |         |  | Amount |  |       | Stock  |  |         | Expense  |  |  | Earnings      |       |   | Loss |   |      | Total |            
|                                                           |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|(Dollars in Millions,
Shares in Thousands)                 |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |             |   |     |   |  |   |       |  
|Balance, January 1, 2002                                   |  |              | 134,288 |  |        |  | 1,343 |        |  |         | 507      |  |  |               | (44   | ) |      | $ | 675  |       |             | $ | (23 | ) |  | $ | 2,458 |  
|                                                           |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|Net income                                                 |  |              |        |  |        |  |      |        |  |         |         |  |  |               |      |   |      |   | 167  |       |             |   |    |   |  |   | 167   |  
|Dividends declared on
common stock                         |  |              |        |  |        |  |      |        |  |         |         |  |  |               |      |   |      |   | (148 | )     |             |   |    |   |  |   | (148  | )
|Net change in unrealized losses
on derivatives, net of tax |  |              |        |  |        |  |      |        |  |         |         |  |  |               |      |   |      |   |     |       |             |   | (1  | ) |  |   | (1    | )
|                                                           |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            
|Balance, June 30, 2002                                     |  |              | 134,288 |  |        |  | 1,343 |        |  | $       | 507      |  |  | $             | (44   | ) |      | $ | 694  |       |             | $ | (24 | ) |  | $ | 2,476 |  
|                                                           |  |              |         |  |        |  |       |        |  |         |          |  |  |               |       |   |      |   |      |       |            

The following table displays comprehensive income for six-month periods in 2002
and 2001:

|                                      |                                               |                                                                           |     |    |      |   |    |      |     |   | 
|------------------------------------- | --------------------------------------------- | ------------------------------------------------------------------------- | --- | -- | ---- | - | -- | ---- | --- | - | 
|                                      |                                               |                                                                           |     |    | 2002 |   |    | 2001 |    
|                                      |                                               |                                                                           |     |    |      |   |    |      |    
|(in Millions)                         |                                               |                                                                           |     |    |      |   |    |     
|Net income                            |                                               | $                                                                         | 167 |    |      | $ | 36 |     
|                                      |                                               |                                                                           |     |    |      |  
|Other comprehensive loss, net of tax: |                                               |                                                                           |     |    |      |   |    |     
|                                      | Net unrealized gains (losses) on derivatives: |                                                                           |     |    |      |   |    |      |    
|                                      |                                               | Cumulative effect of a change in accounting principle, net of taxes of $6 |     |    |     |   |    |      | 13  |  
|                                      |                                               | Losses arising during the year, net of taxes of $3 and $25, respectively  |     |    | (6   | ) |    |      | (47 | )
|                                      |                                               | Amounts reclassified to earnings, net of taxes of $3 and $2, respectively |     |    | 5    |   |    |      | 3   |  
|                                      |                                               |                                                                           |     |    |      |  
|                                      | Total other comprehensive loss                |                                                                           |     | (1 | )    |   |    | (31  | )  
|                                      |                                               |                                                                           |     |    |      |  
|Comprehensive income                  |                                               | $                                                                         | 166 |    |      | $ | 5  |     
|                                      |                                               |                                                                           |     |    |      |  

See Notes to Consolidated Financial Statements (Unaudited)

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

NOTE 1  GENERAL

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

The accompanying consolidated financial statements were prepared in conformity
with accounting principles generally accepted in the United States of America.
In connection with their preparation, management makes estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues
and expenses, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.

The consolidated financial statements are unaudited, but in the opinion of the
Companys management, include all adjustments necessary for a fair statement of
the results for the interim periods. Financial results for this interim period
are not necessarily indicative of results that may be expected for any other
interim period or for the fiscal year.

Certain prior year balances have been reclassified to conform to the current
years presentation.

NOTE 2  MERGER AND RESTRUCTURING CHARGES

On May 31, 2001, Detroit Edisons parent company, DTE Energy, completed the
acquisition of MCN Energy. Detroit Edison incurred merger-related charges and
restructuring charges associated with the acquisition. The merger-related
charges of $10 million ($7 million after tax) in the 2001 three-month period
and $12 million ($8 million after tax) in the 2001 six-month period, consisted
primarily of system integration, relocation, legal, accounting and consulting
costs. Restructuring charges of $163 million ($106 million after tax) in the
2001 three-month period, were primarily associated with a work force reduction
plan. The plan included early retirement incentives along with voluntary
separation arrangements for 890 employees, primarily in overlapping corporate
support functions. The merger and restructuring costs had the effect of
decreasing Detroit Edisons earnings by $173 million ($113 million after tax)
and $175 million ($114 million after tax) for the 2001 three- and six-month
periods, respectively.

NOTE 3  REGULATORY MATTERS

Electric Industry Restructuring

The MPSC initiated a case to determine the methodology of calculating net
stranded costs as required by Public Act (PA) 141. As a result of an MPSC
order in December 2001, Detroit Edison would recover the net stranded costs
associated with its electric generation operations. Specifically, there would
be an annual filing with the MPSC comparing actual revenues from generation
services to the revenue requirements, including an allowance for the cost of
capital, to recover the costs of generation services. The MPSC, in its orders,
determined that Detroit Edison had no stranded costs using 2000 data, and
consequently established a zero 2002 transition charge. The MPSC authorized
Detroit Edison to establish a deferred regulatory asset in order to recover its
2002 incurred stranded cost in a subsequent annual net stranded cost filing.
The MPSC also determined that Detroit Edison should provide a full and
offsetting credit for the securitization and tax charges applied to electric
Customer Choice bills in 2002 and maintained an additional credit on electric

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Notes to Consolidated Financial
Statements (Unaudited)

Customer Choice bills equivalent to the 5% rate reduction benefiting full
service customers, both funded by savings derived from securitization. This
order combined with lower wholesale power prices has encouraged additional
customer participation in the electric Customer Choice program and has resulted
in the loss of margins from providing generation services. In May 2002, the
MPSC denied Detroit Edisons request for rehearing and clarification on certain
aspects of the order. In June 2002, Detroit Edison filed an appeal of the MPSC
order at the Michigan Court of Appeals, challenging the legality of the MPSC
order.

In May 2002, Detroit Edison submitted its 2002 annual net stranded cost filing
with the MPSC. The filing provides refinements to the MPSC Staffs calculation
of net stranded costs, seeks more timely recovery of stranded costs and
responds to the issue of securitization offsets and rate equalization credits.
Detroit Edisons filing supports the following conclusions: (i) Detroit Edison
had no recoverable stranded costs in 2000, however when 2001 data is
incorporated into the approved methodology, Detroit Edison has recoverable
stranded costs attributable to electric Customer Choice of $13 million for
2001; (ii) Detroit Edison requested the recovery of 2001 net stranded costs through use of
excess residual securitization savings; (iii) Detroit Edison expects to incur
additive net stranded costs during 2002 and 2003 as a result of increased
electric Customer Choice participation; and (iv) a pro-forma transition charge
should be approved for billing during the remainder of 2002 and for 2003 to
eliminate the time lag between the incidence and recovery of stranded costs
inherent in the previously approved methodology.

In another December 2001 order, the MPSC finalized the prices, terms and
conditions contained in the Retail Access Service Tariff (RAST). Detroit
Edison requested rehearing and clarification on certain aspects of the order.
In an order issued in April 2002, the MPSC modified its December 2001 order
approving Detroit Edisons RAST and reduced the requirements imposed on Detroit
Edison in the December 2001 order concerning meter installation, meter reading
and computer system enhancements for customers that elect to participate in the
electric Customer Choice program.

In several orders issued in June 2000, the MPSC determined that adjusting rates
for changes in fuel and purchased power expenses through continuance of the
PSCR clause would be inconsistent with the rate
freeze required by PA 141. Detroit Edison was not permitted to collect
the 1998 PSCR under-recovery of $9 million, plus accrued interest of $3
million. Also, Detroit Edison was not required to refund approximately $55
million of liabilities for over-recoveries of PSCR expenses for 1999 and 2000,
and disallowances under the Fermi 2 performance standard mechanism. In January
and March 2002, the Michigan Court of Appeals rejected appeals and motions for
rehearing filed by parties opposing the MPSCs actions in this proceeding. In
March 2002, the Michigan Attorney General applied for leave to appeal at the
Michigan Supreme Court. The court has not yet determined whether or not it
will hear the case.

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Notes to Consolidated Financial
Statements (Unaudited)

Other

In accordance with a November 1997 MPSC order, Detroit Edison reduced rates by
$53 million annually to reflect the scheduled reduction in the revenue
requirement for Fermi 2. The $53 million reduction was effective in January
1999. In addition, the November 1997 MPSC order authorized the deferral of $30
million of storm damage costs and amortization and recovery of the costs over a
24-month period commencing January 1998. After various legal appeals, the
Michigan Court of Appeals remanded back to the MPSC for hearing the November
1997 order. In December 2000, the MPSC issued an order reopening the case for
hearing. The parties in the case have agreed to a stipulation of fact and
waiver of hearing. In June 2002, the MPSC issued an order modifying in part,
and reaffirming in part, previous orders which allowed Detroit Edison to
amortize and collect in rates the storm damage costs incurred in 1997. The
MPSC modified its 1997 order regarding the calculation of the storm damage
costs, and in doing so ordered Detroit Edison to refund approximately $1.5
million after January 1, 2004. The 2004 refund will also include interest
accrued from January 1, 2000 at Detroit Edisons authorized rate of return. In
July 2002, the Michigan Attorney General filed a claim of appeal at the
Michigan Court of Appeals regarding the June 2002 MPSC order.

Detroit Edison is unable to predict the outcome of the regulatory matters
discussed herein. Resolution of these matters is dependent upon future MPSC
orders, which may impact the financial position and results of operations of
Detroit Edison.

NOTE 4  CONTINGENCIES

Personal Property Taxes

Detroit Edison and other Michigan utilities have asserted that Michigans
valuation tables result in the substantial overvaluation of utility personal
property. Valuation tables established by the Michigan State Tax Commission
(STC) are used to determine the taxable value of personal property based on the
propertys age. In November 1999, the STC approved new valuation tables that
more accurately recognize the value of a utilitys personal property. The new
tables became effective in 2000 and are currently used to calculate property
tax expense. However, several local taxing jurisdictions have taken legal
action attempting to prevent the STC from implementing the new valuation tables
and have continued to prepare assessments based on the superseded tables. The
legal actions regarding the appropriateness of the new tables were before the
Michigan Tax Tribunal (MTT) which, in April 2002, issued its decision
essentially affirming the validity of the STCs new tables. In June 2002,
petitioners in the case filed an appeal of the MTTs decision with the Michigan
Court of Appeals.

Other

Detroit Edison purchases and sells electricity to numerous companies operating
in the steel, automotive, energy and retail industries. During 2001 and 2002,
a number of customers have filed for bankruptcy protection under Chapter 11 of
the U.S. Bankruptcy Code, including certain Enron Corporation affiliates and
National Steel Company. Management regularly reviews contingent matters
relating to purchase and sale contracts and records provisions for amounts
considered probable of loss. Management believes its previously accrued
amounts are adequate for losses that are probable of occurring. The final
resolution of these matters are not expected to have a material effect on
Detroit Edisons financial statements in the period they are resolved.

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Notes to Consolidated Financial
Statements (Unaudited)

NOTE 5  DEBT COVENANTS

Detroit Edisons bank financing arrangements require it to maintain a debt to
total capitalization ratio (as defined) of no more than .65 to 1 and an
earnings before interest, taxes, depreciation and amortization (EBITDA) to
interest ratio of no less than 2 to 1. Additionally, financing arrangements
contain cross-default provisions which would occur if Detroit Edison fails to
pay principal or interest on a timely basis. Detroit Edison is currently in
compliance with these financial covenants.

NOTE 6  NEW ACCOUNTING PRONOUNCEMENTS

Goodwill and Other Intangible Assets- Effective January 1, 2002, Detroit
Edison adopted SFAS No. 142, Goodwill and Other Intangible Assets, which
addresses the financial accounting and reporting standards for the acquisition
of intangible assets outside of a business combination and for goodwill and
other intangible assets subsequent to their acquisition. As of the date of
adoption, Detroit Edison had no goodwill.

In connection with the adoption of SFAS No. 142, Detroit Edison also reassessed
the useful lives and the classification of identifiable intangible assets and
determined that they continue to be appropriate. Detroit Edisons intangible
assets consist primarily of software and are subject to amortization.
Intangible assets amortization expense was approximately $9 million and $18
million in the second quarter and six-month period, respectively, compared with
approximately $10 million and $19 million for the comparable 2001 periods.
There were no material acquisitions of intangible assets during the 2002
six-month period. The gross carrying amount and accumulated amortization of
intangible assets at June 30, 2002 were $337 million and $251 million,
respectively. Amortization expense of intangible assets is estimated to be $36
million annually for 2002 through 2006.

Asset Retirement Obligations- In June 2001, the FASB issued SFAS No. 143,
Accounting for Asset Retirement Obligations. This statement requires that
the fair value of an asset retirement obligation be recognized in the period in
which it is incurred. The associated asset retirement costs would be
capitalized as part of the carrying amount of the long-lived asset. It would
apply to legal obligations associated with the retirement of long-lived assets
that result from the acquisition, construction, development and (or) the normal
operation of a long-lived asset. This statement is effective for financial
statements issued for fiscal years beginning after June 15, 2002. Detroit
Edison will adopt this statement in January 2003 and has not yet determined the
impact of this statement on the consolidated financial statements.

Long-Lived Assets- On January 1, 2002, Detroit Edison adopted SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS No. 144
supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of, but retains the fundamental
provisions for recognizing and measuring impairment of long-lived assets to be
held and used or disposed of by sale. The statement also supersedes the
accounting and reporting provisions for the disposal of a segment of a
business. SFAS No. 144 eliminates the conflict between accounting models for
treating the disposition of long-lived assets that existed between SFAS No. 121
and the guidance for a segment of a business accounted for as a discontinued
operation by adopting the methodology established in SFAS No. 121, and also
resolves implementation issues related to SFAS No. 121. The adoption of the
statement did not have an impact on the consolidated financial statements of
Detroit Edison.

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Notes to Consolidated Financial
Statements (Unaudited)

NOTE 6  SEGMENT INFORMATION

During 2002, Detroit Edisons parent company, DTE Energy, realigned its
financial reporting structure into strategic business units that provide
various regulated and non-regulated energy services. The realignment resulted
in the following two reportable segments for Detroit Edison. Inter-segment
revenues are not material.

|                                             |       |      |                    |     |      |                  |      |      |   |   |       |       |  |   |       |       | 
|-------------------------------------------- | ----- | ---- | ------------------ | --- | ---- | ---------------- | ---- | ---- | - | - | ----- | ----- |  | - | ----- | ----- | 
|                                             |       |      | Three Months Ended |     |      | Six Months Ended |     
|                                             |       |      | June 30            |     |      | June 30          |     
|                                             |       |      |                    |     |      |                  |     
|(in Millions)                                |       | 2002 |                    |     | 2001 |                  |      | 2002 |   |   | 2001  |      
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|Operating Revenues                           |       |      |                    |     |      |                  |      |      |   |   |       |       |  |   |       |      
|Energy Resources                             |       | $    | 654                |     |      | $                | 704  |      |   | $ | 1,271 |       |  | $ | 1,407 |      
|Energy Distribution                          |       |      | 308                |     |      |                  | 288  |      |   |   | 621   |       |  |   | 609   |      
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|                                             | Total |      | $                  | 962 |      |                  | $    | 992  |   |   | $     | 1,892 |  |   | $     | 2,016 | 
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|Net Income (Loss)                            |       |      |                    |     |      |                  |      |      |   |   |       |       |  |   |       |      
|Energy Resources                             |       | $    | 57                 |     |      | $                | 12   |      |   | $ | 128   |       |  | $ | 88    |      
|Energy Distribution                          |       |      | 17                 |     |      |                  | 24   |      |   |   | 39    |       |  |   | 62    |      
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|                                             |       |      | 74                 |     |      |                  | 36   |      |   |   | 167   |       |  |   | 150   |      
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|Merger and Restructuring Charges, net of tax |       |      |                   |     |      |                  | (113 | )    |   |   |      |       |  |   | (114  | )    
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      
|                                             | Total |      | $                  | 74  |      |                  | $    | (77  | ) |   | $     | 167   |  |   | $     | 36    | 
|                                             |       |      |                    |     |      |                  |      |      |   |   |       |      

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INDEPENDENT ACCOUNTANTS REPORT

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

We have reviewed the accompanying condensed consolidated statement of financial
position of The Detroit Edison Company and subsidiaries as of June 30, 2002,
and the related condensed consolidated statement of operations for the
three-month and six-month periods ended June 30, 2002 and 2001, the condensed
consolidated statement of cash flows for the six-month periods ended June 30,
2002 and 2001, and the condensed consolidated statement of changes in
shareholders equity for the six-month period ended June 30, 2002. These
financial statements are the responsibility of The Detroit Edison Companys
management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and of making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with auditing standards generally accepted in the United States
of America, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express such
an opinion.

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

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated statement of
financial position of The Detroit Edison Company and subsidiaries as of
December 31, 2001, and the related consolidated statements of operations, cash
flows and changes in shareholders equity for the year then ended (not
presented herein); and in our report dated February 26, 2002, we expressed an
unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed consolidated
statement of financial position as of December 31, 2001 is fairly stated, in
all material respects, in relation to the consolidated statement of financial
position from which it has been derived.

/s/ DELOITTE & TOUCHE LLP

Detroit, Michigan
July 30, 2002

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Exhibits and Reports on Form 8-K



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



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

|        |  |                                                           |  |  |  | 
|------- |  | --------------------------------------------------------- |  |  |  | 
|Exhibit |  |                                                           |  |  |  | 
|Number  |  | Description                                               |  |  |  | 
|        |  |                                                           |  |  |  | 
|15-21   |  | Awareness Letter of Deloitte & Touche LLP.               
|        |  |                                                          
|99-1    |  | Chief Executive Officer Certification of Periodic Report.
|        |  |                                                          
|99-2    |  | Chief Financial Officer Certification of Periodic Report.
|        |  |                                                          
|(ii)    |  | Exhibits incorporated herein by reference.               
|        |  |                                                          
|        |  | None.                                                    
|        |  |                                                          
|(b)     |  | Reports on Form 8-K.                                     
|        |  |                                                          
|        |  | None.                                                    

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|      |  |                 |  |     |                               | 
|----- |  | --------------- |  | --- | ----------------------------- | 
|      |  |                 |  |     | THE DETROIT EDISON COMPANY   
|      |  |                 |  |     |                               | 
|Date: |  | August 14, 2002 |  | By: | /s/ DANIEL G. BRUDZYNSKI     
|      |  |                 |  |     |                              
|      |  |                 |  |     | Daniel G. Brudzynski         
|      |  |                 |  |     | Chief Accounting Officer,    
|      |  |                 |  |     | Vice President and Controller

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The Detroit Edison Company
Quarterly Report on Form 10-Q for Quarter Ended June 30, 2002
File No.1-2198

Exhibit Index

|        |  |                                                                                               
|------- |  | ----------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                               
|Number  |  | Description                                                                                   
|        |  |                                                                                               
|15.21   |  | Awareness Letter of Deloitte & Touche LLP regarding their report
Report dated August 14, 2002.
|        |  |                                                                                               
|99.l    |  | Chief Executive
Officer Certification of Periodic Report.                                     
|        |  |                                                                                               
|99.2    |  | Chief Financial
Officer Certification of Periodic Report.