<PAGE>   1
 ===============================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                ----------------
                                                            
                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                    FOR THE QUARTER ENDED SEPTEMBER 30, 1998


<TABLE>
<CAPTION>


 COMMISSION                   REGISTRANTS; STATE OF INCORPORATION;                I.R.S. EMPLOYER
 FILE NUMBER                  ADDRESS; AND TELEPHONE NUMBER                       IDENTIFICATION NO.
 -----------                  -----------------------------                       ------------------
<S>                           <C>                                                 <C>
 1-11607                      DTE Energy Company                                  38-3217752
                              (a Michigan corporation)
                              2000 2nd Avenue
                              Detroit, Michigan 48226-1279
                              313-235-4000


 1-2198                       The Detroit Edison Company                          38-0478650
                              (a Michigan corporation)
                              2000 2nd Avenue
                              Detroit, Michigan 48226-1279
                              313-235-8000

</TABLE>




 Indicate by check mark whether the registrants (1) have 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
 registrants were required to file such reports), and (2) have been subject to
 such filing requirements for the past 90 days.                  YES X NO __




 At September 30, 1998, 145,075,152 shares of DTE Energy's Common Stock,
 substantially all held by non-affiliates, were outstanding.

================================================================================
 


<PAGE>   2


                                         
                               DTE ENERGY COMPANY
                                       AND
                           THE DETROIT EDISON COMPANY
                                    FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 1998

This document contains the Quarterly Reports on Form 10-Q for the quarter ended
September 30, 1998 for each of DTE Energy Company and The Detroit Edison
Company. Information contained herein relating to an individual registrant is
filed by such registrant on its own behalf. Accordingly, except for its
subsidiaries, The Detroit Edison Company makes no representation as to
information relating to any other companies affiliated with DTE Energy Company.


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                          Page
                                                                                          ----
<S>                                                                                        <C>
Definitions................................................................................3

Quarterly Report on Form 10-Q for DTE Energy Company:
    Part I - Financial Information.........................................................4
             Item 1 - Condensed Consolidated Financial Statements (Unaudited)..............4
                      Notes to Condensed Consolidated Financial
                      Statements (Unaudited)..............................................15
                      Independent Accountants' Report.....................................17
             Item 2 - Management's Discussion and Analysis of Financial
                      Condition and Results of Operations.................................18
    Part II- Other Information............................................................26
             Item 5 -  Other Information..................................................26

Quarterly Report on Form 10-Q for The Detroit Edison Company:
    Part I - Financial Information........................................................27
             Item 1 - Condensed Consolidated Financial Statements (Unaudited).............27
             Item 2 - Management's Discussion and Analysis of Financial
                      Condition and Results of Operations.................................27
    Part II- Other Information............................................................27
             Item 5 - Other Information...................................................27

Quarterly Reports on Form 10-Q for DTE Energy Company and The Detroit Edison
  Company:
             Item 6 - Exhibits and Reports on Form 8-K....................................28

Signature Page to DTE Energy Company Quarterly Report on Form 10-Q........................37
Signature Page to The Detroit Edison Company Quarterly Report on Form 10-Q................38
</TABLE>


                                       2

<PAGE>   3


                                   DEFINITIONS

<TABLE>
<CAPTION>

<S><C>
Annual Report..............1997 Annual Report to the Securities and Exchange Commission on
                             Form 10-K for DTE Energy Company or The Detroit Edison Company,
                             as the case may be

Annual Report Notes........Notes to Consolidated Financial
                             Statements appearing on pages 39 through 61 and 65
                             through 67 of the 1997 Annual Report to the
                             Securities and Exchange Commission on Form 10-K for
                             DTE Energy Company and The Detroit Edison Company

Company....................DTE Energy Company and Subsidiary Companies

Detroit Edison.............The Detroit Edison Company (a wholly owned subsidiary of DTE
                             Energy Company) and Subsidiary Companies

Direct Access..............Gives all retail customers equal opportunity to utilize the
                             transmission system which results in access to competitive
                             generation resources

DTE Capital................DTE Capital Corporation (a wholly owned subsidiary of DTE Energy
                             Company)

EPA........................United States Environmental Protection Agency

kWh........................Kilowatthour

MPSC.......................Michigan Public Service Commission

MWh........................Megawatthour

Note(s)....................Note(s) to Condensed Consolidated Financial Statements (Unaudited)
                             appearing herein
                             

PSCR.......................Power Supply Cost Recovery

Quarterly Report...........Quarterly Report to the
                             Securities and Exchange Commission on Form 10-Q for
                             DTE Energy Company or The Detroit Edison Company,
                             as the case may be, for the quarters ended March
                             31, 1998 and June 30, 1998

Quarterly Report Notes.....Notes to Condensed Consolidated
                             Financial Statements (Unaudited) appearing on pages
                             15 through 16 and pages 15 through 18 of the
                             Quarterly Report to the Securities and Exchange
                             Commission on Form 10-Q for the quarters ended
                             March 31, 1998 and June 30, 1998, respectively, for
                             DTE Energy Company and The Detroit Edison Company

QUIDS......................Quarterly Income Debt Securities

Registrant.................Company or Detroit Edison, as the case may be
</TABLE>


                                       3

<PAGE>   4


        

                                          
              QUARTERLY REPORT ON FORM 10-Q FOR DTE ENERGY COMPANY
                         PART I - FINANCIAL INFORMATION

        ITEM 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED):

                               DTE ENERGY COMPANY
             CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                     (In Millions, Except Per Share Amounts)

<TABLE>
<CAPTION>

                                                 Three Months Ended            Nine Months Ended
                                                    September 30                 September 30
                                                 -------------------------------------------------
                                                 1998          1997           1998          1997
                                                 -------------------------------------------------
<S>                                           <C>            <C>           <C>             <C>
OPERATING REVENUES                            $  1,199       $  1,030      $  3,208        $ 2,791      
--------------------------------------------------------------------------------------------------

OPERATING EXPENSES
    Fuel and purchased power                       359            228           852            623
    Operation and maintenance                      338            290           906            764
    Depreciation and amortization                  169            159           496            489
    Taxes other than income                         67             68           207            203
--------------------------------------------------------------------------------------------------
        Total Operating Expenses                   933            745         2,461          2,079
--------------------------------------------------------------------------------------------------

OPERATING INCOME                                   266            285           747            712
--------------------------------------------------------------------------------------------------

INTEREST EXPENSE AND OTHER
    Interest expense                                83             76           236            219
    Preferred stock dividends
       of subsidiary                                 1              3             6              9
    Other - net                                      4              -             9              8
--------------------------------------------------------------------------------------------------
        Total Interest Expense and Other            88             79           251            236
--------------------------------------------------------------------------------------------------

INCOME BEFORE INCOME TAXES                         178            206           496            476

Income Taxes                                        46             74           159            188
--------------------------------------------------------------------------------------------------

NET INCOME                                    $    132       $    132      $    337        $   288
==================================================================================================

AVERAGE COMMON SHARES OUTSTANDING                  145            145           145            145
--------------------------------------------------------------------------------------------------

EARNINGS PER COMMON SHARE -
  BASIC AND DILUTED                           $   0.91       $   0.91      $   2.32        $  1.98
--------------------------------------------------------------------------------------------------
</TABLE>



     See notes to condensed consolidated financial statements (unaudited).


                                       4


<PAGE>   5


                               DTE ENERGY COMPANY
           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                                  (In Millions)

<TABLE>
<CAPTION>

                                                        Three Months Ended            Nine Months Ended
                                                           September 30                 September 30
                                                      ---------------------------------------------------
                                                          1998        1997              1998      1997
                                                      ---------------------------------------------------
<S>                                                   <C>         <C>              <C>            <C>
OPERATING ACTIVITIES
  Net Income                                          $    132   $     132         $    337       $ 288
  Adjustments to reconcile net income to net cash 
     from operating activities:
      Depreciation and amortization                        169         159              496         489
      Other                                                (58)         (2)             (61)          6
      Changes in current assets and liabilities:
        Accounts receivable                                (41)         (5)             (89)        (30)
        Inventories                                         (6)         15              (36)        (10)
        Payables                                            (9)         13               51         (28)
        Other                                               95           -               44         (36)
---------------------------------------------------------------------------------------------------------
    Net cash from operating activities                     282         312             742          679
---------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
  Plant and equipment expenditures                        (391)       (108)           (632)        (535)
  Investment in limited partnership                          5           -            (195)           -
  Nuclear decommissioning trust funds                        8          (8)            (33)         (45)
  Other                                                      -           3             (11)           3
---------------------------------------------------------------------------------------------------------
    Net cash used for investing activities                (378)       (113)           (871)        (577)
---------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
  Issuance of long-term debt                               163           -             363          250
  Increase (decrease) in short-term borrowings              94        (112)            356           97
  Redemption of long-term debt                               -           -            (187)        (185)
  Redemption of preferred stock                              -           -            (100)           -
  Dividends on common stock                                (75)        (75)           (224)        (224)
  Other                                                      1           -               3            -
---------------------------------------------------------------------------------------------------------
    Net cash from (used for) financing activities          183        (187)            211          (62)
---------------------------------------------------------------------------------------------------------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS                                          87          12              82           40
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF THE PERIOD                                   94          81              99           53
---------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD        $    181   $      93         $   181        $  93
=========================================================================================================
SUPPLEMENTARY CASH FLOW INFORMATION
  Interest paid (excluding interest capitalized)      $     98   $      74         $   244        $ 212
  Income taxes paid                                         49          58             115          186
  New capital lease obligations                              4           -              52           33
</TABLE>


     See notes to condensed consolidated financial statements (unaudited).



                                       5

<PAGE>   6


                               DTE ENERGY COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
               (In Millions, Except Per Share Amounts and Shares)


<TABLE>
<CAPTION>

                                                                   September 30    December 31
                                                                       1998            1997  
                                                                   ------------    -----------
<S>                                                               <C>            <C>
ASSETS
CURRENT ASSETS
     Cash and cash equivalents                                    $         181  $          99
     Accounts receivable
         Customer (less allowance for doubtful
              accounts of $20)                                              371            305
         Accrued unbilled revenues                                          156            137
         Other                                                               82             78
     Inventories (at average cost)
         Fuel                                                               159            130
         Materials and supplies                                             181            173
     Other                                                                   57             13
                                                                  -------------  -------------
                                                                          1,187            935
                                                                  -------------  -------------

INVESTMENTS
     Nuclear decommissioning trust funds                                    272            239
     Other                                                                  252             57
                                                                  -------------  -------------
                                                                            524            296
                                                                  -------------  -------------



PROPERTY
     Property, plant and equipment                                       14,985         14,495
     Property under capital leases                                          244            256
     Nuclear fuel under capital lease                                       659            607
     Construction work in progress                                          106             16
                                                                  -------------  -------------
                                                                         15,994         15,374
                                                                  -------------  -------------
Less accumulated depreciation and amortization                            6,841          6,440
                                                                  -------------  -------------
                                                                          9,153          8,934
                                                                  -------------  -------------

OTHER ASSETS
     Regulatory assets                                                      693            856
     Other                                                                  255            202
                                                                  -------------  -------------
                                                                            948          1,058
                                                                  -------------  -------------

TOTAL ASSETS                                                      $      11,812  $      11,223
                                                                  =============  =============
</TABLE>


     See notes to condensed consolidated financial statements (unaudited).


                                       6

<PAGE>   7





<TABLE>
<CAPTION>
                                                                  September 30    December 31
                                                                      1998            1997  
                                                                  ------------    -----------
<S>                                                               <C>            <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
     Accounts payable                                             $         284  $         161
     Accrued interest                                                        46             57
     Dividends payable                                                       76             78
     Accrued payroll                                                         99             81
     Short-term borrowings                                                  399             42
     Deferred income taxes                                                   70             64
     Current portion long-term debt                                         159            205
     Current portion capital leases                                         124            110
     Other                                                                  225            219
                                                                  -------------  -------------
                                                                          1,482          1,017
                                                                  -------------  -------------

OTHER LIABILITIES
     Deferred income taxes                                                1,939          1,983
     Deferred investment tax credits                                        290            301
     Capital leases                                                         131            137
     Other                                                                  253            302
                                                                  -------------  -------------
                                                                          2,613          2,723
                                                                  -------------  -------------

LONG-TERM DEBT                                                            3,998          3,777
                                                                  -------------  -------------

SHAREHOLDERS' EQUITY
     Detroit Edison cumulative preferred stock, $100 par 
         value, 6,747,484 shares authorized, 5,207,657 
         issued, 500,000 and 1,501,223 shares
         outstanding, respectively                                           48            144
     Common stock, without par value, 400,000,000 shares
         authorized, 145,075,152 and 145,097,829 issued
         and outstanding, respectively                                    1,951          1,951
     Retained earnings                                                    1,720          1,611
                                                                  -------------  -------------
         TOTAL SHAREHOLDERS' EQUITY                                       3,719          3,706
                                                                  -------------  -------------

CONTINGENCIES (NOTE 5)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                        $      11,812  $      11,223
                                                                  =============  =============
</TABLE>


     See notes to condensed consolidated financial statements (unaudited).


                                       7


<PAGE>   8



       




                               DTE ENERGY COMPANY
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
          (In Millions, Except Per Share Amounts; Shares in Thousands)

<TABLE>
<CAPTION>


                                                                             1998
                                                                 ----------------------------
                                                                    Shares           Amount
                                                                 ----------------------------
<S>                                                                 <C>           <C>
DETROIT EDISON CUMULATIVE PREFERRED STOCK
  Balance at beginning of year                                         1,501      $       144
  Redemption of cumulative preferred stock                            (1,001)            (100)
  Preferred stock expense                                                                   4
                                                                 -----------      -----------
  Balance at September 30, 1998                                          500      $        48
---------------------------------------------------------------------------------------------

COMMON STOCK
  Balance at beginning of year                                       145,098      $     1,951
  Repurchase and retirement of common stock                              (23)               -
                                                                 ------------     -----------
  Balance at September 30, 1998                                      145,075      $     1,951
---------------------------------------------------------------------------------------------

RETAINED EARNINGS
  Balance at beginning of year                                                    $     1,611
  Net income                                                                              337
  Dividends declared on common stock ($1.545 per share)                                  (224)
  Preferred stock expense                                                                  (4)
                                                                                  ------------
  Balance at September 30, 1998                                                   $     1,720
----------------------------------------------------------------------------------------------

TOTAL SHAREHOLDERS' EQUITY                                                        $     3,719
==============================================================================================
</TABLE>


     See notes to condensed consolidated financial statements (unaudited).



                                       8

<PAGE>   9



















                        [This page intentionally left blank.]









                                       9





<PAGE>   10



  

                             THE DETROIT EDISON COMPANY
               CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                                    (In Millions)

<TABLE>
<CAPTION>


                                                        Three Months Ended              Nine Months Ended
                                                           September 30                    September 30
                                                     -------------------------------------------------------
                                                        1998          1997           1998           1997
                                                     -------------------------------------------------------
<S>                                                   <C>           <C>          <C>                <C>
OPERATING REVENUES                                    $  1,105      $    985     $   2,998          $ 2,727      
------------------------------------------------------------------------------------------------------------   

OPERATING EXPENSES
    Fuel and purchased power                               344           228           818              623
    Operation and maintenance                              249           247           719              701
    Depreciation and amortization                          162           157           486              487
    Taxes other than income                                 66            69           206              203
------------------------------------------------------------------------------------------------------------   
        Total Operating Expenses                           821           701         2,229            2,014
------------------------------------------------------------------------------------------------------------   

OPERATING INCOME                                           284           284           769              713
------------------------------------------------------------------------------------------------------------   

INTEREST EXPENSE AND OTHER
    Interest expense                                        72            69           208              210
    Other - net                                              3             2            13               11
------------------------------------------------------------------------------------------------------------   
        Total Interest Expense and Other                    75            71           221              221
------------------------------------------------------------------------------------------------------------   

INCOME BEFORE INCOME TAXES                                 209           213           548              492

Income Taxes                                                84            85           230              204
------------------------------------------------------------------------------------------------------------   

NET INCOME                                                 125           128           318              288

PREFERRED STOCK DIVIDENDS                                    1             3             6                9
------------------------------------------------------------------------------------------------------------   
NET INCOME AVAILABLE FOR COMMON STOCK                 $    124      $    125     $     312          $   279
============================================================================================================
</TABLE>

Note:   Detroit Edison's condensed consolidated financial statements (unaudited)
        are presented here for ease of reference and are not considered to be
        part of Item 1 of the Company's report.




      See notes to condensed consolidated financial statements (unaudited).

                                       10



<PAGE>   11


                           THE DETROIT EDISON COMPANY
           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                                  (In Millions)

<TABLE>
<CAPTION>

                                                               Three Months Ended         Nine Months Ended
                                                                  September 30              September 30
                                                            -------------------------------------------------
                                                                 1998        1997        1998         1997
                                                            -------------------------------------------------
<S>                                                         <C>         <C>         <C>               <C>
OPERATING ACTIVITIES
  Net Income                                                $     125   $     128   $      318        $ 288
  Adjustments to reconcile net income to net cash from 
   operating activities:
      Depreciation and amortization                               162         157          486          487
      Other                                                       (57)        (10)         (94)          35
      Changes in current assets and liabilities:
        Accounts receivable                                       (34)          3          (64)         (13)
        Inventories                                                 5          19          (29)           6
        Payables                                                  (31)         20           18          (29)
        Other                                                      97          (6)          39          (42)
-------------------------------------------------------------------------------------------------------------
    Net cash from operating activities                            267         311          674          732
-------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
  Plant and equipment expenditures                               (122)       (107)        (342)        (316)
  Nuclear decommissioning trust funds                               8          (8)         (33)         (45)
  Other                                                           (88)         (1)         (92)           7
-------------------------------------------------------------------------------------------------------------
    Net cash used for investing activities                       (202)       (116)        (467)        (354)
-------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
  Issuance of long-term debt                                        -           -          100            -
  Increase (decrease) in short-term borrowings                     18        (114)         205           62
  Redemption of long-term debt                                      -           -         (169)        (185)
  Redemption of preferred stock                                     -           -         (100)           -
  Dividends on common and preferred stock                         (80)        (83)        (245)        (248)
  Other                                                             -           -            3            -
-------------------------------------------------------------------------------------------------------------
    Net cash used for financing activities                        (62)       (197)        (206)        (371)
-------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                  3          (2)           1            7
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF THE PERIOD                                          13          11           15            2
-------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD              $      16   $       9   $       16        $   9
=============================================================================================================
SUPPLEMENTARY CASH FLOW INFORMATION
  Interest paid (excluding interest capitalized)            $      82   $      74   $      219        $ 210
  Income taxes paid                                                84          68          195          200
  New capital lease obligations                                     4           -           52           33
</TABLE>


      See notes to condensed consolidated financial statements (unaudited).


                                       11

<PAGE>   12







                           THE DETROIT EDISON COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
               (In Millions, Except Per Share Amounts and Shares)

<TABLE>
<CAPTION>


                                                                   September 30    December 31
                                                                        1998            1997
                                                                   ------------    -----------
<S>                                                               <C>            <C>
ASSETS
CURRENT ASSETS
     Cash and cash equivalents                                    $          16  $          15
     Accounts receivable
         Customer (less allowance for doubtful
              accounts of $20)                                              343            300
         Accrued unbilled revenues                                          156            137
         Other                                                               65             63
     Inventories (at average cost)
         Fuel                                                               159            130
         Materials and supplies                                             153            150
     Other                                                                   51             11
                                                                  -------------  -------------
                                                                            943            806
                                                                  -------------  -------------

INVESTMENTS
     Nuclear decommissioning trust funds                                    272            239
     Other                                                                  133             38
                                                                  -------------  -------------
                                                                            405            277
                                                                  -------------  -------------



PROPERTY
     Property, plant and equipment                                       14,489         14,204
     Property under capital leases                                          244            256
     Nuclear fuel under capital lease                                       659            607
     Construction work in progress                                           14             12
                                                                  -------------  -------------
                                                                         15,406         15,079
                                                                  -------------  -------------
Less accumulated depreciation and amortization                            6,814          6,431
                                                                  -------------  -------------
                                                                          8,592          8,648
                                                                  -------------  -------------

OTHER ASSETS
     Regulatory assets                                                      693            856
     Other                                                                  204            158
                                                                  -------------  -------------
                                                                            897          1,014
                                                                  -------------  -------------


TOTAL ASSETS                                                      $      10,837  $      10,745
                                                                  =============  =============
</TABLE>

     See notes to condensed consolidated financial statements (unaudited).


                                       12

<PAGE>   13


<TABLE>
<CAPTION>



                                                                   September 30    December 31
                                                                       1998            1997
                                                                  -------------  -------------
<S>                                                               <C>            <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
     Accounts payable                                             $         250  $         150
     Accrued interest                                                        45             56
     Dividends payable                                                       80             83
     Accrued payroll                                                         95             80
     Short-term borrowings                                                  205              -
     Deferred income taxes                                                   72             64
     Current portion long-term debt                                         119            169
     Current portion capital leases                                         124            110
     Other                                                                  210            218
                                                                  -------------  -------------
                                                                          1,200            930
                                                                  -------------  -------------

OTHER LIABILITIES
     Deferred income taxes                                                1,907          1,973
     Deferred investment tax credits                                        290            301
     Capital leases                                                         131            137
     Other                                                                  251            300
                                                                  -------------  -------------
                                                                          2,579          2,711
                                                                  -------------  -------------


LONG-TERM DEBT                                                            3,512          3,531
                                                                  -------------  -------------

SHAREHOLDERS' EQUITY
     Cumulative preferred stock, $100 par value, 6,747,484 
         shares authorized, 5,207,657 issued, 500,000 and 
         1,501,223 shares outstanding, respectively                          48            144
     Common stock, $10 par value, 400,000,000 shares
         authorized, 145,119,875 issued and outstanding                   1,451          1,451
     Premium on common stock                                                548            548
     Common stock expense                                                   (48)           (48)
     Retained earnings                                                    1,547          1,478
                                                                  -------------  -------------
         TOTAL SHAREHOLDERS' EQUITY                                       3,546          3,573
                                                                  -------------  -------------


CONTINGENCIES (NOTE 5)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                        $      10,837  $      10,745
                                                                  =============  =============
</TABLE>


     See notes to condensed consolidated financial statements (unaudited).



                                       13

<PAGE>   14





                           THE DETROIT EDISON COMPANY
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
          (In Millions, Except Per Share Amounts; Shares in Thousands)

<TABLE>
<CAPTION>

                                                                             1998
                                                                 ----------------------------
                                                                    Shares           Amount
                                                                 ----------------------------
<S>                                                              <C>              <C>
CUMULATIVE PREFERRED STOCK
  Balance at beginning of year                                         1,501      $       144
  Redemption of cumulative preferred stock                            (1,001)            (100)
  Preferred stock expense                                                                   4
                                                                 -----------      -----------
  Balance at September 30, 1998                                          500      $        48
---------------------------------------------------------------------------------------------

COMMON STOCK
  Balance at beginning of year                                       145,120      $     1,451
                                                                 -----------      -----------
  Balance at September 30, 1998                                      145,120      $     1,451
---------------------------------------------------------------------------------------------

PREMIUM ON COMMON STOCK
  Balance at beginning of year                                                    $       548
                                                                                  -----------
  Balance at September 30, 1998                                                   $       548
---------------------------------------------------------------------------------------------

COMMON STOCK EXPENSE
  Balance at beginning of year                                                    $       (48)
                                                                                  -----------
  Balance at September 30, 1998                                                   $       (48)
---------------------------------------------------------------------------------------------

RETAINED EARNINGS
  Balance at beginning of year                                                    $     1,478
  Net income                                                                              318
  Dividends declared
    Common stock ($1.65 per share)                                                       (239)
    Cumulative preferred stock*                                                            (6)
  Preferred stock expense                                                                  (4)
                                                                                  -----------
  Balance at September 30, 1998                                                   $     1,547
---------------------------------------------------------------------------------------------

TOTAL SHAREHOLDERS' EQUITY                                                        $     3,546
=============================================================================================
</TABLE>

* At established rate for each series.


      See notes to condensed consolidated financial statements (unaudited).


                                       14




<PAGE>   15





                    NOTES TO CONDENSED CONSOLIDATED FINANCIAL
                             STATEMENTS (UNAUDITED)
                DTE ENERGY COMPANY AND THE DETROIT EDISON COMPANY

NOTE 1 - ANNUAL REPORT NOTES

These condensed consolidated financial statements (unaudited) should be read in
conjunction with the Annual Report Notes and the Quarterly Report Notes. The
Notes contained herein update and supplement matters discussed in the Annual
Report Notes.

The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

The condensed consolidated financial statements are unaudited, but in the
opinion of the Company and Detroit Edison, with respect to its own financial
statements, 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.

NOTE 2 - REGULATORY MATTERS

As discussed in Notes 1 and 3 of the Annual Report Notes, the MPSC has
established a capacity factor performance standard which provides for the
disallowance of net incremental replacement power costs if Fermi 2 does not
perform to certain operating criteria. A disallowance is imposed for the amount
by which the Fermi 2 three-year rolling average capacity factor is less than the
greater of either the average of the top 50% of U.S. boiling water reactors or
50%. An estimate of the incremental cost of replacement power is required in
computing the reserve for amounts due customers under this performance standard.
At December 31, 1997, Detroit Edison had an accrual of $74 million for the
disallowance that is expected to be imposed by the MPSC. Due primarily to an
increase in the estimate of the incremental cost of replacement power at
September 30, 1998, Detroit Edison recorded an increase in the Fermi 2 capacity
factor performance standard liability of approximately $34 million. The
additional liability was recorded as a reduction to operating revenues. Fermi 2
was shut down for refueling on September 4, 1998 and began restart activities in
the last week of October, 1998.

As discussed in Note 3 of the Annual Report, in December 1997, litigation was
commenced in the Ingham County Circuit Court of Michigan contending that Detroit
Edison and the MPSC breached a December 1988 MPSC Order by offsetting the
stipulated revenue reduction with the amortization of 1997 storm costs.
Following the denial of Detroit Edison's motion for summary disposition, both
the MPSC and Detroit Edison filed emergency appeals with the Michigan Court of
Appeals. While the Company's appeal was denied, on October 8, 1998, the Michigan
Court of Appeals granted the MPSC's claim of appeal.



                                       15


<PAGE>   16


NOTE 3 - SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

At September 30, 1998, Detroit Edison had total short-term credit arrangements
of approximately $675 million under which $205 million was outstanding. The
amounts outstanding at September 30, 1998 consisted of $155 million of
commercial paper and $50 million secured by its customer accounts receivable and
unbilled revenues portfolio.

At September 30, 1998, DTE Capital had short-term credit arrangements of $400
million, backed by a Support Agreement from the Company, under which $194
million of commercial paper was outstanding.

NOTE 4 - LONG-TERM DEBT

Detroit Edison has effective shelf registrations permitting issuance of $364.5
million in debt securities.

The Company had $124 million in cash and cash equivalents restricted for debt
service at September 30, 1998.

NOTE 5- CONTINGENCIES

LEGAL PROCEEDINGS

Detroit Edison and plaintiffs in a class action pending in the Circuit Court for
Wayne County, Michigan (Gilford, et al v. Detroit Edison), as well as plaintiffs
in two other pending actions which make class claims (Sanchez, et al v. Detroit
Edison, Circuit Court for Wayne County, Michigan; and Frazier v. Detroit Edison,
United States District Court, Eastern District of Michigan), are preparing for
binding arbitration to settle these matters. A July 1998 Consent Judgement has
received preliminary Court approval. A Fairness Hearing with respect to the
terms of the settlement was held in August 1998, and no objections to the
settlement were raised. A second Fairness Hearing is comtemplated following the
results of the arbitration. The settlement agreement provides that Detroit
Edison's monetary liability is to be no less than $17.5 million and no greater
than $65 million after the conclusion of all related proceedings. An amount
related to this proceeding was accrued in 1997.



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

This Quarterly Report on Form 10-Q, including the report of Deloitte & Touche
LLP (on page 17) will automatically be incorporated by reference in the
Prospectuses constituting part of the Registration Statements on Form S-3
(Registration Nos. 33-53207, 33-64296 and 333-65765) of The Detroit Edison
Company and Form S-8 (Registration Nos. 333-00023 and 333-47247) and Form S-3
(Registration No. 33-57545) of DTE Energy Company, filed under the Securities
Act of 1933. Such report of Deloitte & Touche LLP, however, is not a "report" or
"part of the Registration Statement" within the meaning of Sections 7 and 11 of
the Securities Act of 1933 and the liability provisions of Section 11(a) of such
Act do not apply.


                                       16


<PAGE>   17


INDEPENDENT ACCOUNTANTS' REPORT

To the Boards of Directors and Shareholders of DTE Energy Company and
      The Detroit Edison Company

We have reviewed the accompanying condensed consolidated balance sheets of DTE
Energy Company and subsidiaries and The Detroit Edison Company and subsidiaries
as of September 30, 1998, and the related condensed consolidated statements of
income and of cash flows for the three-month and nine-month periods ended
September 30, 1998 and 1997, and the condensed consolidated statements of
changes in shareholders' equity for the nine-month period ended September 30,
1998. These financial statements are the responsibility of DTE Energy Company's
management and The Detroit Edison Company's management.

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

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

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheets of DTE Energy Company and
subsidiaries and The Detroit Edison Company and subsidiaries as of December 31,
1997, and the related consolidated statements of income, changes in
shareholders' equity, and cash flows for the year then ended (not presented
herein); and in our report dated January 26, 1998, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheets
as of December 31, 1997 is fairly stated, in all material respects, in relation
to the consolidated balance sheets from which they have been derived.




DELOITTE & TOUCHE LLP

Detroit, Michigan
October 28, 1998



                                       17


<PAGE>   18


ITEM 2   - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      
           RESULTS OF OPERATIONS.
           DTE ENERGY COMPANY AND THE DETROIT EDISON COMPANY

This analysis for the three and nine months ended September 30, 1998, as
compared to the same periods in 1997, should be read in conjunction with the
condensed consolidated financial statements (unaudited), the accompanying Notes,
the Quarterly Report Notes and the Annual Report Notes.

Detroit Edison is the principal subsidiary of the Company, and, as such, unless
otherwise identified, this discussion explains material changes in results of
operations of both the Company and Detroit Edison and identifies recent trends
and events affecting both the Company and Detroit Edison.

ELECTRIC INDUSTRY DEREGULATION

Federal and state legislators and regulators are working to introduce
competition and customer choice into the generation segment of the electric
public utility industry, believing that competition will lead to reduced
electric rates and stimulate economic growth. Traditional utility services are
being unbundled, with many of such services becoming competitive; and a demand
is being created for new energy-related services.

As discussed in the Annual Report and the Quarterly Report, there are ongoing
Michigan legislative, judicial and administrative proceedings, which address
among other things, deregulation of the generation segment of the Michigan
electric public utility industry. Federal legislation relating to deregulation
has also been proposed. Although the Company and Detroit Edison expect a
favorable outcome, neither the Company nor Detroit Edison are able to predict
the outcome or timing of these proceedings.

The Financial Accounting Standards Board (FASB) and the Securities and Exchange
Commission (SEC) have been considering various accounting issues as a result of
the transition to competition.

Regulatory Accounting Issues

As discussed in Note 1 of the Annual Report, Detroit Edison is subject to
regulation by the MPSC and the Federal Energy Regulatory Commission (FERC).
Detroit Edison meets the criteria of Statement of Financial Accounting Standards
(SFAS) No. 71, "Accounting for the Effects of Certain Types of Regulation." This
accounting standard recognizes the cost based ratemaking process which results
in differences in the application of generally accepted accounting principles
between regulated and non-regulated businesses. SFAS No. 71 permits the
recording of regulatory assets and liabilities that would have been treated as
revenue and expense in non-regulated businesses. The deferred amounts are being
amortized to revenue and expense as they are included in rates. Continued
applicability of SFAS No. 71 requires that rates be designed to recover specific
costs of providing regulated services and products, including regulatory assets,
and that it be 



                                       18

<PAGE>   19


reasonable to assume that rates are set at levels that will recover a utility's 
costs and can be charged to and collected from customers.

In guidance issued in 1997, the Emerging Issues Task Force (EITF) of the FASB
concluded that the application of SFAS No. 71 to a separable portion of a
business which is subject to a deregulation plan should cease when legislation
is passed and/or a rate order is issued that contains sufficient detail on a
transition plan. Various MPSC Orders and proposed Michigan legislation would
alter the regulatory process in Michigan and provide a plan for transition to
competition for the generation segment of Detroit Edison's business. However,
Detroit Edison has appealed the MPSC Orders that require the implementation of a
Direct Access program in Michigan. Detroit Edison believes that it continues to
qualify under the accounting model prescribed by SFAS No. 71. The continued
applicability of SFAS No. 71 will depend on the outcome of legal and legislative
proceedings discussed herein.

During the second quarter of 1998, the SEC issued guidance regarding the
accounting treatment for the recovery of stranded costs during the transition to
competition. The SEC concluded that when an entity ceases to apply SFAS No. 71,
any impaired portion of plant assets, identified for recovery in
legislation/rate order by means of a regulated cash flow, should be treated as a
regulatory asset in the separable portion of the enterprise from which the
regulated cash flows are derived. The plant impairment analysis, performed at
the lowest level of identifiable cash flows based on the facts and
circumstances, should be exclusive of the regulated cash flows.

The 1997 EITF guidance also concluded that regulatory assets and liabilities
originating in the separable portion of the business which is no longer under
SFAS No. 71 should not be written off if they are recoverable from a separable
portion of business which still meets the criteria of SFAS No. 71. Detroit
Edison's ability to recover regulatory assets and investment in generation plant
in the transition to competition will depend on the outcome of regulatory and/or
legislative action which provides for and permits recovery of such assets.
Detroit Edison had $355 million of net regulatory assets and $4.8 billion of net
investment in generation plant recorded in Property, Plant and Equipment at
September 30, 1998. At the present time Detroit Edison believes that a
satisfactory mechanism to recover regulatory assets and the investment in
generation plant will be adopted by its regulators and/or legislators, although
there can be no assurances that this will occur.

Michigan Public Service Commission

In July 1998, Detroit Edison filed an application with the MPSC for accounting
authority to accelerate amortization of the Fermi 2 plant and its related
regulatory assets by $164.2 million annually beginning January 1, 1999. Detroit
Edison believes approval of its request will allow a reasonable opportunity,
consistent with SFAS No. 71 and EITF guidance, to recover its stranded assets by
the MPSC imposed deadline for recovery, December 31, 2007. Evidentiary hearings
have concluded in the proceeding to address Detroit Edison's request to
accelerate amortization of Fermi 2 and its related regulatory assets. The
Michigan Attorney General and other parties are opposing the request and have
argued for a reduction in, or complete elimination of, the MPSC's previous
findings on the amount of recoverable stranded costs. An order by the MPSC is
expected to be 



                                       19


<PAGE>   20


issued before the end of 1998.

Detroit Edison filed an application with the MPSC in June 1998 requesting
approval of its Customer Choice Plan and accounting authority to defer costs
that would be incurred to implement Direct Access. In its filing, Detroit Edison
estimated that the cost to implement Direct Access would be approximately $100
million. Deferral of $19.9 million has been specifically requested in 1998.
Approximately $3.9 million of costs have been incurred through September 30,
1998.

Detroit Edison also indicated in its filings with the MPSC that recovery of
Fermi 2 assets and other stranded assets must be reasonably assured before
implementation of any Direct Access program begins. Under current accounting
rules, to the extent that Detroit Edison cannot be assured recovery prior to
implementation of a Direct Access program, it would be required to write off
such assets; however, the Company and Detroit Edison do not anticipate a write
off at this time.

Detroit Edison is no longer seeking suspension of its PSCR clause and had filed
motions with the MPSC to withdraw both of its earlier applications for a clause
suspension. On October 26, 1998, the MPSC issued two related orders which
granted Detroit Edison's motions, terminated the PSCR suspension hearing and
ordered that Detroit Edison continue to implement its PSCR clause.

In September 1998, Detroit Edison filed its 1999 PSCR case. Fuel and purchased
power costs for 1999 are projected to increase by up to 25 percent, on average,
over the corresponding forecast for 1998. A hearing schedule has not yet been
established.

As discussed in Management's Discussion and Analysis of Financial Condition and
Results of Operations in the Annual Report, Detroit Edison has been involved in
legal proceedings contesting the statutory authority of the MPSC to order an
experimental retail wheeling program. On October 12, 1998 the Michigan Supreme
Court granted Detroit Edison and other parties to the proceeding leave to appeal
from a January 1998 Order of the Michigan Court of Appeals finding that the MPSC
did have statutory authority to authorize experimental retail wheeling.

GROWTH

Non-regulated businesses are projected to increase over the five-year period
ending 2002, and during this period such businesses could result in earnings of
as much as $150 million annually.

LIQUIDITY AND CAPITAL RESOURCES

CASH PROVIDED BY OPERATING ACTIVITIES

Net cash from operating activities was lower for the three month period due
primarily to increased accounts receivables and lower payables.


                                       20


<PAGE>   21


Net cash from operating activities was higher in the nine month period due
primarily to higher net income and higher payables, partially offset by
increases in accounts receivable and inventories and an increase in other
Detroit Edison non-cash items.

CASH USED FOR INVESTING ACTIVITIES

Net cash used for investing was higher for the three month period due primarily
to higher investment in non-regulated plant and equipment expenditures.

Net cash used for investing was higher for the nine month period due to
increased non-regulated investments and plant and equipment expenditures.

Cash requirements for non-regulated investments are estimated at $607 million in
1998, of which $485 million had been expended as of September 30, 1998.

Detroit Edison's 1998 cash requirements for its capital expenditure program are
estimated at $486 million, of which $342 million had been expended as of
September 30, 1998.

CASH FROM (USED FOR) FINANCING ACTIVITIES

Net cash from financing was higher in the three month period due primarily to
the issuance of long-term debt and an increase in short-term borrowings for
non-regulated plant and equipment expenditures.

Net cash from financing was higher in the nine month period due primarily to the
issuance of long-term debt and the increase in short-term borrowings, partially
offset by the redemption of preferred stock.

In November 1998, Detroit Edison plans to issue $100 million of QUIDS which
will be used to redeem approximately $50 million aggregate principal amount of
its 8.5% Series of QUIDS due 2025 and all outstanding shares of its 7.74% Series
Cumulative Preferred Stock.

YEAR 2000

As discussed in Part II, Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations in the Company's Annual Report on
Form 10-K, the Company has been involved in an enterprise-wide program to
address Year 2000 issues. A program office was established in mid-1997 to
implement a rigorous plan to address the impact of Year 2000 to hardware and
software systems, embedded systems (which include microprocessors used in the
production and control of electric power), and critical service providers. The
emphasis has been on mission critical systems that support core business
activities or processes. Core business activities/processes include safety,
environmental and regulatory (Federal Energy Regulatory Commission and Nuclear
Regulatory Commission) compliance, product production and delivery, revenue
collection, employee and supplier payment, and financial asset management.


                                       21

<PAGE>   22


The Company's plan for addressing Year 2000 is divided into several phases
including: raising general awareness of Year 2000 throughout the company,
maintaining an inventory of systems and devices, performing an assessment of
inventoried systems and devices, performing compliance testing of suspect
systems and devices, remediation of non-compliant systems and devices through
replacement, repair, retirement, or identifying an acceptable work around,
testing and remediation of systems and devices in an integrated environment and
preparing business continuity plans.

The inventory and assessment of known systems and devices has been completed.
Compliance testing and remediation for mission critical and other systems and
devices are in process. Completion of remediation and integration
testing/remediation of mission critical systems is expected by the end of
calendar year 1999.

To support the program phases, the program office has been working with major
utility industry associations and organizations, customers and vendors to gather
and share information on Year 2000 issues. The program office has contacted
vendors critical to Company operations to determine their progress on Year 2000.

Based upon information to date, the Company and Detroit Edison anticipate that
abnormal operating conditions may be experienced within the Detroit Edison
production, transmission, and distribution systems as a result of Year 2000
conditions. These conditions could result in temporary interruption of service
to customers. Abnormal operating conditions may also be experienced in other
affiliates of the Company of a magnitude not determined at this time. To address
these issues, a business continuity program is being developed to be operational
in the fourth quarter of 1999. The business continuity program is expected to
provide short and long-term solutions to Year 2000 related issues.

The Company and Detroit Edison believe that with all Year 2000 modifications and
business continuity plans in place, the Year 2000 will not have a material
effect on their financial position, liquidity and results of operations.
However, despite all efforts, there can be no assurances that Year 2000 issues
can be totally eliminated. In addition, no assurances can be given that the
systems of vendors, interconnected utilities, and customers will not result in
Year 2000 problems.

The Company and Detroit Edison estimate that Year 2000 costs will aggregate
between $50 and $75 million, with $13 million expended between January 1, 1998
and September 30, 1998. Operating cash flow is expected to be sufficient to pay
Year 2000 modification costs with no material impact on operating results or
cash flows.



                                       22


<PAGE>   23



RESULTS OF OPERATIONS

For the three months ended September 30, 1998, the Company's net income was $132
million or $0.91 per common share, the same as the three months ended September
30, 1997. For the nine months ended September 30, 1998 net income was $337
million or $2.32 per common share compared to $288 million or $1.98 per common
share earned in the nine months ended September 30, 1997.

The 1998 three month earnings were the same as last year and nine month earnings
were higher than last year due primarily to higher sales and increased earnings
from non-regulated subsidiary operations, offset by an increase in the Fermi 2
capacity factor performance standard liability due primarily to higher power
costs.

OPERATING REVENUES

Increases in operating revenues were due primarily to higher non-regulated
subsidiary revenues and higher system sales, partially offset by an increase in
the Fermi 2 capacity factor performance standard liability.

Detroit Edison kWh sales increased (decreased) as compared to the prior year as
follows:

<TABLE>
<CAPTION>         
                                                       Three           Nine
                                                      Months          Months
                                                      ------          ------
<S>                                                   <C>              <C> 
      Residential                                        19.3%         10.1%
      Commercial                                          9.4           7.0
      Industrial                                          3.9           3.4
      Other (primarily sales for resale)                 22.4          30.5
         Total System                                    11.1           7.6
      Sales between utilities                           (17.5)         84.1
         Total                                            8.9          11.7

</TABLE>

The increase in residential sales in the three month and nine month periods
resulted from growth in the customer base, increased usage and increased cooling
related sales in the third quarter due to unusually warm weather. Commercial
sales increased, reflecting a continuation of favorable economic conditions and
increased cooling related sales. The increase in industrial sales reflects 
increased demand in the construction and automotive sectors. Sales to other 
customers increased, reflecting increased demand from sales for resale 
customers.

Sales between utilities decreased in the three month period due to lower
availability of energy for sale during the Fermi 2 refueling outage. Sales
between utilities increased during the nine month period due to greater demand
for energy and increased overall availability of energy for sale.


                                       23

<PAGE>   24


OPERATING EXPENSES

FUEL AND PURCHASED POWER

Net system output and average fuel and purchased power unit costs for Detroit
Edison were as follows:

<TABLE>
<CAPTION>
                                            Three Months        Nine Months
                                         ----------------      --------------
                                         1998      1997        1998      1997
                                         ----      ----        ----      ----
                                                  (Thousands of MWh)
<S>                                    <C>        <C>        <C>       <C>
      Power plant generation
         Fossil                         11,388     10,744     32,784    31,141
         Nuclear                         1,445      2,342      5,734     3,589
      Purchased power                    3,200      1,237      5,983     4,849
                                       -------    -------    -------   -------
      Net system output                 16,033     14,323     44,501    39,579
                                       =======    =======    =======   =======
      Average unit cost ($/MWh)        $ 20.36    $ 14.88    $ 17.35   $ 14.76
                                       =======    =======    =======   =======
</TABLE>



Fuel and purchased power expense increased in the three month period due to
higher average unit costs as a result of increased market demand for power
during periods of hot weather. The increase was also due to replacing lower cost
nuclear fuel as a result of the Fermi 2 refueling outage with higher cost system
generated and purchased power and higher net system output.

For the nine month period, fuel and purchased power expense increased due to
higher net system output, higher average unit costs as a result of increased
market demand for power during periods of hot weather and the prior-period
receipt of Fermi 2 business insurance proceeds.

OPERATION AND MAINTENANCE

Operation and maintenance expense increased for the three month period due
primarily to new non-regulated subsidiary operation expense ($46 million), the
Conners Creek restart ($6.6 million) and Year 2000 expenses ($6.8 million),
partially offset by lower benefit costs ($5.2 million) and lower thermal energy
expenses ($3.7 million).

Operation and maintenance expense increased for the nine month period due
primarily to non-regulated subsidiary operation expense ($124 million), the
Conners Creek restart ($10.9 million), Year 2000 expense ($11.3 million) and
nuclear generating operating costs ($13.8 million), partially offset by lower
benefit costs ($19.7 million) and lower thermal energy expenses ($6.0 million).

Storm damage costs of $30 million incurred during the first three quarters of
1997 were deferred in the fourth quarter of 1997 and are being amortized to
expense over a 24 month period beginning in January 1998.


                                       24

<PAGE>   25


INCOME TAXES

The effective income tax rate for the Company was lower in 1998 due primarily to
increased alternate fuels credits.


FORWARD-LOOKING STATEMENTS

Certain information presented in this Quarterly Report on Form 10-Q is based
upon the expectations of the Company and Detroit Edison and, as such, is
forward-looking. The Private Securities Litigation Reform Act of 1995 encourages
reporting companies to provide analyses and estimates of future prospects and
also permits reporting companies to point out that actual results may differ
from those anticipated.

Actual results for the Company and Detroit Edison may differ from those expected
due to a number of variables including, but not limited to, actual sales, the
effects of competition, the implementation of utility restructuring in Michigan
(which involves pending regulatory proceedings, pending and proposed statutory
changes and the recovery of stranded costs), environmental (including proposed
regulations to limit nitrogen oxide emissions) and nuclear requirements, the
impact of FERC proceedings and regulations, the success of non-regulated lines
of business and the timely completion of Year 2000 modifications. While the
Company and Detroit Edison believe that estimates given accurately measure the
expected outcome, actual results could vary materially due to the variables
mentioned as well as others.



                                       25



<PAGE>   26



                               DTE ENERGY COMPANY
                           PART II - OTHER INFORMATION




ITEM 5 - OTHER INFORMATION.

As discussed in Part II, Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations in the Company's Annual Report on
Form 10-K, during 1997 and 1998 the EPA issued ozone transport regulations and
final new air quality standards relating to ozone and particulate air pollution.
In September 1998, the EPA issued a State Implementation Plan (SIP) call, giving
states a year to develop new regulations to limit nitrogen oxide emissions
because of their contribution to ozone formation. The EPA draft proposal
suggests most emission reductions should come from utilities. If Michigan
follows the EPA's recommendations, it is estimated that it will cost Detroit
Edison more than $400 million to comply. Until the state issues its regulations,
it is impossible to predict the full impact of the SIP call. Additional
environmental costs would be expected to be recovered under traditional
ratemaking principles. However, Detroit Edison is unable to predict what effect,
if any, deregulation of the electric utility industry would have on
recoverability of such environmental costs.



                                       26


<PAGE>   27



                        QUARTERLY REPORT ON FORM 10-Q FOR
                           THE DETROIT EDISON COMPANY

                         PART I - FINANCIAL INFORMATION

ITEM 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED).

See pages 10 through 16.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS.

See the Company's and Detroit Edison's "Item 2 - Management's Discussion and
Analysis of Financial Condition and Results of Operations," which is
incorporated herein by this reference.

                           PART II - OTHER INFORMATION

ITEM 5 - OTHER INFORMATION.

As discussed in Detroit Edison's Part II, "Item 5 - Other Information" of the
Quarterly Report, on April 14, 1998 the MPSC issued an order granting Detroit
Edison's March 31, 1998 request to waive competitive bidding for Conners Creek
and restart the plant. Although Detroit Edison believes that the plant complies
with all applicable environmental requirements, the Michigan Department of
Environmental Quality (MDEQ) and the Wayne County Michigan Air Quality
Management Division have issued notices of violation contending that Detroit
Edison is required to obtain a series of new licenses prior to plant operation.
Detroit Edison is contesting these notices of violation. A hearing on Detroit
Edison's motion to remand the case to the Ingham County Circuit Court of
Michigan is scheduled for October 30, 1998 in the Eastern District.

See the Company's Part II, "Item 5 - Other Information" which is incorporated
herein by reference.



                                       27

<PAGE>   28





              QUARTERLY REPORTS ON FORM 10-Q FOR DTE ENERGY COMPANY
                         AND THE DETROIT EDISON COMPANY



ITEM 6 -   EXHIBITS AND REPORTS ON FORM 8-K.

    (a)    Exhibits

            (i)    Exhibits filed herewith.

                          Exhibit
                          Number
                          -------


                          11-13 -  DTE Energy Company Basic and Diluted Earnings
                                   Per Share of Common Stock.

                          12-13 -  The Detroit  Edison  Company  Computation  of
                                   Ratio of Earnings to Fixed Charges.

                           15-9 -  Awareness Letter of Deloitte & Touche LLP
                                   regarding their report dated October 28,
                                   1998.

                          27-23 -  Financial Data Schedule for the period
                                   ended September 30, 1998 for DTE Energy
                                   Company.

                          27-24 -  Financial Data Schedule for the period ended
                                   September 30, 1998 for The Detroit Edison
                                   Company.

            (ii) Exhibits incorporated herein by reference.

                            3(a)-  Amended and Restated Articles of
                                   Incorporation of DTE Energy Company, dated
                                   December 13, 1995. (Exhibit 3-5 to Form 10-Q
                                   for quarter ended
                                   September 30, 1997).

                            3(b)-  Certificate of Designation of Series A
                                   Junior Participating Preferred Stock of DTE
                                   Energy Company. (Exhibit 3-6 to Form 10-Q for
                                   quarter ended September 30, 1997).

                            3(c)-  Restated Articles of Incorporation of
                                   Detroit Edison, as filed December 10, 1991
                                   with the State of Michigan, Department of
                                   Commerce - Corporation and Securities Bureau
                                   (Exhibit 4-117 to Form 10-Q for quarter ended
                                   March 31, 1993).


                                       28


<PAGE>   29


                           3(d)-  Certificate containing resolution of the
                                  Detroit Edison Board of Directors establishing
                                  the Cumulative Preferred Stock, 7.75% Series
                                  as filed February 22, 1993 with the State of
                                  Michigan, Department of Commerce - Corporation
                                  and Securities Bureau (Exhibit 4-134 to Form
                                  10-Q for quarter ended March 31, 1993).

                           3(e)-  Certificate containing resolution of the
                                  Detroit Edison Board of Directors establishing
                                  the Cumulative Preferred Stock, 7.74% Series,
                                  as filed April 21, 1993 with the State of
                                  Michigan, Department of Commerce - Corporation
                                  and Securities Bureau (Exhibit 4-140 to Form
                                  10-Q for quarter ended March 31, 1993).

                           3(f)-  Rights Agreement, dated as of September 23,
                                  1997, by and between DTE Energy Company and
                                  The Detroit Edison Company, as Rights Agent
                                  (Exhibit 4-1 to DTE Energy Company Current
                                  Report on Form 8-K, dated September 22, 1997).

                           3(g)-  Agreement and Plan of Exchange (Exhibit 1(2)
                                  to DTE Energy Form 8-B filed January 2, 1996,
                                  File No. 1- 11607).

                           4(a)-  Mortgage  and Deed of Trust,  dated as of
                                  October 1, 1924,  between Detroit Edison (File
                                  No. 1-2198) and Bankers Trust Company as
                                  Trustee (Exhibit B-1 to Registration No.
                                  2-1630) and indentures supplemental thereto,
                                  dated as of dates indicated below, and filed
                                  as exhibits  to the  filings as set forth
                                  below:

                                  September 1, 1947      Exhibit B-20 to 
                                                           Registration No. 
                                                           2-7136
                                  October 1, 1968        Exhibit 2-B-33 to 
                                                           Registration No. 
                                                           2-30096
                                  November 15, 1971      Exhibit 2-B-38 to 
                                                           Registration No. 
                                                           2-42160
                                  January 15, 1973       Exhibit 2-B-39 to 
                                                           Registration No. 
                                                           2-46595
                                  June 1, 1978           Exhibit 2-B-51 to 
                                                           Registration No. 
                                                           2-61643
                                  June 30, 1982          Exhibit 4-30 to 
                                                           Registration No. 
                                                           2-78941
                                  August 15, 1982        Exhibit 4-32 to 
                                                           Registration No. 
                                                           2-79674
                                  October 15, 1985       Exhibit 4-170 to Form 
                                                           10-K for year ended 
                                                           December 31, 1994



                                       29
  


<PAGE>   30
                                  July 15, 1989          Exhibit 4-171 to Form 
                                                           10-K for year ended 
                                                           December 31, 1994
                                  December 1, 1989       Exhibit 4-172 to Form 
                                                           10-K for year ended 
                                                           December 31, 1994
                                  February 15, 1990      Exhibit 4-173 to Form 
                                                           10-K for year ended 
                                                           December 31, 1994
                                  April 1, 1991          Exhibit 4-15 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  May 1, 1991            Exhibit 4-178 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  May 15, 1991           Exhibit 4-179 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  September 1, 1991      Exhibit 4-180 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  November 1, 1991       Exhibit 4-181 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  January 15, 1992       Exhibit 4-182 to Form 
                                                           10-K for year ended 
                                                           December 31, 1996
                                  February 29, 1992      Exhibit 4-187 to form 
                                                           10-Q for quarter 
                                                           ended March 31, 1998
                                  April 15, 1992         Exhibit 4-188 for 
                                                           quarter ended March 
                                                           31, 1998
                                  July 15, 1992          Exhibit 4-189 for 
                                                           quarter ended March 
                                                           31, 1998
                                  July 31, 1992          Exhibit 4-190 for 
                                                           quarter ended March 
                                                           31, 1998
                                  November 30, 1992      Exhibit 4-130 to 
                                                           Registration No. 
                                                           33-56496
                                  January 1, 1993        Exhibit 4-131 to 
                                                           Registration No. 
                                                           33-56496
                                  March 1, 1993          Exhibit 4-191 to form 
                                                           10-Q for quarter 
                                                           ended March 31, 1998
                                  March 15, 1993         Exhibit 4-192 to Form 
                                                           10-Q for quarter 
                                                           ended March 31, 1998
                                  April 1, 1993          Exhibit 4-143 to Form 
                                                           10-Q for quarter 
                                                           ended March 31, 1993
                                  April 26, 1993         Exhibit 4-144 to Form 
                                                           10-Q for quarter 
                                                           ended March 31, 1993
                                  May 31, 1993           Exhibit 4-148 to 
                                                           Registration No. 
                                                           33-64296
                                  June 30, 1993          Exhibit 4-149 to Form 
                                                           10-Q for quarter 
                                                           ended June 30, 1993
                                                           (1993 Series AP)
                                  June 30, 1993          Exhibit 4-150 to Form 
                                                           10-Q for quarter 
                                                           ended June 30, 1993
                                                           (1993 Series H)


                                       30

<PAGE>   31

                                  September 15, 1993     Exhibit 4-158 to Form 
                                                           10-Q for quarter 
                                                           ended September 30, 
                                                           1993
                                  March 1, 1994          Exhibit 4-163 to 
                                                           Registration No. 
                                                           33-53207
                                  June 15, 1994          Exhibit 4-166 to Form 
                                                           10-Q for quarter 
                                                           ended June 30, 1994
                                  August 15, 1994        Exhibit 4-168 to Form 
                                                           10-Q for quarter 
                                                           ended September 30, 
                                                           1994
                                  December 1, 1994       Exhibit 4-169 to Form 
                                                           10-K for year ended 
                                                           December 31, 1994
                                  August 1, 1995         Exhibit 4-174 to Form 
                                                           10-Q for quarter 
                                                           ended September 30, 
                                                           1995


                           4(b)-  Collateral Trust Indenture (notes), dated
                                  as of June 30, 1993 (Exhibit 4-152 to
                                  Registration No. 33-50325).

                           4(c)-  First Supplemental Note Indenture, dated as
                                  of June 30, 1993 (Exhibit 4-153 to
                                  Registration No. 33-50325).

                           4(d)-  Second Supplemental Note Indenture, dated
                                  as of September 15, 1993 (Exhibit 4-159 to
                                  Form 10-Q for quarter ended September 30,
                                  1993).

                           4(e)-  First Amendment, dated as of August 15,
                                  1996, to Second Supplemental Note Indenture
                                  (Exhibit 4-17 to Form 10-Q for quarter ended
                                  September 30, 1996).

                           4(f)-  Third Supplemental Note Indenture, dated as
                                  of August 15, 1994 (Exhibit 4-169 to Form
                                  10-Q for quarter ended September 30, 1994).

                           4(g)-  First Amendment, dated as of December 12,
                                  1995, to Third Supplemental Note Indenture,
                                  dated as of August 15, 1994 (Exhibit 4-12 to
                                  Registration No. 333-00023).

                           4(h)-  Fourth Supplemental Note Indenture, dated
                                  as of August 15, 1995 (Exhibit 4-175 to
                                  Detroit Edison Form 10-Q for quarter ended
                                  September 30, 1995).

                           4(i)-  Fifth Supplemental Note Indenture, dated as
                                  of February 1, 1996 (Exhibit 4-14 to Form
                                  10-K for year ended December 31, 1996).

                                       31

<PAGE>   32



                           4(j)-  Sixth Supplemental Note Indenture, dated as
                                  of May 1, 1998, between Detroit Edison and
                                  Bankers Trust Company, as Trustee, creating
                                  the 7.54% Quarterly Income Debt Securities
                                  ("QUIDS"), including form of QUIDS. (Exhibit
                                  4-193 to Form 10-Q for quarter ended June 30,
                                  1998).

                           4(k)-  Standby Note Purchase  Credit  Facility,
                                  dated as of  August  17,  1994, among The
                                  Detroit  Edison Company, Barclays Bank PLC,
                                  as  Bank and Administrative Agent, Bank of
                                  America, The Bank of New York, The Fuji Bank
                                  Limited, The Long-Term Credit Bank of Japan,
                                  LTD, Union Bank and Citicorp Securities, Inc.
                                  and First Chicago Capital Markets, Inc. as
                                  Remarketing Agents (Exhibit 99-18 to Form
                                  10-Q for quarter ended September 30, 1994).

                          99(a)-  Belle River Participation Agreement between
                                  Detroit Edison and Michigan Public Power
                                  Agency, dated as of December 1, 1982 (Exhibit
                                  28-5 to Registration No. 2-81501).

                          99(b)-  Belle River Transmission Ownership and
                                  Operating Agreement between Detroit Edison
                                  and Michigan Public Power Agency, dated as of
                                  December 1, 1982 (Exhibit 28-6 to
                                  Registration No. 2-81501).

                          99(c)-  1988 Amended and Restated Loan Agreement,
                                  dated as of October 4, 1988, between
                                  Renaissance Energy Company (an unaffiliated
                                  company) ("Renaissance") and Detroit Edison
                                  (Exhibit 99-6 to Registration No. 33-50325).

                          99(d)-  First Amendment to 1988 Amended and
                                  Restated Loan Agreement, dated as of February
                                  1, 1990, between Detroit Edison and
                                  Renaissance (Exhibit 99-7 to Registration No.
                                  33-50325).

                          99(e)-  Second Amendment to 1988 Amended and
                                  Restated Loan Agreement, dated as of
                                  September 1, 1993, between Detroit Edison and
                                  Renaissance (Exhibit 99-8 to Registration No.
                                  33-50325).

                          99(f)-  Third Amendment, dated as of August 28,
                                  1997, to 1988 Amended and Restated Loan
                                  Agreement between Detroit Edison and
                                  Renaissance. (Exhibit 99-22 to Form 10-Q for
                                  quarter ended September 30, 1997).


                                       32


<PAGE>   33
                          99(g)-  $200,000,000 364-Day Credit Agreement,
                                  dated as of September 1, 1993, among Detroit
                                  Edison, Renaissance and Barclays Bank PLC,
                                  New York Branch, as Agent (Exhibit 99-12 to
                                  Registration No. 33-50325).

                          99(h)-  First Amendment, dated as of August 31, 1994,
                                  to $200,000,000 364-Day Credit Agreement, 
                                  dated September 1, 1993, among The Detroit
                                  Edison Company, Renaissance, the Banks party
                                  thereto and Barclays Bank, PLC, New York
                                  Branch, as Agent (Exhibit 99-19 to Form 10-Q
                                  for quarter ended September 30, 1994).

                          99(i)-  Third Amendment, dated as of March 8, 1996, to
                                  $200,000,000 364-Day Credit Agreement, dated
                                  September 1, 1993, as amended, among Detroit
                                  Edison, Renaissance, the Banks party thereto
                                  and Barclays Bank, PLC, New York Branch, as
                                  Agent (Exhibit 99-11 to Form 10-Q for quarter
                                  ended March 31, 1996).
  
                          99(j)-  Fourth Amendment, dated as of August 29, 1996,
                                  to $200,000,000 364-Day Credit Agreement dated
                                  as of September 1, 1990, as amended, among
                                  Detroit Edison, Renaissance, the Banks party
                                  thereto and Barclays Bank, PLC, New York
                                  Branch, as Agent (Exhibit 99-13 to Form 10-Q
                                  for quarter ended September 30, 1996).

                          99(k)-  Fifth Amendment, dated as of August 28, 1997
                                  to $200,000,000 364-Day Credit Agreement,
                                  dated as of September 1, 1990, as amended,
                                  among Detroit Edison, Renaissance, the Banks
                                  Party thereto and Barclays Bank PLC, New York
                                  Branch, as Agent. (Exhibit 99-25 to Form 10-Q
                                  for quarter ended September 30, 1997).

                          99(l)-  Sixth Amendment dated as of August 27, 1998,
                                  to $200,000,000 364-Day Credit Agreement
                                  dated as of September 1, 1993, as amended,
                                  among Detroit Edison, Renaissance, the Banks
                                  Party thereto and Barclays Bank, PLC, New
                                  York Branch, as Agent (Exhibit 99-32
                                  Registration Statement No. 333-65765).

                          99(m)-  $200,000,000 Three-Year Credit Agreement,
                                  dated September 1, 1993, among Detroit
                                  Edison, Renaissance and Barclays Bank, PLC,
                                  New York Branch, as Agent (Exhibit 99-13 to
                                  Registration No. 33-50325).



                                       33

<PAGE>   34
                          99(n)-  First  Amendment,  dated as of  September 1,
                                  1994, to $200,000,000 Three-Year Credit
                                  Agreement, dated as of September 1, 1993,
                                  among Detroit Edison, Renaissance, the Banks
                                  party thereto and Barclays Bank, PLC, New
                                  York Branch, as Agent (Exhibit 99-20 to Form
                                  10-Q for quarter ended September 30, 1994).

                          99(o)-  Third Amendment, dated as of March 8, 1996,
                                  to $200,000,000 Three-Year Credit Agreement,
                                  dated September 1, 1993, as amended among
                                  Detroit Edison, Renaissance, the Banks party
                                  thereto and Barclays Bank, PLC, New York
                                  Branch, as Agent (Exhibit 99-12 to Form 10-Q
                                  for quarter ended March 31, 1996).

                          99(p)-  Fourth Amendment, dated as of September 1,
                                  1996, to $200,000,000 Multi-Year (formerly
                                  Three-Year) Credit Agreement, dated as of
                                  September 1, 1993, as amended among Detroit
                                  Edison, Renaissance, the Banks party thereto
                                  and Barclays Bank, PLC, New York Branch, as
                                  Agent (Exhibit 99-14 to Form 10-Q for quarter
                                  ended September 30, 1996).

                          99(q)-  Fifth Amendment, dated as of August 28, 1997,
                                  to $200,000,000 Multi-Year Credit Agreement,
                                  dated as of September 1, 1993, as amended,
                                  among Detroit Edison, Renaissance, the Banks
                                  Party thereto and Barclays Bank PLC, New York
                                  Branch, as Agent. (Exhibit 99-24 to Form 10-Q
                                  for quarter ended September 30, 1997).

                          99(r)-  1988 Amended and Restated Nuclear Fuel Heat
                                  Purchase Contract, dated October 4, 1988,
                                  between Detroit Edison and Renaissance
                                  (Exhibit 99-9 to Registration No. 33-50325).

                          99(s)-  First Amendment to 1988 Amended and
                                  Restated Nuclear Fuel Heat Purchase Contract,
                                  dated as of February 1, 1990, between Detroit
                                  Edison and Renaissance (Exhibit 99-10 to
                                  Registration No. 33-50325).

                          99(t)-  Second Amendment, dated as of September 1,
                                  1993, to 1988 Amended and Restated Nuclear
                                  Fuel Heat Purchase Contract between Detroit
                                  Edison and Renaissance (Exhibit 99-11 to
                                  Registration No. 33-50325).



                                       34


<PAGE>   35

                          99(u)-  Third Amendment, dated as of August 31, 1994, 
                                  to 1988 Amended and Restated Nuclear Fuel Heat
                                  Purchase Contract, dated October 4, 1988,
                                  between Detroit Edison and Renaissance
                                  (Exhibit 99-21 to Form 10-Q for quarter ended
                                  September 30, 1994).

                          99(v)-  Fourth Amendment, dated as of March 8, 1996, 
                                  to 1988 Amended and Restated Nuclear Fuel Heat
                                  Purchase Contract Agreement, dated as of
                                  October 4, 1988, between Detroit Edison and
                                  Renaissance (Exhibit 99-10 to Form 10-Q for
                                  quarter ended March 31, 1996).

                          99(w)-  Sixth Amendment, dated as of August 28, 1997, 
                                  to 1988 Amended and Restated Nuclear Fuel Heat
                                  Purchase Contract between Detroit Edison and
                                  Renaissance. (Exhibit 99-23 to Form 10-Q for
                                  quarter ended September 30, 1997).

                          99(x)-  Standby Note Purchase Credit Facility, dated 
                                  as of September 12, 1997, among Detroit Edison
                                  and the Bank's Signatory thereto and The
                                  Chase Manhattan  Bank, as Administrative
                                  Agent, and Citicorp Securities, Inc., Lehman
                                  Brokers, Inc., as Remarketing Agents and
                                  Chase Securities,  Inc. as  Arranger.
                                  (Exhibit  999-26  to Form  10-Q for quarter
                                  ended September 30, 1997).

                          99(y)-  Amended and Restated Credit Agreement, Dated
                                  as of January 21, 1998 among DTE Capital
                                  Corporation, the Initial Lenders, Citibank,
                                  N.A., as Agent, and Barclays Bank PLC, New
                                  York Branch and The First National Bank of
                                  Chicago, as Co-Agents, and Citicorp
                                  Securities, Inc., as Arranger.

                          99(z)-  $60,000,000 Support Agreement dated
                                  as of January 21, 1998 between DTE Energy
                                  Company and DTE Capital Corporation.

                         99(aa)-  $400,000,000   Support  Agreement, dated as of
                                  January 21, 1998, between DTE Energy Company
                                  and DTE Capital Corporation.

                         99(bb)-  $100,000,000 Support Agreement, dated as of
                                  June 16, 1998 between DTE Energy Company and
                                  DTE Capital Corporation. (Exhibit 4-194 to
                                  Form 10-Q for quarter ended June 30, 1998).




                                       35

<PAGE>   36


                          99(cc)-  Indenture, dated as of June 15, 1998,
                                   between DTE Capital Corporation and The Bank
                                   of New York, as Trustee. (Exhibit 4-196 to
                                   Form 10-Q for quarter ended June 30, 1998).

                          99(dd)-  First Supplemental Indenture, dated as of
                                   June 15, 1998, between DTE Capital
                                   Corporation and The Bank of New York, as
                                   Trustee, creating the $100,000,000 Remarketed
                                   Notes, Series A due 2038, including form of
                                   Note. (Exhibit 4-197 to Form 10-Q for quarter
                                   ended June 30, 1998).



      (b)  Registrants filed a report on Form 8-K dated October 14, 1998
           discussing an increase in the Fermi 2 capacity factor performance
           standard liability.




                                       36

<PAGE>   37


                                   SIGNATURES



      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.







                                                    DTE ENERGY COMPANY
                                          --------------------------------------
                                                       (Registrant)





Date       October 28, 1998                         /s/ SUSAN M. BEALE
           ----------------               --------------------------------------
                                                        Susan M. Beale
                                          Vice President and Corporate Secretary





Date       October 28, 1998                         /s/ DAVID E. MEADOR
           ----------------               --------------------------------------
                                                        David E. Meador
                                                 Vice President and Controller


                                       37


<PAGE>   38



                                   SIGNATURES



      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
                                     --------------------------------------
                                                  (Registrant)





Date       October 28, 1998                    /s/ SUSAN M. BEALE
           ----------------          ---------------------------------------
                                                 Susan M. Beale
                                     Vice President and Corporate Secretary





Date       October 28, 1998                    /s/ DAVID E. MEADOR
           ----------------          --------------------------------------- 
                                                  David E. Meador
                                          Vice President and Controller



                                       38
<PAGE>   39
                            QUARTERLY REPORTS ON FORM
                              10-Q FOR THE QUARTER
                            ENDED SEPTEMBER 30, 1998


                  DTE ENERGY COMPANY            File No. 1-11607

                  DETROIT EDISON COMPANY        File No. 1-2198


                                  EXHIBIT INDEX


                 Exhibits filed herewith.

                            Exhibit
                            Number
                            -------


                            11-13-   DTE Energy Company Basic and Diluted
                                     Earnings Per Share of Common Stock.

                            12-13-   The Detroit Edison Company Computation of 
                                     Ratio of Earnings to Fixed Charges. 
                                     

                            15-9 -   Awareness Letter of Deloitte & Touche LLP
                                     regarding their report dated October 28,
                                     1998.

                            27-23-   Financial Data Schedule for the period
                                     ended September 30, 1998 for DTE Energy
                                     Company.

                            27-24-   Financial  Data  Schedule  for the period
                                     ended September 30, 1998 for The Detroit
                                     Edison Company.

      Exhibits incorporated herein by reference.    See Page No. ___ through
                                                    ___ for location of exhibits
                                                    incorporated by reference

                             3(a)-   Amended and Restated Articles of
                                     Incorporation of DTE Energy Company, dated
                                     December 13, 1995.

                             3(b)-   Certificate of Designation of Series A
                                     Junior Participating Preferred Stock of DTE
                                     Energy Company.

<PAGE>   40

                             3(c) -  Restated Articles of Incorporation of
                                     Detroit Edison, as filed December 10, 1991
                                     with the State of Michigan, Department of
                                     Commerce-Corporation and Securities Bureau.

                             3(d) -  Certificate containing resolution of the
                                     Detroit Edison Board of Directors 
                                     establishing the Cumulative Preferred 
                                     Stock, 7.75% Series as filed February 22,
                                     1993 with the State of Michigan, Department
                                     of Commerce-Corporation and Securities 
                                     Bureau.

                             3(e) -  Certificate containing resolution of the
                                     Detroit Edison Board of Directors 
                                     establishing the Cumulative Preferred
                                     Stock, 7.74% Series, as filed April 21,
                                     1993 with the State of Michigan, Department
                                     of Commerce-Corporation and Securities 
                                     Bureau.

                             3(f) -  Rights Agreement, dated as of September 23,
                                     1997, by and between DTE Energy Company and
                                     The Detroit Edison Company, as Rights 
                                     Agent.

                             3(g) -  Agreement and Plan of Exchange.

                             4(a) -  Mortgage and Deed of Trust, dated as of
                                     October 1, 1924, between Detroit Edison and
                                     Bankers Trust Company as Trustee and
                                     indentures supplemental thereto, dated as
                                     of dates indicated below:

                                     September 1, 1947 
                                     October 1, 1968
                                     November 15, 1971
                                     January 15, 1973
                                     June 1, 1978
                                     June 30, 1982
                                     August 15, 1982
                                     October 15, 1985
                                     July 15, 1989
                                     December 1, 1989
                                     February 15, 1990
                                     April 1, 1991
                                     May 1, 1991
                                     May 15, 1991
                                     September 1, 1991
                                     November 1, 1991
                                     January 15, 1992
                                     February 29, 1992
                                     April 15, 1992
                                     July 15, 1992
                                     July 31, 1992

<PAGE>   41

                                     November 30, 1992
                                     January 1, 1993
                                     March 1, 1993
                                     March 15, 1993
                                     April 1, 1993
                                     April 26, 1993
                                     May 31, 1993
                                     June 30, 1993
                                     June 30, 1993
                                     September 15, 1993
                                     March 1, 1994
                                     June 15, 1994
                                     August 15, 1994
                                     December 1, 1994
                                     August 1, 1995

                             4(b) -  Collateral Trust Indenture (notes), dated
                                     as of June 30, 1993.

                             4(c) -  First Supplemental Note Indenture, dated
                                     as of June 30, 1993.

                             4(d) -  Second Supplemental Note Indenture, dated
                                     as of September 15, 1993.

                             4(e) -  First Amendment, dated as of August 15,
                                     1996, to Second Supplemental Note
                                     Indenture.

                             4(f) -  Third Supplemental Note Indenture, dated
                                     as of August 15, 1994.

                             4(g) -  First Amendment, dated as of December 12,
                                     1995, to Third Supplemental Note Indenture,
                                     dated as of August 15, 1994.

                             4(h) -  Fourth Supplemental Note Indenture, dated
                                     as of August 15, 1995.

                             4(i) -  Fifth Supplemental Note Indenture, dated
                                     as of February 1, 1996.

                             4(j) -  Sixth Supplemental Note Indenture, dated as
                                     of May 1, 1998, between Detroit Edison and
                                     Bankers Trust Company, as Trustee, creating
                                     the 7.54% Quarterly Income Debt Securities
                                     ("QUIDS"), including form of QUIDS.

                             4(k) -  Standby Note Purchase Credit Facility,
                                     dated as of August 17, 1994, among The
                                     Detroit Edison Company, Barclays Bank PLC,
                                     as Bank and Administrative Agent, Bank of

<PAGE>   42

                                     America, The Bank of New York, The Fuji
                                     Bank Limited, The Long-Term Credit Bank of
                                     Japan, LTD, Union Bank and Citicorp
                                     Securities, Inc. and First Chicago Capital
                                     Markets, Inc. as Remarketing Agents.


                            99(a) -  Belle River Participation Agreement
                                     between Detroit Edison and Michigan Public
                                     Power Agency, dated as of December 1, 1982.

                            99(b) -  Belle River Transmission Ownership and
                                     Operating Agreement between Detroit Edison
                                     and Michigan Public Power Agency, dated as
                                     of December 1, 1982.

                            99(c) -  1988 Amended and Restated Loan Agreement,
                                     dated as of October 4, 1988, between 
                                     Renaissance Energy Company (an 
                                     unaffiliated company) ("Renaissance") and 
                                     Detroit Edison.

                            99(d) -  First Amendment to 1988 Amended and
                                     Restated Loan Agreement, dated as of
                                     February 1, 1990, between Detroit Edison
                                     and Renaissance.

                            99(e) -  Second Amendment to 1988 Amended and
                                     Restated Loan Agreement, dated as of
                                     September 1, 1993, between Detroit Edison
                                     and Renaissance.

                            99(f) -  Third Amendment, dated as of August 28,
                                     1997, to 1988 Amended and Restated Loan
                                     Agreement between Detroit Edison and
                                     Renaissance.

                            99(g) -  $200,000,000 364-Day Credit Agreement,
                                     dated as of September 1, 1993, among
                                     Detroit Edison, Renaissance and Barclays
                                     Bank PLC, New York Branch, as Agent.

                            99(h) -  First Amendment, dated as of August 31,
                                     1994, to $200,000,000 364-Day Credit
                                     Agreement, dated September 1, 1993, among
                                     The Detroit Edison Company, Renaissance,
                                     the Banks party thereto and Barclays Bank,
                                     PLC, New York Branch, as Agent.

                            99(i) -  Third Amendment, dated as of March 8, 1996,
                                     to $200,000,000 364-Day Credit Agreement,
                                     dated September 1, 1993, as amended, among
                                     Detroit Edison, Renaissance, the Banks 
                                     party thereto and Barclays Bank, PLC,
                                     New York Branch, as Agent.


<PAGE>   43

                            99(j) -  Fourth Amendment, dated as of August 29, 
                                     1996, to $200,000,000 364-Day Credit 
                                     Agreement dated as of September 1, 1990, as
                                     amended, among Detroit Edison, Renaissance,
                                     the Banks party thereto and Barclays Bank,
                                     PLC, New York Branch, as Agent.

                            99(k) -  Fifth Amendment, dated as of August 28,
                                     1997 to $200,000,000 364-Day Credit
                                     Agreement, dated as of September 1, 1990,
                                     as amended, among Detroit Edison,
                                     Renaissance, the Banks Party thereto and
                                     Barclays Bank PLC, New York Branch, as
                                     Agent.

                            99(l) -  Sixth Amendment dated as of August 27, 
                                     1998, to $200,000,000 364-Day Credit
                                     Agreement dated as of September 1, 1993,
                                     as amended, among Detroit Edison, 
                                     Renaissance, the Banks Party thereto and
                                     Barclays Bank, PLC, New York Branch, as 
                                     Agent. (Exhibit 99-32 Registration
                                     Statement No. 333-65765).

                            99(m) -  $200,000,000 Three-Year Credit Agreement,
                                     dated September 1, 1993, among Detroit
                                     Edison, Renaissance and Barclays Bank, PLC,
                                     New York Branch, as Agent.

                            99(n) -  First Amendment, dated as of September 1,
                                     1994, to $200,000,000 Three-Year Credit
                                     Agreement, dated as of September 1, 1993,
                                     among Detroit Edison, Renaissance, the
                                     Banks party thereto and Barclays Bank,
                                     PLC, New York Branch, as Agent.

                            99(o) -  Third Amendment, dated as of March 8, 1996,
                                     to $200,000,000 Three-Year Credit
                                     Agreement, dated September 1, 1993, as
                                     amended among Detroit Edison, Renaissance,
                                     the Banks party thereto and Barclays Bank,
                                     PLC, New York Branch, as Agent.

                            99(p) -  Fourth Amendment, dated as of September 1,
                                     1996, to $200,000,000 Multi-Year (formerly
                                     Three-Year) Credit Agreement, dated as of
                                     September 1, 1993, as amended among Detroit
                                     Edison, Renaissance, the Banks party
                                     thereto and Barclays Bank, PLC, New York
                                     Branch, as Agent.

                            99(q) -  Fifth Amendment, dated as of August 28,
                                     1997, to $200,000,000 Multi-Year Credit
                                     Agreement, dated as of September 1, 1993,
                                     as amended, among Detroit Edison,
                                     Renaissance, the Banks Party thereto and
                                     Barclays Bank PLC, New York Branch, as
                                     Agent.


<PAGE>   44

                            99(r) -  1988 Amended and Restated Nuclear Fuel
                                     Heat Purchase Contract, dated October 4,
                                     1988, between Detroit Edison and
                                     Renaissance.

                            99(s) -  First Amendment to 1988 Amended and
                                     Restated Nuclear Fuel Heat Purchase
                                     Contract, dated as of February 1, 1990,
                                     between Detroit Edison and Renaissance.

                            99(t) -  Second Amendment, dated as of September 1,
                                     1993, to 1988 Amended and Restated Nuclear
                                     Fuel Heat Purchase Contract between Detroit
                                     Edison and Renaissance.

                            99(u) -  Third Amendment, dated as of August 31,
                                     1994, to 1988 Amended and Restated Nuclear
                                     Fuel Heat Purchase Contract, dated October
                                     4, 1988, between Detroit Edison and
                                     Renaissance.

                            99(v) -  Fourth Amendment, dated as of March 8,
                                     1996, to 1988 Amended and Restated Nuclear
                                     Fuel Heat Purchase Contract Agreement,
                                     dated as of October 4, 1988, between
                                     Detroit Edison and Renaissance.

                            99(w) -  Sixth Amendment, dated as of August 28,
                                     1997, to 1988 Amended and Restated Nuclear
                                     Fuel Heat Purchase Contract between Detroit
                                     Edison and Renaissance.

                            99(x) -  Standby Note Purchase Credit Facility,
                                     dated as of September 12, 1997, among
                                     Detroit Edison and the Bank's Signatory
                                     thereto and The Chase Manhattan Bank,
                                     as Administrative Agent, and Citicorp
                                     Securities, Inc., Lehman Brokers, Inc.,
                                     as Remarketing Agents and Chase Securities,
                                     Inc. as Arranger.

                            99(y) -  Amended and Restated Credit Agreement,
                                     Dated as of January  21, 1998 among DTE
                                     Capital Corporation, the Initial Lenders,
                                     Citibank, N.A., as Agent, and Barclays Bank
                                     PLC, New York Branch and The First National
                                     Bnak of Chicago, as Co-Agents, and Citicorp
                                     Securities, Inc., as Arranger.

                            99(z) -  $60,000,000 Support Agreement dated as of
                                     January 21, 1998 between DTE Energy Company
                                     and DTE Capital Corporation.

                            99(aa)-  $400,000,000 Support Agreement, dated as of
                                     January 21, 1998, between DTE Energy
                                     Company and DTE Capital Corporation.


<PAGE>   45

                            99(bb)-  $100,000,000 Support Agreement, dated as of
                                     June 16, 1998 between DTE Energy Company
                                     and DTE Capital Corporation.

                            99(cc)-  Indenture, dated as of June 15, 1998,
                                     between DTE Capital Corporation and The
                                     Bank of New York, as Trustee.

                            99(dd)-  First Supplemental Indenture, dated as of
                                     June 15, 1998, between DTE Capital
                                     Corporation and The Bank of New York, as
                                     Trustee, creating the $100,000,000
                                     Remarketed Notes, Series A due 2038,
                                     including form of Note.