<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 JUNE 30, 1998



<TABLE>
<CAPTION>

COMMISSION              REGISTRANTS; STATE OF INCORPORATION;             I.R.S. EMPLOYER
FILE NUMBER             ADDRESS; AND TELEPHONE NUMBER                    IDENTIFICATION NO.

<C>                     <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 June 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 JUNE 30, 1998

This document contains the Quarterly Reports on Form 10-Q for the quarter ended
June 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................................                      19
                Item 2 -   Management's Discussion and Analysis of Financial                                      
                           Condition and Results of Operations............................                      20
                Item 3 -   Quantitative and Qualitative Disclosures about Market Risk.....                      27
     Part II  - Other Information.........................................................                      28
                Item 4 -   Submission of Matters to a Vote of Security Holders..............                    28
                Item 5 -   Other Information...............................................                     29
                                                                                                                  
Quarterly Report on Form 10-Q for The Detroit Edison Company:                                                     
     Part I   - Financial Information.....................................................                      30
                Item 1 -   Condensed Consolidated Financial Statements (Unaudited)........                      30
                Item 2 -   Management's Discussion and Analysis of Financial                                      
                           Condition and Results of Operations............................                      30
     Part II  - Other Information.........................................................                      30
                Item 5 - Other Information................................................                      30
                                                                                                                  
Quarterly Reports on Form 10-Q for DTE Energy Company and The Detroit Edison Company:            
                Item 6 -   Exhibits and Reports on Form 8-K...............................                      32
                                                                                                                  
Signature Page to DTE Energy Company Quarterly Report on Form 10-Q........................                      39
Signature Page to The Detroit Edison Company Quarterly Report on Form 10-Q................                      40
</TABLE>                                                                   
                                                                           
                                       2

<PAGE>   3



                                   DEFINITIONS


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)

Market Power.....................Exists when one company owns a sufficiently
                                    large percentage of generation,
                                    transmission, or distribution capabilities
                                    in a region which allows it to set the
                                    market price of electricity

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

MW...............................Megawatt

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 quarter
                                    ended March 31, 1998

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

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

Registrant.......................Company or Detroit Edison, as the case may be



                                       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                  Six Months Ended
                                                                   June 30                             June 30
                                                          -------------------------------------------------------------
                                                            1998              1997             1998              1997
                                                          -------------------------------------------------------------


<S>                                                   <C>               <C>              <C>               <C>
OPERATING REVENUES                                      $    1,064        $      892        $   2,009        $    1,761
-----------------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES
     Fuel and purchased power                                  285               197              493               395
     Operation and maintenance                                 300               240              568               474
     Depreciation and amortization                             162               165              327               330
     Taxes other than income                                    69                66              140               135
-------------------------------------------------------------------------------------------------------------------------
         Total Operating Expenses                              816               668            1,528             1,334
-------------------------------------------------------------------------------------------------------------------------

OPERATING INCOME                                               248               224              481               427
-------------------------------------------------------------------------------------------------------------------------

INTEREST EXPENSE AND OTHER
     Interest expense                                           79                72              153               143
     Preferred stock dividends
        of subsidiary                                            2                 3                5                 6
     Other - net                                                 5                 3                5                 8
-------------------------------------------------------------------------------------------------------------------------
         Total Interest Expense and Other                       86                78              163               157
-------------------------------------------------------------------------------------------------------------------------

INCOME BEFORE INCOME TAXES                                     162               146              318               270

Income Taxes                                                    61                61              113               114
-------------------------------------------------------------------------------------------------------------------------

NET INCOME                                              $      101        $       85        $     205        $      156
=========================================================================================================================

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

EARNINGS PER COMMON SHARE -
   BASIC AND DILUTED                                    $     0.69        $     0.59        $    1.41        $     1.07
-----------------------------------------------------------------------------------------------------------------------
</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                  Six Months Ended
                                                                              June 30                           June 30
                                                                   ------------------------------------------------------------
                                                                      1998          1997                  1998         1997
                                                                   ------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                                             <C>          <C>              <C>               <C>
   Net Income                                                     $     101     $       85      $      205        $        156
   Adjustments to reconcile net income to net cash
     from operating activities:
       Depreciation and amortization                                    162            165             327                 330
       Other                                                             (6)           (43)             (3)                  8
       Changes in current assets and liabilities:
         Accounts receivable                                            (95)            (7)            (48)                (25)
         Inventories                                                    (42)           (29)            (30)                (25)
         Payables                                                        55            (74)             60                 (41)
         Other                                                           46             35             (51)                (36)
------------------------------------------------------------------------------------------------------------------------------
     Net cash from operating activities                                 221            132             460                 367
------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
   Plant and equipment expenditures                                    (116)          (336)           (241)               (427)
   Investment in limited partnership                                      -              -            (200)                  -
   Nuclear decommissioning trust funds                                  (12)           (27)            (41)                (37)
   Other                                                                (17)             1             (11)                  1
------------------------------------------------------------------------------------------------------------------------------
     Net cash used for investing activities                            (145)          (362)           (493)               (463)
------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
   Issuance of long-term debt                                           200            243             200                 250
   (Decrease) Increase in short-term borrowings                        (115)           215             262                 209
   Redemption of long-term debt                                         (18)          (139)           (187)               (185)
   Redemption of preferred stock                                       (100)             -            (100)                  -
   Dividends on common stock                                            (75)           (75)           (149)               (149)
   Other                                                                  3              -               2                  (1)
------------------------------------------------------------------------------------------------------------------------------
     Net cash (used for) from financing activities                     (105)           244              28                 124
------------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN CASH AND CASH
    EQUIVALENTS                                                         (29)            14              (5)                 28
CASH AND CASH EQUIVALENTS AT
   BEGINNING OF THE PERIOD                                              123             67              99                  53
------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                    $      94     $       81       $      94        $         81
==============================================================================================================================
SUPPLEMENTARY CASH FLOW INFORMATION
   Interest paid (excluding interest capitalized)                 $      61     $       61       $     146        $        138
   Income taxes paid                                                     30            127              66                 128
   New capital lease obligations                                         31              -              48                  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>

                                                                                     June 30          December 31
                                                                                      1998               1997
                                                                                 --------------    ----------------
ASSETS
CURRENT ASSETS
<S>                                                                            <C>               <C>             
      Cash and cash equivalents                                                  $            94   $             99
      Accounts receivable
           Customer (less allowance for doubtful
                 accounts of $20)                                                            304                305
           Accrued unbilled revenues                                                         167                137
           Other                                                                              97                 78
      Inventories (at average cost)
           Fuel                                                                              164                130
           Materials and supplies                                                            171                173
      Assets from risk management activities                                                 129                  -
      Other                                                                                   52                 13
                                                                                 ---------------   ----------------
                                                                                           1,178                935
                                                                                 ---------------   ----------------

INVESTMENTS
      Nuclear decommissioning trust funds                                                    280                239
      Other                                                                                  267                 57
                                                                                 ---------------   ----------------
                                                                                             547                296
                                                                                 ---------------   ----------------



PROPERTY
      Property, plant and equipment                                                       14,692             14,495
      Property under capital leases                                                          256                256
      Nuclear fuel under capital lease                                                       655                607
      Construction work in progress                                                           22                 16
                                                                                 ---------------   ----------------
                                                                                          15,625             15,374
                                                                                 ---------------   ----------------
Less accumulated depreciation and amortization                                             6,728              6,440
                                                                                 ---------------   ----------------
                                                                                           8,897              8,934
                                                                                 ---------------   ----------------

OTHER ASSETS
      Regulatory assets                                                                      747                856
      Other                                                                                  226                202
                                                                                 ---------------   ----------------
                                                                                             973              1,058
                                                                                 ---------------   ----------------

TOTAL ASSETS                                                                     $        11,595   $         11,223
                                                                                 ===============   ================

</TABLE>

    See notes to condensed consolidated financial statements (unaudited).

                                      6
<PAGE>   7





<TABLE>
<CAPTION>


                                                                                     June 30          December 31
                                                                                      1998               1997
                                                                                ----------------   ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
<S>                                                                            <C>               <C>             
      Accounts payable                                                           $           194   $            161
      Accrued interest                                                                        56                 57
      Dividends payable                                                                       76                 78
      Accrued payroll                                                                         86                 81
      Short-term borrowings                                                                  304                 42
      Liabilities from risk management activities                                            135                  -
      Accumulated deferred income taxes                                                       83                 64
      Current portion long-term debt                                                         159                205
      Current portion capital leases                                                         131                110
      Other                                                                                  236                219
                                                                                 ---------------   ----------------
                                                                                           1,460              1,017
                                                                                 ---------------   ----------------

OTHER LIABILITIES
      Accumulated deferred income taxes                                                    1,930              1,983
      Accumulated deferred investment tax credits                                            294                301
      Capital leases                                                                         132                137
      Other                                                                                  283                302
                                                                                 ---------------   ----------------
                                                                                           2,639              2,723
                                                                                 ---------------   ----------------

LONG-TERM DEBT                                                                             3,835              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                                                                    1,662              1,611
                                                                                 ---------------   ----------------
           TOTAL SHAREHOLDERS' EQUITY                                                      3,661              3,706
                                                                                 ---------------   ----------------

CONTINGENCIES (NOTE 5)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                       $        11,595   $         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
                                                                                -----------------------------------
DETROIT EDISON CUMULATIVE PREFERRED STOCK
<S>                                                                                     <C>         <C>           
   Balance at beginning of year                                                         1,501       $          144
   Redemption of cumulative preferred stock                                            (1,001)                (100)
   Preferred stock expense                                                                                       4
                                                                                -------------       --------------
   Balance at June 30, 1998                                                               500       $           48
-------------------------------------------------------------------------------------------------------------------

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

RETAINED EARNINGS
   Balance at beginning of year                                                                     $        1,611
   Net income                                                                                                  205
   Dividends declared on common stock ($0.515 per share)                                                      (150)
   Preferred stock expense                                                                                      (4)
                                                                                                    ---------------
   Balance at June 30, 1998                                                                         $        1,662
-------------------------------------------------------------------------------------------------------------------

TOTAL SHAREHOLDERS' EQUITY                                                                          $        3,661
===================================================================================================================
</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                  Six Months Ended
                                                                            June 30                             June 30
                                                                -------------------------------------------------------------------
                                                                     1998             1997              1998               1997
                                                                -------------------------------------------------------------------


<S>                                                            <C>               <C>            <C>                 <C>         
OPERATING REVENUES                                               $      992        $      878     $      1,893        $      1,742
-----------------------------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES
     Fuel and purchased power                                           266               197              474                 395
     Operation and maintenance                                          247               226              470                 454
     Depreciation and amortization                                      161               165              324                 330
     Taxes other than income                                             70                65              140                 134
-----------------------------------------------------------------------------------------------------------------------------------
         Total Operating Expenses                                       744               653            1,408               1,313
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME                                                        248               225              485                 429
-----------------------------------------------------------------------------------------------------------------------------------

INTEREST EXPENSE AND OTHER
     Interest expense                                                    68                70              136                 141
     Other - net                                                          5                 4               10                   9
-----------------------------------------------------------------------------------------------------------------------------------
         Total Interest Expense and Other                                73                74              146                 150
-----------------------------------------------------------------------------------------------------------------------------------

INCOME BEFORE INCOME TAXES                                              175               151              339                 279

Income Taxes                                                             80                65              146                 119
----------------------------------------------------------------------------------------------------------------------------------
NET INCOME                                                               95                86              193                 160

PREFERRED STOCK DIVIDENDS                                                 2                 3                5                   6
----------------------------------------------------------------------------------------------------------------------------------
NET INCOME AVAILABLE FOR COMMON STOCK                            $       93        $       83     $        188        $        154
===================================================================================================================================
</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                Six Months Ended
                                                                                   June 30                         June 30
                                                                       ------------------------------------------------------------
                                                                              1998            1997           1998            1997
                                                                       ------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                                                    <C>            <C>            <C>            <C>         
   Net Income                                                            $        95    $        86    $        193   $        160
   Adjustments to reconcile net income to net cash
     from operating activities:
       Depreciation and amortization                                             161            165             324            330
       Other                                                                     (36)            (7)            (37)            45
       Changes in current assets and liabilities:
         Accounts receivable                                                     (84)            (1)            (30)           (16)
         Inventories                                                             (36)           (17)            (34)           (14)
         Payables                                                                 27            (81)             49            (48)
         Other                                                                    50             36             (58)           (35)
-----------------------------------------------------------------------------------------------------------------------------------
     Net cash from operating activities                                          177            181             407            422
-----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
   Plant and equipment expenditures                                             (102)          (123)           (220)          (209)
   Nuclear decommissioning trust funds                                           (12)           (27)            (41)           (37)
   Other                                                                          (1)             5              (4)             7
-----------------------------------------------------------------------------------------------------------------------------------
     Net cash used for investing activities                                     (115)          (145)           (265)          (239)
-----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
   Issuance of long-term debt                                                    100              -             100              -
   Increase in short-term borrowings                                              23            182             187            176
   Redemption of long-term debt                                                    -           (139)           (169)          (185)
   Redemption of preferred stock                                                (100)             -            (100)             -
   Dividends on common and preferred stock                                       (83)           (83)           (165)          (165)
   Other                                                                           4              -               3              -
-----------------------------------------------------------------------------------------------------------------------------------
     Net cash used for financing activities                                      (56)           (40)           (144)          (174)
-----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH
   EQUIVALENTS                                                                     6             (4)             (2)             9
CASH AND CASH EQUIVALENTS AT
   BEGINNING OF THE PERIOD                                                         7             15              15              2
-----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                           $        13    $        11    $         13   $         11
===================================================================================================================================
SUPPLEMENTARY CASH FLOW INFORMATION
   Interest paid (excluding interest capitalized)                        $        58    $        60    $        137   $        137
   Income taxes paid                                                              53            131             111            132
   New capital lease obligations                                                  17              -              31             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>

                                                                                     June 30          December 31
                                                                                      1998               1997
                                                                                ---------------    ----------------
ASSETS
CURRENT ASSETS
<S>                                                                            <C>               <C>             
      Cash and cash equivalents                                                  $            13   $             15
      Accounts receivable
           Customer (less allowance for doubtful
                 accounts of $20)                                                            294                300
           Accrued unbilled revenues                                                         167                137
           Other                                                                              69                 63
      Inventories (at average cost)
           Fuel                                                                              164                130
           Materials and supplies                                                            154                150
      Other                                                                                   51                 11
                                                                                 ---------------   ----------------
                                                                                             912                806
                                                                                 ---------------   ----------------

INVESTMENTS
      Nuclear decommissioning trust funds                                                    280                239
      Other                                                                                   43                 38
                                                                                 ---------------   ----------------
                                                                                             323                277
                                                                                 ---------------   ----------------



PROPERTY
      Property, plant and equipment                                                       14,387             14,204
      Property under capital leases                                                          256                256
      Nuclear fuel under capital lease                                                       655                607
      Construction work in progress                                                            9                 12
                                                                                 ---------------   ----------------
                                                                                          15,307             15,079
                                                                                 ---------------   ----------------
Less accumulated depreciation and amortization                                             6,712              6,431
                                                                                 ---------------   ----------------
                                                                                           8,595              8,648
                                                                                 ---------------   ----------------

OTHER ASSETS
      Regulatory assets                                                                      747                856
      Other                                                                                  182                158
                                                                                 ---------------   ----------------
                                                                                             929              1,014
                                                                                 ---------------   ----------------


TOTAL ASSETS                                                                     $        10,759   $         10,745
                                                                                 ===============   ================
</TABLE>

    See notes to condensed consolidated financial statements (unaudited).

                                      12
<PAGE>   13




<TABLE>
<CAPTION>

                                                                                     June 30          December 31
                                                                                      1998               1997
                                                                                 ---------------   ----------------
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
<S>                                                                            <C>               <C>             
      Accounts payable                                                           $           175   $            150
      Accrued interest                                                                        54                 56
      Dividends payable                                                                       80                 83
      Accrued payroll                                                                         84                 80
      Short-term borrowings                                                                  187                  -
      Accumulated deferred income taxes                                                       85                 64
      Current portion long-term debt                                                         119                169
      Current portion capital leases                                                         131                110
      Other                                                                                  227                218
                                                                                 ---------------   ----------------
                                                                                           1,142                930
                                                                                 ---------------   ----------------

OTHER LIABILITIES
      Accumulated deferred income taxes                                                    1,906              1,973
      Accumulated deferred investment tax credits                                            294                301
      Capital leases                                                                         132                137
      Other                                                                                  272                300
                                                                                 ---------------   ----------------
                                                                                           2,604              2,711
                                                                                 ---------------   ----------------


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

SHAREHOLDER'S 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                                                                    1,502              1,478
                                                                                 ---------------   ----------------
           TOTAL SHAREHOLDER'S EQUITY                                                      3,501              3,573
                                                                                 ---------------   ----------------


CONTINGENCIES (NOTE 5)

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY                                       $        10,759   $         10,745
                                                                                  ==============    ===============
</TABLE>

    See notes to condensed consolidated financial statements (unaudited).

                                      13
<PAGE>   14



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

<TABLE>
<CAPTION>

                                                                                              1998
                                                                               ----------------------------------
                                                                                     Shares            Amount
                                                                               ----------------------------------

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

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

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

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

RETAINED EARNINGS
   Balance at beginning of year                                                                     $        1,478
   Net income                                                                                                  193
   Dividends declared
     Common stock ($0.55 per share)                                                                           (160)
     Cumulative preferred stock*                                                                                (5)
   Preferred stock expense                                                                                      (4)
                                                                                                    ---------------
   Balance at June 30, 1998                                                                         $        1,502
------------------------------------------------------------------------------------------------------------------

TOTAL SHAREHOLDER'S EQUITY                                                                          $        3,501
==================================================================================================================
</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 - ACCOUNTING FOR RISK MANAGEMENT ACTIVITIES

DTE Energy Trading, Inc. (DTE ET) is an indirect wholly owned subsidiary of the
Company and began operations in the first quarter of 1998. The new subsidiary 
markets and trades electricity and natural gas physical products and
financial instruments, and provides risk management services utilizing energy
commodity derivative instruments which include futures, exchange traded and 
over-the-counter options, and forward purchase and sale commitments.

Activities for trading purposes of DTE ET are accounted for using the
mark-to-market method of accounting. Under such method, DTE ET's electric power
trading contracts, including both transactions for physical delivery and
financial instruments, are recorded at market value. The resulting unrealized
gains and losses from changes in market value of open positions are recorded as
"Assets or Liabilities from risk management activities" on the Consolidated
Balance Sheet. Current period changes in the "Assets or Liabilities from risk
management activities" are recognized as net gains or losses in "Operating
Revenues" on the Consolidated Statement of Income. The market prices used to
value these transactions reflect management's best estimate considering various
factors including closing exchange and over-the-counter quotations, time value
and volatility factors underlying the commitments.

Detroit Edison continues to account for its forward purchase and sale
commitments and over-the-counter options on a settlement  basis.

                                       15

<PAGE>   16


NOTE 3 - SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS

At June 30, 1998, Detroit Edison had total short-term credit arrangements of
approximately $634 million under which $187 million was outstanding. The amounts
outstanding at June 30, 1998 consisted of $87 million of commercial paper and
$100 million secured by its customer accounts receivable and unbilled revenues
portfolio.

At June 30, 1998, DTE Capital had $117 million of commercial paper outstanding,
backed by a Support Agreement from the Company.

NOTE 4 - LONG-TERM DEBT

In May 1998, Detroit Edison issued $100 million of 7.54% QUIDS. The proceeds
were used to redeem all of the outstanding 7.75% Series Cumulative Preferred
Stock totaling approximately $100 million.

In June 1998, DTE Capital issued $100 million of Remarketed Notes, Series A due
2038. The notes pay interest at 6.17% through 2003. DTE Capital's obligations
have the benefit of a Support Agreement from the Company.

The Company had $62 million in cash and cash equivalents restricted by debt
covenants at June 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), have continued
negotiations following a February 1998 agreement to settle the matters through
binding arbitration. In July 1998, Detroit Edison and the plaintiffs reached
agreement on the terms of a Consent Judgement, which is subject to approval by
the Court. A Fairness Hearing with respect to the terms of the settlement is
scheduled for August 1998. The 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.





                                       16

<PAGE>   17
NOTE 6 - FINANCIAL INSTRUMENTS

TRADING ACTIVITIES


NOTIONAL AMOUNTS AND TERMS

The notional amounts and terms of DTE ET's outstanding energy trading financial 
instruments at June 30, 1998 were:


<TABLE>
<CAPTION>

                                     Fixed Price         Fixed Price               Maximum
                                        Payor             Receiver             Terms in Years
                                    
                                           (Thousands of MWh)
                                    
<S>                                   <C>                <C>                    <C>      
         Electricity Commodities         523               1,063                  1.5 years
                                         ---               -----
</TABLE>

At June 30, 1998, DTE ET also had sales and purchase commitments for physical
delivery associated with contracts based on fixed prices totaling 2,692,394 MWh
with terms extending up to 1.5 years.

Notional amounts reflect the volume of transactions but do not necessarily
represent the amounts exchanged by the parties to the energy commodity 
derivative instruments. Accordingly, notional amounts do not accurately 
measure DTE ET's exposure to market or credit risks. The maximum terms in 
years detailed above are not indicative of likely future cash flows as these 
positions may be offset in the markets at any time in response to DTE ET's risk 
management needs.

FAIR VALUE

At June 30, 1998, the fair values of DTE ET's energy commodity derivative 
instruments were :

<TABLE>
<CAPTION>

                                         Current                        Current
                                         Assets                         Liabilities
                                                  (Dollars in Millions)
                                        
<S>                                    <C>                             <C>    
Average Fair Value for the
Three Months Ended June 30, 1998         $     49                        $    54
                                          =======                         ======

Fair Value as of June 30, 1998           $    129                        $   135
                                          =======                         ======
</TABLE>

The weighted average term of DTE ET's energy commodity derivative instruments
as of June 30, 1998 was less than three months. 


MARKET RISK

DTE ET manages, on a portfolio basis, the market risks inherent in its
activities subject to parameters established by the Company's Risk Management 
Committee (RMC), which is 

                                       17

<PAGE>   18


authorized by its Board of Directors. Market risks are monitored
by the RMC to ensure compliance with the Company's stated risk management
policies. DTE ET marks its portfolio to market and measures its risk on a daily
basis in accordance with Value-at-Risk (VaR) and other risk methodologies. The
quantification of market risk using VaR provides a consistent measure of risk 
across diverse energy markets and products.

CREDIT RISK

DTE ET is exposed to credit risk in the event of nonperformance by customers or
counterparties of its contractual obligations. The concentration of customers
and/or counterparties may impact overall exposure to credit risk, either
positively or negatively, in that the counterparties may be similarly affected
by changes in economic, regulatory or other conditions. However, DTE ET
maintains credit policies with regard to its customers' and counterparties' that
management believes significantly minimize overall credit risk. These policies
include an evaluation of potential customers and counterparties financial
condition and credit rating, collateral requirements or other credit
enhancements such as letters of credit or guarantees, and the use of
standardized agreements which allow for the netting or offsetting of positive
and negative exposures associated with a single counterparty. Based on these
policies, the Company does not anticipate a materially adverse effect on
financial position or results of operations as a result of customer or
counterparty nonperformance. Those futures and option contracts which are traded
on the New York Mercantile Exchange are financially guaranteed by the Exchange
and have nominal credit risk.

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

This Quarterly Report on Form 10-Q, including the report of Deloitte & Touche
LLP (on page 19) will automatically be incorporated by reference in the
Prospectuses constituting part of the Registration Statements on Form S-3
(Registration Nos. 33-53207 and 33-64296) 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.



                                       18

<PAGE>   19


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 June 30, 1998, and the related condensed consolidated statements of income
and of cash flows for the three-month and six-month periods ended June 30, 1998
and 1997, and the condensed consolidated statements of changes in shareholders'
equity for the six-month period ended June 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
July 27, 1998

                                       19
<PAGE>   20
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 six months ended June 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.

GROWTH

During the second quarter of 1998, the Company invested in DTE Energy
Solutions Inc., an indirect subsidiary of the Company, which  provides high
quality and innovative utility products and services, specifically in the area
of system distribution and customer service for utilities, municipals and
cooperatives. DTE Energy Solutions Inc. and Probyn & Co. of Toronto have formed
a joint venture to market utility and energy    related services to municipal
electric utilities in Canada.  The new  company, DTE/Probyn Energy Solutions
Inc., will combine the energy expertise of the Company with Probyn, a provider
of financial and energy advisory services, and the owner-operator of five
generating stations in four Canadian provinces. DTE Energy Solutions Inc. also
formed a partnership with National Pole Recycling Inc. to develop a sawmill
operation to recycle, manufacture and market products from retired utility
poles supplied by Detroit Edison.

DTE Energy Services, Inc. a wholly owned subsidiary of the Company, purchased 
a coke oven battery from Bethlehem Steel Corp. in the third quarter of 1998.
The coke battery will serve the Bethlehem Burns Harbor, Indiania a Steelmaking
plant.

Non-regulated operations are projected to increase over the five year period
ending 2002, which could result in earnings of as much as $150 million annually
from those operations.

A new record electrical demand of 10,701 MW was set in June 1998. Detroit Edison
was able to meet the record demand through careful planning and implementation
of a summer electricity supply plan.

See Detroit Edison's Part II, "Item 5 - Other Information" for a discussion of
proceedings related to Detroit Edison's Conners Creek Power Plant.

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 



                                       20

<PAGE>   21

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 Accountings 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 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. 7l. 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 EITF 1997 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 

                                       21

<PAGE>   22


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
has $383 million of net regulatory assets and $4.9 billion of net investment in
generation plant recorded in Property, Plant and Equipment at June 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. An expedited hearing
schedule has been requested.

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.

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.

The MPSC staff's Market Power Report was issued in June 1998. The MPSC staff
concluded that Detroit Edison and Consumers Energy Company will both possess
Market Power in a Michigan electricity market unless implementation of a
proactive regulatory strategy to counterbalance utility Market Power is
undertaken. The report notes, "The current Michigan market is so highly
concentrated and the advantages of incumbent utility companies are so pervasive
that proactive measures are imperative." Divestiture of generation, while
discussed as an effective and popular option in other states, is not recommended
by the MPSC staff at this time. However, the MPSC staff believes if measures
undertaken to mitigate Market Power are not successful, divestiture could be
revisited.

Detroit Edison has withdrawn its March 1998 request to suspend the PSCR clause,
but continues to pursue the suspension through its ongoing 1998 PSCR case.


                                       22

<PAGE>   23


LIQUIDITY AND CAPITAL RESOURCES

CASH PROVIDED BY OPERATING ACTIVITIES

Net cash from operating activities was higher in the three and six month periods
due to decreases in accounts payable partially offset by increases in accounts
receivable.

CASH USED FOR INVESTING ACTIVITIES

Net cash used for investing was lower for the three month period due to lower
plant and equipment expenditures and lower contributions to the nuclear
decommissioning trust funds.

Net cash used for investing was higher for the six month period due to higher
investment in non-regulated investments, partially offset by lower plant and
equipment expenditures.

Cash requirements for non-regulated investments are estimated to be
approximately $488 million in 1998, of which $221 million had been expended as
of June 30, 1998.

DTE Energy Services Inc., a wholly owned subsidiary of the Company,     
purchased a coke battery from Bethlehem Steel Corp. for approximately $227
million in the third quarter of 1998. 

Detroit Edison's 1998 cash requirements for its capital expenditure program are
estimated at $512 million, of which $220 million had been expended as of June
30, 1998.

CASH (USED FOR) FROM FINANCING ACTIVITIES

Net cash used for financing was higher in the three month period due primarily
to the repayment of short-term borrowings and redemption of preferred stock.

Net cash from financing was lower in the six month period due primarily to the
redemption of preferred stock partially offset by higher short-term borrowings.

Detroit Edison will redeem tax exempt obligations Series A-1989 of
$100 million and A-1989 B of $18.4 million in December 1999 utilizing the
proceeds of a forward refinancing, with the issuance of refunding bonds planned
for September 1999, subject to the satisfactory completion of all
documentation.

Detroit Edison is also considering refinancing approximately $157 million of 
tax exempt obligations (Series I-1989, I-1989 B, CC, I-1990) issued on its 
behalf by Monroe County, MI.

RESULTS OF OPERATIONS

For the three months ended June 30, 1998, the Company's net income was $101
million or $0.69 per common share as compared to $85 million or $0.59 per common
share earned in the three months ended June 30, 1997. For the six months ended
June 30, 1998 net income was $205 million or $1.41 per common share compared to
$156 million or $1.07 per common share earned in the six months ended June 30,
1997.


                                       23
<PAGE>   24

The 1998 three month and six month earnings were higher than 1997 due to higher
sales and increased earnings from non-regulated subsidiary operations, partially
offset by higher operating expenses.

On July 21, 1998, the Detroit Edison service territory experienced a severe
thunderstorm. High winds and lightning strikes caused approximately $28 million
of damage to its distribution system. Approximately $24 million will be a charge
to earnings in the third quarter of 1998.

OPERATING REVENUES

Increases in operating revenues were due primarily to higher non-regulated
subsidiary revenues, higher system sales and sales between utilities.

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

<TABLE>
<CAPTION>

                                                                                  Three                Six
                                                                                  Months              Months
                                                                                 --------            --------
<S>                                                                               <C>               <C>   
       Residential                                                                   9.8  %            4.9  %
       Commercial                                                                    8.4               5.7
       Industrial                                                                    4.9               3.1
       Other (primarily sales for resale)                                           20.7              35.0
           Total System                                                              8.1               5.8
       Sales between utilities                                                     157.3             194.3
           Total                                                                    14.6              13.2
</TABLE>

The increase in residential sales resulted from growth in the customer base,
increased usage and increased cooling related sales in the second quarter due to
unusually warm weather. Commercial sales increased, reflecting a
continuation of favorable economic conditions. The increase in industrial sales
reflects increased demand in the construction and automotive sectors in spite of
the General Motors strike. Sales to other customers increased reflecting
increased demand from sales for resale customers. Sales between utilities
increased due to greater demand for energy and increased availability of energy
for sale.


OPERATING EXPENSES

FUEL AND PURCHASED POWER

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


                                       24
<PAGE>   25
<TABLE>
<CAPTION>

                                                                   Three Months                 Six Months
                                                                 ----------------           ------------------
                                                                 1998        1997           1998          1997
                                                                 ----        ----           ----          ----
                                                                              (Thousands of MWh)
<S>                                                            <C>         <C>           <C>         <C>   
       Power plant generation
           Fossil                                                10,353       10,032        21,397         20,398
           Nuclear                                                2,305        1,260         4,288          1,247
       Purchased power                                            1,817        1,368         2,783          3,572
                                                               --------    ---------     ---------       --------
       Net system output                                         14,475       12,660        28,468         25,217
                                                               ========    =========     =========       ========

       Average unit cost ($/MWh)                               $  17.69    $   14.26     $   15.65       $  14.59
                                                               ========    =========     =========       ========
</TABLE>

Fuel and purchased power expense increased in the three month period due to
higher average unit costs because of higher purchased power unit costs as 
a result of increased market demand for power during periods of hot
weather and higher net output. 

For the six month period, fuel and purchased power expense increased due to
higher net system output, higher average unit costs because of higher purchased
power 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 ($39 million), the
Conners Creek restart ($7.3 million), storm expense ($5.2 million) and Year 2000
expenses ($3.5 million).

Operation and maintenance expense increased for the six month period due
primarily to non-regulated subsidiary operation expense ($78 million), prior
year storm amoritization ($7.5 million), the Conners Creek restart ($7.3
million) and Year 2000 expense ($4.5 million), partially offset by lower storm
expense ($14.2 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.

INCOME TAXES

Although income before income taxes was higher in 1998 than 1997, income tax
expense for the Company did not increase due primarily to increased alternate
fuels credits in 1998, partially offset by an increase relating to prior years
income taxes of Detroit Edison.


                                       25

<PAGE>   26

NEW ACCOUNTING STANDARD

In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities". This Statement requires companies to record
derivatives on the balance sheet as assets and liabilities, measured at fair
value. Gains or losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether it
qualifies for hedge accounting. The Company has not yet determined the impact of
this Statement on the consolidated financial statements. This Statement is
effective for fiscal years beginning after June 15, 1999, with earlier adoption
encouraged. The Company will adopt this accounting standard as required by
January 1, 2000.


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 and nuclear
requirements, the impact of newly-required FERC tariffs and the success of
non-regulated lines of business. 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.





                                     26

<PAGE>   27

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
         DTE ENERGY COMPANY AND THE DETROIT EDISON COMPANY

The Company measures the risk inherent in DTE ET's portfolio utilizing VaR
analysis and other methodologies, which simulate forward  price curves in
electric power markets to quantify estimates of the magnitude  and probability
of potential future losses related to open contract positions.  DTE ET's VaR
expresses the potential loss in fair value of its forward contract and option
position over a particular period of time, with a specified likelihood of
occurrence, due to an adverse market movement. The Company reports VaR as a
percentage of its earnings, based on a 95% confidence interval,  utilizing 10
day holding periods.  At of June 30, 1998, DTE ET's VaR from its  power
marketing and trading activities was less than 1% of the Company's      
consolidated "Income Before Income Taxes" for the six month period ended June
30, 1998. The VaR model uses the variance-covariance statistical modeling
technique, and implied and historical  volatilities and correlations over the
past 20 day period. The estimated  market prices used to value these
transactions for VaR purposes reflect the  use of established pricing models
and various factors including quotations from  exchanges and over-the-counter
markets, price volatility factors, the time  value of money, and location
differentials. For further information, see the  Company's and Detroit Edison's
Note 2 - Accounting for Risk Management  Activities and Note 6 - Financial
Instruments.



                                       27
<PAGE>   28
                               DTE ENERGY COMPANY
                           PART II - OTHER INFORMATION

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

(a)    The annual meeting of the holders of Common Stock of the Company was held
       on April 27, 1998. Proxies for the meeting were solicited pursuant to
       Regulation 14(a).

(b)    The  following  four  directors  were  elected to serve until the annual
       meeting in the year 2001 with the votes shown:
                                                               Total Vote
                                        Total Vote For        Withheld From
                                        Each Director          Each Director
                                       ---------------        --------------   
            Terence E. Adderley         111,704,821             3,736,422
            Anthony F. Earley, Jr.      111,714,268             3,725,697
            Allan D. Gilmour            111,715,170             3,725,221
            Theodore S. Leipprandt      111,684,996             3,754,969

            The terms of the previously elected nine directors listed
            below continue until the annual meeting dates shown after each
            name:

            Lillian Bauder                            April 28, 1999
            David Bing                                April 28, 1999
            Larry G. Garberding                       April 28, 1999
            Alan E. Schwartz                          April 28, 1999
            William Wegner                            April 28, 1999
            William C. Brooks                         April 26, 2000
            John E. Lobbia                            April 26, 2000
            Eugene A. Miller                          April 26, 2000
            Dean E. Richardson                        April 26, 2000

(c) (i) Shareholders ratified the apointment of Deloitte & Touche LLP as the 
        Company's independent auditors for the year 1998 with the votes shown:

                   For                     Against                    Abstain
                   ---                     -------                    -------
               114,070,736                 561,936                    807,730

   (ii) Shareholders also voted on the item below:

        A shareholder proposal regarding the impact of deregulation, including
        its impact on the operation of Fermi 2.

                   For                     Against                    Abstain
                   ---                     -------                    -------
                6,027,145                88,875,815                  7,312,687

(d)     Not applicable.


                                       28

<PAGE>   29

                               DTE ENERGY COMPANY
                           PART II - OTHER INFORMATION

ITEM 5 - OTHER INFORMATION.

Effective August 1, 1998, Mr. Anthony F. Earley, Jr., currently President and
Chief Operating Officer of the Company and Detroit Edison, assumed the
positions of Chairman of the Board, Chief Executive Officer, President, and
member of a newly created Office of the President of the Company and Detroit
Edison. In addition to Mr. Earley, members of the Office of the President are
Gerard M. Anderson, currently Executive Vice President, who will also assume the
position of President and Chief Operating Officer, DTE Energy Resources and
Robert J. Buckler, currently Executive Vice President, who will assume the
position of President and Chief Operating Officer, DTE Energy Distribution. DTE
Energy Resources encompasses Detroit Edison's non-nuclear power generation and
fuel supply activities and the Company's non-regulated operating units. DTE 
Energy Distribution includes Detroit Edison's electric transmission and 
distribution activities and the Company's non-regulated retail product and 
service activities.

Also effective August 1, 1998, Mr. John E. Lobbia retired from his duties as
Chairman of the Board and Chief Executive Officer of the Company and Detroit
Edison. He will continue as a director of both companies.



                                       29
<PAGE>   30



                        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 18.

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.

In March 1998, Detroit Edison filed its 1997 PSCR Reconciliation Case with the
MPSC. PSCR costs for 1997 which were under-recovered by $2.7 million, when
combined with Fermi 2 performance standards, would result in a refund to
customers of approximately $21 million. The Company has accrued for the refund.

In an April 24, 1998 informational filing with the MPSC, Detroit Edison proposed
customer options that will assist in meeting customer demand this summer.
Detroit Edison also proposed an experimental program permitting certain
industrial customers with interruptible service to secure their own backup power
during summer peak periods in 1998 and 1999. The filing also suggested that 
large customers may be permitted to negotiate for reduced usage under a capacity
release program. Detroit Edison declined to implement the 90 MW retail
wheeling experiment for the reason that it would not contribute to meeting the
capacity need. In June 1998, the MPSC approved customer capacity options
conditioned on customer backup power being obtained from sources not available
to Detroit Edison.

In July 1998, Detroit Edison filed a required review of its current depreciation
expense with the MPSC. The application requests a change in the current
non-nuclear depreciation accrual rate from 3.35% to 4.01%, in effect increasing
annual depreciation expenses by 20%, or $68 million. An adjustment in electric
rates is not being sought at this time.

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 and 


                                       30
<PAGE>   31

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.

Effective May 26, 1998, Lynne Halpin was elected Vice President and Chief
Information Officer. Since 1996 she was Vice President of Business Applications
at Netscape Communications Corp. From 1993 to 1996, she was Director of Business
Systems Development and Acting Vice President of Global Systems Development at
Xerox Corp.

Effective August 1, 1998, Ron A. May, currently Assistant Vice President, Energy
Delivery, was elected Vice President, Energy Delivery and Service.

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

                                       31

<PAGE>   32





              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
                               --------
                                 4-193  - 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.

                                 4-194  - $100,000,000 Support Agreement,
                                          dated as of June 16, 1998, between DTE
                                          Energy Company and DTE Capital
                                          Corporation.

                                 4-196  - Indenture, dated as of June 15,
                                          1998, between DTE Capital Corporation
                                          and The Bank of New York, as Trustee.

                                 4-197  - 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.

                                10-26*  - Employment Agreement, dated April
                                          16, 1998, between Detroit Edison and
                                          Lynn Halpin.

                                11-12   - DTE Energy Company Basic and Diluted
                                          Earnings Per Share.

                                12-12   - The Detroit Edison Company
                                          Computation of Ratio of Earnings to
                                          Fixed Charges and Preferred Stock
                                          Dividends.

                                 15-8   - Awareness Letter of Deloitte &
                                          Touche LLP regarding their report
                                          dated July 27, 1998.

                                27-21   - Financial  Data  Schedule  for the 
                                          period ended June 30, 1998 for DTE
                                          Energy Company.

                                27-22   - Financial  Data  Schedule  for the
                                          period ended June 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).


                                       32

<PAGE>   33

                                  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).

                                  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:

<TABLE>
                                      <S>                           <C>   
                                          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
</TABLE>


                                       33
<PAGE>   34

<TABLE>
                                      <S>                         <C>                 
                                          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 
                                          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) 
                                          September 15, 1993           Exhibit 4-158 to Form 10-Q for  
                                                                         quarter ended September 30, 1993 

</TABLE>

                                     34
<PAGE>   35
<TABLE>
<S>                                   <C>                            <C>                  
                                          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
</TABLE>

                                  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).

                                  4(j)  - 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).



                                       35
<PAGE>   36

                                 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).

                                 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 as of
                                          September 1, 1990, as amended, among
                                          Detroit Edison, Renaissance, the Banks
                                          party thereto and Barclays Bank, PLC,
                                          New York 


                                       36
<PAGE>   37

                                          Branch, as Agent (Exhibit 99-13 to
                                          Form 10-Q for quarter ended September
                                          30, 1996).

                                 99(k)  - Fifth Amendment, dated as of September
                                          1, 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(l)  - $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).

                                 99(m)  - 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(n)  - 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(o)  - 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(p)  - 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(q)  - 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(r)  - 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).


                                       37
<PAGE>   38

                                 99(s)  - 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).

                                 99(t)  - 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(u)  - 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(v)  - 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(w)  - 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(x)  - 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(y)  - $60,000,000 Support Agreement, dated
                                          as of January 21, 1998, between DTE
                                          Energy Company and DTE Capital
                                          Corporation.

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



       (b) Registrants did not file any reports on Form 8-K during second
           quarter 1998.

       (c) *Denotes management contract or compensatory plan or arrangement.


                                       38
<PAGE>   39


                                   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         August 13, 1998                    /s/ SUSAN M. BEALE
         ---------------------    ---------------------------------------------
                                                  Susan M. Beale
                                        Vice President and Corporate Secretary





Date         August 13, 1998                    /s/ DAVID E. MEADOR
         ---------------------    ---------------------------------------------
                                                  David E. Meador
                                            Vice President and Controller








                                       39
<PAGE>   40



                                   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         August 13, 1998                      /s/ SUSAN M. BEALE
         ---------------------    ---------------------------------------------
                                                  Susan M. Beale
                                        Vice President and Corporate Secretary





Date         August 13, 1998                      /s/ DAVID E. MEADOR
         ---------------------    ---------------------------------------------
                                                  David E. Meador
                                            Vice President and Controller











                                       40
<PAGE>   41







                            QUARTERLY REPORTS ON FORM
                              10-Q FOR THE QUARTER
                               ENDED JUNE 30, 1998



                  DTE ENERGY COMPANY                          FILE NO. 1-11607

                  DETROIT EDISON COMPANY                      FILE NO. 1-2198

                                  EXHIBIT INDEX



                  Exhibits filed herewith.

                               Exhibit
                               Number


                                 4-193 -  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.

                                 4-194 -  $100,000,000  Support  Agreement, 
                                          dated as of June  16,  1998  between  
                                          DTE Energy Company and DTE Capital 
                                          Corporation.

                                 4-196 -  Indenture, dated as of June 15,
                                          1998, between DTE Capital Corporation
                                          and The Bank of New York, as Trustee.

                                 4-197 -  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.

                                10-26* -  Employment Agreement, dated April
                                          16, 1998, between Detroit Edison and
                                          Lynn Halpin.

                                11-12  -  DTE Energy Company and Diluted 
                                          Earnings Per Share.

                                12-12  -  The Detroit Edison Company
                                          Computation of Ratio of Earnings to
                                          Fixed Charges and Preferred Stock
                                          Dividends.

                                 15-8  -  Awareness Letter of Deloitte &
                                          Touche LLP regarding their report
                                          dated July , 1998.



                                      41
<PAGE>   42

                                27-21  -  Financial Data Schedule for the 
                                          period ended June 30. 1998 for DTE 
                                          Energy Company.

                                27-22  -  Financial Data Schedule for the 
                                          period ended June 30, 1998 for The
                                          Detroit Edison Company and Subsidiary 
                                          Companies.

Exhibits incorporated herein by reference.        See Page Nos.___ 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.

                                  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
                                          


                                      42
<PAGE>   43

                                         February 29, 1992 
                                         April 5, 1992 
                                         July 15, 1992 
                                         July 31, 1992 
                                         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
                                         November 30, 1992 
                                         January 1, 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.


                                      43
<PAGE>   44

                                  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) - 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.


                                 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, 


                                      44
<PAGE>   45

                                         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.

                                 99(j) - Fourth  Amendment, dated as of August 
                                         29,  1996, to $200,000,000  364-Day
                                         Credit  Agreement 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 September
                                         1, 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.

                                 99(l) - $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(m) - 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(n) - 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(o) - 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(p) - 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, 



                                      45
<PAGE>   46


                                         Renaissance, the Banks
                                         Party thereto and Barclays Bank PLC,
                                         New York Branch, as Agent.

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

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

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

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

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




                                      46
<PAGE>   47


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


              *Denotes management contract or compensatory plan or arrangement
              required to be entered as an exhibit to this report.





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