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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
  FORM 10-K  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2003 Commission file number 333-51066 The Detroit Edison Securitization Funding LLC, a Michigan limited liability
company, meets the conditions set forth in General Instruction I (1)(a) and
(b) ofForm 10-Kand is, therefore, filing this form with the reduced
disclosure format. THE DETROIT EDISON SECURITIZATION FUNDING LLC  Michigan
(State or other jurisdiction of
incorporation or organization)
    
    38-0478650
(I.R.S. Employer
Identification No.)2000 2nd Avenue, Detroit, Michigan
(Address of principal executive offices)
    
    48226-1279
(Zip Code)
 313-235-8000
(Registrants telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:  Securities registered pursuant to Section 12(g) of the Act:   Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.      Yesþ      Noo Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendments to
this Form 10-K.       þ Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).      Yeso      Noþ The registrant is a single member limited liability company whose equity is
solely owned by The Detroit Edison Company. DOCUMENTS INCORPORATED BY REFERENCE




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The Detroit Edison
Securitization Funding LLC
 
Annual Report on Form 10-K
Year Ended December 31, 2003 Table of Contents PagePart IItems 1 & 2.
    
    Business & Properties
    
    
    1Item 3.
    
    Legal Proceedings
    
    
    1Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    1Part IIItem 5.
    
    Market for Registrants Members Equity and Related Owner Matters
    
    
    2Item 6.
    
    Selected Financial Data
    
    
    2Item 7.
    
    Managements Narrative Analysis of Results of Operations
    
    
    2Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    3Item 8.
    
    Financial Statements and Supplementary Data
    
    
    4Item 9.
    
    Change in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    14Item 9A.
    
    Controls and Procedures
    
    
    14Part IIIItem 10.
    
    Directors and Executive Officers of the Registrant
    
    
    14Item 11.
    
    Executive Compensation
    
    
    14Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and
Related Owner Matters
    
    
    14Item 13.
    
    Certain Relationships and Related Transactions
    
    
    14Item 14.
    
    Principal Accountant Fees and Services
    
    
    14Part IVItem 15.
    
    Exhibits, Financial Statement Schedules, and Reports on Form 8-K
    
    
    15Signatures
    
    
    
    
    17Computation of Ratio of Earnings to Fixed ChargesChief Executive Officer Section 302 CertificationChief Financial Officer Section 302 CertificationChief Executive Officer Section 906 CertificationChief Financial Officer Section 906 CertificationMonthly Servicer Certificate Dated Nov. 13, 2003Monthly Servicer Certificate Dated Dec. 12, 2003Monthly Servicer Certificate Dated Jan. 14, 2003




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Forward-Looking Statements Certain information presented herein includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve certain risks and uncertainties that may
cause actual results to differ materially from those contemplated, projected,
estimated or budgeted in such forward-looking statements. Securitization
bondholders may suffer payment delays or losses if the Detroit Edison
Securitization Funding LLCs (Companys) assets are not sufficient to pay
interest or the scheduled principal of the securitization bonds. Funds for
payments are dependent upon the securitization property and the right to
collect the securitization surcharge over a period limited to 15 years pursuant
to a Michigan statute. In addition, collections are dependent on the level of
The Detroit Edison Company (Detroit Edison) electric deliveries to customers. 
 Part I 
 Items 1. & 2. Business & Properties The Company, a single member limited liability company established by Detroit
Edison under the laws of the State of Michigan, was formed on November 20,
2000. The Company is a wholly owned subsidiary of Detroit Edison, an operating
electric public utility that is a wholly owned subsidiary of DTE Energy Company
(DTE Energy). As discussed in Item 7, Managements Narrative Analysis of
Results of Operations, the Company was organized for the sole purpose of
purchasing and owning Securitization Property, issuing securitization bonds,
and performing activities that are necessary to accomplish these purposes. The
Company had no financial operations until February 15, 2001. On March 9, 2001, the Company issued $1.75 billion of securitization bonds
(Note 3) and used the net proceeds to purchase securitization property from
Detroit Edison. Securitization Property is a property right authorized by Michigan state
legislation and by a financing order of the Michigan Public Service Commission
(MPSC). The Securitization Property is qualified costs that primarily represent
Detroit Edisons unamortized investment in the 1,150 Megawatt Fermi 2 nuclear
power plant that was classified as a regulatory asset. The Michigan statute
provided, among other things, the irrevocable right of Detroit Edison, or its
successor or assignee, to impose, collect and receive a non-bypassable
surcharge from customers pursuant to an order, issued on November 2, 2000, and
clarified on January 4, 2001, by the MPSC in accordance with the June 2000
Customer Choice and Electricity Reliability Act (Act). 
 Item 3. Legal Proceedings None. 
 Item 4. Submission of Matters to a Vote of Security Holders Omitted per general instruction I (2) (c) of Form 10-K for wholly owned
subsidiaries (reduced disclosure format). 1




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Part II 
 Item 5. Market for Registrants Members Equity and Related Owner Matters The Company was formed as a single member limited liability company, solely
owned by Detroit Edison for its own benefit. As such, no market exists for the
members equity. 
 Item 6. Selected Financial Data Omitted per general instruction I (2) (a) of Form 10-K for wholly owned
subsidiaries (reduced disclosure format). 
 Item 7. Managements Narrative Analysis of Results of Operations The Results of Operations discussion for the Company is presented in accordance
with General Instruction I (2) (a) of Form 10-K for wholly owned subsidiaries
(reduced disclosure format). As discussed in Note 1, the Company is a special purpose entity established by
Detroit Edison to recover certain qualified costs, called Securitization
Property by Michigan statute. The qualified costs primarily represent Detroit
Edisons unamortized investment in the 1,150 Megawatt Fermi 2 nuclear power
plant that was classified as a regulatory asset. On March 9, 2001, the Company
issued securitization bonds and used the net proceeds to purchase the
Securitization Property from Detroit Edison. The Company receives surcharge
revenues that are intended to recover its costs and service its debt.
Amortization expense associated with the Securitization Property is adjusted as
necessary so that expenses equal revenues and interest income. For the year ended December 31, 2003, the Company earned $173,376,000 in
surcharge revenues and $773,000 in interest income compared to $205,230,000 in
surcharge revenues and $1,124,000 in interest income for the year ended
December 31, 2002. The decrease in surcharge revenues is due to lower
electricity sales by Detroit Edison and a decrease in the surcharge rate due to
over collection in the prior year. Amortization expense consists of
amortization of the Securitization Property, overcollateralization fee, and the
over or under recovery of securitization surcharge (SC). The amortization
expense for the years ended December 2003 and 2002 was $70,927,000 and
$98,887,000, respectively. The decrease in amortization expense reflects the
adjustment needed to have revenues and interest income equal expenses. The
lower amount was primarily attributable to the decrease in surcharge revenues.
During 2003, the Company also incurred interest expense of $100,480,000,
amortization of debt issuance costs of $1,510,000, servicing fees of $875,000,
and administrative fees of $250,000 compared to interest expense of
$104,873,000, amortization of debt issuance costs of $1,398,000, servicing fees
of $875,000, and administrative fees of $250,000 in 2002. For the year ended December 31, 2002, the Company earned $205,230,000 in
surcharge revenues and $1,124,000 in interest income compared to $143,920,000
in surcharge revenues and $824,000 in interest income for the year ended
December 31, 2001. The increase in surcharge revenues is due to higher
electricity sales by Detroit Edison and an increase in the surcharge rate, as
well as the fact that the Company was not formed until March 2001. The
amortization expense for the years ended December 2002 and 2001 was $98,887,000
and $56,333,000, respectively. The increase in amortization expense reflects
the adjustment needed to have revenues and interest income equal expenses. The
higher amount was primarily attributable to the increase in surcharge revenues.
During 2002, the Company also incurred interest expense of $104,873,000,
amortization of debt issuance costs of $1,398,000, servicing fees of $875,000,
and administrative fees of $250,000 compared to interest expense of
$86,928,000, amortization 2




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of debt issuance costs of $482,000, servicing fees of $729,000,
and administrative fees of $208,000 in 2001. 
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk The Company estimates that if interest rates were 10% higher or lower, the fair
value of long-term debt at December 31, 2003 would decrease $39 million and
increase $41 million, respectively. 3




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Item 8. Financial Statements and Supplementary Data PageIndependent Auditors Report
    
    
    5Statement of Operations
    
    
    6Statement of Financial Position
    
    
    7Statement of Cash Flows
    
    
    8Statement of Members Equity
    
    
    9Notes to Financial Statements
    
    
    10
 4




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Independent Auditors Report To the Managers of
The Detroit Edison Securitization Funding LLC We have audited the statement of financial position of The Detroit Edison
Securitization Funding LLC, (the Company) as of December 31, 2003 and 2002,
and the related statements of operations, cash flows and members equity for
each of the three years in the period ended December 31, 2003. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in
all material respects, the financial position of The Detroit Edison
Securitization Funding LLC at December 31, 2003 and 2002, and the results of
its operations and its cash flows for each of the three years in the period
ended December 31, 2003 in conformity with accounting principles generally
accepted in the United States of America. /s/ DELOITTE & TOUCHE
LLP
Detroit, Michigan
March 1, 2004 5




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The Detroit Edison Securitization Funding LLC
Statement of Operations Year Ended December 312003
    
    2002
    
    2001(in Thousands)Operating Revenues
    
    $
    173,376
    
    
    $
    205,230
    
    
    $
    143,920Operating ExpensesAmortization expense
    
    
    70,927
    
    
    
    98,887
    
    
    
    56,333Service fees
    
    
    875
    
    
    
    875
    
    
    
    729Administrative fees
    
    
    250
    
    
    
    250
    
    
    
    208Other
    
    
    107
    
    
    
    71
    
    
    
    6472,159
    
    
    
    100,083
    
    
    
    57,334Operating Income
    
    
    101,217
    
    
    
    105,147
    
    
    
    86,586Interest Expense and OtherInterest expense
    
    
    100,480
    
    
    
    104,873
    
    
    
    86,928Interest income
    
    
    (773
    )
    
    
    (1,124
    )
    
    
    (824
    )Amortization of debt issuance costs
    
    
    1,510
    
    
    
    1,398
    
    
    
    482101,217
    
    
    
    105,147
    
    
    
    86,586Net Income
    
    $
    
    
    
    $
    
    
    
    $
    
 See Notes to Financial Statements 6




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The Detroit Edison Securitization Funding LLC
Statement of Financial Position December 312003
    
    2002(in Thousands)ASSETSCurrent AssetsRestricted cash
    
    $
    79,447
    
    
    $
    94,757Accounts receivable
    
    
    22,193
    
    
    
    23,564Accrued unbilled revenues
    
    
    9,225
    
    
    
    8,309110,865
    
    
    
    126,630Securitized Regulatory AssetsSecuritization property, less accumulated amortization of
$192,473 and $106,743, respectively
    
    
    1,527,243
    
    
    
    1,612,973Other AssetsUnamortized bond issuance cost, less accumulated
amortization of $3,390 and $1,880 respectively
    
    
    26,895
    
    
    
    28,405$
    1,665,003
    
    
    $
    1,768,008LIABILITIES AND MEMBERS EQUITYCurrent LiabilitiesAccrued interest
    
    $
    32,894
    
    
    $
    34,428Accounts payable to member
    
    
    375
    
    
    
    375Current portion of securitization bonds payable
    
    
    88,727
    
    
    
    88,266Securitization reserve
    
    
    36,265
    
    
    
    50,095158,261
    
    
    
    173,164Non-Current Liabilities and Deferred CreditsSecuritization bonds payable
    
    
    1,496,221
    
    
    
    1,584,948Other
    
    
    1,771
    
    
    
    1,1461,497,992
    
    
    
    1,586,094Members Equity
    
    
    8,750
    
    
    
    8,750$
    1,665,003
    
    
    $
    1,768,008
 See Notes to Financial Statements 7




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The Detroit Edison Securitization Funding LLC
Statement of Cash Flows Year Ended December 312003
    
    2002
    
    2001(in Thousands)Operating ActivitiesNet income
    
    $
    
    
    
    $
    
    
    
    $
    Adjustments to reconcile net income to net cash
from operating activities:Amortization
    
    
    74,035
    
    
    
    100,285
    
    
    
    56,815Changes in current assets and liabilities:Accounts receivable and accrued unbilled revenues
    
    
    455
    
    
    
    (2,420
    )
    
    
    (29,453
    )Interest payable
    
    
    (1,569
    )
    
    
    (1,253
    )
    
    
    35,681Accounts payable
    
    
    35
    
    
    
    (24
    )
    
    
    375Net cash from operating activities
    
    
    72,956
    
    
    
    96,588
    
    
    
    63,418Investing ActivitiesRestricted cash
    
    
    15,310
    
    
    
    (26,917
    )
    
    
    (67,840
    )Purchase of securitized property
    
    
    
    
    
    
    
    
    
    
    (1,747,191
    )Capitalization of issuance cost
    
    
    
    
    
    
    (22
    )
    
    
    Net cash from (used for) investing activities
    
    
    15,310
    
    
    
    (26,939
    )
    
    
    (1,815,031
    )Financing ActivitiesIssuance of bonds
    
    
    
    
    
    
    
    
    
    
    1,750,000Members investment
    
    
    
    
    
    
    
    
    
    
    8,750Payment of bonds
    
    
    (88,266
    )
    
    
    (72,521
    )
    
    
    (4,265
    )Net cash from (used for) financing activities
    
    
    (88,266
    )
    
    
    (72,521
    )
    
    
    1,754,485Net Increase (Decrease) in Cash and Cash Equivalents
    
    
    
    
    
    
    (2,872
    )
    
    
    2,872Cash and Cash Equivalents at Beginning of the Period
    
    
    
    
    
    
    2,872
    
    
    
    Cash and Cash Equivalents at End of the Period
    
    $
    
    
    
    $
    
    
    
    $
    2,872Supplementary Cash Flow InformationInterest paid
    
    $
    102,049
    
    
    $
    106,126
    
    
    $
    51,247
 See Notes to Financial Statements 8




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The Detroit Edison Securitization Funding LLC
Statement of Members Equity Year Ended December 312003
    
    2002
    
    2001(in Thousands)Balance beginning of period
    
    $
    8,750
    
    
    $
    8,750
    
    
    $
    Add:Members contribution
    
    
    
    
    
    
    
    
    
    
    8,750Balance at end of period
    
    $
    8,750
    
    
    $
    8,750
    
    
    $
    8,750
 See Notes to Financial Statements 9




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THE DETROIT EDISON SECURITIZATION FUNDING LLC
NOTES TO FINANCIAL STATEMENTS NOTE 1  NATURE OF OPERATIONS The Detroit Edison Securitization Funding LLC (Company), a single member
limited liability company established by The Detroit Edison Company (Detroit
Edison) under the laws of the state of Michigan, was formed on November 20,
2000. The Company is a wholly owned subsidiary of Detroit Edison, an operating
electric public utility that is a wholly owned subsidiary of DTE Energy Company
(DTE Energy). The Company was organized for the sole purpose of purchasing and
owning securitization property, issuing securitization bonds, and performing
activities that are necessary to accomplish these purposes. The Company had no
financial operations until February 15, 2001. The Company is a special purpose entity established by Detroit Edison to
recover certain qualified costs, called Securitization Property by Michigan
statute. The qualified costs primarily represent Detroit Edisons unamortized
investment in the 1,150 Megawatt Fermi 2 nuclear power plant that was
classified as a regulatory asset by Detroit Edison. Securitization Property is
a property right authorized by Michigan state legislation and by a financing
order of the Michigan Public Service Commission (MPSC). The Michigan statute
provided, among other things, the irrevocable right of Detroit Edison, or its
successor or assignee, to impose, collect and receive a non-bypassable
securitization surcharge (SC) from customers pursuant to an order (Financing
Order), issued on November 2, 2000, and clarified on January 4, 2001, by the
MPSC in accordance with the June 2000 Customer Choice and Electricity
Reliability Act (Act). The Financing Order also includes the right to obtain
periodic adjustments of SC. The Financing Order authorizes the SC to be
sufficient to recover up to $1.774 billion aggregate principal amount of
securitization bonds (Bonds), plus an amount sufficient to fund any reserves
and to pay interest, servicing fees and other administrative expenses relating
to the Bonds. On March 9, 2001, the Company issued $1.75 billion of Bonds and used the net
proceeds to purchase the Securitization Property from Detroit Edison. The principal amount of the Bonds, interest, fees, and required
overcollateralization for the Bonds will be recovered through the SC payable by
electric customers taking delivery of electricity from Detroit Edison on its
MPSC approved rate schedules and special contracts. Detroit Edison, as Servicer, collects the SC from its customers and deposits
daily collections into various subaccounts held by The Bank of New York, as
trustee (Trustee). The Trustee is required to use these funds to make
principal and interest payments on the Bonds and to pay fees and expenses
specified in the Indenture for the Bonds. The Company has no employees. Under a Servicing Agreement, Detroit Edison is
required to manage and administer the Securitization Property. Detroit Edison
collects the SC on behalf of the Company. Detroit Edison receives an annual
servicing fee of 0.05% of the initial principal amount of the Bonds. The
Servicing Agreement also requires Detroit Edison to file requests with the MPSC
for annual adjustments to the SC. These adjustments are based on actual SC
collections and updated assumptions by Detroit Edison of estimated delivery of
electricity, expected delinquencies and write-offs, and future expenses
relating to the Securitization Property and the Bonds. 10




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NOTE 2  SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements are prepared using accounting principles
generally accepted in the United States of America. These accounting
principles require management to use estimates and assumptions that impact
reported amounts of assets, liabilities, revenues, expenses, and the disclosure
of contingent assets and liabilities. Actual results may differ from those
estimates. Regulation The Companys business 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. Continued
applicability of SFAS No. 71 requires that rates be designed to recover
specific costs of providing regulated services and be charged to and collected
from customers. The Company believes that currently available facts support
the continued application of SFAS No. 71 to its business. Cash and Cash Equivalents For purposes of the Statement of Cash Flows, the Company considers investments
purchased with a maturity of three months or less to be cash equivalents. Restricted Cash Restricted cash at December 31, 2003 includes $58.4 million in the General
Subaccount, $10.7 million in the Reserve Subaccount, $1.5 million in the
Overcollateralization Subaccount and $8.8 million in the Capital Subaccount.
The Trustee has established the following subaccounts for the Bonds: General Subaccountis comprised of daily SC collections and interest earned
from short-term investments. These amounts accumulate until the Trustee pays
principal, interest, service and administration fees, and other expenses. Reserve Subaccountconsists of funds remaining after required allocations on
the scheduled semi-annual payment dates. The Trustee may draw funds from this
subaccount if the general subaccount is insufficient to make scheduled
payments. Overcollateralization Subaccountaccumulates a mandatory reserve amount. This
account is funded over the life of the Bonds. The Trustee may draw from this
subaccount if the general subaccount and reserve subaccount are insufficient to
service required payments. Capital Subaccountwas initially funded by a contribution to the Company by
Detroit Edison on the date of issuance of the Bonds in an amount equal to 0.5%
of the initial principal amount of the Bonds. This subaccount will be released
at Bond retirement. The Trustee can draw funds from this subaccount if the
general subaccount, reserve subaccount and overcollateralization subaccount are
insufficient to service bond payments. If the Capital Subaccount is used, it
will be replenished from SC remittances. Unamortized Bond Issuance Costs The costs related to the issuance of the Bonds are amortized over the life of
the Bonds utilizing the effective interest method. 11




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Revenue On March 26, 2001, Detroit Edison, as Servicer, implemented a nonbypassable SC
of $0.0032 per kilowatthour (kWh), which has been subsequently modified.
Detroit Edison collects a surcharge from its customers for the benefit of the
Company and the Securitization Bondholders. Due to the time lag between
securitization charge (SC) billed to customers and amounts collected from those
customers, Detroit Edison began cash remittance to the trustee for SC
collections on May 14, 2001. Under a MPSC financing order, Detroit Edison will implement an annual
adjustment to the SC to provide sufficient funds for timely payments related to
the securitization bonds. The current SC rate is $.00336, effective March 1,
2003. The Company also accrues SC revenue for electric services provided by
Detroit Edison but unbilled at the end of each month. Amortization The Securitization Property was recorded at acquired cost and is being
amortized over the life of the Bonds, based on estimated SC revenues, interest
accruals and other expenses. The Act limits the Bond life to no greater than
15 years. Amortization expense consists of amortization of the Securitization
Property, overcollateralization fee, and over-recovery of SC. In accordance with SFAS No. 71, amortization is adjusted for over/under
recovery of SC resulting from differences between estimated and actual
electricity delivery and is shown as a securitization reserve on the statement
of financial position. Income Taxes The Company has elected to be treated as a division of Detroit Edison, and is
not a separate taxable entity. As a result, Detroit Edison is responsible for
the tax impacts of the Company. NOTE 3  LONG-TERM DEBT In March 2001, the Company issued $1.75 billion of Bonds at an average annual
interest rate of 6.3%. The Company used the proceeds from the Bonds to
purchase Securitization Property from Detroit Edison. The Securitization
Property of the Company has been assigned to the Trustee to collateralize the
Bonds. The Company retired $88,266,000 of Bonds during 2003. Details of the Bonds at December 31, 2003 are: Principal Balance
    
    Expected Final
    
    Final MaturityClass
    
    Bond Rate
    
    (in Thousands)
    
    Payment Date
    
    DateA-2
    
    5.51%
    
    $
    138,526
    
    
    3/1/05
    
    3/1/07A-3
    
    5.88%
    
    
    322,792
    
    
    3/1/08
    
    3/1/10A-4
    
    6.19%
    
    
    406,722
    
    
    3/1/11
    
    3/1/13A-5
    
    6.42%
    
    
    326,237
    
    
    3/1/13
    
    3/1/15A-6
    
    6.62%
    
    
    390,671
    
    
    3/1/15
    
    3/1/16Total
    
    
    
    
    1,584,948Less amount due
within one year
    
    
    88,727Long-Term Debt
    
    
    $
    1,496,221
 12




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In the years 2004  2008, long-term debt maturities are $88,726,715,
$96,348,877, $104,497,870, $110,793,727 and $120,071,713, respectively. NOTE 4  FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is determined by reference to various
market data and other valuation techniques. The estimated fair value of
long-term debt at December 31, 2003 and 2002 was $1,758,473,000 and
$1,861,849,000 compared to the carrying amount of $1,584,948,000 and
$1,673,214,000, respectively. NOTE 5  SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS Under the Servicing Agreement, Detroit Edison as Servicer is required to manage
and administer the Securitization Property of the Company and to collect the SC
on behalf of the Company. The Company pays an annual service fee of $875,000
and an annual administrative fee of $250,000 to Detroit Edison. At December 31, 2003, the Statement of Financial Position includes a receivable
from Detroit Edison of $22,023,445 for SC collections and also includes a
payable to Detroit Edison of $375,000 for servicing fees and administrative
expenses. NOTE 6  SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (Unaudited) First
    
    Second
    
    Third
    
    Fourth(in Thousands)
    
    Quarter
    
    Quarter
    
    Quarter
    
    Quarter
    
    Year2003Operating Revenue
    
    $
    44,680
    
    
    $
    40,401
    
    
    $
    46,965
    
    
    $
    41,330
    
    
    $
    173,376Operating Income
    
    
    25,744
    
    
    
    25,374
    
    
    
    25,205
    
    
    
    24,894
    
    
    
    101,217Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2002Operating Revenue
    
    $
    49,751
    
    
    $
    48,768
    
    
    $
    58,576
    
    
    $
    48,135
    
    
    $
    205,230Operating Income
    
    
    26,625
    
    
    
    26,374
    
    
    
    26,195
    
    
    
    25,953
    
    
    
    105,147Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 13




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##### Table of Contents



Item 9. Change in and Disagreements with Accountants on Accounting and
Financial Disclosure None. 
 Item 9A. Controls and
Procedures (a) Evaluation of disclosure controls and procedures The Companys Chief Executive Officer and Chief Financial Officer have
evaluated the effectiveness of the Companys disclosure controls and procedures
(as defined in Exchange Act Rules 13a  15(e) and 15d  15(e)) as of December
31, 2003, which is the end of the period covered by this report, and have
concluded that such controls and procedures are effectively designed to ensure
that required information disclosed by the Company in reports that it files or
submits under the Act is recorded, processed, summarized and reported within
the time periods specified in the Commissions rules and forms. 
 Part III 
 Item 10. Directors and Executive Officers of the Registrant 
 Item 11. Executive Compensation 
 Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Owner Matters 
 Item 13. Certain Relationships and Related Transactions All omitted per general instruction I (2) (c) of Form 10-K for wholly owned
subsidiaries (reduced disclosure format). 
 Item 14. Principal Accountant Fees and Services Not required. 14




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##### Table of Contents



Part IV 
 Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K (a) The following documents are filed as part of this Annual Report on Form
10-K.  (1)
    
    Financial statements. See Item 8  Financial Statements and
Supplementary Data.  (2)
    
    Schedules are omitted as not applicable or not required, or the
required information is shown in the financial statements or notes
thereto.  (3)
    
    Exhibits. Exhibit No.
    
    Description(i)
    
    Exhibits filed herewith12-3
    
    Computation of Ratio of Earnings to Fixed Charges.31-5
    
    Chief Executive Officer Section 302 Form 10-K Certification of Periodic Report.31-6
    
    Chief Financial Officer Section 302 Form 10-K Certification of Periodic Report.99-45
    
    Monthly Servicer Certificate dated November 13, 2003.99-46
    
    Monthly Servicer Certificate dated December 12, 2003.99-47
    
    Monthly Servicer Certificate dated January 14, 2004.(ii)
    
    Exhibits incorporated herein by reference4-1
    
    Limited Liability Company Agreement of The Detroit Edison Securitization Funding
LLC (Exhibit 4.1 to Registration No. 333-51066).4-2
    
    Articles of Organization of The Detroit Edison Securitization Funding LLC
(Exhibit 4.2 to Registration No. 333-51066).4-2-1
    
    Restated Articles of Organization of The Detroit Edison Securitization Funding
LLC (Exhibit 4.2.1 to Registration No. 333-51066).4-3
    
    Indenture (Exhibit 4.3 to Form 10-Q for quarter ended March 31, 2001).4-3-1
    
    Supplemental Indenture, including Form of Bonds (Exhibit 4.3.1 to Form 10-Q for
quarter ended March 31, 2001).10-1
    
    Sale Agreement (Exhibit 10.1 to Form 10-Q for quarter ended March 31, 2001).10-2
    
    Servicing Agreement (Exhibit 10.2 to Form 10-Q for quarter ended March 31, 2001).10-3
    
    Financing Order of the MPSC issued November 2, 2000 (Exhibit 10.3 to
Registration No. 333-51066).
 15




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##### Table of Contents



10-4
    
    Opinion and Order of the MPSC issued January 4, 2001 (Exhibit 10.4 to
Registration No. 333-51066).99-1
    
    Internal Revenue Service Private Letter Ruling pertaining to Bonds (Exhibit 99.1
to Registration No. 333-51066).99-2
    
    Administration Agreement (Exhibit 99.2 to Registration No. 333-51066).99-3
    
    Trade Receivables Purchase and Sale Agreement, dated as of February 28, 1989, an
Amendment and Restatement thereof, dated as of October 1, 1991, an Amendment and
Restatement thereof dated as of March 9, 2001 and an Amendment dated as of
January 17, 2003, and an Amendment dated as of May 28, 2003, among The Detroit
Edison Company, as seller, Corporate Asset Funding Company, Inc., Citibank,
N.A., and Citicorp North America, Inc. (Exhibit 99.40 to Form 10-Q for quarter
ended June 30, 2003).99-4
    
    Trade Receivables Purchase and Sale Agreement, dated as of February 28, 1989,
and an Amendment and Restatement thereof, dated as of October 1, 1991, and as
further amended by an Amendment dated as of February 28, 1994, an Amendment
dated as of February 1, 1999, an Amendment dated as of January 27, 2000 and an
Amendment dated as of January 25, 2001, and an Amendment dated as of March 9,
2001, and an Amendment dated as of May 28, 2003 among The Detroit Edison
Company, as seller, Citibank, N.A., and Citicorp North America, Inc. (Exhibit
99.39 to Form 10-Q for quarter ended June 30, 2003).99-5
    
    Intercreditor Agreement, among Citicorp North America, Inc., Citibank, N.A., the
trustee, the issuer, and The Detroit Edison Company (Exhibit 99.5 to Form 10-Q
for quarter ended March 31, 2001).99-6
    
    Securitization Bond Charges, filed with the MPSC on August 10, 2001 (Exhibit
99.10 to Form 10-Q for quarter ended June 30, 2001).99-7
    
    MPSC Order dated February 6, 2002 authorizing True-up Adjustment (Exhibit 99.16
to Form 10-K for year ended December 31, 2001).(iii)
    
    Exhibits furnished herewith.32-5
    
    Chief Executive Officer Section 906 Certification of Periodic Report32-6
    
    Chief Financial Officer Section 906 Certification of Periodic Report.
 (b) Reports on Form 8-K None. 16




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##### Table of Contents



SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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 SECURITIZATION FUNDING LLC
(Registrant)
 Date:    March 1, 2004
    
    By:
    
    /S/ DANIEL G. BRUDZYNSKI
Daniel G. Brudzynski
Chief Accounting Officer and Controller
 Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated. By
    
    /s/ DAVID E. MEADOR
David E. Meador, Manager
    
    By
    
    /s/  N. A. KHOURI
N. A. Khouri, ManagerBy
    
    /s/ DANIEL G. BRUDZYNSKI
Daniel G. Brudzynski
Chief Accounting Officer and ControllerDate:
    
    March 1, 2004
 17




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Exhibit No.
    
    Description(i)
    
    Exhibits filed herewith12-3
    
    Computation of Ratio of Earnings to Fixed Charges.31-5
    
    Chief Executive Officer Section 302 Form 10-K Certification of Periodic Report.31-6
    
    Chief Financial Officer Section 302 Form 10-K Certification of Periodic Report.32-5
    
    Chief Executive Officer Section 906 Certification of Periodic Report32-6
    
    Chief Financial Officer Section 906 Certification of Periodic Report.99-45
    
    Monthly Servicer Certificate dated November 13, 2003.99-46
    
    Monthly Servicer Certificate dated December 12, 2003.99-47
    
    Monthly Servicer Certificate dated January 14, 2004.