##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number 1-2198
 The Detroit Edison Company, a Michigan corporation, meets the conditions set forth in General
Instruction I (1) (a) and (b) of Form 10-Kand is, therefore, filing this form with the reduced
disclosure format.
 THE DETROIT EDISON COMPANY
  Michigan
    
    38-0478650(State or other jurisdiction of incorporation or
    
    (I.R.S. Employerorganization)
    
    Identification No.)One Energy Plaza, Detroit, Michigan
    
    48226-1279(Address of principal executive offices)
    
    (Zip Code)
 313-235-4000
 
 
 o þ
 o þ
 þ o
 o o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
  DOCUMENTS INCORPORATED BY REFERENCE




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##### 



The Detroit Edison Company  Annual Report on Form 10-K  Year Ended December 31, 2010
  Table of Contents
 PageDefinitions
    
    
    1Forward-Looking Statements
    
    
    3Part IItems 1. 1A., 1B. &2. Business, Risk Factors, Unresolved Staff Comments and Properties
    
    
    5Item 3. Legal Proceedings
    
    
    13Part IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    
    
    14Item 6. Selected Financial Data
    
    
    14Item 7. Managements Narrative Analysis of Results of Operations
    
    
    15Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    17Item 8. Financial Statements and Supplementary Data
    
    
    18Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    63Item 9A. Controls and Procedures
    
    
    63Item 9B. Other Information
    
    
    63Part IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    63Item 11. Executive Compensation
    
    
    63Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
    
    
    63Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    63Item 14. Principal Accountant Fees and Services
    
    
    63Part IVItem 15. Exhibits and Financial Statement Schedules
    
    
    64Signatures
    
    
    72EX-4.273EX-12.39EX-23.24EX-23.25EX-31.61EX-31.62EX-32.61EX-32.62




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Definitions
 ASC
    
    Accounting Standards CodificationASU
    
    Accounting Standards UpdateCIM
    
    A Choice Incentive Mechanism authorized by the MPSC that allows
Detroit Edison to recover or refund non-fuel revenues lost or
gained as a result of fluctuations in electric Customer Choice
sales.Customer Choice
    
    Michigan legislation giving customers the option to choose
alternative suppliers for electricity.Detroit Edison
    
    The Detroit Edison Company ( a direct wholly owned subsidiary of
DTE Energy) and subsidiary companiesDTE Energy
    
    DTE Energy Company, directly or indirectly the parent of Detroit
Edison, Michigan Consolidated Gas Company and numerous
non-utility subsidiariesEPA
    
    United States Environmental Protection AgencyFASB
    
    Financial Accounting Standards BoardFERC
    
    Federal Energy Regulatory CommissionFTRs
    
    Financial transmission rights are financial instruments
that entitle the holder to receive payments
related to costs incurred for congestion on the
transmission grid.HCERA
    
    Health Care and Education Reconciliation Act of 2010MISO
    
    Midwest Independent System Operator is an Independent
System Operator and the Regional Transmission
Organization serving the Midwest United States and
Manitoba, Canada.MDNRE
    
    Michigan Department of Natural Resources and EnvironmentMPSC
    
    Michigan Public Service CommissionNRC
    
    United States Nuclear Regulatory CommissionPPACA
    
    Patient Protection and Affordable Care Act of 2010PSCR
    
    A Power Supply Cost Recovery mechanism authorized by
the MPSC that allows Detroit Edison to recover
through rates its fuel, fuel-related and purchased
power costs.RDM
    
    A Revenue Decoupling Mechanism authorized by the MPSC that is
designed to minimize the impact on revenues of changes in
average customer usage of electricitySecuritization
    
    Detroit Edison financed specific stranded costs at
lower interest rates through the sale of rate
reduction bonds by a wholly-owned special purpose
entity, The Detroit Edison Securitization Funding LLC.VIE
    
    Variable Interest Entity
 1




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Units of MeasurementkWh
    
    Kilowatthour of electricityMW
    
    Megawatt of electricityMWh
    
    Megawatthour of electricity
 2




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Forward-Looking Statements
  
    
    economic conditions resulting in changes in demand, customer conservation and increased
thefts of electricity;
 
    
    changes in the economic and financial viability of our customers, suppliers, and trading
counterparties, and the continued ability of such parties to perform their obligations to the
Company;
 
    
    economic climate and population changes in the geographic areas where we do business;
 
    
    high levels of uncollectible accounts receivable;
 
    
    access to capital markets and capital market conditions and the results of other financing
efforts which can be affected by credit agency ratings;
 
    
    instability in capital markets which could impact availability of short and long-term
financing;
 
    
    the timing and extent of changes in interest rates;
 
    
    the level of borrowings;
 
    
    the potential for losses on investments, including nuclear decommissioning and benefit plan
assets and the related increases in future expense and contributions;
 
    
    the potential for increased costs or delays in completion of significant construction
projects;
 
    
    the effects of weather and other natural phenomena on operations and sales to customers, and
purchases from suppliers;
 
    
    environmental issues, laws, regulations, and the increasing costs of remediation and
compliance, including actual and potential new federal and state requirements that include or
could include carbon and more stringent emission controls, a renewable portfolio standard,
energy efficiency mandates, a carbon tax or cap and trade structure and ash landfill
regulations;
 
    
    nuclear regulations and operations associated with nuclear facilities;
 
    
    impact of electric utility restructuring in Michigan, including legislative amendments and
Customer Choice programs;
 
    
    employee relations and the impact of collective bargaining agreements;
 
    
    unplanned outages;
 
    
    changes in the cost and availability of coal and other raw materials and purchased power;
 
    
    cost reduction efforts and the maximization of plant and distribution system performance;
 
    
    the effects of competition;
 
    
    impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and
regulations, including any associated impact on rate structures;
 
    
    changes in and application of federal, state and local tax laws and their interpretations,
including the Internal Revenue Code, regulations, rulings, court proceedings and audits;
 
    
    the amount and timing of cost recovery allowed as a result of regulatory proceedings, related
appeals or new legislation;
 
    
    the cost of protecting assets against, or damage due to, terrorism or cyber attacks;
 3




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
    
    the availability, cost, coverage and terms of insurance and stability of insurance providers;
 
    
    changes in and application of accounting standards and financial reporting regulations;
 
    
    changes in federal or state laws and their interpretation with respect to regulation, energy
policy and other business issues; and
 
    
    binding arbitration, litigation and related appeals.
  4




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Part I
 
 Items 1. and 2. Business and Properties
 General
     Revenue by Service
 (in Millions)
    
    2010
    
    
    2009
    
    
    2008Residential
    
    $
    2,052
    
    
    $
    1,820
    
    
    $
    1,726Commercial
    
    
    1,629
    
    
    
    1,702
    
    
    
    1,753Industrial
    
    
    688
    
    
    
    730
    
    
    
    894Other
    
    
    479
    
    
    
    299
    
    
    
    289Subtotal
    
    
    4,848
    
    
    
    4,551
    
    
    
    4,662Interconnection sales(1)
    
    
    145
    
    
    
    163
    
    
    
    212Total Revenue
    
    $
    4,993
    
    
    $
    4,714
    
    
    $
    4,874
 
 (1)
    
    Represents power that is not distributed by Detroit Edison.  Fuel Supply and Purchased Power
   5




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Properties
   Summer NetLocation by
    
    RatedMichigan
    
    Capability(1)Plant Name
    
    County
    
    (MW)
    
    (%)
    
    Year in ServiceFossil-fueled Steam-ElectricBelle River(2)
    
    St. Clair
    
    
    1,044
    
    
    
    9.5
    
    
    1984 and 1985Conners Creek
    
    Wayne
    
    
    239
    
    
    
    2.1
    
    
    1951Greenwood
    
    St. Clair
    
    
    785
    
    
    
    7.1
    
    
    1979Harbor Beach
    
    Huron
    
    
    94
    
    
    
    0.9
    
    
    1968Marysville
    
    St. Clair
    
    
    84
    
    
    
    0.8
    
    
    1943 and 1947Monroe(3)
    
    Monroe
    
    
    3,027
    
    
    
    27.6
    
    
    1971, 1973 and 1974River Rouge
    
    Wayne
    
    
    523
    
    
    
    4.8
    
    
    1957 and 1958St. Clair(4)
    
    St. Clair
    
    
    1,368
    
    
    
    12.5
    
    
    1953, 1954, 1959, 1961 and 1969Trenton Channel
    
    Wayne
    
    
    698
    
    
    
    6.4
    
    
    1949 and 19687,862
    
    
    
    71.7Oil or Gas-fueled Peaking Units
    
    Various
    
    
    1,101
    
    
    
    10.0
    
    
    1966-1971, 1981 and 1999Nuclear-fueled Steam-Electric Fermi 2(5)
    
    Monroe
    
    
    1,087
    
    
    
    9.9
    
    
    1988Hydroelectric Pumped Storage Ludington(6)
    
    Mason
    
    
    917
    
    
    
    8.4
    
    
    197310,967
    
    
    
    100.0
 
 (1)
    
    Summer net rated capabilities of generating plants in service are based on periodic load
tests and are changed depending on operating experience, the physical condition of units,
environmental control limitations and customer requirements for steam, which otherwise would
be used for electric generation.(2)
    
    The Belle River capability represents Detroit Edisons entitlement to 81% of the capacity and
energy of the plant. See Note 7 of the Notes to the Consolidated Financial Statements in Item
8 of this Report.(3)
    
    The Monroe power plant provided 38% of Detroit Edisons total 2010 power generation.(4)
    
    Excludes one oil-fueled unit (250 MW) in cold standby status.(5)
    
    Fermi 2 has a design electrical rating (net) of 1,150 MW.(6)
    
    Represents Detroit Edisons 49% interest in Ludington with a total capability of 1,872 MW.
See Note 7 of the Notes to the Consolidated Financial Statements in Item 8 of this Report.   Circuit MilesOperating Voltage-Kilovolts (kV)
    
    Overhead
    
    
    
    Underground4.8 kV to 13.2 kV
    
    
    28,345
    
    
    
    13,91624 kV
    
    
    181
    
    
    
    69640 kV
    
    
    2,278
    
    
    
    381120 kV
    
    
    54
    
    
    
    1330,858
    
    
    
    15,006
 6




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Regulation
   Energy Assistance Programs
  Strategy and Competition
    7




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ENVIRONMENTAL MATTERS
  (in Millions)Air
    
    $
    2,100Water
    
    
    55MGP sites
    
    
    4Other sites
    
    
    21Estimated total future expenditures through 2020
    
    $
    2,180Estimated 2011 expenditures
    
    $
    239Estimated 2012 expenditures
    
    $
    276
 Air 
    Water
 8




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Manufactured Gas Plant (MGP) and Other Sites 
 Landfill
  Global Climate Change
 th
  9




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EMPLOYEES
  Item 1A. Risk Factors
  Regional and national economic conditions can have an unfavorable impact on us.
 We are exposed to credit risk of counterparties with whom we do business.
 We are subject to rate regulation
 We may be required to refund amounts we collect under self-implemented rates.
 Michigans electric Customer Choice program could negatively impact our financial performance.
 10




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Environmental laws and liability may be costly.
  Adverse changes in our credit ratings may negatively affect us.
 Our ability to access capital markets is important.
 Poor investment performance of pension and other postretirement benefit plan holdings and other
factors impacting benefit plan costs could unfavorably impact our liquidity and results of
operations.
 11




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Weather significantly affects operations
 Operation of a nuclear facility subjects us to risk.
 Construction and capital improvements to our power facilities subject us to risk.
 The supply and/or price of energy commodities and/or related services may impact our financial
results.
 The supply and/or price of other industrial raw and finished inputs and/or related services may
impact our financial results.
 Unplanned power plant outages may be costly.
 Renewable portfolio standards and energy efficiency programs may affect our business.
  Threats of terrorism or cyber attacks could affect our business.
 12




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We may not be fully covered by insurance.
 Failure to maintain the security of personally identifiable information could adversely affect us.
 A work interruption may adversely affect us.
 Failure to retain and attract key executive officers and other skilled professional and technical
employees could have an adverse effect on our operations.
 Item 1B. Unresolved Staff Comments
  
 Item 3. Legal Proceedings
   13




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Part II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
   
 Item 6. Selected Financial Data
  14




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Item 7. Managements Narrative Analysis of Results of Operations
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Operating Revenues
    
    $
    4,993
    
    
    $
    4,714
    
    
    $
    4,874Fuel and Purchased Power
    
    
    1,580
    
    
    
    1,491
    
    
    
    1,778Gross Margin
    
    
    3,413
    
    
    
    3,223
    
    
    
    3,096Operation and Maintenance
    
    
    1,305
    
    
    
    1,277
    
    
    
    1,322Depreciation and Amortization
    
    
    849
    
    
    
    844
    
    
    
    743Taxes Other Than Income
    
    
    237
    
    
    
    205
    
    
    
    232Asset (Gains) Losses, Reserves and Impairments, Net
    
    
    (6
    )
    
    
    (2
    )
    
    
    (1
    )Operating Income
    
    
    1,028
    
    
    
    899
    
    
    
    800Other (Income) and Deductions
    
    
    317
    
    
    
    295
    
    
    
    283Income Tax Provision
    
    
    270
    
    
    
    228
    
    
    
    186Net Income
    
    $
    441
    
    
    $
    376
    
    
    $
    331
 Gross margin
 (in Millions)
    
    2010
    
    
    2009Weather, net of RDM
    
    $
    84
    
    
    $
    (66
    )Energy optimization and renewable surcharge/regulatory offset
    
    
    (10
    )
    
    
    54Securitization bond and tax surcharge rate increase
    
    
    40
    
    
    
    622010 rate order, surcharges and other
    
    
    76
    
    
    
    77Increase in gross margin
    
    $
    190
    
    
    $
    127
 (in Thousands of MWh)
    
    2010
    
    
    2009
    
    
    2008Electric SalesResidential
    
    
    15,726
    
    
    
    14,625
    
    
    
    15,492Commercial
    
    
    16,570
    
    
    
    18,200
    
    
    
    18,920Industrial
    
    
    10,195
    
    
    
    9,922
    
    
    
    13,086Other
    
    
    3,210
    
    
    
    3,229
    
    
    
    3,21845,701
    
    
    
    45,976
    
    
    
    50,716Interconnection sales (1)
    
    
    4,876
    
    
    
    5,156
    
    
    
    3,583Total Electric Sales
    
    
    50,577
    
    
    
    51,132
    
    
    
    54,299Electric DeliveriesRetail and Wholesale
    
    
    45,701
    
    
    
    45,976
    
    
    
    50,716Electric Customer Choice, including self generators (2)
    
    
    5,005
    
    
    
    1,477
    
    
    
    1,457Total Electric Sales and Deliveries
    
    
    50,706
    
    
    
    47,453
    
    
    
    52,173
 
 (1)
    
    Represents power that is not distributed by Detroit Edison(2)
    
    Includes deliveries for self generators who have purchased power from alternative energy
suppliers to supplement their power requirements 15




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(in Thousands of MWh)
    
    2010
    
    
    2009
    
    
    2008Power Generated and PurchasedPower Plant GenerationFossil
    
    
    39,433
    
    
    
    73
    %
    
    
    40,595
    
    
    
    74
    %
    
    
    41,254
    
    
    
    71
    %Nuclear
    
    
    7,738
    
    
    
    14
    
    
    
    7,406
    
    
    
    14
    
    
    
    9,613
    
    
    
    1747,171
    
    
    
    87
    
    
    
    48,001
    
    
    
    88
    
    
    
    50,867
    
    
    
    88Purchased Power
    
    
    6,638
    
    
    
    13
    
    
    
    6,495
    
    
    
    12
    
    
    
    6,877
    
    
    
    12System Output
    
    
    53,809
    
    
    
    100
    %
    
    
    54,496
    
    
    
    100
    %
    
    
    57,744
    
    
    
    100
    %Less Line Loss and Internal Use
    
    
    (3,232
    )
    
    
    
    
    
    
    (3,364
    )
    
    
    
    
    
    
    (3,445
    )Net System Output
    
    
    50,577
    
    
    
    
    
    
    
    51,132
    
    
    
    
    
    
    
    54,299Average Unit Cost ($/MWh)Generation (1)
    
    $
    18.94
    
    
    
    
    
    
    $
    18.20
    
    
    
    
    
    
    $
    17.93Purchased Power
    
    $
    42.38
    
    
    
    
    
    
    $
    37.74
    
    
    
    
    
    
    $
    69.50Overall Average Unit Cost
    
    $
    21.83
    
    
    
    
    
    
    $
    20.53
    
    
    
    
    
    
    $
    24.07
 
 (1)
    
    Represents fuel costs associated with power plants. Operation and maintenance
 Depreciation and amortization
 Taxes other than income
 Outlook
 16




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Item 7A. Quantitative and Qualitative Disclosures about Market Risk
 Commodity Price Risk
  Credit Risk
 Bankruptcies
  Other
   Interest Rate Risk
  17




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Item 8. Financial Statements and Supplementary Data
 PageControls and Procedures
    
    
    19Consolidated Financial StatementsReports of Independent Registered Public Accounting Firms
    
    
    20Consolidated Statements of Operations
    
    
    22Consolidated Statements of Cash Flows
    
    
    23Consolidated Statements of Financial Position
    
    
    24Consolidated Statements of Changes in Shareholders Equity and Comprehensive Income
    
    
    26Notes to Consolidated Financial Statements
    
    
    27Financial Statement ScheduleSchedule II  Valuation and Qualifying Accounts
    
    
    71
 18




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Controls and Procedures
 (a) Evaluation of disclosure controls and procedures
  (b) Managements report on internal control over financial reporting
   Internal ControlIntegrated Framework.
  (c) Changes in internal control over financial reporting
  19




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   
 20




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     
 21




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The Detroit Edison Company
 
 Consolidated Statements of Operations
 Year Ended December 31(in Millions)
    
    2010
    
    
    2009
    
    
    2008Operating Revenues
    
    $
    4,993
    
    
    $
    4,714
    
    
    $
    4,874Operating ExpensesFuel and purchased power
    
    
    1,580
    
    
    
    1,491
    
    
    
    1,778Operation and maintenance
    
    
    1,305
    
    
    
    1,277
    
    
    
    1,322Depreciation and amortization
    
    
    849
    
    
    
    844
    
    
    
    743Taxes other than income
    
    
    237
    
    
    
    205
    
    
    
    232Asset (gains) losses and reserves, net
    
    
    (6
    )
    
    
    (2
    )
    
    
    (1
    )3,965
    
    
    
    3,815
    
    
    
    4,074Operating Income
    
    
    1,028
    
    
    
    899
    
    
    
    800Other (Income) and DeductionsInterest expense
    
    
    313
    
    
    
    325
    
    
    
    293Interest income
    
    
    (1
    )
    
    
    (2
    )
    
    
    (6
    )Other income
    
    
    (39
    )
    
    
    (39
    )
    
    
    (51
    )Other expenses
    
    
    44
    
    
    
    11
    
    
    
    47317
    
    
    
    295
    
    
    
    283Income Before Income Taxes
    
    
    711
    
    
    
    604
    
    
    
    517Income Tax Provision
    
    
    270
    
    
    
    228
    
    
    
    186Net Income
    
    $
    441
    
    
    $
    376
    
    
    $
    331
  22




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The Detroit Edison Company
 
 Consolidated Statements of Cash Flows
 Year Ended December 31(in Millions)
    
    2010
    
    
    2009
    
    
    2008Operating ActivitiesNet income
    
    $
    441
    
    
    $
    376
    
    
    $
    331Adjustments to reconcile net income to net cash from operating activities:Depreciation and amortization
    
    
    849
    
    
    
    844
    
    
    
    743Deferred income taxes
    
    
    322
    
    
    
    15
    
    
    
    91Asset (gains) losses and reserves, net
    
    
    (6
    )
    
    
    (2
    )
    
    
    (2
    )Changes in assets and liabilities, exclusive of changes shown separately
(Note 18)
    
    
    (253
    )
    
    
    (39
    )
    
    
    118Net cash from operating activities
    
    
    1,353
    
    
    
    1,194
    
    
    
    1,281Investing ActivitiesPlant and equipment expenditures
    
    
    (864
    )
    
    
    (793
    )
    
    
    (943
    )Restricted cash
    
    
    (25
    )
    
    
    5
    
    
    
    50Notes receivable from affiliate
    
    
    (21
    )
    
    
    (42
    )
    
    
    (41
    )Proceeds from sale of nuclear decommissioning trust fund assets
    
    
    377
    
    
    
    295
    
    
    
    232Investment in nuclear decommissioning trust funds
    
    
    (410
    )
    
    
    (315
    )
    
    
    (255
    )Other investments
    
    
    (60
    )
    
    
    (46
    )
    
    
    (54
    )Net cash used for investing activities
    
    
    (1,003
    )
    
    
    (896
    )
    
    
    (1,011
    )Financing ActivitiesIssuance of long-term debt
    
    
    614
    
    
    
    129
    
    
    
    862Redemption of long-term debt
    
    
    (652
    )
    
    
    (278
    )
    
    
    (166
    )Repurchase of long-term debt
    
    
    
    
    
    
    
    
    
    
    (238
    )Short-term borrowings, net
    
    
    
    
    
    
    (75
    )
    
    
    (331
    )Short-term borrowings from affiliate
    
    
    
    
    
    
    
    
    
    
    (277
    )Capital contribution by parent company
    
    
    
    
    
    
    250
    
    
    
    175Dividends on common stock
    
    
    (305
    )
    
    
    (305
    )
    
    
    (305
    )Other
    
    
    (11
    )
    
    
    (15
    )
    
    
    (7
    )Net cash used for financing activities
    
    
    (354
    )
    
    
    (294
    )
    
    
    (287
    )Net Increase (Decrease) in Cash and Cash Equivalents
    
    
    (4
    )
    
    
    4
    
    
    
    (17
    )Cash and Cash Equivalents at Beginning of the Period
    
    
    34
    
    
    
    30
    
    
    
    47Cash and Cash Equivalents at End of the Period
    
    $
    30
    
    
    $
    34
    
    
    $
    30
  23




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##### Table of Contents



The Detroit Edison Company
 
 Consolidated Statements of Financial Position
 December 31(in Millions)
    
    2010
    
    
    2009ASSETSCurrent AssetsCash and cash equivalents
    
    $
    30
    
    
    $
    34Restricted cash (Note 2)
    
    
    104
    
    
    
    79Accounts receivable (less allowance for
doubtful accounts of $93 and $118,
respectively)Customer
    
    
    690
    
    
    
    696Affiliates
    
    
    8
    
    
    
    3Other
    
    
    204
    
    
    
    108InventoriesFuel
    
    
    224
    
    
    
    135Materials and supplies
    
    
    170
    
    
    
    173Notes receivableAffiliates
    
    
    97
    
    
    
    65Other
    
    
    
    
    
    
    3Other
    
    
    109
    
    
    
    791,636
    
    
    
    1,375InvestmentsNuclear decommissioning trust funds
    
    
    939
    
    
    
    817Other
    
    
    118
    
    
    
    1041,057
    
    
    
    921PropertyProperty, plant and equipment
    
    
    16,068
    
    
    
    15,451Less accumulated depreciation and amortization
    
    
    (6,418
    )
    
    
    (6,133
    )9,650
    
    
    
    9,318Other AssetsRegulatory assets
    
    
    3,277
    
    
    
    3,333Securitized regulatory assets
    
    
    729
    
    
    
    870Intangible assets
    
    
    25
    
    
    
    9Notes receivable  affiliates
    
    
    6
    
    
    
    17Other
    
    
    142
    
    
    
    1184,179
    
    
    
    4,347Total Assets
    
    $
    16,522
    
    
    $
    15,961
  24




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##### Table of Contents



The Detroit Edison Company
 Consolidated Statements of Financial Position
 December 31(in Millions, Except Shares)
    
    2010
    
    
    2009LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesAccounts payableAffiliates
    
    $
    50
    
    
    $
    74Other
    
    
    349
    
    
    
    251Accrued interest
    
    
    81
    
    
    
    83Current portion long-term debt, including capital leases
    
    
    308
    
    
    
    660Regulatory liabilities
    
    
    60
    
    
    
    27Other
    
    
    279
    
    
    
    2341,127
    
    
    
    1,329Long-Term Debt (net of current portion)Mortgage bonds, notes and other
    
    
    4,046
    
    
    
    3,579Securitization bonds
    
    
    643
    
    
    
    793Capital lease obligations
    
    
    20
    
    
    
    254,709
    
    
    
    4,397Other LiabilitiesDeferred income taxes
    
    
    2,235
    
    
    
    1,871Regulatory liabilities
    
    
    714
    
    
    
    711Asset retirement obligations
    
    
    1,354
    
    
    
    1,285Unamortized investment tax credit
    
    
    67
    
    
    
    75Nuclear decommissioning
    
    
    149
    
    
    
    136Accrued pension liability affiliates
    
    
    960
    
    
    
    987Accrued postretirement liability affiliates
    
    
    1,060
    
    
    
    1,058Other
    
    
    138
    
    
    
    2396,677
    
    
    
    6,362Commitments and Contingencies (Notes 10 and 16)Shareholders EquityCommon stock, $10 par value, 400,000,000 shares
authorized, and 138,632,324 shares issued and
outstanding
    
    
    3,196
    
    
    
    3,196Retained earnings
    
    
    829
    
    
    
    693Accumulated other comprehensive income (loss)
    
    
    (16
    )
    
    
    (16
    )4,009
    
    
    
    3,873Total Liabilities and Shareholders Equity
    
    $
    16,522
    
    
    $
    15,961
  25




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##### Table of Contents



The Detroit Edison Company
 
 Consolidated Statements of Changes in Shareholders Equity and Comprehensive income
 AccumulatedAdditional
    
    
    
    
    
    OtherCommon Stock
    
    Paid in
    
    Retained
    
    Comprehensive(Dollars in Millions, Shares in Thousands)
    
    Shares
    
    Amount
    
    Capital
    
    Earnings
    
    Income (Loss)
    
    TotalBalance, December 31, 2007
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,385
    
    
    $
    528
    
    
    $
    4
    
    
    $
    3,303Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    331
    
    
    
    
    
    
    
    331Implementation of ASC 715 (SFAS No. 158)
measurement date provision, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9
    )
    
    
    
    
    
    
    (9
    )Dividends declared on common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (228
    )
    
    
    
    
    
    
    (228
    )Net change in unrealized gains on
investments,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Benefit obligations, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14
    )
    
    
    (14
    )Capital contribution by parent company
    
    
    
    
    
    
    
    
    
    
    175
    
    
    
    
    
    
    
    
    
    
    
    175Balance, December 31, 2008
    
    
    138,632
    
    
    
    1,386
    
    
    
    1,560
    
    
    
    622
    
    
    
    (12
    )
    
    
    3,556Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    376
    
    
    
    
    
    
    
    376Dividends declared on common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (305
    )
    
    
    
    
    
    
    (305
    )Net change in unrealized gains on
investments,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Benefit obligations, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Capital contribution by parent company
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250Balance, December 31, 2009
    
    
    138,632
    
    
    
    1,386
    
    
    
    1,810
    
    
    
    693
    
    
    
    (16
    )
    
    
    3,873Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    441
    
    
    
    
    
    
    
    441Dividends declared on common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (305
    )
    
    
    
    
    
    
    (305
    )Balance, December 31, 2010
    
    
    138,632
    
    
    $
    1,386
    
    
    $
    1,810
    
    
    $
    829
    
    
    $
    (16
    )
    
    $
    4,009
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Net income
    
    $
    441
    
    
    $
    376
    
    
    $
    331Other comprehensive income:Net change in unrealized gain (losses) on
investments, net of tax of $, $(1) and $(1)
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Benefit obligations, net of tax of $, $(1) and $(7)
    
    
    
    
    
    
    (2
    )
    
    
    (14
    )Comprehensive income
    
    $
    441
    
    
    $
    372
    
    
    $
    315
  26




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##### Table of Contents



The Detroit Edison Company
 
 Notes to Consolidated Financial Statements
 NOTE 1  BASIS OF PRESENTATION
 Corporate Structure
   Basis of Presentation
   Principles of Consolidation Variable Interest Entity (VIE)
  Amendments to FASB
Interpretation 46(R)
    27




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##### Table of Contents



December 31,(in Millions)
    
    2010ASSETSRestricted cash
    
    $
    104Accounts receivable
    
    
    42Securitized regulatory assets
    
    
    729Other assets
    
    
    13$
    888LIABILITIESAccounts payable and accrued current liabilities
    
    $
    17Other current liabilities
    
    
    62Current portion long-term debt, including capital leases
    
    
    150Securitization bonds
    
    
    643Other long term liabilities
    
    
    6$
    878
  NOTE 2  SIGNIFICANT ACCOUNTING POLICIES
 Revenues
    Accounting for ISO Transactions
  28




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##### Table of Contents



Comprehensive Income
  AccumulatedOtherBenefit
    
    
    
    
    
    
    Comprehensive(in Millions)
    
    Obligations
    
    
    Other
    
    
    LossBeginning balances
    
    $
    (16
    )
    
    $
    
    
    
    $
    (16
    )Current period change
    
    
    
    
    
    
    
    
    
    
    Ending balance
    
    $
    (16
    )
    
    $
    
    
    
    $
    (16
    )
 Cash Equivalents and Restricted Cash
  Receivables
    Notes Receivable
   29




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##### Table of Contents



Inventories
  Property, Retirement and Maintenance, and Depreciation, Depletion and Amortization
      Long-Lived Assets
  Intangible Assets
  Excise and Sales Taxes
  Deferred Debt Costs
  Investments in Debt and Equity Securities
  30




---



##### Table of Contents



Stock-Based Compensation
  Government Grants
  Other Accounting Policies
  Note
    
    
    Title3
    
    
    New Accounting Pronouncements4
    
    
    Fair Value5
    
    
    Financial and Other Derivative Instruments10
    
    
    Regulatory Matters11
    
    
    Income Taxes17
    
    
    Retirement Benefits and Trusteed Assets
 NOTE 3  NEW ACCOUNTING PRONOUNCEMENTS
 Variable Interest Entity
 Amendments to FASB Interpretation 46(R). Consolidation
 Fair Value Measurements and Disclosures
 Improving Disclosures about Fair Value Measurements
 NOTE 4  FAIR VALUE
  31




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##### Table of Contents




    
    Level 1  Consists of unadjusted quoted prices in active markets for identical assets or
liabilities that the Company has the ability to access as of the reporting date.
    
    Level 2  Consists of inputs other than quoted prices included within Level 1 that are
directly observable for the asset or liability or indirectly observable through corroboration
with observable market data.
    
    Level 3  Consists of unobservable inputs for assets or liabilities whose fair value is
estimated based on internally developed models or methodologies using inputs that are
generally less readily observable and supported by little, if any, market activity at the
measurement date. Unobservable inputs are developed based on the best available information
and subject to cost-benefit constraints.
  Net Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2010Assets:Nuclear decommissioning trusts
    
    $
    599
    
    
    $
    340
    
    
    $
    
    
    
    $
    939Other investments
    
    
    52
    
    
    
    55
    
    
    
    
    
    
    
    107Derivative assets  FTRs
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2Total
    
    $
    651
    
    
    $
    395
    
    
    $
    2
    
    
    $
    1,048Liabilities:Derivative liabilities  Emissions
    
    
    
    
    
    
    (3
    )
    
    
    
    
    
    
    (3
    )Total
    
    $
    
    
    
    $
    (3
    )
    
    $
    
    
    
    $
    (3
    )Net Assets at December 31, 2010
    
    $
    651
    
    
    $
    392
    
    
    $
    2
    
    
    $
    1,045
 Net Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2010Assets:Current
    
    $
    
    
    
    $
    
    
    
    $
    2
    
    
    $
    2Noncurrent(1)
    
    
    651
    
    
    
    395
    
    
    
    
    
    
    
    1,046Total Assets
    
    $
    651
    
    
    $
    395
    
    
    $
    2
    
    
    $
    1,048Liabilities:Current
    
    $
    
    
    
    $
    (3
    )
    
    $
    
    
    
    $
    (3
    )Noncurrent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Liabilities
    
    $
    
    
    
    $
    (3
    )
    
    $
    
    
    
    $
    (3
    )Net Assets at December 31, 2010
    
    $
    651
    
    
    $
    392
    
    
    $
    2
    
    
    $
    1,045
 32




---



##### Table of Contents



Net Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2009Assets:Cash equivalents
    
    $
    15
    
    
    $
    
    
    
    $
    
    
    
    $
    15Nuclear decommissioning trusts
    
    
    549
    
    
    
    268
    
    
    
    
    
    
    
    817Other investments
    
    
    40
    
    
    
    57
    
    
    
    
    
    
    
    97Derivative assets
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2Total
    
    $
    604
    
    
    $
    325
    
    
    $
    2
    
    
    $
    931Liabilities:Derivative liabilities
    
    
    
    
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )Total
    
    $
    
    
    
    $
    (8
    )
    
    $
    
    
    
    $
    (8
    )Net Assets at December 31, 2009
    
    $
    604
    
    
    $
    317
    
    
    $
    2
    
    
    $
    923
 
 (1)
    
    Includes $107 million of other investments that are included in the Consolidated
Statements of Financial Position in Other Investments at December 31, 2010.  Year EndedDecember 31(in Millions)
    
    2010
    
    
    2009Asset balance as of January 1
    
    $
    2
    
    
    
    4Change in fair value recorded in regulatory assets/liabilities
    
    
    6
    
    
    
    Purchases, issuances and settlements
    
    
    (6
    )
    
    
    Transfers in/out of Level 3
    
    
    
    
    
    
    (2
    )Asset balance as of December 31
    
    $
    2
    
    
    $
    2The amount of total gains (losses) included in regulatory
assets and liabilities attributed to the change in unrealized
gains (losses) related to regulatory assets and liabilities
held at December 31, 2010 and 2009
    
    $
    2
    
    
    $
    2
  Cash Equivalents
  Nuclear Decommissioning Trusts and Other Investments
  33




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##### Table of Contents



Derivative Assets and Liabilities
  Fair Value of Financial Instruments
  December 31, 2010
    
    December 31, 2009Fair Value
    
    Carrying Value
    
    Fair Value
    
    Carrying ValueLong-Term Debt
    
    $5.3 billion
    
    $5.0 billion
    
    $5.2 billion
    
    $5.0 billion
 Nuclear Decommissioning Trust Funds
   34




---



##### Table of Contents



December 31
    
    
    December 31(in Millions)
    
    2010
    
    
    2009Fermi 2
    
    $
    910
    
    
    $
    790Fermi 1
    
    
    3
    
    
    
    3Low level radioactive waste
    
    
    26
    
    
    
    24Total
    
    $
    939
    
    
    $
    817
   Year EndedDecember 31(in Millions)
    
    2010
    
    
    2009
    
    
    2008Realized gains
    
    $
    192
    
    
    $
    37
    
    
    $
    34Realized losses
    
    $
    (83
    )
    
    $
    (55
    )
    
    $
    (49
    )Proceeds from sales of securities
    
    $
    377
    
    
    $
    295
    
    
    $
    232
  Fair
    
    
    Unrealized(in Millions)
    
    Value
    
    
    GainsAs of December 31, 2010Equity securities
    
    $
    572
    
    
    $
    77Debt securities
    
    
    361
    
    
    
    11Cash and cash equivalents
    
    
    6
    
    
    
    $
    939
    
    
    $
    88As of December 31, 2009Equity securities
    
    $
    420
    
    
    $
    135Debt securities
    
    
    388
    
    
    
    17Cash and cash equivalents
    
    
    9
    
    
    
    $
    817
    
    
    $
    152
   35




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##### Table of Contents



Other Available-For-Sale Securities
  December 31, 2010
    
    December 31, 2009(in Millions)
    
    Fair Value
    
    Carrying value
    
    Fair Value
    
    Carrying ValueCash equivalents
    
    $
    125
    
    
    $
    125
    
    
    $
    105
    
    
    $
    105Equity securities
    
    
    4
    
    
    
    4
    
    
    
    4
    
    
    
    4
  NOTE 5  FINANCIAL AND OTHER DERIVATIVE INSTRUMENTS
    Year EndedDecember 31(in Millions)
    
    2010
    
    
    2009FTRs  Other current assets
    
    $
    2
    
    
    $
    2Emissions  Other current liabilities
    
    
    (3
    )
    
    
    (5
    )Emissions  Other non-current liabilities
    
    
    
    
    
    
    (3
    )Total derivatives not designated as hedging instrument
    
    $
    (1
    )
    
    $
    (6
    )
  36




---



##### Table of Contents



Commodity
    
    Number of UnitsEmissions (Tons)
    
    
    1,750FTRs (MW)
    
    
    53,753
 NOTE 6  PROPERTY, PLANT AND EQUIPMENT
  (in Millions)
    
    2010
    
    
    2009Property, Plant and EquipmentGeneration
    
    $
    9,268
    
    
    $
    8,833Distribution
    
    
    6,800
    
    
    
    6,618Total
    
    
    16,068
    
    
    
    15,451Less Accumulated Depreciation and AmortizationGeneration
    
    
    (3,850
    )
    
    
    (3,890
    )Distribution
    
    
    (2,568
    )
    
    
    (2,243
    )Total
    
    
    (6,418
    )
    
    
    (6,133
    )Net Property, Plant and Equipment
    
    $
    9,650
    
    
    $
    9,318
       NOTE 7  JOINTLY OWNED UTILITY PLANT
  37




---



##### Table of Contents



LudingtonHydroelectricBelle River
    
    Pumped StorageIn-service date
    
    
    1984-1985
    
    
    
    1973Total plant capacity
    
    1,270
    MW
    
    1,872
    MWOwnership interest
    
    
    
    *
    
    
    49
    %Investment (in millions)
    
    $
    1,635
    
    
    $
    199Accumulated depreciation (in millions)
    
    $
    923
    
    
    $
    117
 
 *
    
    Detroit Edisons ownership interest is 63% in Unit No. 1, 81% of the
facilities applicable to Belle River used jointly by the Belle River
and St. Clair Power Plants and 75% in common facilities used at Unit
No. 2. Belle River
  Ludington Hydroelectric Pumped Storage
  NOTE 8  ASSET RETIREMENT OBLIGATIONS
     (in Millions)Asset retirement obligations at January 1, 2010
    
    $
    1,300Accretion
    
    
    84Liabilities incurred
    
    
    10Liabilities settled
    
    
    (6
    )Revision in estimated cash flows
    
    
    (22
    )Asset retirement obligations at December 31, 2010
    
    
    1,366Less amount included in current liabilities
    
    
    (12
    )$
    1,354
  38




---



##### Table of Contents



NOTE 9  RESTRUCTURING
 Performance Excellence Process
  NOTE 10  REGULATORY MATTERS
 Regulation
  39




---



##### Table of Contents



Regulatory Assets and Liabilities
   (in Millions)
    
    2010
    
    
    2009AssetsRecoverable pension and postretirement costs:Pension
    
    $
    1,329
    
    
    $
    1,261Postretirement costs
    
    
    472
    
    
    
    515Asset retirement obligation
    
    
    336
    
    
    
    415Recoverable income taxes related to securitized regulatory assets
    
    
    400
    
    
    
    476Deferred income taxes  Michigan Business Tax
    
    
    319
    
    
    
    343Costs to achieve Performance Excellence Process
    
    
    118
    
    
    
    136Choice incentive mechanism
    
    
    105
    
    
    
    Other recoverable income taxes
    
    
    85
    
    
    
    89Unamortized loss on reacquired debt
    
    
    35
    
    
    
    38Accrued PSCR revenue
    
    
    52
    
    
    
    Enterprise Business Systems costs
    
    
    21
    
    
    
    24Recoverable restoration expense
    
    
    19
    
    
    
    Electric Customer Choice implementation costs
    
    
    
    
    
    
    18Other
    
    
    44
    
    
    
    183,335
    
    
    
    3,333Less amount included in current assets
    
    
    (58
    )
    
    
    $
    3,277
    
    
    $
    3,333Securitized regulatory assets
    
    $
    729
    
    
    $
    870LiabilitiesAsset removal costs
    
    $
    132
    
    
    $
    157Deferred income taxes  Michigan Business Tax
    
    
    362
    
    
    
    367Renewable energy
    
    
    125
    
    
    
    32Refundable self implemented rates
    
    
    27
    
    
    
    27Refundable revenue decoupling
    
    
    47
    
    
    
    Refundable costs under PA 141
    
    
    33
    
    
    
    27Refundable restoration expense
    
    
    15
    
    
    
    15Accrued PSCR refund
    
    
    
    
    
    
    14Fermi 2 refueling outage
    
    
    3
    
    
    
    13Pension equalization mechanism
    
    
    
    
    
    
    75Other
    
    
    30
    
    
    
    11774
    
    
    
    738Less amount included in current liabilities
    
    
    (60
    )
    
    
    (27
    )$
    714
    
    
    $
    711
  40




---



##### Table of Contents



ASSETS
 
    
    Recoverable pension and postretirement costs In 2007, the Company adopted ASC 715 (SFAS
No. 158) which required, among other things, the recognition in other comprehensive income of
the actuarial gains or losses and the prior service costs that arise during the period but
that are not immediately recognized as components of net periodic benefit costs. The Company
records the charge related to the additional liability as a regulatory asset since the
traditional rate setting process allows for the recovery of pension and postretirement costs.
The asset will reverse as the deferred items are recognized as benefit expenses in net income.
(1)
    
    Asset retirement obligation This obligation is primarily for Fermi 2 decommissioning
costs. The asset captures the timing differences between expense recognition and current
recovery in rates and will reverse over the remaining life of the related plant. (1)
    
    Recoverable income taxes related to securitized regulatory assets Receivable for the
recovery of income taxes to be paid on the non-bypassable securitization bond surcharge. A
non-bypassable securitization tax surcharge recovers the income tax over a fourteen-year
period ending 2015.
    
    Deferred income taxes  Michigan Business Tax (MBT) In July 2007, the MBT was enacted by
the State of Michigan. State deferred tax liabilities were established for the Companys
utilities, and offsetting regulatory assets were recorded as the impacts of the deferred tax
liabilities will be reflected in rates as the related taxable temporary differences reverse
and flow through current income tax expense. (1)
    
    Cost to achieve Performance Excellence Process (PEP) The MPSC authorized the deferral of
costs to implement the PEP. These costs consist of employee severance, project management and
consultant support. These costs will be amortized over a ten-year period beginning with the
year subsequent to the year the costs were deferred.
    
    Choice incentive mechanism Receivable for non-fuel revenues lost as a result of
fluctuations in electric Customer Choice sales.
    
    Other recoverable income taxes Income taxes receivable from Detroit Edisons customers
representing the difference in property-related deferred income taxes and amounts previously
reflected in Detroit Edisons rates. This asset will reverse over the remaining life of the
related plant. (1)
    
    Unamortized loss on reacquired debt The unamortized discount, premium and expense related
to debt redeemed with a refinancing are deferred, amortized and recovered over the life of the
replacement issue.
    
    Accrued PSCR revenue Receivable for the temporary under-recovery of and a return on fuel
and purchased power costs incurred by Detroit Edison which are recoverable through the PSCR
mechanism.
    
    Enterprise Business Systems (EBS) costs The MPSC approved the deferral and amortization
over 10 years beginning in January 2009 of EBS costs that would otherwise be expensed.
    
    Recoverable restoration expense Receivable for the MPSC approved restoration expenses
tracking mechanism that tracks the difference between actual restoration expense and the
amount provided for in base rates, recognized pursuant to MPSC authorization.
    
    Electric Customer Choice implementation costs PA 141 permits, after MPSC authorization,
the recovery of and a return on costs incurred associated with the implementation of the
electric Customer Choice program.
    
    Securitized regulatory assets The net book balance of the Fermi 2 nuclear plant was
written off in 1998 and an equivalent regulatory asset was established. In 2001, the Fermi 2
regulatory asset and certain other regulatory assets were securitized pursuant to PA 142 and
an MPSC order. A non-bypassable securitization bond surcharge recovers the securitized
regulatory asset over a fourteen-year period ending in 2015.
 
 (1)
    
    Regulatory assets not earning a return. 41




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##### Table of Contents



LIABILITIES
 
    
    Asset removal costs The amount collected from customers for the funding of future asset
removal activities.
    
    Deferred income taxes  Michigan Business Tax In July 2007, the MBT was enacted by the
State of Michigan. State deferred tax assets were established for the Companys utilities, and
offsetting regulatory liabilities were recorded as the impacts of the deferred tax assets will
be reflected in rates.
    
    Renewable energy Amounts collected in rates in excess of renewable energy expenditures.
    
    Refundable self implemented rates Amounts refundable to customers for base rates
implemented in excess of amounts provided for in January 2010 Detroit Edison MPSC order.
    
    Refundable revenue decoupling Amounts refundable to Detroit Edison customers for the
change in revenue resulting from the difference between actual average sales per customer
compared to the base level of average sales per customer established by the MPSC.
    
    Refundable costs under PA 141 Detroit Edisons 2007 CIM reconciliation and allocation
resulted in the elimination of Regulatory Asset Recovery Surcharge (RARS) balances for
commercial and industrial customers. RARS revenues received that exceed the regulatory asset
balances are required to be refunded to the affected classes.
    
    Refundable restoration expense Amounts refundable for the MPSC approved restoration
expenses tracking mechanism that tracks the difference between actual restoration expense and
the amount provided for in base rates, recognized pursuant to the MPSC authorization.
    
    Accrued PSCR refund Liability for the temporary over-recovery of and a return on power
supply costs and transmission costs incurred by Detroit Edison which are recoverable through
the PSCR mechanism.
    
    Fermi 2 refueling outage Accrued liability for refueling outage at Fermi 2 pursuant to
MPSC authorization.
    
    Pension equalization mechanism Pension expense refundable to customers representing the
difference created from volatility in the pension obligation and amounts recognized pursuant
to MPSC authorization.
 2010 Electric Rate Case Filing
  2009 Electric Rate Case Filing
   42




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##### Table of Contents



2009 Detroit Edison Depreciation Filing
  Renewable Energy Plan
  Energy Optimization (EO) Plans
  Detroit Edison Restoration Expense Tracker Mechanism (RETM) and Line Clearance Tracker (LCT) Reconciliation
  Detroit Edison Uncollectible Expense True-Up Mechanism (UETM)
  43




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##### Table of Contents



Detroit Edison Regulatory Asset Recovery Surcharge (RARS) Reconciliation
  Power Supply Cost Recovery Proceedings
   Net Over-recovery,
    
    PSCR Cost ofPSCR Year
    
    Date Filed
    
    including interest
    
    Power Sold2009
    
    March 2010
    
    $15.6 million
    
    $1.1 billion
 2010 Plan Year
 2011 Plan Year
 Other
  NOTE 11  INCOME TAXES
 Income Tax Summary
  44




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##### Table of Contents



(Dollars in Millions)
    
    2010
    
    
    2009
    
    
    2008Income tax expense at 35% statutory rate
    
    $
    249
    
    
    $
    211
    
    
    $
    181Investment tax credits
    
    
    (6
    )
    
    
    (6
    )
    
    
    (6
    )Depreciation
    
    
    3
    
    
    
    3
    
    
    
    3Employee Stock Ownership Plan dividends
    
    
    (3
    )
    
    
    (4
    )
    
    
    (2
    )Medicare Part D subsidy
    
    
    
    
    
    
    (5
    )
    
    
    (4
    )Domestic production activities deduction
    
    
    (6
    )
    
    
    (5
    )
    
    
    (2
    )State and other income taxes, net of federal benefit
    
    
    40
    
    
    
    36
    
    
    
    19Other, net
    
    
    (7
    )
    
    
    (2
    )
    
    
    (3
    )Total
    
    $
    270
    
    
    $
    228
    
    
    $
    186Effective income tax rate
    
    
    38.0
    %
    
    
    37.7
    %
    
    
    36.0
    %
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Current income taxes Federal
    
    $
    (89
    )
    
    $
    168
    
    
    $
    66State and other income tax expense
    
    
    37
    
    
    
    45
    
    
    
    30Total current income taxes
    
    
    (52
    )
    
    
    213
    
    
    
    96Deferred income taxes Federal
    
    
    297
    
    
    
    4
    
    
    
    91State and other income tax expense
    
    
    25
    
    
    
    11
    
    
    
    (1
    )Total deferred income taxes
    
    
    322
    
    
    
    15
    
    
    
    90Total
    
    $
    270
    
    
    $
    228
    
    
    $
    186
   (in Millions)
    
    2010
    
    
    2009Property, plant and equipment
    
    $
    (1,819
    )
    
    $
    (1,409
    )Securitized regulatory assets
    
    
    (396
    )
    
    
    (474
    )Pension and benefits
    
    
    57
    
    
    
    103Other comprehensive income
    
    
    10
    
    
    
    9Other, net
    
    
    (112
    )
    
    
    (76
    )$
    (2,260
    )
    
    $
    (1,847
    )
 (in Millions)
    
    2010
    
    
    2009Deferred income tax liabilities
    
    $
    (3,175
    )
    
    $
    (2,832
    )Deferred income tax assets
    
    
    915
    
    
    
    985$
    (2,260
    )
    
    $
    (1,847
    )Current deferred income tax asset (included in Current Assets  Other)
    
    $
    
    
    
    $
    24Current deferred income tax liability (included in Current Liabilities  Other)
    
    
    (25
    )
    
    
    Long -term deferred income tax liabilities
    
    
    (2,235
    )
    
    
    (1,871
    )$
    (2,260
    )
    
    $
    (1,847
    )
  45




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Uncertain Tax Positions
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Balance at January 1
    
    $
    96
    
    
    $
    70
    
    
    $
    7Additions for tax positions of current years
    
    
    6
    
    
    
    10
    
    
    
    72Additions for tax positions of prior years
    
    
    1
    
    
    
    24
    
    
    
    (9
    )Reductions for tax positions of prior years
    
    
    
    
    
    
    (8
    )
    
    
    Settlements
    
    
    (85
    )
    
    
    
    
    
    
    Balance at December 31
    
    $
    18
    
    
    $
    96
    
    
    $
    70
    Michigan Business Tax
   NOTE 12  LONG-TERM DEBT
  (in Millions)
    
    2010
    
    
    2009Taxable Debt, Principally Secured5.5% due 2011 to 2038
    
    $
    2,915
    
    
    $
    2,829Tax- Exempt Revenue Bonds (2)5.5% due 2011 to 2038
    
    
    1,283
    
    
    
    1,2634,198
    
    
    
    4,092Less amount due within one year
    
    
    (152
    )
    
    
    (513
    )$
    4,046
    
    
    $
    3,579
 46




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##### Table of Contents



(in Millions)
    
    2010
    
    
    2009Securitization Bonds6.5% due 2010 to 2015
    
    $
    793
    
    
    $
    933Less amount due within one year
    
    
    (150
    )
    
    
    (140
    )$
    643
    
    
    $
    793
 
 (1)
    
    Weighted average interest rates as of December 31, 2010 are shown below the description of
each category of debt.(2)
    
    Tax-Exempt Revenue Bonds are issued by a public body that loans the proceeds to Detroit
Edison on terms substantially mirroring the Revenue Bonds. Debt Issuances
   Month Issued
    
    Type
    
    
    Interest Rate
    
    
    Maturity
    
    AmountAugust
    
    Senior Notes(1)
    
    
    3.45
    %
    
    
    2020
    
    
    $
    300September
    
    Senior Notes(1)(2)
    
    
    4.89
    %
    
    
    2020
    
    
    
    300December
    
    Tax-Exempt Revenue Bonds(3)
    
    
    5.00
    %
    
    
    2030
    
    
    
    20$
    620
 
 (1)
    
    Proceeds were used to repay a portion of Detroit Edisons $500 million 6.125% Senior Notes
due October 1, 2010 and for general corporate purposes.(2)
    
    These bonds were priced in March 2010 in a private placement transaction which was closed and
funded in September 2010.(3)
    
    Proceeds were used to finance the acquisition and construction of improvements to certain
electrical generating facilities and pollution control equipment at Detroit Edisons Monroe Power Plant. Debt Retirements and Redemptions
   Month Retired
    
    Type
    
    
    Interest Rate
    
    
    Maturity
    
    
    AmountSeptember
    
    Senior Notes(1)
    
    
    6.125
    %
    
    
    2010
    
    
    $
    500
 
 (1)
    
    These Senior Notes, maturing October 1, 2010, were optionally redeemed on September 30,
2010.  2016 &(in Millions)
    
    2011
    
    2012
    
    2013
    
    2014
    
    2015
    
    thereafter
    
    TotalAmount to mature
    
    $
    302
    
    
    $
    467
    
    
    $
    440
    
    
    $
    470
    
    
    $
    315
    
    
    $
    3,003
    
    
    $
    4,997
 Default Provisions
  47




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##### Table of Contents



NOTE 13  PREFERRED AND PREFERENCE SECURITIES
  NOTE 14  SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
   NOTE 15  CAPITAL AND OPERATING LEASES
 Lessee
  Capital
    
    
    Operating(in Millions)
    
    Leases
    
    
    Leases2011
    
    $
    7
    
    
    $
    252012
    
    
    5
    
    
    
    232013
    
    
    5
    
    
    
    192014
    
    
    5
    
    
    
    152015
    
    
    5
    
    
    
    13Thereafter
    
    
    3
    
    
    
    64Total minimum lease payments
    
    
    30
    
    
    $
    159Less imputed interest
    
    
    4Present value of net minimum lease payments
    
    
    26Less current portion
    
    
    6Non-current portion
    
    $
    20
  NOTE 16  COMMITMENTS AND CONTINGENCIES
 Environmental
 Air
 48




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##### Table of Contents



Water
 Manufactured Gas Plant (MGP) and Other Sites 
 Landfill
  49




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##### Table of Contents



Nuclear Operations
 Property Insurance
      Public Liability Insurance
  Nuclear Fuel Disposal Costs
  50




---



##### Table of Contents



Guarantees
   Labor Contracts
  Purchase Commitments
  (in Millions)2011
    
    $
    6332012
    
    
    4412013
    
    
    2222014
    
    
    1942015
    
    
    1362016 - 2026
    
    
    976$
    2,602
  Bankruptcies
  Other Contingencies
   51




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##### Table of Contents



NOTE 17  RETIREMENT BENEFITS AND TRUSTEED ASSETS
 Measurement Date
  Pension Plan Benefits
    (in Millions)
    
    2010
    
    
    2009
    
    
    2008Service cost
    
    $
    52
    
    
    $
    43
    
    
    $
    45Interest cost
    
    
    153
    
    
    
    158
    
    
    
    148Expected return on plan assets
    
    
    (171
    )
    
    
    (165
    )
    
    
    (163
    )Amortization of:Net actuarial loss
    
    
    70
    
    
    
    38
    
    
    
    27Prior service cost
    
    
    5
    
    
    
    7
    
    
    
    5Net pension cost
    
    $
    109
    
    
    $
    81
    
    
    $
    62
 (in Millions)
    
    2010
    
    
    2009Other changes in plan assets and benefit obligations
recognized in other comprehensive income and regulatory assetsNet actuarial loss
    
    $
    145
    
    
    $
    177Amortization of net actuarial loss
    
    
    (70
    )
    
    
    (38
    )Amortization of prior service cost
    
    
    (5
    )
    
    
    (7
    )Total recognized in other comprehensive income and regulatory assets
    
    $
    70
    
    
    $
    132Total recognized in net periodic pension cost,
other comprehensive income and regulatory assets
    
    $
    178
    
    
    $
    213Estimated amounts to be amortized from
accumulated other comprehensive income and
regulatory assets into net periodic benefit cost
during next fiscal yearNet actuarial loss
    
    $
    93
    
    
    $
    70Prior service cost
    
    
    4
    
    
    
    5
 52




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##### Table of Contents



(in Millions)
    
    2010
    
    
    2009Accumulated benefit obligation, end of year
    
    $
    2,697
    
    
    $
    2,490Change in projected benefit obligationProjected benefit obligation, beginning of year
    
    $
    2,677
    
    
    $
    2,368Service cost
    
    
    52
    
    
    
    43Interest cost
    
    
    153
    
    
    
    158Actuarial loss
    
    
    180
    
    
    
    264Benefits paid
    
    
    (163
    )
    
    
    (156
    )Projected benefit obligation, end of year
    
    $
    2,899
    
    
    $
    2,677Change in plan assetsPlan assets at fair value, beginning of year
    
    $
    1,687
    
    
    $
    1,387Actual return on plan assets
    
    
    207
    
    
    
    252Company contributions
    
    
    205
    
    
    
    204Benefits paid
    
    
    (163
    )
    
    
    (156
    )Plan assets at fair value, end of year
    
    $
    1,936
    
    
    $
    1,687Funded status of the plan
    
    $
    (963
    )
    
    $
    (990
    )Amount recorded as:Current liabilities
    
    $
    (3
    )
    
    $
    (3
    )Noncurrent liabilities
    
    
    (960
    )
    
    
    (987
    )$
    (963
    )
    
    $
    (990
    )Amounts recognized in regulatory assets (see Note 10)Net actuarial loss
    
    $
    1,314
    
    
    $
    1,241Prior service cost
    
    
    15
    
    
    
    20$
    1,329
    
    
    $
    1,261
  2010
    
    2009
    
    2008Projected benefit obligationDiscount rate
    
    
    5.50
    %
    
    
    5.90
    %
    
    
    6.90
    %Rate of compensation increase
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    4.00
    %Net pension costsDiscount rate
    
    
    5.90
    %
    
    
    6.90
    %
    
    
    6.50
    %Rate of compensation increase
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    4.00
    %Expected long-term rate of return on plan assets
    
    
    8.75
    %
    
    
    8.75
    %
    
    
    8.75
    %
  53




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(in Millions)2011
    
    $
    1652012
    
    
    1722013
    
    
    1792014
    
    
    1832015
    
    
    1892016 - 2020
    
    
    1,045Total
    
    $
    1,933
   U.S. Large Cap Equity Securities
    
    
    22
    %U.S. Small Cap and Mid Cap Equity Securities
    
    
    5Non U.S. Equity Securities
    
    
    20Fixed Income Securities
    
    
    25Hedge Funds and Similar Investments
    
    
    20Private Equity and Other
    
    
    8100
    %
 Fair
Value Measurements at December 31, 2010(a)
 Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2010Asset Category:Short-term investments (b)
    
    $
    
    
    
    $
    23
    
    
    $
    
    
    
    $
    23Equity securitiesU.S. Large Cap(c)
    
    
    461
    
    
    
    26
    
    
    
    
    
    
    
    487U.S. Small/Mid Cap(d)
    
    
    123
    
    
    
    5
    
    
    
    
    
    
    
    128Non U.S(e)
    
    
    194
    
    
    
    151
    
    
    
    
    
    
    
    345Fixed income securities(f)
    
    
    42
    
    
    
    409
    
    
    
    
    
    
    
    451Other types of investmentsHedge Funds and Similar Investments(g)
    
    
    128
    
    
    
    50
    
    
    
    206
    
    
    
    384Private Equity and Other(h)
    
    
    
    
    
    
    
    
    
    
    118
    
    
    
    118Total
    
    $
    948
    
    
    $
    664
    
    
    $
    324
    
    
    $
    1,936
 54




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##### Table of Contents



Fair
Value Measurements at December 31, 2009(a)
 Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2009Asset Category:Short-term investments (b)
    
    $
    
    
    
    $
    42
    
    
    $
    
    
    
    $
    42Equity securitiesU.S. Large Cap(c)
    
    
    436
    
    
    
    20
    
    
    
    
    
    
    
    456U.S. Small/Mid Cap(d)
    
    
    101
    
    
    
    2
    
    
    
    
    
    
    
    103Non U.S(e)
    
    
    153
    
    
    
    79
    
    
    
    
    
    
    
    232Fixed income securities(f)
    
    
    31
    
    
    
    397
    
    
    
    
    
    
    
    428Other types of investmentsHedge Funds and Similar Investments(g)
    
    
    
    
    
    
    
    
    
    
    320
    
    
    
    320Private Equity and Other(h)
    
    
    
    
    
    
    
    
    
    
    106
    
    
    
    106Total
    
    $
    721
    
    
    $
    540
    
    
    $
    426
    
    
    $
    1,687
 
 (a)
    
    See Note 4  Fair Value for a description of levels within the fair value hierarchy.(b)
    
    This category predominantly represents certain short-term fixed income securities and money
market investments that are managed in separate accounts or commingled funds. Pricing for
investments in this category are obtained from quoted prices in actively traded markets or
valuations from brokers or pricing services.(c)
    
    This category comprises both actively and not actively managed portfolios that track the S&P
500 low cost equity index funds. Investments in this category are exchange-traded securities
whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a
commingled fund are classified as Level 2 assets.(d)
    
    This category represents portfolios of small and medium capitalization domestic equities.
Investments in this category are exchange-traded securities whereby unadjusted quote prices
can be obtained. Exchange-traded securities held in a commingled fund are classified as Level
2 assets.(e)
    
    This category primarily consists of portfolios of non-U.S. developed and emerging market
equities. Investments in this category are exchange-traded securities whereby unadjusted quote
prices can be obtained. Exchange-traded securities held in a commingled fund are classified as
Level 2 assets.(f)
    
    This category includes corporate bonds from diversified industries, U.S. Treasuries, and
mortgage backed securities. Pricing for investments in this category is obtained from quoted
prices in actively traded markets and quotations from broker or pricing services. Non-exchange
traded securities and exchange-traded securities held in commingled funds are classified as
Level 2 assets.(g)
    
    This category includes a diversified group of funds and strategies that attempt to capture
financial market inefficiencies. In 2009, pricing for investments in this category was based
on limited observable inputs as there was little, if any, publicly available pricing.
Valuations for assets in this category may be based on relevant publicly-traded securities,
derivatives, and privately-traded securities. In 2010, pricing for investments in this
category included quoted prices in active markets and quotations from broker or pricing
services. Non-exchanged traded securities held in commingled funds are classified as Level 2
assets.(h)
    
    This category includes a diversified group of funds and strategies that primarily invests in
private equity partnerships. Pricing for investments in this category is based on limited
observable inputs as there is little, if any, publicly available pricing. Valuations for
assets in this category may be based on discounted cash flow analyses, relative
publicly-traded comparables and comparable transactions.  55




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Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
 Hedge Fundsand Similar
    
    
    Private Equity(in Millions)
    
    Investments
    
    
    and Other
    
    
    TotalBeginning Balance at January 1, 2010
    
    $
    320
    
    
    $
    106
    
    
    $
    426Total realized/unrealized gains (losses)
    
    
    34
    
    
    
    16
    
    
    
    50Purchases, sales and settlements
    
    
    (148
    )
    
    
    (4
    )
    
    
    (152
    )Ending Balance at December 31, 2010
    
    $
    206
    
    
    $
    118
    
    
    $
    324The amount of total gains (losses) for
the period attributable to the change in
unrealized gains or losses related to
assets still held at the end of the
period
    
    $
    20
    
    
    $
    9
    
    
    $
    29
 Hedge Fundsand Similar
    
    
    Private Equity(in Millions)
    
    Investments
    
    
    and Other
    
    
    TotalBeginning Balance at January 1, 2009
    
    $
    310
    
    
    $
    105
    
    
    $
    415Total realized/unrealized gains (losses)
    
    
    20
    
    
    
    (7
    )
    
    
    13Purchases, sales and settlements
    
    
    (10
    )
    
    
    8
    
    
    
    (2
    )Ending Balance at December 31, 2009
    
    $
    320
    
    
    $
    106
    
    
    $
    426The amount of total gains (losses) for
the period attributable to the change in
unrealized gains or losses related to
assets still held at the end of the
period
    
    $
    23
    
    
    $
    (7
    )
    
    $
    16
  Other Postretirement Benefits
    (in Millions)
    
    2010
    
    
    2009
    
    
    2008Service cost
    
    $
    47
    
    
    $
    45
    
    
    $
    48Interest cost
    
    
    95
    
    
    
    102
    
    
    
    94Expected return on plan assets
    
    
    (52
    )
    
    
    (42
    )
    
    
    (58
    )Amortization of:Net loss
    
    
    38
    
    
    
    53
    
    
    
    27Prior service costs
    
    
    2
    
    
    
    2
    
    
    
    2Net transition obligation
    
    
    2
    
    
    
    2
    
    
    
    2Net postretirement cost
    
    $
    132
    
    
    $
    162
    
    
    $
    115
 56




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##### Table of Contents



(in Millions)
    
    2010
    
    
    2009Other changes in plan assets and APBO recognized in regulatory assetsNet actuarial loss (gain)
    
    $
    62
    
    
    $
    (38
    )Amortization of net actuarial loss
    
    
    (38
    )
    
    
    (52
    )Prior service cost (credit)
    
    
    (63
    )
    
    
    Amortization of prior service credit
    
    
    (2
    )
    
    
    (2
    )Amortization of transition (asset)
    
    
    (2
    )
    
    
    (2
    )Total recognized in regulatory assets
    
    $
    (43
    )
    
    $
    (94
    )Total recognized in net periodic pension cost and regulatory assets
    
    $
    89
    
    
    $
    68
 Estimated amounts to be amortized from regulatory assets into net periodic benefit cost during next fiscal year
 2010
    
    2009Net actuarial loss
    
    $
    42
    
    
    $
    38Prior service cost (credit)
    
    
    (16
    )
    
    
    2Net transition obligation
    
    
    2
    
    
    
    2
  (in Millions)
    
    2010
    
    
    2009Change in accumulated post retirement benefit obligationAccumulated postretirement benefit obligation, beginning of year
    
    $
    1,650
    
    
    $
    1,553Service cost
    
    
    47
    
    
    
    45Interest cost
    
    
    95
    
    
    
    102Plan amendments
    
    
    (62
    )
    
    
    Actuarial loss
    
    
    86
    
    
    
    21Medicare Part D subsidy
    
    
    5
    
    
    
    4Benefits paid
    
    
    (79
    )
    
    
    (75
    )Accumulated postretirement benefit obligation, end of year
    
    $
    1,742
    
    
    $
    1,650Change in plan assetsPlan assets at fair value, beginning of year
    
    $
    593
    
    
    $
    478Actual return on plan assets
    
    
    76
    
    
    
    99Company contributions
    
    
    90
    
    
    
    90Benefits paid
    
    
    (77
    )
    
    
    (75
    )Plan assets at fair value, end of year
    
    $
    682
    
    
    $
    592Funded status, end of year
    
    $
    (1,060
    )
    
    $
    (1,058
    )Amount recorded as:Non-current liabilities
    
    $
    (1,060
    )
    
    $
    (1,058
    )Amounts recognized in regulatory assets (see Note 10)Net actuarial loss
    
    $
    534
    
    
    $
    510Prior service cost
    
    
    (66
    )
    
    
    (2
    )Net transition obligation
    
    
    4
    
    
    
    7$
    472
    
    
    $
    515
 57




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##### Table of Contents



2010
    
    
    2009
    
    
    2008Projected Benefit ObligationDiscount rate
    
    
    5.50
    %
    
    
    5.90
    %
    
    
    6.90
    %Net Benefit CostsDiscount rate
    
    
    5.90
    %
    
    
    6.90
    %
    
    
    6.50
    %Expected long-term rate of return on Plan assets
    
    
    8.75
    %
    
    
    8.75
    %
    
    
    8.75
    %Health care trend rate pre-65
    
    
    7.00
    %
    
    
    7.00
    %
    
    
    7.00
    %Health care trend rate post-65
    
    
    7.00
    %
    
    
    7.00
    %
    
    
    6.00
    %Ultimate health care trend rate
    
    
    5.00
    %
    
    
    5.00
    %
    
    
    5.00
    %Year in which ultimate reached
    
    
    2016
    
    
    
    2016
    
    
    
    2011
   (in Millions)2011
    
    $
    812012
    
    
    852013
    
    
    1022014
    
    
    1072015
    
    
    1132016-2020
    
    
    658$
    1,146
   U.S. Equity Securities
    
    
    25
    %Non U.S. Equity Securities
    
    
    20Fixed Income Securities
    
    
    25Hedge Funds and Similar Investments
    
    
    20Private Equity and Other
    
    
    10100
    %
 Fair
Value Measurements at December 31, 2010(a)
 Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2010Asset Category:Short-term investments(b)
    
    $
    
    
    
    $
    5
    
    
    $
    
    
    
    $
    5Equity securitiesU.S. Large Cap(c)
    
    
    83
    
    
    
    41
    
    
    
    
    
    
    
    124U.S. Small/Mid Cap(d)
    
    
    40
    
    
    
    39
    
    
    
    
    
    
    
    79Non U.S(e)
    
    
    52
    
    
    
    81
    
    
    
    
    
    
    
    133Fixed income securities(f)
    
    
    3
    
    
    
    167
    
    
    
    
    
    
    
    170Other types of investmentsHedge Funds and Similar Investments(g)
    
    
    51
    
    
    
    32
    
    
    
    52
    
    
    
    135Private Equity and Other(h)
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    36Total
    
    $
    229
    
    
    $
    365
    
    
    $
    88
    
    
    $
    682
 58




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##### Table of Contents



Fair
Value Measurements at December 31, 2009(a)
 Balance at(in Millions)
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    December 31, 2009Asset Category:Short-term investments(b)
    
    $
    
    
    
    $
    12
    
    
    $
    
    
    
    $
    12Equity securitiesU.S. Large Cap(c)
    
    
    102
    
    
    
    55
    
    
    
    
    
    
    
    157U.S. Small/Mid Cap(d)
    
    
    32
    
    
    
    34
    
    
    
    
    
    
    
    66Non U.S(e)
    
    
    50
    
    
    
    47
    
    
    
    
    
    
    
    97Fixed income securities(f)
    
    
    5
    
    
    
    160
    
    
    
    
    
    
    
    165Other types of investmentsHedge Funds and Similar Investments(g)
    
    
    
    
    
    
    
    
    
    
    63
    
    
    
    63Private Equity and Other(h)
    
    
    
    
    
    
    
    
    
    
    32
    
    
    
    32Total
    
    $
    189
    
    
    $
    308
    
    
    $
    95
    
    
    $
    592
 
 (a)
    
    See Note 4  Fair Value for a description of levels within the fair value hierarchy.(b)
    
    This category predominantly represents certain short-term fixed income securities and money
market investments that are managed in separate accounts or commingled funds. Pricing for
investments in this category are obtained from quoted prices in actively traded markets or
valuations from brokers or pricing services.(c)
    
    This category comprises both actively and not actively managed portfolios that track the S&P
500 low cost equity index funds. Investments in this category are exchange-traded securities
whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a
commingled fund are classified as Level 2 assets.(d)
    
    This category represents portfolios of small and medium capitalization domestic equities.
Investments in this category are exchange-traded securities whereby unadjusted quote prices
can be obtained. Exchange-traded securities held in a commingled fund are classified as Level
2 assets.(e)
    
    This category primarily consists of portfolios of non-U.S. developed and emerging market
equities. Investments in this category are exchange-traded securities whereby unadjusted quote
prices can be obtained. Exchange-traded securities held in a commingled fund are classified as
Level 2 assets.(f)
    
    This category includes corporate bonds from diversified industries, U.S. Treasuries, and
mortgage backed securities. Pricing for investments in this category is obtained from quoted
prices in actively traded markets and quotations from broker or pricing services. Non-exchange
traded securities and exchange-traded securities held in commingled funds are classified as
Level 2 assets.(g)
    
    This category includes a diversified group of funds and strategies that attempt to capture
financial market inefficiencies. In 2009, pricing for investments in this category was based
on limited observable inputs as there was little, if any, publicly available pricing.
Valuations for assets in this category may be based on relevant publicly-traded securities,
derivatives, and privately-traded securities. In 2010, pricing for investments in this
category included quoted prices in active markets and quotations from broker or pricing
services. Non-exchanged traded securities held in commingled funds are classified as Level 2
assets.(h)
    
    This category includes a diversified group of funds and strategies that primarily invests in
private equity partnerships. Pricing for investments in this category is based on limited
observable inputs as there is little, if any, publicly available pricing. Valuations for
assets in this category may be based on discounted cash flow analyses, relative
publicly-traded comparables and comparable transactions.  59




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##### Table of Contents



Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
 HedgeFunds Similar
    
    
    Private Equity and(in Millions)
    
    Investments
    
    
    Other
    
    
    TotalBeginning Balance at January 1, 2010
    
    $
    63
    
    
    $
    32
    
    
    $
    95Total realized/unrealized gains (losses)
    
    
    7
    
    
    
    6
    
    
    
    13Purchases, sales and settlements
    
    
    (18
    )
    
    
    (2
    )
    
    
    (20
    )Ending Balance at December 31, 2010
    
    $
    52
    
    
    $
    36
    
    
    $
    88The amount of total gains (losses) for
the period attributable to the change in
unrealized gains or losses related to
assets still held at the end of the
period
    
    $
    4
    
    
    $
    5
    
    
    $
    9
 HedgeFunds Similar
    
    
    Private Equity and(in Millions)
    
    Investments
    
    
    Other
    
    
    TotalBeginning Balance at January 1, 2009
    
    $
    52
    
    
    $
    26
    
    
    $
    78Total realized/unrealized gains (losses)
    
    
    4
    
    
    
    3
    
    
    
    7Purchases, sales and settlements
    
    
    7
    
    
    
    3
    
    
    
    10Ending Balance at December 31, 2009
    
    $
    63
    
    
    $
    32
    
    
    $
    95The amount of total gains (losses) for
the period attributable to the change in
unrealized gains or losses related to
assets still held at the end of the
period
    
    $
    4
    
    
    $
    2
    
    
    $
    6
 Healthcare Legislation
     60




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##### Table of Contents



NOTE 18  SUPPLEMENTAL CASH FLOW INFORMATION
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Changes in Assets and Liabilities,
Exclusive of Changes Shown SeparatelyAccounts receivable, net
    
    $
    
    
    
    $
    16
    
    
    $
    72Inventories
    
    
    (71
    )
    
    
    30
    
    
    
    (24
    )Recoverable pension and postretirement costs
    
    
    (26
    )
    
    
    (13
    )
    
    
    (852
    )Accrued pension liability  affiliates
    
    
    (27
    )
    
    
    9
    
    
    
    598Accounts payable
    
    
    47
    
    
    
    (56
    )
    
    
    (82
    )Income taxes payable
    
    
    (77
    )
    
    
    (109
    )
    
    
    (29
    )Accrued postretirement liability  affiliates
    
    
    3
    
    
    
    (17
    )
    
    
    259Other assets
    
    
    (131
    )
    
    
    (5
    )
    
    
    58Other liabilities
    
    
    29
    
    
    
    106
    
    
    
    118$
    (253
    )
    
    $
    (39
    )
    
    $
    118
  (in Millions)
    
    2010
    
    
    2009
    
    
    2008Cash Paid ForInterest (excluding interest capitalized)
    
    $
    315
    
    
    $
    328
    
    
    $
    290Income taxes
    
    
    28
    
    
    
    319
    
    
    
    24
 61




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##### Table of Contents



NOTE 19  RELATED PARTY TRANSACTIONS
   (in Millions)
    
    2010
    
    2009
    
    2008RevenuesEnergy sales
    
    $
    1
    
    
    $
    1
    
    
    $
    Other services
    
    
    7
    
    
    
    4
    
    
    
    6Shared capital assets
    
    
    29
    
    
    
    28
    
    
    
    23CostsFuel and power purchases
    
    
    4
    
    
    
    3
    
    
    
    5Other services and interest
    
    
    2
    
    
    
    3
    
    
    
    7Corporate expenses (net)
    
    
    294
    
    
    
    313
    
    
    
    388OtherDividends declared
    
    
    305
    
    
    
    305
    
    
    
    228Dividends paid
    
    
    305
    
    
    
    305
    
    
    
    305Capital contribution
    
    
    
    
    
    
    250
    
    
    
    175
 December 31,(in Millions)
    
    2010
    
    2009AssetsAccounts receivable
    
    $
    8
    
    
    $
    3Notes receivable
    
    
    103
    
    
    
    82Liabilities & EquityAccounts payable
    
    
    50
    
    
    
    74Other liabilitiesAccrued pension liability
    
    
    960
    
    
    
    987Accrued postretirement liability
    
    
    1,060
    
    
    
    1,058
  NOTE 20  SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
 First
    
    Second
    
    Third
    
    Fourth(in Millions)
    
    Quarter
    
    Quarter
    
    Quarter
    
    Quarter
    
    Year2010Operating Revenues
    
    $
    1,146
    
    
    $
    1,208
    
    
    $
    1,444
    
    
    $
    1,195
    
    
    $
    4,993Operating Income
    
    
    226
    
    
    
    221
    
    
    
    351
    
    
    
    230
    
    
    
    1,028Net Income
    
    
    91
    
    
    
    87
    
    
    
    165
    
    
    
    98
    
    
    
    4412009Operating Revenues
    
    
    1,118
    
    
    
    1,108
    
    
    
    1,289
    
    
    
    1,199
    
    
    
    4,714Operating Income
    
    
    214
    
    
    
    189
    
    
    
    318
    
    
    
    178
    
    
    
    899Net Income
    
    
    78
    
    
    
    79
    
    
    
    149
    
    
    
    70
    
    
    
    376
 62




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##### Table of Contents



Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
  
 Item 9A.
    
    Controls and Procedures
  
 Item 9B.
    
    Other Information
  
 Part III
 
 Item 10.
    
    Directors, Executive Officers and Corporate Governance
 
 Item 11.
    
    Executive Compensation
 
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
 
 Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence
  
 Item 14.
    
    Principal Accountant Fees and Services
  2010
    
    
    2009Audit fees (1)
    
    $
    1,217,885
    
    
    $
    1,231,865Audit-related fees (2)
    
    
    37,000
    
    
    
    37,400All
other fees (3)
    
    
    410,498
    
    
    
    100,000Total
    
    $
    1,665,383
    
    
    $
    1,369,265
 
 (1)
    
    Represents the aggregate fees for the audits of Detroit Edisons annual financial statements
included in the Annual Reports on Form 10-K and for the reviews of the financial statements
included in the Quarterly Reports on Form 10-Q.(2)
    
    Represents the aggregate fees billed for audit-related services for various attest services.(3)
    
    Represents consulting services for the purpose of providing
advice and recommendations.  63




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##### Table of Contents



Part
 
 Item 15.
    
    Exhibits and Financial Statement Schedules
     (i)  Exhibits filed herewith.
 4-273
    
    Supplemental Indenture, dated as of December 1, 2010 to the Mortgage and Deed
of Trust dated as
of October 1, 1924 between The Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee. (2010 Series CT)12-39
    
    Computation of Ratio of Earnings to Fixed Charges.23-24
    
    Consent of PricewaterhouseCoopers LLP.23-25
    
    Consent of Deloitte & Touche LLP.31-61
    
    Chief Executive Officer Section 302 Form 10-K Certification of Periodic Report.31-62
    
    Chief Financial Officer Section 302 Form 10-K Certification of Periodic Report.
 (ii)  Exhibits incorporated herein by reference.
 3(a)
    
    Restated Articles of Incorporation of The Detroit Edison Company,
as filed December 10, 1991. (Exhibit 3-13 to Form 10-Q for
the quarter ended June 30, 1999).3(b)
    
    Bylaws of The Detroit Edison Company, as amended through
September 22, 1999. (Exhibit 3-14 to Form 10-Q for the
quarter ended September 30, 1999).4(a)
    
    Mortgage and Deed of Trust, dated as of October 1, 1924, between
The Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit B-1 to
Registration Statement on Form A-2 (File No. 2-1630)) and
indentures supplemental thereto, dated as of dates
indicated below, and filed as exhibits to the filings set
forth below:Supplemental Indenture, dated as of December 1, 1940, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
B-14 to Registration Statement on Form A-2 (File No.
2-4609)). (amendment)Supplemental Indenture, dated as of September 1, 1947, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
B-20 to Registration Statement on Form S-1 (File No.
2-7136)). (amendment)Supplemental Indenture, dated as of March 1, 1950, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit B-22 to
Registration Statement on Form S-1 (File No. 2-8290)).
(amendment)Supplemental Indenture, dated as of November 15, 1951, to the
Mortgage and Deed of Trust, dated as
of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
B-23 to Registration Statement on Form S-1 (File No. 2-9226)).
(amendment)Supplemental Indenture, dated as of August 15, 1957, to the
Mortgage and Deed of Trust, dated as
 64




---



##### Table of Contents



of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
3-B-30 to Form 8-K dated September 11, 1957). (amendment)Supplemental Indenture, dated as of December 1, 1966, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
2-B-32 to Registration Statement on Form S-9 (File No.
2-25664)). (amendment)Supplemental Indenture, dated as of February 15, 1990, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-212 to Form 10-K for the year ended December 31, 2000). (1990
Series B, C, E and F) Supplemental Indenture, dated as of
May 1, 1991, to the Mortgage and Deed of Trust, dated as of
October 1, 1924, between The Detroit Edison Company and The
Bank of New York Mellon Trust Company, N.A., as successor
trustee (Exhibit 4-178 to Form 10-K for the year ended
December 31, 1996). (1991 Series BP and CP)Supplemental Indenture, dated as of May 15, 1991, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-179 to
Form 10-K for the year ended December 31, 1996). (1991 Series DP)Supplemental Indenture, dated as of February 29, 1992, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-187 to Form 10-Q for the quarter ended March 31, 1998). (1992
Series AP)Supplemental Indenture, dated as of April 26, 1993, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-215 to
Form 10-K for the year ended December 31, 2000). (amendment)Supplemental Indenture, dated as of August 1, 1999, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-204 to
Form 10-Q for the quarter ended September 30, 1999). (1999 Series
AP, BP and CP)Supplemental Indenture, dated as of August 1, 2000, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-210 to
Form 10-Q for the quarter ended September 30, 2000). (2000 Series
BP)Supplemental Indenture, dated as of August 15, 2001, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-227 to
Form 10-Q for the quarter ended September 30, 2001). (2001 Series
CP)
 65




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##### Table of Contents



Supplemental Indenture, dated as of September 17, 2002, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4.1 to Registration Statement on Form S-3 (File No.
333-100000)). (amendment and successor trustee)Supplemental Indenture, dated as of October 15, 2002, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-230 to Form 10-Q for the quarter ended September 30,
2002). (2002 Series A and B)Supplemental Indenture, dated as of December 1, 2002, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-232 to Form 10-K for the year ended December 31, 2002).
(2002 Series C and D)Supplemental Indenture, dated as of August 1, 2003, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-235 to
Form 10-Q for the quarter ended September 30, 2003). (2003 Series A)Supplemental Indenture, dated as of March 15, 2004, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-238 to
Form 10-Q for the quarter ended March 31, 2004). (2004 Series A and
B)Supplemental Indenture, dated as of July 1, 2004, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-240 to
Form 10-Q for the quarter ended June 30, 2004). (2004 Series D)Supplemental Indenture, dated as of April 1, 2005, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between
Detroit Edison and The Bank of New York Mellon Trust
Company, N.A., as successor trustee (Exhibit 4.3 to
Registration Statement on Form S-4 (File No. 333-123926)).
(2005 Series AR and BR)Supplemental Indenture, dated as of September 15, 2005, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4.2 to Form 8-K dated September 29, 2005). (2005 Series C)Supplemental Indenture, dated as of September 30, 2005, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between Detroit Edison and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-248 to
Form 10-Q for the quarter ended September 30, 2005). (2005
Series E)Supplemental Indenture, dated as of May 15, 2006, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-250 to
Form 10-Q for the quarter ended June 30, 2006). (2006
Series A)Supplemental Indenture, dated as of December 1, 2007, to the
Mortgage and Deed of Trust, dated as of October 1, 1924,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4.2 to Form 8-K dated December 18, 2007). (2007 Series A)Supplemental Indenture, dated as of May 1, 2008 to Mortgage and
Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-253 to
Form 10-Q for the quarter ended June 30, 2008). (2008 Series ET)
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Supplemental Indenture, dated as of June 1, 2008 to Mortgage and
Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-255 to
Form 10-Q for the quarter ended June 30, 2008). (2008
Series G)Supplemental Indenture, dated as of July 1, 2008 to Mortgage and
Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-257 to
Form 10-Q for the quarter ended June 30, 2008). (2008
Series KT)Supplemental Indenture, dated as of October 1, 2008 to Mortgage
and Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-259 to
Form 10-Q for the quarter ended September 30, 2008). (2008
Series J)Supplemental Indenture, dated as of December 1, 2008 to Mortgage
and Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee, providing for
General and Refunding Mortgage Bonds. (Exhibit 4-261 to
Form 10-K for the year ended December 31, 2008). (2008
Series LT)Supplemental Indenture, dated as of March 15, 2009 to Mortgage
and Deed of Trust dated as of October 1, 1924 between The
Detroit Edison Company and The Bank of New York Mellon
Trust Company N.A., as successor trustee (Exhibit 4-263 to
Form 10-Q for the quarter ended March 31, 2009). (2009
Series BT)Supplemental Indenture, dated as of November 1, 2009 to the
Mortgage and Deed of Trust dated as of October 1, 1924
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company N.A., as successor trustee. (Exhibit
4-267 to Form 10-K for the year ended December 31, 2009). (2009
Series CT)Supplemental Indenture, dated as of August 1, 2010, to the Mortgage
and Deed of Trust, dated as of October 1, 1924, by and between the
Company and The Bank of New York Mellon Trust Company, N.A. as
successor trustee. (Exhibit 4-269 to Form 10-Q for the quarter
ended September 30, 2010). (2010 Series B)Supplemental Indenture, dated as of September 1, 2010, to the
Mortgage and Deed of Trust, dated as of October 1, 1924, by and
between the Company and The Bank of New York Mellon Trust Company,
N.A. as successor trustee. (Exhibit 4-271 to Form 10-Q for the
quarter ended September 30, 2010). (2010 Series A)4(b)
    
    Collateral Trust Indenture, dated as of June 30, 1993, between
The Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (Exhibit 4-152 to
Registration Statement on Form S-3 (File No. 33-50325)).Tenth Supplemental Indenture, dated as of October 23, 2002, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-231 to Form 10-Q for the quarter ended September 30,
2002). (5.20% Senior Notes due 2012 and 6.35% Senior Notes
due 2032)Eleventh Supplemental Indenture, dated as of December 1, 2002, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-233 to Form 10-Q for the quarter ended March 31, 2003).
(5.45% Senior Notes due 2032 and 5.25% Senior Notes due
2032)Twelfth Supplemental Indenture, dated as of August 1, 2003, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-236 to Form 10-Q for the quarter ended September 30,
2003). (5 1/2% Senior Notes due 2030)
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Thirteenth Supplemental Indenture, dated as of April 1, 2004, to the
Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-237 to Form 10-Q for the quarter ended March 31, 2004).
(4.875% Senior Notes Due 2029 and 4.65% Senior Notes due
2028)Fourteenth Supplemental Indenture, dated as of July 15, 2004, to the
Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-239 to Form 10-Q for the quarter ended June 30, 2004). (2004
Series D 5.40% Senior Notes due 2014)Sixteenth Supplemental Indenture, dated as of April 1, 2005, to the
Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4.1 to Registration Statement on Form S-4 (File No.
333-123926)). (2005 Series AR 4.80% Senior Notes due 2015
and 2005 Series BR 5.45% Senior Notes due 2035)Eighteenth Supplemental Indenture, dated as of September 15, 2005,
to the Collateral Trust Indenture, dated as of June 30,
1993, between The Detroit Edison Company and The Bank of
New York Mellon Trust Company, N.A., as successor trustee
(Exhibit 4.1 to Form 8-K dated September 29, 2005). (2005
Series C 5.19% Senior Notes due October 1, 2023)Nineteenth Supplemental Indenture, dated as of September 30, 2005,
to the Collateral Trust Indenture, dated as of June 30,
1993, between The Detroit Edison Company and The Bank of
New York Mellon Trust Company, N.A., as successor trustee
(Exhibit 4-247 to Form 10-Q for the quarter ended September
30, 2005). (2005 Series E 5.70% Senior Notes due 2037)Twentieth Supplemental Indenture, dated as of May 15, 2006, to the
Collateral Trust Indenture dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee (Exhibit
4-249 to Form 10-Q for the quarter ended June 30, 2006). (2006
Series A Senior Notes due 2036)Twenty-Second Supplemental Indenture, dated as of December 1, 2007,
to the Collateral Trust Indenture, dated as of June 30,
1993, between The Detroit Edison Company and The Bank of
New York Trust Company, N.A., as successor trustee (Exhibit
4.1 to Form 8-K dated December 18, 2007). (2007 Series A
Senior Notes due 2038)Twenty-Fourth Supplemental Indenture, dated as of May 1, 2008, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Trust Company, N.A., as successor trustee (Exhibit 4-254 to
Form 10-Q for the quarter ended June 30, 2008). (2008
Series ET Variable Rate Senior Notes due 2029)Amendment dated June 1, 2009 to the Twenty-fourth Supplemental
Indenture, dated as of May 1, 2008 to the Collateral Trust
Indenture, dated as of June 30, 1993 between The Detroit
Edison Company and The Bank of New York Mellon Trust
Company, N.A. as successor trustee (2008 Series ET Variable
Rate Senior Notes due 2029) (Exhibit 4-265 to Form 10-Q for
the quarter ended June 30, 2009)Twenty-Fifth Supplemental Indenture, dated as of June 1, 2008, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Trust Company, N.A., as successor trustee (Exhibit 4-256 to
Form 10-Q for the quarter ended June 30, 2008). (2008
Series G 5.60% Senior Notes due 2018)Twenty-Sixth Supplemental Indenture, dated as of July 1, 2008, to
the Collateral Trust Indenture, dated as of June 30, 1993,
between The Detroit Edison Company and The Bank of New York
Trust Company, N.A., as successor trustee (Exhibit 4-258 to
Form 10-Q for the quarter ended June 30, 2008). (2008
Series KT Variable Rate Senior Notes due 2020)Amendment dated June 1, 2009 to the Twenty-sixth Supplemental
Indenture, dated as of July 1, 2008 to the Collateral Trust
Indenture, dated as of June 30, 1993 between The Detroit
Edison Company and The Bank of New York Mellon Trust
Company, N.A., as successor trustee (2008 Series KT Variable
Rate Senior Notes due 2020) (Exhibit 4-266 to Form 10-Q for
the quarter ended June 30, 2009)
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Twenty-Seventh Supplemental Indenture, dated as of October 1,
2008, to the Collateral Trust Indenture, dated as of June
30, 1993, between The Detroit Edison Company and The Bank
of New York Trust Company, N.A., as successor trustee
(Exhibit 4-260 to Form 10-Q for the quarter ended September
30, 2008). (2008 Series J 6.40% Senior Notes due 2013)Twenty-Eighth Supplemental Indenture, dated as of December 1,
2008 to the Collateral Trust Indenture, dated as of June
30, 1993 between The Detroit Edison Company and The Bank of
New York Mellon Trust Company, N.A. (Exhibit 4-262 to
Detroit Edisons Form 10-K for the year ended December 31,
2008). (2008 Series LT 6.75% Senior Notes due 2038)Twenty-Ninth Supplemental Indenture, dated as of March 15, 2009,
to the Collateral Trust Indenture, dated as of June 30,
1993 between The Detroit Edison Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee
(Exhibit 4-264 to Detroit Edisons Form 10-Q for the
quarter ended March 31, 2009). (2009 Series BT 6.00% Senior
Notes due 2036)Thirtieth Supplemental Indenture, dated as of November 1, 2009
to the Collateral Trust Indenture, dated as of June 30,
1993 between The Detroit Edison Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee.
(Exhibit 4-268 to Form 10-K for the year ended December 31, 2009).
(2009 Series CT Variable Rate Senior Notes due 2024).Thirty-First Supplemental Indenture, dated as of August 1, 2010 to
the Collateral Trust Indenture, dated as of June 1, 1993 by and
between the Company and The Bank of New York Mellon Trust Company,
N.A., as successor trustee. (Exhibit 4-270 to Form 10-Q for the
quarter ended September 30, 2010.) (2010 Series B 3.45% Senior Notes
due 2020)Thirty-Second Supplemental Indenture, dated as of September 1, 2010,
by and between the Detroit Edison Company and The Bank of New York
Mellon Trust Company, N.A., as successor trustee. (Exhibit 4-272 to
Form 10-Q for the quarter ended September 30, 2010.) (2010 Series A
4.89% Senior Notes due 2020)4(c)
    
    Trust Agreement of Detroit Edison Trust I. (Exhibit 4.9 to
Registration Statement on Form S-3 (File No. 333-100000)).4(d)
    
    Trust Agreement of Detroit Edison Trust II. (Exhibit 4.10 to
Registration Statement on Form S-3 (File No. 333-100000)).10(a)
    
    Securitization Property Sales Agreement dated as of March 9,
2001, between The Detroit Edison Securitization Funding LLC
and The Detroit Edison Company. (Exhibit 10-42 to Form 10-Q
for the quarter ended March 31, 2001).10(b)
    
    Certain arrangements pertaining to the employment of Anthony F.
Earley, Jr. with The Detroit Edison Company, dated April 25,
1994. (Exhibit 10-53 to Form 10-Q for the quarter ended
March 31, 1994).10(c)
    
    Certain arrangements pertaining to the employment of Gerard M.
Anderson with The Detroit Edison Company, dated October 6,
1993. (Exhibit 10-48 to Form 10-K for year ended December
31, 1993).10(d)
    
    Certain arrangements pertaining to the employment of David E.
Meador with The Detroit Edison Company, dated January 14,
1997. (Exhibit 10-5 to Form 10-K for the year ended
December 31, 1996).10(e)
    
    Amended and Restated Post-Employment Income Agreement, dated
March 23, 1998, between The Detroit Edison Company and
Anthony F. Earley, Jr. (Exhibit 10-21 to Form 10-Q for the
quarter ended March 31, 1998).10(f)
    
    The Detroit Edison Company Supplemental Long-Term Disability
Plan, dated January 27, 1997. (Exhibit 10-4 to Form 10-K
for the year ended December 31, 1996).10(g)
    
    Form of Amended and Restated Detroit Edison Two-Year Credit
Agreement, dated as of April 29, 2009 and amended and restated as of
August 20, 2010, by and among The Detroit Edison Company the lenders
party thereto, Barclays Bank plc, as Administrative Agent, and
Citibank N.A., JPMorgan Chase Bank, N.A. and the Royal Bank of
Scotland plc, as Co-Syndication Agents (Exhibit 10.1 to Detroit
Edison Form 8-K filed on August 26, 2010).
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##### Table of Contents



10(h)
    
    Form of Detroit Edison Three-Year Credit Agreement, dated as of
August 20, 2010, by and among The Detroit Edison Company, the
lenders party thereto, Barclays Bank plc, as Administrative Agent,
and Citibank N.A., JPMorgan Chase Bank, N.A. and the Royal Bank of
Scotland plc, as Co-Syndication Agents (Exhibit 10.2 to Detroit
Edison Form 8-K filed on August 26, 2010).99(a)
    
    Belle River Participation Agreement, dated as of December 1,
1982, between The Detroit Edison Company and Michigan
Public Power Agency. (Exhibit 28-5 to Registration
Statement No. 2-81501).99(b)
    
    Belle River Transmission Ownership and Operating Agreement, dated
as of December 1, 1982, between The Detroit Edison Company
and Michigan Public Power Agency. (Exhibit 28-6 to
Registration Statement No. 2-81501).(iii)  Exhibits furnished herewith.32-61
    
    Chief Executive Officer Section 906 Form 10-K Certification of Periodic Report.32-62
    
    Chief Financial Officer Section 906 Form 10-K Certification of Periodic Report.
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The Detroit Edison Company  Schedule II  Valuation and Qualifying Accounts
 Year Ended December 31(in Millions)
    
    2010
    
    
    2009
    
    
    2008Allowance for Doubtful
Accounts (shown as deduction
from Accounts Receivable in the
Consolidated Statements of
Financial Position)Balance at Beginning of Period
    
    $
    118
    
    
    $
    121
    
    
    $
    93Additions:Charged to costs and expenses
    
    
    57
    
    
    
    62
    
    
    
    81Charged to other accounts (1)
    
    
    8
    
    
    
    7
    
    
    
    5Deductions (2)
    
    
    (90
    )
    
    
    (72
    )
    
    
    (58
    )Balance At End of Period
    
    $
    93
    
    
    $
    118
    
    
    $
    121
 
 (1)
    
    Collection of accounts previously written off.(2)
    
    Non-collectible accounts written off. 71




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Signatures
  THE DETROIT EDISON COMPANY
(Registrant)Date: February 18, 2011
    By
    /s/ GERARD M. ANDERSONGerard M. AndersonChairman of the Board and

Chief Executive Officer  By
    
    /s/ GERARD M. ANDERSON
    
    By
    
    /s/ PETER B. OLEKSIAKGerard M. Anderson
    
    
    
    Peter B. OleksiakChairman of the Board and
    
    
    
    Vice President, Controller andChief Executive Officer
    
    
    
    Chief Accounting OfficerBy
    
    /s/ DAVID E. MEADOR
    
    By
    
    /s/ LISA A. MUSCHONGDavid E. Meador
    
    
    
    Lisa A. MuschongDirector, Executive Vice President and Chief
    
    
    
    DirectorFinancial OfficerBy
    
    /s/ BRUCE D. PETERSONBruce D. PetersonDirector
  72