Document:

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                                                                   EXHIBIT 10-49

                              DTE ENERGY AFFILIATES

                         NONQUALIFIED PLANS MASTER TRUST

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                                TABLE OF CONTENTS

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Section 1         Definitions............................................................................2
Section 2         Establishment and Funding of Trust.....................................................4
Section 3         Payments to Plan Participants and Their Beneficiaries..................................6
Section 4         Trustee Responsibility Regarding Payments to Trust Beneficiary
                  When Company is Insolvent..............................................................7
Section 5         Payments to Company....................................................................9
Section 6         Investment and Administrative..........................................................9
Section 7         Contractual Settlement and Income; Market Practice Settlements........................11
Section 8         Disposition of Income.................................................................11
Section 9         Accounting by Trustee.................................................................12
Section 10        Responsibility of Trustee.............................................................12
Section 11        Compensation and Expenses of Trustee..................................................14
Section 12        Resignation and Removal of Trustee....................................................15
Section 13        Appointment of Successor..............................................................15
Section 14        Amendment or Termination..............................................................16
Section 15        Miscellaneous.........................................................................16

Appendix A        Prior Plans
Appendix B        Non-qualified Deferred Compensation Plans
Appendix C        Prior Trusts

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                              DTE ENERGY AFFILIATES
                         NONQUALIFIED PLANS MASTER TRUST

         This Trust Agreement is made effective the 1st day of May 2003, by and
between DTE Energy Company, a corporation organized under the laws of the State
of Michigan or any successor corporation (the "Company"), and Mellon Bank,
N.A., a national banking association organized in the United States (the
"Trustee").

                                   WITNESSETH:

         WHEREAS, the Company previously adopted the non-qualified deferred
compensation plans listed in Appendix A, (the "Prior Plans") which have been
replaced by the non-qualified deferred compensation plans listed in Appendix B
(the "Plans"); and

         WHEREAS, Appendix B may be revised by the Company from time to time
prior to a Change in Control to add or delete Plans by delivering to the Trustee
a new Appendix B without requiring an amendment of the Trust Agreement; and

         WHEREAS, the Company has incurred or expects to incur liability under
the terms of the Plans with respect to the individuals participating in the
Plans; and

         WHEREAS, the Company previously established the irrevocable grantor
trusts listed in Appendix C (the "Prior Trusts") to support the Prior Plans and
now wishes to merge the Prior Trusts and assets and establish a global benefits
trust (hereinafter called the "Trust") and to contribute to the Trust assets
that shall be held therein, subject to the claims of the creditors of the
Company and, to the extent provided herein, the creditors of Participating
Affiliated Companies in the event of Insolvency, as herein defined, until paid
to Plan Participants and their Beneficiaries in such manner and at such times as
specified in the Plan(s); and

         WHEREAS, the terms of the Prior Trusts permit the Prior Trusts to be
merged into the Trust as described above; and

         WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plans
as unfunded plans maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974;
and

         WHEREAS, it is the intention of the Company to make contributions to
the Trust to provide itself with a source of funds to assist it in the meeting
of its liabilities under the Plans.

         NOW, THEREFORE, the parties do hereby establish the Trust and agree
that the Trust shall be comprised, held and disposed of as follows:

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                                   SECTION 1
                                  DEFINITIONS

         (a) "AFFILIATED COMPANY" means any corporation while such corporation
is a member of the same controlled group of corporations (within the meaning of
Code section 414(b)) as the Company or any other employing entity while such
entity is under common control (within the meaning of Code section 414(c)) with
the Company.

         (b) "BENEFICIARY" means the person, persons or entity designated in
writing by a Participant, on forms provided by the Company, to receive
distribution of certain death benefits payable under a Plan in the event of the
Participant's death.

         (c) "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of DTE
Energy Company.

         (d) "CHANGE IN CONTROL" means the occurrence of any one of the
following events:

                  (1) individuals who, on January 1, 2002, constitute the Board
(the "Incumbent Directors") cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to January 1, 2002, whose election or nomination for election was approved by a
vote of at least two-thirds of the Incumbent Directors then on the Board (either
by a specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without written objection to
such nomination) shall be an Incumbent Director; provided, however, that no
individual initially elected or nominated as a director of the Company as a
result of an actual or threatened election contest (as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the "Exchange Act")) with respect to directors or as a result
of any other actual or threatened solicitation of proxies (or consents) by or on
behalf of any person other than the Board shall be deemed to be an Incumbent
Director; or

                  (2) any "person" (as such term is defined in Section 3(a)(9)
of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the
Exchange Act) is or becomes a "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing 20% or more of the combined voting power of the Company's then
outstanding securities eligible to vote for the election of the Board (the
"Company Voting Securities"); provided, however, that the event described in
this paragraph (2) shall not be deemed to be a Change in Control by virtue of
any of the following acquisitions: (A) by the Company or any Subsidiary, (B) by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary, (C) by any underwriter temporarily holding securities
pursuant to an offering of such securities, (D) pursuant to a Non-Qualifying
Transaction (as defined in paragraph (3)), or (E) a transaction (other than one
described in (3) below) in which Company Voting Securities are acquired from the
Company, if a majority of the Incumbent Directors approve a resolution providing
expressly that the acquisition pursuant to this clause (E) does not constitute a
Change in Control under this paragraph (2); or

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                  (3) the consummation of a merger, consolidation, statutory
share exchange or similar form of corporate transaction involving the Company or
any of its Subsidiaries (a "Business Combination") or sale or other disposition
of all or substantially all of the Company's assets to an entity that is not an
affiliate of the Company (a "Sale"), unless immediately following such Business
Combination or Sale: (A) more than 50% of the total voting power of (x) the
corporation resulting from such Business Combination (the "Surviving
Corporation"), or (y) if applicable, the ultimate parent corporation that
directly or indirectly has beneficial ownership of 100% of the voting securities
eligible to elect directors of the Surviving Corporation (the "Parent
Corporation"), is represented by Company Voting Securities that were outstanding
immediately prior to such Business Combination (or, if applicable, is
represented by shares into which such Company Voting Securities were converted
pursuant to such Business Combination), and such voting power among the holders
thereof is in substantially the same proportion as the voting power of such
Company Voting Securities among the holders thereof immediately prior to the
Business Combination, (B) no person (other than any employee benefit plan (or
related trust) sponsored or maintained by the Surviving Corporation or the
Parent Corporation), is or becomes the beneficial owner, directly or indirectly,
of 20% or more of the total voting power of the outstanding voting securities
eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) and (C) at least a majority of the
members of the board of directors of the Parent Corporation (or, if there is no
Parent Corporation, the Surviving Corporation) following the consummation of the
Business Combination were Incumbent Directors at the time of the Board's
approval of the execution of the initial agreement providing for such Business
Combination (any Business Combination which satisfies all of the criteria
specified in (A), (B) and (C) above shall be deemed to be a "Non-Qualifying
Transaction"); or

                  (4) the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company.

Notwithstanding the foregoing, a Change in Control of the Company shall not be
deemed to occur solely because any person acquires beneficial ownership of more
than 20% of Company Voting Securities as a result of the acquisition of Company
Voting Securities by the Company which reduces the number of Company Voting
Securities outstanding; provided, that if after such acquisition by the Company
such person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control of the Company shall then
occur.

The Company shall immediately notify the Trustee in writing of any Change in
Control. The Trustee may conclusively rely upon such notice and shall have no
duty to determine whether a Change in Control has occurred.

         (e) "CODE" means the Internal Revenue Code of 1986, as amended, and any
regulations issued thereunder. References to any section or subsection of the
Code includes reference to any comparable or succeeding provisions of any
legislation which amends, supplements or replaces such section or subsection.

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         (f) "COMPANY" means DTE Energy Company or its successors and assigns.

         (g) "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended, and any regulations issued thereunder. References to any section or
subsection of ERISA include references to any comparable or succeeding
provisions of any legislation that amends, supplements or replaces such section
or subsection.

         (h) "INSOLVENCY" OR "INSOLVENT" means for purposes of this Trust
Agreement (i) the Company or a Participating Affiliated Company is unable to pay
its debts as they become due, or (ii) the Company or a Participating Affiliated
Company is subject to a pending proceeding as a debtor under the United States
Bankruptcy Code.

         (i) "PARTICIPANT" means an employee who has made a written election on
a properly executed form to participate in a Plan or Prior Plan that requires
such an election or has otherwise been properly designated to participate in a
Plan or Prior Plan.

         (j) "PARTICIPATING AFFILIATED COMPANY" means any Affiliated Company who
has elected to participate in a Plan that requires such an election; otherwise
it means any Affiliated Company.

         (k) "PLAN" OR "PLANS" means the plans described in Appendix B.

         (l) "PRIOR PLAN" OR "PRIOR PLANS" means the plans described in
Appendix A.

         (m) "PRIOR TRUSTS" means the irrevocable grantor trusts described in
Appendix C.

         (n) "SUBSIDIARY" means a corporation, partnership, joint venture,
limited liability company, unincorporated association or other entity in which
the Company has a direct or indirect ownership or other equity interest.

         (o) "TRUST" OR "TRUST AGREEMENT" means the DTE Energy Affiliates
Nonqualified Plans Master Trust as described herein and as amended from time to
time.

         (p) "TRUSTEE" means Mellon Bank, N. A.

                                   SECTION 2
                       ESTABLISHMENT AND FUNDING OF TRUST

         (a) The Company hereby deposits with the Trustee in trust the total
assets of the Prior Trusts which shall become the principal of the Trust to be
held, administered and disposed of by the Trustee as provided in this Trust
Agreement. As of the transfer of assets described in the preceding sentence, the
"Funding Amount" (as defined in the Prior Trusts) and contribution requirements
of the Prior Trusts shall no longer apply and the funding requirements set forth
in the Plans and this Trust shall be operative. The Trustee shall establish a
subaccount within this Trust in the name of each Plan and each Participating
Affiliated Company participating in such Plan (each a "Participating Affiliated
Company Account"), as directed by the Company. Amounts transferred to this

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Trust from a Prior Trust shall be credited to the subaccount of the Plan to
which the Prior Trust corresponds, as directed by the Company. Other
contributions or transfers to this Trust shall be credited to the subaccount of
one or more Plans and one or more Participating Affiliated Company Accounts, as
directed by the Company. The Company may cause the assets of the subaccounts
allocable to the Plans to be commingled for investment purposes, provided that
the Company shall be responsible for causing sufficient records to be maintained
to insure that benefits and liabilities payable with respect to each Plan shall
be paid from the assets allocable to each such Plan.

         (b) The Trust hereby established shall be irrevocable.

         (c) The Trust is intended to be a grantor trust, of which the Company
is the grantor, within the meaning of subpart E, part I, subchapter J, chapter
1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be
construed accordingly. The Company represents and warrants to the Trustee: (i)
no Plan for which benefits are or may become payable under this Trust is subject
to Part 4 of Title I of ERISA; and (ii) each Plan covers, and will cover, only
(x) a select group of management or highly compensated employees as contemplated
by Section 401(a) of ERISA and interpretations, opinions, and rulings of the
Department of Labor thereunder or (y) participants in an excess benefit plan as
defined in Section 3(36) of ERISA.

         (d) The principal of the Trust, and any earnings thereon shall be held
separate and apart from other funds of the Company and Participating Affiliated
Companies and shall be used exclusively for the purposes of paying Plan
Participants and their Beneficiaries to the extent any Participant or
Beneficiary acquires the right to receive a payment under a Plan and general
creditors as herein setforth. Plan Participants and their Beneficiaries shall
have no preferred claim on, or any beneficial ownership interest in, any assets
of the Trust. Any rights created under a Plan and this Trust Agreement shall be
mere unsecured contractual rights of Plan Participants and their Beneficiaries
against the Company. Any assets held by the Trustee in any subaccount will be
subject to the claims of the Company's general creditors in the event of
Insolvency of the Company. Any assets held by the Trustee in a Participating
Affiliated Company Account will be subject to the claims of such Participating
Affiliated Company's general creditors (but shall not be subject to the claims
of any other Participating Affiliated Company's general creditors) under federal
and state law in the event of Insolvency.

         Upon a Change in Control, the Company shall, as soon as possible, but
in no event longer than 7 days following the Change in Control, as defined
herein, make an irrevocable contribution to the Trust. Such contribution shall
be in an amount such that the resulting balance of the Trust and each Plan's
subaccount are sufficient to pay each Plan Participant or Beneficiary the
benefits to which Plan Participants or their Beneficiaries would be entitled
pursuant to the terms of the Plan, as well as an amount deemed necessary to pay
estimated Trust administrative expenses for the following 5 years as determined
by the Company's accountants, as of the date on which the Change in Control
occurred. The Trustee shall have no duty to enforce any funding obligations of
the Company or to determine or collect contributions under the Plans and shall
have no responsibility for any property until it is received and accepted by the
Trustee. Notwithstanding the preceding, in

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no event shall the transfer the Company is required to make hereunder upon or
following a Change in Control be less than the transfer the Company would have
been required to make under the terms of the Plans as in effect immediately
prior to the Change in Control. The Company shall have the sole duty and
responsibility, both before and after a Change of Control, for the determination
of the accuracy or sufficiency of the contributions to be made under the Plans.
The duties of the Trustee shall be governed solely by the terms of this Trust
Agreement without reference to the terms of the Plan, and the Trustee shall have
no duties other than those specifically set forth in this Trust Agreement.

                                   SECTION 3
              PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES

         (a) The Company shall deliver to the Trustee a schedule (the "Payment
Schedule") that indicates the amounts payable with respect to each Plan
Participant (and his or her Beneficiaries), that provides a formula or other
instructions acceptable to the Trustee for determining the amounts so payable,
the form in which such amount is to be paid (as provided for or available under
the applicable Plan), and the time of commencement for payment of such amounts.
Except as otherwise provided herein, the Trustee shall make payments to the Plan
Participants and their Beneficiaries in accordance with such Payment Schedule.
The Company shall be responsible for notifying the Trustee of any change in the
information on the Payment Schedule. Except as otherwise provided herein, the
Trustee shall make payments to the Participants and their Beneficiaries in
accordance with such Payment Schedule; provided, however, that, except as
provided in Section 14 and with respect to the payment of the Trustee's
expenses, (i) amounts credited to a Plan's subaccount under this Trust may only
be used to pay benefits to Participants and Beneficiaries of such Plan and (ii)
amounts credited to a Participating Affiliated Company Account may only be used
to pay benefits to Participants and Beneficiaries who are entitled to a benefit
from such Participating Affiliated Company.

         It is the intent of the Company and the Trustee that the Company shall
be responsible for determining and effecting all federal, state and local tax
aspects of the Plan and the Trust Fund, including without limitation income
taxes payable on the Trust's Fund's income, if any, and required withholding of
income or other payroll taxes in connection with the payment of benefits from
the Trust Fund pursuant to the Plan, and all reporting required in connection
with any such taxes. To the extent that the Company is required by applicable
law to pay or withhold such taxes or to file such reports, such obligations
shall be a responsibility allocated to the Company hereunder. To the extent the
Trustee is required by applicable law to pay or withhold such taxes or to file
such reports, the Company shall inform the Trustee of such obligation, shall
direct the Trustee with respect to the performance of such obligations, and
shall provide the Trustee with all information required by the Trustee to meet
such obligations. Notwithstanding the foregoing, the Company may elect to pay
any applicable taxes directly. In the event the Company pays taxes directly,
such amounts may be reimbursed from the Trust assets by the Trustee, provided
that the Company certifies the amount of taxes paid directly and instructs the
Trustee to remit a reimbursement of such taxes to the Company. In addition, the
Trustee shall provide the Company with all information required to enable the
Company to pay any taxes on the Trust's income on a timely basis.

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        (b) The entitlement of a Plan Participant or his or her Beneficiaries to
benefits under a Plan shall be determined by the Company or such party as it
shall designate under the Plan, and any claim for such benefits shall be
considered and reviewed under the procedures set out in the Plan. The Company
shall notify the Trustee of such determination and shall direct commencement of
payments of such benefits.

         (c) The Company or the applicable Participating Affiliated Company may
make payment of benefits directly to Plan Participants or their Beneficiaries as
they become due under the terms of a Plan. The Company shall notify the Trustee
of any decision to make payment of benefits directly prior to the time amounts
are payable to Participants or their Beneficiaries. In addition, if the
principal of the Trust, and any earnings thereon, are not sufficient to make
payments of benefits in accordance with the terms of the Plan, the Company or
the applicable Participating Affiliated Company shall make the balance of each
such payment as it falls due. The Trustee shall notify the Company where
principal and earnings are not sufficient to make a payment then due under the
Payment Schedule.

                                   SECTION 4
 TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY WHEN COMPANY IS
                                   INSOLVENT

         (a) The Trustee shall cease payment of benefits to Plan Participants
and their Beneficiaries if the Company is Insolvent, subject to the provisions
of Subsection 4(b) below. The Trustee shall cease payment of benefits to Plan
Participants and their Beneficiaries on behalf of a Participating Affiliated
Company if that Participating Affiliated Company is Insolvent, subject to the
provisions of Subsection 4(b) below.

         (b) At all times during the continuance of this Trust, as provided in
Subsection 2(d) hereof, the principal and income of the Trust shall be subject
to claims of general creditors of the Company under federal and state law as set
forth below, and the principal and income allocable to each Participating
Affiliated Company's Subaccount shall be subject to claims of general creditors
of such Participating Affiliated Company, under federal and state law as set
forth below, for whose benefit such subaccount was established.

                  (1) The Board of Directors and the Chief Executive Officer
("CEO") of the Company shall have the duty to inform the Trustee in writing of
the Insolvency of the Company or a Participating Affiliated Company. If a person
claiming to be a creditor of the Company or a Participating Affiliated Company
alleges in writing to the Trustee that the Company or a Participating Affiliated
Company has become Insolvent, the Trustee shall determine whether the Company or
the Participating Affiliated Company is Insolvent and, pending such
determination, the Trustee in the case of the insolvency of the Company, shall
discontinue payment of benefits to Plan Participants or their Beneficiaries and;
in the case of the Insolvency of a Participating Affiliated Company, shall
discontinue payment of benefits to Plan participants who would otherwise be
entitled to a benefit payable from the subaccount of such Participating
Affiliate Company. In all cases, the Trustee shall be entitled to conclusively
rely upon the written certification of the Board of Directors or the

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Chief Executive Officer of the Company when determining whether the Company or a
Participating Affiliated Company is Insolvent.

                  (2) Unless the Trustee has actual knowledge of the Insolvency
of the Company or a Participating Affiliated Company, or has received notice
from the Company or a person claiming to be a creditor alleging that the Company
or a Participating Affiliated Company is Insolvent, the Trustee shall have no
duty to inquire whether the Company or a Participating Affiliated Company is
Insolvent. The Trustee may in all events rely on such evidence concerning the
solvency of the Company or a Participating Affiliated Company, as may be
furnished to the Trustee and that provides the Trustee with a reasonable basis
for making a determination concerning the solvency of the Company or a
Participating Affiliated Company. In no event shall "actual knowledge" be deemed
to include knowledge of the credit status of the Company or a Participating
Affiliated Company, held by banking officers or banking employees of Mellon
Bank, N.A. which has not been communicated to the trust department of the
Trustee. The Trustee may appoint an independent accounting, consulting or law
firm to make any determination of solvency required by the Trustee under this
Section 4 only in cases where (a) the Trustee is required to make an inquiry as
to the solvency of the Company or a Participating Affiliated Company, (because a
creditor has alleged Insolvency) and (b) the Company disputes that the Company
or a Participating Affiliated Company is Insolvent. In such event, the Trustee
may conclusively rely upon the determination by such firm and shall be
responsible only for the prudent selection of such firm.

                  (3) If at any time the Board of Directors or the CEO of the
Company notifies the Trustee or the Trustee has determined that the Company is
Insolvent, the Trustee shall discontinue payments to Plan Participants or their
Beneficiaries in accordance with Subsection 4(a) and shall hold the assets of
the Trust for the benefit of the general creditors of the Company, except that,
to the extent permitted by applicable law, the Trustee's fees and expenses may
continue to be paid pursuant to Section 11 hereof. If at any time the Board of
Directors or the CEO of the Company notifies the Trustee or the Trustee has
determined that a Participating Affiliated Company is Insolvent, the Trustee
shall discontinue payments to all Plan Participants and their Beneficiaries and
the Trustee is hereby directed by the Company (without the need for further
direction from the Company or any Participating Affiliated Company at the time
of such Insolvency) to segregate into the applicable Participating Affiliated
Company's subaccount such Participating Affiliated Company's pro rata portion of
each type of asset held by the Trust (on a security by security basis). Upon
such segregation, such assets in the Insolvent Participating Affiliated
Company's subaccount shall no longer be commingled with the remaining assets of
the Trust for investment purposes, and the Trustee shall hold such segregated
assets allocable to such Insolvent Participating Affiliated Company for the
benefit of the general creditors of such Insolvent Participating Affiliated
Company, except that, to the extent permitted by applicable law, the Trustee's
fees and expenses may continue to be paid pursuant to Section 11 hereof. Upon
such segregation, the Trustee shall resume payments to Plan Participants and
Beneficiaries, in accordance with Section 3 of this Trust Agreement, who are
entitled to benefits from other than the Insolvent Participating Affiliated
Company's subaccount. Nothing in this Trust Agreement shall in any way diminish
any rights of Plan Participants or their Beneficiaries to pursue their

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rights as general creditors of the Company or a Participating Affiliated Company
with respect to benefits due under the Plan(s) or otherwise.

                  (4) In the case of an Insolvency of the Company, the Trustee
shall resume the payment of benefits to Plan Participants or their Beneficiaries
in accordance with Section 3 of this Trust Agreement only after the Trustee has
determined that the Company is not Insolvent (or is no longer Insolvent) or
pursuant to an order from the U.S. Bankruptcy Court or other court of competent
jurisdiction. In the case of an Insolvency of a Participating Affiliated
Company, the Trustee shall resume the payment of benefits to the Plan
Participants and Beneficiaries from such subaccount of such Participating
Affiliated Company in accordance with Section 3 of this Agreement, and such
subaccount may be commingled with other such trust fund assets, only after the
Trustee has determined that the Participating Affiliated Company is not
Insolvent (or is no longer Insolvent) or pursuant to an order of the U.S.
Bankruptcy Court or other Court of competent Jurisdiction.

         (c) Provided that there are sufficient assets, if the Trustee
discontinues the payment of benefits from the Trust pursuant to Subsection 4(b)
hereof and subsequently resumes such payments, the first payment following such
discontinuance, to the extent not inconsistent with an order from the U.S.
Bankruptcy Court or other court of competent jurisdiction, shall include the
aggregate amount of all payments due to Plan Participants or their Beneficiaries
under the terms of the Plan(s) for the period of such discontinuance, less the
aggregate amount of any payments made to Plan Participants or their
Beneficiaries by the Company in lieu of the payments provided for hereunder
during any such period of discontinuance, all in accordance with the Payment
Schedule, which shall be modified by the Company as necessary to comply with the
provisions of this paragraph (c).

                                   SECTION 5
                               PAYMENTS TO COMPANY

         The Company shall have no right or power to direct the Trustee to
return to the Company (or any Participating Affiliated Company) or to divert to
others any of the Trust assets before all payments of benefits have been made to
Plan Participants and their Beneficiaries pursuant to the terms of the Plan(s).
The Trustee shall be entitled to rely conclusively upon the Company's written
certification that all such payments have been made.

                                   SECTION 6
                          INVESTMENT AND ADMINISTRATIVE

         (a) Prior to a Change of Control, the Company shall establish and
maintain written investment guidelines ("Investment Guidelines"), which may be
used from time to time, for the investment of the assets in the Trust. The
Company may appoint and remove one or more investment managers from time to time
to manage specified portions of the Trust; provided, however, that the Company
may also manage all or a portion of the Trust. To the extent that assets of the
Trust are not so managed by an investment manager appointed by the Company, the
Company shall manage all such assets. The Company and

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each investment manager shall designate in writing the persons who are
authorized to represent such party in dealing with the Trustee. The Trustee
shall have no investment duties for the Trust. The Trustee shall have no duty to
inquire whether investment directions received from the Company or an investment
manager are in accordance with the Plans or the Investment Guidelines, or to
review the assets purchased, retained or sold. The Trustee shall be fully
indemnified by the Company for any action taken in accordance with, or any
failure to act in the absence of, the Company's or an investment manager's
directions.

         (b) The Company shall have the right, at anytime, and from time to time
in its sole discretion, to substitute assets of equal fair market value for any
asset held by the Trust; the Trustee shall have no responsibility for
determining whether such right has been properly exercised or for any investment
losses that may result from its exercise.

         (c) After a Change of Control, the Trustee shall have and exercise sole
investment discretion with respect to the Trust in accordance with the
Investment Guidelines in effect immediately prior to the Change of Control, a
copy of which shall be provided to the Trustee by the Company. The Trustee's
sole responsibility with respect to investment discretion shall be to exercise
such discretion in accordance with the Investment Guidelines. The Investment
Guidelines may be changed from time to time by mutual agreement of the Trustee
and the Company. The Trustee may, in its sole discretion, appoint, retain or
terminate an investment manager (including any affiliate of the Trustee) to
manage all or a portion of the Trust in accordance with the current Investment
Guidelines.

         (d) The Trustee may collect and receive any and all money and other
property due the Trust and give full discharge therefor.

         (e) The Trustee may settle, compromise or submit to arbitration any
claims, debt or damages due or owing to or from the Trust; the Trustee may also
commence or defend suits or legal proceedings to protect any interest of the
Trust, and may represent the Trust in all suits or legal proceedings in any
court or before any other body or tribunal.

         (f) The Trustee may take all action necessary to pay for authorized
transactions, including the borrowing or raising monies from any lender,
including the Trustee, in its corporate capacity in conjunction with its duties
under this Agreement and upon such terms and conditions as the Trustee may deem
advisable to settle security purchases and/or foreign exchange or contracts for
foreign exchange, and securing the repayments thereof by pledging all or any
part of the Trust.

         (g) The Trustee may appoint custodians, subcustodians or subtrustees,
domestic or foreign (including affiliates of the Trustee), as to part or all of
the Trust. The Trustee shall not be responsible or liable for any losses or
damages suffered by the Company arising as a result of the insolvency of any
custodian, subcustodian or subtrustee, except to the extent the Trustee was
negligent in its selection or continued retention of such custodian,
subcustodian or subtrustee. In no event shall the Trustee be liable for the acts
or

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omissions of any custodian, subcustodian or subtrustee appointed pursuant to the
direction of the Company or an investment manager.

         (h) The Trustee may hold property in nominee name, in bearer form, or
in book entry form, in a clearinghouse corporation or in a depository (including
an affiliate of the Trustee), so long as the Trustee's records clearly indicate
that the assets held are a part of the Trust. The Trustee shall not be
responsible for any losses resulting from the deposit or maintenance of
securities or other property (in accordance with market practice, custom, or
regulation) with any recognized foreign or domestic clearing facility, book
entry system, centralized depository, or similar organization.

                                   SECTION 7
         CONTRACTUAL SETTLEMENT AND INCOME; MARKET PRACTICE SETTLEMENTS

         (a) In accordance with the Trustee's standard operating procedure, the
Trustee shall credit the Trust with income and maturity proceeds on securities
on contractual payment date net of any taxes or upon actual receipt. To the
extent the Trustee credits income on contractual payment date, the Trustee may
reverse such accounting entries to the contractual payment date if the Trustee
reasonably believes that such amount will not be received.

         (b) In accordance with the Trustee's standard operating procedure, the
Trustee will attend to the settlement of securities transactions on the basis of
either contractual settlement date accounting or actual settlement date
accounting. To the extent the Trustee settles certain securities transactions on
the basis of contractual settlement date accounting, the Trustee may reverse to
the contractual settlement date any entry relating to such contractual
settlement if the Trustee reasonably believes that such amount will not be
received.

         (c) Settlements of transactions may be effected in trading and
processing practices customary in the jurisdiction or market where the
transaction occurs. The Company acknowledges that this may, in certain
circumstances, require the delivery of cash or securities (or other property)
without the concurrent receipt of securities (or other property) or cash. In
such circumstances, the Trustee shall have no responsibility for nonreceipt of
payment (or late payment) or nondelivery of securities or other property (or
late delivery) by the counterparty unless the nonreceipt of payment (or late
payment) or nondelivery of securities or other property (or late delivery) is
due to the Trustee's negligence or willful misconduct.

                                   SECTION 8
                              DISPOSITION OF INCOME

         During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested.

                                       11
<PAGE>

                                   SECTION 9
                              ACCOUNTING BY TRUSTEE

         (a) The Trustee shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other transactions required to be
made, including such specific records as shall be agreed upon in writing between
the Company and the Trustee. The records shall include separate subaccounts
established and maintained for each Plan and for each Participating Affiliated
Company Account within each Plan. The assets of a subaccount allocable to a Plan
shall not be used to satisfy the liabilities with respect to Plan Participants
or Beneficiaries of another Plan.

         (b) The Company shall keep full, accurate and detailed records with
respect to the Participants and benefits paid and payable under the Plan, which
records shall be made available to the Trustee at its request.

         (c) Within 60 days following the close of each calendar year and within
90 days after the removal or resignation of the Trustee, the Trustee shall
deliver to the Company a written account of its administration of the Trust
during such year or during the period from the close of the last preceding year
to the date of such removal or resignation, setting forth all investments,
receipts, disbursements and other transactions effected by it, including a
description of all securities and investments purchased and sold with the cost
or net proceeds of such purchases or sales (accrued interest paid or receivable
being shown separately), and showing all cash, securities and other property
held in the Trust at the end of such year or as of the date of such removal or
resignation, as the case may be. In the absence of the filing in writing with
the Trustee by the Company of exceptions or objections to any such account
within 90 days, the Company shall be deemed to have approved such account; in
such case, or upon the written approval by the Company of any such account, the
Trustee shall be released, relieved and discharged with respect to all matters
and things set forth in such account as though such account had been settled by
the decree of a court of competent jurisdiction. The Trustee may conclusively
rely on determinations of the Company of valuations for assets of the Trust for
which the Trustee deems there to be no readily determinable fair market value
and on determinations of the issuing insurance company of valuations for
insurance contracts/policies.

                                   SECTION 10
                            RESPONSIBILITY OF TRUSTEE

         (a) The Trustee shall act with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims, provided, however, that the
Trustee shall incur no liability to any person for any action taken pursuant to
a direction, request or approval given in writing by the Company or any
investment manager appointed by the Company. In the event of a dispute between
the Company or any Participating Affiliated Company and a party, the Trustee may
apply to a court of competent jurisdiction to resolve the dispute that is
contemplated by and in conformity with the terms of the Plans or this Trust.

                                       12
<PAGE>

         (b) The Trustee is not a party to and has no duties or responsibilities
under the Plans, and has no duties or responsibility other than those that may
be expressly contained in this Trust Agreement. Except as provided in Section
2(d) of this Trust Agreement relating to the Company's contribution obligation
on a Change in Control, in any case in which a provision of this Trust Agreement
conflicts with any provision in any Plan, this Trust Agreement shall control.

         (c) The Trustee shall not be responsible for the title, validity or
genuineness of any property or evidence of title hereto received by it or
delivered by it pursuant to this Trust Agreement and shall be held harmless in
acting upon any notice, request, direction, instruction, consent, certification
or other instrument reasonably believed by it to be genuine and delivered by the
proper party or parties.

         (d) The Company agrees to indemnify and hold harmless, to the extent
permitted by law, the Trustee, its parent, subsidiaries and affiliates, and each
of their respective officers, directors, employees and agents from and against
all liability, loss and expense, including reasonable attorneys' fees and
expenses incurred by the Trustee or any of the foregoing indemnitees arising out
of or in connection with this Trust Agreement, except as a result of the
Trustee's own negligence or willful misconduct. The Trustee shall be fully
indemnified by the Company for any action taken in accordance with, or any
failure to act in the absence of, the Company's or investment manager's written
directions. If the Trustee undertakes or defends any litigation arising in
connection with this Trust, the Company agrees to indemnify the Trustee against
the Trustee's reasonable costs, expenses and liabilities (including, without
limitation, reasonable attorneys' fees and expenses) relating thereto and to be
primarily liable for such payments. If the Company does not pay such costs,
expenses and liabilities in a reasonably timely manner, the Trustee may obtain
payment from the Trust. This Section 9(d) shall survive the termination of this
Agreement.

         (e) The Trustee may consult with legal counsel (who may also be counsel
for the Company generally) with respect to any of its duties or obligations
hereunder and as a part of its reimbursable expenses under this Agreement, pay
counsel's reasonable compensation and expenses. The Trustee shall be entitled to
rely on and may act upon advice of counsel on all matters, and shall be without
liability for any action reasonably taken or omitted pursuant to such advice.

         (f) The Trustee may in the Trustee's reasonable judgment, hire agents,
accountants, actuaries, investment advisors, financial consultants or other
professionals to assist it in performing any of its duties or obligations
hereunder and such professionals' reasonable compensation shall be part of the
Trustee's reimbursable expenses under this Trust Agreement.

         (g) The Trustee shall have, without exclusion, all powers conferred on
trustees by applicable law, unless expressly provided otherwise herein,
provided, however, that if an insurance policy is held as an asset of the Trust,
the Trustee shall have no power to name a beneficiary of the policy other than
the Trust, to assign the policy (as distinct from conversion of the policy to a
different form) other than to a successor Trustee, or to loan to

                                       13
<PAGE>

any person the proceeds of any borrowing against such policy and shall act with
respect to any such policy only as directed by the Company.

         (h) However, notwithstanding the provisions of Subsection 9(g) above,
where directed by the Company, the Trustee may loan to the Company the proceeds
of any borrowing against an insurance policy held as an asset of the Trust.

         (i) Notwithstanding any powers granted to the Trustee pursuant to this
Trust Agreement or to applicable law, the Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.

         (j) Notwithstanding anything in this Agreement to the contrary
contained herein, the Trustee shall not be responsible or liable for any delay
in performance, or non-performance, of any obligation hereunder or for any
losses to the extent that the same is due to forces beyond the reasonable
control of the Trustee, its agents or custodians, including but not limited to
nationalization, strikes, expropriation, devaluation, seizure, or similar action
by any governmental authority, de facto or de jure; or enactment, promulgation,
imposition or enforcement by any such governmental authority of currency
restrictions, exchange controls, levies or other charges affecting the Trust's
property; or the breakdown, failure or malfunction of any utilities or
telecommunications systems; or any order or regulation of any banking or
securities industry including changes in market rules and market conditions
affecting the execution or settlement of transactions; or acts of war,
terrorism, insurrection or revolution; or acts of God; or any other similar
event, provided that the relevant party shall take all reasonable steps to
minimize the effects of same. This Section shall survive the termination of this
Agreement.

         (k) The Trustee shall not be liable for any act of omission of any
other person not selected or retained by the Trustee in the exercise of its sole
discretion in carrying out any responsibility imposed upon such person. Under no
circumstances shall the Trustee be liable for any indirect, consequential, or
special damages with respect to its role as the Trustee.

         (l) If the Company either contributes or directs the Trustee to invest
the Trust Fund in securities or other obligations of the Company, then the
Trustee shall have no fiduciary or other liability for decisions to purchase or
hold such investments. Also, the Company shall direct the Trustee as to the
voting of any Company stock held in the Trust. The Company shall indemnify the
Trustee for any liabilities that arise on account of such contributions or
investments. This Section shall survive the termination of this Agreement.

                                   SECTION 11
                      COMPENSATION AND EXPENSES OF TRUSTEE

         The Company shall pay all reasonable administrative expenses and the
Trustee's fees and reasonable expenses. If not so paid, the fees and expenses
shall be paid from the Trust. The Trustee shall be entitled to fees for services
as mutually agreed. The Company

                                       14
<PAGE>

acknowledges that as part of the Trustee's compensation, the Trustee may earn
interest on balances including disbursement balances and balances arising from
purchase and sale transactions. If the Trustee advances cash or securities to
the Trust for any purpose, or in the event that the Trustee shall incur or be
assessed taxes, interest, charges, or assessments, in connection with the
performance of this Agreement, except such as may arise from its own negligent
failure to act or willful misconduct, any property at any time held in the Trust
shall be security therefor and the Trustee shall be entitled to collect from the
Trust sufficient cash for reimbursement, and if such cash is insufficient,
dispose of the assets of the Trust to the extent necessary to obtain
reimbursement. To the extent the Trustee advances funds to the Trust for
disbursements or to effect the settlement of purchase transactions, the Trustee
shall be entitled to collect from the Trust either (i) with respect to
non-domestic assets, an amount equal to what would have been earned on the sums
advanced (an amount approximating the "federal funds" interest rate) or (ii)
with respect to non-domestic assets, the rate applicable to the appropriate
foreign market.

                                   SECTION 12
                       RESIGNATION AND REMOVAL OF TRUSTEE

         (a) The Trustee may resign at any time by written notice to the
Company, which shall be effective as of the later of (i) 30 days after receipt
of such notice, or (ii) the date of the transfer of Trust assets to a successor
Trustee, unless the Company and the Trustee agree otherwise. The Company may
remove the Trustee on 30 days notice or such shorter notice accepted by the
Trustee.

         (b) Upon resignation or removal of the Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the successor
Trustee. The resigning or removed Trustee is authorized, however, to reserve
such amount as may be necessary for the payment of its fees and expenses
incurred prior to resignation or removal. The transfer shall be completed within
30 days after receipt of notice of resignation, removal or transfer, unless the
Company extends the time limit. The Company's consent to extension of such time
limit shall not be unreasonably withheld.

         (c) If the Trustee resigns or is removed, a successor shall be
appointed, in accordance with Section 11 hereof, by the effective date of
resignation or removal under paragraph (a) of this section. If no such
appointment has been made within 60 days after the notice of such resignation or
removal, the Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. All expenses of the Trustee in
connection with the proceeding shall be allowed as administrative expenses of
the Trust.

                                   SECTION 13
                            APPOINTMENT OF SUCCESSOR

         (a) If the Trustee resigns (or is removed) in accordance with
Subsection 11(a) hereof, the Company may appoint any third party, such as a bank
trust department, that may validly exercise corporate trustee powers under state
law, as a successor to replace the Trustee upon resignation or removal. The
appointment shall be effective when accepted in writing by the new Trustee, who
shall have all of the rights and powers of the former

                                       15
<PAGE>

Trustee, including ownership rights in the Trust assets. The former Trustee
shall execute any instrument necessary or reasonably requested by the Company or
the successor Trustee to evidence the transfer.

         (b) The successor Trustee need not examine the records and acts of any
prior Trustee and may retain or dispose of existing Trust assets, subject to the
terms hereof. The successor Trustee shall not be responsible for and the Company
shall indemnify and defend the successor Trustee from any claim or liability
resulting from any action or inaction of any prior Trustee or from any other
past event, or any condition existing at the time it becomes successor Trustee.

                                   SECTION 14
                            AMENDMENT OR TERMINATION

         (a) This Trust Agreement may be amended by a written instrument
executed by the Trustee and the Company. Notwithstanding the foregoing, no such
amendment shall conflict with the terms of a Plan, as certified to in writing by
the Company (upon which certification the Trustee may conclusively rely), or
make the Trust revocable.

         (b) The Trust shall not terminate until the date on which the Plan
Participants and their Beneficiaries are no longer entitled to benefits pursuant
to the terms of the Plan, as certified to in writing by the Company (upon which
certification the Trustee may conclusively rely). Upon termination of the Trust
any assets remaining in the Trust shall be returned to the Company, Subsection
2(b) notwithstanding. The preceding sentences to the contrary notwithstanding,
this Trust may terminate with respect to a Plan (and the subaccount maintained
with respect to that Plan) if that Plan's Participants and Beneficiaries are no
longer entitled to benefits pursuant to the terms of that Plan, as certified in
writing by the Company (upon which certification the Trustee may conclusively
rely), in which case any assets remaining in that Plan's subaccount shall be
reallocated to the subaccount of one or more of the remaining Plans and the
applicable Participating Affiliated Company Account as directed by the Company.

         (c) Upon written approval of Participants or Beneficiaries entitled to
payment of benefits pursuant to the terms of the Plan, the Company may terminate
this Trust prior to the time all benefit payments under the Plan have been made.
Such approval shall be obtained and certified to in writing by the Company (upon
which certification the Trustee may conclusively rely), and the Trustee shall
have no responsibility therefor. All assets in the Trust at termination shall be
returned to the Company, Subsection 2(b) notwithstanding.

                                   SECTION 15
                                  MISCELLANEOUS

         (a) Neither the Company nor the Trustee may assign this Trust Agreement
without the prior written consent of the other, except that the Trustee may
assign its rights and delegate its duties hereunder to any corporation or entity
which directly or indirectly is controlled by, or is under common control with,
the Trustee. This Trust Agreement shall

                                       16
<PAGE>

be binding upon, and inure to the benefit of, the Company and the Trustee and
their respective successors and permitted assigns. Any entity which shall by
merger, consolidation, purchase, or otherwise, succeed to substantially all the
trust business of the Trustee shall, upon such succession and without any
appointment or other action by the Company, be and become successor trustee
hereunder, upon notification to the Company.

         (b) Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

         (c) Benefits payable to Plan Participants and their Beneficiaries under
this Trust Agreement may not be anticipated, assigned (either at law or in
equity), alienated, pledged, encumbered or subjected to attachment, garnishment,
levy, execution or other legal or equitable process.

         (d) Notwithstanding anything to the contrary contained elsewhere in
this Trust Agreement, any reference to the Plans or Plan provisions which
require knowledge or interpretation of the Plans shall impose a duty upon the
Company to communicate such knowledge or interpretation to the Trustee. The
Trustee shall have no obligation to know or interpret any portion of the Plan
and shall in no way be liable for any proper action taken contrary to the Plans.

         (e) This Trust Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania. The parties hereby
expressly waive, to the full extent permitted by applicable law, any right to
trial by jury with respect to any judicial proceeding arising from or related to
this Agreement.

         (f) Any action required to be taken by the Company shall be by
resolution of its Board of Directors or by written direction of one or more of
its president, any vice president or treasurer or anyone designated by such
person to act on behalf of the Company under this Trust Agreement. The Trustee
may rely upon a resolution or direction filed with the Trustee that is
contemplated by and in conformity with the terms of the Plans or this Trust and
shall have no responsibility for any action taken by the Trustee in accordance
with any such resolution or direction.

         (g) In making payments to service providers pursuant to authorized
directions, the Company acknowledges that the Trustee is acting as paying agent,
and not as the payor, for tax information reporting and withholding purposes.

         (h) Any notice to the Trustee or the Company required or permitted
under this Trust shall be duly and properly given an delivered if sent by
certified United States mail, return receipt requested, to the Trustee at:

                  Mellon Bank, N.A.
                  One Mellon Center
                  Pittsburgh, PA  15258-2001

and to the Company at:

                  DTE Energy Company
                  Attn: Vice President and Treasurer
                  2000 Second Avenue
                  Detroit, Michigan  48226

         (i) Each of the Company and the Trustee hereby represents and warrants
to the other that it has full authority to enter into this Agreement upon the
terms and conditions hereof and that the individual executing this Agreement on
its behalf has the requisite authority to bind it to this Agreement.

                                       17
<PAGE>

         IN WITNESS WHEREOF, the Company and the Trustee have executed this
Trust Agreement effective as of the date set forth above.

         DTE ENERGY COMPANY

         /s/David E. Meador

         Name:  David E. Meador
         Title: Sr. Vice President and Chief Financial Officer

Attest:

/s/Teresa M. Sebastian

(CORPORATE SEAL)

         The undersigned, Teresa M. Sebastian, does hereby certify that he/she
is the duly elected, qualified and acting Secretary of DTE Energy Company (the
"Company") and further certifies that the person whose signature appears above
is a duly elected, qualified and acting officer of the Company with full power
and authority to execute this Trust Agreement on behalf of the Company and to
take such other actions and execute such other documents as may be necessary to
effectuate this Agreement.

/s/Teresa M. Sebastian
Assistant Corporate Secretary
DTE Energy Company

         MELLON BANK, N.A.

         /s/Jerri L. Jones

         Name:  Jerri L. Jones
         Title: Assistant Vice President

Attest:

/s/Susan M. Simon

                                       18
<PAGE>

                                                                      APPENDIX A

                                   PRIOR PLANS

The Benefit Equalization Plan for Certain Employees of The Detroit Edison
Company

The Retirement Reparation Plan for Certain Employees of The Detroit Edison
Company

The Detroit Edison Company Savings Reparation Plan

The Detroit Edison Company Management Supplemental Benefit Plan

MCN Energy Group Supplemental Retirement Plan

MCN Energy Group Supplemental Savings Plan

MCN Energy Group Executive Deferred Compensation Plan

MCN Energy Group Supplemental Death and Retirement Income Plan

MCN Energy Group Excess Benefit Plan

DTE Energy Company Change-in-Control Severance Agreements

The Key Employee Deferred Compensation Plan

<PAGE>

                                                                      APPENDIX B

                    NON-QUALIFIED DEFERRED COMPENSATION PLANS
                             AS OF SEPTEMBER 1, 2002

DTE Energy Company Executive Supplemental Retirement Plan, effective
January 1, 2001

DTE Energy Company Supplemental Retirement Plan, effective January 1, 2002

DTE Energy Company Supplement Savings Plan, effective December 6, 2001

DTE Energy Company Executive Deferred Compensation Plan, effective
January 1, 2002

DTE Energy Company Executive Post-Employment Benefits Plan

<PAGE>

                                                                      APPENDIX C

                                  PRIOR TRUSTS

                                   TRUST NAME

The Detroit Edison Company Irrevocable Grant or Trust for The Detroit Edison
Company Benefit Equalization Plan, restated effective January 1, 1996

The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison
Company Retirement Reparation Plan, restated effective January 1, 1996

The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison
Company Savings Reparation Plan, restated effective January 1, 1996

The Detroit Edison Company Irrevocable Grantor Trust for The Detroit Edison
Company Management Supplemental Benefit Plan, restated effective January 1, 1996

Trust Agreement for DTE Energy Company Change-in-Control Severance Agreements,
effective October 1, 1997

Michigan Consolidated Gas Company Rabbi Trust (correct name to be obtained)<PAGE>

                                                                   Exhibit 4-233

                                                                  EXECUTION COPY

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

                           THE DETROIT EDISON COMPANY
                                       AND
                  BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION
                                     TRUSTEE

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

                         ELEVENTH SUPPLEMENTAL INDENTURE

                          DATED AS OF DECEMBER 1, 2002

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

                  SUPPLEMENTING THE COLLATERAL TRUST INDENTURE
                            DATED AS OF JUNE 30,1993
                                  PROVIDING FOR
                           5.45% SENIOR NOTES DUE 2032
                           5.25% SENIOR NOTES DUE 2032

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

<PAGE>

     SUPPLEMENTAL INDENTURE, dated as of the 1st day of December, 2002, between
THE DETROIT EDISON COMPANY, a corporation organized and existing under the laws
of the State of Michigan (the "Company"), and BANK ONE TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association organized under the laws of the
United States of America, having its principal office in The City of Columbus,
Ohio, as trustee (the "Trustee");

     WHEREAS, the Company has heretofore executed and delivered to the Trustee a
Collateral Trust Indenture dated as of June 30, 1993 (the "Original Indenture"),
as supplemented, providing for the issuance by the Company from time to time of
its debt securities; and

     WHEREAS, the Company now desires to provide for the issuance of two
additional series of its senior debt securities pursuant to the Original
Indenture to secure its obligations to XL Capital Assurance Inc., an insurance
company incorporated under the laws of the State of New York ("XLCA"), under (i)
that certain Insurance Agreement dated December 5, 2002 (the "2002C Insurance
Agreement") between the Company and XLCA relating to the financial guaranty
insurance policy, No. CA00403A, issued by XLCA with respect to the Michigan
Strategic Fund Limited Obligation Revenue and Refunding Revenue Bonds (The
Detroit Edison Company Exempt Facilities Project), Series 2002C (AMT) (the
"2002C Bonds") and (ii) that certain Insurance Agreement dated December 5, 2002
(the "2002D Insurance Agreement") between the Company and XLCA relating to the
financial guaranty insurance policy, No. CA00403B, issued by XLCA with respect
to the Michigan Strategic Fund Limited Obligation Revenue and Refunding Revenue
Bonds (The Detroit Edison Company Exempt Facilities Project), Series 2002D
(Non-AMT) (the "2002D Bonds"); and

     WHEREAS, the Company intends hereby to designate series of debt securities
which shall have the benefit of the provisions of Article Four of the Original
Indenture and the other related provisions of the Original Indenture relating to
the grant of security, subject to the release provisions provided for herein,
and which shall have the terms and variations from the provisions of the
Original Indenture as set forth herein; and

     WHEREAS, the Company, in the exercise of the power and authority conferred
upon and reserved to it under the provisions of the Original Indenture,
including Section 1001 thereof, and pursuant to appropriate resolutions of the
Board of Directors, has duly determined to make, execute and deliver to the
Trustee this Eleventh Supplemental Indenture to the Original Indenture as
permitted by Sections 201 and 301 of the Original Indenture in order to
establish the form or terms of, and to provide for the creation and issue of,
series of its debt securities under the Original Indenture, which shall be known
as the 5.45% Senior Notes due 2032 and the 5.25% Senior Notes due 2032,
respectively; and

     WHEREAS, all things necessary to make such debt securities, when executed
by the Company and authenticated and delivered by the Trustee or any
Authenticating Agent and issued upon the terms and subject to the conditions
hereinafter and in the Original Indenture set forth against payment therefor,
the valid, binding and legal obligations of the Company and to make this
Supplemental Indenture a valid, binding and legal agreement of the Company, have
been done;

     NOW, THEREFORE, THIS ELEVENTH SUPPLEMENTAL INDENTURE WITNESSETH that, in
order to establish the terms of series of debt securities, and for and in
consideration of the premises and of the covenants contained in the Original
Indenture and in this Eleventh Supplemental Indenture and for other good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, it is mutually covenanted and agreed as follows:

<PAGE>

                                   ARTICLE ONE

                              DEFINITIONS AND OTHER
                        PROVISIONS OF GENERAL APPLICATION

     SECTION 1.01. Definitions. Each capitalized term that is used herein and is
defined in the Original Indenture shall have the meaning specified in the
Original Indenture unless such term is otherwise defined herein. The following
terms shall have the respective meanings set forth below:

     "Bond Indenture" means either the 2002C Bond Indenture or the 2002D Bond
Indenture, as applicable.

     "Bond Trustee" means Bank One Trust Company, National Association, as
trustee under the 2002C Bond Indenture or the 2002D Bond Indenture, as
applicable.

     "Business Day" means any day other than a day on which banking institutions
in The State of New York or the State of Michigan are authorized or obligated
pursuant to law or executive order to close.

     "Capitalization" means the total of all the following items appearing on,
or included in, the consolidated balance sheet of the Company: (i) liabilities
for indebtedness maturing more than 12 months from the date of determination;
and (ii) common stock, common stock expense, accumulated other comprehensive
income or loss, preferred stock, preference stock, premium on capital stock and
retained earnings (however the foregoing may be designated), less, to the extent
not otherwise deducted, the cost of shares of capital stock of the Company held
in its treasury, if any. Subject to the foregoing, Capitalization shall be
determined in accordance with generally accepted accounting principles and
practices applicable to the type of business in which the Company is engaged and
approved by the independent accountants regularly retained by the Company, and
may be determined as of a date not more than 60 days prior to the happening of
the event for which the determination is being made.

     "Debt" means any outstanding debt for money borrowed evidenced by notes,
debentures, bonds or other securities, or guarantees of any debt.

     "Net Tangible Assets" means the amount shown as total assets on the
consolidated balance sheet of the Company, less (i) intangible assets including,
but without limitation, such items as goodwill, trademarks, trade names,
patents, unamortized debt discount and expense and other regulatory assets
carried as an asset on the Company's consolidated balance sheet, and (ii)
appropriate adjustments, if any, on account of minority interests. Net Tangible
Assets shall be determined in accordance with generally accepted accounting
principles and practices applicable to the type of business in which the Company
is engaged and approved by the independent accountants regularly retained by the
Company, and may be determined as of a date not more than 60 days prior to the
happening of the event for which such determination is being made.

     "Operating Property" means (i) any interest in real property owned by the
Company and (ii) any asset owned by the Company that is depreciable in
accordance with generally accepted accounting principles, excluding, in either
case, any interest of the Company as lessee under any lease (except for a lease
that results from a Sale and Lease-Back Transaction) that has been or

                                       2

<PAGE>

would be capitalized on the books of the lessee in accordance with generally
accepted accounting principles.

     "Pledged Bonds" means the related series of Bonds and any other Mortgage
Bonds issued to secure Securities subject to the release provisions provided
herein or in any other supplemental indenture to the Original Indenture.

     "Release Date" means the date as of which all Mortgage Bonds, (i) other
than the Pledged Bonds, including the related series of Bonds, and (ii) other
than outstanding Mortgage Bonds (exclusive of Pledged Bonds), which do not in
aggregate principal amount exceed the greater of 5% of the Net Tangible Assets
of the Company or 5% of the Capitalization of the Company, have been retired
through payment, redemption or otherwise, provided that no default or Event of
Default has occurred and, at such time, is continuing under the Original
Indenture.

     "Sale and Lease-Back Transaction" means any arrangement with any person
providing for the leasing to the Company of any Operating Property (except for
leases for a term, including any renewal or potential renewal, of not more than
48 months), which Operating Property has been or is to be sold or transferred by
the Company to the person; provided, however, Sale and Lease-Back Transaction
shall not include any arrangement first entered into prior to the date hereof
and shall not include any transaction pursuant to which the Company sells
Operating Property to, and thereafter purchase energy or services from, any
entity, which transaction is ordered or authorized by any regulatory authority
having jurisdiction over the Company or its operations or is entered into
pursuant to any plan or program of industry restructuring ordered or authorized
by any such regulatory authority.

     "Substitute Mortgage" means a mortgage indenture of the Company, other than
the Mortgage, designated by the Company to the Trustee as a Substitute Mortgage
pursuant to Section 4.03 hereof.

     "Substitute Mortgage Bonds" means any mortgage bonds issued by the Company
under a Substitute Mortgage and delivered to the Trustee pursuant to Section
4.03 hereof or pursuant to the comparable provision of any other supplemental
indenture relating to Securities subject to the release provisions.

     "2002C Bond Indenture" means the Trust Indenture dated as of December 1,
2002 between Michigan Strategic Fund and the Bond Trustee relating to the 2002C
Bonds.

     "2002D Bond Indenture" means the Trust Indenture dated as of December 1,
2002 between Michigan Strategic Fund and the Bond Trustee relating to the 2002D
Bonds.

     "Value" means, with respect to a Sale and Lease-Back Transaction, as of any
particular time, the amount equal to the greater of (i) the net proceeds to the
Company from the sale or transfer of the property leased pursuant to the Sale
and Lease-Back Transaction or (ii) the net book value of the property, as
determined by the Company in accordance with generally accepted accounting
principles at the time of entering into the Sale and Lease-Back transaction, in
either case multiplied by a fraction, the numerator of which shall be equal to
the number of full years of the term of the lease that is part of the Sale and
Lease-Back Transaction remaining at the time of determination and the
denominator of which shall be equal to the number of full years of the term,
without regard, in any case, to any renewal or extension options contained in
the lease.

                                       3

<PAGE>

     SECTION 1.02. Section References. Each reference to a particular section
set forth in this Supplemental Indenture shall, unless the context otherwise
requires, refer to this Supplemental Indenture.

                                   ARTICLE TWO

                        TITLE AND TERMS OF THE SECURITIES

     SECTION 2.01. Title of the Securities; Stated Maturity. This Supplemental
Indenture hereby establishes two separate series of Securities, which shall be
known as the Company's "5.45% Senior Notes due 2032" (the "5.45% Notes"), and
the "5.25% Senior Notes due 2032" (the "5.25% Notes" and together with the 5.45%
Notes, the "Notes"). For purposes of the Original Indenture, each series of the
Notes shall separately constitute a single series of Securities. The Stated
Maturity on which the principal of the 5.45% Notes shall be due and payable will
be December 15, 2032. The Stated Maturity on which the principal of the 5.25%
Notes shall be due and payable will be December 15, 2032. The 5.45% Notes are
being issued to secure the Company's obligations to XLCA under the 2002C
Insurance Agreement and the 5.25% Notes are being issued to secure the Company's
obligations to XLCA under the 2002D Insurance Agreement.

     SECTION 2.02. Certain Variations from the Original Indenture. (a) The Notes
shall have the benefit of the provisions of the Original Indenture including
(for avoidance of doubt and not for purposes of limitation) the Granting Clause,
the definitions of "Deliverable Mortgage Bonds," "Deliverable Securities,"
"Designated Mortgage Bonds," "Grant," "Mortgage," "Mortgage Bonds," "Mortgage
Trustee," "Previously Delivered Mortgage Bonds," and "Trust Estate," Section 301
(20), Section 301 (a), Sections 301 (b), Section 301 (d), and Article VI,
subject, in each case, to the release provisions provided for in Section 4.02
herein. In addition, on and after the Release Date, unless Substitute Mortgage
Bonds are issued to secure the Notes, the Notes shall have the benefit of the
additional covenants set forth in Article Three hereof.

     (b)   In the event the Company desires to provide for the payment of 5.45%
Senior Notes, in lieu of defeasing such Notes in accordance with Section 5.03 of
the Original Indenture, it shall either redeem an equal principal amount of the
2002C Bonds or take such action as shall be required by Section 2.04 of the
2002C Bond Indenture to defease an equal principal amount of the 2002C Bonds.
Pursuant to Section 2.03(c) hereof, such redemption or defeasance shall result
in the discharge of the Company's obligation with respect to such 5.45% Senior
Notes and the cancellation of such 5.45% Senior Notes.

     (c)   In the event the Company desires to provide for the payment of 5.25%
Senior Notes, in lieu of defeasing such Notes in accordance with Section 5.03 of
the Original Indenture, it shall either redeem an equal principal amount of the
2002D Bonds or take such action as shall be required by Section 2.04 of the
2002D Bond Indenture to defease an equal principal amount of the 2002D Bonds.
Pursuant to Section 2.03(c) hereof, such redemption or defeasance shall result
in the discharge of the Company's obligation with respect to such 5.25% Senior
Notes and the cancellation of such 5.25% Senior Notes.

     (d)   Any amount payable by the Company in respect of principal of 5.45%
Senior Notes whether at maturity or prior to maturity by redemption or upon
redemption or acceleration or otherwise, in a circumstance where there has not
been a corresponding payment of principal of 2002C Bonds shall be applied
simultaneously to the redemption or defeasance of any equal

                                       4

<PAGE>

principal amount of 2002C Bonds in accordance with the 2002C Bond Indenture. In
the event the amount so paid is insufficient to provide for such redemption or
defeasance, the Company shall pay such additional amounts as shall be necessary
to make up the deficiency.

     (e)   Any amount payable by the Company in respect of principal of 5.25%
Senior Notes whether at maturity or prior to maturity by redemption or upon
redemption or acceleration or otherwise, in a circumstance where there has not
been a corresponding payment of principal of 2002 D Bonds shall be applied
simultaneously to the redemption or defeasance of any equal principal amount of
2002D Bonds in accordance with the 2002D Bond Indenture. In the event the amount
so paid is insufficient to provide for such redemption or defeasance, the
Company shall pay such additional amounts as shall be necessary to make up the
deficiency

     SECTION 2.03. Amount, Assignability and Redemption.

     (a)   The aggregate principal amount of Notes that may be issued under this
Supplemental Indenture is limited to $64,300,000 in the case of the 5.45% Notes
and $55,975,000 in the case of the 5.25% Notes (except, in each case, as
provided in Section 301(2) of the Original Indenture). The Notes shall be
issuable only in fully registered form and, as permitted by Section 301 and
Section 302 of the Original Indenture, in denominations of $1,000 and integral
multiples thereof to XLCA. The Notes shall not be assignable or transferable
except as may be required to effect a transfer to any successor insurer for the
2002C Bonds or the 2002D Bonds, as the case may be.

     (b)   The Notes may bear such legends as may be necessary to refer to the
2002C Insurance Agreement or 2002D Insurance Agreement, as the case may be,
between the Company and XLCA or to comply with any law or with any rules or
regulations made pursuant thereto or to evidence the limited assignability.

     (c)   Upon payment of the principal or premium, if any, or interest on the
2002C Bonds or the 2002D Bonds, as the case may be, whether at maturity or prior
to maturity by redemption or otherwise, or upon provision for the payment
thereof having been made in accordance with Article I or IV of the 2002C Bond
Indenture or the 2002D Bond Indenture, with respect to the 2002C Bonds or the
2002D Bonds, as the case may be, Notes in a principal amount equal to the
principal amount of the related Bonds shall, to the extent of such payment of
principal, premium or interest, be deemed fully paid and the obligation of the
Company thereunder to make such payment shall forthwith cease and be discharged,
and, in the case of the payment of principal and premium, if any, such Notes
shall be surrendered for cancellation or presented for appropriate notation to
the Trustee.

     (d)   The Notes shall be redeemed on the dates and in the respective
principal amounts which correspond to the redemption date for, and the principal
amount to be redeemed of, the 2002C Bonds or the 2002D Bonds, as the case may
be.

     (e)   In the event of an Event of Default under a Bond Indenture and the
acceleration of the 2002C Bonds or the 2002D Bonds, as the case may be, the
related Notes shall be redeemable in whole upon receipt by the Trustee of a
written demand (Redemption Demand) from XLCA indicating that it has paid the
accelerated principal.

     SECTION 2.04. Certain Common Terms of the Notes.

                                       5

<PAGE>

     (a)   The 5.45% Notes shall bear interest at the rate of 5.45% per annum,
and the 5.25% Notes shall bear interest at the rate of 5.25% per annum, in each
case on the respective principal amount thereof, from December 5, 2002, or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, until the principal of such series of Notes becomes due and
payable, and on any overdue principal and premium and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at the same rate per annum during such overdue period.
Interest on the Notes will be payable semiannually in arrears on June 15 and
December 15 of each year (each such date, an "Interest Payment Date"),
commencing June 15, 2003. Payment of interest on the 2002C Bonds and the 2002D
Bonds shall be deemed to constitute payment on the related series of Notes. The
amount of interest payable for any period shall be computed on the basis of
twelve 30-day months and a 360-day year.

     (b)   In the event that any Interest Payment Date, redemption date or other
date of Maturity of the Notes is not a Business Day, then payment of the amount
payable on such date will be made on the next succeeding day which is a Business
Day (and without any interest or other payment in respect of any such delay), in
each case with the same force and effect as if made on such date. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date with respect to any Note will, as provided in the Original
Indenture, be paid to the person in whose name the Note (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the close
of business on the relevant record date for such interest installment, which
shall be the fifteenth calendar day (whether or not a Business Day) prior to the
relevant Interest Payment Date (the "Regular Record Date"). Any such interest
installment not punctually paid or duly provided for shall forthwith cease to be
payable to the registered Holders on such Regular Record Date, and may either be
paid to the person in whose name the Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date to
be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered Holders of the applicable series of
Notes not less than ten days prior to such Special Record Date, or may be paid
at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the Original
Indenture. The principal of, and premium, if any, and the interest on the Notes
shall be payable at the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, The City of New York, in any coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
registered Holder at the close of business on the Regular Record Date at such
address as shall appear in the Security Register.

     (c)   The Notes are not subject to repayment at the option of the Holders
thereof and are not subject to any sinking fund, except to the extent that XLCA,
or its successor in interest, may have exercised its rights pursuant to Section
2.03 hereof. As provided in the forms of Note attached hereto as Exhibit A and
Exhibit B, respectively, the Notes are subject to optional redemption, as a
whole or in part, by the Company prior to Stated Maturity of the principal
thereof upon the same terms as the 2002C Bonds and the 2002D Bonds, as the case
may be. Except as modified in the forms of the Notes, redemptions shall be
effected in accordance with Article Twelve of the Original Indenture.

     (d)   The Notes shall have such other terms and provisions as are set forth
in the form of Note attached hereto as Exhibit A and Exhibit B, as applicable
(each of which are incorporated by reference in and made a part of this
Supplemental Indenture as if set forth in full at this place).

                                       6

<PAGE>

     SECTION 2.05. Form of Notes. Attached hereto as Exhibit A is the form of
the definitive 5.45% Notes. Attached hereto as Exhibit B is the form of the
definitive 5.25% Notes. If the Company elects to have the Notes secured by
Substitute Mortgage Bonds on and after the Release Date, the terms of the Notes
shall be amended to make appropriate reference to the Substitute Mortgage and
the Substitute Mortgage Bonds; provided, that the consent of Holders shall not
be required in connection with such amendment.

                                  ARTICLE THREE

                              ADDITIONAL COVENANTS

     SECTION 3.01. Limitations on Liens. (a) From and after the Release Date,
unless Substitute Mortgage Bonds are issued to secure the Notes, so long as any
Notes are outstanding, the Company may not issue, assume, guarantee (including
any contingent obligation to purchase) or permit to exist any Debt that is
secured by any mortgage, security interest, pledge or lien ("Lien") of or upon
any Operating Property owned by the Company, whether owned at the Release Date
or subsequently acquired, without effectively securing the Notes (together with,
if the Company shall so determine, any other indebtedness of the Company ranking
equally with the Notes) equally and ratably with the Debt (but only so long as
the Debt is so secured).

     The foregoing restriction will not apply to:

     (i)   Liens on any Operating Property existing at the time of its
           acquisition and not created in contemplation of the acquisition;

     (ii)  Liens on Operating Property of a corporation existing at the time the
           corporation is merged into or consolidated with the Company, or at
           the time the corporation disposes of substantially all of its
           properties (or those of a division) to the Company, provided that the
           Lien is not extended to property owned by the Company immediately
           prior to the merger, consolidation or other disposition and is not
           created in contemplation of the merger, consolidation or other
           disposition;

     (iii) Liens on Operating Property to secure the cost of acquisition,
           construction, development or substantial repair, alteration or
           improvement of such property or to secure indebtedness incurred to
           provide funds for any of these purposes or for reimbursement of funds
           previously expended for any of these purposes, provided the Liens are
           created or assumed contemporaneously with, or within 18 months after,
           the acquisition or the completion of substantial repair or
           alteration, construction, development or substantial improvement or
           within 6 months thereafter pursuant to a commitment for financing
           arranged with a lender or investor within such 18-month period;

     (iv)  Liens in favor of the United States or any state or any department,
           agency or instrumentality or political subdivision of the United
           States or any state, or for the benefit of holders of securities
           issued by any of these entities, to secure any Debt incurred for the
           purpose of financing all or any part of the purchase price or the
           cost of substantially repairing or altering, constructing, developing
           or substantially improving the Operating Property of the Company; or

     (v)   Any extension, renewal or replacement (or successive extensions,
           renewals or replacements), in whole or in part, of any Lien referred
           to in the exceptions listed above,

                                       7

<PAGE>

          provided, however, that the principal amount of Debt secured thereby
          and not otherwise authorized by those exceptions listed above shall
          not exceed the principal amount of Debt, plus any premium or fee
          payable in connection with any such extension, renewal or replacement,
          so secured at the time of such extension, renewal or replacement.

     (b)  In addition, notwithstanding the foregoing restrictions, from and
after the Release Date, the Company may issue, assume or guarantee Debt secured
by a Lien which would otherwise be subject to the foregoing restrictions up to
an aggregate amount which, together with all other of the Company's secured Debt
(not including secured Debt permitted under any of the foregoing exceptions) and
the Value of Sale and Lease-Back Transactions existing at such time (other than
Sale and Lease-Back Transactions the proceeds of which have been applied to the
retirement of certain indebtedness, Sale and Lease-Back Transactions in which
the property involved would have been permitted to be subjected to a Lien under
any of the foregoing exceptions, and Sale and Lease-Back Transactions that are
permitted by the first sentence of Section 3.02 below), does not exceed the
greater of 10% of the Company's Net Tangible Assets or 10% of the Company's
Capitalization. The foregoing restrictions do not limit the Company's ability to
place Liens on (i) the capital stock of any of the Company's subsidiaries or
(ii) the assets of any of the Company's subsidiaries.

     SECTION 3.02. Limitations on Sale and Lease-Back Transactions. So long as
the Notes are outstanding from and after the Release Date, unless Substitute
Mortgage Bonds are issued to secure the Notes, the Company may not enter into or
permit to exist any Sale and Lease-Back Transaction with respect to any
Operating Property (except for leases for a term, including any renewal or
potential renewal, of not more than 48 months), if the purchaser's commitment is
obtained more than 18 months after the later of the completion of the
acquisition, construction or development of the Operating Property or the
placing in operation of the Operating Property or of the Operating Property as
constructed or developed or substantially repaired, altered or improved. This
restriction will not apply if (a) the Company would be entitled pursuant to
Section 3.01(a) above to issue, assume, guarantee or permit to exist Debt
secured by a Lien on the Operating Property without equally and ratably securing
the Notes, (b) after giving effect to the Sale and Lease-Back Transaction,
pursuant to Section 3.01(b) above, the Company could incur, at least $1.00 of
additional Debt secured by Liens (other than Liens permitted by clause (a)), or
(c) the Company applies within 180 days an amount equal to, in the case of a
sale or transfer for cash, the net proceeds (not less than the fair value of the
Operating Property so leased), and, otherwise, an amount equal to the fair value
(as determined by the Board of Directors of the Company) of the Operating
Property so leased to the retirement of Notes or other Debt of the Company
ranking equally with the Notes; provided, however, that any such retirement of
Notes shall be in accordance with the terms and provisions of the Indenture and
the Notes; provided, further, that the amount to be applied to such retirement
of Notes or other Debt shall be reduced by an amount equal to the sum of (a) an
amount equal to the redemption price with respect to Notes delivered within such
one hundred eighty (180)-day period to the Trustee for retirement and
cancellation and (b) the principal amount, plus any premium or fee paid in
connection with any redemption in accordance with the terms of other Debt
voluntarily retired by the Company within such one hundred eighty (180)-day
period, excluding in each case retirements pursuant to mandatory sinking fund or
prepayment provisions and payments at maturity.

     SECTION 3.03. Waiver. Section 1109 of the Original Indenture shall apply to
the covenants set forth in Sections 3.01 and 3.02 above at any time such
covenants are in effect.

                                       8

<PAGE>

                                  ARTICLE FOUR

                         SECURITY AND RELEASE PROVISIONS

     SECTION 4.01. Security. Subject to Section 4.02 below, as provided in and
pursuant to Article Four of the Original Indenture, each series of the Notes
will be secured as to payments of principal, interest and premium, if any, by a
series of Mortgage Bonds (the "General and Refunding Mortgage Bonds, 2002 Series
C", in the case of the 5.45% Notes, and the "General and Refunding Mortgage
Bonds, 2002 Series D", in the case of the 5.25% Notes, or, singly or
collectively, the "Bonds," the "Bonds of the related series" or the "related
series of Bonds") of the Company to be issued concurrently with the issuance of
the Notes under and secured by a Mortgage and Deed of Trust, dated as of October
1, 1924, between the Company and Bank One, National Association, as successor
trustee (the "Mortgage Trustee"), as amended and supplemented by various
supplemental indentures, including the supplemental indenture, dated as of
December 1, 2002, creating the Bonds (collectively, the "Mortgage"), pledged by
the Company for the benefit of the Holders of the respective series of Notes to
the Trustee under this Supplemental Indenture. The Bonds shall be issued in an
aggregate principal amount equal to the aggregate principal amount of the Notes.

     SECTION 4.02. Release. Until the Release Date and subject to Article Four
of the Original Indenture, the Bonds of the related series issued and delivered
to the Trustee shall serve as security for any and all obligations of the
Company under all Notes of the applicable series from time to time Outstanding,
including, but not limited to (1) the full and prompt payment of the principal
and premium, if any, on such Notes when and as the same shall become due and
payable in accordance with the terms and provisions of the Indenture or such
Notes, either at the Stated Maturity thereof, upon acceleration of the maturity
thereof, upon redemption, or otherwise, and (2) the full and prompt payment of
any interest on such Notes when and as the same shall become due and payable in
accordance with the terms and provisions of this Indenture or the Notes
including, if and to the extent provided for in such Notes, interest on overdue
installments of principal and (to the extent permitted by law) interest on
overdue installments of interest.

     Each supplemental indenture to the Mortgage pursuant to which any Bonds are
issued shall contain a provision to the effect that any payment by the Company
hereunder of principal of or premium or interest on Notes which shall have been
authenticated and delivered in connection with the issuance and delivery to the
Trustee of such Bonds (other than by the application of the proceeds of a
payment in respect of such Bonds) shall to the extent thereof, be deemed to
satisfy and discharge the obligation of the Company, if any, to make a payment
of principal, premium or interest, as the case may be, in respect of such Bonds
which is then due.

     Notwithstanding anything in the Original Indenture to the contrary, from
and after the Release Date, the obligation of the Company to make payment with
respect to the principal of and premium, if any, and interest on the Bonds shall
be deemed satisfied and discharged as provided in the supplemental indenture or
indentures to the Mortgage creating such Bonds and the Bonds shall cease to
secure in any manner Notes theretofore or subsequently issued; the Trustee shall
thereupon surrender the Bonds to the Mortgage Trustee for cancellation and
execute and deliver such proper instruments of release as may be required. From
and after the Release Date, all Notes, whether theretofore or subsequently
issued, shall, at the Company's option, either (i) become unsecured or (ii) be
secured by Substitute Mortgage Bonds pursuant to Section 4.03 below, and any
conditions to the issuance of Notes that refer or relate to Bonds or the
Mortgage shall be

                                        9

<PAGE>

inapplicable (except as such conditions shall be deemed to refer to Substitute
Mortgage Bonds or a Substitute Mortgage pursuant to Section 4.03 below). From
and after the Release Date, the Company shall not issue any additional Mortgage
Bonds, including Pledged Bonds, under the Mortgage. Notice of the occurrence of
the Release Date shall be given by the Trustee to the Holders of the Notes in
the manner provided for in the Original Indenture not later than 30 days after
the Company notifies the Trustee of the occurrence of the Release Date.

     In connection with the establishment of the occurrence of the Release Date,
the Trustee shall be entitled to receive, may presume the correctness of, and
shall be fully protected in relying upon, an Officers' Certificate designating
the Release Date and stating that the conditions to the occurrence of the
Release Date have been satisfied.

     When the obligation of the Company to make payments with respect to the
principal of, and premium, if any, and interest on all or any part of the Bonds
shall be satisfied or deemed satisfied pursuant to the Original Indenture or
pursuant to this Supplemental Indenture, the Trustee shall, upon written request
of the Company, deliver to the Company without charge therefor all of the Bonds
so satisfied or deemed satisfied, together with such appropriate instruments of
transfer or release as may be reasonably requested by the Company. All Bonds
delivered to the Company in accordance with this Section shall be delivered by
the Company to the Mortgage Trustee for cancellation.

     SECTION 4.03. Substitute Mortgage Bonds.

     (a)   The Company shall notify the Trustee not less than 90 days prior to
the Release Date (or such shorter period as the Company and the Trustee may
agree) that the Company has determined to deliver to the Trustee on the Release
Date Substitute Mortgage Bonds in an aggregate principal amount equal to the
aggregate principal amount of Notes and any other Securities subject to the
release provisions Outstanding on the Release Date, in trust for the benefit of
the Holders from time to time of the Notes and any other Securities subject to
the release provisions issued under the Original Indenture, as supplemented, as
security for any and all obligations of the Company under the Notes and any
other Securities subject to the release provisions, including but not limited
to, (1) the full and prompt payment of the principal of and premium, if any, on
the Notes and any other Securities subject to the release provisions when and as
the same shall become due and payable in accordance with the terms and
provisions of the Original Indenture, as supplemented, or the Notes or such
other Securities subject to the release provisions, either at the stated
maturity thereof, upon acceleration of the maturity thereof or upon redemption,
and (2) the full and prompt payment of any interest on the Notes and any other
Securities subject to the release provisions when and as the same shall become
due and payable in accordance with the terms and provisions of the Original
Indenture, as supplemented, or the Notes or such other Securities subject to the
release provisions.

     (b)   The Substitute Mortgage Bonds to be delivered pursuant to the notice
described in Section 4.03(a) shall be delivered in separate series and issues
corresponding to the series and issues of Notes and other Securities subject to
the release provisions Outstanding on the Release Date, each series or issue of
Substitute Mortgage Bonds having the same stated rate or rates of interest (or
interest calculated in the same manner), Interest Payment Dates, stated maturity
date and redemption provisions, and in the same aggregate principal amount, as
the related series or issue of Notes or other Securities subject to the release
provisions outstanding on the Release Date. The Company shall enter into a
Substitute Mortgage for the issuance of Substitute Mortgage Bonds, and designate
it as such in the notice.

                                       10

<PAGE>

     (c)   The notice described in Section 4.03(a) shall also state that on the
Release Date the Company shall deliver to the Trustee a supplemental indenture
to the Original Indenture that will provide, among other things, that upon the
issuance of Notes and other Securities subject to the release provisions on or
after the Release Date, the Company shall deliver to the Trustee in trust for
the benefit of the Holders as described in Section 4.03(a) hereof, and the
Trustee shall accept therefor, related series of Substitute Mortgage Bonds
registered in the name of the Trustee and conforming to the requirements therein
specified.

     (d)   The determination whether to deliver Substitute Mortgage Bonds shall
be made in the Company's sole discretion and without any obligation to do so.

     (e)   In the event that the Company does not deliver the notice described
in Section 4.03(a), the Notes and other Securities subject to the release
provisions Outstanding on the Release Date shall, as of the Release Date, no
longer be entitled to the benefit of the pledge of the Pledged Bonds and shall
thereafter be general unsecured obligations of the Company.

     (f)   Article Four and related provisions of the Original Indenture shall
apply to Substitute Mortgage Bonds pledged to the Trustee hereunder and the
provisions thereof shall be deemed to refer to the Substitute Mortgage and the
Substitute Mortgage Bonds. If the Company elects to have the Notes secured by
Substitute Mortgage Bonds on and after the Release Date, Article Four and
related provisions may be amended to make appropriate reference to the
Substitute Mortgage and the Substitute Mortgage Bonds; provided, that the
consent of Holders shall not be required in connection with such amendment.

     SECTION 4.04. Events of Default.

     (a)   On and after the Release Date, Section 601(8) of the Original
Indenture shall no longer apply to the Notes.

     (b)   On and after the Release Date, if the Notes become secured by
Substitute Mortgage Bonds pursuant to Section 4.03 above, the occurrence of a
"default" (as defined in the Substitute Mortgage) shall constitute an Event of
Default under Section 601 of the Original Indenture with respect to the Notes
and the references in Section 601(4) of the Original Indenture and related
provisions to "Mortgage Bonds" shall be deemed to refer to "Substitute Mortgage
Bonds."

                                  ARTICLE FIVE

                            MISCELLANEOUS PROVISIONS

     The Trustee makes no undertaking or representations in respect of, and
shall not be responsible in any manner whatsoever for and in respect of, the
validity or sufficiency of this Tenth Supplemental Indenture or the proper
authorization or the due execution hereof by the Company or for or in respect of
the recitals and statements contained herein, all of which recitals and
statements are made solely by the Company.

     Except as expressly amended hereby and by the supplemental indenture
appointing the Trustee as successor trustee, the Original Indenture shall
continue in full force and effect in accordance with the provisions thereof and
the Original Indenture is in all respects hereby ratified and

                                       11

<PAGE>

confirmed. This Tenth Supplemental Indenture and all its provisions shall be
deemed a part of the Original Indenture in the manner and to the extent herein
and therein provided.

     This Eleventh Supplemental Indenture and the Notes shall be governed by,
and construed in accordance with, the laws of the State of New York.

     This Eleventh Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.

                                       12

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Eleventh
Supplemental Indenture to be duly executed and attested, all as of the day and
year first above written.

                                             THE DETROIT EDISON COMPANY
                                             By:
                                                Name:
                                                Title:

ATTEST:
By:
   Name:
   Title

                                             BANK ONE TRUST COMPANY,
                                             NATIONAL ASSOCIATION, as Trustee
                                             By:
                                                Name
                                                Title:

ATTEST:
By:
   Name:
   Title:

                                       13

<PAGE>

                                                                       EXHIBIT A

     THIS NOTE IS BEING ISSUED TO XL CAPITAL ASSURANCE INC., AN INSURANCE
COMPANY INCORPORATED UNDER THE LAWS OF THE STATE OF NEW YORK ("XLCA"), TO SECURE
THE OBLIGATIONS OF THE DETROIT EDISON COMPANY (THE "COMPANY") TO XLCA UNDER THAT
CERTAIN INSURANCE AGREEMENT DATED AS OF DECEMBER 5, 2002 BETWEEN THE COMPANY AND
XLCA REFERRED TO HEREIN. THIS NOTE IS NOT TRANSFERABLE OR ASSIGNABLE EXCEPT AS
MAY BE REQUIRED TO EFFECT A TRANSFER TO A SUCCESSOR INSURER OF THE MICHIGAN
STRATEGIC FUND LIMITED OBLIGATION REVENUE AND REFUNDING REVENUE BONDS (THE
DETROIT EDISON COMPANY EXEMPT FACILITIES PROJECT), SERIES 2002C (AMT).

NO. R-1                                                        $64,300,000

                           THE DETROIT EDISON COMPANY

                           5.45% SENIOR NOTES DUE 2032

Principal Amount: $64,300,000

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not
a Business Day) prior to the relevant Interest Payment Date

Original Issue Date: December 5, 2002

Stated Maturity: December 15, 2032

Interest Payment Dates: June 15 and December 15 of each year, commencing June
15, 2003

Interest Rate: 5.45% per annum

     THE DETROIT EDISON COMPANY, a corporation duly organized and existing under
the laws of the State of Michigan (the "Company", which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to XLCA Capital Inc. or registered assigns, at
the office or agency of the Company in The City of New York, New York, the
principal sum of Sixty-Four Million Three Hundred Thousand Dollars ($64,300,000)
on December 15, 2032 (the "Stated Maturity"), in the coin or currency of the
United States, and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually in arrears on each Interest Payment
Date as specified above, commencing on June 15, 2003, and on the Stated Maturity
at the rate per annum shown above (the "Interest Rate") until the principal
hereof is paid or made available for payment and on any overdue principal and
premium and on any overdue installment of interest. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one
or more Predecessor Securities) is registered on the Regular Record Date as
specified above next preceding such Interest Payment Date. This note is being
issued to XL Capital Assurance Inc., an insurance company incorporated under New
York

                                       14

<PAGE>

law ("XLCA"), to secure the Company's obligations to XLCA under that certain
Insurance Agreement dated as of December 5, 2002 (the "Insurance Agreement")
between the Company and XLCA relating to Financial Guaranty Insurance Policy No.
CA00403A issued by XLCA with respect to the Michigan Strategic Fund Limited
Obligation Revenue and Refunding Revenue Bonds (the Detroit Edison Company
Exempt Facilities Project), Series 2002C (AMT) (the "2002C Bonds"), which are
issued under the Trust Indenture dated as of December 1, 2002 (the "2002C Bond
Indenture") between Michigan Strategic Fund and Bank One Trust Company, National
Association, as trustee. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Note is registered at the close of business on a
Special Record Date for the payment of such defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Notes of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Notes of this series shall be listed,
and upon such notice as may be required by any such exchange, all as more fully
provided in the Indenture.

     Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. The Company shall pay interest on overdue principal and premium, if any,
and, to the extent lawful, on overdue installments of interest at the rate per
annum borne by this Note. In the event that any Interest Payment Date,
Redemption Date or Maturity Date is not a Business Day, then the required
payment of principal, premium, if any, and interest will be made on the next
succeeding day that is a Business Day (and without any interest or other payment
in respect of any such delay). "Business Day" means any day other than a day on
which banking institutions in the State of New York or the State of Michigan are
authorized or obligated pursuant to law or executive order to close.

     Payment of principal of, premium, if any, and interest on the Notes shall
be made in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts. Payments of
principal, premium, if any, and interest due at the Stated Maturity or earlier
redemption of such Securities shall be made at the office of the Paying Agent
upon surrender of such Securities to the Paying Agent. Payments of interest
shall be made, at the option of the Company, subject to such surrender where
applicable, by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register.

     UNTIL THE RELEASE DATE (AS DEFINED BELOW), THIS NOTE SHALL BE SECURED BY
GENERAL AND REFUNDING MORTGAGE BONDS (THE "MORTGAGE BONDS") ISSUED AND DELIVERED
BY THE COMPANY TO THE TRUSTEE (AS DEFINED BELOW) UNDER THE COMPANY'S
SUPPLEMENTAL INDENTURE DATED AS OF DECEMBER 1, 2002, SUPPLEMENTING THE MORTGAGE
AND DEED OF TRUST DATED AS OF OCTOBER 1, 1924 BETWEEN THE COMPANY AND BANK ONE,
NATIONAL ASSOCIATION (THE "MORTGAGE TRUSTEE"), PLEDGED BY THE COMPANY FOR THE
BENEFIT OF THE HOLDERS OF THE NOTES TO THE TRUSTEE UNDER THE INDENTURE (THE
"MORTGAGE"). ON THE RELEASE DATE, THE NOTES SHALL CEASE TO BE SECURED BY SUCH
MORTGAGE BONDS AND, AT THE COMPANY'S OPTION, SHALL EITHER (1) BECOME UNSECURED
GENERAL OBLIGATIONS OF THE COMPANY OR (2) BE SECURED BY SUBSTITUTE MORTGAGE
BONDS UNDER A SUBSTITUTE MORTGAGE.

                                       15

<PAGE>

     This Note shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

     Unless the Certificate of Authentication hereon has been executed by the
Trustee or a duly appointed Authentication Agent referred to herein, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

     This Note is one of a duly authorized series of Securities of the Company
(herein sometimes referred to as the "Notes"), specified in the Indenture, all
issued or to be issued in one or more series under and pursuant to a Collateral
Trust Indenture dated as of June 30, 1993 (the "Original Indenture") duly
executed and delivered between the Company and Bank One Trust Company, National
Association, as Trustee (herein referred to as the "Trustee"), as supplemented
through and including an Eleventh Supplemental Indenture dated as of December 1,
2002 (together with the Original Indenture, the "Indenture") between the Company
and the Trustee, to which Indenture and all indentures supplemental thereto
reference is hereby made for a description of the respective rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the registered Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered.

     The Notes are not subject to repayment at the option of the Holders thereof
and are not subject to any sinking fund, except to the extent that XLCA, or its
successor in interest, may have exercised its rights pursuant to Section 2.03 of
the aforesaid Eleventh Supplemental Indenture. The Notes are subject to optional
redemption, as a whole or in part, by the Company prior to Stated Maturity of
the principal thereof upon the same terms as the 2002C Bonds are subject to
redemption. Upon payment of the principal or premium, if any, on the 2002C
Bonds, whether at maturity or prior to maturity by redemption or otherwise, or
upon provision for the payment thereof having been made in accordance with
Article I or IV of the 2002C Bond Indenture, or upon payment of interest on the
2002C Bonds, Notes in a principal amount equal to the principal amount of the
2002C Bonds so paid, or interest on Notes in an amount equal to the interest on
the 2002C Bonds so paid, as the case may be, shall, to the extent of such
payment, be deemed fully paid and the obligation of the Company thereunder to
make such payment shall forthwith crease and be discharged, and, in the case of
the payment of principal and premium, if any, such Notes shall be surrendered
for cancellation or presented for appropriate notation to the Trustee.

     Notwithstanding the foregoing, installments of interest on this Note that
are due and payable on Interest Payment Dates falling on or prior to a
Redemption Date will be payable on the Interest Payment Date to the registered
Holders as of the close of business on the relevant Record Date.

     Notice of any optional redemption will be mailed at least 30 days but not
more than 60 days before the Optional Redemption Date to the Holder hereof at
its registered address.

     Unless the Company defaults in payment of the applicable Redemption Price,
on and after the applicable Redemption Date interest will cease to accrue on the
principal amount of this Note called for redemption.

     If money sufficient to pay the applicable Redemption Price with respect to
the principal amount of and accrued interest on the principal amount of this
Note to be redeemed on the applicable Redemption Date is deposited with the
Trustee or Paying Agent on or before the related

                                       16

<PAGE>

Redemption Date and certain other conditions are satisfied, then on or after
such date, interest will cease to accrue on the principal amount of this Note
called for redemption.

     If the Notes are only partially redeemed by the Company, the Trustee shall
select which Notes are to be redeemed in a manner it deems fair and appropriate
in accordance with the terms of the Indenture.

     In the event of redemption of this Note in part only, a new Note or Notes
of this series for the unredeemed portion hereof will be issued in the name of
the registered Holder hereof upon the cancellation hereof.

     In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Notes may be declared,
and upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Note upon compliance by the Company with certain conditions
set forth therein. In the event the Company desires to provide for the payment
of Notes, in lieu of defeasing the Notes in accordance with the Indenture, the
Company shall either redeem an equal principal amount of 2002C Bonds or take
such action as shall be required by the 2002C Bond Indenture to defease an equal
principal amount of 2002C Bonds.

     Any amount payable by the Company in respect of principal of the Notes,
whether at maturity or prior to maturity by redemption or otherwise, in a
circumstance where there has not been a corresponding payment of principal of
2002C Bonds shall be applied simultaneously to the redemption or defeasance of
any equal principal amount of 2002C Bonds in accordance with the 2002C Bond
Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the registered Holders of not less than a majority in
aggregate principal amount of the outstanding Securities of each series affected
at the time, as defined in the Indenture, to execute supplemental indentures for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or of
modifying in any manner the rights of the registered Holders of the Securities;
provided, however, that no such supplemental indenture shall (i) extend the
fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate of or extend the time of payment of interest
thereon, or reduce any premium payable upon the redemption thereof, without the
consent of the registered Holder of each Security so affected or (ii) reduce the
aforesaid percentage of Securities, the registered Holders of which are required
to consent to any such supplemental indenture, without the consent of the
registered Holders of each Security then outstanding and affected thereby. The
Indenture also contains provisions permitting (i) the registered Holders of at
least 66 2/3% in aggregate principal amount of the Securities of all series at
the time outstanding affected thereby, on behalf of the registered Holders of
the Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and (ii) the registered Holders of a majority in
aggregate principal amount of the Securities of all series at the time
outstanding affected thereby, on behalf of the registered Holders of the
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the registered Holder of
this Note (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such registered Holder and upon all future registered Holders and
owners of this Note and of any Note issued in exchange hereof or in place

                                       17

<PAGE>

hereof (whether by registration of transfer or otherwise), irrespective of
whether or not any notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the time and place and at the rate and in the coin or currency herein
prescribed.

     Prior to the Release Date, the Notes of this series shall be secured by a
series of Mortgage Bonds (the "Related Series of Bonds"), delivered by the
Company to the Trustee for the benefit of the Holders of the Notes. Reference is
made to the Mortgage and the Indenture for a description of the rights of the
Trustee as Holder of the Related Series of Bonds, the property mortgaged and
pledged under the Mortgage and the rights of the Company and of the Mortgage
Trustee in respect thereof, the duties and immunities of the Mortgage Trustee
and the terms and conditions upon which the Related Series of Bonds are secured
and the circumstances under which additional Mortgage Bonds may be issued.

     FROM AND AFTER SUCH TIME AS ALL BONDS, OTHER THAN (1) PLEDGED BONDS,
INCLUDING THE RELATED SERIES OF BONDS, AND (2) MORTGAGE BONDS (EXCLUSIVE OF
PLEDGED BONDS), WHICH DO NOT IN AGGREGATE PRINCIPAL AMOUNT EXCEED THE GREATER OF
FIVE PERCENT (5%) OF NET TANGIBLE ASSETS OR FIVE PERCENT (5%) OF CAPITALIZATION,
HAVE BEEN RETIRED THROUGH PAYMENT, REDEMPTION OR OTHERWISE (INCLUDING THOSE
MORTGAGE BONDS THE PAYMENT FOR WHICH HAS BEEN PROVIDED FOR IN ACCORDANCE WITH
THE MORTGAGE) AT, BEFORE OR AFTER THE MATURITY THEREOF, PROVIDED THAT NO DEFAULT
OR EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING (THE "RELEASE DATE"), THE
RELATED SERIES OF BONDS SHALL CEASE TO SECURE THE NOTES IN ANY MANNER.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registrable in the Security Register of the
Company, upon surrender of this Note for registration of transfer at the office
or agency of the Company in any place where the principal of and any interest on
this Note are payable or at such other offices or agencies as the Company may
designate, duly endorsed by or accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company and the Security
Registrar or any transfer agent duly executed by the registered Holder hereof or
his or her attorney duly authorized in writing, and thereupon one or more new
Notes of this series and of like tenor, of authorized denominations and for the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be made for any such transfer, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

     Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee, any paying agent and any Note Registrar may deem and treat
the registered Holder hereof as the absolute owner hereof (whether or not this
Note shall be overdue and notwithstanding any notice of ownership or writing
hereon made by anyone other than the Note Registrar) for the purpose of
receiving payment of or on account of the principal hereof and interest due
hereon and for all other purposes, and neither the Company nor the Trustee nor
any Paying Agent nor any Security Registrar shall be affected by any notice to
the contrary.

                                       18

<PAGE>

     As set forth in, and subject to the provisions of, the Indenture, no Holder
of any Note will have any right to institute any proceeding with respect to the
Indenture or for any remedy thereunder, unless (i) such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default
with respect to the Notes of this series, (ii) the Holders of not less than 25%
in principal amount of the outstanding Notes of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, (iii) the Trustee shall have failed to institute
such proceeding within 60 days and (iv) the Trustee shall not have received from
the Holders of a majority in principal amount of the outstanding Notes of this
series a direction inconsistent with such request within such 60-day period;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of or any
interest on this Note on or after the respective due dates expressed herein.

     All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

                                       19

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Note to be duly
executed and attested, all as of the day and year first above written.

                                           THE DETROIT EDISON COMPANY

                                           By:__________________________________
                                           Name:  N.A. Khouri
                                           Title: Vice President and Treasurer

ATTEST:

By:_________________________________
Name: Susan E. Riske
Title: Assistant Corporate Secretary

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes of the series of Notes described in the within
mentioned Indenture.

                                           BANK ONE TRUST COMPANY,
                                           NATIONAL ASSOCIATION

                                           By___________________________________
                                                 Authorized Signatory
                                           Date: December 5, 2002

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

________________________________________________________________________________

    (Please insert Social Security or Other Identifying Number of Assignee)

________________________________________________________________________________

    (Please print or type name and address, including zip code of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing such person attorneys to transfer the within Note on the books of the
Issuer, with full power of substitution in the premises.

Dated: __________________

     NOTICE: The signature of this assignment must correspond with the name as
written upon the face of the within Note in every particular, without alteration
or enlargement or any change whatever and NOTICE: Signature(s) must be
guaranteed by a financial institution that is a member of the Securities
Transfer Agents Medallion Program ("STAMP"), the Stock Exchange, Inc. Medallion
Signature Program ("MSP"). When assignment is made by a guardian, trustee,
executor or administrator, an officer of a corporation, or anyone in a
representative capacity, proof of his or her authority to act must accompany
this Note.

                                       20

<PAGE>

                                                                       EXHIBIT B

     THIS NOTE IS BEING ISSUED TO XL CAPITAL ASSURANCE INC., AN INSURANCE
COMPANY INCORPORATED UNDER THE LAWS OF THE STATE OF NEW YORK ("XLCA"), TO SECURE
THE OBLIGATIONS OF THE DETROIT EDISON COMPANY (THE "COMPANY") TO XLCA UNDER THAT
CERTAIN INSURANCE AGREEMENT DATED AS OF DECEMBER 5, 2002 BETWEEN THE COMPANY AND
XLCA REFERRED TO HEREIN. THIS NOTE IS NOT TRANSFERABLE OR ASSIGNABLE EXCEPT AS
MAY BE REQUIRED TO EFFECT A TRANSFER TO A SUCCESSOR INSURER OF THE MICHIGAN
STRATEGIC FUND LIMITED OBLIGATION REVENUE AND REFUNDING REVENUE BONDS (THE
DETROIT EDISON COMPANY EXEMPT FACILITIES PROJECT), SERIES 2002D (AMT).

NO. R-1                                                 $55,975,000

                           THE DETROIT EDISON COMPANY

                           5.25% SENIOR NOTES DUE 2032

Principal Amount: $55,975,000

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not
a Business Day) prior to the relevant Interest Payment Date

Original Issue Date: December 5, 2002

Stated Maturity: December 15, 2032

Interest Payment Dates: June 15 and December 15 of each year, commencing June
15, 2003

Interest Rate: 5.25% per annum

     THE DETROIT EDISON COMPANY, a corporation duly organized and existing under
the laws of the State of Michigan (the "Company", which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to XLCA Capital Inc. or registered assigns, at
the office or agency of the Company in The City of New York, New York, the
principal sum of Fifty-Five Million Nine Hundred Seventy-Five Thousand Dollars
($55,975,000) on December 15, 2032 (the "Stated Maturity"), in the coin or
currency of the United States, and to pay interest thereon from the Original
Issue Date shown above, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on each
Interest Payment Date as specified above, commencing on June 15, 2003, and on
the Stated Maturity at the rate per annum shown above (the "Interest Rate")
until the principal hereof is paid or made available for payment and on any
overdue principal and premium and on any overdue installment of interest. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Note (or one or more Predecessor Securities) is registered on the
Regular Record Date as specified above next preceding such Interest Payment
Date. This note is being issued to XL Capital Assurance Inc., an insurance
company incorporated under New York

                                       21

<PAGE>

law ("XLCA"), to secure the Company's obligations to XLCA under that certain
Insurance Agreement dated as of December 5, 2002 (the "Insurance Agreement")
between the Company and XLCA relating to Financial Guaranty Insurance Policy No.
CA00403B issued by XLCA with respect to the Michigan Strategic Fund Limited
Obligation Revenue and Refunding Revenue Bonds (the Detroit Edison Company
Exempt Facilities Project), Series 2002D (AMT) (the "2002D Bonds"), which are
issued under the Trust Indenture dated as of December 1, 2002 (the "2002D Bond
Indenture") between Michigan Strategic Fund and Bank One Trust Company, National
Association, as trustee. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Note is registered at the close of business on a
Special Record Date for the payment of such defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Notes of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Notes of this series shall be listed,
and upon such notice as may be required by any such exchange, all as more fully
provided in the Indenture.

     Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. The Company shall pay interest on overdue principal and premium, if any,
and, to the extent lawful, on overdue installments of interest at the rate per
annum borne by this Note. In the event that any Interest Payment Date,
Redemption Date or Maturity Date is not a Business Day, then the required
payment of principal, premium, if any, and interest will be made on the next
succeeding day that is a Business Day (and without any interest or other payment
in respect of any such delay). "Business Day" means any day other than a day on
which banking institutions in the State of New York or the State of Michigan are
authorized or obligated pursuant to law or executive order to close.

     Payment of principal of, premium, if any, and interest on the Notes shall
be made in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts. Payments of
principal, premium, if any, and interest due at the Stated Maturity or earlier
redemption of such Securities shall be made at the office of the Paying Agent
upon surrender of such Securities to the Paying Agent. Payments of interest
shall be made, at the option of the Company, subject to such surrender where
applicable, by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register.

     UNTIL THE RELEASE DATE (AS DEFINED BELOW), THIS NOTE SHALL BE SECURED BY
GENERAL AND REFUNDING MORTGAGE BONDS (THE "MORTGAGE BONDS") ISSUED AND DELIVERED
BY THE COMPANY TO THE TRUSTEE (AS DEFINED BELOW) UNDER THE COMPANY'S
SUPPLEMENTAL INDENTURE DATED AS OF DECEMBER 1, 2002, SUPPLEMENTING THE MORTGAGE
AND DEED OF TRUST DATED AS OF OCTOBER 1, 1924 BETWEEN THE COMPANY AND BANK ONE,
NATIONAL ASSOCIATION (THE "MORTGAGE TRUSTEE"), PLEDGED BY THE COMPANY FOR THE
BENEFIT OF THE HOLDERS OF THE NOTES TO THE TRUSTEE UNDER THE INDENTURE (THE
"MORTGAGE"). ON THE RELEASE DATE, THE NOTES SHALL CEASE TO BE SECURED BY SUCH
MORTGAGE BONDS AND, AT THE COMPANY'S OPTION, SHALL EITHER (1) BECOME UNSECURED
GENERAL OBLIGATIONS OF THE COMPANY OR (2) BE SECURED BY SUBSTITUTE MORTGAGE
BONDS UNDER A SUBSTITUTE MORTGAGE.

                                       22

<PAGE>

     This Note shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

     Unless the Certificate of Authentication hereon has been executed by the
Trustee or a duly appointed Authentication Agent referred to herein, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

     This Note is one of a duly authorized series of Securities of the Company
(herein sometimes referred to as the "Notes"), specified in the Indenture, all
issued or to be issued in one or more series under and pursuant to a Collateral
Trust Indenture dated as of June 30, 1993 (the "Original Indenture") duly
executed and delivered between the Company and Bank One Trust Company, National
Association, as Trustee (herein referred to as the "Trustee"), as supplemented
through and including an Eleventh Supplemental Indenture dated as of December 1,
2002 (together with the Original Indenture, the "Indenture") between the Company
and the Trustee, to which Indenture and all indentures supplemental thereto
reference is hereby made for a description of the respective rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the registered Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered.

     The Notes are not subject to repayment at the option of the Holders thereof
and are not subject to any sinking fund, except to the extent that XLCA, or its
successor in interest, may have exercised its rights pursuant to Section 2.03 of
the aforesaid Eleventh Supplemental Indenture. The Notes are subject to optional
redemption, as a whole or in part, by the Company prior to Stated Maturity of
the principal thereof upon the same terms as the 2002D Bonds are subject to
redemption. Upon payment of the principal or premium, if any, on the 2002D
Bonds, whether at maturity or prior to maturity by redemption or otherwise, or
upon provision for the payment thereof having been made in accordance with
Article I or IV of the 2002D Bond Indenture, or upon payment of interest on the
2002D Bonds, Notes in a principal amount equal to the principal amount of the
2002D Bonds so paid, or interest on Notes in an amount equal to the interest on
the 2002D Bonds so paid, as the case may be, shall, to the extent of such
payment of principal, premium or interest, be deemed fully paid and the
obligation of the Company thereunder to make such payment shall forthwith crease
and be discharged, and, in the case of the payment of principal and premium, if
any, such Notes shall be surrendered for cancellation or presented for
appropriate notation to the Trustee.

     Notwithstanding the foregoing, installments of interest on this Note that
are due and payable on Interest Payment Dates falling on or prior to a
Redemption Date will be payable on the Interest Payment Date to the registered
Holders as of the close of business on the relevant Record Date.

     Notice of any optional redemption will be mailed at least 30 days but not
more than 60 days before the Optional Redemption Date to the Holder hereof at
its registered address.

     Unless the Company defaults in payment of the applicable Redemption Price,
on and after the applicable Redemption Date interest will cease to accrue on the
principal amount of this Note called for redemption.

     If money sufficient to pay the applicable Redemption Price with respect to
the principal amount of and accrued interest on the principal amount of this
Note to be redeemed on the applicable Redemption Date is deposited with the
Trustee or Paying Agent on or before the related

                                       23

<PAGE>

Redemption Date and certain other conditions are satisfied, then on or after
such date, interest will cease to accrue on the principal amount of this Note
called for redemption.

     If the Notes are only partially redeemed by the Company, the Trustee shall
select which Notes are to be redeemed in a manner it deems fair and appropriate
in accordance with the terms of the Indenture.

     In the event of redemption of this Note in part only, a new Note or Notes
of this series for the unredeemed portion hereof will be issued in the name of
the registered Holder hereof upon the cancellation hereof.

     In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Notes may be declared,
and upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Note upon compliance by the Company with certain conditions
set forth therein. In the event the Company desires to provide for the payment
of Notes, in lieu of defeasing the Notes in accordance with the Indenture, the
Company shall either redeem an equal principal amount of 2002D Bonds or take
such action as shall be required by the 2002D Bond Indenture to defease an equal
principal amount of 2002D Bonds.

     Any amount payable by the Company in respect of principal of the Notes,
whether at maturity or prior to maturity by redemption or otherwise, in a
circumstance where there has not been a corresponding payment of principal of
2002D Bonds shall be applied simultaneously to the redemption or defeasance of
any equal principal amount of 2002D Bonds in accordance with the 2002D Bond
Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the registered Holders of not less than a majority in
aggregate principal amount of the outstanding Securities of each series affected
at the time, as defined in the Indenture, to execute supplemental indentures for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or of
modifying in any manner the rights of the registered Holders of the Securities;
provided, however, that no such supplemental indenture shall (i) extend the
fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate of or extend the time of payment of interest
thereon, or reduce any premium payable upon the redemption thereof, without the
consent of the registered Holder of each Security so affected or (ii) reduce the
aforesaid percentage of Securities, the registered Holders of which are required
to consent to any such supplemental indenture, without the consent of the
registered Holders of each Security then outstanding and affected thereby. The
Indenture also contains provisions permitting (i) the registered Holders of at
least 66 2/3% in aggregate principal amount of the Securities of all series at
the time outstanding affected thereby, on behalf of the registered Holders of
the Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and (ii) the registered Holders of a majority in
aggregate principal amount of the Securities of all series at the time
outstanding affected thereby, on behalf of the registered Holders of the
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the registered Holder of
this Note (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such registered Holder and upon all future registered Holders and
owners of this Note and of any Note issued in exchange hereof or in place

                                       24

<PAGE>

hereof (whether by registration of transfer or otherwise), irrespective of
whether or not any notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the time and place and at the rate and in the coin or currency herein
prescribed.

     Prior to the Release Date, the Notes of this series shall be secured by a
series of Mortgage Bonds (the "Related Series of Bonds"), delivered by the
Company to the Trustee for the benefit of the Holders of the Notes. Reference is
made to the Mortgage and the Indenture for a description of the rights of the
Trustee as Holder of the Related Series of Bonds, the property mortgaged and
pledged under the Mortgage and the rights of the Company and of the Mortgage
Trustee in respect thereof, the duties and immunities of the Mortgage Trustee
and the terms and conditions upon which the Related Series of Bonds are secured
and the circumstances under which additional Mortgage Bonds may be issued.

     FROM AND AFTER SUCH TIME AS ALL BONDS, OTHER THAN (1) PLEDGED BONDS,
INCLUDING THE RELATED SERIES OF BONDS, AND (2) MORTGAGE BONDS (EXCLUSIVE OF
PLEDGED BONDS), WHICH DO NOT IN AGGREGATE PRINCIPAL AMOUNT EXCEED THE GREATER OF
FIVE PERCENT (5%) OF NET TANGIBLE ASSETS OR FIVE PERCENT (5%) OF CAPITALIZATION,
HAVE BEEN RETIRED THROUGH PAYMENT, REDEMPTION OR OTHERWISE (INCLUDING THOSE
MORTGAGE BONDS THE PAYMENT FOR WHICH HAS BEEN PROVIDED FOR IN ACCORDANCE WITH
THE MORTGAGE) AT, BEFORE OR AFTER THE MATURITY THEREOF, PROVIDED THAT NO DEFAULT
OR EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING (THE "RELEASE DATE"), THE
RELATED SERIES OF BONDS SHALL CEASE TO SECURE THE NOTES IN ANY MANNER.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registrable in the Security Register of the
Company, upon surrender of this Note for registration of transfer at the office
or agency of the Company in any place where the principal of and any interest on
this Note are payable or at such other offices or agencies as the Company may
designate, duly endorsed by or accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company and the Security
Registrar or any transfer agent duly executed by the registered Holder hereof or
his or her attorney duly authorized in writing, and thereupon one or more new
Notes of this series and of like tenor, of authorized denominations and for the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be made for any such transfer, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

     Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee, any paying agent and any Note Registrar may deem and treat
the registered Holder hereof as the absolute owner hereof (whether or not this
Note shall be overdue and notwithstanding any notice of ownership or writing
hereon made by anyone other than the Note Registrar) for the purpose of
receiving payment of or on account of the principal hereof and interest due
hereon and for all other purposes, and neither the Company nor the Trustee nor
any Paying Agent nor any Security Registrar shall be affected by any notice to
the contrary.

                                       25

<PAGE>

     As set forth in, and subject to the provisions of, the Indenture, no Holder
of any Note will have any right to institute any proceeding with respect to the
Indenture or for any remedy thereunder, unless (i) such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default
with respect to the Notes of this series, (ii) the Holders of not less than 25%
in principal amount of the outstanding Notes of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, (iii) the Trustee shall have failed to institute
such proceeding within 60 days and (iv) the Trustee shall not have received from
the Holders of a majority in principal amount of the outstanding Notes of this
series a direction inconsistent with such request within such 60-day period;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of or any
interest on this Note on or after the respective due dates expressed herein.

     All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

                                       26

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Note to be duly
executed and attested, all as of the day and year first above written.

                                           THE DETROIT EDISON COMPANY

                                           By:

                                           Name:  N.A. Khouri
                                           Title: Vice President and Treasurer

ATTEST:

By:

Name:  Susan E. Riske
Title: Assistant Corporate Secretary

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes of the series of Notes described in the within
mentioned Indenture.

                                           BANK ONE TRUST COMPANY,
                                           NATIONAL ASSOCIATION

                                           By_________________________________
                                                 Authorized Signatory
                                           Date: December 5, 2002

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

________________________________________________________________________________

    (Please insert Social Security or Other Identifying Number of Assignee)

________________________________________________________________________________

    (Please print or type name and address, including zip code of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing such person attorneys to transfer the within Note on the books of the
Issuer, with full power of substitution in the premises.

Dated: __________________

     NOTICE: The signature of this assignment must correspond with the name as
written upon the face of the within Note in every particular, without alteration
or enlargement or any change whatever and NOTICE: Signature(s) must be
guaranteed by a financial institution that is a member of the Securities
Transfer Agents Medallion Program ("STAMP"), the Stock Exchange, Inc. Medallion
Signature Program ("MSP"). When assignment is made by a guardian, trustee,
executor or administrator, an officer of a corporation, or anyone in a
representative capacity, proof of his or her authority to act must accompany
this Note.

                                       27

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