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Michigan
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38-0478650
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(State or other jurisdiction of
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(I.R.S. Employer
|
incorporation or organization)
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Identification No.)
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|
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One Energy Plaza, Detroit, Michigan
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48226-1279
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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Accelerated filer
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Non-accelerated
filer
þ
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Smaller reporting
company
o
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(Do not check if a smaller reporting company)
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Page
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|
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ASC
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Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
CIM
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A Choice Incentive Mechanism authorized by the MPSC that allows Detroit Edison to recover or refund non-fuel revenues lost or gained as a result of fluctuations in electric Customer Choice sales.
|
Customer Choice
|
Michigan legislation giving customers the option to choose alternative suppliers for electricity.
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Detroit Edison
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The Detroit Edison Company (a direct wholly owned subsidiary of DTE Energy) and subsidiary companies
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DTE Energy
|
DTE Energy Company, directly or indirectly the parent of Detroit Edison, Michigan Consolidated Gas Company and numerous non-utility subsidiaries
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EPA
|
United States Environmental Protection Agency
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FASB
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Financial Accounting Standards Board
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FERC
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Federal Energy Regulatory Commission
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FTRs
|
Financial transmission rights are financial instruments that entitle the holder to receive payments related to costs incurred for congestion on the transmission grid.
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MCIT
|
Michigan Corporate Income Tax
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MDEQ
|
Michigan Department of Environmental Quality
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MISO
|
Midwest Independent System Operator is an Independent System Operator and the Regional Transmission Organization serving the Midwest United States and Manitoba, Canada.
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MPSC
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Michigan Public Service Commission
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NRC
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United States Nuclear Regulatory Commission
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PSCR
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A Power Supply Cost Recovery mechanism authorized by the MPSC that allows Detroit Edison to recover through rates its fuel, fuel-related and purchased power costs.
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RDM
|
A Revenue Decoupling Mechanism authorized by the MPSC that is designed to minimize the impact on revenues of changes in average customer usage of electricity
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Securitization
|
Detroit Edison financed specific stranded costs at lower interest rates through the sale of rate reduction bonds by a wholly-owned special purpose entity, The Detroit Edison Securitization Funding LLC.
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VIE
|
Variable Interest Entity
|
kWh
|
Kilowatthour of electricity
|
MW
|
Megawatt of electricity
|
MWh
|
Megawatthour of electricity
|
•
|
economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, increased thefts of electricity and high levels of uncollectible accounts receivable;
|
•
|
changes in the economic and financial viability of suppliers and trading counterparties, and the continued ability of such parties to perform their obligations to the Detroit Edison;
|
•
|
access to capital markets and the results of other financing efforts which can be affected by credit agency ratings;
|
•
|
instability in capital markets which could impact availability of short and long-term financing;
|
•
|
the timing and extent of changes in interest rates;
|
•
|
the level of borrowings;
|
•
|
the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions;
|
•
|
the potential for increased costs or delays in completion of significant construction projects;
|
•
|
the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers;
|
•
|
environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;
|
•
|
health, safety, financial, environmental and regulatory risks associated with ownership and operation of nuclear facilities;
|
•
|
impact of electric utility restructuring in Michigan, including legislative amendments and Customer Choice programs;
|
•
|
employee relations and the impact of collective bargaining agreements;
|
•
|
unplanned outages;
|
•
|
changes in the cost and availability of coal and other raw materials and purchased power;
|
•
|
cost reduction efforts and the maximization of plant and distribution system performance;
|
•
|
the effects of competition;
|
•
|
impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures;
|
•
|
changes in and application of federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits;
|
•
|
the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals or new legislation;
|
•
|
the cost of protecting assets against, or damage due to, terrorism or cyber attacks;
|
•
|
the availability, cost, coverage and terms of insurance and stability of insurance providers;
|
•
|
changes in and application of accounting standards and financial reporting regulations;
|
•
|
changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues;
|
•
|
binding arbitration, litigation and related appeals; and
|
•
|
the risks discussed in our public filings with the Securities and Exchange Commission.
|
(in Millions)
|
June 30,
2011 |
|
December 31,
2010 |
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
19
|
|
|
$
|
30
|
|
Restricted cash
|
106
|
|
|
104
|
|
||
Accounts receivable (less allowance for doubtful accounts of $83 and $93, respectively)
|
|
|
|
||||
Customer
|
696
|
|
|
690
|
|
||
Affiliates
|
11
|
|
|
8
|
|
||
Other
|
73
|
|
|
204
|
|
||
Inventories
|
|
|
|
||||
Fuel
|
239
|
|
|
224
|
|
||
Materials and supplies
|
176
|
|
|
170
|
|
||
Notes receivable
|
|
|
|
||||
Affiliates
|
—
|
|
|
97
|
|
||
Other
|
2
|
|
|
—
|
|
||
Regulatory assets
|
85
|
|
|
52
|
|
||
Other
|
61
|
|
|
57
|
|
||
|
1,468
|
|
|
1,636
|
|
||
|
|
|
|
||||
Investments
|
|
|
|
||||
Nuclear decommissioning trust funds
|
975
|
|
|
939
|
|
||
Other
|
118
|
|
|
118
|
|
||
|
1,093
|
|
|
1,057
|
|
||
|
|
|
|
||||
Property
|
|
|
|
||||
Property, plant and equipment
|
16,527
|
|
|
16,068
|
|
||
Less accumulated depreciation and amortization
|
(6,617
|
)
|
|
(6,418
|
)
|
||
|
9,910
|
|
|
9,650
|
|
||
|
|
|
|
||||
Other Assets
|
|
|
|
||||
Regulatory assets
|
3,186
|
|
|
3,277
|
|
||
Securitized regulatory assets
|
656
|
|
|
729
|
|
||
Intangible assets
|
31
|
|
|
25
|
|
||
Notes receivable
|
|
|
|
||||
Affiliates
|
—
|
|
|
6
|
|
||
Other
|
6
|
|
|
—
|
|
||
Other
|
138
|
|
|
142
|
|
||
|
4,017
|
|
|
4,179
|
|
||
|
|
|
|
||||
Total Assets
|
$
|
16,488
|
|
|
$
|
16,522
|
|
(in Millions, Except Shares)
|
June 30,
2011 |
|
December 31,
2010 |
||||
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
|
|
|
||||
Affiliates
|
$
|
50
|
|
|
$
|
50
|
|
Other
|
323
|
|
|
349
|
|
||
Accrued interest
|
72
|
|
|
81
|
|
||
Current portion long-term debt, including capital leases
|
257
|
|
|
308
|
|
||
Regulatory liabilities
|
29
|
|
|
60
|
|
||
Short-term borrowing - affiliates
|
21
|
|
|
—
|
|
||
Short-term borrowing - other
|
107
|
|
|
—
|
|
||
Other
|
257
|
|
|
279
|
|
||
|
1,116
|
|
|
1,127
|
|
||
|
|
|
|
||||
Long-Term Debt (net of current portion)
|
|
|
|
||||
Mortgage bonds, notes and other
|
4,313
|
|
|
4,046
|
|
||
Securitization bonds
|
559
|
|
|
643
|
|
||
Capital lease obligations
|
16
|
|
|
20
|
|
||
|
4,888
|
|
|
4,709
|
|
||
|
|
|
|
||||
Other Liabilities
|
|
|
|
||||
Deferred income taxes
|
2,509
|
|
|
2,235
|
|
||
Regulatory liabilities
|
397
|
|
|
714
|
|
||
Asset retirement obligations
|
1,390
|
|
|
1,354
|
|
||
Unamortized investment tax credit
|
62
|
|
|
67
|
|
||
Nuclear decommissioning
|
152
|
|
|
149
|
|
||
Accrued pension liability - affiliates
|
782
|
|
|
960
|
|
||
Accrued postretirement liability - affiliates
|
1,029
|
|
|
1,060
|
|
||
Other
|
117
|
|
|
138
|
|
||
|
6,438
|
|
|
6,677
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Notes 6 and 9)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholder's Equity
|
|
|
|
||||
Common stock, $10 par value, 400,000,000 shares authorized, and 138,632,324 shares issued and outstanding
|
3,196
|
|
|
3,196
|
|
||
Retained earnings
|
865
|
|
|
829
|
|
||
Accumulated other comprehensive income (loss)
|
(15
|
)
|
|
(16
|
)
|
||
|
4,046
|
|
|
4,009
|
|
||
|
|
|
|
||||
Total Liabilities and Shareholder's Equity
|
$
|
16,488
|
|
|
$
|
16,522
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Operating Revenues
|
$
|
1,240
|
|
|
$
|
1,208
|
|
|
$
|
2,432
|
|
|
$
|
2,354
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel and purchased power
|
417
|
|
|
390
|
|
|
795
|
|
|
733
|
|
||||
Operation and maintenance
|
331
|
|
|
326
|
|
|
660
|
|
|
635
|
|
||||
Depreciation and amortization
|
202
|
|
|
210
|
|
|
404
|
|
|
414
|
|
||||
Taxes other than income
|
60
|
|
|
61
|
|
|
119
|
|
|
126
|
|
||||
Asset (gains) and losses, net
|
(5
|
)
|
|
—
|
|
|
14
|
|
|
(1
|
)
|
||||
|
1,005
|
|
|
987
|
|
|
1,992
|
|
|
1,907
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
235
|
|
|
221
|
|
|
440
|
|
|
447
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other (Income) and Deductions
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
73
|
|
|
77
|
|
|
144
|
|
|
158
|
|
||||
Other income
|
(11
|
)
|
|
(9
|
)
|
|
(21
|
)
|
|
(17
|
)
|
||||
Other expenses
|
6
|
|
|
11
|
|
|
12
|
|
|
17
|
|
||||
|
68
|
|
|
79
|
|
|
135
|
|
|
158
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Before Income Taxes
|
167
|
|
|
142
|
|
|
305
|
|
|
289
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Tax Provision
|
63
|
|
|
55
|
|
|
116
|
|
|
111
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
104
|
|
|
$
|
87
|
|
|
$
|
189
|
|
|
$
|
178
|
|
|
Six Months Ended
|
||||||
|
June 30
|
||||||
(in Millions)
|
2011
|
|
2010
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
189
|
|
|
$
|
178
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
404
|
|
|
414
|
|
||
Deferred income taxes
|
35
|
|
|
(1
|
)
|
||
Asset (gains) and losses, net
|
14
|
|
|
(1
|
)
|
||
Changes in assets and liabilities, exclusive of changes shown separately (Note 11)
|
(220
|
)
|
|
(67
|
)
|
||
Net cash from operating activities
|
422
|
|
|
523
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Plant and equipment expenditures
|
(606
|
)
|
|
(401
|
)
|
||
Restricted cash for debt redemptions
|
(2
|
)
|
|
2
|
|
||
Proceeds from sale of nuclear decommissioning trust fund assets
|
59
|
|
|
128
|
|
||
Investment in nuclear decommissioning trust funds
|
(76
|
)
|
|
(145
|
)
|
||
Notes receivable - affiliates
|
103
|
|
|
70
|
|
||
Other investments
|
(13
|
)
|
|
(13
|
)
|
||
Net cash used for investing activities
|
(535
|
)
|
|
(359
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Short-term borrowings - affiliates
|
21
|
|
|
66
|
|
||
Short-term borrowings - other
|
107
|
|
|
—
|
|
||
Issuance of long-term debt
|
248
|
|
|
—
|
|
||
Redemption of long-term debt
|
(115
|
)
|
|
(85
|
)
|
||
Dividends on common stock
|
(152
|
)
|
|
(152
|
)
|
||
Other
|
(7
|
)
|
|
(7
|
)
|
||
Net cash from (used for) financing activities
|
102
|
|
|
(178
|
)
|
||
|
|
|
|
||||
Net Decrease in Cash and Cash Equivalents
|
(11
|
)
|
|
(14
|
)
|
||
Cash and Cash Equivalents at Beginning of the Period
|
30
|
|
|
34
|
|
||
Cash and Cash Equivalents at End of the Period
|
$
|
19
|
|
|
$
|
20
|
|
(in Millions)
|
2011
|
|
2010
|
||||
Net income
|
189
|
|
|
$
|
178
|
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Benefit obligations, net of taxes
|
1
|
|
|
1
|
|
||
Comprehensive income
|
$
|
190
|
|
|
$
|
179
|
|
(in Millions)
|
June 30,
2011
|
|
December 31,
2010
|
||||
ASSETS
|
|
|
|
||||
Restricted cash
|
$
|
106
|
|
|
$
|
104
|
|
Accounts receivable
|
34
|
|
|
42
|
|
||
Securitized regulatory assets
|
656
|
|
|
729
|
|
||
Other assets
|
12
|
|
|
13
|
|
||
|
$
|
808
|
|
|
$
|
888
|
|
LIABILITIES
|
|
|
|
||||
Accounts payable and accrued current liabilities
|
$
|
16
|
|
|
$
|
17
|
|
Current portion long-term debt, including capital leases
|
158
|
|
|
150
|
|
||
Other current liabilities
|
59
|
|
|
62
|
|
||
Securitization bonds
|
559
|
|
|
643
|
|
||
Other long term liabilities
|
6
|
|
|
6
|
|
||
|
$
|
798
|
|
|
$
|
878
|
|
•
|
Level 1 - Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date.
|
•
|
Level 2 - Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
|
•
|
Level 3 - Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.
|
(in Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Balance at
June 30, 2011
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Nuclear decommissioning trusts
|
$
|
626
|
|
|
$
|
349
|
|
|
$
|
—
|
|
|
$
|
975
|
|
Other investments
|
53
|
|
|
53
|
|
|
—
|
|
|
106
|
|
||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Total
|
$
|
679
|
|
|
$
|
402
|
|
|
$
|
3
|
|
|
$
|
1,084
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities - Emissions
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Total
|
$
|
—
|
|
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net Assets at June 30, 2011
|
$
|
679
|
|
|
401
|
|
|
$
|
3
|
|
|
$
|
1,083
|
|
(in Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Balance at
June 30, 2011
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Noncurrent
|
679
|
|
|
402
|
|
|
—
|
|
|
1,081
|
|
||||
Total Assets
|
$
|
679
|
|
|
$
|
402
|
|
|
$
|
3
|
|
|
$
|
1,084
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Noncurrent
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net Assets at June 30, 2011
|
$
|
679
|
|
|
$
|
401
|
|
|
$
|
3
|
|
|
$
|
1,083
|
|
(in Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Balance at
December 31, 2010
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Nuclear decommissioning trusts
|
$
|
599
|
|
|
$
|
340
|
|
|
—
|
|
|
$
|
939
|
|
|
Other investments
|
52
|
|
|
55
|
|
|
—
|
|
|
107
|
|
||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Total
|
$
|
651
|
|
|
$
|
395
|
|
|
$
|
2
|
|
|
$
|
1,048
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities - Emissions
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Total
|
—
|
|
|
$
|
(3
|
)
|
|
—
|
|
|
$
|
(3
|
)
|
||
|
|
|
|
|
|
|
|
||||||||
Net Assets at December 31, 2010
|
$
|
651
|
|
|
$
|
392
|
|
|
$
|
2
|
|
|
$
|
1,045
|
|
(in Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Balance at
December 31, 2010
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Current
|
—
|
|
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
||
Noncurrent
|
651
|
|
|
395
|
|
|
—
|
|
|
1,046
|
|
||||
Total Assets
|
$
|
651
|
|
|
$
|
395
|
|
|
$
|
2
|
|
|
$
|
1,048
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Current
|
—
|
|
|
$
|
(3
|
)
|
|
—
|
|
|
$
|
(3
|
)
|
||
Noncurrent
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Liabilities
|
—
|
|
|
$
|
(3
|
)
|
|
—
|
|
|
$
|
(3
|
)
|
||
|
|
|
|
|
|
|
|
||||||||
Net Assets at December 31, 2010
|
$
|
651
|
|
|
$
|
392
|
|
|
$
|
2
|
|
|
$
|
1,045
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Asset balance as of beginning of the period
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Changes in fair value recorded in regulatory assets/liabilities
|
4
|
|
|
4
|
|
|
3
|
|
|
3
|
|
||||
Purchases, issuances and settlements:
|
|
|
|
|
|
|
|
||||||||
Settlements
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Asset balance as of June 30
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3
|
|
The amount of total gains (losses) included in regulatory assets and liabilities attributed to the change in unrealized gains (losses) related to assets and liabilities held at June 30, 2011 and 2010
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
June 30, 2011
|
|
December 31, 2010
|
||||
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
Long-Term Debt
|
$5.5 billion
|
|
$5.1 billion
|
|
$5.3 billion
|
|
$5.0 billion
|
(in Millions)
|
June 30
2011
|
|
December 31
2010
|
||||
Fermi 2
|
$
|
942
|
|
|
$
|
910
|
|
Fermi 1
|
3
|
|
|
3
|
|
||
Low level radioactive waste
|
30
|
|
|
26
|
|
||
Total
|
$
|
975
|
|
|
$
|
939
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Realized gains
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
26
|
|
|
$
|
21
|
|
Realized losses
|
(9
|
)
|
|
(11
|
)
|
|
(17
|
)
|
|
(19
|
)
|
||||
Proceeds from sales of securities
|
39
|
|
|
69
|
|
|
59
|
|
|
128
|
|
(in Millions)
|
Fair
Value
|
|
Unrealized
Gains
|
||||
As of June 30, 2011
|
|
|
|
||||
Equity securities
|
$
|
589
|
|
|
$
|
100
|
|
Debt securities
|
381
|
|
|
14
|
|
||
Cash and cash equivalents
|
5
|
|
|
—
|
|
||
|
975
|
|
|
114
|
|
(in Millions)
|
Fair
Value
|
|
Unrealized
Gains
|
||||
As of December 31, 2010
|
$
|
572
|
|
|
$
|
77
|
|
Equity securities
|
|
|
|
||||
Debt securities
|
361
|
|
|
11
|
|
||
Cash and cash equivalents
|
6
|
|
|
—
|
|
||
|
$
|
939
|
|
|
$
|
88
|
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||||
(in Millions)
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
||||||||
Cash equivalents
|
$
|
122
|
|
|
$
|
122
|
|
|
$
|
125
|
|
|
$
|
125
|
|
Equity securities
|
5
|
|
|
5
|
|
|
4
|
|
|
4
|
|
(in Millions)
|
June 30
2011
|
|
December 31
2010
|
||||
FTRs - Other current assets
|
$
|
3
|
|
|
$
|
2
|
|
Emissions - Other current liabilities
|
(1
|
)
|
|
(3
|
)
|
||
Total derivatives not designated as hedging instruments
|
$
|
2
|
|
|
$
|
(1
|
)
|
Commodity
|
|
Number of Units
|
|
Emissions (Tons)
|
|
1,700
|
|
FTRs (MW)
|
|
76,228
|
|
(in Millions)
|
|
||
Asset retirement obligations at December 31, 2010
|
$
|
1,366
|
|
Accretion
|
42
|
|
|
Revision in estimated cash flows
|
(1
|
)
|
|
Liabilities incurred
|
1
|
|
|
Liabilities settled
|
(7
|
)
|
|
Asset retirement obligations at June 30, 2011
|
1,401
|
|
|
Less amount included in current liabilities
|
(11
|
)
|
|
|
$
|
1,390
|
|
PSCR Year
|
|
Date Filed
|
|
Net Over/(Under)-Recovery,
Including Interest
|
|
PSCR Cost of
Power Sold
|
2009
|
|
March 2010
|
|
$15.6 million
|
|
$1.2 billion
|
2010
|
|
March 2011
|
|
$(52.6) million
|
|
$1.2 billion
|
Month Issued
|
Type
|
Interest Rate
|
Maturity
|
Amount
|
|||
April
|
Tax-Exempt Revenue Bonds(1)(2)
|
2.35
|
%
|
2024
|
$
|
31
|
|
May
|
Mortgage Bonds(3)
|
3.90
|
%
|
2021
|
250
|
|
|
|
|
|
|
$
|
281
|
|
Month Retired
|
Type
|
Interest Rate
|
Maturity
|
Amount
|
||
May
|
Tax-Exempt Revenue Bonds
|
6.95%
|
2011
|
$
|
26
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Three Months Ended June 30
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
15
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
11
|
|
Interest cost
|
38
|
|
|
38
|
|
|
24
|
|
|
24
|
|
||||
Expected return on plan assets
|
(42
|
)
|
|
(43
|
)
|
|
(15
|
)
|
|
(13
|
)
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
|
24
|
|
|
18
|
|
|
10
|
|
|
9
|
|
||||
Prior service cost
|
1
|
|
|
1
|
|
|
(4
|
)
|
|
—
|
|
||||
Net transition liability
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Special termination benefits
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
$
|
38
|
|
|
$
|
27
|
|
|
$
|
28
|
|
|
$
|
32
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Six Months Ended June 30
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
30
|
|
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
23
|
|
Interest cost
|
77
|
|
|
76
|
|
|
47
|
|
|
48
|
|
||||
Expected return on plan assets
|
(84
|
)
|
|
(86
|
)
|
|
(31
|
)
|
|
(26
|
)
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
|
47
|
|
|
35
|
|
|
21
|
|
|
19
|
|
||||
Prior service cost
|
2
|
|
|
3
|
|
|
(8
|
)
|
|
1
|
|
||||
Net transition liability
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Special termination benefits
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
$
|
74
|
|
|
$
|
54
|
|
|
$
|
56
|
|
|
$
|
66
|
|
|
Six Months Ended
|
||||||
|
June 30
|
||||||
(in Millions)
|
2011
|
|
2010
|
||||
Changes in Assets and Liabilities, Exclusive of Changes Shown Separately
|
|
|
|
||||
Accounts receivable, net
|
$
|
(35
|
)
|
|
$
|
(37
|
)
|
Inventories
|
(21
|
)
|
|
(53
|
)
|
||
Accrued pension liability
-
affiliates
|
(178
|
)
|
|
(186
|
)
|
||
Accounts payable
|
(1
|
)
|
|
59
|
|
||
Accrued PSCR refund
|
(33
|
)
|
|
(23
|
)
|
||
Income taxes receivable/payable
|
66
|
|
|
100
|
|
||
Postretirement obligation
-
affiliates
|
(31
|
)
|
|
10
|
|
||
Other assets
|
85
|
|
|
47
|
|
||
Other liabilities
|
(72
|
)
|
|
16
|
|
||
|
$
|
(220
|
)
|
|
$
|
(67
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in Millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Operating Revenues
|
$
|
1,240
|
|
|
$
|
1,208
|
|
|
$
|
2,432
|
|
|
$
|
2,354
|
|
Fuel and Purchased Power
|
417
|
|
|
390
|
|
|
795
|
|
|
733
|
|
||||
Gross Margin
|
823
|
|
|
818
|
|
|
1,637
|
|
|
1,621
|
|
||||
Operation and Maintenance
|
331
|
|
|
326
|
|
|
660
|
|
|
635
|
|
||||
Depreciation and Amortization
|
202
|
|
|
210
|
|
|
404
|
|
|
414
|
|
||||
Taxes Other Than Income
|
60
|
|
|
61
|
|
|
119
|
|
|
126
|
|
||||
Asset (Gains) and Losses, Net
|
(5
|
)
|
|
—
|
|
|
14
|
|
|
(1
|
)
|
||||
Operating Income
|
235
|
|
|
221
|
|
|
440
|
|
|
447
|
|
||||
Other (Income) and Deductions
|
68
|
|
|
79
|
|
|
135
|
|
|
158
|
|
||||
Income Tax Provision
|
63
|
|
|
55
|
|
|
116
|
|
|
111
|
|
||||
Net Income
|
$
|
104
|
|
|
$
|
87
|
|
|
$
|
189
|
|
|
$
|
178
|
|
Operating Income as a Percentage of Operating Revenues
|
19
|
%
|
|
18
|
%
|
|
18
|
%
|
|
19
|
%
|
(in Millions)
|
Three Months
|
|
Six Months
|
||||
Base sales, net of RDM and CIM
|
$
|
20
|
|
|
$
|
30
|
|
Securitization bond and tax surcharge
|
(13
|
)
|
|
(15
|
)
|
||
Electric Choice implementation surcharge elimnation
|
(6
|
)
|
|
(11
|
)
|
||
Energy optimization incentive
|
—
|
|
|
9
|
|
||
Restoration tracker
|
1
|
|
|
6
|
|
||
Other
|
3
|
|
|
(3
|
)
|
||
Increase in gross margin
|
$
|
5
|
|
|
$
|
16
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30
|
|
June 30
|
||||||||
(in Thousands of MWh)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Electric Sales
|
|
|
|
|
|
|
|
||||
Residential
|
3,607
|
|
|
3,602
|
|
|
7,495
|
|
|
7,267
|
|
Commercial
|
3,998
|
|
|
3,988
|
|
|
7,991
|
|
|
7,930
|
|
Industrial
|
2,405
|
|
|
2,605
|
|
|
4,747
|
|
|
5,081
|
|
Other
|
763
|
|
|
799
|
|
|
1,560
|
|
|
1,600
|
|
|
10,773
|
|
|
10,994
|
|
|
21,793
|
|
|
21,878
|
|
Interconnection sales (1)
|
1,156
|
|
|
1,450
|
|
|
1,461
|
|
|
2,760
|
|
Total Electric Sales
|
11,929
|
|
|
12,444
|
|
|
23,254
|
|
|
24,638
|
|
|
|
|
|
|
|
|
|
||||
Electric Deliveries
|
|
|
|
|
|
|
|
||||
Retail and Wholesale
|
10,773
|
|
|
10,994
|
|
|
21,793
|
|
|
21,878
|
|
Electric Customer Choice, including self generators (2)
|
1,409
|
|
|
1,283
|
|
|
2,711
|
|
|
2,386
|
|
Total Electric Sales and Deliveries
|
12,182
|
|
|
12,277
|
|
|
24,504
|
|
|
24,264
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in Thousands of MWh)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Power Plant Generation
|
|
|
|
|
|
|
|
||||||||
Fossil
|
8,807
|
|
|
9,595
|
|
|
16,864
|
|
|
19,115
|
|
||||
Nuclear
|
2,408
|
|
|
2,087
|
|
|
4,114
|
|
|
4,287
|
|
||||
|
11,215
|
|
|
11,682
|
|
|
20,978
|
|
|
23,402
|
|
||||
Purchased Power
|
1,573
|
|
|
1,474
|
|
|
4,050
|
|
|
2,796
|
|
||||
System Output
|
12,788
|
|
|
13,156
|
|
|
25,028
|
|
|
26,198
|
|
||||
Less Line Loss and Internal Use
|
(859
|
)
|
|
(712
|
)
|
|
(1,774
|
)
|
|
(1,560
|
)
|
||||
Net System Output
|
11,929
|
|
|
12,444
|
|
|
23,254
|
|
|
24,638
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Average Unit Cost ($/MWh)
|
|
|
|
|
|
|
|
||||||||
Generation (1)
|
$
|
21.85
|
|
|
$
|
18.96
|
|
|
$
|
21.36
|
|
|
$
|
18.87
|
|
Purchased Power
|
$
|
44.65
|
|
|
$
|
45.60
|
|
|
$
|
42.29
|
|
|
$
|
39.31
|
|
Overall Average Unit Cost
|
$
|
24.66
|
|
|
$
|
21.95
|
|
|
$
|
24.75
|
|
|
$
|
21.05
|
|
|
|
THE DETROIT EDISON COMPANY
|
|
|
(Registrant)
|
|
|
|
Date:
|
July 28, 2011
|
/S/ PETER B. OLEKSIAK
|
|
|
Peter B. Oleksiak
|
|
|
Vice President and Controller and
|
|
|
Chief Accounting Officer
|
PARTIES.
|
SUPPLEMENTAL INDENTURE, dated as of the 15th day of May, in the year 2011, between THE DETROIT EDISON COMPANY, a corporation organized and existing under the laws of the State of Michigan and a public utility (hereinafter called the “Company”), party of the first part, and The Bank of New York Mellon Trust Company, N.A., a trust company organized and existing under the laws of the United States, having a corporate trust agency office at 719 Griswold Street, Suite 930, Detroit, Michigan 48226, as successor Trustee under the Mortgage and Deed of Trust hereinafter mentioned (hereinafter called the “Trustee”), party of the second part.
|
|||
|
|
ORIGINAL INDENTURE AND SUPPLEMENTALS.
|
WHEREAS, the Company has heretofore executed and delivered its Mortgage and Deed of Trust (hereinafter referred to as the “Original Indenture”), dated as of October 1, 1924, to the Trustee, for the security of all bonds of the Company outstanding thereunder, and pursuant to the terms and provisions of the Original Indenture, indentures dated as of, respectively, June 1, 1925, August 1, 1927, February 1, 1931, June 1, 1931, October 1, 1932, September 25, 1935, September 1, 1936, November 1, 1936, February 1, 1940, December 1, 1940, September 1, 1947, March 1, 1950, November 15, 1951, January 15, 1953, May 1, 1953, March 15, 1954, May 15, 1955, August 15, 1957, June 1, 1959, December 1, 1966, October 1, 1968, December 1, 1969, July 1, 1970, December 15, 1970, June 15, 1971, November 15, 1971, January 15, 1973, May 1, 1974, October 1, 1974, January 15, 1975, November 1, 1975, December 15, 1975, February 1, 1976, June 15, 1976, July 15, 1976, February 15, 1977, March 1, 1977, June 15, 1977, July 1, 1977, October 1, 1977, June 1, 1978, October 15, 1978, March 15, 1979, July 1, 1979, September 1, 1979, September 15, 1979, January 1, 1980, April 1, 1980, August 15, 1980, August 1, 1981, November 1, 1981, June 30, 1982, August 15, 1982, June 1, 1983, October 1, 1984, May 1, 1985, May 15, 1985, October 15, 1985, April 1, 1986, August 15, 1986, November 30, 1986, January 31, 1987, April 1, 1987, August 15, 1987, November 30, 1987, June 15, 1989, July 15, 1989, December 1, 1989, February 15, 1990, November 1, 1990, April 1, 1991, May 1, 1991, May 15, 1991, September 1, 1991, November 1, 1991, January 15, 1992, February 29, 1992, April 15, 1992, July 15, 1992, July 31, 1992, November 30, 1992, December 15, 1992, January 1, 1993, March 1, 1993, March 15, 1993, April 1, 1993, April 26, 1993, May 31, 1993, June 30, 1993, June 30, 1993, September 15, 1993, March 1, 1994, June 15, 1994, August 15, 1994, December 1, 1994, August 1, 1995, August 1, 1999, August 15, 1999, January 1, 2000, April 15, 2000, August 1, 2000, March 15, 2001, May 1, 2001, August 15, 2001, September 15, 2001, September 17, 2002, October 15, 2002, December 1, 2002, August 1, 2003, March 15, 2004, July 1, 2004, February 1, 2005, April 1, 2005, August 1, 2005, September 15, 2005, September 30, 2005, May 15, 2006, December 1, 2006, December 1, 2007, April 1, 2008, May 1, 2008, June 1, 2008, July 1, 2008, October 1, 2008, December 1, 2008, March 15, 2009, November 1, 2009, August 1, 2010, September 1, 2010, December 1, 2010 and March 1, 2011 supplemental to the Original Indenture, have heretofore been entered into between the Company and the Trustee (the Original Indenture and all indentures supplemental thereto together being hereinafter sometimes referred to as the “Indenture”); and
|
|||
|
|
|||
ISSUE OF BONDS UNDER INDENTURE.
|
WHEREAS, the Indenture provides that said bonds shall be issuable in one or more series, and makes provision that the rates of interest and dates for the payment thereof, the date of maturity or dates of maturity, if of serial maturity, the terms and rates of optional redemption (if redeemable), the forms of registered bonds without coupons of any series and any other provisions and agreements in respect thereof, in the Indenture provided and permitted, as the Board of Directors may determine, may be expressed in a supplemental indenture to be made by the Company to the Trustee thereunder; and
|
|||
|
|
|||
BONDS HERETOFORE ISSUED.
|
WHEREAS, bonds in the principal amount of Fourteen billion sixty-five million seven hundred seven thousand dollars ($14,065,707,000) have heretofore been issued under the Indenture as follows, viz:
|
|||
|
|
|||
(1)
|
Bonds of Series A
|
— Principal Amount $26,016,000,
|
||
|
|
|
||
(2)
|
Bonds of Series B
|
— Principal Amount $23,000,000,
|
||
|
|
|
||
(3)
|
Bonds of Series C
|
— Principal Amount $20,000,000,
|
||
|
|
|
||
(4)
|
Bonds of Series D
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(5)
|
Bonds of Series E
|
— Principal Amount $15,000,000,
|
||
|
|
|
||
(6)
|
Bonds of Series F
|
— Principal Amount $49,000,000,
|
||
|
|
|
||
(7)
|
Bonds of Series G
|
— Principal Amount $35,000,000,
|
||
|
|
|
||
(8)
|
Bonds of Series H
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(9)
|
Bonds of Series I
|
— Principal Amount $60,000,000,
|
||
|
|
|
||
(10)
|
Bonds of Series J
|
— Principal Amount $35,000,000,
|
||
|
|
|
||
(11)
|
Bonds of Series K
|
— Principal Amount $40,000,000,
|
||
|
|
|
||
(12)
|
Bonds of Series L
|
— Principal Amount $24,000,000,
|
||
|
|
|
||
(13)
|
Bonds of Series M
|
— Principal Amount $40,000,000,
|
||
|
|
|
||
(14)
|
Bonds of Series N
|
— Principal Amount $40,000,000,
|
||
|
|
|
(15)
|
Bonds of Series O
|
— Principal Amount $60,000,000,
|
||
|
|
|
||
(16)
|
Bonds of Series P
|
— Principal Amount $70,000,000,
|
||
|
|
|
||
(17)
|
Bonds of Series Q
|
— Principal Amount $40,000,000,
|
||
|
|
|
||
(18)
|
Bonds of Series W
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(19)
|
Bonds of Series AA
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(20)
|
Bonds of Series BB
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(21)
|
Bonds of Series CC
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(22)
|
Bonds of Series UU
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(23-31)
|
Bonds of Series DDP Nos. 1-9
|
— Principal Amount $14,305,000,
|
||
|
|
|
||
(32-45)
|
Bonds of Series FFR Nos. 1-14
|
— Principal Amount $45,600,000,
|
||
|
|
|
||
(46-67)
|
Bonds of Series GGP Nos. 1-22
|
— Principal Amount $42,300,000,
|
||
|
|
|
||
(68)
|
Bonds of Series HH
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(69-90)
|
Bonds of Series IIP Nos. 1-22
|
— Principal Amount $3,750,000,
|
||
|
|
|
||
(91-98)
|
Bonds of Series JJP Nos. 1-8
|
— Principal Amount $6,850,000,
|
||
|
|
|
||
(99-107)
|
Bonds of Series KKP Nos. 1-9
|
— Principal Amount $34,890,000,
|
||
|
|
|
||
(108-122)
|
Bonds of Series LLP Nos. 1-15
|
— Principal Amount $8,850,000,
|
||
|
|
|
||
(123-143)
|
Bonds of Series NNP Nos. 1-21
|
— Principal Amount $47,950,000,
|
||
|
|
|
||
(144-161)
|
Bonds of Series OOP Nos. 1-18
|
— Principal Amount $18,880,000,
|
||
|
|
|
||
(162-180)
|
Bonds of Series QQP Nos. 1-19
|
— Principal Amount $13,650,000,
|
||
|
|
|
||
(181-195)
|
Bonds of Series TTP Nos. 1-15
|
— Principal Amount $3,800,000,
|
||
|
|
|
||
(196)
|
Bonds of 1980 Series A
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(197-221)
|
Bonds of 1980 Series CP Nos. 1-25
|
— Principal Amount $35,000,000,
|
||
|
|
|
||
(222-232)
|
Bonds of 1980 Series DP Nos. 1-11
|
— Principal Amount $10,750,000,
|
||
|
|
|
||
(233-248)
|
Bonds of 1981 Series AP Nos. 1-16
|
— Principal Amount $124,000,000,
|
||
|
|
|
||
(249)
|
Bonds of 1985 Series A
|
— Principal Amount $35,000,000,
|
||
|
|
|
||
(250)
|
Bonds of 1985 Series B
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(251)
|
Bonds of Series PP
|
— Principal Amount $70,000,000,
|
||
|
|
|
||
(252)
|
Bonds of Series RR
|
— Principal Amount $70,000,000,
|
||
|
|
|
||
(253)
|
Bonds of Series EE
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(254-255)
|
Bonds of Series MMP and MMP No. 2
|
— Principal Amount $5,430,000,
|
||
(256)
|
Bonds of Series T
|
— Principal Amount $75,000,000,
|
||
|
|
|
||
(257)
|
Bonds of Series U
|
— Principal Amount $75,000,000,
|
||
|
|
|
||
(258)
|
Bonds of 1986 Series B
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(259)
|
Bonds of 1987 Series D
|
— Principal Amount $250,000,000,
|
||
|
|
|
||
(260)
|
Bonds of 1987 Series E
|
— Principal Amount $150,000,000,
|
||
|
|
|
||
(261)
|
Bonds of 1987 Series C
|
— Principal Amount $225,000,000,
|
||
|
|
|
||
(262)
|
Bonds of Series V
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(263)
|
Bonds of Series SS
|
— Principal Amount $150,000,000,
|
||
|
|
|
||
(264)
|
Bonds of 1980 Series B
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(265)
|
Bonds of 1986 Series C
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(266)
|
Bonds of 1986 Series A
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(267)
|
Bonds of 1987 Series B
|
— Principal Amount $175,000,000,
|
||
|
|
|
||
(268)
|
Bonds of Series X
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(269)
|
Bonds of 1987 Series F
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(270)
|
Bonds of 1987 Series A
|
— Principal Amount $300,000,000,
|
||
|
|
|
||
(271)
|
Bonds of Series Y
|
— Principal Amount $60,000,000,
|
||
|
|
|
(272)
|
Bonds of Series Z
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(273)
|
Bonds of 1989 Series A
|
— Principal Amount $300,000,000,
|
||
|
|
|
||
(274)
|
Bonds of 1984 Series AP
|
— Principal Amount $2,400,000,
|
||
|
|
|
||
(275)
|
Bonds of 1984 Series BP
|
— Principal Amount $7,750,000,
|
||
|
|
|
||
(276)
|
Bonds of Series R
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(277)
|
Bonds of Series S
|
— Principal Amount $150,000,000,
|
||
|
|
|
||
(278)
|
Bonds of 1993 Series D
|
— Principal Amount $100,000,000,
|
||
|
|
|
||
(279)
|
Bonds of 1992 Series E
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(280)
|
Bonds of 1993 Series B
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(281)
|
Bonds of 1989 Series BP
|
— Principal Amount $66,565,000,
|
||
|
|
|
||
(282)
|
Bonds of 1990 Series A
|
— Principal Amount $194,649,000,
|
||
|
|
|
||
(283)
|
Bonds of 1990 Series D
|
— Principal Amount $0,
|
||
|
|
|
||
(284)
|
Bonds of 1993 Series G
|
— Principal Amount $225,000,000,
|
||
(285)
|
Bonds of 1993 Series K
|
— Principal Amount $160,000,000,
|
||
|
|
|
||
(286)
|
Bonds of 1991 Series EP
|
— Principal Amount $41,480,000,
|
||
|
|
|
||
(287)
|
Bonds of 1993 Series H
|
— Principal Amount $50,000,000,
|
||
|
|
|
||
(288)
|
Bonds of 1999 Series D
|
— Principal Amount $40,000,000,
|
||
|
|
|
||
(289)
|
Bonds of 1991 Series FP
|
— Principal Amount $98,375,000,
|
||
|
|
|
||
(290)
|
Bonds of 1992 Series BP
|
— Principal Amount $20,975,000,
|
||
|
|
|
||
(291)
|
Bonds of 1992 Series D
|
— Principal Amount $300,000,000,
|
||
|
|
|
||
(292)
|
Bonds of 1992 Series CP
|
— Principal Amount $35,000,000,
|
||
|
|
|
||
(293)
|
Bonds of 1993 Series C
|
— Principal Amount $225,000,000,
|
||
|
|
|
||
(294)
|
Bonds of 1993 Series E
|
— Principal Amount $400,000,000,
|
||
|
|
|
||
(295)
|
Bonds of 1993 Series J
|
— Principal Amount $300,000,000,
|
||
|
|
|
||
(296-301)
|
Bonds of Series KKP Nos. 10-15
|
— Principal Amount $179,590,000,
|
||
|
|
|
||
(302)
|
Bonds of 1989 Series BP No. 2
|
— Principal Amount $36,000,000,
|
||
|
|
|
||
(303)
|
Bonds of 1993 Series FP
|
— Principal Amount $5,685,000,
|
||
|
|
|
||
(304)
|
Bonds of 1993 Series IP
|
— Principal Amount $5,825,000,
|
||
|
|
|
||
(305)
|
Bonds of 1994 Series AP
|
— Principal Amount $7,535,000,
|
||
|
|
|
||
(306)
|
Bonds of 1994 Series BP
|
— Principal Amount $12,935,000,
|
||
|
|
|
||
(307)
|
Bonds of 1994 Series DP
|
— Principal Amount $23,700,000,
|
||
|
|
|
||
(308)
|
Bonds of 1994 Series C
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(309)
|
Bonds of 2000 Series A
|
— Principal Amount $220,000,000,
|
||
|
|
|
||
(310)
|
Bonds of 2005 Series A
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(311)
|
Bonds of 1995 Series AP
|
— Principal Amount $97,000,000,
|
||
|
|
|
||
(312)
|
Bonds of 1995 Series BP
|
— Principal Amount $22,175,000,
|
||
|
|
|
||
(313)
|
Bonds of 2001 Series D
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(314)
|
Bonds of 2005 Series B
|
— Principal Amount $200,000,000,
|
||
|
|
|
||
(315)
|
Bonds of 2006 Series CT
|
— Principal Amount $68,500,000,
|
||
|
|
|
||
(316)
|
Bonds of 2005 Series DT
|
— Principal Amount $119,175,000,
|
||
|
|
|
||
(317)
|
Bonds of 1991 Series AP
|
— Principal Amount $32,375,000,
|
||
|
|
|
||
(318)
|
Bonds of 2008 Series DT
|
— Principal Amount $68,500,000,
|
||
|
|
|
||
(319)
|
Bonds of 1993 Series AP
|
— Principal Amount $65,000,000,
|
||
|
|
|
||
(320)
|
Bonds of 2001 Series E
|
— Principal Amount $500,000,000,
|
||
|
|
|
||
(321)
|
Bonds of 2001 Series AP
|
— Principal Amount $31,000,000, and
|
||
|
|
|
||
(322)
|
Bonds of 1991 Series BP
|
— Principal Amount $25,910,000,
|
||
|
|
|
|
all of which have either been retired and cancelled, or no longer represent obligations of the Company, having matured or having been called for redemption and funds necessary to effect the payment, redemption and retirement thereof having been deposited with the Trustee as a special trust fund to be applied for such purpose;
|
|||
|
|
|||
(323)
|
Bonds of 1990 Series B in the principal amount of Two hundred fifty-six million nine hundred thirty-two thousand dollars ($256,932,000) of which Two hundred nine million three hundred fifty-two thousand dollars ($209,352,000) principal amount have heretofore been retired;
|
|||
|
|
|||
(324)
|
Bonds of 1990 Series C in the principal amount of Eighty-five million four hundred seventy-five thousand dollars ($85,475,000) of which Seventy-five million two hundred eighteen thousand dollars ($75,218,000) principal amount have heretofore been retired;
|
|||
|
|
|||
(325)
|
INTENTIONALLY RESERVED FOR 1990 SERIES E;
|
|||
|
|
|||
(326)
|
INTENTIONALLY RESERVED FOR 1990 SERIES F;
|
|||
|
|
|||
(327)
|
Bonds of 1991 Series CP in the principal amount of Thirty-two million eight hundred thousand dollars ($32,800,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(328)
|
Bonds of 1991 Series DP in the principal amount of Thirty-seven million six hundred thousand dollars ($37,600,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(329)
|
Bonds of 1992 Series AP in the principal amount of Sixty-six million dollars ($66,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(330)
|
Bonds of 1999 Series AP in the principal amount of One hundred eighteen million three hundred sixty thousand dollars ($118,360,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(331)
|
Bonds of 1999 Series BP in the principal amount of Thirty-nine million seven hundred forty-five thousand dollars ($39,745,000), all of which are outstanding of the date hereof;
|
|||
|
|
|||
(332)
|
Bonds of 1999 Series CP in the principal amount of Sixty-six million five hundred sixty-five thousand dollars ($66,565,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(333)
|
Bonds of 2000 Series B in the principal amount of Fifty million seven hundred forty-five thousand dollars ($50,745,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(334)
|
Bonds of 2001 Series BP in the principal amount of Eighty-two million three hundred fifty thousand ($82,350,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(335)
|
Bonds of 2001 Series CP in the principal amount of One hundred thirty-nine million eight hundred fifty-five thousand dollars ($139,855,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(336)
|
Bonds of 2002 Series A in the principal amount of Two hundred twenty-five million dollars ($225,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(337)
|
Bonds of 2002 Series B in the principal amount of Two hundred twenty-five million dollars ($225,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(338)
|
Bonds of 2002 Series C in the principal amount of Sixty-four million three hundred thousand dollars ($64,300,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(339)
|
Bonds of 2002 Series D in the principal amount of Fifty-five million nine hundred seventy-five thousand dollars ($55,975,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(340)
|
Bonds of 2003 Series A in the principal amount of Forty-nine million dollars ($49,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(341)
|
Bonds of 2004 Series A in the principal amount of Thirty-six million dollars ($36,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(342)
|
Bonds of 2004 Series B in the principal amount of Thirty-one million nine hundred eighty thousand dollars ($31,980,000), all of which are outstanding at the date hereof;
|
|||
|
|
|||
(343)
|
Bonds of 2004 Series D in the principal amount of Two hundred million dollars ($200,000,000), all of which are outstanding at the date hereof;
|
|||
|
|
FURTHER ASSURANCE.
|
WHEREAS, the Original Indenture, by its terms, includes in the property subject to the lien thereof all of the estates and properties, real, personal and mixed, rights, privileges and franchises of every nature and kind and wheresoever situate, then or thereafter owned or possessed by or belonging to the Company or to which it was then or at any time thereafter might be entitled in law or in equity (saving and excepting, however, the property therein specifically excepted or released from the lien thereof), and the Company therein covenanted that it would, upon reasonable request, execute and deliver such further instruments as may be necessary or proper for the better assuring and confirming unto the Trustee all or any part of the trust estate, whether then or thereafter owned or acquired by the Company (saving and excepting, however, property specifically excepted or released from the lien thereof); and
|
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|
|
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AUTHORIZATION OF SUPPLEMENTAL INDENTURE.
|
WHEREAS, the Company in the exercise of the powers and authority conferred upon and reserved to it under and by virtue of the provisions of the Indenture, and pursuant to resolutions of its Board of Directors, has duly resolved and determined to make, execute and deliver to the Trustee a supplemental indenture in the form hereof for the purposes herein provided; and
|
|||
|
|
|||
|
WHEREAS, all conditions and requirements necessary to make this Supplemental Indenture a valid and legally binding instrument in accordance with its terms have been done, performed and fulfilled, and the execution and delivery hereof have been in all respects duly authorized;
|
|||
|
|
|||
CONSIDERATION FOR SUPPLEMENTAL INDENTURE.
|
NOW, THEREFORE, THIS INDENTURE WITNESSETH: That The Detroit Edison Company, in consideration of the premises and of the covenants contained in the Indenture and of the sum of One Dollar ($1.00) and other good and valuable consideration to it duly paid by the Trustee at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, hereby covenants and agrees to and with the Trustee and its successors in the trusts under the Original Indenture and in said indentures supplemental thereto as follows:
|
|
PART I.
CREATION OF THREE HUNDRED SIXTY-FIRST
SERIES OF BONDS,
GENERAL AND REFUNDING MORTGAGE BONDS,
2011 SERIES B
|
TERMS OF BONDS OF
2011 SERIES B.
|
SECTION 1. The Company hereby creates the three hundred sixty-first series of bonds to be issued under and secured by the Original Indenture as amended to date and as further amended by this Supplemental Indenture, to be designated, and to be distinguished from the bonds of all other series, by the title “General and Refunding Mortgage Bonds, 2011 Series B” (elsewhere herein referred to as the “bonds of 2011 Series B”). The aggregate principal amount of bonds of 2011 Series B shall be limited to Two hundred fifty million dollars ($250,000,000), except as provided in Sections 7 and 13 of Article II of the Original Indenture with respect to exchanges and replacements of bonds, and except further that the Company may, without the consent of any holder of the bonds of 2011 Series B, “reopen” the bonds of 2011 Series B, so long as any additional bonds of 2011 Series B have the same tenor and terms as the bonds of 2011 Series B established hereby..
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The bonds of 2011 Series B shall be issued as registered bonds without coupons in denominations of a multiple of $1,000. The bonds of 2011 Series B shall be issued in the aggregate principal amount of $250,000,000, shall mature on June 1, 2021 (subject to earlier redemption or release) and shall bear interest, payable semi-annually on June 1 and December 1 of each year (commencing December 1, 2011), at the rate of three and nine-tenths percent (3.90%) per annum until the principal thereof shall have become due and payable and thereafter until the Company's obligation with respect to the payment of said principal shall have been discharged as provided in the Indenture. The bonds of 2011 Series B will be issued in book-entry form through the facilities of The Depository Trust Company. Except as otherwise specifically provided in this Supplemental Indenture, the bonds of 2011 Series B shall be payable, as to principal, premium, if any, and interest, at the office or agency of the Company in the Borough of Manhattan, the City and State of New York, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts.
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Except as provided herein, each bond of 2011 Series B shall be dated the date of its authentication and interest shall be payable on the principal represented thereby from the June 1 or December 1 next preceding the date to which interest has been paid on bonds of 2011 Series B, unless the bond is authenticated on a date prior to December 1, 2011, in which case interest shall be payable from May 18, 2011.
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The bonds of 2011 Series B in definitive form shall be, at the election of the Company, fully engraved or shall be lithographed or printed in authorized denominations as aforesaid and numbered R-1 and upwards (with such further designation as may be appropriate and desirable to indicate by such designation the form, series and denomination of bonds of 2011 Series B). Until bonds of 2011 Series B in definitive form are ready for delivery, the Company may execute, and upon its request in writing the Trustee shall authenticate and deliver in lieu thereof, bonds of 2011 Series B in temporary form, as provided in Section 10 of Article II of the Indenture. Temporary bonds of 2011 Series B, if any, may be printed and may be issued in authorized denominations in substantially the form of definitive bonds of 2011 Series B, but without a recital of redemption prices and with such omissions, insertions and variations as may be appropriate for temporary bonds, all as may be determined by the Company.
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Interest on any bond of 2011 Series B that is payable on any interest payment date and is punctually paid or duly provided for shall be paid to the person in whose name that bond, or any previous bond to the extent evidencing the same debt as that evidenced by that bond, is registered at the close of business on the regular record date for such interest, which regular record date shall be the fifteenth calendar day (whether or not such day is a business day) immediately preceding the applicable interest payment date. If the Company shall default in the payment of the interest due on any interest payment date on the principal represented by any bond of 2011 Series B, such defaulted interest shall forthwith cease to be payable to the registered holder of that bond on the relevant regular record date by virtue of his having been such holder, and such defaulted interest may be paid to the registered holder of that bond (or any bond or bonds of 2011 Series B issued upon transfer or exchange thereof) on the date of payment of such defaulted interest or, at the election of the Company, to the person in whose name that bond (or any bond or bonds of 2011 Series B issued upon transfer or exchange thereof) is registered on a subsequent record date established by notice given by mail by or on behalf of the Company to the holders of bonds of 2011 Series B not less than ten (10) days preceding such subsequent record date, which subsequent record date shall be at least five (5) days prior to the payment date of such defaulted interest. Interest will be computed on the basis of a 360-day year of twelve 30-day months.
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|
Bonds of 2011 Series B, in definitive and temporary form, may bear such legends as may be necessary to comply with any law or with any rules or regulations made pursuant thereto.
|
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|
If any interest payment date, date of redemption or the stated maturity for the bonds of 2011 Series B would otherwise be a day that is not a business day, payment of principal and/or interest or premium, if any, with respect to the bonds of 2011 Series B will be paid on the next succeeding business day with the same force and effect as if made on such date and no interest on such payment will accrue from and after such date.
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|
|
|
“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.
|
|
|
REDEMPTION OF BONDS OF 2011 SERIES B.
|
SECTION 2. Bonds of 2011 Series B will be redeemable at the option of the Company, in whole at any time or in part from time to time at the redemption prices set forth below.
|
|
|
|
At any time prior to March 1, 2021, the optional redemption price will be equal to the greater of (i) 100% of the principal amount of the bonds of 2011 Series B to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest of the bonds of 2011 Series B to be redeemed (not including any portion of any payments of interest accrued to the redemption date) until stated maturity, in each case discounted from their respective scheduled payment dates to such redemption date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the Adjusted Treasury Rate (as defined below) plus 15 basis points, as determined by the Reference Treasury Dealer (as defined below), plus, in each case, accrued and unpaid interest thereon to the redemption date.
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|
At any time on or after March 1, 2021, the optional redemption price will be equal to 100% of the principal amount of the bonds of 2011 Series B to be redeemed plus accrued and unpaid interest thereon to the redemption date.
|
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|
|
Notwithstanding the foregoing, installments of interest on the bonds of 2011 Series B 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.
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|
“Adjusted Treasury Rate” means, with respect to any optional redemption date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue (as defined below), calculated on the third Business Day preceding such redemption date assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.
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“Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining term of the bonds of 2011 Series B that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of 2011 Series B.
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“Comparable Treasury Price” means, with respect to any optional redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation.
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|
“Reference Treasury Dealer”
means (i) each of J.P. Morgan Securities LLC, RBS Securities Inc., and UBS Securities LLC (or their respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), we will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer(s) selected by the mortgage trustee after consultation with us.
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“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any optional redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.
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The bonds of 2011 Series B shall be redeemable as aforesaid upon giving notice of such redemption by first class mail, postage prepaid, by or on behalf of the Company at least thirty (30) days, but not more than sixty (60) days, prior to the date fixed for redemption to the registered holders of bonds of 2011 Series B so called for redemption at their last respective addresses appearing on the register thereof, but failure to mail such notice to the registered holders of any bonds of 2011 Series B designated for redemption shall not affect the validity of any such redemption of any other bonds of such series. Interest shall cease to accrue on any bonds of 2011 Series B (or any portion thereof) so called for redemption from and after the date fixed for redemption if payment sufficient to redeem the bonds of 2011 Series B (or such portion) designated for redemption has been duly provided for. Bonds of 2011 Series B redeemed in part only shall be in amounts of $1,000 or any multiple thereof.
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|
If the giving of the notice of redemption shall have been completed, or if provision satisfactory to the Trustee for the giving of such notice shall have been made, and if the Company shall have deposited with the Trustee in trust funds (which shall have become available for payment to the holders of the bonds of 2011 Series B so to be redeemed) sufficient to redeem bonds of 2011 Series B in whole or in part, on the date fixed for redemption, then all obligations of the Company in respect of such bonds (or portions thereof) so to be redeemed and interest due or to become due thereon shall cease and be discharged and the holders of such bonds of 2011 Series B (or portions thereof) shall thereafter be restricted exclusively to such funds for any and all claims of whatsoever nature on their part under the Indenture or in respect of such bonds (or portions thereof) and interest.
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|
The bonds of 2011 Series B shall not be entitled to or subject to any sinking fund and shall not be redeemable other than as provided in Section 2 hereof.
|
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|
EXCHANGE AND TRANSFER
|
SECTION 3. At the option of the registered holder, any bonds of 2011 Series B, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, the City and State of New York, together with a written instrument of transfer (if so required by the Company or by the Trustee) in form approved by the Company duly executed by the holder or by its duly authorized attorney, shall be exchangeable for a like aggregate principal amount of bonds of 2011 Series B upon the terms and conditions specified herein and in Section 7 of Article II of the Indenture. The Company waives its rights under Section 7 of Article II of the Indenture not to make exchanges or transfers of bonds of 2011 Series B during any period of ten (10) days next preceding any redemption date for such bonds.
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|
Bonds of 2011 Series B, in definitive and temporary form, may bear such legends as may be necessary to comply with any law or with any rules or regulations made pursuant thereto.
|
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|
FORM
OF BONDS OF
2011 SERIES B.
|
SECTION 4. The bonds of 2011 Series B and the form of Trustee's Certificate to be endorsed on such bonds shall be substantially in the following forms, respectively:
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|
THE DETROIT EDISON COMPANY
GENERAL AND REFUNDING MORTGAGE BOND
2011 SERIES B
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[This bond is a global security within the meaning of the indenture hereinafter referred to and is registered in the name of a depository or a nominee of a depository. Unless and until it is exchanged in whole or in part for bonds in certificated form, this bond may not be transferred except as a whole by the Depository Trust Company (“DTC”) to a nominee of DTC or by DTC or any such nominee to a successor of DTC or any such nominee to a successor of DTC or a nominee of such successor. Unless this bond is presented by an authorized representative of DTC to the issuer or its agent for registration of transfer, exchange or payment, and any bond issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment hereon is made to Cede & Co., or to such other entity as is requested by an authorized representative of DTC) any transfer, pledge or other use hereof for value or otherwise by a person is wrongful, inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]
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CUSIP
|
|
$______________No. R-___
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THE DETROIT EDISON COMPANY (hereinafter called the “Company”), a corporation of the State of Michigan, for value received, hereby promises to pay to [Cede & Co.], or registered assigns, at the Company's office or agency in the Borough of Manhattan, the City and State of New York, the principal sum of ______________________ Dollars ($__________) in lawful money of the United States of America on June 1, 2021 (subject to earlier redemption or release) and interest thereon at the rate of 3.90%, in like lawful money, from [May 18, 2011], and after the first payment of interest on bonds of this Series has been made or otherwise provided for, from the most recent date to which interest has been paid or otherwise provided for, semi-annually on June 1 and December 1 of each year (commencing December 1, 2011), until the Company's obligation with respect to payment of said principal shall have been discharged, all as provided, to the extent and in the manner specified in the Indenture hereinafter mentioned and in the supplemental indenture pursuant to which this bond has been issued.
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|
This bond is one of an authorized issue of bonds of the Company, unlimited as to amount except as provided in the Indenture hereinafter mentioned or any indentures supplemental thereto, and is one of a series of General and Refunding Mortgage Bonds known as 2011 Series B, limited to an aggregate principal amount of $250,000,000, except as otherwise provided in the Indenture hereinafter mentioned. This bond and all other bonds of said series are issued and to be issued under, and are all equally and ratably secured (except insofar as any sinking, amortization, improvement or analogous fund, established in accordance with the provisions of the Indenture hereinafter mentioned, may afford additional security for the bonds of any particular series and except as provided in Section 3 of Article VI of said Indenture) by an Indenture, dated as of October 1, 1924, duly executed by the Company to The Bank of New York Mellon Trust Company, N.A., as successor Trustee, to which Indenture and all indentures supplemental thereto (including the Supplemental Indenture dated as of May 15, 2011) reference is hereby made for a description of the properties and franchises mortgaged and conveyed, the nature and extent of the security, the terms and conditions upon which the bonds are issued and under which additional bonds may be issued, and the rights of the holders of the bonds and of the Trustee in respect of such security (which Indenture and all indentures supplemental thereto, including the Supplemental Indenture dated as of May 15, 2011, are hereinafter collectively called the “Indenture”). As provided in the Indenture, said bonds may be for various principal sums and are issuable in series, which may mature at different times, may bear interest at different rates and may otherwise vary as in said Indenture provided. With the consent of the Company and to the extent permitted by and as provided in the Indenture, the rights and obligations of the Company and of the holders of the bonds and the terms and provisions of the Indenture, or of any indenture supplemental thereto, may be modified or altered in certain respects by affirmative vote of at least eighty-five percent (85%) in amount of the bonds then outstanding, and, if the rights of one or more, but less than all, series of bonds then outstanding are to be affected by the action proposed to be taken, then also by affirmative vote of at least eighty-five percent (85%) in amount of the series of bonds so to be affected (excluding in every instance bonds disqualified from voting by reason of the Company's interest therein as specified in the Indenture); provided, however, that, without the consent of the holder hereof, no such modification or alteration shall, among other things, affect the terms of payment of the principal of or the interest on this bond, which in those respects is unconditional.
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This bond is not subject to repayment at the option of the holder hereof. Except as provided below, this bond is not redeemable by the Company prior to maturity and is not subject to any sinking fund.
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This bond will be redeemable at the option of the Company, in whole at any time or in part from time to time at the redemption prices set forth below. At any time prior to March 1, 2021, the optional redemption price will be equal to the greater of (i) 100% of the principal amount of this bond to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest of this bond to be redeemed (not including any portion of any payments of interest accrued to the optional redemption date) until stated maturity, in each case discounted from their respective scheduled payment dates to such redemption date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the Adjusted Treasury Rate (as defined below) plus 15 basis points, as determined by the Reference Treasury Dealer (as defined below), plus, in each case, accrued and unpaid interest thereon to the redemption date. At any time on or after March 1, 2021, the optional redemption price will be equal to 100% of the principal amount of this bond to be redeemed plus accrued and unpaid interest thereon to the redemption date.
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|
Notwithstanding the foregoing, installments of interest on this bond 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.
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|
“Adjusted Treasury Rate” means, with respect to any optional redemption date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated on the third Business Day preceding such redemption date assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.
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“Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining term of this bond that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of this bond.
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“Comparable Treasury Price” means, with respect to any optional redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation.
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“Reference Treasury Dealer”
means (i) each of J.P. Morgan Securities LLC, RBS Securities Inc., and UBS Securities LLC (or their respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), we will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer(s) selected by the mortgage trustee after consultation with us.
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“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any optional redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.
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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. If notice has been provided in accordance with the Indenture and funds for the redemption of this bond called for redemption have been made available on the redemption date, this bond will cease to bear interest on the date fixed for redemption. Thereafter, the only right of the holder hereof will be to receive payment of the redemption price.
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Under the Indenture, funds may be deposited with the Trustee (which shall have become available for payment), in advance of the redemption date of any of the bonds of 2011 Series B (or portions thereof), in trust for the redemption of such bonds (or portions thereof) and the interest due or to become due thereon, and thereupon all obligations of the Company in respect of such bonds (or portions thereof) so to be redeemed and such interest shall cease and be discharged, and the holders thereof shall thereafter be restricted exclusively to such funds for any and all claims of whatsoever nature on their part under the Indenture or with respect to such bonds (or portions thereof) and interest.
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In case an event of default, as defined in the Indenture, shall occur, the principal of all the bonds issued thereunder may become or be declared due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture.
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The bonds of this series are issuable only in fully registered form without coupons in denominations of $1,000 and any integral multiple thereof. This Global Security is exchangeable for bonds in definitive form only under certain limited circumstances set forth in the Indenture. As provided in the Indenture and subject to certain limitations therein set forth, bonds of this series are exchangeable for a like aggregate principal amount of bonds of this series of a different authorized denomination, as requested by the registered holder surrendering the same.
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This bond is transferable by the registered holder hereof, in person or by his attorney duly authorized in writing, on the books of the Company kept at its office or agency in the Borough of Manhattan, the City and State of New York, upon surrender and cancellation of this bond, and thereupon, a new registered bond of the same series of authorized denominations for a like aggregate principal amount will be issued to the transferee in exchange therefor, and this bond with others in like form may in like manner be exchanged for one or more new bonds of the same series of other authorized denominations, but of the same aggregate principal amount, all as provided and upon the terms and conditions set forth in the Indenture, and upon payment, in any event, of the charges prescribed in the Indenture.
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No recourse shall be had for the payment of the principal of or the interest on this bond, or for any claim based hereon or otherwise in respect hereof or of the Indenture, or of any indenture supplemental thereto, against any incorporator, or against any past, present or future stockholder, director or officer, as such, of the Company, or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether for amounts unpaid on stock subscriptions or by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise howsoever; all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released by every holder or owner hereof, as more fully provided in the Indenture.
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This bond shall not be valid or become obligatory for any purpose until The Bank of New York Mellon Trust Company, N.A., the Trustee under the Indenture, or its successor thereunder, shall have signed the form of certificate endorsed hereon.
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IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY has caused this instrument to be executed by an authorized officer, with his or her manual or facsimile signatures, and its corporate seal, or a facsimile thereof, to be impressed or imprinted hereon and the same to be attested by its Corporate Secretary or Assistant Corporate Secretary by manual or facsimile signature.
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Dated: _____________
THE DETROIT EDISON COMPANY
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By:
Name:
Title:
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[Corporate Seal]
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Attest:
By:
Name:
Title:
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[FORM OF TRUSTEE'S CERTIFICATE]
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FORM OF TRUSTEE'S CERTIFICATE.
|
This bond is one of the bonds, of the series designated therein, described in the within-mentioned Indenture.
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THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
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By:
Authorized Representative
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PART II.
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RECORDING AND FILING DATA
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RECORDING AND FILING OF ORIGINAL INDENTURE.
|
The Original Indenture and indentures supplemental thereto have been recorded and/or filed and Certificates of Provision for Payment have been recorded as hereinafter set forth.
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The Original Indenture has been recorded as a real estate mortgage and filed as a chattel Mortgage in the offices of the respective Registers of Deeds of certain counties in the State of Michigan as set forth in the Supplemental Indenture dated as of September 1, 1947, has been recorded as a real estate mortgage in the office of the Register of Deeds of Genesee County, Michigan as set forth in the Supplemental Indenture dated as of May 1, 1974, has been filed in the Office of the Secretary of State of Michigan on November 16, 1951 and has been filed and recorded in the office of the Interstate Commerce Commission on December 8, 1969.
|
|
|
RECORDING AND FILING OF SUPPLEMENTAL INDENTURES.
|
Pursuant to the terms and provisions of the Original Indenture, indentures supplemental thereto heretofore entered into have been Recorded as a real estate mortgage and/or filed as a chattel mortgage or as a financing statement in the offices of the respective Registers of Deeds of certain counties in the State of Michigan, the Office of the Secretary of State of Michigan and the Office of the Interstate Commerce Commission or the Surface Transportation Board, as set forth in supplemental indentures as follows:
|
Supplemental Indenture
Dated as of
|
Purpose of Supplemental
Indenture
|
Recorded and/or Filed as Set Forth in Supplemental
Indenture Dated as of
|
|
June 1, 1925(a)(b)
|
Series B Bonds
|
February 1, 1940
|
|
August 1, 1927(a)(b)
|
Series C Bonds
|
February 1, 1940
|
|
February 1, 1931(a)(b)
|
Series D Bonds
|
February 1, 1940
|
|
June 1, 1931(a)(b)
|
Subject Properties
|
February 1, 1940
|
|
October 1, 1932(a)(b)
|
Series E Bonds
|
February 1, 1940
|
|
September 25, 1935(a)(b)
|
Series F Bonds
|
February 1, 1940
|
|
September 1, 1936(a)(b)
|
Series G Bonds
|
February 1, 1940
|
|
November 1, 1936(a)(b)
|
Subject Properties
|
February 1, 1940
|
|
February 1, 1940(a)(b)
|
Subject Properties
|
September 1, 1947
|
|
December 1, 1940(a)(b)
|
Series H Bonds and Additional Provisions
|
September 1, 1947
|
|
September 1, 1947(a)(b)(c)
|
Series I Bonds, Subject Properties and Additional Provisions
|
November 15, 1951
|
|
March 1, 1950(a)(b)(c)
|
Series J Bonds and Additional Provisions
|
November 15, 1951
|
|
November 15, 1951(a)(b)(c)
|
Series K Bonds, Additional Provisions and Subject Properties
|
January 15, 1953
|
|
January 15, 1953(a)(b)
|
Series L Bonds
|
May 1, 1953
|
|
May 1, 1953(a)
|
Series M Bonds and Subject Properties
|
March 15, 1954
|
|
March 15, 1954(a)(c)
|
Series N Bonds and Subject Properties
|
May 15, 1955
|
|
May 15, 1955(a)(c)
|
Series O Bonds and Subject Properties
|
August 15, 1957
|
|
August 15, 1957(a)(c)
|
Series P Bonds, Additional Provisions and Subject Properties
|
June 1, 1959
|
|
June 1, 1959(a)(c)
|
Series Q Bonds and Subject Properties
|
December 1, 1966
|
|
December 1, 1966(a)(c)
|
Series R Bonds, Additional Provisions and Subject Properties
|
October 1, 1968
|
October 1, 1968(a)(c)
|
Series S Bonds and Subject Properties
|
December 1, 1969
|
|
December 1, 1969(a)(c)
|
Series T Bonds and Subject Properties
|
July 1, 1970
|
|
July 1, 1970(c)
|
Series U Bonds and Subject Properties
|
December 15, 1970
|
|
December 15, 1970(c)
|
Series V Bonds and Series W Bonds
|
June 15, 1971
|
|
June 15, 1971(c)
|
Series X Bonds and Subject Properties
|
November 15, 1971
|
|
November 15, 1971(c)
|
Series Y Bonds and Subject Properties
|
January 15, 1973
|
|
January 15, 1973(c)
|
Series Z Bonds and Subject Properties
|
May 1, 1974
|
|
May 1, 1974
|
Series AA Bonds and Subject Properties
|
October 1, 1974
|
|
October 1, 1974
|
Series BB Bonds and Subject Properties
|
January 15, 1975
|
|
January 15, 1975
|
Series CC Bonds and Subject Properties
|
November 1, 1975
|
|
November 1, 1975
|
Series DDP Nos. 1-9 Bonds and Subject Properties
|
December 15, 1975
|
|
December 15, 1975
|
Series EE Bonds and Subject Properties
|
February 1, 1976
|
|
February 1, 1976
|
Series FFR Nos. 1-13 Bonds
|
June 15, 1976
|
|
June 15, 1976
|
Series GGP Nos. 1-7 Bonds and Subject Properties
|
July 15, 1976
|
|
July 15, 1976
|
Series HH Bonds and Subject Properties
|
February 15, 1977
|
|
February 15, 1977
|
Series MMP Bonds and Subject Properties
|
March 1, 1977
|
|
March 1, 1977
|
Series IIP Nos. 1-7 Bonds, Series JJP Nos. 1-7 Bonds, Series KKP Nos. 1-7 Bonds and Series LLP Nos. 1-7 Bonds
|
June 15, 1977
|
|
June 15, 1977
|
Series FFR No. 14 Bonds and Subject Properties
|
July 1, 1977
|
|
July 1, 1977
|
Series NNP Nos. 1-7 Bonds and Subject Properties
|
October 1, 1977
|
|
October 1, 1977
|
Series GGP Nos. 8-22 Bonds and Series OOP Nos. 1-17 Bonds and Subject Properties
|
June 1, 1978
|
|
June 1, 1978
|
Series PP Bonds, Series QQP Nos. 1-9 Bonds and Subject Properties
|
October 15, 1978
|
|
October 15, 1978
|
Series RR Bonds and Subject Properties
|
March 15, 1979
|
|
March 15, 1979
|
Series SS Bonds and Subject Properties
|
July 1, 1979
|
|
July 1, 1979
|
Series IIP Nos. 8-22 Bonds, Series NNP Nos. 8-21 Bonds and Series TTP Nos. 1-15 Bonds and Subject Properties
|
September 1, 1979
|
|
September 1, 1979
|
Series JJP No. 8 Bonds, Series KKP No. 8 Bonds, Series LLP Nos. 8-15 Bonds, Series MMP No. 2 Bonds and Series OOP No. 18 Bonds and Subject Properties
|
September 15, 1979
|
|
September 15, 1979
|
Series UU Bonds
|
January 1, 1980
|
January 1, 1980
|
1980 Series A Bonds and Subject Properties
|
April 1, 1980
|
|
April 1, 1980
|
1980 Series B Bonds
|
August 15, 1980
|
|
August 15, 1980
|
Series QQP Nos. 10-19 Bonds, 1980 Series CP Nos. 1-12 Bonds and 1980 Series DP No. 1-11 Bonds and Subject Properties
|
August 1, 1981
|
|
August 1, 1981
|
1980 Series CP Nos. 13-25 Bonds and Subject Properties
|
November 1, 1981
|
|
November 1, 1981
|
1981 Series AP Nos. 1-12 Bonds
|
June 30, 1982
|
|
June 30, 1982
|
Article XIV Reconfirmation
|
August 15, 1982
|
|
August 15, 1982
|
1981 Series AP Nos. 13-14 Bonds and Subject Properties
|
June 1, 1983
|
|
June 1, 1983
|
1981 Series AP Nos. 15-16 Bonds and Subject Properties
|
October 1, 1984
|
|
October 1, 1984
|
1984 Series AP Bonds and 1984 Series BP Bonds and Subject Properties
|
May 1, 1985
|
|
May 1, 1985
|
1985 Series A Bonds
|
May 15, 1985
|
|
May 15, 1985
|
1985 Series B Bonds and Subject Properties
|
October 15, 1985
|
|
October 15, 1985
|
Series KKP No. 9 Bonds and Subject Properties
|
April 1, 1986
|
|
April 1, 1986
|
1986 Series A Bonds and Subject Properties
|
August 15, 1986
|
|
August 15, 1986
|
1986 Series B Bonds and Subject Properties
|
November 30, 1986
|
|
November 30, 1986
|
1986 Series C Bonds
|
January 31, 1987
|
|
January 31, 1987
|
1987 Series A Bonds
|
April 1, 1987
|
|
April 1, 1987
|
1987 Series B Bonds and 1987 Series C Bonds
|
August 15, 1987
|
|
August 15, 1987
|
1987 Series D Bonds, 1987 Series E Bonds and Subject Properties
|
November 30, 1987
|
|
November 30, 1987
|
1987 Series F Bonds
|
June 15, 1989
|
|
June 15, 1989
|
1989 Series A Bonds
|
July 15, 1989
|
|
July 15, 1989
|
Series KKP No. 10 Bonds
|
December 1, 1989
|
|
December 1, 1989
|
Series KKP No. 11 Bonds and 1989 Series BP Bonds
|
February 15, 1990
|
|
February 15, 1990
|
1990 Series A Bonds, 1990 Series B Bonds, 1990 Series C Bonds, 1990 Series D Bonds, 1990 Series E Bonds and 1990 Series F Bonds
|
November 1, 1990
|
|
November 1, 1990
|
Series KKP No. 12 Bonds
|
April 1, 1991
|
|
April 1, 1991
|
1991 Series AP Bonds
|
May 1, 1991
|
|
May 1, 1991
|
1991 Series BP Bonds and 1991 Series CP Bonds
|
May 15, 1991
|
|
May 15, 1991
|
1991 Series DP Bonds
|
September 1, 1991
|
|
September 1, 1991
|
1991 Series EP Bonds
|
November 1, 1991
|
|
November 1, 1991
|
1991 Series FP Bonds
|
January 15, 1992
|
|
January 15, 1992
|
1992 Series BP Bonds
|
February 29, 1992 and April 15, 1992
|
|
February 29, 1992
|
1992 Series AP Bonds
|
April 15, 1992
|
|
April 15, 1992
|
Series KKP No. 13 Bonds
|
July 15, 1992
|
|
July 15, 1992
|
1992 Series CP Bonds
|
November 30, 1992
|
|
July 31, 1992
|
1992 Series D Bonds
|
November 30, 1992
|
November 30, 1992
|
1992 Series E Bonds and 1993 Series B Bonds
|
March 15, 1993
|
|
December 15, 1992
|
Series KKP No. 14 Bonds and 1989 Series BP No. 2 Bonds
|
March 15, 1993
|
|
January 1, 1993
|
1993 Series C Bonds
|
April 1, 1993
|
|
March 1, 1993
|
1993 Series E Bonds
|
June 30, 1993
|
|
March 15, 1993
|
1993 Series D Bonds
|
September 15, 1993
|
|
April 1, 1993
|
1993 Series FP Bonds and 1993 Series IP Bonds
|
September 15, 1993
|
|
April 26, 1993
|
1993 Series G Bonds and Amendment of Article II, Section 5
|
September 15, 1993
|
|
May 31, 1993
|
1993 Series J Bonds
|
September 15, 1993
|
|
June 30, 1993
|
1993 Series AP Bonds
|
(d)
|
|
June 30, 1993
|
1993 Series H Bonds
|
(d)
|
|
September 15, 1993
|
1993 Series K Bonds
|
March 1, 1994
|
|
March 1, 1994
|
1994 Series AP Bonds
|
June 15, 1994
|
|
June 15, 1994
|
1994 Series BP Bonds
|
December 1, 1994
|
|
August 15, 1994
|
1994 Series C Bonds
|
December 1, 1994
|
|
December 1, 1994
|
Series KKP No. 15 Bonds and 1994 Series DP Bonds
|
August 1, 1995
|
|
August 1, 1995
|
1995 Series AP Bonds and 1995 Series BP Bonds
|
August 1, 1999
|
|
August 1, 1999
|
1999 Series AP Bonds, 1999 Series BP Bonds and 1999 Series CP Bonds
|
(d)
|
|
August 15, 1999
|
1999 Series D Bonds
|
(d)
|
|
January 1, 2000
|
2000 Series A Bonds
|
(d)
|
|
April 15, 2000
|
Appointment of Successor Trustee
|
(d)
|
|
August 1, 2000
|
2000 Series BP Bonds
|
(d)
|
|
March 15, 2001
|
2001 Series AP Bonds
|
(d)
|
|
May 1, 2001
|
2001 Series BP Bonds
|
(d)
|
|
August 15, 2001
|
2001 Series CP Bonds
|
(d)
|
|
September 15, 2001
|
2001 Series D Bonds and 2001 Series E Bonds
|
(d)
|
|
September 17, 2002
|
Amendment of Article XIII, Section 3 and Appointment of Successor Trustee
|
(d)
|
|
October 15, 2002
|
2002 Series A Bonds and 2002 Series B Bonds
|
(d)
|
|
December 1, 2002
|
2002 Series C Bonds and 2002 Series D Bonds
|
(d)
|
|
August 1, 2003
|
2003 Series A Bonds
|
(d)
|
|
March 15, 2004
|
2004 Series A Bonds and 2004 Series B Bonds
|
(d)
|
|
July 1, 2004
|
2004 Series D Bonds
|
(d)
|
|
February 1, 2005
|
2005 Series A Bonds and 2005 Series B Bonds
|
May 15, 2006
|
|
April 1, 2005
|
2005 Series AR Bonds and 2005 Series BR Bonds
|
May 15, 2006
|
|
August 1, 2005
|
2005 Series DT Bonds
|
May 15, 2006
|
|
September 15, 2005
|
2005 Series C Bonds
|
May 15, 2006
|
|
September 30, 2005
|
2005 Series E Bonds
|
May 15, 2006
|
|
May 15, 2006
|
2006 Series A Bonds
|
December 1, 2006
|
RECORDING AND FILING OF SUPPLEMENTAL INDENTURE DATED AS OF MARCH 1, 2011.
|
Further, pursuant to the terms and provisions of the Original Indenture, a Supplemental Indenture dated as of March 1, 2011 providing for the terms of bonds to be issued thereunder of 2011 Series AT has heretofore been entered into between the Company and the Trustee and has been filed in the Office of the Secretary of State of Michigan as a financing statement on April 1, 2011 (Filing No. 2011047676-1), has been filed and recorded in the Office of the Surface Transportation Board on April 1, 2011(Recordation No. 5485-BBBBBB), and has been recorded as a real estate mortgage in the offices of the respective Register of Deeds of certain counties in the State of Michigan, as follows:
|
RECORDING OF CERTIFICATES OF PROVISION FOR PAYMENT.
|
All the bonds of Series A which were issued under the Original Indenture dated as of October 1, 1924, and of Series B, Series C, Series D, Series E, Series F, Series G, Series H, Series I, Series J, Series K, Series L, Series M, Series N, Series O, Series P, Series Q, Series R, Series S, Series T, Series U, Series V, Series W, Series X, Series Y, Series Z, Series AA, Series BB, Series CC, Series DDP Nos. 1-9, Series EE, Series FFR Nos. 1-13, Series GGP Nos. 1-7, Series HH, Series MMP, Series IP Nos. 1-7, Series JJP Nos. 1-7, Series KKP Nos. 1-7, Series LLP Nos. 1-7, Series FFR No. 14, Series NNP Nos. 1-7, Series GGP Nos. 8-22, Series OOP Nos. 1-17, Series PP, Series QQP Nos. 1-9, Series RR, Series SS, Series IIP Nos. 8-22, Series NNP Nos. 8-21, Series TTP Nos. 1-15, Series JJP No. 8, Series KKP No. 8, Series LLP Nos. 8-15, Series MMP No. 2, Series OOP No. 18, Series UU, 1980 Series A, 1980 Series B, Series QQP Nos. 10-19, 1980 Series CP Nos. 1-12, 1980 Series DP Nos. 1-11, 1980 Series CP Nos. 13-25, 1981 Series AP Nos. 1-12, 1981 Series AP Nos. 13-14, 1981 Series AP Nos. 15-16, 1984 Series AP, 1984 Series BP, 1985 Series A, 1985 Series B, Series KKP No. 9, 1986 Series A, 1986 Series B, 1986 Series C, 1987 Series A, 1987 Series B, 1987 Series C, 1987 Series D, 1987 Series E, 1987 Series F, 1989 Series A, Series KKP No. 10, Series KKP No. 11, 1989 Series BP, 1990 Series A, 1990 Series D, 1991 Series EP, 1991 Series FP, 1992 Series BP, Series KKP No. 13, 1992 Series CP, 1992 Series D, Series KKP No. 14, 1989 Series BP No. 2, 1993 Series B, 1993 Series C, 1993, 1993 Series H, 1993 Series E, 1993 Series D, 1993 Series FP, 1993 Series IP, 1993 Series G, 1993 Series J, 1993 Series K, 1994 Series AP, 1994 Series BP, 1994 Series C, Series KKP No. 15, 1994 Series DP, 1995 Series AP, 1995 Series BP, 1999 Series D, 2000 Series A, 2001 Series D, 2005 Series A, and 2005 Series B, which were issued under Supplemental Indentures as described in the Recording and Filing of Supplemental Indentures section above, have matured or have been called for redemption and funds sufficient for such payment or redemption have been irrevocably deposited with the Trustee for that purpose; and Certificates of Provision for Payment have been recorded in the offices of the respective Registers of Deeds of certain counties in the State of Michigan, with respect to all bonds of Series A, B, C, D, E, F, G, H, K, L, M, O, W, BB, CC, DDP Nos. 1 and 2, FFR Nos. 1-3, GGP Nos. 1 and 2, IIP No. 1, JJP No. 1, KKP No. 1, LLP No. 1 and GGP No. 8.
|
|
PART IV.
|
|
|
|
MISCELLANEOUS.
|
|
|
CONFIRMATION OF SECTION 318(c) OF TRUST INDENTURE ACT.
|
Except to the extent specifically provided therein, no provision of this Supplemental Indenture or any future supplemental indenture is intended to modify, and the parties do hereby adopt and confirm, the provisions of Section 318(c) of the Trust Indenture Act which amend and supersede provisions of the Indenture in effect prior to November 15, 1990.
|
|
|
EXECUTION IN COUNTERPARTS.
|
THIS SUPPLEMENTAL INDENTURE MAY BE SIMULTANEOUSLY EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH WHEN SO EXECUTED SHALL BE DEEMED TO BE AN ORIGINAL; BUT SUCH COUNTERPARTS SHALL TOGETHER CONSTITUTE BUT ONE AND THE SAME INSTRUMENT.
|
|
|
TESTIMONIUM.
|
IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY AND THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. HAVE CAUSED THESE PRESENTS TO BE SIGNED IN THEIR RESPECTIVE CORPORATE NAMES BY THEIR RESPECTIVE CHAIRMEN OF THE BOARD, PRESIDENTS, VICE PRESIDENTS, ASSISTANT VICE PRESIDENTS, TREASURERS OR ASSISTANT TREASURERS AND IMPRESSED WITH THEIR RESPECTIVE CORPORATE SEALS, ATTESTED BY THEIR RESPECTIVE SECRETARIES OR ASSISTANT SECRETARIES, ALL AS OF THE DAY AND YEAR FIRST ABOVE WRITTEN.
|
ACKNOWLEDG-MENT OF EXECUTION BY
COMPANY.
|
|
On this 17th day of May, 2011, before me, the subscriber, a Notary Public within and for the County of Wayne, in the State of Michigan, acting in the County of Wayne, personally appeared Donald J. Goshorn, to me personally known, who, being by me duly sworn, did say that he does business at One Energy Plaza, Detroit, Michigan 48226 and is the Assistant Treasurer of THE DETROIT EDISON COMPANY, one of the corporations described in and which executed the foregoing instrument; that he knows the corporate seal of the said corporation and that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and that he subscribed his name thereto by like authority; and said Donald J. Goshorn acknowledged said instrument to be the free act and deed of said corporation.
|
(Notarial Seal)
|
|
/s/Jennifer Evans
Jennifer Evans
Notary Public, Wayne County, MI
Acting in Wayne
My Commission Expires: December 28, 2016
|
|
|
|
ACKNOWLEDG-MENT OF EXECUTION BY TRUSTEE.
|
|
On this 17th day of May, 2011, before me, the subscriber, a Notary Public within and for the County of Wayne, in the State of Michigan, acting in the County of Wayne, personally appeared Alexis M. Johnson, to me personally known, who, being by me duly sworn, did say that her business office is located at 719 Griswold Street, Suite 930, Detroit, Michigan 48226, and she is an Authorized Officer of THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., one of the corporations described in and which executed the foregoing instrument; that she knows the corporate seal of the said corporation and that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and that she subscribed her name thereto by like authority; and said Alexis M. Johnson acknowledged said instrument to be the free act and deed of said corporation.
|
(Notarial Seal)
|
|
/s/Jennifer Evans
Jennifer Evans
Notary Public, Wayne County, MI
Acting in Wayne
My Commission Expires: December 28, 2016
|
AFFIDAVIT AS TO CONSIDERATION AND GOOD FAITH.
|
|
Donald J. Goshorn, being duly sworn, says: that he is the Assistant Treasurer of THE DETROIT EDISON COMPANY, the Mortgagor named in the foregoing instrument, and that he has knowledge of the facts in regard to the making of said instrument and of the consideration therefor; that the consideration for said instrument was and is actual and adequate, and that the same was given in good faith for the purposes in such instrument set forth.
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
June 30
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
2006
|
||||||||||||
(Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pretax earnings
|
$
|
303
|
|
|
$
|
707
|
|
|
$
|
604
|
|
|
$
|
517
|
|
|
$
|
466
|
|
|
$
|
482
|
|
Fixed charges
|
152
|
|
|
328
|
|
|
348
|
|
|
324
|
|
|
319
|
|
|
299
|
|
||||||
Net earnings
|
$
|
455
|
|
|
$
|
1,035
|
|
|
$
|
952
|
|
|
$
|
841
|
|
|
$
|
785
|
|
|
$
|
781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expnese
|
$
|
143
|
|
|
$
|
310
|
|
|
$
|
325
|
|
|
$
|
293
|
|
|
$
|
294
|
|
|
$
|
278
|
|
Adjustments
|
9
|
|
|
18
|
|
|
23
|
|
|
31
|
|
|
25
|
|
|
21
|
|
||||||
Fixed Charges
|
$
|
152
|
|
|
$
|
328
|
|
|
$
|
348
|
|
|
$
|
324
|
|
|
$
|
319
|
|
|
$
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ration of earnings to fixed charges
|
$
|
2.99
|
|
|
$
|
3.16
|
|
|
$
|
2.74
|
|
|
$
|
2.60
|
|
|
$
|
2.46
|
|
|
$
|
2.61
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of DTE Energy Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ GERARD M. ANDERSON
|
|
Date:
|
July 28, 2011
|
Gerard M. Anderson
|
|
|
|
President and Chief Executive Officer of DTE Energy Company
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of DTE Energy Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ DAVID E. MEADOR
|
|
Date:
|
July 28, 2011
|
David E. Meador
|
|
|
|
Executive Vice President and Chief Financial Officer of DTE Energy Company
|
|
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
July 28, 2011
|
/S/ GERARD M. ANDERSON
|
|
|
|
Gerard M. Anderson
|
|
|
|
President and Chief Executive Officer
of DTE Energy Company
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
July 28, 2011
|
/S/ DAVID E. MEADOR
|
|
|
|
David E. Meador
|
|
|
|
Executive Vice President and Chief Financial
Officer of DTE Energy Company
|
|