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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 14, 1998
COMMISSION EXACT NAME OF REGISTRANT AS I.R.S. EMPLOYER
FILE NUMBER SPECIFIED IN ITS CHARTER IDENTIFICATION NO.
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1-11607 DTE ENERGY COMPANY
(A MICHIGAN CORPORATION) 38-3217752
2000 2ND AVENUE
DETROIT, MICHIGAN 48226-1279
313-235-4000
1-2198 THE DETROIT EDISON COMPANY
(A MICHIGAN CORPORATION) 38-0478650
2000 2ND AVENUE
DETROIT, MICHIGAN 48226-1279
313-235-8000
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ITEM 5. OTHER EVENTS.
As discussed in Notes 1 and 3 of the Notes to Consolidated Financial
Statements appearing in the DTE Energy Company and The Detroit Edison Company
Annual Report on Form 10-K for the year ended December 31, 1997, the Michigan
Public Service Commission (MPSC) has established a capacity factor performance
standard which provides for the disallowance of net incremental replacement
power cost if Fermi 2 does not perform to certain operating criteria. A
disallowance will be imposed for the amount by which the Fermi 2 three-year
rolling average capacity factor is less than the greater of either the average
of the top 50% of U.S. boiling water reactors or 50%. An estimate of the
incremental cost of replacement power is required in computing the reserve for
amounts due customers under this performance standard. At December 31, 1997 and
1996, Detroit Edison had accruals of $74 million and $72.9 million,
respectively, for the disallowances that are expected to be imposed by the MPSC.
Due primarily to an increase in the estimate of the incremental cost of
replacement power at September 30, 1998, Detroit Edison recorded an increase in
the Fermi 2 capacity factor performance standard accrual of $34 million ($22
million after-tax) or $0.15 per common share.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrants have duly caused this report to be signed on their behalf by the
undersigned, hereunto duly authorized.
DTE ENERGY COMPANY
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(Registrant)
By: /s/ David E. Meador
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David E. Meador
Vice President and Controller
THE DETROIT EDISON COMPANY
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(Registrant)
By: /s/ David E. Meador
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David E. Meador
Vice President and Controller
Date: October 14, 1998
