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EXHIBIT 99-37
November 22, 2000
DETROIT EDISON MOVES CLOSER TO RATE CUT FOR ALL CUSTOMERS
DETROIT - Detroit Edison today moved another step closer to issuing
rate reduction bonds that will result in lower electric rates for all of its
customers in Southeastern Michigan. Detroit Edison requested confirmation and
clarification from the Michigan Public Service Commission (MPSC) regarding
several provisions in the commission's Nov. 2 order authorizing the utility to
issue the rate reduction bonds. The order allows for the securitization, or
refinancing, of the company's qualifying assets.
Through the sale of the bonds, Detroit Edison will refinance its
qualifying assets at lower costs creating savings that will be passed on to all
residential and business customers in the form of lower rates. Residential
customers began benefiting from a 5-percent rate cut in June as authorized by
restructuring legislation signed by Gov. John Engler. Business customers will
receive the benefit of lower rates following the issuance of the rate reduction
bonds. Additionally, securitization will provide funding of low-income and
energy efficiency programs.
In its request filed with the commission today, Detroit Edison seeks to
clarify that the savings passed along to customers through lower rates should
not exceed the savings realized through securitization. The utility also seeks
to clarify the commission's apparent intent to ensure that customers who choose
bundled rates under the traditional utility structure and those who choose
unbundled rates through electric choice programs all benefit similarly from the
issuance of the bonds. The utility presented implementation steps that would
assure the commission of this result.
In addition, in its Nov. 2 order, the commission indicated that costs
associated with the residential rate cut incurred between Nov. 2, the date of
the commission order, and the bond issuance date would be recoverable. However,
no mechanism for recovery was outlined. In the request filed today, Detroit
Edison put forth a specific mechanism to address this recovery. The company
proposed that if the rate reduction bonds are issued before March 31, 2001,
costs would be recovered through securitization savings. If the bonds are issued
after that date, the costs will be included in the securitization total, but not
in excess of the $1.77 billion total authorized by the commission.
"We believe that today's filing will ensure that the restructuring
vision of the state legislature and Gov. Engler will be realized in a way that
will provide benefits to all electricity users in Southeastern Michigan," said
Anthony F. Earley Jr., chairman and chief executive officer. "By requesting
clarification now, we are providing assurances to business customers of genuine
savings without potential delays down the road."
Earley said that the commission is likely to issue a revised, final
securitization order by mid to late December, after which Detroit Edison will
proceed with arranging the financing, which is expected in the first quarter of
2001.
DTE Energy is a Detroit-based diversified energy company involved in
the development and management of energy-related businesses and services
nationwide. DTE Energy's principal operating subsidiary is Detroit Edison, an
electric utility serving 2.1 million customers in Southeastern Michigan. DTE
Energy announced in October 1999, plans to merge with MCN Energy Group, parent
company of Michigan Consolidated Gas Co., a natural gas utility serving 1.2
million customers in Michigan. The proposed company, DTE Energy, would be the
largest energy utility in the state. Information about DTE Energy is available
on the World Wide Web at http://www.dteenergy.com.
This press release contains forward-looking statements; and the
estimates contained herein are subject to a number of variables discussed in the
company's reports filed with the Securities and Exchange Commission.
For Further Information:
Lewis K. Layton Lorie N. Kessler
(313) 235-8809 (313) 235-8807
