February 12, 2008   

The Michigan Public Service Commission (MPSC) today issued an order authorizing The Detroit Edison Company to increase its bond principal and interest securitization surcharge from 3.66 mills per kilowatt-hour to 3.71 mills per kilowatt-hour and to increase its tax surcharge from 1.21 mills per kilowatt-hour to 1.31 mills per kilowatt-hour.  The increases are effective from March 1 through Feb. 28, 2009.

The MPSC notes that the increase in the securitization bond surcharge is due to an increase in the required principal payment.  It has been slightly offset by a decrease in interest charges, an increase in sales, and the elimination of the prior period over-recoveries.

The increase in the securitization bond tax surcharge is driven by the annual increase in the bond principal payment, slightly offset by an increase in sales and the elimination of the prior period over-recoveries.  The bond principal payment increases each year and is not tax deductible, thereby increasing the tax charge.

The utility's request is part of the periodic true-ups required by the MPSC's Nov. 2, 2000 order that authorized Detroit Edison to securitize up to $1,774,000,000 of regulatory assets and other qualified costs.

The MPSC in today's order noted that the proposed adjustments are routine, mathematically accurate, and comply with the approved methodology.

Detroit Edison requested the increases on Jan. 14.

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-12478