-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, InYZnCkSLYRDyrJurV4m/UK087h/dLbZrnMkbvIIH8VCS9J2yiN4MwKD/yOVNuR9 r1zLgGcd8kWQsD0d8mm5/Q== 0000950123-02-010910.txt : 20021114 0000950123-02-010910.hdr.sgml : 20021114 20021114142647 ACCESSION NUMBER: 0000950123-02-010910 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20020930 FILED AS OF DATE: 20021114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DETROIT EDISON SECURITIZATION FUNDING LLC CENTRAL INDEX KEY: 0001128956 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-51066 FILM NUMBER: 02824237 BUSINESS ADDRESS: STREET 1: 2000 SECOND AVE STREET 2: 2412 WCB CITY: DETROIT STATE: MI ZIP: 48226-1279 BUSINESS PHONE: 3132358670 MAIL ADDRESS: STREET 1: 2000 SECOND AVE STREET 2: 2412 WCB CITY: DETROIT STATE: MI ZIP: 48226-1279 10-Q 1 k72375e10vq.htm QUARTERLY REPORT DATED 9/30/02 Quarterly Report
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
____________________

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 
For the quarter ended September 30, 2002

 

Commission file number 333-51066

The registrant meets the conditions set forth in General Instruction H(1) (a) and (b) of Form 10-Q and is, therefore, filing this Form with the reduced disclosure format.

THE DETROIT EDISON SECURITIZATION FUNDING LLC
(a Michigan limited liability company)

(Exact name of registrant as specified in its charter)
     
Michigan
(State or other jurisdiction of
incorporation or organization)		   38-0478650
(I.R.S. Employer
Identification No.)
     
2000 2nd Avenue, Detroit, Michigan
(Address of principal executive offices)		   48226-1279
(Zip Code)

313-235-8000
Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x    No  

 

Item 2. Management’s Narrative Analysis of the Results of Operations
Item 4. Controls and Procedures
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Statement of Operations
Statement of Financial Position
Statement of Cash Flows
Statement of Member’s Equity
Notes to Financial Statements
Independent Accountants’ Report
PART II — OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
CERTIFICATIONS
Exhibit Index
Monthly Servicer Certificate dated 8/14/02
Semi Annual Servicer Certificate dated 8/31/02
Monthly Servicer Certificate dated 9/12/02
Monthly Servicer Certificate dated 10/14/02
CEO Certificate of Periodic Report
CFO Certification of Periodic Report

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The Detroit Edison Securitization Funding LLC

Quarterly Report on Form 10-Q
Quarter Ended September 30, 2002

Table of Contents

             
        PAGE
        NUMBER
       
PART I — FINANCIAL INFORMATION
        
 
Item 1. Financial Statements
        
   
Statement of Operations
     4  
   
Statement of Financial Position
     5  
   
Statement of Cash Flows
     6  
   
Statement of Member’s Equity
     7  
   
Notes to Financial Statements
     8  
   
Independent Accountants’ Report
     9  
 
 
Item 2. Management’s Narrative Analysis of the Results of Operations
     1  
 
 
Item 4. Controls and Procedures
     3  
 
PART II — OTHER INFORMATION
        
 
Item 6. Exhibits and Reports on Form 8-K
     10  
 
SIGNATURE
     11  
 
CERTIFICATIONS
     12  

 

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FORWARD-LOOKING STATEMENTS

Certain information presented herein includes forward-looking statements. Forward-looking statements involve certain risks and uncertainties that may cause actual future results to differ materially from those contemplated, projected, estimated or budgeted in such forward-looking statements. Securitization bondholders may suffer payment delays or losses if the Detroit Edison Securitization Funding LLC’s (“Company’s”) assets are not sufficient to pay interest or the scheduled principal of the securitization bonds. Funds for payments are dependent upon the securitization property and the right to collect the securitization surcharge over a period limited by Michigan statute to 15 years. In addition, collections are dependent on the level of Detroit Edison electric deliveries to customers.

MANAGEMENT’S NARRATIVE ANALYSIS OF THE RESULTS OF OPERATIONS

The Results of Operations discussion for the Company is presented in accordance with General Instruction H(2) (a) of Form 10-Q.

The Company is a special purpose entity established by The Detroit Edison Company (“Detroit Edison”) to recover certain stranded costs, called Securitization Property by Michigan statute. The stranded costs primarily represent Detroit Edison’s unamortized investment in the 1,150 megawatt Fermi 2 nuclear power plant that was classified as a regulatory asset. On March 9, 2001 the Company issued securitization bonds (“Bonds”) and used the net proceeds to purchase Securitization Property from Detroit Edison. The Company receives revenues that are intended to recover its costs and service its debt. Amortization expense associated with the Securitization Property is adjusted as necessary so that expenses equal revenues and interest income.

For the three-month period ended September 30, 2002, the Company earned $58,576,000 in surcharge revenues and $298,000 in interest income compared to $48,875,000 in surcharge revenues and $304,000 in interest income for the three-month period of 2001. The increase in surcharge revenues is due to weather driven higher electricity sales by Detroit Edison. Amortization expense consists of amortization of the Securitization Property, overcollateralization fee, and over-recovery of securitization surcharge (“SC”). The amortization expense for the three-month periods ended September 30, 2002 and 2001 was $32,085,000 and $21,973,000, respectively. The increase in amortization expense reflects the adjustment needed to have revenues and interest income equal expenses. The larger adjustment was primarily attributable to the increase in surcharge revenues. During the 2002 three-month period, the Company also incurred interest expense of $26,142,000, amortization of issuance cost of $351,000, servicing fees of $218,000, and administrative fees of $62,000 compared to interest expense of $26,797,000, amortization of issuance cost of $128,000, servicing fees of $218,000, and administrative fees of $63,000 for the 2001 three-month period.

For the nine-month period ended September 30, 2002, the Company earned $157,095,000 in surcharge revenues and $842,000 in interest income compared to $97,462,000 in surcharge revenues and $552,000 in interest income for the nine-month period of 2001. The increase in surcharge revenues is due to weather driven higher electricity sales by Detroit Edison, as well as the fact that the Company was not formed until March 2001. The amortization expense for the nine-month periods ended September 30, 2002 and 2001 was $76,997,000 and $37,014,000, respectively. The increase in amortization expense reflects the adjustment needed to have

1

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revenues and interest income equal expenses. The larger adjustment was primarily attributable to the increase in surcharge revenues. During the 2002 nine-month period, the Company also incurred interest expense of $79,052,000, amortization of issuance cost of $984,000, servicing fees of $656,000, and administrative fees of $187,000 compared to interest expense of $60,168,000, amortization of issuance cost of $176,000, servicing fees of $510,000, and administrative fees of $146,000 for the 2001 nine-month period.

Detroit Edison, as Servicer, collects a surcharge from its customers for the benefit of the Company and the Securitization Bondholders based on an initial $0.0032 per kilowatthour rate. This surcharge rate was modified to $0.0041 on September 1, 2001 and to $0.00392 effective March 1, 2002. Due to the time lag between the SC billed to customers and amounts collected from those customers, Detroit Edison began cash remittance to the Trustee for SC collections on May 14, 2001.

Under a Michigan Public Service Commission financing order, Detroit Edison has implemented an annual adjustment to the SC to provide sufficient funds for timely payments related to the Bonds.

2

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CONTROLS AND PROCEDURES

(a)   Evaluation of disclosure controls and procedures

    The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-14(c) and 15d-14(d)) as of a date within 90 days before the filing of this quarterly report, and have concluded that, as of the evaluation date, such controls and procedures were effective at ensuring that required information will be disclosed on a timely basis in reports filed under the Exchange Act.

(b)   Changes in internal controls

    There have been no significant changes (including corrective actions with regard to significant deficiencies or material weaknesses) in the Company’s internal controls or in other factors that could significantly affect these controls subsequent to the evaluation date referenced in paragraph (a) above.

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THE DETROIT EDISON SECURITIZATION FUNDING LLC
STATEMENT OF OPERATIONS (Unaudited)

                                   
      Three Months Ended   Nine Months Ended
      September 30   September 30
     
 
      2002   2001   2002   2001
     
 
 
 
(in Thousands)                                
Operating Revenues
   $ 58,576     $ 48,875     $ 157,095     $ 97,462  
 
    
     
     
     
 
Operating Expenses
                                
 
Amortization expense
     32,085       21,973       76,997       37,014  
 
Servicing fees
     218       218       656       510  
 
Administrative fees
     62       63       187       146  
 
Other
     16       —       61       —  
 
    
     
     
     
 
 
     32,381       22,254       77,901       37,670  
 
    
     
     
     
 
Operating Income
     26,195       26,621       79,194       59,792  
 
    
     
     
     
 
Interest Expense and Other
                                
 
Interest expense
     26,142       26,797       79,052       60,168  
 
Interest income
     (298 )     (304 )     (842 )     (552 )
 
Amortization of debt issuance costs
     351       128       984       176  
 
    
     
     
     
 
 
     26,195       26,621       79,194       59,792  
 
    
     
     
     
 
Net Income
   $ —     $ —     $ —     $ —  
 
    
     
     
     
 

See Notes to Financial Statements (Unaudited)

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THE DETROIT EDISON SECURITIZATION FUNDING LLC
STATEMENT OF FINANCIAL POSITION

                   
      September 30        
      2002   December 31
(in Thousands)   (Unaudited)   2001
 
 
ASSETS
                
Current Assets
                
 
Cash and cash equivalents
   $ 2,902     $ 2,872  
 
Restricted cash
     35,823       67,840  
 
Accounts receivable
     31,049       22,406  
 
Accrued unbilled revenues
     8,458       7,047  
 
 
    
     
 
 
     78,232       100,165  
 
 
    
     
 
Securitized Regulatory Assets
                
 
Securitization property, less accumulated amortization of $83,279 and $27,380, respectively
     1,636,436       1,692,335  
 
Unamortized bond issuance cost, less accumulated amortization of $1,467 and $482, respectively
     28,818       29,803  
 
 
    
     
 
 
     1,665,254       1,722,138  
 
 
    
     
 
 
   $ 1,743,486     $ 1,822,303  
 
 
    
     
 
LIABILITIES AND MEMBER’S EQUITY
                
Current Liabilities
                
 
Accounts payable
   $ 2,771     $ 2,809  
 
Accrued interest
     8,607       35,681  
 
Accounts payable to member
     94       375  
 
Current portion of securitization bonds payable
     88,266       72,521  
 
Regulatory liability
     49,061       28,432  
 
 
    
     
 
 
     148,799       139,818  
 
 
    
     
 
Non-Current Liabilities and Deferred Credits
                
 
Securitization bonds payable
     1,584,948       1,673,214  
 
Other
     989       521  
 
 
    
     
 
 
     1,585,937       1,673,735  
 
 
    
     
 
Member’s Equity
     8,750       8,750  
 
 
    
     
 
 
   $ 1,743,486     $ 1,822,303  
 
 
    
     
 

See Notes to Financial Statements (Unaudited)

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THE DETROIT EDISON SECURITIZATION FUNDING LLC
STATEMENT OF CASH FLOWS (Unaudited)

                       
          Nine Months Ended
September 30
         
(in Thousands)   2002   2001
 
 
Operating Activities
                
 
Net income
   $ —     $ —  
 
Adjustments to reconcile net income to net cash from operating activities:
                
   
Amortization
     77,981       37,190  
 
Changes in current assets and liabilities:
                
   
Accounts receivable
     (10,054 )     (35,263 )
   
Interest payable
     (27,074 )     8,920  
   
Accounts payable
     (297 )     94  
 
 
    
     
 
Net cash from operating activities
     40,556       10,941  
 
 
    
     
 
Investing Activities
                
 
Restricted cash
     32,017       (15,380 )
 
Purchase of securitized property
     —       (1,719,715 )
 
Capitalization of issuance cost
     (22 )     (26,510 )
 
 
    
     
 
Net cash from (used for) investing activities
     31,995       (1,761,605 )
 
 
    
     
 
Financing Activities
                
 
Issuance of bonds
     —       1,750,000  
 
Member’s investment
     —       8,750  
 
Payment of bonds
     (72,521 )     (4,265 )
 
 
    
     
 
Net cash from (used for) financing activities
     (72,521 )     1,754,485  
 
 
    
     
 
Net Increase in Cash and Cash Equivalents
     30       3,821  
Cash and Cash Equivalents at Beginning of the Period
     2,872       —  
 
 
    
     
 
Cash and Cash Equivalents at End of the Period
   $ 2,902     $ 3,821  
 
 
    
     
 
Supplementary Cash Flow Information
                
 
Interest paid
   $ 106,126     $ 51,248  
 
 
    
     
 

See Notes to Financial Statements (Unaudited)

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THE DETROIT EDISON SECURITIZATION FUNDING LLC
STATEMENT OF MEMBER’S EQUITY (Unaudited)

                   
      Nine Months Ended
      September 30
     
      2002   2001
(in Thousands)  
 
Balance beginning of period
   $ 8,750     $ —  
Add:
                
 
Member’s contribution
     —       8,750  
 
    
     
 
Balance end of period
   $ 8,750     $ 8,750  
 
    
     
 

See Notes to Financial Statements (Unaudited)

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The Detroit Edison Securitization Funding LLC
Notes to Financial Statements (Unaudited)

NOTE 1 — GENERAL

The financial statements included herein should be read in conjunction with the notes to financial statements contained in the 2001 Annual Report to the Securities and Exchange Commission on Form 10-K.

The accompanying financial statements were prepared in conformity with accounting principles generally accepted in the United States of America. In connection with their preparation, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

The financial statements are unaudited, but in the opinion of the Company, include all adjustments necessary for a fair statement of the results for the interim periods. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year.

NOTE 2 — LONG-TERM DEBT

The Company retired $35,395,000 of Bonds during the first quarter of 2002 and $37,126,000 of Bonds during the third quarter of 2002.

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Independent Accountants’ Report

To the Managers of
The Detroit Edison Securitization Funding LLC

We have reviewed the accompanying condensed statement of financial position of The Detroit Edison Securitization Funding LLC as of September 30, 2002, and the related condensed statement of operations for the three-month and nine-month periods ended September 30, 2002 and 2001, and the condensed statements of cash flows and member's equity for the nine-month periods ended September 30, 2002 and 2001. These financial statements are the responsibility of The Detroit Edison Securitization Funding LLC’s management.

We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and of making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to such condensed financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the statement of financial position of The Detroit Edison Securitization Funding LLC as of December 31, 2001, and the related statements of operations, cash flows and member’s equity for the year then ended (not presented herein); and in our report dated February 26, 2002, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed statement of financial position as of December 31, 2001 is fairly stated, in all material respects, in relation to the statement of financial position from which it has been derived.

/s/ DELOITTE & TOUCHE LLP

Detroit, Michigan
November 4, 2002

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Exhibits and Reports on Form 8-K

(a)   Exhibits

     
Exhibit    
Number   Description
 
99-23   Monthly Servicer Certificate dated August 14, 2002
     
99-24   Semi-Annual Servicer Certificate dated August 31, 2002
     
99-25   Monthly Servicer Certificate dated September 12, 2002
     
99-26   Monthly Servicer Certificate dated October 14, 2002
     
99-27   Chief Executive Officer Certification of Periodic Report
     
99-28   Chief Financial Officer Certification of Periodic Report

(b)   Reports on Form 8-K

None.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

         
        THE DETROIT EDISON
SECURITIZATION FUNDING LLC
 
Date: November 13, 2002   By:   /s/ DANIEL G. BRUDZYNSKI
Daniel G. Brudzynski
Controller and Chief Financial Officer

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FORM 10-Q CERTIFICATION

I, David E. Meador, Manager and Chief Executive Officer of The Detroit Edison Securitization Funding LLC, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of The Detroit Edison Securitization Funding LLC;

2.   Based on my knowledge, this quarterly 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 quarterly report;

3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report;

4.   The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

  (a)   designed such disclosure controls and procedures 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 quarterly report is being prepared;

  (b)   evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

  (c)   presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.   The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

  (a)   all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and

  (b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.   The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

     
/s/ DAVID E. MEADOR
David E. Meador
Manager and Chief Executive Officer of
The Detroit Edison Securitization Funding LLC		   Date: November 13, 2002

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FORM 10-Q CERTIFICATION

I, Daniel G. Brudzynski, Controller and Chief Financial Officer of The Detroit Edison Securitization Funding LLC, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of The Detroit Edison Securitization Funding LLC;

2.   Based on my knowledge, this quarterly 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 quarterly report;

3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report;

4.   The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

  (a)   designed such disclosure controls and procedures 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 quarterly report is being prepared;

  (b)   evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

  (c)   presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.   The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

  (a)   all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and

  (b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.   The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

     
/s/ DANIEL G. BRUDZYNSKI
Daniel G. Brudzynski
Controller and Chief Financial Officer of
The Detroit Edison Securitization Funding LLC		   Date: November 13, 2002

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The Detroit Edison Securitization Funding LLC
Quarterly Report on Form 10-Q for Quarter Ended September 30, 2002
File No. 333-51066

Exhibit Index

     
Exhibit    
Number   Description
 
99-23   Monthly Servicer Certificate dated August 14, 2002
99-24   SemiAnnual Servicer Certificate as of August 31, 2002
99-25   Monthly Servicer Certificate dated September 12, 2002
99-26   Monthly Servicer Certificate dated October 14, 2002
99-27   Chief Executive Officer Certification of Periodic Report
99-28   Chief Financial Officer Certification of Periodic Report

EX-99.23 3 k72375exv99w23.txt MONTHLY SERVICER CERTIFICATE DATED 8/14/02 MONTHLY SERVICER CERTIFICATE Pursuant to Section 4.01(d)(ii) of the Securitization Property Servicing Agreement, dated as of March 9, 2001 (the "Agreement"), between The Detroit Edison Company, as servicer (the "Servicer") and The Detroit Edison Securitization Funding LLC, the Servicer does hereby certify as follows: Capitalized terms used herein have their respective meanings as set forth in the Agreement. For the Monthly Period: July 2002 1. BILLINGS: a) Monthly kWh Consumption: 5,017,991,149 b) Applicable SB Charge: $ 0.00392 ---------------- c) Total SB Charge Amount Invoiced this Month (Net of .5% uncollectible factor): $ 19,569,775.83 ---------------- d) Cumulative SB Charge Amount Invoiced this Remittance Period: $ 116,525,821.86 ---------------- 2. REMITTANCES: a) Weighted Average Days outstanding: 45 ---------------- b) Total Amount Remitted this Month: $ 16,145,034.03 ---------------- c) Cumulative Amount Remitted this Remittance Period: $ 110,733,149.76 ---------------- 3. BALANCES ON SUBACCOUNTS (AT END OF MONTHLY PERIOD): a) Collection Account Balance*: $ 80,831,240.22 ---------------- b) Reserve Subaccount Balance: 0 ---------------- c) Series Overcollateralization Subaccount Balance: 0 ---------------- d) Series Capital Subaccount Balance: $ 8,750,000.00 ----------------
Executed as of August 14, 2002. * Includes Subaccounts interest THE DETROIT EDISON COMPANY as Servicer By: -------------------------------------- Name: Michael G. VanHaerents Title: Manager, Regulatory Planning and Analysis EX-99.24 4 k72375exv99w24.txt SEMI ANNUAL SERVICER CERTIFICATE DATED 8/31/02 SEMIANNUAL SERVICER CERTIFICATE AS OF AUGUST 31, 2002 Pursuant to Section 4.01(d)(iii) of the Securitization Property Servicing Agreement, dated as of March 9, 2001 (the "Agreement"), between The Detroit Edison Company, as servicer and The Detroit Edison Securitization Funding LLC, the Servicer does hereby certify, for the current Payment Date, as follows: Capitalized terms used herein have their respective meanings as set forth in the Agreement. References herein to certain sections and subsections are references to the respective sections of the Agreement. 1. ESTIMATED SB CHARGE PAYMENTS AND AGGREGATE AMOUNTS AVAILABLE FOR THE CURRENT PAYMENT DATE: i. Amount Remitted - March 2002 $ 17,105,905 ii. Amount Remitted - April 2002 19,632,814 iii. Amount Remitted - May 2002 14,600,486 iv. Amount Remitted - June 2002 15,355,429 v. Amount Remitted - July 2002 16,145,034 vi. Amount Remitted - August 2002 14,701,069 -------------- vii. Total Amount Remitted for this Period (sum of i. through vi. above) $ 97,540,737 viii. Net Earnings on Collection Account (accrued March thru July 31, 2002) 401,443 ix. Expenses Paid to Date (March thru July 31, 2002) 57,945 -------------- x. General Subaccount Balance (sum of vii. and viii. above minus ix.) $ 97,884,235 xi. Reserve Subaccount Balance 0 xii. Overcollateralization Subaccount Balance 0 xiii. Capital Subaccount Balance 6,563,756 -------------- xiv. Collection Account Balance (sum of x. through xiii. above) $ 104,447,991 ==============
2. OUTSTANDING PRINCIPAL BALANCE AS OF PRIOR PAYMENT DATE BY TRANCHE: i. Class A-1 Principal Balance Outstanding Securitization Bond $ 84,880,282 ii. Class A-2 Principal Balance Outstanding Securitization Bond 179,037,815 iii. Class A-3 Principal Balance Outstanding Securitization Bond 322,791,421 iv. Class A-4 Principal Balance Outstanding Securitization Bond 406,722,416 v. Class A-5 Principal Balance Outstanding Securitization Bond 326,236,780 vi. Class A-6 Principal Balance Outstanding Securitization Bond 390,671,263 -------------- vii. Total Securitization Bond Principal Balance $1,710,339,977 ==============
3. REQUIRED FUNDING/PAYMENTS AS OF CURRENT PAYMENT DATE: a) PROJECTED PRINCIPAL BALANCES AND PAYMENTS
Projected Principal Balance Principal Due ----------------- -------------- i. Class A-1 Securitization Bond $ 47,753,889 $ 37,126,393 ii. Class A-2 Securitization Bond 179,037,815 0 iii. Class A-3 Securitization Bond 322,791,421 0 iv. Class A-4 Securitization Bond 406,722,416 0 v. Class A-5 Securitization Bond 326,236,780 0 vi. Class A-6 Securitization Bond 390,671,263 0 ----------------- -------------- vii. Total Required Principal Amount $ 1,673,213,584 $ 37,126,393 ================= ==============
b) REQUIRED INTEREST PAYMENTS
Securitization Days in Bond Applicable Interest Rate Period Interest Due -------------- ---------- ------------ i. Class A-1 Securitization Bond 5.180% 180 $ 2,198,399 ii. Class A-2 Securitization Bond 5.510% 180 4,932,492 iii. Class A-3 Securitization Bond 5.875% 180 9,481,998 iv. Class A-4 Securitization Bond 6.190% 180 12,588,059 v. Class A-5 Securitization Bond 6.420% 180 10,472,201 vi. Class A-6 Securitization Bond 6.620% 180 12,931,219 ------------ vii. Total Required Interest Amount $ 52,604,367 ============
c) PROJECTED SUBACCOUNT PAYMENTS AND LEVELS
Subaccount Projected Level Funding Required - ---------- --------------- ---------------- i. Capital Subaccount $ 8,750,000 $ 2,186,244 ii. Overcollateralization Subaccount 937,500 937,500 --------------- ---------------- iii. Total Subaccount Payments and Levels $ 9,687,500 $ 3,123,744 =============== ================
4. ALLOCATION OF REMITTANCES AS OF CURRENT PAYMENT DATE PURSUANT TO SECTION 8.02 OF INDENTURE: a) SEMIANNUAL EXPENSES
Net Expense Amount (Payable on current Payment Date) i. Trustee Fees and Expenses $ 0 ii. Semiannual Total of Servicing Fee 437,500 iii. Semiannual Administration Fee 125,000 iv. Operating Expenses (subject to $100,000 cap) 0 -------- v. Total Expenses $562,500 ========
2 b) SEMIANNUAL INTEREST
Aggregate ----------- i. Class A-1 Securitization Bond $ 2,198,399 ii. Class A-2 Securitization Bond 4,932,492 iii. Class A-3 Securitization Bond 9,481,998 iv. Class A-4 Securitization Bond 12,588,059 v. Class A-5 Securitization Bond 10,472,201 vi. Class A-6 Securitization Bond 12,931,219 ----------- vii. Total Semiannual Interest $52,604,367 ===========
c) SEMIANNUAL PRINCIPAL
Aggregate ----------- i. Class A-1 Securitization Bond $37,126,393 ii. Class A-2 Securitization Bond 0 iii. Class A-3 Securitization Bond 0 iv. Class A-4 Securitization Bond 0 v. Class A-5 Securitization Bond 0 vi. Class A-6 Securitization Bond 0 ----------- vii. Total Semiannual Principal $37,126,393 ===========
d) OTHER PAYMENTS i. Operating Expenses (in excess of $100,000) $ 0 ii. Funding of Series Capital Subaccount (to required amount) 2,186,244 iii. Funding of Series Overcollateralization Subaccount (to required level) 937,500 iv. Deposits to Reserve Subaccount 4,467,231
5. OUTSTANDING PRINCIPAL BALANCE AND COLLECTION ACCOUNT BALANCE AS OF CURRENT PAYMENT DATE (AFTER GIVING EFFECT TO PAYMENTS TO BE MADE ON SUCH DISTRIBUTION DATE): a) PRINCIPAL BALANCE OUTSTANDING: i. Class A-1 Principal Balance Outstanding Securitization Bond $ 47,753,889 ii. Class A-2 Principal Balance Outstanding Securitization Bond 179,037,815 iii. Class A-3 Principal Balance Outstanding Securitization Bond 322,791,421 iv. Class A-4 Principal Balance Outstanding Securitization Bond 406,722,416 v. Class A-5 Principal Balance Outstanding Securitization Bond 326,236,780 vi. Class A-6 Principal Balance Outstanding Securitization Bond 390,671,263 -------------- vii. Total Securitization Bond Principal Balance $1,673,213,584 ==============
b) COLLECTION ACCOUNT BALANCES OUTSTANDING: i. Series Capital Subaccount $ 8,750,000 ii. Series Overcollateralization Subaccount 937,500 iii. Reserve Subaccount 4,467,231 ----------- iv. Total Subaccount Amount $14,154,731 ===========
3 6. SUBACCOUNT BALANCES AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02 OF INDENTURE): i. Series Capital Subaccount $ 8,750,000 ii. Series Overcollateralization Subaccount 937,500 iii. Reserve Subaccount 4,467,231 ----------- iv. Total Subaccount Balances $14,154,731 ===========
7. SHORTFALLS IN INTEREST AND PRINCIPAL PAYMENTS AS OF CURRENT PAYMENT DATE (IF APPLICABLE): a) SEMIANNUAL INTEREST SHORTFALL i. Class A-1 Securitization Bond $ 0 ii. Class A-2 Securitization Bond 0 iii. Class A-3 Securitization Bond 0 iv. Class A-4 Securitization Bond 0 v. Class A-5 Securitization Bond 0 vi. Class A-6 Securitization Bond 0 ------ vii. Total Semiannual Interest Shortfall $ 0 ======
b) SEMIANNUAL PRINCIPAL SHORTFALL i. Class A-1 Securitization Bond $ 0 ii. Class A-2 Securitization Bond 0 iii. Class A-3 Securitization Bond 0 iv. Class A-4 Securitization Bond 0 v. Class A-5 Securitization Bond 0 vi. Class A-6 Securitization Bond 0 ------ vii. Total Semiannual Principal Shortfall $ 0 ======
8. SHORTFALLS IN REQUIRED SUBACCOUNT LEVELS AS OF CURRENT DISTRIBUTION DATE: i. Series Capital Subaccount $ 0 ii. Series Overcollateralization Subaccount 0 ------ iii. Total Subaccount Shortfalls $ 0 ======
IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Semiannual Servicer Certificate this __ day of __________. THE DETROIT EDISON COMPANY, as Servicer By: -------------------------------------- Name: Title: 4 EX-99.25 5 k72375exv99w25.txt MONTHLY SERVICER CERTIFICATE DATED 9/12/02 MONTHLY SERVICER CERTIFICATE Pursuant to Section 4.01(d)(ii) of the Securitization Property Servicing Agreement, dated as of March 9, 2001 (the "Agreement"), between The Detroit Edison Company, as servicer (the "Servicer") and The Detroit Edison Securitization Funding LLC, the Servicer does hereby certify as follows: Capitalized terms used herein have their respective meanings as set forth in the Agreement. For the Monthly Period: August 2002 1. BILLINGS: a) Monthly kWh Consumption: 5,463,706,569 ---------------- b) Applicable SB Charge: $ 0.00392 ---------------- c) Total SB Charge Amount Invoiced this Month (Net of .5% uncollectible factor): $ 21,320,631.35 ---------------- d) Cumulative SB Charge Amount Invoiced this Remittance Period: $ 137,846,453.21 ---------------- 2. REMITTANCES: a) Weighted Average Days outstanding: 45 ---------------- b) Total Amount Remitted this Month: $ 14,701,068.51 ---------------- c) Cumulative Amount Remitted this Remittance Period: $ 125,434,218.27 ---------------- 3. BALANCES ON SUBACCOUNTS (AT END OF MONTHLY PERIOD): a) Collection Account Balance*: $ 95,946,529.07 ---------------- b) Reserve Subaccount Balance: 0 ---------------- c) Series Overcollateralization Subaccount Balance: 0 ---------------- d) Series Capital Subaccount Balance: $ 8,750,000.00 ----------------
Executed as of September 12, 2002. * Includes Subaccounts interest THE DETROIT EDISON COMPANY as Servicer By: -------------------------------------- Name: Michael G. VanHaerents Title: Manager, Regulatory Planning and Analysis EX-99.26 6 k72375exv99w26.txt MONTHLY SERVICER CERTIFICATE DATED 10/14/02 MONTHLY SERVICER CERTIFICATE Pursuant to Section 4.01(d)(ii) of the Securitization Property Servicing Agreement, dated as of March 9, 2001 (the "Agreement"), between The Detroit Edison Company, as servicer (the "Servicer") and The Detroit Edison Securitization Funding LLC, the Servicer does hereby certify as follows: Capitalized terms used herein have their respective meanings as set forth in the Agreement. For the Monthly Period: September 2002 1. BILLINGS: a) Monthly kWh Consumption: 4,566,280,574 --------------- b) Applicable SB Charge: $ 0.00392 --------------- c) Total SB Charge Amount Invoiced this Month (Net of .5% uncollectible factor): $ 17,838,267.68 --------------- d) Cumulative SB Charge Amount Invoiced this Remittance Period: $155,684,720.90 --------------- 2. REMITTANCES: a) Weighted Average Days outstanding: 45 --------------- b) Total Amount Remitted this Month: $ 21,418,940.18 --------------- c) Cumulative Amount Remitted this Remittance Period: $146,853,158.45 --------------- 3. BALANCES ON SUBACCOUNTS (AT END OF MONTHLY PERIOD): a) Collection Account Balance: $ 21,645,006.51 --------------- b) Reserve Subaccount Balance: $ 4,469,851.30 --------------- c) Series Overcollateralization Subaccount Balance: $ 938,435.93 --------------- d) Series Capital Subaccount Balance: $ 8,769,861.40 ---------------
Executed as of October 14, 2002. THE DETROIT EDISON COMPANY as Servicer By: -------------------------------------- Name: Michael G. VanHaerents Title: Manager, Regulatory Planning and Analysis EX-99.27 7 k72375exv99w27.txt CEO CERTIFICATE OF PERIODIC REPORT EXHIBIT 99-27 CERTIFICATION OF PERIODIC REPORT I, David E. Meador, Manager and Chief Executive Officer of The Detroit Edison Securitization Funding LLC (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge and belief: (1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2002 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: November 13, 2002 /s/ DAVID E. MEADOR --------------------------------------------- David E. Meador Manager and Chief Executive Officer of The Detroit Edison Securitization Funding LLC EX-99.28 8 k72375exv99w28.txt CFO CERTIFICATION OF PERIODIC REPORT EXHIBIT 99-28 CERTIFICATION OF PERIODIC REPORT I, Daniel G. Brudzynski, Controller and Chief Financial Officer of The Detroit Edison Securitization Funding LLC (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge and belief: (1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2002 (the "Report') fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: November 13, 2002 /s/ DANIEL G. BRUDZYNSKI --------------------------------------------- Daniel G. Brudzynski Controller and Chief Financial Officer of The Detroit Edison Securitization Funding LLC -----END PRIVACY-ENHANCED MESSAGE-----