8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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): January 5, 2006

	Exact Name of Registrant as Specified in its Charter,
Commission	State of Incorporation, Address of Principal	I.R.S. Employer
File Number	Executive Offices and Telephone Number	Identification No.
1-11607	DTE Energy Company	38-3217752
	(a Michigan corporation)
	2000 2nd Avenue
	Detroit, Michigan 48226-1279
	313-235-4000
1-2198	The Detroit Edison Company	38-0478650
	(a Michigan corporation)
	2000 2nd Avenue
	Detroit, Michigan 48226-1279
	313-235-4000

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 8.01. Other Events
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
News Release of Detroit Edison dated January 5, 2006
Summary of Detroit Edison's Electric Rate Restructuring Order

Item 8.01. Other Events

     On January 5, 2006, The Detroit Edison Company (“Detroit Edison”), a wholly-owned subsidiary of DTE Energy Company (“DTE Energy”), issued a News Release announcing that it had posted the Summary of Detroit Edison’s Electric Rate Restructuring Order to the DTE Energy website at www.dteenergy.com/investors/update.html.

     For a detailed discussion, please see Detroit Edison’s News Release dated January 5, 2006, and the Summary of Detroit Edison’s Rate Restructuring Order dated January 5, 2006, attached as Exhibit 99.1 and Exhibit 99.2 respectively and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

99.1	News Release of Detroit Edison dated January 5, 2006.
99.2	Summary of Detroit Edison’s Electric Rate Restructuring Order.

Forward-Looking Statements:

     This Form 8-K contains forward-looking statements that are subject to various assumptions, risks, and uncertainties. It should be read in conjunction with the “Forward-Looking Statements” section in each of DTE Energy’s and Detroit Edison’s 2004 Form 10-K (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison that discuss important factors that could cause DTE Energy’s and Detroit Edison’s actual results to differ materially. DTE Energy and Detroit Edison expressly disclaim any current intention to update any forward-looking statements contained in this report as a result of new information of future events or developments.

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.

Date: January 5, 2006	DTE ENERGY COMPANY
	(Registrant)
	/s/ N. A. Khouri
	N. A. Khouri Vice President and Treasurer
	THE DETROIT EDISON COMPANY (Registrant)
	/s/ N. A. Khouri
	N. A. Khouri Vice President and Treasurer

EXHIBIT INDEX

Exhibit Number	Description
99.1	News Release of Detroit Edison dated January 5, 2006.
99.2	Summary of Detroit Edison’s Electric Rate Restructuring Order.

EX-99.1

EXHIBIT 99.1

Jan. 5, 2006

DTE Energy posts summary of Detroit Edison
rate restructuring order

     DETROIT — DTE Energy (NYSE:DTE) today posted to its website a summary of the Michigan Public Service Commission’s (MPSC) rate restructuring order for Detroit Edison.

     The summary, which can be found at www.dteenergy.com/investors/update.html, provides details of the MPSC’s Dec. 22, 2005, order which addressed Detroit Edison’s rate subsidization issue.

     DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan and other non-utility, energy businesses focused on power and industrial projects, fuel transportation and marketing, and unconventional gas production. Information about DTE Energy is available at www.dteenergy.com.

     This news release contains “forward-looking statements” that are subject to risks and uncertainties. They should be read in conjunction with the forward-looking statements section in DTE Energy’s and Detroit Edison’s 2004 Form 10-K (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison that discuss important factors that could cause DTE Energy’s and Detroit Edison’s actual results to differ materially. DTE Energy and Detroit Edison expressly disclaim any current intention to update any forward-looking statements contained in this document as a result of new information or future events.

#           #           #

For further information, members of the media may contact:

Scott Simons	Lorie N. Kessler
(313) 235-8809	(313) 235-8807

EX-99.2

EXHIBIT 99.2

Summary of Detroit Edison’s Electric Rate Restructuring Order

January 5, 2006

TO THE INVESTMENT COMMUNITY¹:

     On December 22, 2005 the Michigan Public Service Commission (MPSC) issued an order in response to Detroit Edison’s request to unbundle rates and address numerous rate subsidy issues (rate deskewing). The full text of the order can be found on the MPSC website (http://efile.mpsc.cis.state.mi.us/cgi-bin/efile/viewcase.pl?casenum=14399).

Introduction

     On November 23, 2004, the MPSC issued its final order in the Detroit Edison general rate case (U-13808), which among other things, ordered Detroit Edison to file a new rate unbundling case that would also address Detroit Edison’s request to, “adjust rates to remove rate differentials or other inequalities as well as subsidies inherent in its current rates.” On February 4, 2005 Detroit Edison submitted the required filing.

     Most current rates for Detroit Edison are not reflective of the actual cost of service. Generally, residential customers are paying less than if their rates were based on cost of service. Conversely, commercial and industrial customers taking bundled electric service from Detroit Edison are paying rates higher than their cost of service. This current inter-class rate subsidy reflects a long-standing MPSC policy to have commercial and industrial customers provide a subsidy to residential customers. Detroit Edison proposed that the unbundled power supply and distribution rates be based on a fully allocated cost of service study, thus eliminating all subsidies.

     Currently, Electric Choice customers pay a lower distribution charge than customers taking bundled service from Detroit Edison. For Electric Choice customers, distribution charges were originally based on 1995 costs and are no longer indicative of Detroit Edison’s actual cost structure. Detroit Edison proposed to eliminate these intra-class rate subsidies. These intra-class

¹     This document includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms “anticipate”, “believe”, “estimate”, and similar words. These statements should be read in conjunction with the “Forward-Looking Statements” section in DTE Energy Company’s “DTE Energy” and Detroit Edison’s 2004 Form 10-K (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison that discuss important factors that could cause DTE Energy’s and Detroit Edison’s actual results to differ materially, including, but not limited to, the speed and nature of regulatory approvals. DTE Energy and Detroit Edison expressly disclaim any current intention to update any forward-looking statements contained in this document as a result of new information or future events.

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rate subsidies essentially provide discounted distribution service for customers that chose to purchase generation from an alternative electric supplier, at the expense of other customers.

     The general intent of the filing was to ensure that all customers, including Electric Choice customers, pay a fair and proportionate share of each element of electric service. This would eliminate the existing inter- and intra-class subsidies reflected in current rates. Regarding alternative suppliers, Detroit Edison proposed an immediate elimination of the intra-class distribution rate disparity and a phased in correction of inter-class rate subsidies.

Summary of MPSC Order

     While the MPSC did not order the comprehensive realignment of the existing rate structure that Detroit Edison requested in its original filing, the MPSC order did take some initial steps to improve the current competitive imbalance in Michigan’s Electric Choice program.

Realignment of Distribution Rates

• The MPSC ordered that distribution charges for full service (“bundled”) and Electric Choice customers be based on the cost of service

o This will result in an increase in the distribution rate for Electric Choice customers

o This increase in Electric Choice rates eliminates the distribution subsidy that full service commercial and industrial customers were providing for Electric Choice customers. This will result in a 6-7% decrease in certain commercial and industrial rates

o Residential rate subsidies will continue to be completely funded by full service commercial and industrial customers.

• The MPSC order does not provide for the phase-out of the residential subsidies as proposed by Detroit Edison and all the other parties

• The new distribution rates will be effective as of the first billing cycle in February 2006

Other Impacts to the Electric Choice Program

• The MPSC did not order any fundamental changes to the Electric Choice program

• Electric Choice customers will continue to pay both securitization and nuclear decommissioning surcharges

• The MPSC reaffirmed its prior decision to extend the annual return to service deadline to February 20, 2006

Unbundling Rates / Cost of Service

• Detroit Edison must file redesigned rates and modified tariff sheets by January 10, 2006

o These redesigned rates will unbundle into distribution and power supply charges

o The redesigned rates will not remedy existing inter-class rate subsidies, as originally requested by Detroit Edison, but instead the subsidies will be included in distribution rates for full service customers

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o Detroit Edison will set the unbundled rates using a Cost of Service Study (COSS) as proposed by the MPSC Staff

• This methodology places more emphasis on constant demand, rather than peak demand

• As a result, this will shift some cost responsibility from residential customers to commercial and industrial customers

• Based on the MPSC Staff’s analysis, this shift is relatively small, constituting approximately $24M of revenue

• The MPSC ordered Detroit Edison to file a COSS and a rate design proposal in its next rate proceeding based upon the MPSC Staff’s methodology

Next Rate Case

• Detroit Edison was ordered to file a general rate case by July 1, 2007, based on 2006 actual operating results

• The MPSC intends this filing to provide a timely method to rapidly review changing issues and to provide customers a greater degree of rate certainty and stability

Impact on Choice Volumes

     Electric Choice participation levels are dependent on a wide range of factors such as prevailing market prices for electricity, economic variables, duration of customer contracts, past experience with choice and alternative supplier marketing activity in Detroit Edison’s service territory. The combination of lower full service rates and higher Electric Choice rates should bring better balance to Michigan’s electric energy supply marketplace. The impact of this order will be evaluated as data becomes available.

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Detroit Edison 2005 Average Bundled Rates (¢/kWh)

			Commercial &
			Industrial		Commercial &
	Residential		Secondary		Industrial Primary		Choice
Energy Charge		9.2		9.6		5.3		1.1
Surcharges
- PSCR		0.0		0.0		0.0		n/a
- Decommissioning		0.1		0.1		0.1		0.1
- Securitization		0.5		0.5		0.5		0.5
- Regulatory Asset Recovery (RARS)		n/a		0.1		0.1		n/a
- Residential Rate Cap Credit		-0.8		n/a		n/a		n/a
Total		9.0		10.4		6.0		1.7

Detroit Edison Average Unbundled Rates (¢/kWh) Effective 02/01/2006

			Commercial &
			Industrial		Commercial &
	Residential (1)		Secondary		Industrial Primary		Choice
Power Supply
- Power Supply (inc. transmission)		4.9		4.9		4.3		n/a
- PSCR (2)		0.0		0.0		0.0		n/a
- Regulatory Asset Recovery (RARS)		0.2		0.1		0.1		n/a
Subtotal — Power Supply		5.1		4.9		4.4		n/a
Distribution
- Delivery Charge		4.2		4.1		1.0		1.6
- Decommissioning		0.1		0.1		0.1		0.1
- Securitization		0.5		0.5		0.5		0.5
- Customer Choice Implementation		0.1		0.1		0.1		0.1
Subtotal — Distribution		4.9		4.8		1.7		2.2
Total		10.0		9.7		6.1		2.2

(1)	Includes a 0.8¢/kWh impact from the expiration of the residential rate cap credit and the imposition of a 0.2¢/kWh Regulatory Asset Recovery Charge which were previously ordered by the MPSC in November 2004
(2)	MPSC adopted a temporary quarterly PSCR factor for 2006; the PSCR factor for first quarter is 0.0¢/kWh

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Detroit Edison Sales and Revenue

	2004				2005
					Through November
	Sales		Revenue		Sales		Revenue
	(GWh)		($000s)		(GWh)		($000s)
System Sales
Residential		15,082		1,344,761		15,600		1,408,083
Commercial & Industrial Secondary		7,818		766,165		7,235		749,314
Commercial & Industrial Primary		17,079		913,836		18,252		1,102,121
Electric Choice
Residential		1		39		1		42
Commercial & Industrial Secondary		3,144		70,846		3,003		73,747
Commercial & Industrial Primary		6,694		102,849		3,681		57,388

Detroit Edison Sales and Revenue Temperature Normalized

	2004				2005
					Through November
	Sales		Revenue		Sales		Revenue
	(GWh)		($000s)		(GWh)		($000s)
System Sales
Residential		15,743		1,403,736		14,680		1,325,043
Commercial & Industrial Secondary		8,044		788,340		7,059		731,038
Commercial & Industrial Primary		17,448		937,069		17,972		1,084,149
Electric Choice
Residential		1		31		1		32
Commercial & Industrial Secondary		3,187		71,820		2,935		73,305
Commercial & Industrial Primary		6,149		95,625		3,110		48,498