Michigan Public Service Commission The Detroit Edison Company Projected Net Operating Income "Total Electric" and "Jurisdictional Electric"

Transcription

1 Projected Net Operating Income Schedule: C1 "Total Electric" and "Jurisdictional Electric" Witness: T. M. Uzenski Projected 12 Month Period Ending March 31, 2012 Page: 1 of 1 ($000) (a) (b) (c) Historical Projected Net Operating Net Operating Line Income Income No. Description 12/31/2009 3/31/ Revenues 2 Total Revenues 4,437,356 4,299, Operating Expenses 5 Fuel and Purchased Power 1,446,307 1,405,606 6 Operations and Maintenance Expenses 1,347,026 1,520,953 7 Depreciation and Amortization 555, ,435 8 Property & Other Taxes 236, ,340 9 Loss/Gain on Sale of Assets (65) 0 10 State Income Taxes 43,879 28, Federal Income Taxes 181,649 74, Total Operating Expenses 3,811,486 3,881, Operating Income 625, , Operating Income Adjustments 17 AFUDC and Other 8,662 10, Amortization of Loss on Reacquired Securities (3,168) (3,168) 19 Net Other Income and Deductions 5,494 7, "Total Electric" Net Operating Income 631, , "Jurisdictional Electric" Net Operating Income 635, ,411

2 Adjusted Net Operating Income - Total Electric and Jurisdictional Electric Schedule: C1.1 For the 12 Month Period Ending March 31, 2012 Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Source Depreciation State Federal Total Electric Line Exhibit Fuel & and Regulatory Property & Income Income Loss/Gain AFUDC & Adjusted No. Description A-10 Revenues Purch Pwr O&M Amortization Assets Other Taxes Taxes Taxes on Sale Other NOI 1 Historical Year: 12 Months Ended 12/31/ Adjusted Normalized 2009 Net Operating Income 4,437,356 1,446,307 1,347, , ,768 43, ,649 (65) 5, , Projection Adjustments 5 Revenues C3 (138,318) (8,270) (45,517) (84,531) 6 Fuel and Purchased Power C4 (40,701) 2,434 13,394 24,874 7 O&M C5 173,927 (10,399) (57,235) (106,293) 8 Depreciation and Amortization C6 34,512 (2,063) (11,357) (21,092) 9 Property and Municipal Taxes C7 25,572 (1,529) (8,415) (15,628) 10 Federal Income Taxes C8 1,644 (1,644) 11 State Income Taxes C9 & C10 4,089 (4,089) 12 AFUDC & Other C ,120 2, Amortization of the Loss on Reacquired Debt C12-14 Income Tax Effect of Interest C (683) 15 Synchronization Adjustment C14 (87) (562) Total Projection Adjustments (138,318) (40,701) 173,927 34,512-25,572 (15,735) (107,457) 65 2,120 (206,382) Total Electric Net Operating Income 4,299,038 1,405,606 1,520, , ,340 28,143 74,192-7, , Jurisdictional Electric Net Operating Income 4,289,665 1,401,079 1,518, , ,913 28,091 74,077 7, , Jurisdictional Electric NOI 12 ME 3/31/ , Source: Exhibit A-13, Page 1, Line 18, Column (b)

3 Revenue Conversion Factor Schedule: C2 Projected 12 Months Ending March 31, 2012 Witness: P. G. Horgan Page: 1 of 1 (a) (b) (c) Revenue Conversion Line Calc. Factor No. Description Logic 3/31/ Income Before Income taxes Michigan Business Tax: Income Tax Rate % 4 Michigan Business Tax: Gross Receipts Tax Rate % 5 Composite Municipal Excise Tax Rate (1) % 6 Total State and Local Tax Rates (L3+L4+L5) % 7 8 Federal Income Tax Base (L1 - (L6*100)) Federal Income Tax Rate % Federal Income Tax (L10 * L8) Income after Federal, Michigan Business Taxes and 15 Municipal Excise Taxes (L8 - L12) Revenue Conversion Factor (L1 / L15) (1) See A-10WPC2

4 Projected Sales Revenue Schedule: C3 For the 12 Month Period Ending March 31, 2012 Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) Test Line Period No. Description Amounts Revenue 1 2 Normalized 12 Months Ended December 31, 2009 Revenues (1) 4,437, Projected 12 ME March 31, 2012 Revenues (2) 4,652, Less: Securitization 324, Regulatory Assets 3, Energy Optimization and REP Surcharge Revenue 179, Projected 12 ME March 31, 2012 Revenues Excluding Other Revenues 4,145, Sale for Resale 9, Miscellaneous 144, Projected 12 Months Ended March 31, 2012 Revenues 4,299, Change in Revenues (138,318) (1) Exh. A-3, Sch. C1, Line 33 (2) Exh. A-14, Sch. F2, Line 50, Column (b)

5 Calculation of Power Supply Expenses Schedule: C4 Using MPSC Staff Methodology from U Witness: K. A. Holmes Page: 1 of 1 (a) (b) (c) Line No. Description Amount Source 1 Current PSCR Base including transmission at generation level (mills/kwh) U-15768; Exh. A-10, Sch. C4 2 Loss Factor (mills/kwh) U-15768; Exh. A-10, Sch. C4 3 Current PSCR Base including transmission at sales level (mills/kwh) (Line 1 + Line 2) 4 5 Detroit Edison Power Supply Projected Sales (MWh) 41,721,357 (Line 8 - Line 6) 6 Detroit Edison Wholesale Projected Sales (MWh) 174, Total Power Supply Sales (MWh) 41,895, Transmission Expense $ 305,671,000 U-15768; Ex. A-10, C Base Transmission Expense at PSCR Sales Level (mills/kwh) 7.33 (Line 10 Line 5) Base Fuel & PP Expense at PSCR Sales Level (mills/kwh) (Line 3 - Line 12) TY Power Supply Costs (Less Transmission) Detroit Edison Power Supply Projected Sales (MWh) 41,721,357 (Line 8 - Line 6) 19 Detroit Edison R10 Hourly Power Supply Cost Projected Sales (MWh) 480,865 Exh A-14, Sch F3, Pg 36 of 42, Ln 2 20 Detroit Edison R10 MISO Pricing Option Projected Sales (MWh) 321,824 Exh A-14, Sch F3, Pg 36 of 42, Ln 8 21 Detroit Edison Non-PSCR LCC Sales (MWh) 18,689 LCC workpapers 22 Detroit Edison Retail Sales (less R10, FERC wholesale, LCC Int) (MWh) 40,899, Detroit Edison Wholesale Sales (MWh) 174,220 (Line 6) 24 Detroit Edison Wholesale Interruptible Sales (MWh) 491 Actual FERC Wholesale Direct Assignment in U R 25 Detroit Edison Wholesale Firm Sales (MWh) 173,729 (line 23 - Line 24) Detroit Edison Retail Power Supply Costs (less R10, FERC wholesale, LCC Int) $ 1,065,997,114 (Line 22 * Line 14) 28 R10 Power Supply Costs 17,513,103 (Line 19 * $36.42/MWh) 2/ 29 R10 MISO Pricing Option Costs 11,263,840 (Line 20 * $35.00/MWh) 2/ 30 LCC Interruptible Sales Power Supply Costs 615,989 (Line 21 * $32.96/MWh) 3/ 31 Wholesale Interruptible Power Supply Costs 17,136 (Line 24 * $34.90/MWh) 3/ 32 Wholesale Firm Power Supply Costs 4,527,988 (Line 25 * Line 14) 33 Detroit Edison Total Power Supply Costs $ 1,099,935, Transmission Expense $ 305,671, Total Expense $ 1,405,606,171 Notes: 2/ Revenue amount on Exhibit A-14, Schedule No. F3 page 36 of 42 3/ Actual average rate credited to the PSCR during historic period (in U R)

6 Test Period Operation and Maintenance Expenses Schedule: C5 Summary Witness: T. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 01/01/10-01/01/11-01/01/12 - Exhibit Adjusted 12/31/10 12/31/11 3/31/12 Other Total Line Source Historical Rate Case Normalization Historical Inflation Inflation Inflation Adjustments Projected Projected No. Description A-10 Test Period Adjustments Adjustments Test Period Adjustment Adjustment Adjustment 1/ Adjustments Test Period 1 Steam Power Generation C , ,608 4,596 4,640 1,675 10,180 21, ,699 2 Nuclear Power Generation C , ,569 4,850 5,020 1,299 4,600 15, ,337 3 Hydraulic Power Generation C5.3 8, , ,019 4 Other Power Generation C5.4 5, , ,118 5 Distribution C , ,035 3,300 3,127 1,131 14,144 21, ,738 6 Customer Service and Marketing C ,123 (14,766) 0 136,357 1,448 1, , ,671 7 Uncollectible Accounts Expense C5.7 77, , (4,855) (4,855) 72,900 8 Corporate Support C ,130 (15,879) (1,520) 152,731 3,443 3, ,569 18, ,199 9 Pension and Benefits C , , ,890 4,434 4,722 1,318 87,757 98, , MERC C ,435 44, , AMI & Smart Currents C5.13 (282) (282) (282) 1,323,455 13,790 9,780 1,347,025 22,279 22,567 6, , ,928 1,520,953 1/ Test Period Adjustment, See respective Exhibit and Schedule.

7 Test Period Operation and Maintenance Expenses Schedule: C5.1 Steam Power Generation - Total Witness: P. Fessler ($000's) Page: 1 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 01/01/10-01/01/11-01/01/12-12/31/10 12/31/11 3/31/12 Total Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Total Adjustments Total Adjustments Total Adjustments Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ Adjustments Test Period 1 Steam Power Generation sum (c) thru (e) sum (g) thru (i) (f) + (j) 2 Operation 3 Operation Supervision and Engineering 4/ , , ,317 4 Fuel 5/, 9/ ,153 4, ,273 (3,070) (1,882) 40,391 5 Steam Expenses 10/ , ,441 4, ,386 22,827 6 Steam from Other Sources (Less) Steam Transferred-Cr Electric Expenses 6/ 505 6, , ,001 9 Misc Steam Power Expenses 2/, 9/, 11/ ,144 (4,120) 0 62,024 4,246 6,907 (137) 11,017 73, Rents Total Operation Expense 146, ,178 6,781 8, , , Maintenance 14 Maintenance Supervision and Engineering 7/ 510 1, , (296) , Maintenance of Structures , ,746 (251) , Maintenance of Boilers 3/, 10/ ,259 (630) 0 99,629 (8,517) 12,661 (84) 4, , Maintenance of Electric Plant , ,995 (1,747) 1, (125) 17, Maintenance of Misc Steam Plant 8/ , ,389 (1,193) 2, ,231 36, Total Maintenance Expense 169,045 (630) 0 168,415 (11,357) 16, , , Total Steam Power Generation 315, ,593 (4,576) 25, , ,685 1/ Total Adjustments include known and measurable scope changes and labor and material adjustments (see page 2 through 4). 1.5% 2/ MPPA credit included in Line 10 FERC 506 (3,305) 1.4% 3/ MPPA credit included in Line 17 FERC 512 (3,650) 2.0% Total MPPA credit $ (6,955) 4/ Includes Fuel Supply $ 1,301 5/ Includes Fuel Supply 8,177 6/ Includes Fuel Supply 20 7/ Includes Fuel Supply 768 8/ Includes Fuel Supply 620 Total Fuel Supply $ 10,886 9/ To reclass Urea from FERC 506 to FERC / To reclass FGD operating chemicals from FERC 512 to FERC / Includes MEP $ 411

8 Test Period Operation and Maintenance Expenses Schedule: C5.1 Steam Power Generation (excluding FGD and SCR adjustments) Witness: P. Fessler ($000's) Page: 2 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Projected Adjustments 01/01/10-01/01/10-01/01/11-01/01/11-01/01/12-01/01/12-12/31/10 12/31/10 12/31/11 12/31/11 3/31/12 3/31/12 Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Total Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 1/ 1/ 1/ Adjustments Test Period 1 Steam Power Generation 2/ sum (c) thru (e) sum (g) thru (l) (f) + (m) 2 Operation Operation Supervision and Engineering 5/ , , (260) ,317 4 Fuel 6/ , , ,238 40,391 5 Steam Expenses , , ,192 6 Steam from Other Sources (Less) Steam Transferred-Cr Electric Expenses 505 6, , ,001 9 Misc Steam Power Expenses 3/, 7/, 10/ , ,401 3, ,897 1,001 (500) ,996 72, Rents Total Operation Expense 140, ,648 3,998 2,170 6,069 2,140 (500) , , Maintenance 14 Maintenance Supervision and Engineering 8/ 510 1, , (320) , Maintenance of Structures , ,746 (450) , Maintenance of Boilers 4/ , ,374 (12,334) 1,261 8,028 1, (1,266) 95, Maintenance of Electric Plant , ,995 (1,987) 240 1, (125) 17, Maintenance of Misc Steam Plant 9/ , ,389 (1,698) 505 1, ,231 36, Total Maintenance Expense 165, ,160 (16,149) 2,235 11,183 2, , Total Steam Power (excluding FGD and SCR adjustments) 305, ,808 (12,151) 4,405 17,252 4,414 (500) 1,596 15, ,824 1/ See Testimony of P. Fessler, pages 35 through % 2/ Excludes FGD and SCR; (see Ex. A-10, C5.1, P. 3 and Ex. A-10, C5.1 P 4) 1.4% 2.0% 3/ MPPA credit included in Line 10 FERC 506 $ (3,305) 4/ MPPA credit included in Line 17 FERC 512 (3,650) Total MPPA credit $ (6,955) 5/ Includes Fuel Supply $ 1,301 6/ Includes Fuel Supply 8,177 7/ Includes Fuel Supply 20 8/ Includes Fuel Supply 768 9/ Includes Fuel Supply 620 Total Fuel Supply $ 10,886 10/ Includes MEP $ 411

9 Projected Operation and Maintenance Expenses Schedule: C5.1 Flue Gas Desulfurization (FGD) Adjustment Witness: P. Fessler ($000's) Page: 3 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Projected Adjustments 01/01/10-01/01/10-01/01/11-01/01/11-01/01/12-01/01/12-12/31/10 12/31/10 12/31/11 12/31/11 3/31/12 3/31/12 Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Total Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 1/ 1/ 1/ Adjustments Test Period 1 sum (c) thru (e) sum (g) thru (l) (f) + (m) 2 FGD Operations 3 DECO Labor , ,605 3,554 4 REP Contract Labor Materials 2/ , ,121 2,916 7 Materials (630) Total Operation Expense 1, ,787 4, ,848 6, FGD Maintenance 11 DECO Labor , REP Contract Labor , ,416 1, Materials 3/ , Total Maintenance Expense 2, ,010 2, ,958 4, Total FGD Expense 3, ,797 7, ,806 11,603 1/ See Testimony of P. Fessler, pages 35 through % 2/ Beginning in 2010; Operating Chemicals are recorded in FERC % 2.0% 3/ Excludes 2009 operating chemicals

10 Projected Operation and Maintenance Expenses Schedule: C5.1 Selective Catalytic Reduction (SCR) Adjustment Witness: P. Fessler ($000's) Page: 4 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Projected Adjustments 01/01/10-01/01/10-01/01/11-01/01/11-01/01/12-01/01/12-12/31/10 12/31/10 12/31/11 12/31/11 3/31/12 3/31/12 Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Total Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 1/ 1/ 1/ Adjustments Test Period 1 sum (c) thru (e) sum (g) thru (l) (f) + (m) 2 SCR Operations 3 DECO Labor REP Contract Labor Materials Urea 506 4,120 (4,120) Urea 2/ , ,120 (4,120) (4,120) 0 9 Total Operation Expense 4, ,743 (4,120) (4,099) SCR Maintenance 12 DECO Labor REP Contract Labor Materials (500) 4 3, (600) 14 2,166 2, Total Maintenance Expense 1, ,245 (322) 14 3, (600) 18 2,368 3, Total SCR Expense 5, ,988 (4,442) 23 3, (600) 21 (1,731) 4,257 1/ See Testimony of P. Fessler, pages 35 through % 2/ Beginning in 2010; Urea is recorded in FERC % 2.0%

11 Test Period Operation and Maintenance Expenses Schedule: C5.2 Nuclear Power Generation Witness: W. A. Colonnello ($000) Page: 1 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 01/01/10-01/01/11-01/01/12 - FERC/ Adjusted 12/31/10 12/31/11 3/31/12 Other Total Line MPSC Historical Rate Case Normalization Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 2/ Adjustments Test Period 1 Nuclear Power Generation sum (c) thru (e) sum (g) thru (j) (f) + (k) 2 Operation 3 Operation Supervision and Engineering , , ,148 15,393 4 Coolants and Water 519 3, , ,524 5 Steam Expenses , , ,164 15,611 6 Steam from Other Sources (Less) Steam Transferred-Cr Electric Expenses 523 3, , ,687 9 Misc Nuclear Power Expenses , ,526 1,523 1, ,600 8,108 51, Rents Station Expense Total Operation Expense 79, ,083 2,768 2, ,600 10,974 90, Maintenance 15 Maintenance Supervision and Engineering , , , Maintenance of Structures , , , Maintenance of Reactor Plant Equipment , , ,822 24, Maintenance of Electric Plant 531 9, , , Maintenance of Misc Nuclear Plant 532 2, , , Total Maintenance Expense 59, ,486 2,082 2, ,794 64, Total Operation and Maintenance Expense 138, ,569 4,850 5,020 1,299 4,600 15, , / Inflation Adjustment Factor January 1, December 31, % 26 Inflation Adjustment Factor January 1, December 31, % 27 Inflation Adjustment Factor January 1, May 31, % / Fuel offload (W. Colonnello testimony, page 10)

12 O&M Expenditures - Nuclear Generation Schedule: C5.2 Historical Test Year Witness: W. A. Colonnello ($000) Page: 2 of 2 (a) (b) Line Actual No. Organization Jan - Dec Nuclear Organization 103,551 2 Regulatory Assessments and Dues 10,372 3 Nuclear Organization - Base 113, Emergent Projects 5, Refueling Outage 8 Refuel Outage 31,494 9 Refuel Outage Accrual 20, Refuel Outage Reversal (32,610) 11 Total Refueling Outage 19, Total Nuc Gen Directs 138, Total Nuclear Generation 138, FERC Account Summary 20 Operating FERC Accounts 79, Maintenance FERC Accounts 59, Total Nuclear FERC Accounts 138,569

13 Test Period Operation and Maintenance Expenses Schedule: C5.3 Hydraulic Power Generation Witness: P. Fessler ($000's) Page: 1 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 01/01/10-01/01/11-01/01/12-12/31/10 12/31/11 3/31/12 Total Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Total Adjustments Total Adjustments Total Adjustments Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ Adjustments Test Period 1 Hydraulic Power Generation sum (c) thru (e) sum (g) thru (i) (f) + (j) 2 Operation 3 Operation Supervision and Engineering 535 1, , ,235 4 Water for Power Hydraulic Expenses 537 1, , ,339 6 Electric Expenses Misc Hydraulic Power Expenses Rents Total Operation Expense 4, , , Maintenance 12 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Reservoirs, Dams Maintenance of Electric Plant 544 1, , , Maintenance of Misc Hydraulic Plant 545 1, , , Total Maintenance Expense 4, , , Total Hydraulic Power Generation 8, , ,019 1/ Total Adjustments include known and measurable scope changes and labor and material adjustments (see page 2). 1.5% 1.4% 2.0%

14 Test Period Operation and Maintenance Expenses Schedule: C5.3 Hydraulic Power Generation Witness: P. Fessler ($000's) Page: 2 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Projected Adjustments 01/01/10-01/01/10-01/01/11-01/01/11-01/01/12-01/01/12 - Adjusted 12/31/10 12/31/10 12/31/11 12/31/11 3/31/12 3/31/12 Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Total Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 1/ 1/ 1/ Adjustments Test Period 1 Hydraulic Power Generation sum (c) thru (e) sum (g) thru (l) (f) + (m) 2 Operation 3 Operation Supervision and Engineering 535 1, , ,235 4 Water for Power Hydraulic Expenses 537 1, , ,339 6 Electric Expenses Misc Hydraulic Power Expenses Rents Total Operation Expense 4, , , Maintenance 12 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Reservoirs, Dams Maintenance of Electric Plant 544 1, , , Maintenance of Misc Hydraulic Plant 545 1, , , Total Maintenance Expense 4, , , Total Hydraulic Power Generation 8, , ,019 1/ See Testimony of P. Fessler, pages 40 through %

15 Test Period Operation and Maintenance Expenses Schedule: C5.4 Other Power Generation Witness: P. Fessler ($000's) Page: 1 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 01/01/10-01/01/11-01/01/12-12/31/10 12/31/11 3/31/12 Total Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Total Adjustments Total Adjustments Total Adjustments Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ Adjustments Test Period 1 Other Power Generation sum (c) thru (e) sum (g) thru (i) (f) + (j) 2 Operation 3 Operation Supervision and Engineering Generation Expenses Misc Other Power Expenses 549 2, , ,377 6 Rents Total Operation Expense 2, , , Maintenance 10 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Generating & Electric Plant 553 2, ,913 (718) , Maintenance of Misc Other Power Plant Total Maintenance Expense 2, ,913 (718) , Power Supply Related Expenses Operation Supervision and Engineering Generation Expenses Total Expense Total Other Power Generation Expenses 5, ,926 (672) ,118 1/ Total Adjustments include known and measurable scope changes and labor and material adjustments. 1.5% 1.4% 2.0%

16 Test Period Operation and Maintenance Expenses Schedule: C5.4 Other Power Generation Witness: P. Fessler ($000's) Page: 2 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Projected Adjustments 01/01/10-01/01/10-01/01/11-01/01/11-01/01/12-01/01/12-12/31/10 12/31/10 12/31/11 12/31/11 3/31/12 3/31/12 Line FERC/ MPSC Historical Rate Case Normalization Adjusted Historical Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Scope Adjustments Labor & Mat. Cost Adj Total Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 1/ 1/ 1/ Adjustments Test Period 1 Other Power Generation sum (c) thru (e) sum (g) thru (l) (f) + (m) 2 Operation 3 Operation Supervision and Engineering Generation Expenses Misc Other Power Expenses 549 2, , ,377 6 Rents Total Operation Expense 2, , , Maintenance 10 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Generating & Electric Plant 553 2, ,913 (750) , Maintenance of Misc Other Power Plant Total Maintenance Expense 2, ,913 (750) , Power Supply Related Expenses Operation Supervision and Engineering Generation Expenses Total Expense Total Other Power Generation Expenses 5, ,926 (750) ,118 1/ See Testimony of P. Fessler, pages 41 through 43.

17 Test Period Operation and Maintenance Expense Schedule: C5.5 Power Supply Related Expenses Witness: K. A. Holmes ($000) Page: 1 of 1 (a) (b) (c) (d) (e) Other Power Supply Projected Period FERC/ Historical 04/01/11 - Line MPSC Test Period Adjustments 03/31/12 No. Description Account 1/ 2/ 3/ 1 Power Supply Related Expenses 2 Fuel - Steam ,480 3 Allowances ,338 4 Fuel - Nuclear ,541 5 Fuel - Other 547 9,061 6 Purchased Power ,695 7 Load Dispatching 561 9,919 8 Transmission of Electricity by Others ,056 9 Regional Market Expenses , Total Power Supply Related Expenses 1,423,328 (17,722) 1,405,606 1/ See Exhibit A-3, Schedule C4 2/ Column (e) less column (c) 3/ See Exhibit A-10, Schedule C4

18 Projected Operation and Maintenance Expenses Schedule: C5.6 Distribution Expenses Witness: P. D. Whitman ($000) Page: 1 of 3 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments /01/10-01/01/11-01/01/12 - FERC/ Adjusted 12/31/10 12/31/11 3/31/12 Restoration Total Line MPSC Historical Rate Case Normalization Historical Inflation Adj Inflation Adj Inflation Adj Normalization Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 2/ Adjustments Test Period 1 Distribution Expenses sum (c) thru (e) sum (g) thru (j) (f) + (k) 2 Operation 3 Operation Supervision and Engineering , , ,861 3,761 29,959 4 Load Dispatching 581 3, , ,268 5 Station Expenses , , ,953 6 Overhead Line Expenses 583 7, , ,226 7 Underground Line Expenses 584 2, , ,150 8 Street Lighting and Signal System Exp Meter Expenses , , , Customer Installations Expenses Miscellaneous Expenses 588 7, , , Rents 589 9, , , Total Operation Expense 85, ,521 1,283 1, ,861 5,799 91, Maintenance 16 Maintenance Supervision and Engineering 590 1, , , Maintenance of Structures 591 3, , , Maintenance of Station Equipment , , , Maintenance of Overhead Lines , ,582 1,494 1, ,763 12, , Maintenance of Underground Lines , , ,977 2,473 16, Maintenance of Line Transformers Maintenance of Street Lighting and 596 3, , , Signal Systems 24 Maintenance of Meters Maintenance of Misc Distribution Plant Total Maintenance Expense 134, ,514 2,018 1, ,282 15, , Total Operation and Maintenance Expense 220, ,035 3,301 3,127 1,132 14,143 21, ,738 1/ CPI Annual Inflation Adjustment for January 1, December 31, % CPI Annual Inflation Adjustment for January 1, December 31, % CPI Annual Inflation Adjustment for January 1, March 31, % 2/ Reflects restoration adjustment of $ million (see page 2 of 3)

19 Restoration Normalization Schedule: C5.6 ($000) Witness: P. D. Whitman Page: 2 of 3 (a) (b) (c) (d) (e) (f) (g) (h) (i) Line Actual 1/1/ Col (g) - (h) No. Storm and Non-Storm Restoration History Yr Avg 12/31/2009 Adjustment 1 Operation and Maintenance Expense 2 Storm 59,546 30,821 48,302 51,000 32,896 44,513 32,896 3 Non-Storm Restoration 58,277 70,360 70,248 72,584 65,297 67,353 65,297 4 Total 117, , , ,584 98, ,866 98, CPI Annual Inflation Rate for Jan - Dec % 1,678 1,473 7 CPI Annual Inflation Rate for Jan - Dec % 1,590 1,395 8 CPI Annual Inflation Rate for Jan - Mar % Total $115,709 $101, Adjustment in Column J, Line 27, page 1 of 3 $14,143

20 Line Clearance Expenses Schedule: C5.6 ($000) Witness: P. D. Whitman Page: 3 of 3 (a) (b) (c) (d) (e) (f) 04/01/11-01/01/10-01/01/11-01/01/12-3/31/ /31/10 12/31/11 3/31/12 Projected Line Historical Inflation Adj Inflation Adj Inflation Adj Test Period No. Description Test Period 1/ 2/ 3/ 4/ Historical Test Period 49, Historical Test Period Inflated 49,749 50,446 12,864 50,698 1/ CPI Annual Inflation Adjustment Factor January 1, December 31, % 2/ CPI Annual Inflation Adjustment Factor January 1, December 31, % 3/ CPI Annual Inflation Adjustment Factor January 1, March 31, % 4/ Projected Test Period equals.75(d)+(e)

21 Test Period Operation and Maintenance Expenses Schedule: C5.7 Customer Service and Marketing Witness: D. W. Broome ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 01/01/10-01/01/11-01/01/12 - FERC/ Rate Case Adjusted 12/31/10 12/31/11 3/31/12 Other Total Line MPSC Historical Adjustments Normalization Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Account Test Period 1/ Adjustments Test Period 2/ 2/ 2/ 3/ Adjustments Test Period 1 Customer Accounts Expenses sum (c) thru (e) sum (g) thru (j) (f) + (k) 2 Operaton 3 Supervision 901 2, , ,012 4 Meter Reading Expenses , , ,079 5 Customer Records and Collection Expenses , , ,940 58,410 6 Uncollectible Accounts , , (4,855) (4,855) 72,900 7 Miscellaneous Customer Accounts Expenses 905 5,078 (4,834) Total Operation Expense 154,860 (4,834) 0 150,026 1,084 1, (4,855) (2,372) 147, Customer Service and Informational Expenses 11 Operaton 12 Supervision 907 1, , , Customer Assistance Expenses ,628 (9,019) 0 57, , Informational and Instructional Expenses (913) 0 (20) (0) (0) (0) 0 (1) (21) 15 Miscellaneous Customer Service and 910 3, , , Informational Expenses 17 Total Operation Expense 72,673 (9,932) 0 62, , Sales Expenses 20 Operaton 21 Supervision Demonstrating and Selling Expenses Advertising Expenses Miscellaneous Sales Expenses Total Operation Expense 1, , , Total Customer Service and Marketing 228,878 (14,766) 0 214,112 1,447 1, (4,855) (1,540) 212,572 1/ FERC Remove Energy Optimization 4,834 FERC Remove Energy Optimization 7,244 FERC Renewables Reg Assist Adj. to RPS case 1,775 Total FERC ,853 FERC Remove Energy Optimization 913 Total adjustment to remove EO 14,766 2/ CPI Inflation Rate Adjustment Factor January 1, December 31, % CPI Inflation Rate Adjustment Factor January 1, December 31, % CPI Inflation Rate Adjustment Factor January 1, March 31, % Note: Inflation was not calculated on LIEEF payments of $ million 3/ Projected reduction in Uncollectible Expense

22 Test Period Operation and Maintenance Expenses Schedule: C5.8 Administrative and General Expenses Witness: T. M. Uzenski ($000's) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 01/01/10-01/01/11-01/01/12 - FERC/ Adjusted 12/31/10 12/31/11 3/31/12 Other Total Line MPSC Historical Rate Case Normalization Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Account Test Period Adjustments Adjustments Test Period 1/ 1/ 1/ 2/ Adjustments Test Period 1 Administrative and General Expenses sum (c) thru (e) sum (g) thru (j) (f) + (k) 2 Operaton 3 Administrative and General Salaries ,360 (13,623) 2/ (519) 3/ 88,218 2,647 2, ,074 94,292 4 Office Supplies and Expenses , , ,083 5 (Less) Administrative Expenses Transferred-Cr. 922 (18,739) 0 (1,001) 4/ (19,740) (296) (280) (102) 0 (678) (20,418) 6 Outside Services Employeed , , ,922 7 Property Insurance 924 8, , ,893 8 Injuries and Damages , , ,569 10,569 21,997 9 Franchise Requirements Regulatory Commission Expenses (Less) Duplicate Charges-Cr General Advertising Expenses ,682 (362) 5/ 0 1, , Miscellaneous General Expenses ,058 (1,894) 6/ 0 1, , Rents 931 4, , , Total Operation Expense 165,283 (15,879) (1,520) 147,885 3,370 3, ,569 18, , Maintenance 18 Maintenance of General Plant 935 4, , , Total Maintenance Expense 4, , , Grand Total Operation & Mainenance Expense 170,130 (15,879) (1,520) 152,732 3,443 3, ,569 18, ,199 1/ Inflation Adjustment Factors Wage Inflation January 1, December 31, % January 1, December 31, % January 1, March 31, % Non-Wage Inflation January 1, December 31, % January 1, December 31, % January 1, March 31, % 2/ Line 3 includes: Executive incentive compensation adjustment - $13,623,000 3/ Line 3 includes: Incentive plan in excess of 100% payout (normalized) - ($7,420,000) Normalize one-time adjustment related to vacation policy change - $6,900,000 4/ Line 5 includes: Vacation policy change cap A&G credit 5/ Line 12 eliminates disallowed advertising - $362,000 6/ Line 13 eliminates disallowed corporate memberships - $1,894,000

23 Projected Operation and Maintenance Expenses Schedule: C5.9 Employee Pensions and Benefits Witness: J. C. Wuepper Projected 12 Month Period Ending March 2012 Page: 1 of 2 ($000) (a) (b) (c) (d) Employee Pensions and Benefits Expense Line Historical Projected No. Description Test Period Adjustments 1/ Test Period 2/ 1 Qualified Pension $ 73,627 $ 97,269 $ 170,896 2 OPEB 162,247 21, ,408 3 Less: Transition Costs Securitized (6,984) - (6,984) 4 Net OPEB 155,263 21, ,424 5 Active Health Care 62,631 13,433 76,064 6 Life Insurance 9, ,189 7 Savings Plan 22,789 1,837 24,626 8 Other 7,640 12,943 20,583 9 Subtotal Other Benefit Costs 102,490 28, , Total Employee Benefit Costs $ 331,380 $ 147,402 $ 478, Less: Capitalized and Transferred (95,791) (37,871) (133,662) 12 O&M Employee Benefit Expense $ 235,590 $ 109,531 $ 345,120 1/ Column (d) less Column (b) 2/ Carried from page 2, column (j), of this exhibit

24 Projected Operation and Maintenance Expenses Schedule: C5.9 Employee Pension and Benefits Witness: J. C. Wuepper Projected 12 Month Period Ending March 2012 Page: 2 of 2 ($000) (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Projected Adjustments Adjusted Jan. 1, Jan. 1, Jan. 1, Total Line Historical Normalization Historical Dec. 31, 2010 Dec. 31, 2011 Mar. 31, 2012 Other Projected Projected No. Description Test Period Adjustments Test Period Inflation Adj 2/ Inflation Adj 2/ Inflation Adj 2/ Adjustments Adjustments Test Period Col (b) + Col (c) Sum Col (e) thru Col (h) Col (d) + Col (i) 1 Qualified Pension $ 73,627 $ - $ 73,627 $ - $ - $ - $ 97,269 3/ $ 97,269 $ 170,896 2 OPEB 162, , ,161 3/ 21, ,408 3 Transition Costs Securitized (6,984) - (6,984) (6,984) 4 Net OPEB 155, , ,161 21, ,424 5 Pension and OPEB, Transfers to and from LLC (9,489) - (9,489) (3,225) (3,225) (12,714) 6 Benefit Plan Administration Fees 8,767-8, ,068 7 Healthcare, Dental and Vision Expenses 53,864-53,864 4,309 4,654 1,319 2,850 4/ 13,132 66,996 8 Total Active Health Care 62,631-62,631 4,441 4,778 1,364 2,850 13,433 76,064 9 Life Insurance 9,429-9, , Employee Savings Plan 22,789-22, ,837 24, Other 12 Accrued Vacation Expense (8,548) 11,300 1/ 2, , Wellness Plan Expenses 3,231-3, , Disability Expenses 3,860-3, , Non-Qualified Pension (ESRP) 5,023-5, / 520 5, Non-Qualified Pension (SERP) 1,274-1, / 205 1, Supplemental Savings Plan 1,588-1, , Dividends on Performance Shares 1,775-1, , Deferred Compensation Other Benefit Expenses Chargeout to MPPA (Belle River Power Plant) (1,542) - (1,542) (23) (22) (8) - (53) (1,595) 22 Sub-Total Other Benefits 7,640 11,300 18, ,643 20, Total before Capitalization 321,891 11, ,191 5,967 6,355 1, , , , Less: Capitalized Benefits 5/ (86,302) - (86,302) (1,533) (1,634) (457) (31,022) (34,646) (120,947) 25 Total Employee Benefit Expense $ 235,590 $ 11,300 $ 246,890 $ 4,434 $ 4,722 $ 1,318 $ 87,757 $ 98,231 $ 345,120 1/ Vacation policy change resulted in one-time reduction of vacation expense due to no accrual for / Inflation Adjustment Factors: see table below 3/ Adjustment pursuant to actuarial report 4/ Impact on active healthcare of reform legislation $4.500, partially offset by favorable Local 223 Union negotiations of $1,650 5/ Capitalization rate based on 2009 historical test period: 26.1% Annual Inflation Rates applied to benefits: Benefit Plan Administration Fees 1.50% 1.40% 2.00% Healthcare, Dental and Vision Expenses 8.00% 8.00% 8.00% Life Insurance 3.50% 3.50% 3.50% Employee Savings Plan 3.50% 3.50% 3.50% Accrued Vacation Expense 3.50% 3.50% 3.50% Wellness Plan Expenses 1.50% 1.40% 2.00% Disability Expenses 3.50% 3.50% 3.50% Supplemental Savings Plan 3.50% 3.50% 3.50% Dividends on Performance Shares 3.50% 3.50% 3.50% Deferred Compensation 3.50% 3.50% 3.50% Other Benefit Expenses 1.50% 1.40% 2.00% Chargeout to MPPA (Belle River Power Plant) 1.50% 1.40% 2.00%

25 Projected Operation and Maintenance Expenses Schedule: C5.10 Pension Cost - Qualified Witness: J. C. Wuepper Projected 12 Month Period Ending March 2012 Page: 1 of 1 ($000) (a) (b) (c) (d) Pension Cost - Qualified Line Historical Projected No. Description Test Period Adjustments 1/ Test Period 2/ 1 Cost Components: 2 Service cost $ 40,859 $ 21,442 $ 62,301 3 Interest cost 154,376 (7,441) 146,935 4 Expected return on assets (164,812) 14,036 (150,776) 5 Amortization: 6 Net (Gain)/Loss 36,506 70, ,434 7 Prior service cost 6,698 (1,696) 5,002 8 Transition Total Amortization 43,204 69, , Net ASC (SFAS 87) Cost $ 73,627 $ 97,269 $ 170,896 1/ Column (d) less Column (b) 2/ Carried from workpaper JCW-1

26 Projected Operation and Maintenance Expenses Schedule: C5.11 Other Post Employment Benefits (OPEB) Witness: J. C. Wuepper Projected 12 Month Period Ending March 2012 Page: 1 of 1 ($000) (a) (b) (c) (d) Other Post Employment Benefits (OPEB) Line Historical Projected No. Description Test Period Adjustments 1/ Test Period 2/ 1 Cost Components: 2 Service cost $ 45,383 $ 23,326 $ 68,709 3 Interest cost 102,370 (672) 101,698 4 Expected return on assets (41,863) (16,450) (58,313) 5 Amortization: 6 (Gain)/Loss 52,414 20,402 72,816 7 Prior service cost 1,608 (5,360) (3,752) 8 Transition 2,335 (85) 2,250 9 Total Amortization 56,357 14,957 71, Net ASC (SFAS 106) Cost $ 162,247 $ 21,161 $ 183,408 1/ Column (d) less Column (b) 2/ Carried from workpaper JCW-2

27 Projected Operation and Maintenance Expenses Schedule: C5.12 Midwest Energy Resource Company (MERC) Witness: M. Hoffman ($000) Page: 1 of 1 (a) (b) (c) (d) (e) Midwest Energy Resource Company (MERC) Projected FERC/ Historical Period Line MPSC Test Period 04/01/11 - No. Description Account 2009 Adjustments 03/31/12 1 Midwest Energy Resource Company (MERC) 2 3 Fuel Handling Expense , ,019 4 Administrative Expense 501 3, , , ,435

28 Projected Operation and Maintenance Expenses - AMI and SmartCurrents SM Schedule: C5.13 ($000) Witness: R. E. Sitkauskas Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) Projected Period Program Expenses & Savings Historical Adjusted FERC/ 12 Months Historical Line MPSC Ending Rate Case Normalization Test Period 01/01/10-01/01/11-04/01/11 - No. Description Account 12/31/09 Adjustments Adjustments 1/ 12/31/10 12/31/11 3/31/12 Expenses sum (c) thru (e) 1 Distribution Expenses 2 Operation 3 Meter Expenses Total Operation Expense ITS Expenses 7 Customer Assistance Expense ,739 2,677 2, Communication Plan/Marketing 10 Demonstrating and Selling Expense ,691 1, Total O&M Expenses ,545 5,188 5,226 Savings 13 Distribution Expenses 14 Operation 15 Load Dispatching (16) 16 Overhead Line Expenses 583 (1) 0 0 (1) (4) (24) (31) 17 Meter Expenses 586 (12) 0 0 (12) (95) (491) (673) 18 Total Operation Expense (14) 0 0 (14) (99) (515) (720) Maintenance 21 Maintenance of Overhead & Underground Lines 593 / 594 (9) 0 0 (9) (24) (179) (233) 22 Total Maintenance Expense (9) 0 0 (9) (24) (179) (233) Meter Reading Expense 902 (2,102) 0 0 (2,102) (2,267) (3,657) (4,347) 25 Customer Records and Collection Expense 903 (1) 0 0 (1) (3) (19) (70) 26 Uncollectible Accounts 904 (7) 0 0 (7) (29) (108) (138) Total O&M Savings (2,132) 0 0 (2,132) (2,422) (4,476) (5,508) Net O&M (2,132) 0 0 (2,132) (282) 1/ Historical test period savings also reflected in Exhibit A-10, Schedules C5.6 and C5.7

29 Projected Depreciation and Amortization Expense Schedule: C6 Projected 12 Month Period Ending March 31, 2012 Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) Depreciation Depreciation Projected Projected Expense Expense Projected Base Depreciable Period Depreciable Increase Increase Depreciation & Line Depreciation Plant Plant Plant Annual On Plant On Plant Amort. Expense No. 3/31/11 Rate 3/31/ Nuclear Plant 436,727 62, , % 2,686 5,529 5,529 3 Transmission and Distribution 6,271, ,919 6,497, % 8,271 18,105 18,105 4 Production (Steam, Hydraulic, MERC & Other) 7,084, ,346 7,236, % 3,879 8,617 8,617 5 General Plant 884,272 41, , % 1,811 4,133 4,133 6 Intangible Plant 502,119 7, , % 1,754 3,736 3,736 7 Environmental Plant 20,327 33,973 54, % 307 1,081 1,081 8 AMI & Smart Systems 45,668 31,755 77, % 812 1,965 1,965 9 Other Retirements (266,523) (199,569) (466,092) 3.31% (8,508) (15,434) (15,434) 10 Items with Special Depreciation rates 11 ½ Year Base Depreciation Add'l in subsequent Periods 11,019 11,019 11, Base Year Depreciation 496, , , Physical Plant Subtotal 496,339 14,978, ,376 15,332, ,370 38, , Nuclear Decommissioning 17,497 34, Amortization DTE-2 2,611 2, Amortization of CTA 18,003 18, Net Regulatory Debits less Regulatory Credits 21, Total 555,923 14,978, ,376 15,332, ,370 38, ,435

30 Projected Property and Other General Taxes Schedule: C7 ($000) Witness: M. Lewis Page: 1 of 4 (a) (b) (c) (d) Line 12 ME 15 ME 12 ME No. Description 12/31/2009 3/31/2011 3/31/ FICA 32,796 41,725 33, Federal Unemployment (FUTA) Michigan Unemployment (SUTA) Allocated Corporate Payroll Taxes MPSC Assessment 6,385 8,123 6, Property Taxes 194, , , Use Tax Other Tax Expense 1,771 2,253 1, Total 236, , ,340

31 Projected Property Tax Expense Schedule: C7 ($000) Witness: M. Lewis Page: 2 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Property Tax Expense Calculation (61%) (39%) 2009 Liability 2010 Liability Line STC True Cash Taxable Depreciation 2009 Taxes 2010 Expensed Expensed No. Description Cost Multiplier Value Value Multiplier Mils Assessed Liability in 2010 in Prior Year Tax Estimated Liability (2009) 199, ,922 2 Assessment Reduction from Tax Planning (10,400) 3 Valuation Multiplier Incremental Annual Obsolescence 1,696, (1,336) 4 Remove 12/31/2008 CWIP Retirements as of 12/31/2008 (100,000) (32,000) (16,000) (881) 6 7 Production Plant 154, ,860 75, , Nuclear Production 116, ,611 57, , Intangible Plant 15, (15,381) Distribution and Transmission Plant 290, Customer Service 19, , , , , General Plant 12, ,485 5, , ,086 1,967,695 13,620 13, /31/09 CWIP 115, ,649 28, ,588 1, Total 609, ,735 1,996,520 15, Property Tax Liability 204, ,922 79, Property Tax Expense for Calendar Year ,747

32 Projected Property Tax Expense Schedule: C7 ($000) Witness: M. Lewis Page: 3 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Property Tax Expense Calculation (61%) (39%) 2010 Liability 2011 Liability Line STC True Cash Taxable Depreciation 2009 Taxes 2011 Expensed Expensed No. Description Cost Multiplier Value Value Multiplier Mils Assessed Liability in 2011 in Prior Year Tax Estimated Liability (2010) 204, ,855 2 Valuation Multiplier Incremental Annual Obsolescence 1,996, (1,572) 3 Remove 12/31/2009 CWIP (115,298) (57,649) (28,825) (1,588) 4 Retirements as of 12/31/2009 (100,000) (32,000) (16,000) (881) 5 6 Production Plant 204, , , , Nuclear Production 184, ,172 90, , Intangible Plant 11, (11,999) Distribution and Transmission Plant 339, Customer Service 17, , , , , General Plant 29, ,539 13, , ,143 2,327,092 16,635 16, /31/10 CWIP 187, ,701 46, ,580 2, Total 748, ,844 2,373,943 19, Property Tax Liability 223, ,855 87, Property Tax Expense for Calendar Year , Property Tax Expense for 15 Months YE March Property Tax Expense for Calendar Year , Prorated - 3 months 2012 (212,174 x 3/12) 53, MERC - YE March , Total - 15 Months YE March ,100

33 Projected Property Tax Expense Schedule: C7 ($000) Witness: M. Lewis Page: 4 of 4 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Property Tax Expense Calculation (61%) (39%) 2011 Liability 2012 Liability Line STC True Cash Taxable Depreciation 2009 Taxes 2012 Expensed Expensed No. Description Cost Multiplier Value Value Multiplier Mils Assessed Liability in 2012 in Prior Year Tax Estimated Liability (2011) 223, ,576 2 Valuation Multiplier Incremental Annual Obsolescence 2,373, (1,870) 3 Remove 12/31/2010 CWIP (187,401) (93,701) (46,851) (2,580) 4 Retirements as of 12/31/2010 (100,000) (32,000) (16,000) (881) 5 6 Production Plant 247, , , , Nuclear Production 131, ,534 64, , Intangible Plant 10, (10,177) Distribution and Transmission Plant 343, Customer Service 19, , , , , General Plant 34, ,051 15, , ,002 2,686,444 15,342 15, /31/11 CWIP 437, , , ,028 6, Total 927, ,901 2,795,894 21, Property Tax Liability 245, ,576 95, Property Tax Expense for Calendar Year , Property Tax Expense for 12 Months YE March Prorated - 9 months 2011 (212,174 x 9/12) 159, Prorated - 3 months 2012 (232,229 x 3/12) 58, MERC - YE March , Total - 12 Months YE March ,319