Historical Projected Net Operating Net Operating Line Income Income No. Description 12/31/13 6/30/ Revenues 4,428,908 4,429,397

Transcription

1 Projected Net Operating Income Schedule: C1 Total Electric and Jurisdictional Electric Witness: T. M. Uzenski Projected 12 Month Period Ending June 30, 2016 Page: 1 of 1 ($000) (a) (b) (c) Historical Projected Net Operating Net Operating Line Income Income No. Description 12/31/13 6/30/ Revenues 4,428,908 4,429,397 2 Operating Expenses 3 Fuel and Purchased Power 1,447,941 1,444,186 4 Operations and Maintenance Expenses 1,250,623 1,285,098 5 Depreciation and Amortization 545, ,202 6 Property & Other Taxes 256, ,729 7 State & Local Income Taxes 42,730 48,062 8 Federal Income Taxes 203, ,832 9 Total Operating Expenses 3,747,062 3,877, Operating Income 681, , Operating Income Adjustments 12 AFUDC 21,460 35, Other (5,203) (3,956) 14 Net Other Income and Deductions 16,257 31, "Total Electric" Net Operating Income 698, , "Jurisdictional Electric" Net Operating Income 687, ,062

2 DTE Electric Company Exhibit: A10 Adjusted Net Operating Income Schedule: C1.1 Total Electric Witness: T. M. Uzenski Projected 12 Month Period Ending June 30, 2016 Page: 1 of 1 ($000) (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Source Deprec Property State & Local Federal Line Exhibit Fuel & O&M / and & Other Income Income Other Adjusted No. Description A-10 Revenues Purch Pwr Fuel Handling Amort Taxes Taxes Taxes AFUDC Inc./(Ded.) NOI 1 Historical Year: 12 Months Ended 12/31/13 2 Adjusted Normalized 2013 Net Operating Income 4,428,908 1,447,941 1,250, , ,511 42, ,971 21,460 (5,203) 698,103 3 Projection Adjustments 4 Revenues C Fuel and Purchased Power C4 (3,755) 231 1,233 2,291 6 O&M C5 34,475 (2,121) (11,324) (21,030) 7 Depreciation and Amortization C6 102,916 (6,332) (33,804) (62,780) 8 Property and Other Taxes C7 32,218 (1,982) (10,583) (19,653) 9 Federal Income Taxes C8 12,296 (12,296) 10 State & Local Income Taxes C9 & C10 15,341 (15,341) 11 AFUDC C11 14,270 14, Other C12 1,247 1, Income Tax Effect of Interest C ,079 (1,281) 14 Synchronization Adjustment C14 (37) (197) Total Projection Adjustments 489 (3,755) 34, ,916 32,218 5,332 (41,139) 14,270 1,247 (114,041) 16 Total Electric Net Operating Income 4,429,397 1,444,186 1,285, , ,729 48, ,832 35,730 (3,956) 584,062

3 Revenue Conversion Factor Schedule: C2 Projected 12 Month Period Ending June 30, 2016 Witness: M. A. Suchta Page: 1 of 1 (a) (b) (c) Revenue Conversion Line Factor No. Description Calculation 6/30/ Income Before Income Taxes Michigan Business Tax: Income Tax Rate 5.82% 3 Composite Municipal Excise Tax Rate 0.33% 4 Total State and Local Tax Rates L2+L3 6.15% 5 Federal Income Tax Base L1 - (L4x100) Federal Income Tax Rate 35.00% 7 Federal Income Tax L5 x L Income after Federal, Michigan and Municipal Taxes L5 - L Revenue Conversion Factor L1 / L

4 Electric Operating Revenue Schedule: C3 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 1 of 2 (a) (b) (c) (d) (e) Adj. Historical Test Line 12-Mo. End Projection 12-Mo. End No. Description 12/31/13 Adjustments 06/30/16 Reference 1 Electric Sales Revenue ( , 456.1) 4,315,585 17,238 4,332,823 Carried from Exh. A-10, Sch. C3, page 2, line 6 2 Sales for Resale (447) 47,470 (47,470) - 3 Other Operating Revenues ( ) 68,422 2,261 70,683 Detailed below on Lines 9 thru 17 4 Other Revenue Adjustments: 5 R2 Special Purpose Facilities Rider 9,440 (32) 9,408 Witness Heiser A-13WPF1, Support Schedule 16 6 R9 Economic Development Credit (12,009) 12,009-7 PLD Wholesale Revenue Credit - 16,483 16,483 Witness Heiser A-13WPF1, Support Schedule 13 8 Total Electric Operating Revenue 4,428, ,429,397 9 Other Operating Revenues ( ) 10 Late Payment Charges (450) 19,385-19, Misc Service Charges (451) 7,389 1,090 8, Sale of Water (453) Electric Property Rental (454) 15,482 (1,998) 13, Interdept Rent/Shared Asset Rev (455) 23,489 3,883 27, Other Misc Rev (456) 2,640 (714) 1, Transmission of Others Elec (456.1) Total Misc Operating Revenue 68,422 2,261 70,683

5 Michigan Public Service Commission Case: U Electric Operating Revenue Schedule: C3 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 2 of 2 (a) (b) (c) Test Line 12-Mo. End No. Description 06/30/16 Reference 1 Total Electric Sales Revenue excluding PLD 4,515,299 2 Less: Nuclear Surcharge Revenue 37,146 3 Energy Optimization Surcharge Revenue 97,135 4 Renewable Program Surcharge Revenue 23,080 5 Low Income Energy Assistance Fund (LIEAF) Surcharge Revenue 25,115 6 Electric Sales Revenue excluding Surcharges 4,332,823 Line 1 less Lines 2 through 5 Source: Witness Heiser Workpaper A-13WPF1, Support Schedule 14, page 4, line 63

6 Calculation of Power Supply Expenses Schedule: C4 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 DTE Electric Power Supply Projected Sales (MWh) 42,722,513 Exhibit A-12, Schedule E3 6 7 Transmission Expense $ 305,671,000 U-15768; Ex. A-10, C Base Transmission Expense at PSCR Sales Level (mills/kwh) 7.15 (Line 7 / Line 5) Base Fuel & PP Expense at PSCR Sales Level (mills/kwh) (Line 3 - Line 9) Test Year Power Supply Costs (Less Transmission) DTE Electric Power Supply Projected Sales (MWh) 42,722,513 Line 5 16 DTE Electric R10 & R3 MISO Pricing Option Projected Sales (MWh) 1,786,860 Exhibit A-14, Schedule F3 (R3 & R10 MISO option) 17 DTE Electric Retail Sales (less R10 & R3) (MWh) 40,935, DTE Electric Retail Power Supply Costs (less R10) $ 1,073,955,078 (Line 17 * Line 11) 20 R10 & R3 MISO Pricing Option Costs 63,540,742 (Line 16 * $35.56/MWh) 21 Voltge Level Service Adder 1,018,932 Exhibit A-14, Schedule F3 (R3 & R10 MISO option) 22 DTE Electric Total Power Supply Costs $ 1,138,514, R10 and R3 Transmission $ 12,784, PSCR Sales Transmission $ 292,886, Transmission Expense $ 305,671, Total Expense $ 1,444,185,752

7 Operation and Maintenance Expenses Schedule: C5 Summary Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16 - Exhibit 12/31/13 Adjusted 12/31/14 12/31/15 6/30/16 Total Line Source Historical Rate Case Normalization Historical Inflation Inflation Inflation Other Projected Projected No. Description A-10 Test Period Adjustments Adjustments Test Period Adjustment Adjustment Adjustment Adjustments Adjustments Test Period 1 Steam Power Generation C ,221 (175) - 296,046 5,921 4,530 2,145 12,856 25, ,498 2 Fuel Supply & MERC Fuel Handling C5.2 17,244 (5,950) - 11, ,775 3 Nuclear Power Generation C ,957 (24,412) - 125,545 2,511 1, ,957 11, ,844 4 Hydraulic Power Generation C5.4 9, , ,980 5 Other Power Generation C5.5 23,031 (6,341) - 16, ,400 6 Distribution C ,569 (11,480) - 297,089 5,942 4,545 2,153 (20,883) (8,242) 288,847 7 Customer Service and Marketing C ,993 (75,754) - 100,239 2,005 1, ,250 5, ,754 8 Uncollectible Accounts Expense C5.7 52, , ,799 9 Corporate Support C ,560 (17,055) (14,713) 168,792 3,016 2,307 1,093 (9,845) (3,429) 165, Pension and Benefits C ,744 (4,190) - 172,554 4,059 4,832 2,571 1,277 12, , AMI & Smart Currents C (14,153) (14,153) (14,153) 12 Acquisition 1 (March 2015) Dimitry ,600 2,600 2, Acquisition 2 (June 2015) Dimitry ,100 1,100 1, Total O&M Expense 1,410,692 (145,357) (14,713) 1,250,623 24,204 20,243 9,871 (19,842) 34,476 1,285,098

8 Operation and Maintenance Expenses Schedule: C5.1 Steam Power Generation Witness: F. D. Warren ($000) Page: 1 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Projected Adjustments 1/1/13 - Reclass Fuel 1/1/14-1/1/15-1/1/16-12/31/13 Supply & MERC Other Adjusted 12/31/14 12/31/15 6/30/16 Harbor Total Line Historical Test Fuel Handling Rate Case Historical Inflation Adj Inflation Adj Inflation Adj Beach Other Projected Projected No. Description Account Period 1/ 2/ Adjustments Test Period 4/ 4/ 4/ 5/ Adjustments Adjustments Test Period 1 Steam Power Generation sum (c) thru (e) sum (g) thru (k) (f) + (l) 2 Operation 3 Operation Supervision and Engineering ,329 (697) - 15, (239) ,058 4 Fuel Handling ,934 (15,532) - 21, ,313 5 Steam Expenses , , (543) 16,464 6/ 16,984 41,967 6 Steam from Other Sources (Less) Steam Transferred-Cr Electric Expenses 505 6, , (362) - (76) 6,648 9 Misc Steam Power Expenses ,422 (13) - 62,409 1, (266) - 2,389 64, Rents Allowances (175) 3/ (0) (0) (0) (0) - - (0) (0) 12 Total Operation Expense 147,567 (16,241) (175) 131,151 2,623 2, (1,410) 16,464 20, , Maintenance 14 Maintenance Supervision and Engineering 510 1,131 (208) Maintenance of Structures , , (263) , Maintenance of Boilers , ,621 1,832 1, (869) (250) 7/ 2,779 94, Maintenance of Electric Plant , , (144) , Maintenance of Misc Steam Plant ,906 (795) - 32, (672) , Total Maintenance Expense 165,899 (1,003) - 164,895 3,298 2,523 1,195 (1,948) (250) 4, , Less Fuel Supply & MERC Fuel Handling (17,244) 17, Total Steam Power Generation 296,221 - (175) 296,046 5,921 4,530 2,145 (3,358) 16,214 25, , Account 1/1/14-1/1/15-1/1/ / MPPA Credit included above 506 (3,531) 12/31/14 12/31/15 6/30/ (5,873) 4/ Annual Inflation Rate 2.0% 1.5% 1.4% 25 (9,403) No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7% 27 2/ Reclassify Fuel Supply and MERC Fuel Handling 28 sponsored by Witness Schoen on Exhibit A-10 C5.2 5/ Harbor Beach - retired in December / Environmental Costs (see Exh. A-10 C5.1 page 2) 30 3/ Eliminate Renewable Energy Program 7/ Trenton Channel 8 - to be retired in late 2014

9 Operation and Maintenance Expenses Schedule: C5.1 Environmental O&M Costs Witness: F. D. Warren ($000) Page: 2 of 2 (a) (b) (c) (d) (e) Projected Historical Test Period Line Test Period 7/1/15 - Projection No. Description /30/16 Adjustment Note col. (c)- col. (b) 1 Equipment: 2 FGD Equipment (Flue Gas Desulfurization) 10,690 16,433 5,743 3 SCR Equipment (Selective Catalytic Reduction) U2A Equipment (Urea to Ammonia) 1,100 1, Dry Sorbent Injection (DSI)/ACI Chemicals: 7 Limestone Chemical 1,253 2,439 1, Trona/DSI Chemical - 8,572 8, Total Environmental O&M Costs 13,343 29,807 16,464 1/ There is a pending request to recover limestone expense in the Company s 2015 PSCR plan, Case No. U The Company is making a corresponding request in this proceeding. If approved, the Company would reflect only the incremental amount in the applicable PSCR reconciliation. 2/ There is a pending request to recover trona expense through the PSCR in the Company s 2013 PSCR plan, Case No. U If approved, the request for approval of O&M expense associated with trona in this case is withdrawn.

10 Projected Operation and Maintenance Expenses Schedule: C5.2 Fuel Supply & Midwest Energy Resources Company (MERC) Witness: R. R. Schoen ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Rate Case Adjusted 12/31/14 12/31/15 6/30/16 Total Line Historical Adjustment Historical Inflation Adj Inflation Adj Inflation Adj Other Projected Projected No. Description Account Test Period 1/ Test Period 2/ 2/ 2/ Adjustments Adjustments Test Period (c) + (d) sum (f) thru (i) (e) + (j) 1 Fuel Supply 2 Operation Supervision and Engineering Fuel Handling 501 5,491-5, ,725 4 Misc Steam Power Expenses Maintenance Supervision and Engineering Maintenance of Misc Steam Plant Total Fuel Supply 7,204-7, ,510 8 MERC Fuel Handling 9 O&M 4,091-4, , Depreciation 2,129 (2,129) Property Taxes 1,082 (1,082) Income Taxes 39 (39) Interest Expense 2,700 (2,700) Total MERC Fuel Handling ,041 (5,950) 4, , Total Fuel Supply & MERC Fuel Handling 17,244 (5,950) 11, , /1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/ / MERC fuel handling is reallocated to the proper line item 2/ Annual Inflation Rate 2.0% 1.5% 1.4% 19 classification within net operating income as shown on No. of Months in Period Exhibit A-3 C11 sponsored by Witness Uzenski. Pro-rated Inflation Rate 2.0% 1.5% 0.7%

11 Projected Operation and Maintenance Expenses Schedule: C5.3 Nuclear Power Generation Witness: W. A. Colonnello ($000) Page: 1 of 2 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Rate Case Adjusted 12/31/14 12/31/15 6/30/16 Other Total Line Historical Adjustments Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Account Test Period 1/ Test Period 2/ 2/ 2/ 3/ Adjustments Test Period 1 Nuclear Power Generation (c) + (d) sum (f) thru (i) (e) + (j) 2 Operation 3 Operation Supervision and Engineering ,918 (391) 14, ,145 4 Coolants and Water 519 3,294 (1,690) 1, ,672 5 Steam Expenses ,746 (7,799) 6, ,184 1,480 8,427 6 Steam from Other Sources (Less) Steam Transferred-Cr Electric Expenses 523 4,282-4, ,464 9 Misc Nuclear Power Expenses ,157 (14,532) 40, ,221 2,949 43, Rents Station Expense Total Operation Expense 92,411 (24,412) 67,999 1,360 1, ,405 5,298 73, Maintenance 14 Maintenance Supervision and Engineering ,944-11, , Maintenance of Structures ,088-16, , Maintenance of Reactor Plant Equipment ,209-21, ,552 4,454 25, Maintenance of Electric Plant 531 5,608-5, , Maintenance of Misc Nuclear Plant 532 2,696-2, , Maintenance of station equipment Total Maintenance Expense 57,546-57,546 1, ,552 6,000 63, Total Operation and Maintenance Expense 149,957 (24,412) 125,545 2,511 1, ,957 11, , /1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/ / Eliminate O&M expenses recovered separately in 2/ Annual Inflation Rate 2.0% 1.5% 1.4% 25 Nuclear Surcharge No. of Months in Period Account Amount Pro-rated Inflation Rate 2.0% 1.5% 0.7% 27 Site Security ,524 (13,842) 28 Radiation Protection 524 (10,570) 3/ Other Projected Adjustments: Account Amount 29 (24,412) Nuclear Fuel Offload 524 5, Expected Lawsuit Proceeds (95%) 524 (5,370) 31 Nuclear Fuel Offload, Net Adjustment Outage Accrual Steam Expense 520 1, Outage Accrual Reactor Plant Maintenance 530 3, NRC Dues Increase ,957

12 O&M Expense - Nuclear Generation Schedule: C5.3 Historical Test Year Witness: W. A. Colonnello ($000) Page: 2 of 2 (a) (b) Adjusted Historical Line 12 Months Ended No. Organization 12/31/13 1 Nuclear Organization 94,410 2 Regulatory Assessments and Dues 12,334 3 Nuclear Organization - Base 106,744 4 PO HPV Bearing 1,881 5 PO HPCV PO Plant Cold PO Generator Flushing 68 8 Emergent Projects 3,095 9 Refueling Outage 10 Refuel Outage - 11 Refuel Outage Accrual 15, Refuel Outage Reversal - 13 Total Refueling Outage 15, Total Nuclear Generation 125, FERC Account Summary 16 Operating FERC Accounts 67, Maintenance FERC Accounts 57, Total Nuclear FERC Accounts 125,545

13 Operation and Maintenance Expenses Schedule: C5.4 Hydraulic Power Generation Witness: F. D. Warren ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Adjusted 12/31/14 12/31/15 6/30/16 Total Line Historical Rate Case Historical Inflation Adj Inflation Adj Inflation Adj Other Projected Projected No. Description Account Test Period Adjustments Test Period 1/ 1/ 1/ Adjustments Adjustments Test Period 1 Hydraulic Power Generation (c) + (d) sum (f) thru (i) (e) + (j) 2 Operation 3 Operation Supervision and Engineering 535 1,469-1, ,532 4 Water for Power Hydraulic Expenses 537 1,321-1, ,378 6 Electric Expenses Misc Hydraulic Power Expenses Rents Total Operation Expense 4,126-4, , Maintenance 11 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Reservoirs, Dams 543 1,058-1, , Maintenance of Electric Plant 544 1,782-1, , Maintenance of Misc Hydraulic Plant 545 1,811-1, , Total Maintenance Expense 5,446-5, , Total Hydraulic Power Generation 9,572-9, , /1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/ / Annual Inflation Rate 2.0% 1.5% 1.4% 21 No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7%

14 Operation and Maintenance Expenses Schedule: C5.5 Other Power Generation Witness: F. D. Warren ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Rate Case Adjusted 12/31/14 12/31/15 6/30/16 Total Line Historical Adjustments Historical Inflation Adj Inflation Adj Inflation Adj Other Projected Projected No. Description Account Test Period 1/ Test Period 2/ 2/ 2/ Adjustments Adjustments Test Period 1 Other Power Generation (c) + (d) sum (f) thru (i) (e) + (j) 2 Operation 3 Operation Supervision and Engineering Generation Expenses Misc Other Power Expenses 549 1,466 (500) ,008 6 Rents Total Operation Expense 1,535 (500) 1, ,080 8 Maintenance 9 Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Generating & Electric Plant ,901 (5,842) 8, , Maintenance of Misc Other Power Plant Total Maintenance Expense 13,901 (5,842) 8, , Power Supply Related Expenses 15 Operation Supervision and Engineering 556 7,595-7, , Generation Expenses Total Expense 7,595-7, , Total Other Power Generation Expenses 23,031 (6,341) 16, , / Eliminate Renewable Energy Program /1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/ / Annual Inflation Rate 2.0% 1.5% 1.4% 24 No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7%

15 Projected Operation and Maintenance Expenses Schedule: C5.6 Distribution Expenses Witness: R. J. Pogats ($000) Page: 1 of 3 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Adjusted 12/31/14 12/31/15 6/30/16 Total Line Historical Rate Case Historical Inflation Adj Inflation Adj Inflation Adj Restoration Other Projected Projected No. Description Account Test Period Adjustment Test Period 2/ 2/ 2/ Adjustment Adjustments Adjustments Test Period 1 Distribution Expenses (c) + (d) sum (f) thru (j) (e) + (k) 2 Operation 3 Operation Supervision and Engineering ,700-50,700 1, ,157 52,857 4 Load Dispatching 581 2,693-2, ,808 5 Station Expenses 582 9,993-9, ,418 6 Overhead Line Expenses 583 8,237-8, ,588 7 Underground Line Expenses 584 2,791-2, ,910 8 Street Lighting and Signal System Exp Meter Expenses ,216-14, , Customer Installations Expenses Miscellaneous Expenses ,372-16, , Rents ,482 (11,480) 1/ Total Operation Expense 117,379 (11,480) 105,899 2,118 1, , , Maintenance 15 Maintenance Supervision and Engineerin 590 3,074-3, , Maintenance of Structures 591 3,044-3, , Maintenance of Station Equipment ,258-21, ,000 4/ 2,904 24, Maintenance of Overhead Lines , ,749 2,815 2,153 1,020 (12,483) 3/ (10,400) 5/ (16,894) 123, Maintenance of Underground Lines ,789-19, , Maintenance of Line Transformers Maintenance of Street Lighting and 596 3,276-3, ,416 Signal Systems Maintenance of Meters Maintenance of Misc Distribution Plant Total Maintenance Expense 191, ,190 3,824 2,925 1,386 (12,483) (8,400) (12,748) 178, Total Operation and Maintenance Expense 308,569 (11,480) 297,089 5,942 4,545 2,153 (12,483) (8,400) (8,242) 288, / AT&T Pole Rental Net Adjustment (sponsored by Witness Uzenski) 27 2/ Inflation Adjustment: 1/1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/16 29 Annual Rate 2.0% 1.5% 1.4% 30 No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7% 32 3/ Restoration Adjustment (see Exhibit A-10 C5.6 page 2) 33 4/ Maintenance 34 5/ Line Clearance (see Exhibit A-10 C5.6 page 3)

16 Projected Operation and Maintenance Expenses Schedule: C5.6 Restoration Adjustment Witness: R. J. Pogats ($000) Page: 2 of 3 (a) (b) (c) (d) (e) (f) (g) (h) (i) 1/1/13-12/31/13 Line Actual Actual Actual Actual Forecast Historical Restoration No. Description Yr Avg Test Period Adjustment 1/ 1 Storm 62,214 86,065 49,866 82, ,555 77,265 82,623 2 Non-Storm Restoration 75,167 85,555 93,885 77,079 68,090 79,955 77,079 3 Total 137, , , , , , ,703 (2,483) 4 Storm Capitalization Policy (10,000) 5 Total Restoration Adjustment (12,483) (g) - (h) 1/ Adjustment carried to column (i) of page 1

17 Projected Operation and Maintenance Expenses Schedule: C5.6 Vegetation Management Expenses Witness: R. J. Pogats ($000) Page: 3 of 3 (a) (b) (c) (d) (e) (f) (g) (h) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 12/31/14 12/31/15 6/30/16 Other Total Line Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Test Period 1/ 1/ 1/ 2/ Adjustments Test Period sum (c) thru (f) (b) + (g) 1 Vegetation Management Expenses 56,946 1, (10,400) (7,977) 48, / Inflation Adjustment: 1/1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/16 4 Annual Rate 2.0% 1.5% 1.4% 5 No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7% 7 2/ Other Projected Adjustments: 8 Hazardous Tree Removal 2,000 9 Modifications due to EVMP Method (12,400) 10 Total Adjustments (10,400) carried to column (j), line 18 of page1

18 Projected Operation and Maintenance Expenses Schedule: C5.7 Customer Service and Marketing Witness: R. M. Tomina ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Projected Adjustments 1/1/13 - Rate Case Adjustments 1/1/14-1/1/15-1/1/16-12/31/13 Eliminate Eliminate Adjusted 12/31/14 12/31/15 6/30/16 Total Line Historical Energy Renewable Eliminate Historical Inflation Inflation Inflation Other Projected Projected No. Description Account Test Period Optimization Energy Prog. LIEAF Test Period 1/ 1/ 1/ Adjustments Adjustments Test Period 1 Customer Accounts Expenses sum (c) thru (f) sum (g) thru (k) (g) + (l) 2 Operation 3 Supervision Meter Reading Expenses , , ,958 5 Customer Records and Collection Expenses , ,709 1, ,711 66,420 6 Miscellaneous Customer Accounts Expense ,274 (30,194) Total Operation Expense 105,175 (30,194) ,981 1,500 1, ,190 78,171 8 Customer Service and Informational Expenses 9 Operation 10 Supervision 907 3,866 (805) (412) - 2, , Customer Assistance Expenses ,539 (30,531) (3,368) (8,440) 18, , Informational and Instructional Expenses 909 2,001 (2,003) - - (2) (0) (0) (0) - (0) (2) 13 Miscellaneous Customer Service and 910 2, , , Informational Expenses - 15 Total Operation Expense 69,017 (33,339) (3,780) (8,440) 23, , Sales Expenses 17 Operation 18 Supervision Demonstrating and Selling Expenses 912 1, , , Advertising Expenses Miscellaneous Sales Expenses ,250 2/ 1,270 1, Total Operation Expense 1, , ,250 1,327 3, Sub-Total 175,993 (63,533) (3,780) (8,440) 100,239 2,005 1, ,250 5, , Uncollectible Accounts , , , Total Customer Service and Marketing 228,793 (63,533) (3,780) (8,440) 153,039 2,005 1, ,250 5, , /1/14-1/1/15-1/1/ /31/14 12/31/15 6/30/ / Annual Inflation Rate 2.0% 1.5% 1.4% 29 No. of Months in Period Pro-rated Inflation Rate 2.0% 1.5% 0.7% 31 2/ Plug-in Vehicles (PEV) Amortization sponsored by Witness Uzenski 32 ($6,250 Deferred Debit balance amortized over 5 years)

19 Projected Operation and Maintenance Expenses Schedule: C5.8 Administrative and General Expenses Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Projected Adjustments 1/1/13-1/1/14-1/1/15-1/1/16-12/31/13 Rate Case Normalization Adjusted 12/31/14 12/31/15 6/30/16 Other Total Line Historical Adjustments Adjustments Historical Inflation Adj Inflation Adj Inflation Adj Adjustments Projected Projected No. Description Account Test Period 1/ 2/ Test Period 3/ 3/ 3/ 4/ Adjustments Test Period 1 Administrative and General Expenses sum (c) thru (e) sum (f) thru (j) (f) + (k) 2 Operation 3 Administrative and General Salaries ,236 (12,198) (14,713) 98,325 1,967 1, (17,153) (12,970) 85,356 4 Office Supplies and Expenses , , ,210 29,652 5 (Less) Administrative Expenses Transferred-Cr. 922 (23,583) - - (23,583) (472) (361) (171) - (1,003) (24,586) 6 Outside Services Employeed , , ,088 26,663 7 Property Insurance 924 7,548 (198) - 7, ,663 8 Injuries and Damages , , ,308 2,308 20,304 9 Franchise Requirements Regulatory Commission Expenses (Less) Duplicate Charges-Cr General Advertising Expenses ,599 (1,981) - 1, , Miscellaneous General Expenses ,339 (1,825) - 3, ,000 5,150 8, Rents 931 4,839 (853) - 3, , Total Operation Expense 195,440 (17,055) (14,713) 163,672 2,914 2,229 1,056 (9,845) (3,647) 160, Maintenance 17 Maintenance of General Plant 935 5, , , Total Maintenance Expense 5, , , Grand Total Operation & Mainenance Expense 200,560 (17,055) (14,713) 168,792 3,016 2,307 1,093 (9,845) (3,429) 165, Historical 1/1/14-1/1/15-1/1/16-21 Account Adjustment 12/31/14 12/31/15 6/30/ / Rate Case Adjustments: 3/ Annual Inflation Rate 2.0% 1.5% 1.4% 23 Eliminate Executive Incentive Plan Compensation 920 (12,198) No. of Months in Period Eliminate Renewable Energy Program 924 (198) Pro-rated Inflation Rate 2.0% 1.5% 0.7% 25 Disallowed Advertising Expenses (1,981) 26 Disallowed Corporate Memberships (1,190) 4/ Other Projected Adjustment: Account Amount 27 Eliminate Energy Optimization Program (194) Change from Liability to Equity Accting for Perf. Shares 920 (17,153) 28 Eliminate Renewable Energy Program (441) Injuries & Damages based on five year historical average 925 2, Eliminate MGM Rent Expense 931 (853) Cloud Technology , Total Rate Case Adjustments (17,055) (9,845) 31 2/ Normalization Adjustment: 32 Employee Incentive Plan Adjustment 920 (14,713)

20 Projected Operation and Maintenance Expenses Schedule: C5.9 Employee Pensions and Benefits Witness: J. C. Wuepper Projected 12 Month Period Ending June 30, 2016 Page: 1 of 2 ($000) (a) (b) (c) (d) Employee Pensions and Benefits Expense Historical Projected Line Period Ending Period Ending No. Description 12/31/13 Adjustments 6/30/16 1 Post-Retirement Benefits 2 Pension 119,720 (24,451) 95,269 3 Post Empl Hlth Care (OPEB) (16,035) (37,567) (53,602) 4 New Hire Retiree VEBA 1,346 1,813 3,159 5 OPEB Regulatory Deferral - 53,602 53,602 1/ 6 Employee Savings Plan 21,488 4,308 25,797 7 Subtotal Post-Retirement 126,519 (2,295) 124,224-8 Active Healthcare - 9 Benefit Plan Admin Fees 5, , Healthcare Expenses 84,055 15,786 99, Dental Expenses 6,252 1,174 7, Vision Expenses Life Insurance 4, , Retiree Actual Benefit Pmts (47,934) (9,002) (56,936) 15 Subtotal Active Healthcare 52,958 8,788 61, Other 17 Accrued Vacation Expense (153) (18) (171) 18 Supplemental Retirement Plan - 1,607 1, Executive Supplemental Retirement Plan - 4,624 4, Wellness Plan Expenses 2, , Disability Expenses 1, , Affordable Care Act NonQual Savings Plan/Deferred Comp 2,632 (684) 1, General Benefit Expenses 1, , Retirement Administration Fees Payroll - Other Labor O&M Project Reimbursements (644) (1,733) (2,376) 28 Subtotal Other 7,076 4,497 11, Total before Other Allocations 186,554 10, , A&G Capitalization (4,647) 53 (4,594) 31 Other Transfers & Allocations (5,162) 59 (5,103) 32 Eliminate Energy Optimization (EO) - (1,159) (1,159) 33 Eliminate Renewable Energy Program (REP) - (1,395) (1,395) 34 Total Benefit Expense (Account 926) 176,744 8, ,293 1/ OPEB Regulatory Deferral sponsored by Witness Uzenski on Exh. A-10 C5.12

21 Projected Operation and Maintenance Expenses Schedule: C5.9 Employee Pension and Benefits ($000) Witness: J. C. Wuepper Projected 12 Month Period Ending June 30, 2016 Page: 2 of 2 ($000) (a) (b) (c) (d) (e) (f) (h) (i) (j) Projected Adjustments Historical Adjusted 1/1/14-1/1/15-1/1/16 - Total Projected Line Period Ending Rate Case Historical 12/31/14 12/31/15 6/30/16 Other Projected Period Ending No. Description 12/31/13 Adjustments Test Period Inflation 1/ Inflation 1/ Inflation 1/ Adjustments Adjustments 6/30/16 Col (b) + Col (c) Sum (e) thru (h) Col (d) + Col (i) 1 Post-Retirement Benefits 2 Pension 119, , (24,451) (24,451) 95,269 2/ 3 Post Empl Hlth Care (OPEB) (16,035) - (16,035) (37,567) (37,567) (53,602) 3/ 4 New Hire Retiree VEBA 1,346-1, ,813 1,813 3,159 5 OPEB Regulatory Deferral 4/ ,602 53,602 53,602 6 Employee Savings Plan 21,488-21, , ,820 4,308 25,797 7 Subtotal Post-Retirement 126, , , (4,784) (2,295) 124,224 8 Active Healthcare 9 Benefit Plan Admin Fees 5,734-5, , Healthcare Expenses 84,055-84,055 5,464 6,714 3,609-15,786 99, Dental Expenses 6,252-6, ,174 7, Vision Expenses Life Insurance 4,511-4, , Retiree Actual Benefit Pmts (47,934) - (47,934) (3,116) (3,829) (2,058) - (9,002) (56,936) 15 Subtotal Active Healthcare 52,958-52,958 3,080 3,718 1,990-8,788 61, Other 17 Accrued Vacation Expense (153) - (153) (6) (7) (4) - (18) (171) 18 Supplemental Retirement Plan ,607 1,607 1, Executive Supplemental Retirement Pla ,624 4,624 4, Wellness Plan Expenses 2,027-2, , Disability Expenses 1,057-1, , Affordable Care Act NonQual Savings Plan/Deferred Comp 2,632-2, (684) (684) 1, General Benefit Expenses 1,551-1, , Retirement Administration Fees Payroll - Other Labor O&M Project Reimbursements 5/ (644) (1,636) (2,279) (46) (35) (17) - (97) (2,376) 28 Subtotal Other 7,076 (1,636) 5, ,948 6,133 11, Total before Other Allocations 186,554 (1,636) 184,918 4,059 4,832 2,571 1,164 12, , A&G Capitalization (4,647) - (4,647) (4,594) 31 Other Transfers & Allocations (5,162) - (5,162) (5,103) 32 Eliminate EO 6/ - (1,159) (1,159) (1,159) 33 Eliminate REP 6/ - (1,395) (1,395) (1,395) 34 Total Benefit Expense (Account 926) 176,744 (4,190) 172,554 4,059 4,832 2,571 1,277 12, ,293 1/ Inflation Adjustment Factors: see table below 2/ Carried from Line 17 of Exhibit A-10 C5.10 3/ Carried from Line 17 of Exhibit A-10 C5.11 4/ OPEB Regulatory Deferral sponsored by Witness Uzenski on Exh. A-10 C5.12 5/ Related to Belle River Power Plant chargeout agreement (reclassification adjustment sponsored by Witness Uzenski) 6/ Eliminate benefits expense included in separate surcharge mechanisms (sponsored by Witness Uzenski on Exh. A-3 C16-EO and Exh. A-3 C17-REP)

22 Projected Operation and Maintenance Expenses Schedule: C5.10 Pension Cost - Qualified Witness: J. C. Wuepper Projected 12 Month Period Ending June 30, 2016 Page: 1 of 1 ($000) (a) (b) (c) (d) Pension Cost - Qualified Historical Projected Line Period Ending Period Ending No. Description 12/31/13 Adjustments 6/30/16 1 Cost Components: 2 Service cost 71,928 (1,601) 70,327 3 Interest cost 142,334 17, ,830 4 Expected return on assets (184,661) (32,136) (216,797) 5 Amortization: 6 Net (Gain)/Loss 144,777 (21,365) 123,413 7 Prior service cost Transition Total Amortization 145,462 (21,108) 124, Net ASC (SFAS 87) Cost 175,063 (37,348) 137, Reconcile Cost to Expense 12 Expense before capitalization & transfers 175,063 (37,348) 137, Adjustments: 14 Transfers out (30,174) 4,330 (25,843) 15 Transfers in 25,312 (2,362) 22, Capitalization (50,481) 10,928 (39,553) 17 Expense amount per Exhibit A-10 C ,720 (24,451) 95,269

23 Projected Operation and Maintenance Expenses Schedule: C5.11 Other Post Employment Benefits (OPEB) Witness: J. C. Wuepper Projected 12 Month Period Ending June 30, 2016 Page: 1 of 1 ($000) (a) (b) (c) (d) Other Post Employment Benefits (OPEB) Historical Projected Line Period Ending Period Ending No. Description 12/31/13 Adjustments 6/30/16 1 Cost Components: 2 Service cost 35,049 (10,141) 24,908 3 Interest cost 66,775 (1,625) 65,150 4 Expected return on assets (74,286) (24,030) (98,316) 5 Amortization: 6 Net (Gain)/Loss 47,150 (25,372) 21,778 7 Prior service cost (99,371) 7,503 (91,869) 8 Transition Total Amortization (52,221) (17,870) (70,091) 10 Net ASC (SFAS 106) Cost (24,683) (53,665) (78,349) 11 Reconcile Cost to Expense 12 Expense before capitalization & transfers (24,683) (53,665) (78,349) 13 Adjustments: 14 Transfers out (7,098) 2,628 (4,470) 15 Transfers in 7,691 (1,807) 5, Capitalization 8,055 15,277 23, Expense amount per Exhibit A-10 C5.9 (16,035) (37,567) (53,602)

24 Projected Operation and Maintenance Expenses Schedule: C5.12 Other Post Employment Benefits (OPEB) Regulatory Deferral Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) Projected Calendar Year Projected Split Year Projected Line Annual Annual Jan-Jun Jul-Dec Jan-Jun Jul-Dec Test Period No. Description TME 6/30/16 Reference col.(e)+ col.(f) 1 OPEB Expense (1): 2 Service cost 25,252 24,564 12,626 12,626 12,282 12,282 24,908 3 Interest cost 64,732 65,568 32,366 32,366 32,784 32,784 65,150 4 Expected return (94,916) (101,716) (47,458) (47,458) (50,858) (50,858) (98,316) 5 Amortizations (71,898) (68,283) (35,949) (35,949) (34,142) (34,142) (70,091) 6 Total OPEB Expense (76,830) (79,867) (38,415) (38,415) (39,934) (39,934) (78,349) 7 Capitalized and Transferred 24,297 25,197 12,149 12,149 12,598 12,598 24,747 8 Total OPEB Expense (O&M) (52,533) (54,670) (26,266) (26,266) (27,335) (27,335) (53,602) 9 OPEB Regulatory Deferral (2) 26,266 27,335 27,335 53,602 Line 8 (1) Source: Annual Expense per Actuary Report (also see workpaper JCW-2) (2) Effective with test period beginning July 1, 2015

25 Projected Operation and Maintenance Expenses Schedule: C5.13 Advanced Metering Infrastructure (AMI) - Net Savings Witness: R. E. Sitkauskas ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) Program Expenses /(Savings) Historical Projected Projected Projected Projected 12 Months 12 Months 12 Months 12 Months Test Period Projected Line Ending Ending Ending Ending 7/1/15 - Net Savings No. Description Account 12/31/13 12/31/14 12/31/15 12/31/16 6/30/16 Adjustment 1 Distribution Expenses 1/ col. (e)/2+col. (f)/2 col. (g) - col. (c) 2 AMI Meter Expenses 2,582 2,774 3,147 3,266 3, Meter Expenses & Other Distribution Savings (2,299) (3,376) (4,692) (5,867) (5,279) (2,980) 4 Total Distribution - Net O&M Cost/(Savings) (602) (1,545) (2,600) (2,072) (2,355) 5 Customer Service and Marketing 6 AMI Customer Service & Marketing Expenses 2,704 2,606 1,819 1,794 1,806 (898) 7 Meter Reading & Other Customer Service Savings (11,830) (15,031) (19,998) (25,462) (22,730) (10,900) 8 Total Cust. Service & Mkting - Net O&M Cost/(Savings) 902 / 903 (9,126) (12,425) (18,179) (23,669) (20,924) (11,798) 9 Total AMI - Net O&M Cost/(Savings) (8,843) (13,027) (19,724) (26,269) (22,996) (14,153) 2/ 10 1/ Historical test period savings embedded in Exhibit A-10 C5.6 and C / Projected adjustment carried to Exhibit A-10 C5

26 Test Period Operation and Maintenance Expense Schedule: C5.14 Power Supply Related Expenses Witness: K. A. Holmes ($000) Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) Other Power Supply Projected Adjusted Period FERC/ Historical Reclasses/ Historical 7/1/15 - Line MPSC Test Period Adjustments Test Period Adjustments 6/30/16 No. Description Account (1) (2) (3) col. (e) - (c) col. (g) - (e) 1 Power Supply Related Expenses 2 Fuel - Steam ,050 3 Allowances ,539 4 Fuel - Nuclear ,389 5 Fuel - Other ,730 6 Purchased Power ,425 7 Other Power Supply 557 (45,346) 8 Load Dispatching ,497 9 Transmission of Electricity by Others , Regional Market Expenses , Total Power Supply Related Expenses 1,640,835 (192,894) 1,447,941 (3,755) 1,444,186 (1) See Witness Uzenski's Exhibit A-3, Schedule C4 (2) See Witness Uzenski's Exhibit A-3, Schedule C1, col. (d), line 30 (3) See Exhibit A-10, Schedule C4

27 Projected Depreciation and Amortization Expense Schedule: C6 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 1 of 2 (a) (b) (c) (d) (e) Adj. Historical Test Line 12-Mo. End Projection 12-Mo. End No. Description 12/31/13 Adjustments 06/30/16 Reference 1 Depreciation & Amort ( , 411.1) 2 Plant DD&A (403, 403.1) 469,317 90, ,876 Exhibit A-10 C6 page 2, line 14, col. (j) 3 Software Amortization / Intangible (405) 55,206 7,263 62,469 Exhibit A-10 C6 page 2, line 18, col. (j) 4 Subtotal Plant Depr. & Amortization 524,523 97, ,345 Exhibit A-10 C6 page 2, line 20, col. (j) 5 AFUDC-Reg Asset Amort (407.3) DTE-2 Reg Asset Amort (407.3) 2,611-2,611 7 Amortization of CTA (407.3) 18,004-18,004 8 Amortization of COLA - 5,094 5,094 9 Depreciation & Amortization 545, , ,202

28 DTE Electric Company Exhibit No.: A-10 Projected Depreciation and Amortization Expense Schedule No.: C6 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 2 of 2 (a) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Ending Plant Balance & Activity Depreciation & Amortization Expense Historical Average Projected Historical Period 18-Mo. End Projected 12-Mo. End Projected Balance Annual Expense Expense Line 12/31/13 6/30/15 6/30/15 6/30/16 6/30/16 6/30/2015 Composite 12-Mo. End 12-Mo. End Projection No. Description Balance Plant Adj. 1/ Balance Plant Adj. 1/ Balance - 6/30/2016 Depr. Rate 1/ 6/30/16 12/31/13 Change col. (c)+ (d) col. (e)+ (f) (col. (e)+(g)) /2 col. (h) x (i) col. (j) - (k) 1 Depreciable Plant: 2 Production Plant, Steam 6,518, ,246 7,441, ,977 7,658,062 7,549, % 151, ,268 21,894 3 Production Plant, Nuclear 516, , , , , , % 30,516 20,427 10,089 4 Production Plant, Hydraulic 194, , ,776 71, , , % 10,065 5,924 4,140 5 Production Plant, Other 285,530 3, ,599 3, , , % 10,774 10, Production Plant, MERC 79,514 3,969 83,484 2,465 85,949 84, % 2,381 2, Transmission Plant 89,568 (1,948) 87,620 (1,299) 86,321 86, % 1,364 1,382 (18) 8 Distribution Plant 6,571, ,896 7,060, ,206 7,422,428 7,241, % 282, ,501 29,792 9 Distribution Plant, AMI 125,587 91, ,887 50, , , % 12,106 3,140 8, General Plant, Amortizable 234,110 (21,194) 212,916 (20,369) 192, , % 16,752 18,920 (2,168) 11 General Plant, Depreciable 546,961 95, ,757 56, , , % 29,714 25,113 4, Acquisition 1-240, , , , % 9,000-9, Acquisition 2-100, , , , % 3,750-3, Total Depreciable Plant 15,162,878 2,200,002 17,362, ,079 18,219,959 17,791, , ,317 90, Intangible Plant, 5 year 161,257 43, ,579 13, , , % 42,304 31,665 10, Intangible Plant, 7 year 36,555 (14,993) 21,562 (17,276) 4,286 12, % 1,846 5,222 (3,376) 17 Intangible Plant, 15 year 274, , , , % 18,319 18, Total Intangible Plant 472,594 28, ,923 (3,392) 497, ,227 62,469 55,206 7, Land/Land Rights 65,078-65,078-65,078 65, Total Plant 15,700,551 2,228,331 17,928, ,687 18,782,569 18,355, , ,522 97, / Plant Adjustment Details: 22 Environmental Unitization (in Line 2 above) 782, , Other Plant Unitization 1,414, , Total Plant Unitization 2,197,466 1,110, Acquisition 1 240, Acquisition 2 100, Plant Retirements (309,135) (256,690) 28 Total Plant in Service Activity 2,228, ,687 1/ Reflects 2013 composite depreciation rates based on Case No. U detailed Final Order depreciation rates, effective July 2011

29 Projected Property and Other Taxes Schedule: C7 ($000) Witness: M. Lewis Page: 1 of 2 (a) (b) Line Projected No. Description Test Period 1 Payroll Taxes 40,336 2 MPSC Assessment 8,941 3 Property Taxes 239,266 4 Other Total 288,729

30 Property Tax Expense Schedule: C7 ($000) Witness: M. Lewis Page: 2 of 2 (a) (b) (c) (d) (e) Line Projected No. Description Test Period 1 Property Tax Expense 2 Prior Year Tax Liability 228,949 3 Incremental Taxes Assessed (calc. below) 17,584 4 Estimated Tax Liability 246, Expense Prior Year Liability (Line 2 x 61%) 61% 139,659 7 Current Year Liability (Line 4 x 39%) 39% 96,148 8 Property Tax Expense 235,807 9 Annual Expense Estimate, MERC 1, Annual Expense Estimate, Plant Acquistions 2, Property Tax Expense Adjusted 239, STC True Cash Value Taxable Value 14 Cost Multiplier (Cost x Multiplier) (True Cash Value x 50%) 15 Incremental Taxes Assessed 16 Retirements (170,617) 0.54 (92,133) (46,067) 17 Additions 898, , , Increment to Taxable Value 728, , , Taxable Value Prior Year Carryforward 4,152, Total Taxable Value 4,534, Taxable Value Prior Year Carryforward 4,152, x Depreciation Multiplier Annual Obsolescence (62,295) 25 Increment to Taxable Value 381, Property Tax Base 319, x Millage Incremental Taxes Assessed 17,584

31 Projected Federal Income Tax Schedule: C8 ($000) Witness: M. Lewis Page: 1 of 1 (a) Line Projected No. Description Test Period 1 Net Operating Income 584,062 2 Interest Expense (246,830) 3 Interest Synchronization (599) 4 Net Income 336, Current Federal Income Tax Expense 109,971 7 Deferred Federal Income Tax Expense 52,861 8 Total Federal Income Tax Expense 162, Pre-Tax Income 499, Permanent Differences 13 ESOP (6,921) 14 Meals and Entertainment Domestic Production Activities Deduction (6,550) 16 AFUDC Equity (21,846) 17 Total Permanent Differences (34,417) Temporary Differences 20 Pension (3,319) 21 OPEB (77,082) 22 Customer 360 Regulatory Asset Deferral (9,704) 23 COLA Amortization 3, OPEB Regulatory Liability Deferral 40, Plug-in Electric Vehicles Amortization Property Tax (20,482) 27 AFUDC Debt (12,635) 28 Book Depreciation 618, Tax Depreciation (430,189) 30 Salvage Proceeds 5, DTE2 Reg Asset Amortization 2, Contributions in Aid of Construction 24, Tax Interest During Construction 23, Repairs Deduction (99,100) 35 State Deferred Taxes 37, Casualty Loss Deduction (51,500) 37 Section 263A Adjustment (15,692) 38 Removal Costs (147,624) 39 Nuclear Fuel Book Amortization 54, Nuclear Fuel Tax Depreciation (42,215) 41 Miscellaneous Intangible Plant Deducted (78,854) 42 FERMI 2 Outage Accrual 5, Amortization FERMI License (880) 44 Loss on Reacquired Debt 2, Cost to Achieve Amortization 18, Total Temporary Differences (150,846) Total Permanent and Temporary Differences (185,262) Federal Taxable Income 314, Tax Rate 35% 52 Total Current Federal Income Tax Expense 109, Deferred Federal Income Tax Expense 52, Medicare Part D Subsidy Amortization 1, FAS 109 Amortization 2, Investment Tax Credit Amortization (4,348) 58 Total Deferred Federal Income Tax Expense 52, Total Federal Income Tax Expense 162,832 (b)

32 Projected Michigan Corporate Income Tax Schedule: C9 ($000) Witness: M. Lewis Page: 1 of 1 (a) (b) Line Projected No. Description Test Period 1 Federal Taxable Income 314,203 2 Depreciation Adjustment (173,252) 3 State and Local Taxes Based on Income 10,252 4 Domestic Production Activities Deduction 6,550 5 Michigan Taxable Income 157,753 6 Apportionment % 97% 7 Apportioned Michigan Corporate Income Tax Base 153,020 8 Tax Rate 6% 9 Current Michigan Corporate Income Tax 9, Deferred Michigan Corporate Income Tax 21, Amortization of MCIT Miscellaneous Deferred Debit 15, Total Deferred Michigan Corporate Income Tax 36, Total Michigan Corporate Income Tax 45,844

33 Municipal Income Tax Expense Schedule: C10 ($000) Witness: M. Lewis Page: 1 of 1 (a) Line Projected No. Description Test Period 1 Federal Taxable Income 314,203 2 Domestic Production Activities Deduction 6,550 3 Local Taxes Based on Income 1,070 4 Municipal Income Tax Base 321,823 5 Tax Rate % 6 Current Municipal Income Tax Expense 1, Deferred Municipal Income Tax Amortization of City of Detroit Miscellaneous Deferred Debit Total Deferred Municipal Income Tax 1, Total Municipal Income Tax 2,218 (b)

34 Projected Allowance for Funds Used During Construction Schedule: C11 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) Test Line Period No. Description 12/31/13 Changes 6/30/16 1 AFUDC - Equity 13,980 9,115 23,095 2 AFUDC - Debt 7,480 5,155 12,635 3 Total AFUDC 21,460 14,270 35,730 Exhibit A-3.C1 column (j) Exhibit A-10.C1.1 column (j)

35 Other Income / (Deductions) Schedule: C12 Projected 12 Month Period Ending June 30, 2016 Witness: T. M. Uzenski ($000) Page: 1 of 1 (a) (b) (c) (d) Test Line Period No. Description 12/31/13 Changes 6/30/16 1 Asset Gains/(Losses) (895) Other Income and (Deductions) Interest on Customer Deposits (1,548) - (1,548) 4 Unamortized Loss on Reacquired Debt Expense (3,186) 352 (2,834) 5 Net Other Income / (Deductions) (5,203) 1,247 (3,956) Exhibit A-3.C1 column (k) Exhibit A-10.C1.1 column (k)

36 Income Tax Effect of Interest Schedule: C13 Allowed in Ratemaking Formula - Total Electric Witness: M. A. Suchta 12 Months Ended 12/31/2013 and 6/30/2016 Page: 1 of 1 ($000) (a) (b) (c) (d) Line 6/30/2016 No. Description 12/31/2013 6/30/2016 Source 1 Total Electric Rate Base 11,397,329 13,581,502 Exh. A-9, Sch. B1 2 Weighted Cost of Debt (1) 2.00% 1.82% Exh. A-11, Sch. D1 3 Interest Allowed in Ratemaking Formula 227, ,830 Line 1 x Line 2 4 Interest Deduction Included in 5 Recorded Income Tax Accruals 242, ,116 A-10WPC13 6 Interest Deduction Change (14,729) (3,286) Line 3 - Line 5 7 Composite State and Municipal Income Tax Rate 6.15% 6.15% Exh. A-10, Sch. C2 8 Effect on State and Municipal Income Tax Expense (Line 6 x Line 7) x -1 9 Effect on Federal Taxable Income 13,823 3,084 (Line 6 - Line 8) x Federal Income Tax Rate 35.00% 35.00% Exh. A-10, Sch. C2 11 Effect on Federal Tax Expense 4,838 1,079 Line 9 x Line Total Tax Effect on Net Operating Income (5,744) (1,281) (Line 8 + Line 11) x -1 (1) Includes Short and Long-Term Interest