Historical Year Historical Year (page 114 of P-521) 5,211,499 1,524,457 1,455, , ,812 43,194 85, ,521 - (1) 859,550

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1 Adjusted Net Operating Income Schedule: C1 For the 12 Months Ended December 31, 2016 Witness: T. M. Uzenski (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Deprec State & Local Federal Source Fuel & and Property Other Income Income Other Adjusted No. Description Exhibit Revenues Purch Pwr O&M Amort Taxes Taxes Taxes Taxes AFUDC Inc./(Ded.) NOI Historical Year Historical Year (page 114 of P-521) 5,211,499 1,524,457 1,455, , ,812 43,194 85, ,521 - (1) 859,550 2 Rate Case Adjustments to Net Operating Income 3 Reclass Fuel Handling Expense (34,332) 34,332-4 AFUDC Debt and Equity 26,156 26,156 5 Interest and Dividend Income Inc Tax Effect of Interest excluded from ratemaking formula A-3 C5 1,315 7,026 (8,341) 7 Interest Synchronization A-3 C6 (20) (107) Disallowed Corporate Memberships A-3 C7 (682) Disallowed Advertising Expenses A-3 C8 (2,791) , Allowable Charitable Contributions A-3 C9-11 MGM Rent A-3 C10 (916) MERC NOI Adjustment A-3 C (6,165) 2,134 1, , Amortization of Loss on Reacquired Debt A-3 C12 (2,870) (2,870) 14 Customer Deposit Interest A-3 C13 (93) (498) (1,517) (926) 15 Power Supply Cost Recovery (PSCR) Offsets A-3 C14 (7,046) (7,046) - 16 Eliminate Securitization Tax Revenue and Expense A-3 C15 (2,061) (2,061) Eliminate Energy Optimization Program A-3 C16 (104,043) (77,317) (11,412) (236) (927) (4,953) (9,198) 18 Eliminate Renewable Energy Program A-3 C17 (141,960) (16,756) (24,793) (40,028) (8,983) (251) (3,146) 13,573 (61,576) 19 Eliminate Low Income Energy Assistance Fund (LIEAF) A-3 C18 (25,436) (25,436) Eliminate Nuclear Surcharge Program A-3 C19 (33,414) (27,227) (7,125) Eliminate Transitional Reconciliation Mechanism (TRM) A-3 C20 (59,588) (13,129) (30,966) (12,537) (493) (13) (173) (925) (367) (1,718) 22 Eliminate Executive Incentive Plan Compensation A-3 C21 - (9,956) , , Subtotal Rate Case Adjustments to NOI (373,548) (71,263) (171,917) (71,029) (8,342) (284) (2,104) 19,148 25,789 (4,158) (46,125) 24 Historical Year - Rate Case Adjusted 4,837,951 1,453,194 1,283, , ,470 42,910 83, ,669 25,789 (4,159) 813, Normalization Adjustments 26 Employee Incentive Plan Normalization Adjustment A-3 C22 (11,026) 678 3,622 6, Weather Normalization Adjustment A-3 C23 (132,447) (33,559) (6,082) (32,482) (60,324) 28 Steam Normalization Adj. A-10 C5.1 (25,925) 1,594 8,516 15, Nuclear PERC Projects A-10 C5.3 (32,982) 2,028 10,834 20, Nuclear Normalization Adj. A-10 C5.3 (4,308) 265 1,415 2, Distribution Normalization Adj. A-10 C5.6 24,739 (1,521) (8,126) (15,092) 32 Uncollectibles - 3 year average A-10 C5.7 2,491 (153) (818) (1,520) 33 Injuries & Damages - 5 year average A-10 C5.8 3,271 (201) (1,075) (1,996) 34 Vacation Accrual Normalization A-10 C5.9 p2 1,689 (104) (555) (1,030) 35 Tax Normalization Witness Wisniewski 1,266 (78) (416) (772) 36 Subtotal Normalization Adjustments (132,447) (33,559) (42,049) - - 1,266 (3,574) (19,085) - - (35,445) 37 Adjusted Total Electric Net Oper. Income 12 ME 12/31/16 4,705,504 1,419,635 1,241, , ,470 44,176 79, ,583 25,789 (4,159) 777,980

2 Revenue Conversion Factor Schedule: C2 For the Period Ending December 31, 2016 Witness: K. L. Slater Page: 1 of 1 Revenue Conversion Factor No. Description Calculations 12/31/ Income Before Income Taxes Michigan Income Tax Rate (1) 5.82% 3 Composite Municipal Income 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 (1) 6% Statutory rate at 97.85% apportionment as supported by Witness Wisniewski

3 Historical Sales Revenue Schedule: C3 No. Description Source Total Electric 1 Sales Revenue P-521 Pg 300, 10 4,940,615 2 Sales for Resale P-521 Pg 300, 11 49,555 3 Less: Provision for Rate Refunds P-521 Pg 300, 13 61,811 4 Miscellaneous Revenues P-521 Pg 300, ,518 5 Total Electric Operating Revenues 5,211,499

4 Historical Fuel and Purchased Power Schedule: C4 FERC/ MPSC Historical No. Description Account Test Period 1 Power Supply Related Expenses 2 Fuel - Steam ,384 3 Allowances ,543 4 Fuel - Nuclear ,928 5 Fuel - Other ,983 6 Purchased Power ,407 7 Other Power Supply 557 (88,927) 8 Load Dispatching ,485 9 Transmission of Electricity by Others , Regional Market Expenses 575 7, Total Power Supply Related Expenses 1,524,457

5 Income Tax Effect of Interest Schedule: C5 For the Period Ending December 31, 2016 Witness: K. L. Slater ($000's) Page: 1 of 1 No. Description Source Total Electric 1 Electric Rate Base Exh. A-2, Sch B1 14,415,389 2 Weighted Cost of Debt (1) Exh. A-4, Sch D1 1.71% 3 Interest Allowed in Ratemaking Formula L1 x L2 245,883 4 Interest Deduction Included in 5 Recorded Income Tax Accruals WP-KLS-1 267,273 6 Interest Deduction Change L3 - L5 (21,389) 7 Composite State and Municipal Income Tax Rate Exh. A-3, Sch. C2 6.15% 8 Effect on State and Municipal Income Tax Expense L6 x L7 (x -1) 1,315 9 Effect on Federal Taxable Income L6 + L8 (x -1) 20, Federal Income Tax Rate Exh. A-3, Sch. C % 11 Effect on Federal Income Expense L9 x L10 7, Total Tax Effect on Net Operating Income L8 + L11 (x -1) (8,341) (1) Includes Short and Long-Term Interest rates

6 Synchronization Adjustment Schedule: C6 For the Period Ending December 31, 2016 Witness: K. L. Slater ($000's) Page: 1 of 1 No. Description Source Total Electric 1 Total Electric Rate Base Exh. A-2, Sch B1 14,415,389 2 Weight of JDITC Reserve Exh. A-4, Sch D1 0.10% 3 Cost of Long-Term Debt Exh. A-4, Sch D1 4.48% 4 Imputed Weight of Debt Exh. A-4, Sch D % 5 Imputed Interest L1 x L2 x L3 x L Composite State and Municipal Income Tax Rate Exh. A-3, Sch. C2 6.15% 7 Effect on State and Municipal Income Tax Expense 5 x 6(x -1) (20) 8 Imputed Interest Effect on Federal Taxable Income Federal Income Tax Rate Exh. A-3, Sch. C % 10 Imputed Effect on Federal Income Taxes 8 x 9(x-1) (107) 11 Synchronization Tax Adjustment to Net Operating Income

7 Michigan Public Service Commission Case No: U Corporate Memberships Schedule: C7 (a) No. Description Amount 1 Corporate Memberships Charged to Operating Expense 2 Conference Board Inc 95 3 Electric Power Research Institute (EPRI) 4,903 4 Edison Electric Institute Gartner Group Institute of Nuclear Power 1,353 7 The Corporate Executive Board National Safety Council 74 9 North American Electric Reliability Other Allowable Memberships Other Corporate Memberships Total Corporate Memberships 8, Less: Allowable Corporate Memberships 7, Gross Disallowed Expense Less: Composite Municipal and State Income 6.15% Less: Federal Income 35.00% Net Disallowed Expense 416 (b) Source: Company Books and Records

8 Advertising Classification Schedule: C8 (a) (b) No. Description Amount (1) 1 Related to Public Health and Safety 1,246 2 Related to Conservation of Energy Related to Billing Practices, Rates and Other Communications Beneficial to Customers Other Advertising Programs 2,791 5 Total Advertising Programs 5,442 6 Less: Allowable Items (s 1 through 3) 2,651 7 Gross Disallowed Expense 2,791 8 Less: Composite Municipal and State Income 6.15% , Less: Federal Income 35.00% Net Disallowed Expense 1,702 Source: Company Books and Records (1) Excludes advertising related to the Energy Optimization program which is eliminated separately

9 Allowable Charitable Contributions Schedule: C9 The Company made no contributions to the Urban Coalition during the year ending December 31, 2016

10 MGM Rent Expense Schedule: C10 (a) No. Description Amount 1 MGM Rent Expense Less: Composite Municipal and State Income 6.15% Less: Federal Income 35.00% Net Expense 559 (b) Source: Company Books and Records

11 MERC Net Operating Income Schedule: C11 ($000) Page: 1 of 2 (d) Credit to Fuel Handling MERC PSCR Charge to No. Description Contribution Fuel Clause (1) Base Rates (2) 1 REVENUES 2 Third Party Dock Services 11,141 (1) 11,141-3 Net Coal & Transportation Sales 878 (1) TOTAL OPERATING REVENUE 12,019 12,019-5 Equity Earnings of Venture Fuels 2,386 (1) 2,386-6 TOTAL REVENUE 14,405 14,405-7 EXPENSES 8 Site Operating Expenses 14,281 (1) 14,281-9 Non-Site Operating Expenses: 10 O&M 3,926 (2) 3, Depreciation 2,134 (2) 2, Property Taxes 1,134 (2) 1, Payroll Taxes 216 (2) Income Taxes, State - (2) - 15 Income Taxes. Federal 12 (2) TOTAL EXPENSES 21,703 14,281 7, Net Operating Income/(Expense) (7,298) 124 (7,422) 18 INTEREST CHARGES 19 Interest on Long Term Debt 2,594 (2) - 2, Amortization of Debt Discount & Expense 35 (2) Amortization of Loss on Reaquired Debt 25 (2) Other Interest 15 (2) Total Interest Charges 2,669-2, NET CONTRIBUTION (9,967) 124 (10,091) MERC Contribution from col. (b) = (c) + (d) Notes: MERC contribution per col. (b) flows through to customers through PSCR col. (c) or Base Rates col. (d) (1) PSCR credit equals the net benefit of Third Party Dock Services, Net Coal & Transportation Sales, Equity Earnings of Venture Fuels less Site Operating Expenses (2) Fuel Handling expense in base rates equals all Non-Site Operating Expenses (Administrative, Depreciation, Property Taxes, Income Taxes & Interest Charges).

12 MERC Net Operating Income Adjustment Schedule: C11 ($000) Page: 2 of 2 (d) (e) (f) Reclassification of Fuel Handling DTE Electric MERC Fuel MERC Fuel Subtotal Total DTE Electric MPSC P-521 Handling Handling Item MERC NOI with MERC No. Description Format (1) in P-521 (2) Reclassification (3) Adjustment (4) NOI Adjustment (c) + (d) (b) + (e) Income Statement 1 Revenue 5,211, ,211,499 2 Fuel & Purchased Power 1,490, ,490,125 3 Operation and Maintenance 1,489,514 (10,091) 3,926 (6,165) 1,483,349 4 Deprec. & Amort. 737,469-2,134 2, ,603 5 Property Tax 238,812-1,134 1, ,946 6 Other Tax 43, ,410 7 State & Local Income Tax 85, ,313 8 Federal Income Tax 267, ,533 9 Other Total Utility Operating Expenses 4,351,949 (10,091) 7,422 (2,669) 4,349, Net Operating Income/(Expense) 859,550 10,091 (7,422) 2, , Other (Income)/Deductions (24,696) (24,696) 13 Net Interest Charges 261,038-2,669 2, , Net Income 623,208 10,091 (10,091) - 623,208 (1) (2) (3) Carried from Exhibit A-3 C1, line 1 (per P-521) + line 3 (reclass Fuel Handling to O&M) The fuel handling charge from MERC is included in account 501 in DTEE's P-521. MERC fuel handling is reallocated to the proper line item classification for ratemaking purposes (amounts are carried from page 1, column (d) of this exhibit). (4) MERC NOI adjustment carried to Exhibit A-3, C1 reflects an increase in Net Operating Income equal to MERC's interest but has zero net income impact.

13 Amortization of the Loss on Reacquired Debt Schedule: C12 No. Description Amount Source 1 Amortization of Loss on Reacquired Debt, DTE Electric 2,845 Account (page 117 P-521) 2 Amortization of Loss on Reacquired Debt, MERC 25 Exh. A-3, Sch. C11 page 1, line 21 3 Amortization of Loss on Reacquired Debt 2,870 Note: This item is displayed gross of tax since the tax deduction is included in the calculation of tax expense which is part of operating income.

14 Adjustment of Customer Deposit Interest Schedule: C13 (a) (b) No. Description Amount 1 Interest Expense Other - Customer Deposits 1,517 2 Less: Composite Municipal and State Income 6.15% ,424 4 Less: Federal Income 35.00% Total 926 Source: Other Interest Expense Account 431 (page 340a P-521)

15 Power Supply Cost Recovery Items Schedule: C14 (d) No. Description Account No. Amount Reference 1 REVENUES 2 PSCR Factor Revenue (6,503) 3 PSCR Over/(Under) Recovery ,184 4 Renewable Transfer Revenue (88,927) 5 PSCR Factor Revenue Elimination (60,246) 6 Interconnection Revenues ,555 7 Ancillary Transmission Revenue ,518 8 Reclassify Revenues netted in PSCR Cost 66,073 9 Eliminate Cost of Steam (1) 456 1, Total Revenue Adjustment 7,046 Sum s 5,8,9 11 FUEL & PURCHASED POWER 12 Eliminate PSCR Factor Revenue (60,246) 5 13 Reclassify Revenues (netted in PSCR Cost) 66, Eliminate Cost of Steam (1) 1, Total Fuel & Purchased Power Adjustment 7, Net Operating Income Impact Source: Company Books and Records (1) Steam expense, net of steam revenue, is excluded from base rates and PSCR

16 Eliminate Securitization Tax Revenue and Expense Schedule: C15 For the Period Ended December 31, 2016 Page: 1 of 1 ($000) Witness: T. M. Uzenski (a) No. Description Amount (b) 1 Revenue 2,061 2 Less: Amort Expense 2,061 3 Securitization Tax Revenue and Expense, Pre-tax - 4 Less: Michigan Business Tax - 5 Subtotal - 6 Less: Federal Income Tax - 7 Net Operating Income Adjustment - Source: Company Books and Records

17 Eliminate Energy Optimization Program Schedule: C16 No. Description Account Amount 1 Revenue 2 Surcharge Revenue 440, 442, ,427 3 Revenue (Over)/Under Revenue Total 104,043 5 Operating Expenses 6 O&M 1/ ,317 7 Payroll Tax Intangible Plant Amortization ,412 9 Operating Expense 88, Pretax Operating Income 15, State & Local Tax Federal Tax 4, Income Tax , Net Operating Income 9,198 1/ O&M Detailed by Account: Miscellaneous Customer Accounts Expenses 35, Customer Service Supervision Customer Assistance Expenses 37, Informational and Instructional Expenses 2, Employee Pensions and Benefits Total O&M Detailed by Account 77,317 Source: Company Books & Records

18 Eliminate Renewable Energy Program Schedule: C17 No. Description Account Amount 1 Revenue 2 Surcharge Revenue 440, 442, PSCR Transfer Revenue ,927 4 Revenue (Over)/Under ,033 5 Revenue Total 141,960 6 Operating Expenses 7 Fuel & Purchased Power ,756 8 O&M 1/ ,793 9 Payroll Tax Property Tax , Depreciation 403, , Operating Expense 90, Pretax Operating Income 51, State & Local Tax 3, Federal Tax 16, Tax Credits (30,374) 17 Income Taxes (10,427) 18 Net Operating Income 61,576 1/ O&M Detailed by Account: Allowances Miscellaneous Other Power Generation Expenses 3, Maintenance of Generating and Electric Plant 12, Customer Service Supervision Customer Assistance Expenses Administrative and General salaries 6, Property Insurance Employee Pensions and Benefits Total O&M Detailed by Account 24,793 Source: Company Books & Records

19 Eliminate Low Income Energy Assistance Fund (LIEAF) Schedule: C18 No. Description Account Amount 1 LIEAF Surcharge Revenue 25,436 2 Operation & Maintenance ,436 3 Pretax Operating Income - 4 Less: Composite Municipal and State Income 6.15% Less: Federal Income 35% - 7 Net Operating Income - Source: Company Books and Records

20 Eliminate Nuclear Surcharge Schedule: C19 No. Description Account Amount 1 Nuclear Surcharge 440, 442, ,414 2 Operating Expenses 3 Site Security & Radiation Protection (O&M) ,227 4 Nuclear Funding (DD&A Reg Credits) ,125 5 Operating Expense 34,352 6 Net Operating Income (938) 7 Less: Composite Municipal and State Income 6.15% (58) 8 Less: Federal Income 35% (308) 9 Subtotal Income Tax (366) 10 Net Operating Income (572) Source: Company Books & Records

21 Eliminate Transitional Reconciliation Mechanism Schedule: C20 No. Description Account Amount 1 Revenue 2 PLD Base Sales Revenue 5,470 3 PLD Base Fuel Revenue 13,129 4 Surcharge Revenue 40,989 5 Revenue Total 440, 442, ,588 6 Operating Expenses 7 Fuel & Purchased Power 13,129 8 O&M 1/ ,966 9 Payroll Tax Property Tax Depreciation AFUDC Credit 419.1, 432 (367) 13 Reg Asset Amort, Over/(Under) 407.3, , Operating Expense 56, Pretax Operating Income 2, State & Local Tax Federal Tax Income Taxes , Net Operating Income 1,718 1/ O&M Detailed by Account: Miscellaneous Transmission Expenses 26, Miscellaneous Distribution Expenses 4, Employee Pensions and Benefits Total O&M Detailed by Account 30,966 Source: Company Books & Records

22 Executive Incentive Compensation Elimination Schedule: C21 No. Description Amount Reference 1 Top Five Executives' Incentive Compensation 9,956 1/, 2/ 2 Less: Composite Municipal and State Income 6.15% ,344 4 Less: Federal Income 35% 3,270 5 Net Operating Income Adjustment 6,074 1/ Per Company Book and Records 2/ Sponsored by Witness Cooper

23 Employee Incentive Plan Normalization Adjustment Schedule: C22 No. Description Amount Reference 1 Employee Incentive Plan Expense 65,528 1/, 2/ 2 Less Top 5 Elimination (9,956) Exh. A-3 C21 3 Employee Incentive Plan Expense excl. Top 5 55,572 4 Normalized Incentive Plan Accrual 44,546 1/, 2/ 5 Normalization Adjustments 11,026 3/ 6 Less: Composite Municipal and State Income 6.15% ,348 8 Less: Federal Income 35% 3,622 9 Net Operating Income Adjustment 6,726 1/ Per Company Book and Records 2/ Sponsored by Witness Cooper 3/ Eliminates mark to market impacts of $1.5M, measures related to gas operations of $0.8M, changes in DTE stock price of $4.8M and amounts paid above 100% of target of $3.8M.

24 Weather Normalization Adjustment Schedule: C23 (d) (e) Colder/ (Warmer) Sales PSCR Sales No. Customer Class Sales (GWh) Revenue Expense Margin Impact 1 Residential ,796 23,150 80,646 2 Commercial Secondary ,724 5,062 11,662 3 Commercial Primary ,119 3,569 4,550 4 Industrial ,364 1,778 1,586 5 Other Bundled Choice Total 1, ,447 33,559 98, Less: Composite Municipal and State Income 6.15% 6, , Less: Federal Income 35% 32, Net Operating Income Adjustment 60,324 Source: Company Books and Records

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m)

Adjusted Net Operating Income - Total Electric and Jurisdictional Electric Schedule: C1 For The 12 Months Ended December 31, 2009 Witness: T. M. Uzenski (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)