(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) (m) Source Deprec Regula- Property State Federal Loss/ Exhibit Fuel & and tory & Other Income Income Gain AFUDC & Adjusted No. Description A-3 Revenues Purch Pwr O&M Amort Assets Taxes Taxes Taxes on Sale Other NOI Historical Year 1 2009 Historical year (Per page 114 of P-521) (includes Steam) 4,452,675 1,423,314 1,323,455 554,522 121,026 205,429 55,595 163,173 (65) 12,164 618,390 2 3 4 Rate Case Adjustments to Net Operating Income 5 Interest and Dividend Income 1,557 1,557 6 Income Tax Effect of Interest C5 952 6,161 (7,113) 7 Allowable Charitable Contributions C6-8 Disallowed Corporate Memberships C7 (1,894) 112 624 1,158 9 Disallowed Advertising Expenses C8 (362) 21 119 221 10 Interest Synchronization C10 (126) (817) 943 11 MERC Operating Income C11 49,090 44,435 2,056 959 (720) (295) 2,655 12 Amortization of the Loss on Reacquired Debt C12 (3,168) (3,168) 13 Eliminate Regulatory Asset Operating Income C14 (52,662) (51,699) (57) (317) (589) 14 Eliminate Securitization Tax Revenue and Expense C15 (82,003) (69,327) (12,676) - 15 Income Tax Adjustment C16 685 (240) (445) 16 Eliminate Energy Optimization and Renewable Energy Plan C17 (15,781) (14,766) (655) (22) (118) (220) 17 Customer Interest and Debt Fee Adjustment C18 (300) (1,666) (5,059) (3,093) 18 Eliminate Executive Incentive Plan Compensation C19 (13,623) 808 4,485 8,329 19 Subtotal Rate Case Adjustments to NOI (101,356) - 13,790 1,401 (121,026) 959 (11,322) 7,936 - (6,670) 235 20 21 Historical Year - Rate Case Adjusted 4,351,319 1,423,314 1,337,246 555,923-206,388 44,273 171,109 (65) 5,494 618,625 22 23 Normalization Adjustments 24 Weather Normalization Adjustment C13 83,059 22,993-3,564 19,776 36,726 25 Property and Other taxes C16 30,380 (1,803) (10,002) (18,575) 26 Income Tax Adjustment C16 (1,752) 3,005 (1,253) 27 Employee Incentive Plan Adjustment C20 (7,420) 440 2,443 4,537 28 Vacation Accrual Adjustment C21 17,200 (1,021) (5,663) (10,517) 29 U-15244 Rate Case Full Year Normalization Adjustment C22 2,978 177 980 1,821 30 - - - - 31 Subtotal Normalization Adjustments 86,037 22,993 9,780 - - 30,380 (394) 10,539 - - 12,739 32 33 Adj. / Normalized Total Electric Net Operating Income 12 ME 12/31/2009 4,437,356 1,446,307 1,347,026 555,923-236,768 43,879 181,649 (65) 5,494 631,364 34 35 36 Jurisdictional Electric Net Operating Income 2 ME 12/31/2009 4,314,170 1,369,454 1,310,777 544,557-231,010 42,740 185,541 (65) 4,980 635,135 Exhibit A-5, E-1, page 1, col (b) ln 2 lns 4+5 ln 6 ln 7 lns 8+9 ln 11 ln 12 ln 10 ln 16 ln 18 Workpaper A5E1 Support Sched 6, page 37 of 138, col (b) -ln 4 - ln 10 -ln 5-ln 11 Workpaper A5E1 Support Sched 6, page 19 of 138, col (b) ln 2 -ln2

Gross Revenue Conversion Factor Schedule: C2 For The Period Ending December 31, 2009 Witness: P. G. Horgan Page: 1 of 1 (a) (b) (c) No. Description Calculations December 31, 2009 1 Income Before Income Taxes 100.0000 2 3 Michigan Business Tax: Income Tax Rate 4.9500% 4 Michigan Business Tax: Gross Receipts Tax Rate 0.8000% 5 Composite Municipal Excise Tax Rate (1) 0.1833% 6 Total State and Local Tax Rates (L3+L4+L5) 5.9333% 7 8 Federal Income Tax Base (L1 - (L6*100)) 94.0667 9 10 Times: Federal Income Tax Rate 35.0000% 11 12 Federal Income Tax (L8 * L10) 32.9233 13 14 Income after Federal Michigan and Muni Taxes (L8 - L12) 61.1434 15 16 Gross Revenue Conversion Factor (L1 / L14) 1.6355 (1) See A-3WPC2

Revenues Detail Schedule: C3 For The Period Ending December 31, 2009 Witness: T.M.Uzenski (a) (b) (c) No. Description Source Total Electric 1 Sales Revenue P-521 Pg 300, 10 4,114,806 2 3 Sales for Resale P-521 Pg 300, 11 310,177 4 5 Less: Provision for Rate Refunds P-521 Pg 300, 13 (104,608) 6 7 Miscellaneous Revenues P-521 Pg 300, 26 132,300 8 9 Total Electric Operating Revenues 4,452,675

Fuel and Purchased Power Schedule: C4 Historical Year 2009 Witness: T. M. Uzenski (a) (b) (c) FERC/ MPSC Historical No. Description Account Test Period 1 Power Supply Related Expenses 2 Fuel - Steam 501 786,438 3 Allowances 509 38,338 4 Fuel - Nuclear 518 37,541 5 Fuel - Other 547 9,061 6 Purchased Power 555 262,722 7 Load Dispatching 561 9,919 8 Transmission of Electricity by Others 565 267,056 9 Regional Market Expenses 575 12,238 10 11 Total Power Supply Related Expenses 1,423,314

Income Tax Effect of Interest Schedule: C5 For The Period Ending December 31, 2009 Witness: P. G. Horgan (a) (b) (c) No. Description Source Total Electric 1 2 Electric Rate Base Exh. A-2, Sch B1 9,302,537 3 4 Weighted Cost of Debt (1) Exh. A-4, Sch D1 2.5971% 5 6 Interest Allowed in Ratemaking Formula 2 x 4 241,596 7 8 Interest Deduction Included in 9 Recorded Income Tax Accruals A-3WPC4 260,151 10 11 Interest Deduction Change 6-9 (18,555) 12 13 Composite State and Muni Income Tax Rate Exh. A-3, Sch. C2 5.133% 14 15 Effect on Muni & State Income Tax Expense 11 x 13*(-1) 952 16 17 Effect on Federal Taxable Income ( 11-15)*(-1) 17,602 18 19 Federal Income Tax Rate Exh. A-3, Sch. C2 35.0% 20 21 Effect on Federal Income Expense 17 x 19 6,161 22 23 Total Tax Effect on Net Operating Income ( 15 + 21)*(-1) (7,113) (1) Includes Short and Long-Term interest plus interest on Regulatory Liability

Michigan Public Service Commission Case: U-16472 Allowable Charitable Contributions Schedule: C6 The Company made no contributions to the Urban Coalition during the year ending December 31, 2009

Michigan Public Service Commission Case No: U-16472 Disallowed Corporate Memberships Schedule: C7 (a) No. Description Amount 1 Corporate Memberships Charged to Miscellaneous 2 General Expenses 3 4 Electric Power Research Institute / Inst. Of Nuclear 5 Power / North American Electric Reliability Corp 5,279 6 Other 1,894 7 Total Corporate Memberships 7,173 8 9 Less: Allowable Corporate Memberships 5,279 10 11 Gross Disallowed Expense 1,894 12 13 Less: Municipal Excise Tax 3 14 Single Business Tax 109 15 1,782 16 Less: Federal Income Tax of 35% 624 17 18 Net Disallowed Expense 1,158 (b)

Michigan Public Service Commission Case No: U-16472 Disallowed Advertising Expenses Schedule: C8 (a) No. Description Amount 1 Related to Public Health and Safety 1,639 2 3 Related to Explanation of Billing Practices, Rates 4 and Using Energy Wisely 0 5 6 Other Advertising Programs 362 7 8 Total Advertising Programs 2,001 9 10 Less: Allowable Items (s 1 through 6) 1,639 11 12 Gross Disallowed Expense 362 13 14 Less: Municipal Excise Tax 1 15 Single Business Tax 21 16 340 17 Less: Federal Income Tax of 35% 119 18 19 Net Disallowed Expense 221 (b) Source: Company Books and Records

Synchronization Adjustment Schedule: C10 For The Period Ending December 31, 2009 Witness: P. G. Horgan (a) (b) (c) No. Description Source Total Electric 1 2 Total Electric Rate Base Exh. A-2, Sch B1 9,302,537 3 4 Weight of JDITC Reserve Exh. A-4, Sch D1 0.86% 5 6 Cost of Long-Term Debt Exh. A-4, Sch D1 5.89% 7 8 Imputed Weight of Debt Exh. A-4, Sch D1 52.01% 9 10 Imputed Interest L2 x L4 x L6 x L8 2,459 11 12 Composite Municipal & State Income Tax Rate Exh. A-3, Sch. C2 5.13% 13 14 Effect on Municipal & State Taxes Expense 10 x 12*(-1) (126) 15 16 Imputed Interest Effect on Federal Taxable Income 10-14*(-1) (2,333) 17 18 Federal Income Tax Rate Exh. A-3, Sch. C2 35% 19 20 Imputed Effect on Federal Income Taxes 16 x 18 (817) 21 22 Synchronization Tax Adjustment to Net Operating Income 14 + 20 943

MERC Operating Income Schedule: C11 For The Period Ending December 31, 2009 Witness: M. Hoffman (a) (b) (c) (d) Consolidation No. Description Amount Adjustment Total 1 REVENUES 2 Transshipment Services 3 Detroit Edison (26,634) 26,634 0 4 Third Party Dock Services 33,011 33,011 5 6,377 26,634 33,011 6 7 Net Coal & Transportation Sales 16,079 16,079 8 9 TOTAL REVENUE 22,456 26,634 49,090 10 11 EXPENSES 12 Net Site Operating Expenses 14,385 (14,385) 0 13 Administrative 3,416 3,416 14 Depreciation 2,056 2,056 15 Property Taxes 959 959 16 State Taxes (720) (720) 17 Federal Income Taxes 18 Current 66 66 19 Deferred (361) (361) 20 21 Fuel Handling Expense 0 41,019 41,019 22 23 TOTAL EXPENSES 19,801 26,634 46,435 24 25 Net Operating Income Adjustment 2,655 0 2,655 26 27 Third Party Revenues: 28 Third Party Dock Services 33,011 29 Net Coal & Transportation Sales 16,079 30 Total Third Party Revenues 49,090 31 32 Other Revenue 33 Equity Earnings of Venture Fuels 2,168 34 Other Revenue (29) 35 Total Other Revenue 2,139 36 37 Net Site Operating Expenses 38 Site Operating Expenses 16,524 39 Less Total Other Revenue (2,139) 40 Net Site Operating Expenses 14,385 41 42 Net Other Expenses 43 Total MERC Expenses 19,801 44 Interest Charges 2,655 45 Less Net Site Operating Expenses (14,385) 46 Total Net Other Expenses 8,071 Detroit Edison Revenue is calculated to set MERC Net Income to zero (0). Fuel Clause = Net Site Operating Expenses ($14385) less Third Party Revenues Fuel Handling = Total MERC Expenses ($19801) plus Interest Charges ($2655) less Remove Intercompany Transaction = Third Party Revenues ($49090) less Fuel Net Site Operating Expenses = Site Operating Expense ($16553) less Equity

Amortization of the Loss on Reacquired Debt Schedule: C12 (a) No. Description Amount 1 Amortization of Loss on Reacquired Debt 3,168 (b) 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.

Weather Normalization Adjustment Schedule: C13 (a) (b) (c) (d) (e) (f) (g) (h) PSCR GWH Base PSCR Under / Total PSCR No. Sales Revenue Revenue (Recovery) Revenue Cost Margin 1 Residential (593) (66,584) 3,037 (651) (64,198) (16,680) (47,518) 2 Commercial Secondary (120) (12,159) 631 (134) (11,662) (3,350) (8,312) 3 Commercial Primary (61) (4,378) (99) 68 (4,409) (1,654) (2,755) 4 Industrial (43) (3,299) 614 (105) (2,790) (1,309) (1,481) 5 Total (817) (86,420) 4,183 (822) (83,059) (22,993) (60,066) 6 7 8 Less: Municipal Excise Tax (110) 9 Michigan Business Tax (3,454) 10 (56,502) 11 Less: Federal Income Tax of 35% (19,776) 12 Net change in Net Operating Income (36,726) Source: Company Books and Records

Eliminate Regulatory Asset Operating Income Schedule: C14 (a) No. Description Amount 1 Recorded as Net Operating Income 2 Revenue 52,662 3 Less: RAAP / GAAP Adjustment 0 4 Less: Amortization of deferred cost 51,699 5 6 Pre-tax 963 7 8 Less: Municipal Excise Tax 2 9 Michigan Business Tax 55 10 906 11 Less: Federal Income Tax of 35% 317 12 13 Net Operating Income Adjustment 589 (b)

Eliminate Securitization Tax Revenue and Expense Schedule: C15 No. (a) Description (b) Amount 1 Revenue 82,003 2 3 Less: Amort Expense 69,327 4 5 Pre-tax 12,676 6 7 Less: Municipal Excise Tax 23 8 Michigan Business Tax 12,653 9 0 10 Less: Federal Income Tax of 35% 0 11 12 Net Operating Income Adjustment 0 Source: Company Books and Records

Tax Normalization Adjustments to the Historic Period Schedule: C16 ($000) Witness: M. Lewis Page: 1 of 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) Property and Other Taxes State Inome Tax FIT Total No. Acct Descr Reverse SBT Adjustment Reverse Property Tax Settlement Impact of SBT and Property Tax Adjustments Adjustment for Apportionment and Gross Receipts Tax Reverse Return to Accrual Adjustment Federal Impact of State Adjustments Reverse Return to Accrual Adjustment Net Operating Income Adjustment 1 2 Rate Case Adjustment 3 4 Apportionment and gross receipts tax - 5 Inc tax operat inc Federal (409.1 ) - Federal (240) 240 6 Inc tax operat inc Federal (409.1 ) - State 685 (685) 7 Total - - - 685 - (240) - (445) 8 9 10 Normalization Adjustments 11 12 Property and Other Tax 13 Noninc taxes op inc 434 29,946 (30,380) 14 Inc tax operat inc Federal (409.1 ) - Federal (10,002) 10,002 15 Inc tax operat inc Federal (409.1 ) - State (1,803) 1,803 16 Total 434 29,946 (1,803) - - (10,002) - (18,575) 17 18 Income Tax Adjustments 19 Inc tax operat inc Federal (409.1 ) - Federal 613 12,287 (12,900) 20 Inc tax operat inc Federal (409.1 ) - State (1,752) 1,752 21 Prov for DFIT op inc (108,400) 108,400 22 Prov for DFIT Cr OID 98,505 (98,505) 23 Total - - - - (1,752) 613 2,392 (1,253)

Eliminate Renewable Energy Program and Energy Optimization Schedule: C17 (a) (b) (c) (d) No. Description Optimizatio n Renewable Energy Program Amount 1 Revenues 13,656 2,125 15,781 2 Operations and Maintenance 12,991 1,775 14,766 3 DD&A 655 655 4 Short Term Interest - - 5 Long Term Interest - 6 10 350 360 7 Less: Composite Municipal and State Income Tax 1 22 22 8 9 329 338 9 Current FIT 3 115 118 10 Def Tax - 11 12 Net Income 6 214 220

Adjustment of Customer Deposit Interest and Commitment Fees Schedule: C18 No. (a) Description (b) Amount 1 External Debt - Fees and s of credit Fees 3,361 2 3 Interest Expense Other - Customer Deposits 1,698 4 5 Subtotal Pre-Tax 5,059 6 Less: Composite Municipal and State Income Tax 300 7 4,759 8 Less: Federal Tax 35% 1,666 9 10 Total 3,093 Source: page 340a, Other Interest, P-521 filing for 12/31/2009

Executive Incentive Compensation Elimination Schedule: C19 (a) (b) (c) No. Description Amount Reference 1 Executives' Incentive Compensation 13,623 1/, 2/ 2 3 Less: Composite Municipal and State Income Tax 808 1 * 5.93% 4 5 12,815 1 less 3 6 7 Less: Federal Tax 35% 4,485 5 * 35% 8 9 Net Operating Income Adjustment 8,330 5 less 7 1/ Per Company Book and Records 2/ Sponsored by Witness Brudzynski

Employee Incentive Plan Normalization Adjustment Schedule: C20 (a) (b) (c) No. Description Amount Reference 1 2009 Employee Incentive Plan Expense 56,120 1/, 2/ 2 3 Incentive Plan Accrual at 100% Expense 48,700 1/, 2/ 4 5 Accrual over 100% Expense 7,420 1 less 3 6 7 Less: Composite Municipal and State Income Tax 440 5 * 5.93% 8 9 6,980 5 less 7 10 11 Less: Federal Tax 35% 2,443 9 * 35% 12 13 Net Operating Income Adjustment 4,537 9 less 11 1/ Per Company Book and Records 2/ Sponsored by Witness Brudzynski

Non Represented Vacation Normalization Schedule: C21 No. (a) Description (b) Amount 1 Annual Vacation accrual (month Adjustment 17,200 2 3 Less: Composite Municipal and State Income Tax 1,021 4 16,179 5 6 Less: Federal Income Tax @ 35 % 5,663 7 8 Net Operating Income Adjustment 10,517 Source: Company Books and Records

Rate Case Implementaion Normalization Schedule: C22 No. (a) Description (b) Amount 1 Annual Rate impact of Order U-15244 1/ 83,600 2 3 Effective date of U-15244 1/ 1/14/2009 4 Days of rate relief missing in 2009 13 5 Rate relief normalization (13 days / 365 * annual Impact) 2,978 6 Less: Composite Municipal and State Income Tax 177 7 2,801 8 9 Less: Federal Income Tax @ 35 % 980 10 11 Net Operating Income Adjustment 1,821 1/ Source: U-15244