On May 20, 2004, Standard&Poor's Ratings Services assigned its 'BBB-' rating to DTE Energy Trust II's $100 million trust preferred securities, which are guaranteed by DTE Energy Co. (BBB+/Negative/A-2). The outlook is negative. Proceeds from the transaction will be used for general corporate purposes. The ratings for DTE Energy and its affiliates remain pressured at the current levels pending the resolution of several regulatory issues in 2004. An interim rate order in the Detroit Edison Co. rate proceeding has provided some clarity, but uncertainty over the final level of recovery continues to be reflected in the negative outlook on the DTE Energy family of companies. In addition, DTE Energy has requested regulatory approval for an increase in distribution
