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DETROIT EDISON REFINANCES DEBT, SAVES $50 MILLION

 DETROIT, March 22 /PRNewswire/ -- Like many homeowners who take advantage of low interest rates to refinance their mortgages, Detroit Edison (NYSE: DTE) has reduced its high-cost, long-term debt through a variety of innovative financial moves.
 This strategy saved the utility about $50 million last year, during which time Detroit Edison lowered its average cost of debt to 8.6 percent from 9.1 percent in 1991.
 Also during 1992, the company used its cash flow to retire early $345 million of its outstanding long-term debt.
 Detroit Edison has employed numerous methods to reduce costs during the last few years to make the company's operations more efficient and reduce rates to customers. The utility reduced its rates 5 percent Jan. 1.
 "In 1989, we set a tough goal to reduce our average interest rate by at least 1 percent," said Leslie L. Loomans, vice president and treasurer. "We have surpassed that goal through an aggressive refunding strategy for both taxable and tax-exempt debt."
 Since 1988, the strategy has saved Detroit Edison $100 million and reduced long-term debt by about $500 million, to $4.3 billion.
 Among the strategies used by Detroit Edison in 1992 to reduce debt and lower interest costs were:
 -- Using four agents to stimulate competition, better service and lower placement fees for the company's medium-term note program.
 -- Negotiating delayed-delivery mortgage bonds, combined with short-term interim funding.
 -- Issuing low-cost pollution control bonds to refund high-interest pollution control bonds issued in the 1970s and 1980s.
 These actions also helped increase Detroit Edison's equity ratio to 42 percent from 38.4 percent, which will assist the company in achieving an increase in its bond rating, which in turn will allow the company to borrow money at lower interest rates in the future.
 -0- 3/22/93
 /CONTACT: Scott L. Simons, 313-237-8808, or Lorie N. Kessler, 313-237-8807, both of Detroit Edison/
 (DTE)


CO: The Detroit Edison Company ST: Michigan IN: UTI SU:

SB-SM -- DE016 -- 8336 03/22/93 15:37 EST
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Publication:PR Newswire
Date:Mar 22, 1993
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