EXHIBIT 12
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
MICHIGAN CONSOLIDATED GAS COMPANY AND SUBSIDIARIES
(Thousands of Dollars)
Six Months | ||||||||||||||||||||||||
Ended June 30 | Twelve Months Ended December 31 | |||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||
Pre-tax income (loss) | $ | 33,504 | $ | 44,808 | $ | 32,449 | $ | (65,867 | ) | $ | 163,915 | $ | 162,389 | |||||||||||
Fixed charges | 28,918 | 58,175 | 61,651 | 60,933 | 61,884 | 59,340 | ||||||||||||||||||
Earnings | $ | 62,422 | $ | 102,983 | $ | 94,100 | $ | (4,934 | ) | $ | 225,799 | $ | 221,729 | |||||||||||
FIXED CHARGES | ||||||||||||||||||||||||
Interest expense | $ | 26,708 | $ | 54,948 | $ | 57,128 | $ | 55,305 | $ | 58,700 | $ | 55,891 | ||||||||||||
Interest capitalized | 730 | 1,089 | 936 | 565 | 811 | 1,190 | ||||||||||||||||||
Amortization of debt discounts, premium and expense | 1,109 | 1,954 | 1,844 | 1,588 | 1,121 | 1,144 | ||||||||||||||||||
Interest factor of rents | 371 | 514 | 525 | 1,095 | 1,252 | 1,115 | ||||||||||||||||||
SFAS 133 Swap marked-to-market | — | (330 | ) | 1,218 | 2,380 | — | — | |||||||||||||||||
Fixed charges | $ | 28,918 | $ | 58,175 | $ | 61,651 | $ | 60,933 | $ | 61,884 | $ | 59,340 | ||||||||||||
Ratio of Earnings to Fixed Charges | 2.16 | 1.77 | 1.53 | 3.65 | 3.74 | |||||||||||||||||||
Coverage Deficiency (1) | $ | (66,432 | ) | |||||||||||||||||||||
(1) The earnings for the twelve-month period ended December 31, 2001 were not adequate to cover fixed charges. The amount of the deficiency was $66,432,000. The Ratio of Earnings to Fixed Charges excluding unusual charges would have been 1.62.