EXHIBIT (12) CMS ENERGY CORPORATION EXHIBIT (12) Ratio of Earnings to Fixed Charges (Millions of Dollars) Nine Months Ended Years Ended December 31 Sept. 30, 1994 1993 1992 1991 1990 1989 -------------- ------ ------ ------ ------ ------ (b) (c)(d) (e) Earnings as defined (a) - ----------------------- Net income $ 148 $ 155 $(297) $(262) $(494) $ 312 Income taxes 88 75 (146) (94) 25 170 Exclude equity basis subsidiaries (12) (6) 10 10 13 1 Fixed charges as defined, adjusted to exclude capitalized interest of $5, $5, $3, $5, $38 and $177 million for the nine months ended September 30, 1994 and for the years ended December 31, 1993, 1992, 1991, 1990 and 1989, respectively 173 245 228 364 317 207 ------ ------ ------ ------ ------ ------ Earnings as defined $ 397 $ 469 $(205) $ 18 $(139) $ 690 ====== ====== ====== ====== ====== ====== Fixed charges as defined (a) Interest on long-term debt $ 142 $ 204 $ 169 $ 274 $ 293 $ 314 Estimated interest portion of lease rental 9 12 16 17 18 15 Other interest charges 10 23 35 68 33 33 Include equity basis subsidiaries - - - - - 3 Preferred stock dividend 26 17 16 15 17 28 ------ ------ ------ ------ ------ ------ Fixed charges as defined $ 187 $ 256 $ 236 $ 374 $ 361 $ 393 ====== ====== ====== ====== ====== ====== Ratio of earnings to fixed charges 2.12 1.83 - - - 1.76 ====== ====== ====== ====== ====== ====== <FN> NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the year ended December 31, 1992, fixed charges exceeded earnings by $441 million. Earnings as defined include a $520 million pre-tax loss on the settlement of MCV Power Purchases, $(15) million for potential customer refunds and other reserves related to 1992 but recorded in 1991, and $6 million relating to CMS Generation Company's reduction in its investment in The Oxford Energy Company. The ratio of earnings to fixed charges would have been 1.30 excluding these amounts. (c) Excludes an extraordinary after-tax loss of $14 million. (d) For the year ended December 31, 1991, fixed charges exceeded earnings by $356 million. Earnings as defined include pre-tax losses of $398 million for write-downs and reserve amounts related to the abandonment of the Midland nuclear plant, $76 million for potential customer refunds and other reserves, and $51 million relating to CMS Generation Company's reduction in its investment in The Oxford Energy Company. The ratio of earnings to fixed charges would have been 1.45 excluding these amounts. (e) For the year ended December 31, 1990, fixed charges exceeded earnings by $500 million. Earnings as defined include pre-tax losses of $847 million for write-downs and reserve amounts related to the abandonment of the Midland nuclear plant. The ratio of earnings to fixed charges would have been 1.96 excluding these amounts.