EXHIBIT (12) Exhibit (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges (Millions of Dollars) Three Months Ended Years Ended December 31 March 31, 1996 1995 1994 1993 1992 1991 (b) (c)(d) Earnings as defined (a) Net income $ 88 $ 204 $ 179 $ 155 $(297) $(262) Income taxes 54 118 92 75 (146) (94) Exclude equity basis subsidiaries (17) (57) (18) (6) 10 10 Fixed charges as defined, adjusted to exclude capitalized interest of $2, $8, $6, $5, $3, and $5 million for the three months ended March 31, 1996 and for the years ended December 31, 1995, 1994, 1993, 1992 and 1991, respectively 73 280 237 245 228 364 ------ ------ ------ ------ ------ ------ Earnings as defined $ 198 $ 545 $ 490 $ 469 $(205) $ 18 ====== ====== ====== ====== ====== ====== Fixed charges as defined (a) Interest on long-term debt $ 57 $ 224 $ 193 $ 204 $ 169 $ 274 Estimated interest portion of lease rental 2 9 9 11 16 17 Other interest charges 7 27 18 24 35 68 Preferred securities dividends and distributions 13 42 36 17 16 15 ------ ------ ------ ------ ------ ------ Fixed charges as defined $ 79 $ 302 $ 256 $ 256 $ 236 $ 374 ====== ====== ====== ====== ====== ====== Ratio of earnings to fixed charges 2.51 1.81 1.91 1.83 - - ====== ====== ====== ====== ====== ====== 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 pretax 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 pretax 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.