Exhibit (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars) Nine Months Ended Years Ended December 31 September 30, 1997 1996 1995 1994 1993 1992 (b) Earnings as defined (a) Consolidated net income (loss) $ 204 $ 240 $ 204 $ 179 $ 155 $(297) Income taxes 107 139 118 92 75 (146) Exclude equity basis subsidiaries (61) (85) (57) (18) (6) 10 Fixed charges as defined, adjusted to exclude capitalized interest of $11, $8, $8, $6, $5, and $3 million for the nine months ended September 30, 1997 and for the years ended December 31, 1996, 1995, 1994, 1993 and 1992, respectively 258 310 295 249 253 236 ----- ----- ----- ----- ----- ----- Earnings as defined $ 508 $ 604 $ 560 $ 502 $ 477 $(197) ===== ===== ===== ===== ===== ===== Fixed charges as defined (a) Interest on long-term debt $ 198 $ 230 $ 224 $ 193 $ 204 $ 169 Estimated interest portion of lease rental 6 10 9 9 11 16 Other interest charges 34 43 42 30 32 43 Preferred securities dividends and distributions 47 54 42 36 17 16 ----- ----- ----- ----- ----- ----- Fixed charges as defined $ 285 $ 337 $ 317 $ 268 $ 264 $ 244 ===== ===== ===== ===== ===== ===== Ratio of earnings to fixed charges and preferred securities dividends and distributions 1.78 1.79 1.77 1.87 1.81 - ===== ===== ===== ===== ===== ===== 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 and preferred securities dividends and distributions would have been 1.29 excluding these amounts.