Exhibit (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars) Three Months Ended Years Ended December 31 March 31, 1998 1997 1996 1995 1994 1993 (b) Earnings as defined (a) Consolidated net income $ 40 $ 268 $ 240 $ 204 $ 179 $ 155 Income taxes 15 117 139 118 92 75 Exclude equity basis subsidiaries (19) (80) (85) (57) (18) (6) Fixed charges as defined, adjusted to exclude capitalized interest of $5, $16, $8, $8, $6, and $5 million for the three months ended March 31, 1998 and for the years ended December 31, 1997, 1996, 1995, 1994 and 1993, respectively 97 357 310 295 249 253 ----- ----- ----- ----- ----- ----- Earnings as defined $ 133 $ 662 $ 604 $ 560 $ 502 $ 477 ===== ===== ===== ===== ===== ===== Fixed charges as defined (a) Interest on long-term debt $ 76 $ 273 $ 230 $ 224 $ 193 $ 204 Estimated interest portion of lease rental 2 8 10 9 9 11 Other interest charges 12 49 43 42 30 32 Preferred securities dividends and distributions 19 67 54 42 36 17 ----- ----- ----- ----- ----- ----- Fixed charges as defined $ 109 $ 397 $ 337 $ 317 $ 268 $ 264 ===== ===== ===== ===== ===== ===== Ratio of earnings to fixed charges and preferred securities dividends and distributions 1.22 1.67 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) Excludes a cumulative effect of change in accounting after-tax gain of $43 million.