EXHIBIT 12 - ---------- SEMCO ENERGY, Inc. Ratio of Earnings to Fixed Charges (Thousands of Dollars) Years ended December 31, ------------------------ Description 2001 2000 1999 1998 1997 - --------------------------------------------------- --------- -------- -------- -------- -------- Earning as defined (a) Income (loss) before income taxes, dividends on trust preferred securities, discontinued operations and extraordinary items. $ 14,942 $33,156 $25,653 $15,015 $23,149 Fixed charges as defined. . . . . . . . . . . . . . 45,019 42,604 20,732 14,915 16,709 Less preferred securities dividend require- ments of consolidated subsidiaries . . . . . . . (13,235) (7,699) (242) (274) (274) Other items . . . . . . . . . . . . . . . . . . . . 0 0 158 178 178 --------- -------- -------- -------- -------- Earnings as defined . . . . . . . . . . . . . $ 46,726 $68,061 $46,301 $29,834 $39,762 ========= ======== ======== ======== ======== Fixed charges as defined (a) Interest expense. . . . . . . . . . . . . . . . . . $ 30,945 $32,637 $19,193 $14,191 $15,986 Amortization of debt expense. . . . . . . . . . . . 839 2,268 1,297 450 449 Preferred securities dividend requirements of consolidated subsidiaries . . . . . . . . . . 13,235 7,699 242 274 274 --------- -------- -------- -------- -------- Fixed charges as defined. . . . . . . . . . . $ 45,019 $42,604 $20,732 $14,915 $16,709 ========= ======== ======== ======== ======== Ratio of earnings to fixed charges. . . . . . . . . 1.04 1.60 2.23 2.00 2.38 ========= ======== ======== ======== ======== <FN> Notes: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) The ratio of earnings to fixed charges calculations for years prior to 2001 have been restated to account for the effect of discontinuing the Company's engineering services business during the fourth quarter of 2001.