EXHIBIT 12-1 MCN CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of Dollars) Twelve Months Twelve Months Twelve Months Ended Ended Ended September 30, 1995 December 31, 1994 December 31, 1993 ------------------ ----------------- ----------------- EARNINGS AS DEFINED (1) Pre-tax income (2) ....................... $102,835 $105,887 $106,987 Fixed charges (3) ........................ 76,436 60,910 48,955 -------- -------- -------- Earnings as defined .................... $179,271 $166,797 $155,942 ======== ======== ======== FIXED CHARGES AS DEFINED (1) (4) Interest, expensed ....................... $ 55,893 $ 48,948 $ 38,728 Interest, capitalized .................... 6,275 2,928 3,966 Amortization of debt discounts, premium and expense ............................ 1,600 1,332 1,153 Interest implicit in rentals ............. 8,865 7,773 6,350 Preferred securities dividend requirements of subsidiaries ........................ 8,965 2,203 1,086 -------- -------- -------- Fixed charges as defined ............... $ 81,598 $ 63,184 $ 51,283 ======== ======== ======== Ratio of Earnings to Fixed Charges ....... 2.20 2.64 3.04 ======== ======== ======== <FN> Notes: (1) Earnings and fixed charges are defined and computed in accordance with Item 503 of Regulation S-K. (2) This amount represents the aggregate of (a) the pre-tax income of MCN and its majority-owned subsidiaries, (b) MCN's share of pre-tax income of its 50% owned companies, and (c) any income actually received from less than 50% owned companies. (3) Fixed charges added to earnings are adjusted to exclude interest capitalized during the period for nonutility companies and the preferred securities dividend requirements of MichCon included in fixed charges but not deducted in the determination of pre-tax income. (4) Fixed charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, and (d) preferred securities dividend requirements of subsidiaries (MichCon and MCN Michigan Limited Partnership), increased to reflect the pre-tax earnings requirement for MichCon.