1
EXHIBIT (12)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred
Securities Dividends and Distributions
(Millions of Dollars)
Years Ended December 31 -
2000 1999 1998 1997 1996
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(b) (c)
Earnings as defined (a)
Consolidated net income $ 36 $ 277 $ 242 $ 244 $ 224
Income taxes 60 64 100 108 137
Exclude equity basis subsidiaries (171) (84) (92) (80) (85)
Fixed charges as defined, adjusted to
exclude capitalized interest of $49, $41,
$29, $13, and $5 million for the years
ended December 31, 2000, 1999, 1998,
1997, and 1996, respectively 744 588 395 360 313
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Earnings as defined $ 669 $ 845 $ 645 $ 632 $ 589
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Fixed charges as defined (a)
Interest on long-term debt $ 591 $ 502 $ 319 $ 273 $ 230
Estimated interest portion of lease rental 7 7 8 8 10
Other interest charges 48 57 48 49 43
Preferred securities dividends and
distributions 147 96 77 67 54
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Fixed charges as defined $ 793 $ 662 $ 452 $ 397 $ 337
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Ratio of earnings to fixed charges and
preferred securities dividends and distributions - 1.28 1.43 1.59 1.75
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NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of
Regulation S-K.
(b) For the year ended December 31, 2000, fixed charges exceeded earnings by
$124 million. Earnings as defined include a $329 million pretax impairment loss
on the Loy Yang investment. The ratio of earnings to fixed charges and preferred
securities dividends and distributions would have been 1.26 excluding this
amount.
(c) Excludes a cumulative effect of change in accounting after-tax gain of $43
million.