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EXHIBIT (12)
CONSUMERS ENERGY CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(MILLIONS OF DOLLARS)
THREE MONTHS
ENDED
MARCH 31 YEAR ENDED DECEMBER 31
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2001 2000 2000 1999 1998 1997 1996
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Earnings as defined:
Net income................................ $107 $ 94 $304 $340 $349(b) $321 $296
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Net income (loss) after preferred
dividends and distributions............ $ 98 $ 85 $268 $313 $312(b) $284 $260
Income taxes.............................. $ 61 $ 53 $148 172 158 152 150
Exclude equity basis subsidiaries......... (14) (9) (57) (50) (50) (49) (42)
Distributed income of equity investees.... -- 1 10 10 12
Fixed charges as defined, adjusted to
exclude capitalized interest of $1 and
$0 million for the three months ended
March 31, 2001 and 2000 respectively
and $2, $0, $1, $1 and $2 million for
the years ended December 31, 2000,
1999, 1998, 1997 and 1996,
respectively........................... 50 45 194 192 185 182 175
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Earnings as defined.................. $204 $184 $599 $664 $654 $606 $579
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Fixed charges as defined:
Interest on long-term debt................ $ 38 34 $141 $140 $138 $138 $139
Estimated interest portion of lease
rental................................. 3 3 11 11 10 9 9
Other interest charges.................... 10 8 44 41 38 36 29
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Fixed charges as defined............. $ 51 $ 45 $196 $192 $186 $183 $177
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Ratio of earnings to:(a)
Fixed charges(a).......................... 4.00 4.09 3.06 3.46 3.16(c) 3.31 3.27
Fixed charges & preferred dividends....... 3.40 3.41 2.57 2.99 2.52(d) 2.61 2.54
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NOTES:
(a) For purposes of computing the ratio, earnings represent net income before
income taxes, net interest charges and the estimated interest portions of
lease rentals, plus distributed income of equity investees less earnings
from minority interests of equity investees. Earnings for the ratio of
earnings to fixed charges and preferred stock dividends also includes the
amount required to pay distributions on preferred securities and the amount
of pretax earnings required to pay the distributions on outstanding
preferred stock.
(b) Includes a pre-tax $66 million increase due to a one-time change in method
of accounting for property taxes.
(c) Excludes a cumulative effect of change-in-accounting, after-tax gain of $43
million; if included, ratio would be 3.52.
(d) Excludes a cumulative effect of change-in-accounting, after-tax gain of $43
million; if included, ratio would be 2.81.