Exhibit (12)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred Securities
Dividends and Distributions
(Millions of Dollars)
Six Months
Ended Years Ended December 31 -
June 30, 2002 2001 2000 1999 1998 1997
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(b) (c) (d)
Earnings as defined (a)
Consolidated net income $ 314 $(545) $ 36 $ 277 $ 242 $ 244
Discontinued operations (169) 185 (3) 14 12 (1)
Income taxes 97 (73) 50 63 100 108
Exclude equity basis subsidiaries (81) -- (171) (84) (92) (80)
Fixed charges as defined, adjusted
to exclude capitalized interest
of $9, $38, $48, $41, $29, and
$13 million for the six months
ended June 30, 2002, and the years
ended December 31, 2001, 2000,
1999, 1998, and 1997, respectively 328 751 736 594 393 360
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Earnings as defined $ 489 $ 318 $ 648 $ 864 $ 655 $ 631
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Fixed charges as defined (a)
Interest on long-term debt $ 243 $ 573 $ 591 $ 502 $ 318 $ 273
Estimated interest portion of lease rental 1 6 7 8 8 10
Other interest charges 14 58 38 62 47 49
Preferred securities dividends and
distributions 78 152 147 96 77 67
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Fixed charges as defined $ 336 $ 789 $ 784 $ 668 $ 450 $ 397
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Ratio of earnings to fixed charges and
preferred securities dividends and
distributions 1.46 -- -- 1.29 1.46 1.59
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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, 2001, fixed charges exceeded earnings by
$471 million. Earnings as defined include $704 million of pretax contract
losses, asset revaluations and other charges. The ratio of earnings to fixed
charges and preferred securities dividends and distributions would have been
1.30 excluding these amounts.
(c) For the year ended December 31, 2000, fixed charges exceeded earnings by
$136 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 1.25 excluding this
amount.
(d) Excludes a cumulative effect of change in accounting after-tax gain of
$43 million.