EXHIBIT (12)
CMS ENERGY CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED SECURITIES DIVIDENDS AND DISTRIBUTIONS
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
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RESTATED RESTATED
2002 2001 2000 1999 1998 1997
---- -------- -------- ---- ---- ----
(B) (C) (D) (E)
(MILLIONS OF DOLLARS)
EARNINGS AS DEFINED(A)
Consolidated net income.......................... $(620) $(448) $ 43 $277 $242 $244
Discontinued operations.......................... 222 210 (83) 14 12 (1)
Income taxes..................................... 23 (98) 34 63 100 108
Exclude equity basis subsidiaries................ (34) -- (171) (84) (92) (80)
Fixed charges as defined, adjusted to exclude
capitalized interest of $16, $35, $47, $41,
$29, and $13 million for the years ended
December 31, 2002, 2001, 2000, 1999, 1998, and
1997, respectively............................. 551 618 558 594 393 360
----- ----- ----- ---- ---- ----
Earnings as defined.............................. $ 142 $ 282 $ 381 $864 $655 $631
===== ===== ===== ==== ==== ====
FIXED CHARGES AS DEFINED(A)
Interest on long-term debt....................... $ 401 $ 416 $ 420 $502 $318 $273
Estimated interest portion of lease rental....... 29 6 7 8 8 0
Other interest charges........................... 5 82 34 62 47 49
Preferred securities dividends and
distributions.................................. 132 149 144 96 77 67
----- ----- ----- ---- ---- ----
Fixed charges as defined......................... $ 567 $ 653 $ 605 $668 $450 $397
===== ===== ===== ==== ==== ====
Ratio of earnings to fixed charges and preferred
securities dividends and distributions......... -- -- -- 1.29 1.46 1.59
===== ===== ===== ==== ==== ====
</Table>
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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, 2002, fixed charges exceeded earnings by
$425 million. Earnings as defined include $598 million of asset
revaluations and other charges. The ratio of earnings to fixed charges and
preferred securities dividends and distributions would have been 1.31
excluding these amounts.
(c) For the year ended December 31, 2001, fixed charges exceeded earnings by
$371 million. Earnings as defined include $240 million of asset
revaluations and other charges.
(d) For the year ended December 31, 2000, fixed charges exceeded earnings by
$224 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 1.17
excluding this amount.
(e) Excludes a cumulative effect of change in accounting after-tax gain of $43
million.