. . . Exhibit 12 SEMCO ENERGY, Inc. Ratio of Earnings to Fixed Charges (Thousands of Dollars) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended December 31, ------------------------------------------------------------------------------ Description 2004 2003 (b) 2002 (b) 2001 (b) 2000 (b) ------------------------------------------------- ---------- --------- --------- --------- --------- Earning as defined (a) Income (loss) before income taxes, divid- ends on trust preferred securities, discon- tinued operations & extraordinary items $ 3,689 ($ 864) $ 33,777 $ 21,338 $ 30,375 Fixed charges as defined 45,262 47,208 43,956 44,142 41,778 Add distributed earnings of equity investees 772 1,117 1,154 873 1,337 Less reported earnings of equity investees (1,755) (1,604) (1,506) (1,356) (1,363) Less preference securities dividend require- ments of consolidated subsidiaries 0 (6,616) (13,232) (13,235) (7,699) -------- -------- -------- -------- -------- Earnings as defined $ 47,968 $ 39,241 $ 64,149 $ 51,762 $ 64,428 ======== ======== ======== ======== ======== Fixed charges as defined (a) Interest expensed and capitalized $ 40,663 $ 37,316 $ 29,817 $ 30,044 $ 31,454 Amortization of debt costs and debt basis adjustments 3,630 2,369 158 27 1,865 Estimate of Interest within rental expense 969 907 749 836 760 Preference securities dividend requirements of consolidated subsidiaries 0 6,616 13,232 13,235 7,699 -------- -------- -------- -------- -------- Fixed charges as defined $ 45,262 $ 47,208 $ 43,956 $ 44,142 $ 41,778 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 1.06 0.83 1.46 1.17 1.54 ======== ======== ======== ======== ======== - ---------------------------------------------------------------- -------- -------- -------- -------- Notes: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) In 2004, the Company began accounting for its construction services business as a discontinued operation and, for financial statement purposes, reclassified prior periods accordingly. The calculations of the ratios of earnings to fixed charges for periods prior to 2004 have been adjusted to reflect the reclassifications to these prior periods.