Exhibit (12)(a)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred Securities Dividends
and Distributions
(Millions of Dollars)
Years Ended December 31 -
------------------------------------
2004 2003 2002 2001 2000
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(b) (c) (d) (e)
Earnings as defined (a)
Pretax income from continuing operations $ 137 $ 16 $(433) $(428) $ (1)
Exclude equity basis subsidiaries (88) (41) (39) 68 (171)
Fixed charges as defined, adjusted to
exclude capitalized interest of $(25),
$9, $16, $35 and $48 million for the
years ended December 31, 2004, 2003,
2002, 2001, and 2000, respectively (f) 649 605 518 577 561
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Earnings as defined $ 698 $580 $ 46 $ 217 $ 389
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Fixed charges as defined (a)
Interest on long-term debt $ 560 $531 $ 404 $ 420 $ 420
Estimated interest portion of lease rental 4 7 10 11 11
Other interest charges 49 61 34 83 34
Preferred securities dividends and
distributions 11 15 86 98 144
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Fixed charges as defined $ 624 $614 $ 534 $ 612 $ 609
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Ratio of earnings to fixed charges and
preferred securities dividends and
distributions 1.12 -- -- -- --
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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, 2003, fixed charges exceeded earnings by
$34 million. Earnings as defined include $95 million of asset impairment
charges.
(c) For the year ended December 31, 2002, fixed charges exceeded earnings by
$488 million. Earnings as defined include $602 million of asset impairments
charges.
(d) For the year ended December 31, 2001, fixed charges exceeded earnings by
$395 million. Earnings as defined include $323 million of asset impairments
charges.
(e) For the year ended December 31, 2000, fixed charges exceeded earnings by
$220 million. Earnings as defined include a $329 million pretax impairment
loss on the Loy Yang investment.
(f) Fixed charges, adjusted as defined, excludes $25 million of previously
capitalized interest that was expensed in the year ended December 31, 2004.
Capitalized interest includes a $30.8 million reversal of previously
recorded AFUDC/IDC on capital expenditures covered by Public Act 141.