1
EXHIBIT (12)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges
(Millions of Dollars)
Twelve Months Years Ended December 31
Ended ----------------------------------------------
Sept. 30, 1994 1993 1992 1991 1990 1989
-------------- ------ ------ ------ ------ ------
(b) (c)(d) (e)
Earnings as defined (a)
- -----------------------
Net income $ 175 $ 155 $(297) $(262) $(494) $ 312
Income taxes 94 75 (146) (94) 25 170
Exclude equity basis subsidiaries (14) (6) 10 10 13 1
Fixed charges as defined, adjusted to
exclude capitalized interest of $6,
$5, $3, $5, $38 and $177 million for
the twelve months ended September 30, 1994
and for the years ended December 31,
1993, 1992, 1991, 1990 and 1989,
respectively 212 234 217 354 306 188
------ ------ ------ ------ ------ ------
Earnings as defined $ 467 $ 458 $(216) $ 8 $(150) $ 671
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Fixed charges as defined (a)
- ----------------------------
Interest on long-term debt $ 191 $ 204 $ 169 $ 274 $ 293 $ 314
Estimated interest portion of lease rental 10 11 16 17 18 15
Other interest charges 18 24 35 68 33 33
Include equity basis subsidiaries - - - - - 3
------ ------ ------ ------ ------ ------
Fixed charges as defined $ 219 $ 239 $ 220 $ 359 $ 344 $ 365
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Ratio of earnings to fixed charges 2.13 1.92 - - - 1.84
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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, 1992, fixed charges exceeded earnings by
$441 million. Earnings as defined include a $520 million pre-tax loss on the
settlement of MCV Power Purchases, $(15) million for potential customer refunds
and other reserves related to 1992 but recorded in 1991, and $6 million
relating to CMS Generation Company's reduction in its investment in The Oxford
Energy Company. The ratio of earnings to fixed charges would have been 1.34
excluding these amounts.
(c) Excludes an extraordinary after-tax loss of $14 million.
(d) For the year ended December 31, 1991, fixed charges exceeded earnings by
$356 million. Earnings as defined include pre-tax losses of $398 million for
write-downs and reserve amounts related to the abandonment of the Midland
nuclear plant, $76 million for potential customer refunds and other reserves,
and $51 million relating to CMS Generation Company's reduction in its
investment in The Oxford Energy Company. The ratio of earnings to fixed
charges would have been 1.48 excluding these amounts.
(e) For the year ended December 31, 1990, fixed charges exceeded earnings by
$500 million. Earnings as defined include pre-tax losses of $847 million for
write-downs and reserve amounts related to the abandonment of the Midland
nuclear plant. The ratio of earnings to fixed charges would have been 2.01
excluding these amounts.
2
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(Millions of Dollars)
Twelve Months Years Ended December 31
Ended ----------------------------------------------
Sept. 30, 1994 1993 1992 1991 1990 1989
-------------- ------ ------ ------ ------ ------
(b) (c)(d) (e)
Earnings as defined (a)
- -----------------------
Net income $ 175 $ 155 $(297) $(262) $(494) $ 312
Income taxes 94 75 (146) (94) 25 170
Exclude equity basis subsidiaries (14) (6) 10 10 13 1
Fixed charges as defined, adjusted to
exclude capitalized interest of $6,
$5, $3, $5, $38 and $177 million for
the twelve months ended September 30, 1994
and for the years ended December 31,
1993, 1992, 1991, 1990 and 1989,
respectively 232 245 228 364 317 207
------ ------ ------ ------ ------ ------
Earnings as defined $ 487 $ 469 $(205) $ 18 $(139) $ 690
====== ====== ====== ====== ====== ======
Fixed charges as defined (a)
- ----------------------------
Interest on long-term debt $ 191 $ 204 $ 169 $ 274 $ 293 $ 314
Estimated interest portion of lease rental 10 11 16 17 18 15
Other interest charges 18 24 35 68 33 33
Include equity basis subsidiaries - - - - - 3
Preferred stock dividend 30 17 16 15 17 28
------ ------ ------ ------ ------ ------
Fixed charges as defined $ 249 $ 256 $ 236 $ 374 $ 361 $ 393
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Ratio of earnings to fixed charges
and preferred dividends 1.96 1.83 - - - 1.76
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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, 1992, fixed charges exceeded earnings by
$441 million. Earnings as defined include a $520 million pre-tax loss on the
settlement of MCV Power Purchases, $(15) million for potential customer refunds
and other reserves related to 1992 but recorded in 1991, and $6 million
relating to CMS Generation Company's reduction in its investment in The Oxford
Energy Company. The ratio of earnings to fixed charges would have been 1.30
excluding these amounts.
(c) Excludes an extraordinary after-tax loss of $14 million.
(d) For the year ended December 31, 1991, fixed charges exceeded earnings by
$356 million. Earnings as defined include pre-tax losses of $398 million for
write-downs and reserve amounts related to the abandonment of the Midland
nuclear plant, $76 million for potential customer refunds and other reserves,
and $51 million relating to CMS Generation Company's reduction in its
investment in The Oxford Energy Company. The ratio of earnings to fixed
charges would have been 1.45 excluding these amounts.
(e) For the year ended December 31, 1990, fixed charges exceeded earnings by
$500 million. Earnings as defined include pre-tax losses of $847 million for
write-downs and reserve amounts related to the abandonment of the Midland
nuclear plant. The ratio of earnings to fixed charges would have been 1.96
excluding these amounts.