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EXHIBIT (12)
CMS ENERGY CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(MILLIONS OF DOLLARS)
YEARS ENDED DECEMBER 31
THREE MONTHS ----------------------------------------
ENDED
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---- ---- ----- ------ -----
(B) (C)(D) (E)
EARNINGS AS DEFINED (A)
Net income................................. $ 86 $179 $155 $(297) $ (262) $(494)
Income taxes............................... 53 92 75 (146) (94) 25
Exclude equity basis subsidiaries.......... (10) (18) (6) 10 10 13
Fixed charges as defined, adjusted to
exclude capitalized interest of $1, $6,
$5, $3, $5, and $38 million for the three
months ended March 31, 1995 and for the
years ended December 31, 1994, 1993,
1992, 1991 and 1990, respectively........ 63 214 234 217 354 306
------ ---- ---- ----- ------ -----
Earnings as defined........................ $192 $467 $458 $(216) $ 8 $(150)
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FIXED CHARGES AS DEFINED (A)
Interest on long-term debt................. $ 56 $193 $204 $ 169 $ 274 $ 293
Estimated interest portion of lease
rental................................... 3 9 11 16 17 18
Other interest charges..................... 5 18 24 35 68 33
Include equity basis subsidiaries.......... -- -- -- -- -- --
------ ---- ---- ----- ------ -----
Fixed charges as defined................... $ 64 $220 $239 $ 220 $ 359 $ 344
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Ratio of earnings to fixed charges......... 3.00 2.12 1.92 -- -- --
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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 pretax 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 pretax 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 pretax 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)
THREE MONTHS YEARS ENDED DECEMBER 31
ENDED ----------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---- ---- ----- ------ -----
(B) (C)(D) (E)
EARNINGS AS DEFINED (A)
Net income................................. $ 86 $179 $155 $(297) $ (262) $(494)
Income taxes............................... 53 92 75 (146) (94) 25
Exclude equity basis subsidiaries.......... (10) (18) (6) 10 10 13
Fixed charges as defined, adjusted to
exclude capitalized interest of $1, $6,
$5, $3, $5, and $38 million for the three
months ended March 31, 1995 and for the
years ended December 31, 1994, 1993,
1992, 1991, and 1990, respectively....... 69 237 245 228 364 317
------ ---- ---- ----- ------ -----
Earnings as defined........................ $198 $490 $469 $(205) $ 18 $(139)
====== ==== ==== ===== ===== =====
FIXED CHARGES AS DEFINED (A)
Interest on long-term debt................. $ 56 $193 $204 $ 169 $ 274 $ 293
Estimated interest portion of lease
rental................................... 3 9 11 16 17 18
Other interest charges..................... 5 18 24 35 68 33
Preferred stock dividend................... 10 36 17 16 15 17
------ ---- ---- ----- ------ -----
Fixed charges as defined................... $ 74 $256 $256 $ 236 $ 374 $ 361
====== ==== ==== ===== ===== =====
Ratio of earnings to fixed charges......... 2.67 1.91 1.83 -- -- --
====== ==== ==== ===== ===== =====
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 pretax 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 pretax 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 pretax 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.