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EXHIBIT 12-2
MCN CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
TWELVE MONTHS ENDED DECEMBER 31,
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1995 1994 1993 1992 1991
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EARNINGS AS DEFINED (1)(5)
Pre-tax income (2) $ 128,997 $ 100,143 $ 102,402 $ 81,861 $ 52,906
Fixed charges (3) 72,895 55,197 44,262 43,878 43,978
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Earnings as defined $ 201,892 $ 155,340 $ 146,664 $ 125,739 $ 96,884
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FIXED CHARGES AS DEFINED (1)(4)(5)
Interest, expensed $ 57,675 $ 49,104 $ 38,771 $ 38,860 $ 39,657
Interest, capitalized 7,926 2,928 3,966 1,650 737
Amortization of debt discounts, premium
and expense 1,641 1,332 1,153 830 629
Interest implicit in rentals 2,325 1,904 1,614 1,776 1,735
Preferred securities dividend requirements
of subsidiaries 9,699 2,194 1,079 1,464 1,879
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Fixed charges as defined $ 79,266 $ 57,462 $ 46,583 $ 44,580 $ 44,637
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Ratio of Earnings to Fixed Charges 2.55 2.70 3.15 2.82 2.17
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(1) Earnings and fixed charges are defined and computed in accordance with
Item 503 of Regulation S-K.
(2) This amount represents the aggregate of (a) the pre-tax income from
continuing operations of MCN and its majority-owned subsidiaries, (b)
MCN's share of pre-tax income of its 50% owned companies, and (c) any
income actually received from less than 50% owned companies.
(3) Fixed charges added to earnings are adjusted to exclude interest
capitalized during the period for nonutility companies and the preferred
securities dividend requirements of MichCon included in fixed charges but
not deducted in the determination of pre-tax income.
(4) Fixed charges represent (a) interest, whether expensed or capitalized, (b)
amortization of debt discount, premium and expense, (c) an estimate of
interest implicit in rentals, and (d) preferred securities dividend
requirements of subsidiaries (MichCon and MCN Limited Partnership),
increased to reflect the pre-tax earnings requirement for MichCon.
(5) In April 1996, MCN announced its intention to sell The Genix Group, its
computer services subsidiary. For purposes of calculating the Ratio of
Earnings to Fixed Charges, it has been classified as a discontinued
operation and therefore excluded from the ratio for all periods presented.