1 EXHIBIT 12-1 MICHIGAN CONSOLIDATED GAS COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (THOUSANDS OF DOLLARS) Twelve Months Ended Year Ended December 31, September 30, 1996 --------------------------------------------------------------- ------------------ 1995 1994 1993 1992 1991 --------------------------------------------------------------- EARNINGS AS DEFINED (1) Pre-tax income (2) $132,421 $112,727 $ 89,707 $ 93,315 $ 76,615 $ 57,151 Fixed charges 50,610 45,637 39,663 36,231 38,489 37,283 -------- -------- -------- -------- -------- -------- Earnings as defined $183,031 $158,364 $129,370 $129,546 $115,104 $ 94,434 -------- -------- -------- -------- -------- -------- FIXED CHARGES AS DEFINED (1) Interest on long-term debt $ 40,415 $ 35,820 $ 27,948 $ 25,594 $ 27,927 $ 23,224 Interest on other borrowed funds 7,620 7,053 9,093 7,961 8,044 11,756 Amortization of debt discounts, premium and expense 1,077 996 950 1,057 763 607 Interest implicit in rentals (3) 1,498 1,768 1,672 1,619 1,755 1,696 -------- -------- -------- -------- -------- -------- Fixed charges as defined $ 50,610 $ 45,637 $ 39,663 $ 36,231 $ 38,489 $ 37,283 -------- -------- -------- -------- -------- -------- Ratio of Earnings to Fixed Charges 3.62 3.47 3.26 3.58 2.99 2.53 -------- -------- -------- -------- -------- -------- - ---------------------- Notes: (1) Earnings and fixed charges are defined and computed in accordance with instructions for Item 3 of Form S-3. (2) This amount represents the aggregate of (a) the pre-tax income of MichCon, (b) MichCon's share of pre-tax income of its 50% owned companies and (c) any income actually received from less than 50% owned companies. (3) This amount is estimated to be a reasonable approximation of the interest portion of rentals. MichCon is a guarantor of certain other debt. Fixed charges related to such debt are deemed to be immaterial and therefore have been excluded from the above ratios.