1 Exhibit (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges (Millions of Dollars) Nine Months Ended Years Ended December 31 September 30, 1997 1996 1995 1994 1993 1992 ------------------ ---- ---- ---- ---- ----- (b) Earnings as defined (a) - ------------------------------- Consolidated net income (loss) $ 204 $240 $204 $179 $155 $(297) Income taxes 107 139 118 92 75 (146) Exclude equity basis subsidiaries (61) (85) (57) (18) (6) 10 Fixed charges as defined, adjusted to exclude capitalized interest of $11, $8, $8, $6, $5, and $3 million for the nine months ended September 30, 1997 and for the years ended December 31, 1996, 1995, 1994, 1993 and 1992, respectively 228 275 268 226 241 225 ------------------------------------ Earnings as defined $ 478 $569 $533 $479 $465 $(208) ==================================== Fixed charges as defined (a) - ---------------------------- Interest on long-term debt $198 $230 $224 $193 $204 $169 Estimated interest portion of lease rental 6 10 9 9 11 16 Other interest charges 34 43 42 30 32 43 ----------------------------------- Fixed charges as defined $238 $283 $275 $232 $247 $228 =================================== Ratio of earnings to fixed charges 2.01 2.01 1.94 2.07 1.88 - =================================== 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 1.33 excluding these amounts.