1 EXHIBIT 12.2 MCN ENERGY GROUP INC. AND SUBSIDIARIES COMPUTATION OF INTEREST COVERAGE RATIO (Dollars in Thousands) The following table sets forth the interest coverage ratio for MCN on a historical basis for the periods indicated. This ratio differs from the SEC prescribed "Ratio of Earnings to Fixed Charges" in its treatment of certain hybrid securities of MCN. Twelve Months Twelve Months Twelve Months Ended Ended Ended December 31, 1997 December 31, 1996 December 31, 1995 -------------------------------------------------------------- EARNINGS AS ADJUSTED: Pre-tax income (1) $ 194,430 148,944 128,499 Nonrecourse debt 1,609 -- -- Interest capitalized (18,190) (14,631) (7,893) Preferred dividend adjustment (2) 32,465 17,989 9,610 Pension costs (20,539) (14,029) (14,099) Postretirement costs 11,411 13,586 19,460 Interest rate charges 103,840 89,136 67,120 ----------- ----------- ------------ 305,026 240,995 202,697 =========== =========== ============ INTEREST RATE CHARGES: Interest expensed 86,453 77,781 56,902 Interest capitalized 18,190 14,631 7,893 Interest implicit in rentals 2,181 2,339 2,325 Nonrecourse interest (1,609) -- -- Preferred dividends adjustment (3) (1,375) (5,615) -- ----------- ----------- ------------ 103,840 89,136 67,120 =========== =========== ============ Interest Coverage Ratio 2.94 2.70 3.02 =========== =========== ============ (1) Income from continuing operations before income taxes (2) Preferred dividends expensed, adjusted to: exclude (a) dividends on the $100,000,000 of Single Point Remarketed Reset Capital Securities (SPRRCS) of MCN Financing VI, (b) dividends on the $100,000,000 of Private Institutional Trust Securities (PRINTS) of MCN Financing V and to include (c) interest on the $130,000,000 of 6.82% Series Medium-Term Notes, issued in conjunction with the $135,000,000 of 8% Preferred Redeemable Increased Dividend Equity Securities of MCN. (3) Includes interest on $130,000,000 of 6.82% Series Medium-Term Notes less dividends on the SPRRCS and PRINTS. ================================================================================