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 Twelve Months Twelve Months Ended Ended Ended Ended Ended December 31, 1997 December 31, 1996 December 31, 1995 December 31, 1994 December 31, 1993 ----------------------------------------------------------------------------------------------- EARNINGS AS ADJUSTED: Pre-tax income (1) $ 194,430 $ 148,944 $ 128,499 $ 102,088 $ 104,146 Nonrecourse debt 1,609 -- -- -- -- Interest capitalized (18,190) (14,631) (7,893) (2,828) (3,966) Preferred dividend adjustment (2) 32,465 17,989 9,610 (1,982) (1,164) Pension costs (20,539) (14,029) (14,099) 2,018 727 Postretirement costs 11,411 13,586 19,460 28,855 -- Interest rate charges 103,840 89,136 67,120 53,442 44,351 ----------- ----------- ------------ -------------- ------------ $ 305,026 $ 240,995 $ 202,697 $ 181,593 $ 144,094 =========== =========== ============ ============== ============ INTEREST RATE CHARGES: Interest expensed $ 86,453 $ 77,781 $ 56,902 $ 48,710 $ 38,771 Interest capitalized 18,190 14,631 7,893 2,828 3,966 Interest implicit in rentals 2,181 2,339 2,325 1,904 1,614 Nonrecourse interest (1,609) -- -- -- -- Preferred dividends adjustment (3) (1,375) (5,615) -- -- -- ----------- ----------- ------------ -------------- ----------- $ 103,840 $ 89,136 $ 67,120 $ 53,442 $ 44,351 =========== =========== ============ ============== =========== Interest Coverage Ratio 2.94 2.70 3.02 3.40 3.25 =========== =========== ============ ============== =========== (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. ================================================================================