1 MCN ENERGY GROUP INC. EXHIBIT 12-2 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 March 31, 1998 December 31, 1997 December 31, 1996 ---------------------- ----------------------- --------------------- EARNINGS AS ADJUSTED: Pre-tax income (1) $ 194,458 $ 194,430 $ 148,944 Non-recourse interest 2,478 1,609 - Interest capitalized (19,601) (18,190) (14,631) Preferred dividend adjustment (2) 34,701 32,465 17,989 Pension costs (34,954) (20,539) (14,029) Postretirement costs 11,717 11,411 13,586 Interest rate charges 109,523 103,840 89,136 --------- --------- --------- $ 298,322 $ 305,026 $ 240,995 ========= ========= ========= INTEREST RATE CHARGES: Interest expensed $ 88,111 $ 86,453 $ 77,781 Interest capitalized 19,601 18,190 14,631 Interest implicit in rentals 2,375 2,181 2,339 Non-recourse interest (2,478) (1,609) - Preferred dividends adjustment (3) 1,914 (1,375) (5,615) --------- --------- --------- $ 109,523 $ 103,840 $ 89,136 ========= ========= ========= Interest Coverage Ratio 2.72 2.94 2.70 ========= ========= ========= (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) Interest rate charges are being adjusted to exclude interest on $130,000,000 of 6.82% Series Medium-Term Notes and include dividends on the SPRRCS and PRINTS.