1 EXHIBIT 12-3 MCN INVESTMENT CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars In Thousands) Twelve Months Twelve Months Twelve Months Ended Ended Ended March 31, 1998 December 31, 1997 December 31, 1996 --------------------- --------------------- ------------------- EARNINGS AS DEFINED (1) (4) Pre-tax income (2) $ 61,063 $ 51,892 $ 21,899 Fixed charges (3) 71,334 65,891 41,628 -------- -------- -------- Earnings as defined $132,397 $117,783 $ 63,527 ======== ======== ======== FIXED CHARGES AS DEFINED (1) (4) Interest, expensed $ 69,932 $ 64,434 $ 40,523 Interest, capitalized 16,517 15,002 8,002 Amortization of debt discounts, premium and expense 1,098 1,183 982 Interest implicit in rentals 304 274 123 -------- -------- -------- Fixed charges as defined $ 87,851 $ 80,893 $ 49,630 ======== ======== ======== Ratio of Earnings to Fixed Charges 1.51 1.46 1.28 ======== ======== ======== (1) Earnings and fixed charges are defined and computed in accordance with Item 503 of Regulation S-K. (2) This amount represents the aggregate of (a) the pre-tax income from continuing operations of MCN Investment and its majority-owned subsidiaries, (b) MCN Investment's share of pre-tax income of its 50% owned companies, and (c) any income actually received from less than 50% owned companies. (3) Fixed charges added to earnings are adjusted to exclude interest capitalized during the period. (4) In June 1996, MCN completed the sale of The Genix Group, its computer operations subsidiary. For purposes of calculating the Ratio of Earnings to Fixed Charges, it has been classified as a discontinued operation and therefore excluded from the ratio for all periods presented.