1 Exhibit 12 CONSUMERS ENERGY COMPANY Ratio of Earnings to Fixed Charges (Millions of Dollars) Twelve Months Ended March 31, 1998 1997 1996 1995 1994 1993 -------------------------------------------------------------------- Earnings as defined (a) Net income $ 336 $ 321 $ 296 $ 255 $ 226 $ 198 Income taxes 133 152 150 133 107 91 Exclude equity basis subsidiaries (50) (49) (42) (38) (16) (6) Fixed charges as defined, adjusted to exclude capitalized interest of -, $1, $2, $2, $1, and $1 million for the twelve months ended March 31, 1998 and for the years ended December 31, 1997, 1996, 1995, 1994 and 1993, respectively 184 182 175 189 174 192 ----------------------------------------------------------- Earnings as defined $ 603 $ 606 $ 579 $ 539 $ 491 $ 475 =========================================================== Fixed charges as defined (a) Interest on long-term debt $ 137 $ 138 $ 139 $ 141 $ 136 $152 Estimated interest portion of lease rental 9 9 9 10 10 11 Other interest charges 38 36 29 40 29 30 ----------------------------------------------------------- Fixed charges as defined $ 184 $ 183 $ 177 $ 191 $ 175 $ 193 =========================================================== Ratio of earnings to fixed charges 3.28 3.31 3.27 2.82 2.81 2.46 =========================================================== NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.