1
Exhibit (12)
CONSUMERS ENERGY COMPANY
Ratio of Earnings to Fixed Charges
(Millions of Dollars)
Twelve Months
Ended Years Ended December 31,
June 30, 1999 1998 1997 1996 1995 1994
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(b)
Earnings as defined (a)
Net income $ 360 $ 306 $ 321 $ 296 $ 255 $ 226
Income taxes 175 135 152 150 133 107
Exclude equity basis subsidiaries (53) (50) (49) (42) (38) (16)
Distributed income of equity investees 23 12
Fixed charges as defined, adjusted to
exclude capitalized interest of $1, $1, $2,
$2, $1 and $1 million for the twelve months
ended June 30, 1999 and for the years ended
December 31, 1998, 1997, 1996, 1995 and
1994, respectively 184 185 182 175 189 174
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Earnings as defined $ 689 $ 588 $ 606 $ 579 $ 539 $ 491
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Fixed charges as defined (a)
Interest on long-term debt $ 139 $ 138 $ 138 $ 139 $ 141 $ 136
Estimated interest portion of lease rental 10 10 9 9 10 10
Other interest charges 36 38 36 29 40 29
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Fixed charges as defined $ 185 $ 186 $ 183 $ 177 $ 191 $ 175
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Ratio of earnings to fixed charges 3.72 3.16 3.31 3.27 2.82 2.81
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NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of
Regulation S-K.
(b) Excludes a cumulative effect of change in accounting after-tax gain of $43
million; if included, ratio would be 3.52
2
Exhibit (12)
CONSUMERS ENERGY COMPANY
Ratio of Earnings to Fixed Charges and Preferred
Securities Dividends and Distributions
(Millions of Dollars)
Twelve Months
Ended Years Ended December 31,
June 30, 1999 1998 1997 1996 1995 1994
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(b)
Earnings as defined (a)
Net income after dividends on preferred stock $ 327 $ 269 $ 284 $ 260 $ 227 $ 202
Income taxes 175 135 152 150 133 107
Exclude equity basis subsidiaries (53) (50) (49) (42) (38) (16)
Distributed income of equity investees 23 12
Fixed charges as defined, adjusted to
exclude capitalized interest of $1, $1, $2,
$2, $1 and $1 million for the twelve months
ended June 30, 1999 and for the years ended
December 31, 1998, 1997, 1996, 1995 and 1994,
respectively 217 222 219 211 217 198
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Earnings as defined $ 689 $ 588 $ 606 $ 579 $ 539 $ 491
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Fixed charges as defined (a)
Interest on long-term debt $ 139 $ 138 $ 138 $ 139 $ 141 $ 136
Estimated interest portion of lease rental 10 10 9 9 10 10
Other interest charges 36 38 36 29 40 29
Preferred stock dividend requirement 40 47 49 51 43 37
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Fixed charges as defined $ 225 $ 233 $ 232 $ 228 $ 234 $ 212
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Ratio of earnings to fixed charges and
preferred securities dividends and distributions 3.06 2.52 2.61 2.54 2.30 2.32
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NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of
Regulation S-K.
(b) Excludes a cumulative effect of change in accounting after-tax gain of $43
million; if included, ratio would be 2.81