EXHIBIT (12)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred Securities
Dividends and Distributions
(Millions of Dollars)
Years Ended December 31 -
2002 2001 2000 1999 1998
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Restated Restated
(b) (c) (d) (e)
Earnings as defined (a)
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Consolidated net income $(620) $(448) $ 43 $ 277 $ 242
Discontinued operations 222 210 (83) (70) 8
Income taxes 13 (98) 34 64 100
Exclude equity basis subsidiaries (39) - (171) (45) (95)
Fixed charges as defined, adjusted to
exclude capitalized interest of $16, $35,
$47, $41 and $29 million for the
years ended December 31, 2002, 2001,
2000, 1999 and 1998, respectively 551 618 558 622 422
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Earnings as defined $ 127 $ 282 $ 381 $ 848 $ 677
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Fixed charges as defined (a)
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Interest on long-term debt $ 401 $ 416 $ 420 $ 502 $ 318
Estimated interest portion of lease rental 5 6 7 8 8
Other interest charges 29 82 34 58 47
Preferred securities dividends and
distributions 132 149 144 95 78
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Fixed charges as defined $ 567 $ 653 $ 605 $ 663 $ 451
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Ratio of earnings to fixed charges and
preferred securities dividends and distributions - - - 1.28 1.50
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NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of
Regulation S-K.
(b) For the year ended December 31, 2002, fixed charges exceeded earnings by
$440 million. Earnings as defined include $598 million of asset revaluations and
other charges. The ratio of earnings to fixed charges and preferred securities
dividends and distributions would have been 1.28 excluding these amounts.
(c) For the year ended December 31, 2001, fixed charges exceeded earnings by
$371 million. Earnings as defined include $240 million of asset revaluations and
other charges.
(d) For the year ended December 31, 2000, fixed charges exceeded earnings by
$224 million. Earnings as defined include a $329 million pretax impairment loss
on the Loy Yang investment. The ratio of earnings to fixed charges and preferred
securities dividends and distributions would have been 1.17 excluding this
amount.
(e) Excludes a cumulative effect of change in accounting after-tax gain of $43
million.