Exhibit 12 (ii)
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Computation of Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Dividends
2002 Year Ended December 31,
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3 Months 6 Months 12 Months
Ended Ended Ended
June 30 June 30 June 30 2001 (1) 2000 1999 1998
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Earnings:
A. Net Income from Continuing Operations $ 3,223 $ 18,479 $ 47,117 $ 44,178 $ 52,595 $ 51,881 $ 52,544
B. Federal & State Income Tax 2,240 12,334 (6,375) (7,637) 37,150 28,144 28,627
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C. Earnings before Income Taxes $ 5,463 $ 30,813 $ 40,742 $ 36,541 $ 89,745 $ 80,025 $ 81,171
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D. Fixed Charges
Interest on Mortgage Bonds 670 1,339 2,678 5,211 11,342 13,057 14,225
Interest on Other Long-Term Debt 2,725 4,388 8,347 10,446 12,864 11,094 8,890
Other Interest 2,982 6,165 10,986 11,820 6,251 4,860 3,639
Interest Portion of Rents 187 378 776 801 962 993 1,004
Amortization of Premium &
Expense on Debt 314 606 1,336 1,350 1,170 993 924
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Total Fixed Charges $ 6,878 $ 12,876 $ 24,123 $ 29,628 $ 32,589 $ 30,997 $ 28,682
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E. Total Earnings $ 12,341 $ 43,689 $ 64,865 $ 66,169 $ 122,334 $ 111,022 $ 109,853
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 451 $ 1,259 $ 2,874 $ 3,230 $ 3,230 $ 3,230 $ 3,230
G. Less Allowable Dividend Deduction (32) (64) (127) (127) (127) (127) (127)
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H. Net Subject to Gross-up 419 1,195 2,747 3,103 3,103 3,103 3,103
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.695 1.667 0.865 0.827 1.706 1.542 1.545
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J. Pref. Dividend (Pre-tax) (H x L) 710 1,992 2,376 2,566 5,294 4,785 4,794
K. Plus Allowable Dividend Deduction 32 64 127 127 127 127 127
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L. Preferred Dividend Factor 742 2,056 2,503 2,693 5,421 4,912 4,921
M. Fixed Charges (D) 6,878 12,876 24,123 29,628 32,589 30,997 28,682
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N. Total Fixed Charges and
Preferred Dividends $ 7,620 $ 14,932 $ 26,626 $ 32,321 $ 38,010 $ 35,909 $ 33,603
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O. Ratio of Earnings to Fixed Charges (E/D) 1.79 3.39 2.69 2.23 3.75 3.58 3.83
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 1.62 2.93 2.44 2.05 3.22 3.09 3.27
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(1) The reduction in the ratios reflect the net effect of regulatory
actions in 2001 associated with the sale of the interests of Central
Hudson Gas & Electric Corporation in its fossil generating plants
and the Nine Mile 2 Plant.