CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Computation of Ratio of Earnings to Fixed Charges Exhibit 12(ii)
and Ratio of Earnings to Fixed Charges and
Preferred Dividends
2002 Year Ended December 31,
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3 Months 12 Months
Ended Ended
Dec 31 Dec 31 2001 (1) 2000 1999 1998
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Earnings:
A. Net Income $ 6,880 $ 32,524 $ 44,178 $ 52,595 $ 51,881 $ 52,544
B. Federal & State Income Tax 4,661 39,030 (7,637) 37,150 28,144 28,627
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C. Earnings before Income Taxes $ 11,541 $ 71,554 $ 36,541 $ 89,745 $ 80,025 $ 81,171
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D. Fixed Charges
Interest on Mortgage Bonds 263 2,136 5,211 11,342 13,057 14,225
Interest on Other Long-Term Debt 2,729 9,819 10,446 12,864 11,094 8,890
Other Interest 2,784 11,772 11,820 6,251 4,860 3,639
Interest Portion of Rents 184 749 801 962 993 1,004
Amortization of Premium & Expense on Debt 324 1,249 1,350 1,170 993 924
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Total Fixed Charges $ 6,284 $ 25,725 $ 29,628 $ 32,589 $ 30,997 $ 28,682
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E. Total Earnings $ 17,825 $ 97,279 $ 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 $ 2,161 $ 3,230 $ 3,230 $ 3,230 $ 3,230
G. Less Allowable Dividend Deduction (31) (127) (127) (127) (127) (127)
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H. Net Subject to Gross-up 420 2,034 3,103 3,103 3,103 3,103
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.677 2.200 0.827 1.706 1.542 1.545
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J. Pref. Dividend (Pre-tax) (H x L) 704 4,475 2,566 5,294 4,785 4,794
K. Plus Allowable Dividend Deduction 31 127 127 127 127 127
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L. Preferred Dividend Factor 735 4,602 2,693 5,421 4,912 4,921
M. Fixed Charges (D) 6,284 25,725 29,628 32,589 30,997 28,682
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N. Total Fixed Charges and Preferred Dividends $ 7,019 $ 30,327 $ 32,321 $ 38,010 $ 35,909 $ 33,603
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O. Ratio of Earnings to Fixed Charges (E/D) 2.84 3.78 2.23 3.75 3.58 3.83
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 2.54 3.21 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; including the recording of a significant amount of federal
investment income tax credits.