CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Computation of Ratio of Earnings to Fixed Charges Exhibit (12) (i)(i)
and Ratio of Earnings to Fixed Charges and Preferred Dividends
2003
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3 Months 9 Months 12 Months
Ended Ended Ended
Sept 30 Sept 30 Sept 30
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Earnings: ($000)
A. Net Income $ 6,926 $ 29,277 $ 36,157
B. Federal & State Income Tax 4,671 20,133 24,794
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C. Earnings before Income Taxes $ 11,597 $ 49,410 $ 60,951
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D. Fixed Charges
Interest on Mortgage Bonds 68 570 833
Interest on Other Long-Term Debt 2,599 7,850 10,579
Other Interest (2) 2,974 7,776 10,559
Interest Portion of Rents 194 562 746
Amortization of Premium & Expense on Debt 249 897 1,222
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Total Fixed Charges $ 6,084 $ 17,655 $ 23,939
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E. Total Earnings $ 17,681 $ 67,065 $ 84,890
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 (2) $ 242 $ 1,145 $ 1,596
G. Less Allowable Dividend Deduction (32) (96) (127)
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H. Net Subject to Gross-up 210 1,049 1,469
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.674 1.688 1.686
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J. Pref. Dividend (Pre-tax) (H x L) 352 1,771 2,477
K. Plus Allowable Dividend Deduction 32 96 127
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L. Preferred Dividend Factor 384 1,867 2,604
M. Fixed Charges (D) 6,084 17,655 23,939
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N. Total Fixed Charges and Preferred Dividends $ 6,468 $ 19,522 $ 26,543
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O. Ratio of Earnings to Fixed Charges (E/D) 2.91 3.80 3.55
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 2.73 3.44 3.20
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Year Ended December 31,
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2002 2001 (1) 2000 1999 1998
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Earnings: ($000)
A. Net Income $ 32,524 $ 44,178 $ 52,595 $ 51,881 $ 52,544
B. Federal & State Income Tax 21,690 (7,637) 37,150 28,144 28,627
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C. Earnings before Income Taxes $ 54,214 $ 36,541 $ 89,745 $ 80,025 $ 81,171
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D. Fixed Charges
Interest on Mortgage Bonds 2,136 5,211 11,342 13,057 14,225
Interest on Other Long-Term Debt 9,819 10,446 12,864 11,094 8,890
Other Interest (2) 11,772 11,820 6,251 4,860 3,639
Interest Portion of Rents 749 801 962 993 1,004
Amortization of Premium & Expense on Debt 1,249 1,350 1,170 993 924
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Total Fixed Charges $ 25,725 $ 29,628 $ 32,589 $ 30,997 $ 28,682
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E. Total Earnings $ 79,939 $ 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 (2) $ 2,161 $ 3,230 $ 3,230 $ 3,230 $ 3,230
G. Less Allowable Dividend Deduction (127) (127) (127) (127) (127)
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H. Net Subject to Gross-up 2,034 3,103 3,103 3,103 3,103
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.667 0.827 1.706 1.542 1.545
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J. Pref. Dividend (Pre-tax) (H x L) 3,391 2,566 5,294 4,785 4,794
K. Plus Allowable Dividend Deduction 127 127 127 127 127
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L. Preferred Dividend Factor 3,518 2,693 5,421 4,912 4,921
M. Fixed Charges (D) 25,725 29,628 32,589 30,997 28,682
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N. Total Fixed Charges and Preferred Dividends $ 29,243 $ 32,321 $ 38,010 $ 35,909 $ 33,603
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O. Ratio of Earnings to Fixed Charges (E/D) 3.11 2.23 3.75 3.58 3.83
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 2.73 2.05 3.22 3.09 3.27
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(1) The reduction in the ratios reflects the net effect of regulatory actions
in 2001 associated with the sale of the interests of Central Hudson in its
major electric generating assets, including the recording of a significant
amount of federal investment income tax credits.
(2) Reflects SFAS #150 reclassification of $208,750 in preferred stock
dividends to interest expense for the quarter ended September 30, 2003.