CH ENERGY GROUP, INC. Computation of Ratio of Earnings to Fixed Charges EXHIBIT (12) (i) 2004 -------------------------------------------- 3 Months 9 Months 12 Months Ended Ended Ended Sept. 30 Sept. 30 Sept. 30 -------- -------- -------- Earnings: ($000) A. Net Income from Continuing Operations (2) $ 4,451 $32,936 $44,398 B. Federal and State Income Tax 4,391 25,126 33,122 ------- ------- ------- C. Earnings before Income Taxes $ 8,842 $58,062 $77,520 ======= ======= ======= D. Fixed Charges Interest on Mortgage Bonds 0 0 0 Interest on Other Long-Term Debt 2,696 8,436 11,285 Other Interest 778 4,603 6,657 Interest Portion of Rents 250 933 1,207 Amortization of Premium & Expense on Debt 263 810 1,071 Preferred Stock Dividends of Central Hudson 449 1,208 1,599 ------- ------- ------- Total Fixed Charges $ 4,436 $15,990 $21,819 ======= ======= ======= E. Total Earnings $13,278 $74,052 $99,339 ======= ======= ======= Preferred Dividend Requirements: F. Allowance for Preferred Stock Dividends Under IRC Sec 247 $ 242 $ 727 $ 970 G. Less Allowable Dividend Deduction (32) (96) (127) ------- ------- ------- H. Net Subject to Gross-up 210 631 843 I. Ratio of Earnings before Income Taxes to Net Income (C/A) 1.987 1.763 1.746 ------- ------- ------- J. Preferred Dividend (Pre-tax) (H x I) 417 1,112 1,472 K. Plus Allowable Dividend Deduction 32 96 127 ------- ------- ------- L. Preferred Dividend Factor 449 1,208 1,599 ======= ======= ======= M. Ratio of Earnings to Fixed Charges (E/D) 2.99 4.63 4.55 ======= ======= ======= Year Ended December 31, ----------------------------------------------------------------- (1) 2003 2002 2001 2000 1999 ------- ------- ------- -------- -------- Earnings: ($000) A. Net Income from Continuing Operations (2) $43,985 $41,281 $50,835 $ 50,973 $ 48,573 B. Federal and State Income Tax 30,435 22,294 (3,338) 38,215 28,925 ------- ------- ------- -------- -------- C. Earnings before Income Taxes $74,420 $63,575 $47,497 $ 89,188 $ 77,498 ======= ======= ======= ======== ======== D. Fixed Charges Interest on Mortgage Bonds 570 2,136 5,211 11,342 13,057 Interest on Other Long-Term Debt 10,699 9,819 10,446 12,864 11,094 Other Interest 9,828 (3) 11,659 12,837 9,303 5,640 Interest Portion of Rents 1,040 749 801 962 993 Amortization of Premium & Expense on Debt 1,159 1,249 1,350 1,170 993 Preferred Stock Dividends of Central Hudson 2,259 3,259 3,026 5,556 5,078 ------- ------- ------- -------- -------- Total Fixed Charges $25,555 $28,871 $33,671 $ 41,197 $ 36,855 ======= ======= ======= ======== ======== E. Total Earnings $99,975 $92,446 $81,168 $130,385 $114,353 ======= ======= ======= ======== ======== Preferred Dividend Requirements: F. Allowance for Preferred Stock Dividends Under IRC Sec 247 $ 1,387 (3) $ 2,161 $ 3,230 $ 3,230 $ 3,230 G. Less Allowable Dividend Deduction (127) (127) (127) (127) (127) ------- ------- ------- -------- -------- H. Net Subject to Gross-up 1,260 2,034 3,103 3,103 3,103 I. Ratio of Earnings before Income Taxes to Net Income (C/A) 1.692 1.540 0.934 1.750 1.595 ------- ------- ------- -------- -------- J. Preferred Dividend (Pre-tax) (H x I) 2,132 3,132 2,899 5,429 4,951 K. Plus Allowable Dividend Deduction 127 127 127 127 127 ------- ------- ------- -------- -------- L. Preferred Dividend Factor 2,259 3,259 3,026 5,556 5,078 ======= ======= ======= ======== ======== M. Ratio of Earnings to Fixed Charges (E/D) 3.91 3.20 2.41 3.16 3.10 ======= ======= ======= ======== ======== (1) The reduction in the ratio reflects the net effect of regulatory actions in 2001 associated with the sale of Central Hudson's interests in its major generating assets, including the recording of a significant amount of federal investment income tax credits. (2) Net Income includes preferred stock dividends of Central Hudson. (3) Reflects SFAS 150, entitled Accounting for Certain Financial Instruments wth Characteristics of both Liabilities and Equity,reclassification of $208,750 in preferred stock dividends to interest expense for the quarter ended September 30, 2003.