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
2004
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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 $ 7,567 $31,017 $40,616
B. Federal & State Income Tax 6,158 23,419 30,268
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C. Earnings before Income Taxes $13,725 $54,436 $70,884
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D. Fixed Charges
Interest on Mortgage Bonds 0 0 0
Interest on Other Long-Term Debt 2,696 8,436 11,285
Other Interest 802 4,678 6,732
Interest Portion of Rents 195 747 953
Amortization of Premium & Expense on Debt 263 810 1,071
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Total Fixed Charges $ 3,956 $14,671 $20,041
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E. Total Earnings $17,681 $69,107 $90,925
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 242 $ 728 $ 970
G. Less Allowable Dividend Deduction (32) (96) (127)
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H. Net Subject to Gross-up 210 632 843
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.814 1.755 1.745
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J. Pref. Dividend (Pre-tax) (H x L) 381 1,109 1,471
K. Plus Allowable Dividend Deduction 32 96 127
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L. Preferred Dividend Factor 413 1,205 1,598
M. Fixed Charges (D) 3,956 14,671 20,041
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N. Total Fixed Charges and Preferred Dividends $ 4,369 $15,876 $21,639
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O. Ratio of Earnings to Fixed Charges (E/D) 4.47 4.71 4.54
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 4.05 4.35 4.20
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Year Ended December 31,
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(1)
2003 2002 2001 2000 1999
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Earnings: ($000)
A. Net Income $38,875 $32,524 $44,178 $ 52,595 $ 51,881
B. Federal & State Income Tax 26,981 21,690 (7,637) 37,150 28,144
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C. Earnings before Income Taxes $65,856 $54,214 $36,541 $ 89,745 $ 80,025
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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 (2) 11,772 11,820 6,251 4,860
Interest Portion of Rents 768 749 801 962 993
Amortization of Premium & Expense on Debt 1,159 1,249 1,350 1,170 993
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Total Fixed Charges $23,024 $25,725 $29,628 $ 32,589 $ 30,997
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E. Total Earnings $88,880 $79,939 $66,169 $122,334 $111,022
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 1,387 (2) $ 2,161 $ 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 1,260 2,034 3,103 3,103 3,103
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.694 1.667 0.827 1.706 1.542
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J. Pref. Dividend (Pre-tax) (H x L) 2,134 3,391 2,566 5,294 4,785
K. Plus Allowable Dividend Deduction 127 127 127 127 127
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L. Preferred Dividend Factor 2,261 3,518 2,693 5,421 4,912
M. Fixed Charges (D) 23,024 25,725 29,628 32,589 30,997
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N. Total Fixed Charges and Preferred Dividends $25,285 $29,243 $32,321 $ 38,010 $ 35,909
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O. Ratio of Earnings to Fixed Charges (E/D) 3.86 3.11 2.23 3.75 3.58
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 3.52 2.73 2.05 3.22 3.09
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(1) The reduction in the ratios 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) Reflects SFAS 150, entitled Accounting for Certain Financial Instruments
with Characteristics of both Liabilities and Equity, reclassification of
$208,750 in preferred stock dividends to interest expense for the quarter
ended September 30, 2003.