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
2006 2005
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3 Months 12 Months 3 Months
Ended Ended Ended
March 31 March 31 March 31
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Earnings: ($000)
A. Net Income $ 13,053 $ 33,698 $ 14,990
B. Federal & State Income Tax 9,578 23,182 10,330
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C. Earnings before Income Taxes $ 22,631 $ 56,880 $ 25,320
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D. Fixed Charges
Interest on Mortgage Bonds 0 0 0
Interest on Other Long-Term Debt 3,953 14,533 3,247
Other Interest 897 2,634 840
Interest Portion of Rents 208 809 233
Amortization of Premium & Expense on Debt 245 1,024 264
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Total Fixed Charges $ 5,303 $ 19,000 $ 4,584
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E. Total Earnings $ 27,934 $ 75,880 $ 29,904
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 242 $ 970 $ 242
G. Less Allowable Dividend Deduction (32) (127) (32)
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H. Net Subject to Gross-up 210 843 210
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.734 1.688 1.689
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J. Pref. Dividend (Pre-tax) (H x I) 364 1,423 355
K. Plus Allowable Dividend Deduction 32 127 32
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L. Preferred Dividend Factor 396 1,550 387
M. Fixed Charges (D) 5,303 19,000 4,584
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N. Total Fixed Charges and Preferred Dividends $ 5,699 $ 20,550 $ 4,971
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O. Ratio of Earnings to Fixed Charges (E/D) 5.27 3.99 6.52
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 4.90 3.69 6.02
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Year Ended December 31,
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(1)
2005 2004 2003 2002 2001
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Earnings: ($000)
A. Net Income $ 35,635 $ 38,648 $ 38,875 $ 32,524 $ 44,178
B. Federal & State Income Tax 23,936 28,426 26,981 21,690 (7,637)
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C. Earnings before Income Taxes $ 59,571 $ 67,074 $ 65,856 $ 54,214 $ 36,541
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D. Fixed Charges
Interest on Mortgage Bonds 0 0 570 2,136 5,211
Interest on Other Long-Term Debt 13,826 11,488 10,699 9,819 10,446
Other Interest 2,577 5,517 9,828(2) 11,772 11,820
Interest Portion of Rents 835 954 768 749 801
Amortization of Premium & Expense on Debt 1,043 1,066 1,159 1,249 1,350
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Total Fixed Charges $ 18,281 $ 19,025 $ 23,024 $ 25,725 $ 29,628
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E. Total Earnings $ 77,852 $ 86,099 $ 88,880 $ 79,939 $ 66,169
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Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 970 $ 970 $ 1,387(2) $ 2,161 $ 3,230
G. Less Allowable Dividend Deduction (127) (127) (127) (127) (127)
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H. Net Subject to Gross-up 843 843 1,260 2,034 3,103
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.672 1.736 1.694 1.667 0.827
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J. Pref. Dividend (Pre-tax) (H x I) 1,409 1,463 2,134 3,391 2,566
K. Plus Allowable Dividend Deduction 127 127 127 127 127
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L. Preferred Dividend Factor 1,536 1,590 2,261 3,518 2,693
M. Fixed Charges (D) 18,281 19,025 23,024 25,725 29,628
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N. Total Fixed Charges and Preferred Dividends $ 19,817 $ 20,615 $ 25,285 $ 29,243 $ 32,321
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O. Ratio of Earnings to Fixed Charges (E/D) 4.26 4.53 3.86 3.11 2.23
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P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 3.93 4.18 3.52 2.73 2.05
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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 No. 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.