EXHIBIT (12)(i)
CH ENERGY GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
2006 2005
---------------------------------- ---------------------
3 Months 9 Months 12 Months 3 Months 9 Months
Ended Ended Ended Ended Ended
Sept 30 Sept 30 Sept 30 Sept 30 Sept 30
-------- -------- -------- -------- --------
Earnings: ($000)
A. Net Income from Continuing Operations $ 10,970 $ 33,338 $ 45,010 $ 5,746 $ 32,619
B. Preferred Stock Dividends $ 242 $ 727 $ 970 $ 242 $ 727
C. Federal and State Income Tax 4,392 19,250 27,081 2,364 17,988
Less Income from Equity Investments 327 1,273 2,260 5 497
Plus Cash Distribution from Equity Investments 734 774 2,296 157 311
-------- -------- -------- -------- --------
D. Earnings before Income Taxes and Equity Inv $ 16,011 $ 52,816 $ 73,097 $ 8,504 $ 51,148
======== ======== ======== ======== ========
E Fixed Charges
Interest on Mortgage Bonds 0 0 0 0 0
Interest on Other Long-Term Debt 4,115 12,139 15,778 3,421 10,187
Other Interest 1,105 2,848 3,674 795 1,751
Interest Portion of Rents (2) 271 798 1,058 250 796
Amortization of Premium & Expense on Debt 245 735 985 263 793
Preferred Stock Dividends Requirements
of Central Hudson 332 1,074 1,467 330 1,064
-------- -------- -------- -------- --------
Total Fixed Charges $ 6,068 $ 17,594 $ 22,962 $ 5,059 $ 14,591
======== ======== ======== ======== ========
Less Preferred Stock Dividends Requirements
of Central Hudson 332 1,074 1,467 330 1,064
F Total Earnings $ 21,747 $ 69,336 $ 94,592 $ 13,233 $ 64,675
======== ======== ======== ======== ========
Preferred Dividend Requirements:
G. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 242 $ 727 $ 970 $ 242 $ 727
H. Less Allowable Dividend Deduction (32) (96) (127) (32) (96)
-------- -------- -------- -------- --------
I. Net Subject to Gross-up 210 631 843 210 631
J. Ratio of Earnings before Income
Taxes and Equity Inv. to Net Income (D/(A+B)) 1.428 1.550 1.590 1.420 1.534
-------- -------- -------- -------- --------
K. Preferred Dividend (Pre-tax) (I x J) 300 978 1,340 298 968
L. Plus Allowable Dividend Deduction 32 96 127 32 96
-------- -------- -------- -------- --------
M. Preferred Dividend Factor 332 1,074 1,467 330 1,064
======== ======== ======== ======== ========
N. Ratio of Earnings to Fixed Charges (F/E) 3.6 3.9 4.1 2.6 4.4
======== ======== ======== ======== ========
Year Ended December 31,
---------------------------------------------------------------
2005 2004 2003 2002 2001
-------- -------- -------- -------- --------
Earnings: ($000)
A. Net Income from Continuing Operations $ 44,291 $ 42,423 $43,985 $ 36,453 $ 50,835
B. Preferred Stock Dividends $ 970 $ 970 $ 1,387 $ 2,161 $ 3,230
C. Federal and State Income Tax 25,819 31,256 30,435 22,294 (3,338)
Less Income from Equity Investments 1,484 922 865 749 1,922
Plus Cash Distribution from Equity Investments 1,833 1,776 1,249 959 3,934
-------- -------- -------- -------- --------
D. Earnings before Income Taxes and Equity Inv $ 71,429 $ 75,503 $ 76,191 $ 61,118 $ 52,739
======== ======== ======== ======== ========
E 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(1) 11,659 12,837
Interest Portion of Rents (2) 1,077 1,192 1,040 749 801
Amortization of Premium & Expense on Debt 1,043 1,066 1,159 1,249 1,350
Preferred Stock Dividends Requirements
of Central Hudson 1,457 1,594 2,243 3,346 3,154
-------- -------- -------- -------- --------
Total Fixed Charges $ 19,980 $ 20,857 $25,539 $ 28,958 $ 33,799
======== ======== ======== ======== ========
Less Preferred Stock Dividends Requirements
of Central Hudson 1,457 1,594 2,243 3,346 3,154
F Total Earnings $ 89,952 $ 94,766 $99,487 $ 86,730 $ 83,384
======== ======== ======== ======== ========
Preferred Dividend Requirements:
G. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 970 $ 970 $ 1,387(1) $ 2,161 $ 3,230
H. Less Allowable Dividend Deduction (127) (127) (127) (127) (127)
-------- -------- -------- -------- --------
I. Net Subject to Gross-up 843 843 1,260 2,034 3,103
J. Ratio of Earnings before Income
Taxes and Equity Inv. to Net Income (D/(A+B)) 1.578 1.740 1.679 1.583 0.975
-------- -------- -------- -------- --------
K. Preferred Dividend (Pre-tax) (I x J) 1,330 1,467 2,116 3,219 3,027
L. Plus Allowable Dividend Deduction 127 127 127 127 127
-------- -------- -------- -------- --------
M. Preferred Dividend Factor 1,457 1,594 2,243 3,346 3,154
======== ======== ======== ======== ========
N. Ratio of Earnings to Fixed Charges (F/E) 4.5 4.5 3.9 3.0 2.5
======== ======== ======== ======== ========
(1) Reflects SFAS No. 150, titled 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.
(2) The percentage of rent included in the fixed charges calculation is a
reasonable approximation of the interest factor.
79
Exhibit (12) (i) (i)
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Computation of Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Dividends
2006 2005
---------------------------------- ---------------------
3 Months 9 Months 12 Months 3 Months 9 Months
Ended Ended Ended Ended Ended
Sept 30 Sept 30 Sept 30 Sept 30 Sept 30
-------- -------- -------- -------- --------
Earnings: ($000)
A. Net Income $ 10,773 $ 27,951 $ 35,598 $ 6,885 $ 27,988
B. Federal & State Income Tax 5,534 18,090 23,275 4,484 18,751
-------- -------- -------- -------- --------
C. Earnings before Income Taxes $ 16,307 $ 46,041 $ 58,873 $ 11,369 $ 46,739
======== ======== ======== ======== ========
D. Fixed Charges
Interest on Mortgage Bonds 0 0 0 0 0
Interest on Other Long-Term Debt 4,115 12,139 15,778 3,421 10,187
Other Interest 1,105 2,848 3,673 794 1,752
Interest Portion of Rents (2) 192 584 798 192 621
Amortization of Premium & Expense on Debt 245 735 986 264 792
-------- -------- -------- -------- --------
Total Fixed Charges $ 5,657 $ 16,306 $ 21,235 $ 4,671 $ 13,352
======== ======== ======== ======== ========
E. Total Earnings $ 21,964 $ 62,347 $ 80,108 $ 16,040 $ 60,091
======== ======== ======== ======== ========
Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 242 $ 727 $ 970 $ 242 $ 727
G. Less Allowable Dividend Deduction (32) (96) (127) (32) (96)
-------- -------- -------- -------- --------
H. Net Subject to Gross-up 210 631 843 210 631
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.514 1.647 1.654 1.651 1.670
-------- -------- -------- -------- --------
J. Pref. Dividend (Pre-tax) (H x I) 318 1,039 1,394 347 1,054
K. Plus Allowable Dividend Deduction 32 96 127 32 96
-------- -------- -------- -------- --------
L. Preferred Dividend Factor 350 1,135 1,521 379 1,150
M. Fixed Charges (D) 5,657 16,306 21,235 4,671 13,352
-------- -------- -------- -------- --------
N. Total Fixed Charges and Preferred Dividends $ 6,007 $ 17,441 $ 22,756 $ 5,050 $ 14,502
======== ======== ======== ======== ========
O. Ratio of Earnings to Fixed Charges (E/D) 3.9 3.8 3.8 3.4 4.5
======== ======== ======== ======== ========
P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 3.7 3.6 3.5 3.2 4.1
======== ======== ======== ======== ========
Year Ended December 31,
------------------------------------------------------------
2005 2004 2003 2002 2001
-------- -------- -------- -------- --------
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)
-------- -------- -------- -------- --------
C. Earnings before Income Taxes $ 59,571 $ 67,074 $ 65,856 $ 54,214 $ 36,541
======== ======== ======== ======== ========
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 (1) 11,772 11,820
Interest Portion of Rents (2) 835 954 768 749 801
Amortization of Premium & Expense on Debt 1,043 1,066 1,159 1,249 1,350
-------- -------- -------- -------- --------
Total Fixed Charges $ 18,281 $ 19,025 $ 23,024 $ 25,725 $ 29,628
======== ======== ======== ======== ========
E. Total Earnings $ 77,852 $ 86,099 $ 88,880 $ 79,939 $ 66,169
======== ======== ======== ======== ========
Preferred Dividend Requirements:
F. Allowance for Preferred Stock Dividends
Under IRC Sec 247 $ 970 $ 970 $1,387 (1) $ 2,161 $ 3,230
G. Less Allowable Dividend Deduction (127) (127) (127) (127) (127)
-------- -------- -------- -------- --------
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
-------- -------- -------- -------- --------
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
-------- -------- -------- -------- --------
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
-------- -------- -------- -------- --------
N. Total Fixed Charges and Preferred Dividends $ 19,817 $ 20,615 $ 25,285 $ 29,243 $ 32,321
======== ======== ======== ======== ========
O. Ratio of Earnings to Fixed Charges (E/D) 4.3 4.5 3.9 3.1 2.2
======== ======== ======== ======== ========
P. Ratio of Earnings to Fixed Charges and
Preferred Dividends (E/N) 3.9 4.2 3.5 2.7 2.1
======== ======== ======== ======== ========
(1) Reflects SFAS No. 150, titled 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.
(2) The percentage of rent included in the fixed charges calculation is a
reasonable approximation of the interest factor.
80