EX-12.B 6 k48861exv12wb.htm EX-12.B exv12wb
Exhibit (12)(b)
 
CONSUMERS ENERGY COMPANY
 
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
 
                                         
          Year Ended December 31        
    2009     2008     2007     2006     2005  
                            (b)  
 
Earnings as defined(a)
                                       
Pretax income from continuing operations
  $ 456     $ 562     $ 437     $ 167     $ (590 )
Exclude equity basis subsidiaries
    —       —       —       (1 )     (1 )
Fixed charges as defined
    313       276       293       307       316  
                                         
Earnings as defined
  $ 769     $ 838     $ 730     $ 473     $ (275 )
                                         
Fixed charges as defined(a)
                                       
Interest on long-term debt
  $ 250     $ 229     $ 236     $ 286     $ 305  
Estimated interest portion of lease rental
    17       25       23       8       6  
Other interest charges
    46       22       34       13       5  
                                         
Fixed charges as defined
  $ 313     $ 276     $ 293     $ 307     $ 316  
Preferred dividends
    3       3       3       3       3  
                                         
Combined fixed charges and preferred dividends
  $ 316     $ 279     $ 296     $ 310     $ 319  
                                         
Ratio of earnings to fixed charges
    2.46       3.04       2.49       1.54       —  
                                         
Ratio of earnings to combined fixed
                                       
charges and preferred dividends
    2.43       3.00       2.47       1.53       —  
                                         
 
NOTES:
 
(a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.
 
(b) For the year ended December 31, 2005, fixed charges exceeded earnings by $591 million and combined fixed charges and preferred dividends exceeded earnings by $594 million. Earnings as defined include $1.184 billion of asset impairment charges.