EX-12 11 k79965exv12.txt STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS . . . Exhibit (12) CONSUMERS ENERGY COMPANY Ratio of Earnings to Fixed Charges (Millions of Dollars)
Nine Months Ended Year Ended September 30, December 31, -------------- ------------ Pro Forma 2003 2002 2002 2001 2000 1999 1998 ------- ----- ---- ---- ---- ---- ---- (b) (c) (d) (e) Earnings as defined (a) Consolidated net income $ 206 $ 344 $ 363 $ 199 $ 284 $ 340 $ 306 Income taxes 126 170 180 97 137 172 135 Exclude equity basis subsidiaries (31) (38) (38) (30) (47) (40) (38) Include dividends received 45 Fixed charges as defined, adjusted to exclude capitalized interest of $7, $12, $12, $6, $2, $- and $1 million for the nine months ended September, 2003 and the years ended December 31, Pro Forma 2002, 2002, 2001, 2000, 1999 and 1998 respectively 152 207 178 197 194 192 185 --------------------------------------------------------------------- Earnings as defined $ 498 $ 683 $ 683 $ 463 $ 568 $ 664 $ 588 ===================================================================== Fixed charges as defined (a) Interest on long-term debt $ 144 $ 182 $ 153 $ 151 $ 141 $ 140 $ 138 Estimated interest portion of lease rental 5 10 10 11 11 11 10 Other interest charges 10 27 27 41 44 41 38 Preferred securities dividends and distributions 35 47 47 44 37 30 47 --------------------------------------------------------------------- Fixed charges as defined $ 194 $ 266 $ 237 $ 247 $ 233 $ 222 $ 233 ===================================================================== Ratio of earnings to fixed charges 2.57 2.57 2.88 1.87 2.44 2.99 2.52 =====================================================================
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) The pro forma calculation assumes the new bonds were all issued on January 1, 2002 and the related net proceeds were applied as described under "Use of Proceeds" in the prospectus. (c) Excludes a cumulative effect of change-in-accounting after-tax gain of $18 million; if included, ratio would be unchanged, since the change-in-accounting resulted from the equity based subsidiary MCV Partnership. The total net income of equity based subsidiaries are excluded from determining earnings as defined. (d) Excludes a cumulative effect of change-in-accounting after-tax loss of $11 million; if included, ratio would be 1.81. (e) Excludes a cumulative effect of change-in-accounting after-tax gain of $43 million; if included, ratio would be 2.81.