EX-12 2 c47975_ex12.txt Exhibit 12 CH ENERGY GROUP, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 (I)
2007 2006 --------------------------- --------- 3 Months 12 Months 3 Months Ended Ended Ended March 31 March 31 March 31 Earnings: ($000) A. Net Income from Continuing Operations $21,698 $46,482 $18,300 B. Preferred Stock Dividends 242 970 243 C. Federal and State Income Tax 12,963 23,973 12,759 Less Income from Equity Investments 1,195 2,815 190 Plus Cash Distribution from Equity Investments 1,271 2,236 40 ------- ------- ------- D. Earnings before Income Taxes and Equity Inv. $34,979 $70,846 $31,152 ======= ======= ======= E. Fixed Charges Interest on Mortgage Bonds 0 0 0 Interest on Other Long-Term Debt 4,492 16,964 3,953 Other Interest 992 3,718 897 Interest Portion of Rents (2) 303 1,141 274 Amortization of Premium & Expense on Debt 245 990 245 Preferred Stock Dividends Requirements of Central Hudson 367 1,386 385 ------- ------- ------- Total Fixed Charges $6,399 $24,199 $5,754 ======= ======= ======= Less Preferred Stock Dividends Requirements of Central Hudson 367 1,386 385 ------- ------- ------- F. Total Earnings $41,011 $93,659 $36,521 ======= ======= ======= Preferred Dividend Requirements: G. Allowance for Preferred Stock Dividends Under IRC Sec 247 $242 $970 $242 H. Less Allowable Dividend Deduction (32) (127) (32) ------- ------- ------- I. Net Subject to Gross-up 210 843 210 J. Ratio of Earnings before Income Taxes and Equity Inv. to Net Income (D/(A+B)) 1.594 1.493 1.680 ------- ------- ------- K. Preferred Dividend (Pre-tax) (I x J) 335 1,259 353 L. Plus Allowable Dividend Deduction 32 127 32 ------- ------- ------- M. Preferred Dividend Factor 367 1,386 385 ======= ======= ======= N. Ratio of Earnings to Fixed Charges (F/E) 6.4 3.9 6.3 ======= ======= ======= Year Ended December 31, ------------------------------------------------------------------ 2006 2005 2004 2003 2002 --------- -------- -------- -------- -------- Earnings: ($000) A. Net Income from Continuing Operations $ 43,084 $ 44,291 $ 42,423 $ 43,985 $ 36,453 B. Preferred Stock Dividends 970 970 970 1,387 2,161 C. Federal and State Income Tax 23,769 25,819 31,256 30,435 22,294 Less Income from Equity Investments 1,810 1,456 922 865 749 Plus Cash Distribution from Equity Investments 1,005 1,833 1,776 1,249 959 --------- -------- -------- -------- -------- D. Earnings before Income Taxes and Equity Inv. $ 67,018 $ 71,457 $ 75,503 $ 76,191 $ 61,118 ========= ======== ======== ======== ======== E. Fixed Charges Interest on Mortgage Bonds 0 0 0 570 2,136 Interest on Other Long-Term Debt 16,425 13,826 11,488 10,699 9,819 Other Interest 3,622 2,577 5,517 9,828(1) 11,659 Interest Portion of Rents (2) 1,112 1,077 1,192 1,040 749 Amortization of Premium & Expense on Debt 991 1,043 1,066 1,159 1,249 Preferred Stock Dividends Requirements of Central Hudson 1,409 1,458 1,594 2,243 3,346 --------- -------- -------- -------- -------- Total Fixed Charges $ 23,559 $ 19,981 $ 20,857 $ 25,539 $ 28,958 ========= ======== ======== ======== ======== Less Preferred Stock Dividends Requirements of Central Hudson 1,409 1,458 1,594 2,243 3,346 --------- -------- -------- -------- -------- F. Total Earnings $ 89,168 $ 89,980 $ 94,766 $ 99,487 $ 86,730 ========= ======== ======== ======== ======== Preferred Dividend Requirements: G. Allowance for Preferred Stock Dividends Under IRC Sec 247 $ 970 $ 970 $ 970 $ 1,387(1) $ 2,161 H. Less Allowable Dividend Deduction (127) (127) (127) (127) (127 --------- -------- -------- -------- -------- I. Net Subject to Gross-up 843 843 843 1,260 2,034 J. Ratio of Earnings before Income Taxes and Equity Inv. to Net Income (D/(A+B)) 1.521 1.579 1.740 1.679 1.583 --------- -------- -------- -------- -------- K. Preferred Dividend (Pre-tax) (I x J) 1,282 1,331 1,467 2,116 3,219 L. Plus Allowable Dividend Deduction 127 127 127 127 127 --------- -------- -------- -------- -------- M. Preferred Dividend Factor 1,409 1,458 1,594 2,243 3,346 ========= ======== ======== ======== ======== N. Ratio of Earnings to Fixed Charges (F/E) 3.8 4.5 4.5 3.9 3.0 ========= ======== ======== ======== ========
(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. CENTRAL HUDSON GAS & ELECTRIC CORPORATION EXHIBIT (12) (i) (i) COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
2007 2006 ------------------------------- ----------- 3 Months 12 Months 3 Months Ended Ended Ended March 31 March 31 March 31 -------- ---------- ---------- Earnings: ($000) A. Net Income $13,371 $35,189 $13,053 B. Federal & State Income Tax 8,428 20,378 9,578 ------- ------- ------- C. Earnings before Income Taxes $21,799 $55,567 $22,631 ======= ======= ======= D. Fixed Charges Interest on Mortgage Bonds 0 0 0 Interest on Other Long-Term Debt 4,492 16,964 3,953 Other Interest 992 3,717 897 Interest Portion of Rents (2) 220 831 208 Amortization of Premium & Expense on Debt 245 990 245 ------- ------- ------- Total Fixed Charges $5,949 $22,502 $5,303 ======= ======= ======= E. Total Earnings $27,748 $78,069 $27,934 ======= ======= ======= Preferred Dividend Requirements: F. Allowance for Preferred Stock Dividends Under IRC Sec 247 $242 $970 $242 G. Less Allowable Dividend Deduction (32) (127) (32) ------- ------- ------- H. Net Subject to Gross-up 210 843 210 I. Ratio of Earnings before Income Taxes to Net Income (C/A) 1.630 1.579 1.734 ------- ------- ------- J. Pref. Dividend (Pre-tax) (H x I) 342 1,331 364 K. Plus Allowable Dividend Deduction 32 127 32 ------- ------- ------- L. Preferred Dividend Factor 374 1,458 396 M. Fixed Charges (D) 5,949 22,502 5,303 ------- ------- ------- N. Total Fixed Charges and Preferred Dividends $6,323 $23,960 $5,699 ======= ======= ======= O. Ratio of Earnings to Fixed Charges (E/D) 4.7 3.5 5.3 ======= ======= ======= P. Ratio of Earnings to Fixed Charges and Preferred Dividends (E/N) 4.4 3.3 4.9 ======= ======= =======
Year Ended December 31, ----------------------------------------------------------------- 2006 2005 2004 2003 2002 -------- -------- -------- -------- -------- Earnings: ($000) A. Net Income $34,871 $35,635 $38,648 $38,875 $32,524 B. Federal & State Income Tax 21,528 23,936 28,426 26,981 21,690 -------- -------- -------- -------- -------- C. Earnings before Income Taxes $56,399 $59,571 $67,074 $65,856 $54,214 ======== ======== ======== ======== ======== D. Fixed Charges Interest on Mortgage Bonds 0 0 0 570 2,136 Interest on Other Long-Term Debt 16,425 13,826 11,488 10,699 9,819 Other Interest 3,622 2,577 5,517 9,828 (1) 11,772 Interest Portion of Rents (2) 818 835 954 768 749 Amortization of Premium & Expense on Debt 991 1,043 1,066 1,159 1,249 -------- -------- -------- -------- -------- Total Fixed Charges $21,856 $18,281 $19,025 $23,024 $25,725 ======== ======== ======== ======== ======== E. Total Earnings $78,255 $77,852 $86,099 $88,880 $79,939 ======== ======== ======== ======== ======== Preferred Dividend Requirements: F. Allowance for Preferred Stock Dividends Under IRC Sec 247 $970 $970 $970 $1,387 (1) $2,161 G. Less Allowable Dividend Deduction (127) (127) (127) (127) (127) -------- -------- -------- -------- -------- H. Net Subject to Gross-up 843 843 843 1,260 2,034 I. Ratio of Earnings before Income Taxes to Net Income (C/A) 1.617 1.672 1.736 1.694 1.667 -------- -------- -------- -------- -------- J. Pref. Dividend (Pre-tax) (H x I) 1,363 1,409 1,463 2,134 3,391 K. Plus Allowable Dividend Deduction 127 127 127 127 127 -------- -------- -------- -------- -------- L. Preferred Dividend Factor 1,490 1,536 1,590 2,261 3,518 M. Fixed Charges (D) 21,856 18,281 19,025 23,024 25,725 -------- -------- -------- -------- -------- N. Total Fixed Charges and Preferred Dividends $23,346 $19,817 $20,615 $25,285 $29,243 ======== ======== ======== ======== ======== O. Ratio of Earnings to Fixed Charges (E/D) 3.6 4.3 4.5 3.9 3.1 ======== ======== ======== ======== ======== P. Ratio of Earnings to Fixed Charges and Preferred Dividends (E/N) 3.4 3.9 4.2 3.5 2.7 ======== ======== ======== ======== ========
(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.