EX-12 2 d68852_ex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT (12)(i) CH ENERGY GROUP, INC. Computation of Ratio of Earnings to Fixed Charges
2006 2005 ------------------------------------- ----------------------- 3 Months 6 Months 12 Months 3 Months 6 Months Ended Ended Ended Ended Ended June 30 June 30 June 30 June 30 June 30 --------- --------- --------- --------- --------- Earnings: ($000) A. Net Income from Continuing Operations $ 4,068 $ 22,368 $ 39,786 $ 6,533 $ 26,873 B. Preferred Stock Dividends $ 242 $ 485 $ 970 $ 242 $ 485 C. Federal and State Income Tax 2,099 14,858 25,052 1,853 15,625 Less Income from Equity Investments 801 947 1,939 152 492 Plus Cash Distribution from Equity Investments 0 0 1,747 54 86 --------- --------- --------- --------- --------- D. Earnings before Income Taxes and Equity Inv $ 5,608 $ 36,764 $ 65,616 $ 8,530 $ 42,577 ========= ========= ========= ========= ========= E Fixed Charges Interest on Mortgage Bonds 0 0 0 0 0 Interest on Other Long-Term Debt 4,071 8,024 15,084 3,519 6,766 Other Interest 847 1,743 3,363 117 957 Interest Portion of Rents (2) 253 527 1,058 249 535 Amortization of Premium & Expense on Debt 245 490 1,005 264 528 Preferred Stock Dividends Requirements of Central Hudson 305 741 1,484 296 719 --------- --------- --------- --------- --------- Total Fixed Charges $ 5,721 $ 11,525 $ 21,994 $ 4,445 $ 9,505 ========= ========= ========= ========= ========= Less Preferred Stock Dividends Requirements of Central Hudson 305 741 1,484 296 719 F Total Earnings $ 11,024 $ 47,548 $ 86,126 $ 12,679 $ 51,363 ========= ========= ========= ========= ========= Preferred Dividend Requirements: G. Allowance for Preferred Stock Dividends Under IRC Sec 247 $ 242 $ 485 $ 970 $ 242 $ 485 H. Less Allowable Dividend Deduction (32) (64) (127) (32) (64) --------- --------- --------- --------- --------- I. Net Subject to Gross-up 210 421 843 210 421 J. Ratio of Earnings before Income Taxes and Equity Inv. to Net Income (D/(A+B)) 1.301 1.609 1.610 1.259 1.556 --------- --------- --------- --------- --------- K. Preferred Dividend (Pre-tax) (I x J) 273 677 1,357 264 655 L. Plus Allowable Dividend Deduction 32 64 127 32 64 --------- --------- --------- --------- --------- M. Preferred Dividend Factor 305 741 1,484 296 719 ========= ========= ========= ========= ========= N. Ratio of Earnings to Fixed Charges (F/E) 1.9 4.1 3.9 2.9 5.4 ========= ========= ========= ========= ========= 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. 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 6 Months 12 Months 3 Months 6 Months Ended Ended Ended Ended Ended June 30 June 30 June 30 June 30 June 30 --------- --------- --------- --------- --------- Earnings: ($000) A. Net Income $ 4,123 $ 17,177 $ 31,710 $ 6,112 $ 21,102 B. Federal & State Income Tax 2,979 12,556 22,224 3,938 14,268 --------- --------- --------- --------- --------- C. Earnings before Income Taxes $ 7,102 $ 29,733 $ 53,934 $ 10,050 $ 35,370 ========= ========= ========= ========= ========= D. Fixed Charges Interest on Mortgage Bonds 0 0 0 0 0 Interest on Other Long-Term Debt 4,071 8,024 15,084 3,519 6,766 Other Interest 846 1,743 3,363 117 957 Interest Portion of Rents 184 392 798 196 429 Amortization of Premium & Expense on Debt 245 490 1,005 264 528 --------- --------- --------- --------- --------- Total Fixed Charges $ 5,346 $ 10,649 $ 20,250 $ 4,096 $ 8,680 ========= ========= ========= ========= ========= E. Total Earnings $ 12,448 $ 40,382 $ 74,184 $ 14,146 $ 44,050 ========= ========= ========= ========= ========= Preferred Dividend Requirements: F. Allowance for Preferred Stock Dividends Under IRC Sec 247 $ 242 $ 485 $ 970 $ 242 $ 485 G. Less Allowable Dividend Deduction (32) (64) (127) (32) (64) --------- --------- --------- --------- --------- H. Net Subject to Gross-up 210 421 843 210 421 I. Ratio of Earnings before Income Taxes to Net Income (C/A) 1.723 1.731 1.701 1.644 1.676 --------- --------- --------- --------- --------- J. Pref. Dividend (Pre-tax) (H x I) 362 729 1,434 345 706 K. Plus Allowable Dividend Deduction 32 64 127 32 64 --------- --------- --------- --------- --------- L. Preferred Dividend Factor 394 793 1,561 377 770 M. Fixed Charges (D) 5,346 10,649 20,250 4,096 8,680 --------- --------- --------- --------- --------- N. Total Fixed Charges and Preferred Dividends $ 5,740 $ 11,442 $ 21,811 $ 4,473 $ 9,450 ========= ========= ========= ========= ========= O. Ratio of Earnings to Fixed Charges (E/D) 2.3 3.8 3.7 3.5 5.1 ========= ========= ========= ========= ========= P. Ratio of Earnings to Fixed Charges and Preferred Dividends (E/N) 2.2 3.5 3.4 3.2 4.7 ========= ========= ========= ========= ========= 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 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.