EX-12.1 4 k50057exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
                                                     
            Year Ended December 31        
    2010     2009     2008     2007     2006  
                            (b)     (c)  
 
Earnings as defined (a)
                                       
Pretax income from continuing operations
  $ 590     $ 335     $ 440     $ (317 )   $ (434 )
Exclude equity basis subsidiaries
    (2 )     2       (1 )     (22 )     (14 )
Fixed charges as defined (d)
    449       456       429       489       535  
 
                             
Earnings as defined (d)
  $ 1,037     $ 793     $ 868     $ 150     $ 87  
 
                             
Fixed charges as defined (a)
                                       
Interest on long-term debt
  $ 394     $ 383     $ 371     $ 415     $ 492  
Estimated interest portion of lease rental
    16       17       25       23       8  
Other interest charges
    42       58       35       53       37  
 
                             
Fixed charges as defined (d)
  $ 452     $ 458     $ 431     $ 491     $ 537  
Preferred dividends
    13       17       17       12       11  
 
                             
Combined fixed charges and preferred dividends
  $ 465     $ 475     $ 448     $ 503     $ 548  
 
                             
Ratio of earnings to fixed charges
    2.29       1.73       2.01              
Ratio of earnings to combined fixed
                                       
charges and preferred dividends
    2.23       1.67       1.94              
NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.
(b) For the year ended December 31, 2007, fixed charges exceeded earnings by $341 million and combined fixed charges and preferred dividends exceeded earnings by $353 million. Earnings as defined include $204 million in asset impairment charges and a $279 million charge for an electric sales contract termination.
(c) For the year ended December 31, 2006, fixed charges exceeded earnings by $450 million and combined fixed charges and preferred dividends exceeded earnings by $461 million. Earnings as defined include $459 million of asset impairment charges.
(d) Preferred dividends of a consolidated subsidiary are included in fixed charges, but excluded from earnings as defined because the amount was not deducted in arriving at pretax income from continuing operations.