EX-12.(A) 15 k23633exv12wxay.htm STATEMENT REGARDING COMPUTATION OF CMS ENERGY'S RATIO OF EARNINGS TO FIXED CHARGES & PREFERRED DIVIDENDS exv12wxay
 

Exhibit (12)(a)
CMS ENERGY CORPORATION
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
                                         
    Year Ended December 31  
    2007     2006     2005     2004     2003  
    (b)     (c)     (d)     (e)          
Earnings as defined (a)
                                       
Pretax income from continuing operations
  $ (310 )   $ (427 )   $ (766 )   $ 96     $ 69  
Exclude equity basis subsidiaries
    (22 )     (14 )     (17 )     (88 )     (41 )
Fixed charges as defined
    483       528       533       639       663  
 
                             
Earnings as defined
  $ 151     $ 87     $ (250 )   $ 647     $ 691  
 
                             
 
                                       
Fixed charges as defined (a)
                                       
Interest on long-term debt
  $ 406     $ 483     $ 506     $ 560     $ 531  
Estimated interest portion of lease rental
    23       8       6       4       7  
Other interest charges
    54       37       21       75       125  
 
                             
Fixed charges as defined
  $ 483     $ 528     $ 533     $ 639     $ 663  
Preferred dividends
    12       11       10       11       15  
 
                             
Combined fixed charges and preferred dividends
  $ 495     $ 539     $ 543     $ 650     $ 678  
 
                             
 
                                       
Ratio of earnings to fixed charges
                      1.01       1.04  
 
                             
 
                                       
Ratio of earnings to combined fixed charges and preferred dividends
                            1.02  
 
                             
 
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 $332 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 $441 million. Earnings as defined include $459 million of asset impairment charges.
(d) For the year ended December 31, 2005, fixed charges exceeded earnings by $783 million. Earnings as defined include $1.184 billion of asset impairment charges.
(e) For 2004, fixed charges, adjusted as defined, include $25 million of interest cost that was capitalized prior to 2004 and subsequently expensed in 2004