EX-12.A 2 k46871exv12wa.htm EX-12(A) EX-12(a)
Exhibit (12)(a)
CMS ENERGY CORPORATION
Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
                                                 
    Nine Months        
    Ended        
    September 30     Year Ended December 31  
    2008     2007     2006     2005     2004     2003  
            (b)     (c)     (d)     (e)          
Earnings as defined (a)
                                                
Pretax income from continuing operations
   $ 368     $ (310 )   $ (427 )   $ (766 )   $ 96     $ 69  
Exclude equity basis subsidiaries
     (1 )     (22 )     (14 )     (17 )     (88 )     (41 )
Fixed charges as defined
     312       483       528       533       639       663  
 
                                    
Earnings as defined
   $ 679     $ 151     $ 87     $ (250 )   $ 647     $ 691  
 
                                    
 
                                                
Fixed charges as defined (a)
                                                
Interest on long-term debt
   $ 257     $ 406     $ 483     $ 506     $ 560     $ 531  
Estimated interest portion of lease rental
     19       23       8       6       4       7  
Other interest charges
     36       54       37       21       75       125  
 
                                    
Fixed charges as defined
   $ 312     $ 483     $ 528     $ 533     $ 639     $ 663  
Preferred dividends
     13       12       11       10       11       15  
 
                                    
Combined fixed charges and preferred dividends
   $ 325     $ 495     $ 539     $ 543     $ 650     $ 678  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     2.18       —       —       —       1.01       1.04  
 
                                    
 
                                                
Ratio of earnings to combined fixed charges and preferred dividends
     2.09       —       —       —       —       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 and combined fixed charges and preferred dividends exceeded earnings by $344 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 and combined fixed charges and preferred dividends exceeded earnings by $452 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 and combined fixed charges and preferred dividends exceeded earnings by $793 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. Combined fixed charges and preferred dividends exceeded earnings by $3 million. Earnings as defined include $160 million of asset impairment charges.