EX-12.B 17 k47328exv12wb.htm EX-12.(B) EX-12.(B)
Exhibit (12)(b)
CONSUMERS ENERGY COMPANY
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
                                         
    Year Ended December 31
    2008   2007   2006   2005   2004
                            (b)        
Earnings as defined (a)
                                       
Pretax income from continuing operations
  $ 562     $ 437     $ 167     $ (590 )   $ 439  
Exclude equity basis subsidiaries (c)
                (1 )     (1 )     (1 )
Fixed charges as defined
    276       293       307       316       345  
     
Earnings as defined
  $ 838     $ 730     $ 473     $ (275 )   $ 783  
     
 
                                       
Fixed charges as defined (a)
                                       
Interest on long-term debt
  $ 229     $ 236     $ 286     $ 305     $ 328  
Estimated interest portion of lease rental
    25       23       8       6       4  
Other interest charges
    22       34       13       5       13  
     
Fixed charges as defined
  $ 276     $ 293     $ 307     $ 316     $ 345  
Preferred dividends
    3       3       3       3       3  
     
Combined fixed charges and preferred dividends
  $ 279     $ 296     $ 310     $ 319     $ 348  
     
 
                                       
Ratio of earnings to fixed charges
    3.04       2.49       1.54             2.27  
     
 
                                       
Ratio of earnings to combined fixed charges and preferred dividends
    3.00       2.47       1.53             2.25  
     
 
NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.
(b) For the year ended December 31, 2005, fixed charges exceeded earnings by $591 million and combined fixed charges and preferred dividends exceeded earnings by $594 million. Earnings as defined include $1.184 billion of asset impairment charges.
(c) In 2004, we consolidated the MCV Partnership and the FMLP in accordance with Revised FASB Interpretation No. 46.