EX-12.3 3 k74362exv12w3.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12-3 MICHIGAN CONSOLIDATED GAS COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (THOUSANDS OF DOLLARS)
TWELVE MONTHS ENDED DECEMBER 31 ----------------------------------------------------- 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- EARNINGS Pre-tax income (loss) $ 32,449 $ (65,867) $ 163,915 $ 162,389 $ 114,619 Fixed charges 59,216 60,933 61,884 59,340 61,304 --------- ---------- --------- --------- --------- $ 91,665 $ (4,934) $ 225,799 $ 221,729 $ 175,923 ========= ========== ========= ========= ========= FIXED CHARGES Interest expensed $ 57,128 $ 55,305 $ 58,700 $ 55,891 $ 56,997 Interest capitalized 936 565 811 1,190 2,207 Amortization of debt discounts, premium and expense 1,844 1,588 1,121 1,144 955 Interest factor of rents 526 1,095 1,252 1,115 1,145 SFAS 133 Swap marked-to-market (1,218) 2,380 -- -- -- --------- ----------- --------- --------- --------- $ 59,216 $ 60,933 $ 61,884 $ 59,340 $ 61,304 ========= ========== ========= ========= ========= Ratio of Earnings to Fixed Charges 1.55 3.65 3.74 2.87 ========= ========= ========= ========= Coverage Deficiency (1) $ (66,432) ==========
(1) The earnings for the twelve-month period ended December 31, 2001 were not adequate to cover fixed charges. The amount of the deficiency was $66,432,000. The Ratio of Earnings to Fixed Charges excluding unusual charges would have been 1.62.