EX-12.(A) 12 k91832exv12wxay.txt STATEMENT REGARDING COMPUTATION OF CMS ENERGY RATIO OF EARNINGS Exhibit (12)(a) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars)
Years Ended December 31 - ------------------------------------ 2004 2003 2002 2001 2000 ----- ---- ----- ----- ----- (b) (c) (d) (e) Earnings as defined (a) Pretax income from continuing operations $ 137 $ 16 $(433) $(428) $ (1) Exclude equity basis subsidiaries (88) (41) (39) 68 (171) Fixed charges as defined, adjusted to exclude capitalized interest of $(25), $9, $16, $35 and $48 million for the years ended December 31, 2004, 2003, 2002, 2001, and 2000, respectively (f) 649 605 518 577 561 ----- ---- ----- ----- ----- Earnings as defined $ 698 $580 $ 46 $ 217 $ 389 ===== ==== ===== ===== ===== Fixed charges as defined (a) Interest on long-term debt $ 560 $531 $ 404 $ 420 $ 420 Estimated interest portion of lease rental 4 7 10 11 11 Other interest charges 49 61 34 83 34 Preferred securities dividends and distributions 11 15 86 98 144 ----- ---- ----- ----- ----- Fixed charges as defined $ 624 $614 $ 534 $ 612 $ 609 ===== ==== ===== ===== ===== Ratio of earnings to fixed charges and preferred securities dividends and distributions 1.12 -- -- -- -- ===== ==== ===== ===== =====
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the year ended December 31, 2003, fixed charges exceeded earnings by $34 million. Earnings as defined include $95 million of asset impairment charges. (c) For the year ended December 31, 2002, fixed charges exceeded earnings by $488 million. Earnings as defined include $602 million of asset impairments charges. (d) For the year ended December 31, 2001, fixed charges exceeded earnings by $395 million. Earnings as defined include $323 million of asset impairments charges. (e) For the year ended December 31, 2000, fixed charges exceeded earnings by $220 million. Earnings as defined include a $329 million pretax impairment loss on the Loy Yang investment. (f) Fixed charges, adjusted as defined, excludes $25 million of previously capitalized interest that was expensed in the year ended December 31, 2004. Capitalized interest includes a $30.8 million reversal of previously recorded AFUDC/IDC on capital expenditures covered by Public Act 141.