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

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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