EX-12.A 16 k47328exv12wa.htm EX-12.(A)
Exhibit (12)(a)
CMS ENERGY CORPORATION
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) |  |  | (c) |  |  | (d) |  |  | (e) |
Earnings as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 449 |  |  | $ | (308 | ) |  | $ | (425 | ) |  | $ | (764 | ) |  | $ | 98 |
Exclude equity basis subsidiaries |  |  | (1 | ) |  |  | (22 | ) |  |  | (14 | ) |  |  | (17 | ) |  |  | (88 | )
Fixed charges as defined |  |  | 421 |  |  |  | 480 |  |  |  | 526 |  |  |  | 531 |  |  |  | 637 |
Earnings as defined |  | $ | 869 |  |  | $ | 150 |  |  | $ | 87 |  |  | $ | (250 | ) |  | $ | 647 |
Fixed charges as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on long-term debt |  | $ | 363 |  |  | $ | 406 |  |  | $ | 483 |  |  | $ | 506 |  |  | $ | 560 |
Estimated interest portion of lease rental |  |  | 25 |  |  |  | 23 |  |  |  | 8 |  |  |  | 6 |  |  |  | 4 |
Other interest charges |  |  | 33 |  |  |  | 51 |  |  |  | 35 |  |  |  | 19 |  |  |  | 73 |
Fixed charges as defined |  | $ | 421 |  |  | $ | 480 |  |  | $ | 526 |  |  | $ | 531 |  |  | $ | 637 |
Preferred dividends |  |  | 17 |  |  |  | 12 |  |  |  | 11 |  |  |  | 10 |  |  |  | 11 |
Combined fixed charges and preferred dividends |  | $ | 438 |  |  | $ | 492 |  |  | $ | 537 |  |  | $ | 541 |  |  | $ | 648 |
Ratio of earnings to fixed charges |  |  | 2.06 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1.01 |
Ratio of earnings to combined fixed charges and preferred dividends |  |  | 1.98 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

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 $330 million and combined fixed charges and preferred dividends exceeded earnings by $342 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 $439 million and combined fixed charges and preferred dividends exceeded earnings by $450 million. Earnings as defined include $459 million of asset impairment charges.
(d) For the year ended December 31, 2005, fixed charges exceeded earnings by $781 million and combined fixed charges and preferred dividends exceeded earnings by $791 million. Earnings as defined include $1.184 billion of asset impairment charges.
(e) For 2004, fixed charges and combined fixed charges and preferred dividends, 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 $1 million. Earnings as defined include $160 million of asset impairments.