EX-12.B 17 k47328exv12wb.htm 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.