EX-12.(A) 23 k48293exv12wxay.htm EX-12.(A)
Exhibit (12)(a)
CMS ENERGY CORPORATION
Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends

In Millions, Except Ratios
|  | Nine Months Ended |  |  |  |  |  | Year Ended December 31 |  |
|  | September 30, 2009 |  | 2008 |  | 2007 |  | 2006 |  | 2005 |  | 2004
|  |  |  |  |  |  |  |  |  | (b) |  | (c) |  | (d) |  | (e)
Earnings as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 332 |  |  | $ | 441 |  |  | $ | (317 | ) |  | $ | (434 | ) |  | $ | (772 | ) |  | $ | 98 |
Exclude equity basis subsidiaries |  |  | 2 |  |  |  | (1 | ) |  |  | (22 | ) |  |  | (14 | ) |  |  | (17 | ) |  |  | (88 | )
Fixed charges as defined |  |  | 323 |  |  |  | 429 |  |  |  | 489 |  |  |  | 535 |  |  |  | 539 |  |  |  | 637 |
Earnings as defined |  | $ | 657 |  |  | $ | 869 |  |  | $ | 150 |  |  | $ | 87 |  |  | $ | (250 | ) |  | $ | 647 |
Fixed charges as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on long-term debt |  | $ | 280 |  |  | $ | 371 |  |  | $ | 415 |  |  | $ | 492 |  |  | $ | 514 |  |  | $ | 560 |
Other interest charges |  |  | 30 |  |  |  | 33 |  |  |  | 51 |  |  |  | 35 |  |  |  | 19 |  |  |  | 73 |
Estimated interest portion of lease rental |  |  | 13 |  |  |  | 25 |  |  |  | 23 |  |  |  | 8 |  |  |  | 6 |  |  |  | 4 |
Fixed charges as defined |  | $ | 323 |  |  | $ | 429 |  |  | $ | 489 |  |  | $ | 535 |  |  | $ | 539 |  |  | $ | 637 |
Preferred dividends |  |  | 12 |  |  |  | 17 |  |  |  | 12 |  |  |  | 11 |  |  |  | 10 |  |  |  | 11 |
Combined fixed charges and preferred dividends |  | $ | 335 |  |  | $ | 446 |  |  | $ | 501 |  |  | $ | 546 |  |  | $ | 549 |  |  | $ | 648 |
Ratio of earnings to fixed charges |  |  | 2.03 |  |  |  | 2.03 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1.02 |
Ratio of earnings to combined fixed charges and preferred dividends |  |  | 1.96 |  |  |  | 1.95 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

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 $339 million and combined fixed charges and preferred dividends exceeded earnings by $351 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 $448 million and combined fixed charges and preferred dividends exceeded earnings by $459 million. Earnings as defined include $459 million of asset impairment charges.
(d) |  | For the year ended December 31, 2005, fixed charges exceeded earnings by $789 million and combined fixed charges and preferred dividends exceeded earnings by $799 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.