EX-12.1 3 k49436exv12w1.htm EX-12.1
Exhibit 12.1
CMS ENERGY CORPORATION
Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)

|  | Six Months Ended |  |  | Year Ended December 31 |
|  | June 30, 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 |  |  | 2006 |  |  | 2005 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | (b) |  |  | (c) |  |  | (d) |
Earnings as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 309 |  |  | $ | 335 |  |  | $ | 440 |  |  | $ | (317 | ) |  | $ | (434 | ) |  | $ | (773 | )
Exclude equity basis subsidiaries |  |  | (1 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | (22 | ) |  |  | (14 | ) |  |  | (17 | )
Fixed charges as defined (e) |  |  | 228 |  |  |  | 456 |  |  |  | 429 |  |  |  | 489 |  |  |  | 535 |  |  |  | 539 |
Earnings as defined (e) |  | $ | 536 |  |  | $ | 793 |  |  | $ | 868 |  |  | $ | 150 |  |  | $ | 87 |  |  | $ | (251 | )
Fixed charges as defined (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on long-term debt |  | $ | 196 |  |  | $ | 383 |  |  | $ | 371 |  |  | $ | 415 |  |  | $ | 492 |  |  | $ | 514 |
Estimated interest portion of lease rental |  |  | 6 |  |  |  | 17 |  |  |  | 25 |  |  |  | 23 |  |  |  | 8 |  |  |  | 6 |
Other interest charges |  |  | 28 |  |  |  | 58 |  |  |  | 35 |  |  |  | 53 |  |  |  | 37 |  |  |  | 21 |
Fixed charges as defined (e) |  | $ | 230 |  |  | $ | 458 |  |  | $ | 431 |  |  | $ | 491 |  |  | $ | 537 |  |  | $ | 541 |
Preferred dividends |  |  | 8 |  |  |  | 17 |  |  |  | 17 |  |  |  | 12 |  |  |  | 11 |  |  |  | 10 |
Combined fixed charges and preferred dividends |  | $ | 238 |  |  | $ | 475 |  |  | $ | 448 |  |  | $ | 503 |  |  | $ | 548 |  |  | $ | 551 |
Ratio of earnings to fixed charges |  |  | 2.33 |  |  |  | 1.73 |  |  |  | 2.01 |  |  |  | — |  |  |  | — |  |  |  | — |
Ratio of earnings to combined fixed charges and preferred dividends |  |  | 2.25 |  |  |  | 1.67 |  |  |  | 1.94 |  |  |  | — |  |  |  | — |  |  |  | — |

|  | 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 $341 million and combined fixed charges and preferred dividends exceeded earnings by $353 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 $450 million and combined fixed charges and preferred dividends exceeded earnings by $461 million. Earnings as defined include $459 million of asset impairment charges.
(d) |  | For the year ended December 31, 2005, fixed charges exceeded earnings by $792 million and combined fixed charges and preferred dividends exceeded earnings by $802 million. Earnings as defined include $1.2 billion of asset impairment charges.
(e) |  | Preferred dividends of a consolidated subsidiary are included in fixed charges, but excluded from earnings as defined because the amount was not deducted in arriving at pretax income from continuing operations.