EX-12.1 4 k50726exv12w1.htm EX-12.1
Exhibit 12.1
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)

|  | Nine Months Ended |  |  | Year Ended December 31 |
|  | September 30, 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 20072 |  |  | 20063 |
Earnings as defined1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 542 |  |  | $ | 590 |  |  | $ | 335 |  |  | $ | 440 |  |  | $ | (317 | ) |  | $ | (434 | )
Exclude equity basis subsidiaries |  |  | (4 | ) |  |  | (2 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | (22 | ) |  |  | (14 | )
Fixed charges as defined4 |  |  | 330 |  |  |  | 449 |  |  |  | 456 |  |  |  | 429 |  |  |  | 489 |  |  |  | 535 |
Earnings as defined4 |  | $ | 868 |  |  | $ | 1,037 |  |  | $ | 793 |  |  | $ | 868 |  |  | $ | 150 |  |  | $ | 87 |
Fixed charges as defined1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on long-term debt |  | $ | 298 |  |  | $ | 394 |  |  | $ | 383 |  |  | $ | 371 |  |  | $ | 415 |  |  | $ | 492 |
Estimated interest portion of lease rental |  |  | 14 |  |  |  | 16 |  |  |  | 17 |  |  |  | 25 |  |  |  | 23 |  |  |  | 8 |
Other interest charges |  |  | 19 |  |  |  | 42 |  |  |  | 58 |  |  |  | 35 |  |  |  | 53 |  |  |  | 37 |
Fixed charges as defined4 |  | $ | 331 |  |  | $ | 452 |  |  | $ | 458 |  |  | $ | 431 |  |  | $ | 491 |  |  | $ | 537 |
Preferred dividends |  |  | — |  |  |  | 13 |  |  |  | 17 |  |  |  | 17 |  |  |  | 12 |  |  |  | 11 |
Combined fixed charges and preferred dividends |  | $ | 331 |  |  | $ | 465 |  |  | $ | 475 |  |  | $ | 448 |  |  | $ | 503 |  |  | $ | 548 |
Ratio of earnings to fixed charges |  |  | 2.62 |  |  |  | 2.29 |  |  |  | 1.73 |  |  |  | 2.01 |  |  |  | — |  |  |  | — |
Ratio of earnings to combined fixed charges and preferred dividends |  |  | 2.62 |  |  |  | 2.23 |  |  |  | 1.67 |  |  |  | 1.94 |  |  |  | — |  |  |  | — |

NOTES:
1 Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.
2 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.
3 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.
4 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.