EX-12.1 5 d316229dex121.htm EXHIBIT 12.1

Exhibit 12.1

CMS ENERGY CORPORATION

Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends

In Millions, Except Ratios |
|  | Three Months Ended |  |  | Year Ended December 31 |
|  | March 31, 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 1 |
Earnings as defined2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  |  | $ 98 |  |  | $ | 606 |  |  | $ | 590 |  |  | $ | 335 |  |  | $ | 440 |  |  | $ | (317) |
Exclude equity basis subsidiaries |  |  | (3) |  |  |  | (1 | ) |  |  | (2 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | (22) |
Fixed charges as defined 3 |  |  | 104 |  |  |  | 437 |  |  |  | 449 |  |  |  | 456 |  |  |  | 429 |  |  |  | 489 |
Earnings as defined 3 |  |  | $ 199 |  |  | $ | 1,042 |  |  | $ | 1,037 |  |  | $ | 793 |  |  | $ | 868 |  |  | $ | 150 |
Fixed charges as defined2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on long-term debt |  |  | $ 94 |  |  | $ | 396 |  |  | $ | 394 |  |  | $ | 383 |  |  | $ | 371 |  |  | $ | 415 |
Estimated interest portion of lease rental |  |  | 4 |  |  |  | 18 |  |  |  | 16 |  |  |  | 17 |  |  |  | 25 |  |  |  | 23 |
Other interest charges |  |  | 6 |  |  |  | 25 |  |  |  | 42 |  |  |  | 58 |  |  |  | 35 |  |  |  | 53 |
Fixed charges as defined 3 |  |  | $ 104 |  |  | $ | 439 |  |  | $ | 452 |  |  | $ | 458 |  |  | $ | 431 |  |  | $ | 491 |
Preferred dividends |  |  | - |  |  |  | - |  |  |  | 13 |  |  |  | 17 |  |  |  | 17 |  |  |  | 12 |
Combined fixed charges and preferred dividends |  |  | $ 104 |  |  | $ | 439 |  |  | $ | 465 |  |  | $ | 475 |  |  | $ | 448 |  |  | $ | 503 |
Ratio of earnings to fixed charges |  |  | 1.91 |  |  |  | 2.37 |  |  |  | 2.29 |  |  |  | 1.73 |  |  |  | 2.01 |  |  |  | - |
Ratio of earnings to combined fixed charges and preferred dividends |  |  | 1.91 |  |  |  | 2.37 |  |  |  | 2.23 |  |  |  | 1.67 |  |  |  | 1.94 |  |  |  | - |

NOTES:

| 1 | 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.

| 2 | Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K.

| 3 | 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.