MCN ENERGY GROUP INC, 10-Q, 2000-05-15

MCN ENERGY GROUP INC
10-Q, 2000-05-15
NATURAL GAS DISTRIBUTION

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EXHIBIT 12-1

MCN ENERGY GROUP INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)


		TWELVE MONTHS			TWELVE MONTHS			TWELVE MONTHS
		ENDED			ENDED			ENDED
		March 31, 2000			December 31, 1999			December 31, 1998

EARNINGS AS DEFINED (1) Pre-tax income (loss) (2) (4) (5) (6)		$	(97,526	)	$	(51,495	)	$	(497,476	)




Fixed charges (3)			166,175			168,203			158,242

	Earnings as defined	$	68,649		$	116,708		$	(339,234	)

FIXED CHARGES AS DEFINED (1) Interest, expensed		$	120,099		$	119,773		$	111,750




Interest, capitalized			5,647			8,929			19,938




Amortization of debt discounts, premium and expense			3,994			3,562			2,869




Interest implicit in rentals			2,096			2,208			2,554




Preferred securities dividend requirements of subsidiaries			38,426			40,139			36,370

	Fixed charges as defined	$	170,262		$	174,611		$	173,481

Coverage Deficiency (7) (8) (9)		$	101,613		$	57,903		$	512,715

(1) Earnings and fixed charges are defined and computed in accordance with Item 503 of Regulation S-K.

(2) This amount represents the aggregate of (a) the pre-tax income (loss) of MCN and its majority-owned subsidiaries, (b) MCN’s share of pre-tax income of its 50% owned companies and (c) any income actually received from less than 50% owned companies.

(3) Fixed charges added to earnings are adjusted to exclude interest capitalized during the period for nonutility companies.

(4) For the twelve-month period ended March 31, 2000, MCN recorded merger costs and several unusual items consisting of property write-downs, contract losses, gains and losses on sale of assets, and investment losses totaling $165,412,000 pre-tax ($107,518,000 net of taxes).

(5) For the twelve-month period ended December 31, 1999, MCN recorded merger costs and several unusual items consisting of property write-downs, contract losses, gains and losses on sale of assets, and investment losses totaling $174,918,000 pre-tax ($113,697,000 net of taxes).

(6) For the twelve-month period ended December 31, 1998, MCN recorded several unusual items consisting of property write-downs, restructuring charges, gains and losses on sale of assets and investment losses totaling $589,644,000 pre-tax ($378,347,000 net of taxes and minority interest).

(7) Earnings for the twelve-month period ended March 31, 2000 were not adequate to cover fixed charges. The amount of the coverage deficiency was $101,613,000. The Ratio of Earnings to Fixed Charges excluding merger costs and unusual items would have been 1.37.

(8) Earnings for the twelve-month period ended December 31, 1999 were not adequate to cover fixed charges. The amount of the coverage deficiency was $57,903,000. The Ratio of Earnings to Fixed Charges excluding merger costs and unusual items would have been 1.67.

(9) Earnings for the twelve-month period ended December 31, 1998 were not adequate to cover fixed charges. The amount of the coverage deficiency was $512,715,000. The Ratio of Earnings to Fixed Charges excluding unusual items would have been 1.44.

(1)		Earnings and fixed charges are defined and computed in accordance with Item 503 of Regulation S-K.




(2)		This amount represents the aggregate of (a) the pre-tax income (loss) of MCN and its majority-owned subsidiaries, (b) MCN’s share of pre-tax income of its 50% owned companies and (c) any income actually received from less than 50% owned companies.




(3)		Fixed charges added to earnings are adjusted to exclude interest capitalized during the period for nonutility companies.




(4)		For the twelve-month period ended March 31, 2000, MCN recorded merger costs and several unusual items consisting of property write-downs, contract losses, gains and losses on sale of assets, and investment losses totaling $165,412,000 pre-tax ($107,518,000 net of taxes).




(5)		For the twelve-month period ended December 31, 1999, MCN recorded merger costs and several unusual items consisting of property write-downs, contract losses, gains and losses on sale of assets, and investment losses totaling $174,918,000 pre-tax ($113,697,000 net of taxes).




(6)		For the twelve-month period ended December 31, 1998, MCN recorded several unusual items consisting of property write-downs, restructuring charges, gains and losses on sale of assets and investment losses totaling $589,644,000 pre-tax ($378,347,000 net of taxes and minority interest).




(7)		Earnings for the twelve-month period ended March 31, 2000 were not adequate to cover fixed charges. The amount of the coverage deficiency was $101,613,000. The Ratio of Earnings to Fixed Charges excluding merger costs and unusual items would have been 1.37.




(8)		Earnings for the twelve-month period ended December 31, 1999 were not adequate to cover fixed charges. The amount of the coverage deficiency was $57,903,000. The Ratio of Earnings to Fixed Charges excluding merger costs and unusual items would have been 1.67.




(9)		Earnings for the twelve-month period ended December 31, 1998 were not adequate to cover fixed charges. The amount of the coverage deficiency was $512,715,000. The Ratio of Earnings to Fixed Charges excluding unusual items would have been 1.44.