EX-12 7 ex12.txt RATIO CALCULATIONS Exhibit 12
TUCSON ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Nine Months 12 Months Ended Ended -------------------------------------------------------------------- Sep. 30, Sep. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2003 2003 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------------------------ - Thousands of Dollars - Fixed Charges: Interest on Long-Term Debt $ 57,384 $ 74,889 $ 65,620 $ 68,678 $ 66,377 $ 66,836 $ 72,672 Other Interest (1) 1,587 1,562 273 441 9,067 13,081 13,207 Interest on Capital Lease Obligations (2) 62,781 84,721 87,783 90,506 92,658 82,414 81,823 ------------------------------------------------------------------------------------------------------------------------------ Total Fixed Charges 121,752 161,172 153,676 159,625 168,102 162,331 167,702 ============================================================================================================================== Net Income 102,971 114,609 53,737 75,284 51,169 73,475 41,676 Less: Extraordinary Income & Accounting Change - Net of Tax 67,471 67,471 - 470 - 22,597 - ------------------------------------------------------------------------------------------------------------------------------ Net Income from Continuing Operations 35,500 47,138 53,737 74,814 51,169 50,878 41,676 Add (Deduct): Losses (Gains) from Equity Investees (3) (85) (347) 17 700 1,543 - - Income Taxes 26,962 34,944 35,350 55,910 26,566 22,350 17,578 Total Fixed Charges 121,752 161,172 153,676 159,625 168,102 162,331 167,702 ------------------------------------------------------------------------------------------------------------------------------ Total Earnings Before Taxes and Fixed Charges $184,129 $242,907 $242,780 $291,049 $247,380 $235,559 $226,956 ============================================================================================================================== Ratio of Earnings to Fixed Charges 1.512 1.507 1.580 1.823 1.472 1.451 1.353 (1) Excludes recognition of Allowance for Borrowed Funds Used During Construction. (2) Amounts have been restated for year ended 2001 to conform to current year's presentation. (3) Inncom losses (gains).