EX-12.(B) 3 ex12-b.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - TEP Computation of Ratio of Earnings to Fixed Charges - TEP
Exhibit 12 B

Tucson Electric Power Company
Computation of Ratio of Earnings to Fixed Charges
 

   
3 Months Ended
 
12 Months Ended
 12 Months Ended
 
 
 
Mar. 31,
 
Mar. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
 
 
2006
 
2006
 
2005
 
2004
 
2003
 
2002
 
2001
  
 
  
 - Thousands of Dollars - 
  
Fixed Charges:
                                            
  Interest on Long-Term Debt
 
$
12,649
  
$
51,912
  
$
56,243
  
$
69,904
  
$
76,585
  
$
65,620
  
$
68,678
  
  Other Interest (1)
    
969
   
2,818
   
2,597
   
1,263
   
1,820
   
273
   
441
 
  Interest on Capital Lease Obligations
    
18,539
   
77,866
   
79,064
   
85,869
   
84,053
   
87,783
   
90,506
 
Total Fixed Charges
    
32,157
   
132,596
   
137,904
   
157,036
   
162,458
   
153,676
   
159,625
 
                                             
Net Income
    
16,587
   
69,545
   
48,267
   
46,127
   
128,913
   
55,390
   
77,778
 
 
                                            
Less:
                                            
  Cumulative Effect of Accounting Change -
                                            
    Net of Tax
    
-
   
(626
)
  
(626
)
  
-
   
67,471
   
-
   
470
 
Net Income from Continuing Operations
    
16,587
   
70,171
   
48,893
   
46,127
   
61,442
   
55,390
   
77,308
 
                                             
Add (Deduct):
                                            
  (Income) Losses from Equity Investees (2)
    
(53
) 
 
(352
) 
 
(314
) 
 
(131
) 
 
(76
) 
 
17
   
700
 
  Income Taxes
    
11,528
   
47,596
   
33,907
   
34,815
   
21,090
   
36,434
   
57,545
 
  Total Fixed Charges
    
32,157
   
132,596
   
137,904
   
157,036
   
162,458
   
153,676
   
159,625
 
                                             
Total Earnings before Taxes
                                           
and Fixed Charges
  
$
60,219
  
$
250,011
  
$
220,390
  
$
237,847
  
$
244,914
  
$
245,517
   
$
295,178
  
                                             
                                             
Ratio of Earnings to Fixed Charges
    
1.873
   
1.886
   
1.598
   
1.515
   
1.508
   
1.598
   
1.849
 
 
(1)  Excludes recognition of Allowance for Borrowed Funds Used During Construction.
(2)  Truepricing and Inncom (income) losses.