EX-12.6 10 dex126.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.6

Central Illinois Light Company

Computation of Ratios of Earnings to Fixed Charges and Combined

Fixed Charges and Preferred Stock Dividend Requirements

(Thousands of Dollars, Except Ratios)

 

     Year Ended December 31,  
     2004    2005     2006    2007     2008  

Net income from continuing operations

   $ 32,384    $ 25,296     $ 47,012    $ 75,984     $ 69,638  

Less- Change in accounting principle

     —        (2,497 )     —        —         —    

Add- Taxes based on income

     5,450      16,357       9,966      39,195       38,673  
                                      

Net income before income taxes and change in accounting principle

     37,834      44,150       56,978      115,179       108,311  

Add- fixed charges:

            

Interest on long term debt

     15,179      13,918       18,044      26,071 (1)     19,724 (1)

Estimated interest cost within rental expense

     395      390       289      343       429  

Amortization of net debt premium, discount, and expenses

     611      473       705      1,065       1,112  
                                      

Total fixed charges

     16,185      14,781       19,038      27,479       21,265  
                                      

Earnings available for fixed charges

     54,019      58,931       76,016      142,658       129,576  
                                      

Ratio of earnings to fixed charges

     3.33      3.98       3.99      5.19       6.09  
                                      

Earnings required for combined fixed charges and preferred stock dividends:

            

Preferred stock dividends

     2,062      1,998       1,933      1,869       1,354  

Adjustment to pre-tax basis

     346      1,293       410      977       752  
                                      
     2,408      3,291       2,343      2,846       2,106  
                                      

Combined fixed charges and preferred stock dividend requirements

   $ 18,593    $ 18,072     $ 21,381    $ 30,325     $ 23,371  
                                      

Ratio of earnings to combined fixed charges and preferred stock dividend requirements

     2.90      3.26       3.55      4.70       5.54  
                                      

(1) Includes FIN 48 interest expense