EX-12 2 x12a1.htm EXHIBIT 12(A)1 x12a1.htm
  Exhibit 12(a)1
 
 
THE SOUTHERN COMPANY
Computation of ratio of earnings to fixed charges for
the five years ended December 31, 2010
and the year to date September 30, 2011
 
                                  Nine
                                  Months
                                  Ended
 
Year ended December 31,
    30-Sep
   
2006
   
2007
   
2008
   
2009
   
2010
   
2011
 
 
-----------------------------------------Millions of Dollars------------------------------------------
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K:
                                   
Earnings Before Income Taxes
$
2,446
 
$
2,641
 
$
2,711
 
$
2,604
 
$
3,066
 
$
3,114
 
Interest expense, net of amounts capitalized
 
868
   
888
   
869
   
907
   
898
   
639
 
Interest component of rental expense
 
82
   
80
   
88
   
94
   
112
   
94
 
Amortization of capitalized interest
 
2
   
2
   
2
   
3
   
3
   
2
 
AFUDC - Debt funds
 
21
   
48
   
64
   
82
   
74
   
41
 
Less: Dividends on preferred and preference stock of subsidiaries
(35)
   
(48)
   
(65)
   
(65)
   
(65)
   
(49)
 
Earnings as defined
$
3,384
 
$
3,611
 
$
3,669
 
$
3,625
 
$
4,088
 
$
3,841
 
                                     
                                     
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K:
                               
Interest on long-term debt
$
629
 
$
743
 
$
813
 
$
876
 
$
885
 
$
648
 
Interest on affiliated loans
 
122
   
66
   
23
   
22
   
19
   
14
 
Interest on interim obligations
 
77
   
75
   
30
   
4
   
2
   
3
 
Amort of debt disc, premium and expense, net
 
58
   
46
   
40
   
40
   
42
   
31
 
Other interest charges
 
3
   
7
   
27
   
46
   
24
   
(16)
 
Capitalized interest
 
17
   
17
   
7
   
2
   
12
   
12
 
Interest component of rental expense
 
82
   
80
   
87
   
94
   
112
   
94
 
Fixed charges as defined
 
988
   
1,034
   
1,027
   
1,084
   
1,096
   
786
 
Tax deductible preferred dividends
 
1
   
1
   
1
   
1
   
1
   
1
 
   
989
   
1,035
   
1,028
   
1,085
   
1,097
   
787
 
Non-tax deductible preferred and preference dividends
 
33
   
46
   
64
   
64
   
64
   
48
 
Ratio of net income before taxes to net income
x
1.485
 
x
1.469
 
x
1.507
 
x
1.525
 
x
1.503
 
x
1.564
 
Preferred and preference dividend requirements
    before income taxes
 
49
   
 
68
   
 
96
   
 
98
   
 
96
   
 
75
 
Fixed charges plus preferred and preference
    dividend requirements
 
$
 
1,038
 
 
$
 
1,103
 
 
$
 
1,124
 
 
$
 
1,183
 
 
$
 
1,193
 
 
$
 
862
 
                                     
                                     
RATIO OF EARNINGS TO FIXED CHARGES
 
3.26
   
3.27
   
3.26
   
3.06
   
3.43
   
4.46