EX-12 3 x12a2.htm EXHIBIT 12(A)2 x12a2.htm
  Exhibit 12(a)2
 
 
THE SOUTHERN COMPANY
Computation of ratio of earnings to fixed charges plus preferred and preference
dividend requirements for the five years ended December 31, 2010
and the year to date September 30, 2011
 
                                 
Nine
                                 
Months
                                 
Ended
 
Year ended December 31,
    
September 30,
   
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 PLUS
                                    
PREFERRED DIVIDEND REQUIREMENTS
  
3.26
    
3.27
    
3.26
    
3.06
    
3.43
    
4.46