EX-12.2 4 he-9302013xex122.htm HECO EXHIBIT 12.2 HE-9.30.2013-Ex12.2


Hawaiian Electric Exhibit 12.2
 
Hawaiian Electric Company, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
 
 
 
Nine months  
 ended September 30
 
Years ended December 31
(dollars in thousands)
 
2013
 
2012
 
2012
 
2011
 
2010
 
2009
 
2008
Fixed charges
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total interest charges
 
$
47,449

 
$
46,592

 
$
62,056

 
$
60,031

 
$
61,510

 
$
57,944

 
$
54,757

Interest component of rentals
 
2,137

 
1,996

 
2,690

 
2,152

 
1,857

 
2,499

 
2,211

Pretax preferred stock dividend requirements of subsidiaries
 
1,071

 
1,102

 
1,467

 
1,468

 
1,461

 
1,452

 
1,458

Total fixed charges
 
$
50,657

 
$
49,690

 
$
66,213

 
$
63,651

 
$
64,828

 
$
61,895

 
$
58,426

Earnings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Net income attributable to Hawaiian Electric
 
$
91,749

 
$
95,861

 
$
100,356

 
$
101,066

 
$
77,669

 
$
80,526

 
$
93,055

Fixed charges, as shown
 
50,657

 
49,690

 
66,213

 
63,651

 
64,828

 
61,895

 
58,426

Income taxes (see note below)
 
51,776

 
58,429

 
61,048

 
61,584

 
46,868

 
47,776

 
55,763

Allowance for borrowed funds used during construction
 
(1,626
)
 
(2,451
)
 
(4,355
)
 
(2,498
)
 
(2,558
)
 
(5,268
)
 
(3,741
)
Earnings available for fixed charges
 
$
192,556

 
$
201,529

 
$
223,262

 
$
223,803

 
$
186,807

 
$
184,929

 
$
203,503

Ratio of earnings to fixed charges
 
3.80

 
4.06

 
3.37

 
3.52

 
2.88

 
2.99

 
3.48

Note:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Income taxes are comprised of the following:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Income tax expense relating to operating income from regulated activities
 
$
51,356

 
$
58,291

 
$
76,594

 
$
65,988

 
$
48,053

 
$
48,212

 
$
56,307

Income tax expense (benefit) relating to results from nonregulated activities
 
420

 
138

 
(15,546
)
 
(4,404
)
 
(1,185
)
 
(436
)
 
(544
)
 
 
$
51,776

 
$
58,429

 
$
61,048

 
$
61,584

 
$
46,868

 
$
47,776

 
$
55,763

 
For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income before preferred stock dividends of Hawaiian Electric and before adjustment for undistributed income or loss from equity investees and (ii) fixed charges (as hereinafter defined, but excluding the allowance for borrowed funds used during construction). “Fixed charges” represent the sum of (i) interest, whether capitalized or expensed, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense and (iv) the preferred stock dividend requirements of Hawaii Electric Light and Maui Electric, increased to an amount representing the pretax earnings required to cover such dividend requirements.