EX-12.2 11 a12-19178_1ex12d2.htm HECO EXHIBIT 12.2

HECO 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)

 

2012

 

2011

 

2011

 

2010

 

2009

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest charges

 

$

46,592

 

$

46,430

 

$

60,031

 

$

61,510

 

$

57,944

 

$

54,757

 

$

53,268

 

Interest component of rentals

 

1,996

 

1,578

 

2,152

 

1,857

 

2,499

 

2,211

 

2,250

 

Pretax preferred stock dividend requirements of subsidiaries

 

1,102

 

1,107

 

1,468

 

1,461

 

1,452

 

1,458

 

1,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

49,690

 

$

49,115

 

$

63,651

 

$

64,828

 

$

61,895

 

$

58,426

 

$

56,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to HECO

 

$

95,861

 

$

74,982

 

$

101,066

 

$

77,669

 

$

80,526

 

$

93,055

 

$

53,236

 

Fixed charges, as shown

 

49,690

 

49,115

 

63,651

 

64,828

 

61,895

 

58,426

 

56,956

 

Income taxes (see note below)

 

58,429

 

46,446

 

61,584

 

46,868

 

47,776

 

55,763

 

30,937

 

Allowance for borrowed funds used during construction

 

(2,451

)

(1,731

)

(2,498

)

(2,558

)

(5,268

)

(3,741

)

(2,552

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

201,529

 

$

168,812

 

$

223,803

 

$

186,807

 

$

184,929

 

$

203,503

 

$

138,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

4.06

 

3.44

 

3.52

 

2.88

 

2.99

 

3.48

 

2.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes are comprised of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense relating to operating income from regulated activities

 

$

58,291

 

$

46,630

 

$

65,988

 

$

48,053

 

$

48,212

 

$

56,307

 

$

34,126

 

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

 

138

 

(184

)

(4,404

)

(1,185

)

(436

)

(544

)

(3,189

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

58,429

 

$

46,446

 

$

61,584

 

$

46,868

 

$

47,776

 

$

55,763

 

$

30,937

 

 

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income before preferred stock dividends of HECO 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 HELCO and MECO, increased to an amount representing the pretax earnings required to cover such dividend requirements.