HECO Exhibit 12.2
Hawaiian Electric Company, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
| Six months ended June 30 |
Years ended December 31 | |||||||||||||||||||||||||||
| 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||
| Fixed charges |
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| Total interest charges |
$ | 27,093 | $ | 26,779 | $ | 52,563 | $ | 49,408 | $ | 49,588 | $ | 44,341 | $ | 44,232 | ||||||||||||||
| Interest component of rentals |
1,120 | 929 | 1,863 | 1,311 | 909 | 820 | 663 | |||||||||||||||||||||
| Pretax preferred stock dividend requirements of subsidiaries |
692 | 736 | 1,467 | 1,461 | 1,459 | 1,430 | 1,434 | |||||||||||||||||||||
| Preferred securities distributions of trust subsidiaries |
— | — | — | — | — | 7,675 | 7,675 | |||||||||||||||||||||
| Total fixed charges |
$ | 28,905 | $ | 28,444 | $ | 55,893 | $ | 52,180 | $ | 51,956 | $ | 54,266 | $ | 54,004 | ||||||||||||||
| Earnings |
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| Income before preferred stock dividends of HECO |
$ | 11,643 | $ | 38,814 | $ | 76,027 | $ | 73,882 | $ | 82,257 | $ | 79,991 | $ | 91,285 | ||||||||||||||
| Fixed charges, as shown |
28,905 | 28,444 | 55,893 | 52,180 | 51,956 | 54,266 | 54,004 | |||||||||||||||||||||
| Income taxes (benefit) (see note below) |
6,205 | 23,932 | 46,440 | 44,623 | 49,479 | 49,824 | 56,658 | |||||||||||||||||||||
| Allowance for borrowed funds used during construction |
(1,184 | ) | (1,421 | ) | (2,879 | ) | (2,020 | ) | (2,542 | ) | (1,914 | ) | (1,855 | ) | ||||||||||||||
| Earnings available for fixed charges |
$ | 45,569 | $ | 89,769 | $ | 175,481 | $ | 168,665 | $ | 181,150 | $ | 182,167 | $ | 200,092 | ||||||||||||||
| Ratio of earnings to fixed charges |
1.58 | 3.16 | 3.14 | 3.23 | 3.49 | 3.36 | 3.71 | |||||||||||||||||||||
| Note: |
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| Income taxes (benefit) is comprised of the following: |
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| Income tax expense relating to operating income from regulated activities |
$ | 10,998 | $ | 24,244 | $ | 47,381 | $ | 45,029 | $ | 50,059 | $ | 50,175 | $ | 56,729 | ||||||||||||||
| Income tax benefits relating to results from nonregulated activities |
(4,793 | ) | (312 | ) | (941 | ) | (406 | ) | (580 | ) | (351 | ) | (71 | ) | ||||||||||||||
| $ | 6,205 | $ | 23,932 | $ | 46,440 | $ | 44,623 | $ | 49,479 | $ | 49,824 | $ | 56,658 | |||||||||||||||
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, (iv) the preferred stock dividend requirements of HELCO and MECO, increased to an amount representing the pretax earnings required to cover such dividend requirements, and (v) in 2003 and prior years when the trust subsidiaries were consolidated, the preferred securities distribution requirements of the trust subsidiaries.