EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

GAS TRANSMISSION NORTHWEST CORPORATION

EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES

 

     2004
     2003
    2002
    2001
    2000
     (Dollars in Millions)

Earnings

                                    

Income (loss) from Continuing Operations

    $ (7.4 )   $ 53.9    $ 79.0    $ 76.4    $ 58.4

Adjustments:

                                    

Income taxes

      6.8       34.9      43.7      34.5      37.4

Fixed charges (as below)

      39.0       39.9      38.9      38.0      40.9
    
 
  
  
  

Total adjusted earnings

    $ 38.4     $ 128.7    $ 161.6    $ 148.9    $ 136.7
    
 
  
  
  

Fixed charges:

                                    

Net interest expense

    $ 38.2     $ 39.2    $ 35.2    $ 37.0    $ 40.4

Adjustments:

                                    

Interest component of rents

      0.3       0.3      0.4      0.3      0.1

AFUDC debt

      0.5       0.4      3.3      0.7      0.4
    
 
  
  
  

Total fixed charges

    $ 39.0     $ 39.9    $ 38.9    $ 38.0    $ 40.9
    
 
  
  
  

Ratio of earnings to fixed charges

      1.0  (a)     3.2      4.2      3.9      3.3
    
 
  
  
  

Amount of deficiency

    $ 0.7                             
(a)   Removing the impact of the charge to other income and (income deductions) for the Liberty Matter of $95.4 million and the $30.0 million tax effect thereof, net income would have been $58.0 million and the resulting ratio of earnings to fixed charges would have shown as 3.4.