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| Exhibit 12.1 |
| SOUTHERN POWER COMPANY |
| Computation of ratio of earnings to fixed charges for |
| the five years ended December 31, 2014 |
| and the three months ended March 31, 2015 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year ended December 31, | | | Three Months Ended March 31, |
| | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | 2014 | | | 2015 |
| | ---------------------------------------------Thousands of Dollars----------------------------------------------- |
| EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K: | | | | | | | | | | |
| Earnings Before Income Taxes | $ | 206,664 |
| | | 238,088 |
| | | 267,906 |
| | | 211,428 |
| | | 171,847 |
| | | 45,181 |
|
| Interest expense, net of amounts capitalized | | 76,120 |
| | | 77,334 |
| | | 62,503 |
| | | 74,475 |
| | | 88,992 |
| | | 21,965 |
|
| Interest component of rental expense | | 176 |
| | | 191 |
| | | 267 |
| | | 632 |
| | | 1,327 |
| | | 357 |
|
| Amortization of capitalized interest | | 2,905 |
| | | 3,412 |
| | | 4,498 |
| | | 6,340 |
| | | 4,555 |
| | | 1,139 |
|
| Pre-tax net loss from non-controlling interest | | — |
| | | — |
| | | — |
| | | — |
| | | 1,246 |
| | | 79 |
|
| Earnings as defined | $ | 285,865 |
| | $ | 319,025 |
| | $ | 335,174 |
| | $ | 292,875 |
| | $ | 267,967 |
| | $ | 68,721 |
|
| FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K: |
| Interest on long-term debt | $ | 85,054 |
| | | 90,479 |
| | | 78,497 |
| | | 80,572 |
| | | 85,720 |
| | | 21,174 |
|
| Interest on affiliated loans | | 8 |
| | | 534 |
| | | — |
| | | — |
| | | — |
| | | — |
|
| Interest on interim obligations | | 603 |
| | | 1,374 |
| | | 1,930 |
| | | 1,412 |
| | | 1,109 |
| | | 430 |
|
| Amortization of debt discount, premium and expense, net | | 2,098 |
| | | 2,026 |
| | | 1,169 |
| | | 1,266 |
| | | 1,261 |
| | | 315 |
|
| Other interest charges | | 466 |
| | | 922 |
| | | (1 | ) | | | 402 |
| | | 789 |
| | | 161 |
|
| Interest component of rental expense | | 176 |
| | | 191 |
| | | 267 |
| | | 632 |
| | | 1,327 |
| | | 357 |
|
| Fixed charges as defined | | 88,405 |
| | | 95,526 |
| | | 81,862 |
| | | 84,284 |
| | | 90,206 |
| | | 22,437 |
|
| RATIO OF EARNINGS TO FIXED CHARGES | | 3.23 |
| | | 3.34 |
| | | 4.09 |
| | | 3.47 |
| | | 2.97 |
| | | 3.06 |
|
| | | | | | | | | | | | | | | | | | |
| ADJUSTMENTS: | | | | | | | | | | | | | | | | | |
| Estimated net decrease in interest expense from refinancing | | | | | | | | | | | | | | (15,466 | ) | | | (3,866 | ) |
| Total pro forma fixed charges | | | | | | | | | | | | | | $ | 74,740 |
| | | $ | 18,571 |
|
| Pro forma ratio of earnings to fixed charges(1) | | | | | | | | | | | | | | 3.59 |
| | | 3.70 |
|
(1) Reflects the Ratio of Earnings to Fixed Charges on a pro forma basis for the year ended December 31, 2014 and for the three months ended March 31, 2015 after giving effect to the changes in interest expense that would result assuming the repayment of Southern Power Company’s $525,000,000 outstanding principal amount of 4.875% Series 2003A Senior Notes due July 15, 2015 (the "Series 2003A Notes") with a portion of the proceeds of the issuance of the Series 2015A 1.500% Senior Notes due June 1, 2018 (the “Series 2015A Notes”) and the Series 2015B 2.375% Senior Notes due June 1, 2020 (the “Series 2015B Notes”), as if such repayment and related issuance had occurred on January 1, 2014. This calculation assumes the proceeds from the issuance and sale of $242.3 million aggregate principal amount of the Series 2015B Notes and $282.7 million aggregate principal amount of the Series 2015A Notes were applied to repayment of the Series 2003A Notes.
