Exhibit 12.1
Avangrid, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in millions, except for ratio)
Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2017 | 2016 | ||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||
Income (loss) before income tax from continuing operations | $ | 1,009 | $ | 301 | $ | 706 | $ | (38 | ) | $ | 49 | $ | 638 | $ | 752 | |||||||||||||
Less: | ||||||||||||||||||||||||||||
Earnings (losses) from equity method investments | 7 | — | 12 | (3 | ) | (3 | ) | 3 | 4 | |||||||||||||||||||
Capitalized interest | 20 | 13 | 12 | 9 | 10 | 18 | 15 | |||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 312 | 298 | 272 | 271 | 340 | 244 | 241 | |||||||||||||||||||||
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Total Earnings Available for Fixed Charges | $ | 1,294 | $ | 586 | $ | 954 | $ | 227 | $ | 382 | $ | 861 | $ | 974 | ||||||||||||||
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Fixed Charges | ||||||||||||||||||||||||||||
Interest expense, net of capitalization | 268 | 267 | 243 | 245 | 316 | 210 | 212 | |||||||||||||||||||||
Capitalized interest | 20 | 13 | 12 | 9 | 10 | 18 | 15 | |||||||||||||||||||||
1/3 of rental charges (represents interest portion) | 24 | 18 | 17 | 17 | 14 | 16 | 14 | |||||||||||||||||||||
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Total Fixed Charges | $ | 312 | $ | 298 | $ | 272 | $ | 271 | $ | 340 | $ | 244 | $ | 241 | ||||||||||||||
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Ratio of Earnings to Fixed Charges (1) | 4.15 | 1.97 | 3.51 | 0.84 | 1.12 | 3.53 | 4.04 | |||||||||||||||||||||
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(1) | Income (loss) before income tax from continuing operations for the years ended December 31, 2013 and 2012, includes impairment charges of $620 million and $463 million, respectively, which had a significant effect on the ratio of earnings to fixed charges calculated for both periods. For the year ended December 31, 2013, the amount of insufficient coverage of the ratio of earnings to fixed charges was $44 million. |