Exhibit 12.2
SOUTHERN CALIFORNIA EDISON
RATIOS OF EARNINGS TO FIXED CHARGES (In millions, except Ratio)
Year Ended December 31, | Six months ended June 30, | ||||||||||||||||||||||||
Earnings: | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Income from continuing operations | |||||||||||||||||||||||||
before tax and noncontrolling interest | $ | 1,279 | $ | 2,039 | $ | 1,618 | $ | 1,755 | $ | 1,106 | $ | 635 | |||||||||||||
Less: Income from equity investees | — | — | — | — | — | — | |||||||||||||||||||
Income from continuing operations before income from equity investees, tax and noncontrolling interest | 1,279 | 2,039 | 1,618 | 1,755 | 1,106 | 635 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||
Fixed charges (see below) | 580 | 581 | 577 | 581 | 630 | 346 | |||||||||||||||||||
Amortization of capitalized interest (3) | 3 | 1 | — | — | — | — | |||||||||||||||||||
Distributed income of equity investees | — | — | — | — | — | — | |||||||||||||||||||
Loss of equity investees for which charges arising from guarantees are included in fixed charges | — | — | — | — | — | — | |||||||||||||||||||
Subtract: | |||||||||||||||||||||||||
Interest capitalized | (6 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||
Preference security dividend requirements of consolidated subsidiaries - pre-tax basis | — | — | — | — | — | — | |||||||||||||||||||
Noncontrolling interest of subsidiaries that have not incurred | |||||||||||||||||||||||||
fixed charges - pre-tax basis | — | — | — | — | — | — | |||||||||||||||||||
Earnings as adjusted | $ | 1,856 | $ | 2,619 | $ | 2,194 | $ | 2,335 | $ | 1,735 | $ | 980 | |||||||||||||
Fixed Charges: | |||||||||||||||||||||||||
Interest expenses - net of capitalized interest and AFUDC | $ | 523 | $ | 533 | $ | 526 | $ | 541 | $ | 589 | $ | 319 | |||||||||||||
Add: AFUDC | 31 | 25 | 31 | 23 | 28 | 21 | |||||||||||||||||||
Interest expenses - net of capitalized interest | 554 | 558 | 557 | 564 | 617 | 340 | |||||||||||||||||||
Interest capitalized (1) | 6 | 2 | 1 | 1 | 1 | 1 | |||||||||||||||||||
Interest portion of rental expense (2) | 20 | 21 | 19 | 16 | 12 | 5 | |||||||||||||||||||
Total fixed charges | $ | 580 | $ | 581 | $ | 577 | $ | 581 | $ | 630 | $ | 346 | |||||||||||||
Ratio | 3.20 | 4.51 | 3.80 | 4.02 | 2.75 | 2.83 |
(1) Includes fixed charges associated with Nuclear Fuel.
(2) | Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals. |
(3) Based on guidance, no amortization of capitalized interest is required to be included in calculation of earnings for utility industry after 2015.