Hawaiian Electric Company, Inc. PFD SER E 5% (HAWEL) 10-Q 2009 Q3 Quarterly report

HECO Exhibit 12.2

Hawaiian Electric Company, Inc. and Subsidiaries

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

	Nine months ended September 30						Years ended December 31
	2009			2008			2008			2007			2006			2005			2004
(dollars in thousands)
Fixed charges
Total interest charges	$	41,598		$	40,712		$	54,757		$	53,268		$	52,563		$	49,408		$	49,588
Interest component of rentals		1,898			1,729			2,211			2,250			1,863			1,311			909
Pretax preferred stock dividend requirements of subsidiaries		1,079			1,093			1,458			1,438			1,467			1,461			1,459
Total fixed charges	$	44,575		$	43,534		$	58,426		$	56,956		$	55,893		$	52,180		$	51,956
Earnings
Net income attributable to HECO	$	56,951		$	78,759		$	93,055		$	53,236		$	76,027		$	73,882		$	82,257
Fixed charges, as shown		44,575			43,534			58,426			56,956			55,893			52,180			51,956
Income taxes (see note below)		32,989			47,065			55,763			30,937			46,440			44,623			49,479
Allowance for borrowed funds used during construction		(4,467	)		(2,564	)		(3,741	)		(2,552	)		(2,879	)		(2,020	)		(2,542	)
Earnings available for fixed charges	$	130,048		$	166,794		$	203,503		$	138,577		$	175,481		$	168,665		$	181,150
Ratio of earnings to fixed charges		2.92			3.83			3.48			2.43			3.14			3.23			3.49
Note:
Income taxes are comprised of the following:
Income tax expense relating to operating income from regulated activities	$	33,228		$	47,507		$	56,307		$	34,126		$	47,381		$	45,029		$	50,059
Income tax benefits relating to results from nonregulated activities		(239	)		(442	)		(544	)		(3,189	)		(941	)		(406	)		(580	)
	$	32,989		$	47,065		$	55,763		$	30,937		$	46,440		$	44,623		$	49,479

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 and (iv) the preferred stock dividend requirements of HELCO and MECO, increased to an amount representing the pretax earnings required to cover such dividend requirements.