Exhibit 12.3
PINNACLE WEST CAPITAL CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)
COMPUTATION OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)
| Six Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| June 30, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (82,441 | ) | $ | 223,613 | $ | 298,744 | $ | 316,265 | $ | 227,288 | $ | 242,887 | |||||||||||
| Income taxes | (58,574 | ) | 71,918 | 150,910 | 155,855 | 129,533 | 133,771 | |||||||||||||||||
| Fixed charges | 126,581 | 241,724 | 235,705 | 225,119 | 214,430 | 214,803 | ||||||||||||||||||
| Total earnings | $ | (14,434 | ) | $ | 537,255 | $ | 685,359 | $ | 697,239 | $ | 571,251 | $ | 591,461 | |||||||||||
| Fixed Charges: | ||||||||||||||||||||||||
| Interest expense | $ | 114,757 | $ | 216,038 | $ | 208,521 | $ | 196,826 | $ | 185,087 | $ | 183,527 | ||||||||||||
| Estimated interest portion of annual rents | 11,824 | 25,686 | 27,184 | 28,293 | 29,343 | 31,276 | ||||||||||||||||||
| Total fixed charges | $ | 126,581 | $ | 241,724 | $ | 235,705 | $ | 225,119 | $ | 214,430 | $ | 214,803 | ||||||||||||
| Preferred Stock Dividend Requirements: | ||||||||||||||||||||||||
| Income before income taxes | $ | (141,015 | ) | $ | 295,531 | $ | 449,654 | $ | 472,120 | $ | 356,821 | $ | 376,658 | |||||||||||
| Net income from continuing operations | (82,441 | ) | 223,613 | 298,744 | 316,265 | 227,288 | 242,887 | |||||||||||||||||
| Ratio of income before income taxes to net income | 1.710 | 1.322 | 1.505 | 1.493 | 1.570 | 1.551 | ||||||||||||||||||
| Preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||
| Preferred stock dividend requirements — ratio (above) times preferred stock dividends | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Fixed Charges and Preferred Stock Dividend Requirements: | ||||||||||||||||||||||||
| Fixed charges | $ | 126,581 | $ | 241,724 | $ | 235,705 | $ | 225,119 | $ | 214,430 | $ | 214,803 | ||||||||||||
| Preferred stock dividend requirements | — | — | — | — | — | — | ||||||||||||||||||
| Total | $ | 126,581 | $ | 241,724 | $ | 235,705 | $ | 225,119 | $ | 214,430 | $ | 214,803 | ||||||||||||
| Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements (rounded down) | (0.11 | ) | 2.22 | 2.90 | 3.09 | 2.66 | 2.75 | |||||||||||||||||