Arizona Public Service 10-Q 2013 Q1 Quarterly report

Exhibit 12.3

PINNACLE WEST CAPITAL CORPORATION

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED

STOCK DIVIDEND REQUIREMENTS

(dollars in thousands)

	Three Months Ended March 31,		Twelve Months Ended December 31,
	2013		2012		2011		2010		2009		2008
Earnings:
Income from continuing operations attributable to common shareholders	$	24,444	$	387,380	$	328,110	$	324,688	$	236,839	$	259,871
Income taxes	12,469		237,317		183,604		160,869		138,551		95,231
Fixed charges	50,588		219,437		246,462		248,664		241,807		224,760
Total earnings	$	87,501	$	844,134	$	758,176	$	734,221	$	617,197	$	579,862
Fixed Charges:
Interest expense	$	49,478	$	214,616	$	241,995	$	244,174	$	237,766	220,223
Estimated interest portion of annual rents	1,110		4,821		4,467		4,490		4,041		4,537
Total fixed charges	$	50,588	$	219,437	$	246,462	$	248,664	$	241,807	$	224,760
Preferred Stock Dividend Requirements:
Income before income taxes attributable to common shareholders	$	36,913	$	624,697	$	511,714	$	485,557	$	375,390	$	355,102
Net income from continuing operations attributable to common shareholders	24,444		387,380		328,110		324,688		236,839		259,871
Ratio of income before income taxes to net income	1.51		1.61		1.56		1.50		1.59		1.37
Preferred stock dividends	—		—		—		—		—		—
Preferred stock dividend requirements – ratio (above) times preferred stock dividends	$	—	$	—	$	—	$	—	$	—	$	—
Fixed Charges and Preferred Stock Dividend Requirements:
Fixed charges	$	50,588	$	219,437	$	246,462	$	248,664	$	241,807	$	224,760
Preferred stock dividend requirements	—		—		—		—		—		—
Total	$	50,588	$	219,437	$	246,462	$	248,664	$	241,807	$	224,760
Ratio of Earnings to Fixed Charges (rounded down)	1.72		3.84		3.07		2.95		2.55		2.57

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