Exhibit 12.3
PINNACLE WEST CAPITAL CORPORATION
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)
Nine Months Ended September 30, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income from continuing operations attributable to common shareholders | $ | 466,827 | $ | 442,034 | $ | 437,257 | $ | 397,595 | $ | 406,074 | $ | 387,380 | |||||||||||
Income taxes | 237,497 | 236,411 | 237,720 | 220,705 | 230,591 | 237,317 | |||||||||||||||||
Fixed charges | 168,714 | 213,973 | 202,465 | 208,226 | 206,089 | 219,437 | |||||||||||||||||
Total earnings | $ | 873,038 | $ | 892,418 | $ | 877,442 | $ | 826,526 | $ | 842,754 | $ | 844,134 | |||||||||||
Fixed Charges: | |||||||||||||||||||||||
Interest expense | $ | 162,477 | $ | 205,720 | $ | 194,964 | $ | 200,950 | $ | 201,888 | $ | 214,616 | |||||||||||
Estimated interest portion of annual rents | 6,237 | 8,253 | 7,501 | 7,276 | 4,201 | 4,821 | |||||||||||||||||
Total fixed charges | $ | 168,714 | $ | 213,973 | $ | 202,465 | $ | 208,226 | $ | 206,089 | $ | 219,437 | |||||||||||
Preferred Stock Dividend Requirements: | |||||||||||||||||||||||
Income before income taxes attributable to common shareholders | $ | 704,324 | $ | 678,445 | $ | 674,977 | $ | 618,300 | $ | 636,665 | $ | 624,697 | |||||||||||
Net income from continuing operations attributable to common shareholders | 466,827 | 442,034 | 437,257 | 397,595 | 406,074 | 387,380 | |||||||||||||||||
Ratio of income before income taxes to net income | 1.51 | 1.53 | 1.54 | 1.56 | 1.57 | 1.61 | |||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | |||||||||||||||||
Preferred stock dividend requirements — ratio (above) times preferred stock dividends | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Fixed Charges and Preferred Stock Dividend Requirements: | |||||||||||||||||||||||
Fixed charges | $ | 168,714 | $ | 213,973 | $ | 202,465 | $ | 208,226 | $ | 206,089 | $ | 219,437 | |||||||||||
Preferred stock dividend requirements | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 168,714 | $ | 213,973 | $ | 202,465 | $ | 208,226 | $ | 206,089 | $ | 219,437 | |||||||||||
Ratio of Earnings to Fixed Charges (rounded down) | 5.17 | 4.17 | 4.33 | 3.96 | 4.08 | 3.84 |