EXHIBIT 12
PUBLIC SERVICE COMPANY OF OKLAHOMA
Computation of Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Year Ended December 31, | Twelve Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1999 | 2000 | 2001 | 2002 | 2003 | 6/30/04 | ||||||||
Earnings: | |||||||||||||
Net Income | $61,508 | $66,663 | $57,759 | $41,060 | $53,891 | $33,661 | |||||||
Plus Federal Income Taxes | 15,693 | 8,571 | 45,484 | (43,956 | ) | 47,581 | 35,677 | ||||||
Plus State Income Taxes | 2,869 | 1,721 | 8,928 | (7,529 | ) | 6,688 | 9,350 | ||||||
Plus Provision for Deferred Income Taxes | 14,521 | 25,453 | (17,751 | ) | 75,659 | (14,641 | ) | (14,538 | ) | ||||
Plus Deferred Investment Tax Credits | (1,791 | ) | (1,791 | ) | (1,791 | ) | (1,791 | ) | (1,790 | ) | (1,790 | ) | |
Plus Fixed Charges (as below) | 39,586 | 44,465 | 46,155 | 42,377 | 46,787 | 41,904 | |||||||
Total Earnings | $132,386 | $145,082 | $138,784 | $105,820 | $138,516 | $104,264 | |||||||
Fixed Charges: | |||||||||||||
Interest on Long-term Debt | $26,528 | $26,473 | $29,305 | $28,401 | $39,631 | $38,332 | |||||||
Interest on Short-term Debt | 7,058 | 10,902 | 9,513 | 6,508 | 2,511 | 1,927 | |||||||
Distributions on Trust Preferred Securities | 6,000 | 6,000 | 6,000 | 6,000 | 3,000 | - | |||||||
Estimated Interest Element in Lease Rentals | -- | 1,090 | 1,337 | 1,468 | 1,645 | 1,645 | |||||||
Total Fixed Charges | $39,586 | $44,465 | $46,155 | $42,377 | $46,787 | $41,904 | |||||||
Ratio of Earnings to Fixed Charges | 3.34 | 3.26 | 3.00 | 2.49 | 2.96 | 2.48 | |||||||
* Certain amounts have been reclassified between interest on short-term and long-term debt compared to periods prior to January 1, 2002. This reclassification had no effect on the ratio.
* Certain amounts have been reclassified between Distributions on Trust Preferred Securities and Interest on Long-term Debt due to the implementation of FIN 46R "Consolidation of Variable Interest Entities" effective March 31, 2004, on a prospective basis. This reclassification had no effect on this ratio.