EXHIBIT 12
PUBLIC SERVICE COMPANY OF OKLAHOMA
Computation of Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Twelve | Six | |||||||||||||||||||||
Months | Months | |||||||||||||||||||||
Year Ended December 31, | Ended | Ended | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 6/30/2008 | 6/30/2008 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income (Loss) Before Income Taxes | $ | 91,728 | $ | 45,351 | $ | 88,378 | $ | 52,847 | $ | (46,139 | ) | $ | 44,954 | $ | 64,424 | |||||||
Fixed Charges (as below) | 46,787 | 39,475 | 36,762 | 44,769 | 54,716 | 59,488 | 32,543 | |||||||||||||||
Total Earnings | $ | 138,515 | $ | 84,826 | $ | 125,140 | $ | 97,616 | $ | 8,577 | $ | 104,442 | $ | 96,967 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 44,784 | $ | 37,957 | $ | 34,094 | $ | 40,778 | $ | 46,560 | $ | 51,858 | $ | 29,466 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 451 | 280 | 668 | 1,491 | 5,156 | 4,630 | 1,577 | |||||||||||||||
Trust Dividends | (93 | ) | (62 | ) | - | - | - | - | - | |||||||||||||
Estimated Interest Element in Lease Rentals | 1,645 | 1,300 | 2,000 | 2,500 | 3,000 | 3,000 | 1,500 | |||||||||||||||
Total Fixed Charges | $ | 46,787 | $ | 39,475 | $ | 36,762 | $ | 44,769 | $ | 54,716 | $ | 59,488 | $ | 32,543 | ||||||||
Ratio of Earnings to Fixed Charges | 2.96 | 2.14 | 3.40 | 2.18 | 0.15 | 1.75 | 2.97 |
For the year ended December 31, 2007, the Earnings to cover Fixed Charges was deficient by $46,139,000.