EXHIBIT 12 (C)
SIERRA PACIFIC POWER COMPANY
RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Year ended December 31, | |
| | | 2007 | | | 2006 | | | 2005 | | | 2004 | | | 2003 | |
| EARNINGS AS DEFINED: | | | | | | | | | | | | | | | | | | | | |
| Income (Loss) From Continuing Operations After Interest Charges | | $ | 65,667 | | | $ | 57,709 | | | $ | 52,074 | | | $ | 18,577 | | | $ | (23,275 | ) |
| Income Taxes | | | 26,009 | | | | 27,829 | | | | 28,379 | | | | 325 | | | | (12,237 | ) |
| | | | | | | | | | | | | | | | |
| Income (Loss) From Continuing Operations before Income Taxes | | | 91,676 | | | | 85,538 | | | | 80,453 | | | | 18,902 | | | | (35,512 | ) |
| Fixed Charges | | | 75,655 | | | | 79,093 | | | | 72,652 | | | | 67,685 | | | | 101,514 | |
| Capitalized Interest (allowance for borrowed funds used during construction) | | | (12,771 | ) | | | (5,505 | ) | | | (1,504 | ) | | | (2,849 | ) | | | (3,276 | ) |
| | | | | | | | | | | | | | | | |
| Total | | $ | 154,560 | | | $ | 159,126 | | | $ | 151,601 | | | $ | 83,738 | | | $ | 62,726 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| FIXED CHARGES AS DEFINED: | | $ | 75,655 | | | $ | 79,093 | | | $ | 72,652 | | | $ | 67,685 | | | $ | 101,514 | |
| Interest Expensed and Capitalized (1) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Total | | | 75,655 | | | | 79,093 | | | | 72,652 | | | $ | 67,685 | | | $ | 101,514 | |
| | | | | | | | | | | | | | | | |
| RATIO OF EARNINGS TO FIXED CHARGES | | | 2.04 | | | | 2.01 | | | | 2.09 | | | | 1.24 | | | | | |
| DEFICIENCY | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 38,788 | |
| | |
| (1) | | Includes amortization of premiums, discounts, and capitalized debt expense and interest component of rent expense. |
For the purpose of calculating the ratios of earnings to fixed charges, “Fixed charges” represent the aggregate of interest charges on short-term and long-term debt (whether expensed or capitalized) and the portion of rental expense deemed attributable to interest. “Earnings” represents pre-tax income (or loss) from continuing operations before pre-tax preferred stock dividend requirement and fixed charges (excluding capitalized interest).
