Exhibit 12.1
CALPINE CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
Years Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) before income taxes | 125 | (230 | ) | (211 | ) | 218 | 20 | 752 | ||||||||||||||||
Less: | ||||||||||||||||||||||||
Income from unconsolidated investments in power plants | (50 | ) | (16 | ) | (21 | ) | (28 | ) | (30 | ) | (18 | ) | ||||||||||||
Interest capitalized | (8 | ) | (15 | ) | (24 | ) | (38 | ) | (38 | ) | (15 | ) | ||||||||||||
Preferred securities dividend requirements of subsidiaries | (4 | ) | (3 | ) | (2 | ) | (1 | ) | (1 | ) | — | |||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 854 | 858 | 807 | 791 | 749 | 516 | ||||||||||||||||||
Amortization of capitalized interest | 31 | 31 | 31 | 30 | 30 | 22 | ||||||||||||||||||
Distributions from equity method investments | 20 | 11 | 6 | 29 | 27 | 13 | ||||||||||||||||||
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Total Earnings: | 968 | 636 | 586 | 1,001 | 757 | 1,270 | ||||||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | 815 | 813 | 760 | 736 | 696 | 491 | ||||||||||||||||||
Interest capitalized | 8 | 15 | 24 | 38 | 38 | 15 | ||||||||||||||||||
Approximation of interest in rental expense | 31 | 30 | 23 | 17 | 15 | 10 | ||||||||||||||||||
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Total Fixed Charges: | 854 | 858 | 807 | 791 | 749 | 516 | ||||||||||||||||||
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Ratio of Earnings to Fixed Charges(1): | 1.13 | 0.74 | 0.73 | 1.27 | 1.01 | 2.46 | ||||||||||||||||||
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(1) | The coverage ratio is less than one-to-one for the years ended December 31, 2010 and 2011; thus, additional earnings of $222 million and $221 million, respectively, would have needed to be generated to cover the shortfall. |