SOUTHERN CALIFORNIA EDISON COMPANY AND CONSOLIDATED UTILITY-RELATED SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars)
Year Ended December 31,
2003 2004 2005 2006 2007 2008
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EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income before interest expense (1) $1,727,267 $1,767,449 $1,414,472 $1,682,968 $1,549,401 $1,510,631
Add:
Rentals (2) 638 776 1,313 2,043 7,587 7,480
Allocable portion of interest
on long-term Contracts for
the purchase of power (3) 1,568 1,515 1,457 1,393 1,322 1,245
Amortization of previously capitalized
fixed charges 1,638 1,405 1,579 1,196 1,365 1,612
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Total earnings before income
taxes and fixed charges (A) $1,731,111 $1,771,145 $1,418,821 $1,687,600 $1,559,675 $1,520,968
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FIXED CHARGES (5):
Interest and amortization $ 451,792 $ 399,169 $ 370,650 $ 418,572 $ 453,426 $ 434,706
Rentals (2) 638 776 1,313 2,043 7,587 7,480
Capitalized interest (4) 1,026 839 1,075 2,811 3,079 3,055
Allocable portion of interest on
long-term contracts for
the purchase of power (3) 1,568 1,515 1,457 1,393 1,322 1,245
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Total fixed charges (B) $ 455,024 $ 402,299 $ 374,495 $ 424,819 $ 465,414 $ 446,486
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RATIO OF EARNINGS TO
FIXED CHARGES (A) / (B): 3.80 4.40 3.79 3.97 3.35 3.41
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(1) Includes allowance for funds used during construction and accrual of unbilled revenue.
(2) Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals,
except for amounts allocated to power purchase contracts that are classified as operating leases.
(3) Allocable portion of interest included in annual minimum debt service requirement of supplier.
(4) Includes fixed charges associated with Nuclear Fuel and other capitalized interest. The amounts for 2003 and 2006 are restated.
(5) Interest expenses associated with income taxes are reflected as a component of income tax expense
and are excluded from the determination of fixed charges.
