SOUTHERN CALIFORNIA EDISON COMPANY AND CONSOLIDATED UTILITY-RELATED SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars)
Year Ended December 31,
----------------------------------------------------------
2000 2001 2002 2003 2004
---------- ---------- ---------- ----------- ---------
EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income before interest expense(1) $ (2,478,036) $4,850,848 $2,473,121 $1,727,267 $1,767,449
Add:
Rentals (2) 2,905 2,128 1,240 638 776
Allocable portion of interest
on long-term Contracts for
the purchase of power (3) 1,699 1,659 1,616 1,568 1,515
Amortization of previously
capitalized fixed charges 1,390 1,083 1,440 1,638 1,405
------------ ---------- ---------- ---------- ---------
Total earnings before income
taxes and fixed charges (A) $ (2,472,042) $4,855,718 $2,477,417 $1,731,111 $1,771,145
============= ========== ========== ========== ==========
FIXED CHARGES:
Interest and amortization $ 571,760 $ 784,858 $ 584,442 $ 451,792 $ 399,169
Rentals (2) 2,905 2,128 1,240 638 776
Capitalized fixed charges -
nuclear fuel (4) 1,538 756 520 97 839
Allocable portion of interest
on long-term contracts for
the purchase of power (3) 1,699 1,659 1,616 1,568 1,515
------------ ---------- ---------- ---------- ---------
Total fixed charges (B) $ 577,902 $ 789,401 $ 587,818 $ 454,095 $ 402,299
============ ========== ========== ========= ==========
RATIO OF EARNINGS TO
FIXED CHARGES (A) / (B): (4.28)(6) 6.15 4.21 3.81 4.40
============ ========== ========== ======== ==========
Page 1
6 Months 6 Months 12 Months
Ended Ended Ended
June 30, 2004 June 30, 2005 June 30, 2005
------------- ------------- -------------
EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income before interest expense(1) $771,217 $620,204 $1,604,464
Add:
Rentals (2) 342 557 986
Allocable portion of interest
on long-term Contracts for
the purchase of power (3) 775 736 1,487
Amortization of previously
capitalized fixed charges 716 770 1,459
-------- -------- ----------
Total earnings before income
taxes and fixed charges (A) $773,050 $622,267 $1,608,396
======== ======== ==========
FIXED CHARGES:
Interest and amortization $198,910 $194,826 $ 383,112
Rentals (2) 342 557 986
Capitalized fixed charges -
nuclear fuel (4) 349 209 699
Allocable portion of interest
on long-term contracts for
the purchase of power (3) 775 736 1,487
-------- -------- ----------
Total fixed charges (B) $200,376 $196,328 $ 386,284
======== ======== ==========
RATIO OF EARNINGS TO 3.86 3.17 4.16
FIXED CHARGES (A) / (B): ======== ========= ==========
(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.
(3) Allocable portion of interest included in annual minimum debt service requirement of supplier.
(4) Includes fixed charges associated with Nuclear Fuel.
(5) Ratio for 2000 is less than 1.00. In 2000, SCE needed an additional $3,049,944,000
in earnings before income taxes and fixed charges to achieve a 1.00 ratio.
Page 2
