Exhibit 12(e)2 | ||||||||||||||||||
MISSISSIPPI POWER COMPANY | ||||||||||||||||||
Computation of ratio of earnings to fixed charges plus preferred | ||||||||||||||||||
dividend requirements for the five years ended December 31, 2010 | ||||||||||||||||||
and the year to date September 30, 2011 |
Nine | ||||||||||||||||||
Months | ||||||||||||||||||
Ended | ||||||||||||||||||
Year ended December 31, | September 30, | |||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||
--------------------------------------Thousands of Dollars-------------------------------------- | ||||||||||||||||||
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K: | ||||||||||||||||||
Earnings before income taxes | $ | 131,840 | $ | 137,594 | $ | 136,042 | $ | 136,914 | $ | 128,225 | $ | 117,541 | ||||||
Interest expense, net of amounts capitalized | 18,640 | 18,158 | 17,979 | 22,940 | 22,341 | 15,401 | ||||||||||||
Interest component of rental expense (a) | 30,306 | 30,386 | 31,139 | 30,279 | 30,089 | 22,172 | ||||||||||||
AFUDC - Debt funds | 0 | 12 | 229 | 117 | 2,903 | 4,832 | ||||||||||||
Earnings as defined | $ | 180,786 | $ | 186,150 | $ | 185,389 | $ | 190,250 | $ | 183,558 | $ | 159,946 | ||||||
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K: | ||||||||||||||||||
Interest on long-term debt | $ | 11,808 | $ | 12,440 | $ | 15,467 | $ | 20,620 | $ | 21,795 | $ | 17,376 | ||||||
Interest capitalized as a regulatory asset | 10,567 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Interest on affiliated loans | 3,881 | 4,095 | 730 | 47 | 33 | 14 | ||||||||||||
Interest on interim obligations | 1,425 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Amort of debt disc, premium and expense, net | 1,061 | 1,055 | 1,204 | 1,399 | 1,624 | 1,403 | ||||||||||||
Other interest charges | 465 | 580 | 807 | 991 | 1,792 | 1,745 | ||||||||||||
Interest component of rental expense (a) | 30,306 | 30,386 | 31,139 | 30,279 | 30,089 | 22,172 | ||||||||||||
Fixed charges as defined | 59,513 | 48,556 | 49,347 | 53,336 | 55,333 | 42,710 | ||||||||||||
Tax deductible preferred dividends | 192 | 192 | 192 | 192 | 192 | 144 | ||||||||||||
59,705 | 48,748 | 49,539 | 53,528 | 55,525 | 42,854 | |||||||||||||
Non-tax deductible preferred dividends | 1,541 | 1,541 | 1,541 | 1,541 | 1,541 | 1,155 | ||||||||||||
Ratio of net income before taxes to net income | x | 1.574 | x | 1.604 | x | 1.551 | x | 1.579 | x | 1.565 | x | 1.484 | ||||||
Preferred dividend requirements before income taxes | 2,426 | 2,472 | 2,390 | 2,433 | 2,412 | 1,714 | ||||||||||||
Fixed charges plus preferred dividend requirements | $ | 62,131 | $ | 51,220 | $ | 51,929 | $ | 55,961 | $ | 57,937 | $ | 44,568 | ||||||
RATIO OF EARNINGS TO FIXED CHARGES PLUS | ||||||||||||||||||
PREFERRED DIVIDEND REQUIREMENTS | 2.91 | 3.63 | 3.57 | 3.40 | 3.17 | 3.59 | ||||||||||||
(a) Includes the interest component of rentals where determinable plus one-third of remaining rental expense. |