Exhibit 12(b)2 |
ALABAMA POWER COMPANY |
Computation of ratio of earnings to fixed charges plus preferred and preference |
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 | $ | 868 | $ | 962 | $ | 1,018 | $ | 1,088 | $ | 1,204 | $ | 1,037 | ||||||
Distributed income of equity investees | 4 | 1 | 4 | 0 | 2 | 6 | ||||||||||||
Interest expense, net of amounts capitalized | 252 | 274 | 279 | 298 | 303 | 224 | ||||||||||||
Interest component of rental expense | 45 | 46 | 44 | 40 | 23 | 16 | ||||||||||||
AFUDC - Debt funds | 8 | 18 | 20 | 33 | 14 | 7 | ||||||||||||
Earnings as defined | $ | 1,177 | $ | 1,301 | $ | 1,365 | $ | 1,459 | $ | 1,546 | $ | 1,290 | ||||||
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K: | ||||||||||||||||||
Interest on long-term debt | $ | 229 | $ | 249 | $ | 263 | $ | 287 | $ | 287 | $ | 211 | ||||||
Interest on affiliated loans | 16 | 15 | 11 | 10 | 7 | 5 | ||||||||||||
Interest on interim obligations | 2 | 2 | 1 | 0 | 0 | 0 | ||||||||||||
Amort of debt disc, premium and expense, net | 13 | 14 | 12 | 11 | 10 | 8 | ||||||||||||
Other interest charges | 0 | 12 | 12 | 23 | 13 | 7 | ||||||||||||
Interest component of rental expense | 45 | 46 | 44 | 40 | 23 | 16 | ||||||||||||
Fixed charges as defined | 305 | 338 | 343 | 371 | 340 | 247 | ||||||||||||
Tax deductible preferred dividends | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||
306 | 339 | 344 | 372 | 341 | 248 | |||||||||||||
Non-tax deductible preferred and preference dividends | 24 | 35 | 38 | 38 | 38 | 29 | ||||||||||||
Ratio of net income before taxes to net income | x | 1.609 | x | 1.570 | x | 1.561 | x | 1.542 | x | 1.620 | x | 1.640 | ||||||
Preferred and preference dividend requirements before income taxes | 38 | 55 | 60 | 59 | 62 | 47 | ||||||||||||
Fixed charges plus preferred and preference dividend requirements | $ | 344 | $ | 394 | $ | 404 | $ | 431 | $ | 403 | $ | 295 | ||||||
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED | ||||||||||||||||||
AND PREFERENCE DIVIDEND REQUIREMENTS | 3.42 | 3.30 | 3.38 | 3.38 | 3.83 | 4.38 |