EXHIBIT 12.1 Central Power and Light Company Ratio of Earnings to Fixed Charges For Years Ended December 31, 1996 1995 1994 1993(2) 1992 --------- --------- --------- --------- --------- (thousands, except ratios) Operating income $285,647 $282,184 $256,251 $190,079 $266,665 Adjustments: Income taxes 47,227 51,755 51,329 (18,954) 34,726 Provision for deferred income taxes 51,476 (30,025) 26,659 90,520 48,610 Deferred investment tax credits (5,553) (5,789) (5,789) (5,806) (5,837) Reserve for utility plant costs, net of tax (15,569) -- -- -- -- Other income and deductions 3,997 14,880 1,272 1,663 890 Allowance for borrowed and equity funds used during construction 1,845 4,514 3,689 2,618 1,171 Mirror CWIP amortization -- 41,000 68,000 75,702 82,527 ========= ========= ========= ========= ========= Earnings $369,070 $358,519 $401,411 $335,822 $428,752 ========= ========= ========= ========= ========= Fixed charges: Interest on long-term debt $110,375 $116,205 $111,408 $112,939 $125,476 Interest on short-term debt and other 18,494 19,926 12,365 11,993 7,266 ========= ========= ========= ========= ========= Fixed charges $128,869 $136,131 $123,773 $124,932 $132,742 ========= ========= ========= ========= ========= Ratio of earnings to fixed charges 2.86 (1) 2.63 3.24 2.69 (3) 3.23 (1) Earnings in 1996 reflect a $15.6 million one-time charge, net of tax, associated with certain investments for plant sites, engineering studies and lignite reserves and the expiration in 1995 of Mirror CWIP liability amortization income. (2) Earnings in 1993 were significantly affected by restructuring charges, the $27 million cumulative effect of changes in accounting principles and prior year tax adjustments. CPL changed its method of accounting for unbilled revenues in 1993. (3) The ratio of earnings to fixed charges for 1993 was calculated before cumulative effect of change in accounting principles.