Exhibit 12
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS BEFORE INCOME TAXES
(in thousands of dollars, except ratios)
12 Months
Year Ended December 31, Ended
_______________________________________________ June 30,
1993 1994 1995 1996 1997 1998
________ ________ ________ ________ ________ ________
Net income........ $ 84,011 $ 81,913 $ 70,631 $ 77,393 $ 38,620 $ 43,891
Add - Extraordinary
items net of tax.. - - - - 24,853 24,853
-------- -------- -------- -------- -------- -------
Net income from
continuing
operations........ $ 84,011 $ 81,913 $ 70,631 $ 77,393 $ 63,473 $ 68,744
Add--Federal and
state income taxes:
Current......... 50,441 38,097 41,276 53,847 38,660 42,309
Deferred (net). 1,674 13,190 5,627 (2,805) (1,665) (4,146)
Deferred
investment tax
credits, net.... (3,366) (3,367) (3,361) (3,349) (3,334) (3,335)
Income tax
applicable to
nonoperating
income.......... 631 603 941 (407) 261 (394)
-------- -------- -------- -------- -------- --------
49,380 48,523 44,483 47,286 33,922 34,434
-------- -------- -------- -------- -------- --------
Net income
before income
taxes.............. 133,391 130,436 115,114 124,679 97,395 103,178
-------- -------- -------- -------- -------- --------
Add--fixed charges:
Interest on
long-term debt... 32,823 31,164 31,168 31,409 32,271 35,407
Other interest.... 479 358 853 4,636 2,875 1,948
Amortization of
net debt premium,
discount, expenses
and losses ..... 1,598 1,678 1,703 1,709 1,643 1,277
-------- -------- -------- -------- -------- --------
34,900 33,200 33,724 37,754 36,789 38,632
-------- -------- -------- -------- -------- --------
Earnings as
defined............$168,291 $163,636 $148,838 $162,433 $134,184 $141,810
======== ======== ======== ======== ======== ========
Ratio of earnings
to fixed charges.. 4.82 4.92 4.41 4.30 3.64 3.67
Earnings required
for preferred
dividends:
Preferred stock
dividends........ 3,718 3,510 3,850 3,721 3,715 3,739
Adjustment to
pre-tax basis*.. 2,185 2,079 2,425 2,273 1,985 1,873
-------- -------- -------- -------- -------- --------
5,903 5,589 6,275 5,994 5,700 5,612
-------- -------- -------- -------- -------- --------
Fixed charges
plus preferred
stock dividend
requirements.......$ 40,803 $ 38,789 $ 39,999 $ 43,748 $ 42,489 $ 44,244
======== ======== ======== ======== ======== ========
Ratio of earnings
to fixed charges
plus preferred
stock dividend
requirements....... 4.12 4.21 3.72 3.71 3.15 3.20
==== ==== ==== ==== ==== ====
* An additional charge equivalent to earnings required to adjust
dividends on preferred stock to a pre-tax basis (See below.)
{ Net income before income taxes }
{ ______________________________ -100% } X preferred dividends = earnings
{ Net income } required
for
preferred
dividends