Exhibit 12
8/6/2004
GULF POWER COMPANY
------------------
Computation of ratio of earnings to fixed charges for
the five years ended December 31, 2003
and the year to date June 30, 2004
Six
Months
Ended
Year ended December 31, June 30,
--------------------------------------------------------------------
1999 2000 2001 2002 2003 2004
---- ---- ---- ---- ---- ----
-------------------------------Thousands of Dollars-----------------
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K:
Earnings before income taxes $ 86,515 $ 82,607 $ 89,716 $104,397 $110,104 $ 57,263
Interest expense, net of amounts capitalized 26,860 28,086 25,034 31,452 31,069 17,179
Distributions on mandatorily redeemable preferred securities 6,200 6,200 6,477 8,524 7,085 1,113
AFUDC - Debt funds 0 440 2,510 1,392 314 385
--------- --------- --------- -------- --------- ---------
Earnings as defined $ 119,575 $ 117,333 $ 123,737 $145,765 $148,572 $ 75,940
========= ========= ========= ======== ======== =========
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K:
Interest on long-term debt $ 21,375 $ 22,622 $ 24,520 $ 28,815 $ 27,194 $ 13,815
Interest on affiliated loans 0 0 396 629 202 1,218
Interest on interim obligations 2,371 2,804 768 446 197 0
Amort of debt disc, premium and expense, net 1,989 2,047 2,059 2,591 2,895 1,553
Other interest charges 1,126 1,052 (199) 363 895 978
Distributions on mandatorily redeemable preferred securities 6,200 6,200 6,477 8,524 7,085 1,113
--------- -------- --------- -------- -------- ---------
Fixed charges as defined $ 33,061 $ 34,725 $ 34,021 $ 41,368 $ 38,468 $ 18,677
========= ========= ========= ======== ========= =========
RATIO OF EARNINGS TO FIXED CHARGES 3.62 3.38 3.64 3.52 3.86 4.07
===== ===== ===== ===== ===== ====