Exhibit 99(a)
Arkansas Power and Light Company
Computation of Ratios of Earnings to Fixed Charges and
Ratios of Earnings to Fixed Charges and Preferred Dividends
Twelve Months Ended
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December 31, March 31,
1989 1990 1991 1992 1993 1994
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(In Thousands, Except for Ratios)
Fixed charges, as defined:
Interest on long-term debt $89,027 $101,412 $100,533 $89,317 $77,980 $76,388
Interest on long-term debt - other 31,138 31,195 33,321 31,000 29,791 29,346
Interest on notes payable 828 1,027 -- 117 349 580
Amortization of expense and premium on debt-net(cr) 1,557 1,792 1,112 1,359 2,702 3,286
Other interest (6,295) 1,567 1,303 2,308 8,769 1,484
Interest applicable to rentals 22,349 24,233 21,969 17,657 16,860 15,493
Total fixed charges, as defined 138,604 161,226 158,238 141,758 136,451 126,577
Preferred dividends, as defined (a) 31,298 30,851 31,458 32,195 30,334 26,370
Fixed charges and preferred dividends, as defined $169,902 $192,077 $189,696 $173,953 $166,785 $152,947
Earnings as defined:
Net Income $131,979 $129,765 $143,451 $130,529 $205,297 $165,604
Add:
Provision for income taxes:
Federal & State 8,440 50,921 44,418 57,089 58,162 49,779
Deferred - net 37,268 17,943 11,048 3,490 34,748 8,224
Investment tax credit adjustment - net 3,543 (12,022) (1,600) (9,989) (10,573) (10,566)
Fixed charges as above 138,604 161,226 158,238 141,758 136,451 126,577
Total earnings, as defined $319,834 $347,833 $355,555 $322,877 $424,085 $339,619
Ratio of earnings to fixed charges, as defined 2.31 2.16 2.25 2.28 3.11 2.68
Ratio of earnings to fixed charges and
preferred dividends, as defined 1.88 1.81 1.87 1.86 2.54 2.22
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(a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend
requirement by one hundred percent (100%) minus the income tax rate.