Exhibit 99(b)
Gulf States Utilities Company
Computation of Ratios of Earnings to Fixed Charges and
Ratios of Earnings to Fixed Charges and Preferred Dividends
Twelve Months Ended
-----------------------------------------------------
December 31, March 31,
1989 1990 1991 1992 1993 1994
----------------------------------------------------------------
(In Thousands, Except for Ratios)
Fixed charges, as defined:
Interest on long-term debt $231,170 $218,462 $201,335 $197,218 $172,494 $171,804
Interest on notes payable 33,185 24,295 8,446 - - -
Interest on long-term debt - other 19,495 12,668 19,507 21,155 19,440 19,440
Other interest 13,331 18,380 29,169 26,564 10,561 6,109
Amortization of expense and premium on debt-net(cr) 2,280 2,192 1,999 3,479 8,104 8,368
Interest applicable to rentals 23,244 23,761 24,049 23,759 23,455 21,918
Total fixed charges, as defined 322,705 299,758 284,505 272,175 234,054 227,639
Preferred dividends, as defined (a) 241,829 104,484 90,146 69,617 65,299 62,674
Fixed charges and preferred dividends, as defined $564,534 $404,242 $374,651 $341,792 $299,353 $290,313
Earnings as defined:
Income (loss) from continuing operations before
extrodinary items and the cumulative effect of
accounting changes $13,251 ($36,399) $112,391 $139,413 $69,462 $65,498
Add:
Income taxes 37,744 (24,216) 48,250 55,860 58,016 58,532
Fixed charges as above 322,705 299,758 284,505 272,175 234,054 227,639
Total earnings, as defined $373,700 $239,143 $445,146 $467,448 $361,532 $351,669
Ratio of earnings to fixed charges, as defined 1.16 0.80 1.56 1.72 1.54 1.54
Ratio of earnings to fixed charges and
preferred dividends, as defined 0.66 0.59 1.19 1.37 1.21 1.21
(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.
(b) Earnings for the year ended December 31, 1990, for GSU were not adequate to cover fixed charges
by $60.6 million. Earnings for the years ended December 31, 1990 and 1989, were not adequate
adequate to cover fixed charges and preferred and preference dividends by $165.1 million
and $190.8 million, respectively. Earnings in 1990 include a $205 million charge for the
settlement of a purchased power dispute.