Exhibit 99(a)
Arkansas Power and Light Company
Computation of Ratios of Earnings to Fixed Charges and
Ratios of Earnings to Combined Fixed Charges and Preferred Dividends
Twelve Months Ended
December 31, June 30,
1989 1990 1991 1992 1993 1994
(In Thousands, Except for Ratios)
Fixed charges, as defined:
Interest on long-term debt $89,027 $101,412 $100,533 $89,317 $77,980 $74,853
Interest on long-term debt - other 31,138 31,195 33,321 31,000 29,791 28,859
Interest on notes payable 828 1,027 -- 117 349 1,011
Amortization of expense and premium on debt-net(cr) 1,557 1,792 1,112 1,359 2,702 3,964
Other interest (6,295) 1,567 1,303 2,308 8,769 1,773
Interest applicable to rentals 22,349 24,233 21,969 17,657 16,860 15,293
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Total fixed charges, as defined 138,604 161,226 158,238 141,758 136,451 125,753
Preferred dividends, as defined (a) 31,298 30,851 31,458 32,195 30,334 26,319
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Combined fixed charges and preferred dividends, as defined $169,902 $192,077 $189,696 $173,953 $166,785 $152,072
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Earnings as defined:
Net Income $131,979 $129,765 $143,451 $130,529 $205,297 $172,796
Add:
Provision for income taxes:
Federal & State 8,440 50,921 44,418 57,089 58,162 52,741
Deferred - net 37,268 17,943 11,048 3,490 34,748 11,717
Investment tax credit adjustment - net 3,543 (12,022) (1,600) (9,989) (10,573) (10,600)
Fixed charges as above 138,604 161,226 158,238 141,758 136,451 125,753
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Total earnings, as defined $319,834 $347,833 $355,555 $322,877 $424,085 $352,407
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Ratio of earnings to fixed charges, as defined 2.31 2.16 2.25 2.28 3.11 2.80
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Ratio of earnings to combined fixed charges and
preferred dividends, as defined 1.88 1.81 1.87 1.86 2.54 2.32
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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.