Exhibit 12(b)
Gulf States Utilities 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,
1990 1991 1992 1993 1994
Fixed charges, as defined:
Interest on mortgage bonds $218,462 $201,335 $197,218 $172,494 $167,082
Interest on notes payable 24,295 8,446 - - 763
Interest on long-term debt - other 12,668 19,507 21,155 19,440 19,440
Other interest 18,380 29,169 26,564 10,561 7,957
Amortization of expense and premium on debt-net(cr) 2,192 1,999 3,479 8,104 8,892
Interest applicable to rentals 23,761 24,049 23,759 23,455 21,539
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Total fixed charges, as defined 299,758 284,505 272,175 234,054 225,673
Preferred dividends, as defined (a) 104,484 90,146 69,617 65,299 52,210
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Combined fixed charges and preferred dividends, as defined $404,242 $374,651 $341,792 $299,353 $277,883
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Earnings as defined:
Income (loss) from continuing operations before extrodinary items and
the cumulative effect of accounting changes ($36,399) $112,391 $139,413 $69,462 ($82,755)
Add:
Income Taxes (24,216) 48,250 55,860 58,016 (62,086)
Fixed charges as above 299,758 284,505 272,175 234,054 225,673
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Total earnings, as defined $239,143 $445,146 $467,448 $361,532 $80,832
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Ratio of earnings to fixed charges, as defined 0.80 1.56 1.72 1.54 0.36
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Ratio of earnings to combined fixed charges and
preferred dividends, as defined 0.59 1.19 1.37 1.21 0.29
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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.
(b) Earnings for the year ended December 31, 1994 and 1990, for GSU were
not adequate to cover fixed charges by $144.8 million and $60.6 million,
respectively. Earnings for the years ended December 31, 1994 and 1990,
were not adequate to cover fixed charges and preferred dividends by
$197.1 million and $165.1 million, respectively.