Exhibit 99(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, March 31,
1990 1991 1992 1993 1994 1995
Fixed charges, as defined:
Interest on mortgage bonds $218,462 $201,335 $197,218 $172,494 $167,082 $166,683
Interest on notes payable 24,295 8,446 - - 763 824
Interest on long-term debt - other 12,668 19,507 21,155 19,440 19,440 19,440
Other interest 18,380 29,169 26,564 10,561 7,957 7,725
Amortization of expense and premium on debt-net(cr) 2,192 1,999 3,479 8,104 8,892 8,580
Interest applicable to rentals 23,761 24,049 23,759 23,455 21,539 19,021
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Total fixed charges, as defined 299,758 284,505 272,175 234,054 225,673 222,273
Preferred dividends, as defined (a) 104,484 90,146 69,617 65,299 52,210 50,271
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Combined fixed charges and preferred dividends, as defined $404,242 $374,651 $341,792 $299,353 $277,883 $272,544
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Earnings as defined:
Income (loss) from continuing operations before extraordinary
items and the cumulative effect of accounting changes ($36,399) $112,391 $139,413 $69,462 ($82,755) ($90,229)
Add:
Income Taxes (24,216) 48,250 55,860 58,016 (62,086) (61,281)
Fixed charges as above 299,758 284,505 272,175 234,054 225,673 222,273
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Total earnings, as defined $239,143 $445,146 $467,448 $361,532 $80,832 $70,763
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Ratio of earnings to fixed charges, as defined 0.80 1.56 1.72 1.54 0.36 0.32
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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 0.26
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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,
for GSU were not adequate to cover fixed charges and preferred dividends
by $197.1 million and $165.1 million, respectively. Earnings for the
twelve months ended March 31, 1995 for GSU were not adequate to cover
fixed charges by $151.5 million. Earnings for the twelve months ended
March 31, 1995 for GSU were not adequate to cover fixed charges and
preferred dividends by $201.8 million.