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,
1990 1991 1992 1993 1994 1995
(In Thousands, Except for Ratios)
Fixed charges, as defined:
Interest on long-term debt $132,607 $133,854 $120,317 $107,771 $101,439 $102,358
Interest on notes payable 1,027 -- 117 349 1,311 718
Amortization of expense and premium on debt-net(cr) 1,792 1,112 1,359 2,702 4,563 4,492
Other interest 1,567 1,303 2,308 8,769 3,501 5,831
Interest applicable to rentals 24,233 21,969 17,657 16,860 19,140 19,014
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Total fixed charges, as defined 161,226 158,238 141,758 136,451 129,954 132,413
Preferred dividends, as defined (a) 30,851 31,458 32,195 30,334 23,234 23,678
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Combined fixed charges and preferred dividends, as defined $192,077 $189,696 $173,953 $166,785 $153,188 $156,091
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Earnings as defined:
Net Income $129,765 $143,451 $130,529 $205,297 $142,263 $134,018
Add:
Provision for income taxes:
Federal & State 50,921 44,418 57,089 58,162 83,300 80,503
Deferred - net 17,943 11,048 3,490 34,748 (17,939) (11,009)
Investment tax credit adjustment - net (12,022) (1,600) (9,989) (10,573) (36,141) (33,193)
Fixed charges as above 161,226 158,238 141,758 136,451 129,954 132,413
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Total earnings, as defined $347,833 $355,555 $322,877 $424,085 $301,437 $302,732
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Ratio of earnings to fixed charges, as defined 2.16 2.25 2.28 3.11 2.32 2.29
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Ratio of earnings to combined fixed charges and
preferred dividends, as defined 1.81 1.87 1.86 2.54 1.97 1.94
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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.