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, September 30,
1990 1991 1992 1993 1994 1995
Fixed charges, as defined:
Interest on long-term debt $218,462 $201,335 $197,218 $172,494 $167,082 $183,987
Interest on notes payable 36,963 27,953 21,155 19,440 20,203 741
Other interest 18,380 29,169 26,564 10,561 7,957 6,251
Amortization of expense and premium on debt-net(cr) 2,192 1,999 3,479 8,104 8,892 8,926
Interest applicable to rentals 23,761 24,049 23,759 23,455 21,539 18,343
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Total fixed charges, as defined 299,758 284,505 272,175 234,054 225,673 218,248
Preferred dividends, as defined (a) 104,484 90,146 69,617 65,299 52,210 30,015
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Combined fixed charges and preferred dividends, as defined $404,242 $374,651 $341,792 $299,353 $277,883 $248,263
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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) $19,810
Add:
Income Taxes (24,216) 48,250 55,860 58,016 (62,086) 205
Fixed charges as above 299,758 284,505 272,175 234,054 225,673 218,248
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Total earnings, as defined $239,143 $445,146 $467,448 $361,532 $80,832 $238,263
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Ratio of earnings to fixed charges, as defined 0.80 1.56 1.72 1.54 0.36 1.09
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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 0.96
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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 September 30, 1995 for GSU were not adequate to cover
fixed charges and preferred dividends by $10.0 million.