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
1991 1992 1993 1994 1995
Fixed charges, as defined:
Interest on long-term debt $201,335 $197,218 $172,494 $167,082 $181,994
Interest on notes payable 27,953 21,155 19,440 20,203 810
Other interest 29,169 26,564 10,561 7,957 8,074
Amortization of expense and premium on debt-net(cr) 1,999 3,479 8,104 8,892 9,346
Interest applicable to rentals 24,049 23,759 23,455 21,539 16,648
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Total fixed charges, as defined 284,505 272,175 234,054 225,673 216,872
Preferred dividends, as defined (a) 90,146 69,617 65,299 52,210 44,651
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Combined fixed charges and preferred dividends, as defined $374,651 $341,792 $299,353 $277,883 $261,523
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Earnings as defined:
Income (loss) from continuing operations before extraordinary items and
the cumulative effect of accounting changes $112,391 $139,413 $69,462 ($82,755) $122,919
Add:
Income Taxes 48,250 55,860 58,016 (62,086) 63,244
Fixed charges as above 284,505 272,175 234,054 225,673 216,872
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Total earnings, as defined $445,146 $467,448 $361,532 $80,832 $403,035
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Ratio of earnings to fixed charges, as defined 1.56 1.72 1.54 0.36 1.86
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Ratio of earnings to combined fixed charges and
preferred dividends, as defined 1.19 1.37 1.21 0.29 1.54
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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.