Item 7 Exhibit 12 Computation of Ratios
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The computations of the coverage of fixed charges, excluding the cumulative effect of the 1992
accounting change, before income taxes, and the coverage of combined fixed charges and preferred
dividends for each of the years 1995 through 1991 on the basis of parent company operations only, are
as follows.
For The Year Ended December 31,
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1995 1994 1993 1992 1991
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(Thousands of Dollars)
Net income before cumulative effect
of accounting change $218,788 $208,074 $216,478 $172,599 $186,813
Taxes based on income 129,439 116,648 107,223 76,965 80,988
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Income before taxes and cumulative effect
of accounting change 348,227 324,722 323,701 249,564 267,801
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Fixed charges:
Interest charges 146,558 139,210 141,393 138,097 138,512
Interest factor in rentals 23,431 6,300 5,859 6,140 5,690
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Total fixed charges 169,989 145,510 147,252 144,237 144,202
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Income before income taxes, cumulative
effect of accounting change and
fixed charges $518,216 $470,232 $470,953 $393,801 $412,003
======== ======== ======== ======== ========
Coverage of fixed charges 3.05 3.23 3.20 2.73 2.86
==== ==== ==== ==== ====
Preferred dividend requirements $16,851 $16,437 $16,255 $14,392 $12,298
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Ratio of pre-tax income to net income 1.59 1.56 1.50 1.45 1.43
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Preferred dividend factor $26,793 $25,642 $24,383 $20,868 $17,586
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Total fixed charges and preferred dividends $196,782 $171,152 $171,635 $165,105 $161,788
======== ======== ======== ======== ========
Coverage of combined fixed charges
and preferred dividends 2.63 2.75 2.74 2.39 2.55
==== ==== ==== ==== ====
Item 7 Exhibit 12 Computation of Ratios
---------- ---------------------
The computations of the coverage of fixed charges, excluding the cumulative effect of the 1992
accounting change, before income taxes, and the coverage of combined fixed charges and preferred
dividends for each of the years 1995 through 1991 on a fully consolidated basis are as follows.
For The Year Ended December 31,
-------------------------------------------------------
1995 1994 1993 1992 1991
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(Thousands of Dollars)
Net income before cumulative effect
of accounting change $94,391 $227,162 $241,579 $200,760 $210,164
Taxes based on income 43,731 93,953 62,145 79,481 80,737
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Income before taxes and cumulative effect
of accounting change 138,122 321,115 303,724 280,241 290,901
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Fixed charges:
Interest charges 238,724 224,514 221,312 226,453 225,323
Interest factor in rentals 26,685 9,938 9,257 6,599 6,080
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Total fixed charges 265,409 234,452 230,569 233,052 231,403
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Nonutility subsidiary capitalized interest (529) (521) (2,059) (2,200) (6,542)
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Income before income taxes, cumulative
effect of accounting change and
fixed charges $403,002 $555,046 $532,234 $511,093 $515,762
======== ======== ======== ======== ========
Coverage of fixed charges 1.52 2.37 2.31 2.19 2.23
==== ==== ==== ==== ====
Preferred dividend requirements $16,851 $16,437 $16,255 $14,392 $12,298
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Ratio of pre-tax income to net income 1.46 1.41 1.26 1.40 1.38
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Preferred dividend factor $24,602 $23,176 $20,481 $20,149 $16,971
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Total fixed charges and preferred dividends $290,011 $257,628 $251,050 $253,201 $248,374
======== ======== ======== ======== ========
Coverage of combined fixed charges
and preferred dividends 1.39 2.15 2.12 2.02 2.08
==== ==== ==== ==== ====