Southwestern Electric Power Company Exhibit 12(b)
Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividend Requirements
Year Ended December 31,
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1996 1995 1994 1993 1992
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(thousands, except for ratios)
Operating Income $138,083 $162,776 $145,922 $118,057 $145,727
Adjustments:
Federal income taxes 32,931 41,131 20,622 37,108 31,478
Provision for deferred income taxes 258,499 6,287 22,248 (648) 10,258
Deferred investment tax credits (4,730) (4,786) (4,278) (5,193) (6,864)
Utility Plant development costs, net of tax (21,815) - - - -
Other income and deductions 312 178 4,656 3,658 537
Allowance for borrowed and equity
funds used during construction 2,423 9,334 6,097 2,580 182
Interest portion of financing leases 1,514 1,896 2,562 2,534 2,783
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Earnings $151,567 $216,816 $197,829 $158,096 $184,101
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Fixed Charges:
Interest on long-term debt $44,066 $44,468 $43,395 $40,958 $47,490
Interest on short-term debt and other 8,381 10,706 7,568 4,866 4,073
Interest portion of financing leases 1,514 1,896 2,562 2,534
2,783
Preferred stock dividend requirements 4,211 4,425 4,588 4,858 4,711
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$58,172 $61,495 $58,113 $53,216 $59,057
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Ratio of earnings to combined fixed
charges and preferred stock dividend
requirements 2.61 3.53 3.40 2.97 3.12