Exhibit 12 TUCSON ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS) 12 Months Ended --------------- Mar. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2000 1999 1998 1997 1996 1995 ---------------------------------------------------------------- FIXED CHARGES: Interest on Long-Term Debt $67,385 $66,836 $72,672 $66,247 $59,836 $69,174 Other Interest (1) $12,647 $13,081 $13,207 $9,640 $11,721 $9,113 Interest on Capital Lease Obligations (2) $81,630 $82,414 $81,823 $83,019 $84,383 $83,986 ---------------------------------------------------------------- TOTAL FIXED CHARGES $161,662 $162,331 $167,702 $158,906 $155,940 $162,273 NET INCOME $74,709 $73,475 $41,676 $83,572 $120,852 $54,905 LESS: 	Extraordinary Income - Net of Tax $22,597 $22,597 $0 $0 $0 $0 ---------------------------------------------------------------- NET INCOME FROM CONTINUING OPERATIONS $52,112 $50,878 $41,676 $83,572 $120,852 $54,905 ADD (DEDUCT): Income Taxes - Operating Expense $19,765 $18,268 $18,372 $19,297 $9,795 $8,920 Income Taxes - Other $4,867 $4,082 ($794) ($41,401) ($91,950) ($29,356) Total Fixed Charges $161,662 $162,331 $167,702 $158,906 $155,940 $162,273 ---------------------------------------------------------------- TOTAL EARNINGS BEFORE TAXES AND FIXED CHARGES $238,406 $235,559 $226,956 $220,374 $194,637 $196,742 RATIO OF EARNINGS TO FIXED CHARGES 1.474 1.451 1.353 1.387 1.248 1.212 (1) Excludes recognition of Allowance for Borrowed Funds Used during Construction. (2) Capital Lease Interest Paid from Statement of Cash Flows.