SOUTHERN CALIFORNIA EDISON COMPANY AND CONSOLIDATED UTILITY-RELATED SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars)
Pro Forma
Twelve Twelve
Year Ended December 31, Pro Forma Months Months
---------------------------------------------------------- Year Ended Ended Ended
Dec. 31 Sept. 30, Sept. 30,
1995 1996 1997 1998 1999 1999 2000 2000
--------- ----------- ----------- ----------- -------- --------- --------- ----------
EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income before interest expense(1)(6) $ 1,143,477 $1,108,410 $1,041,724 $ 850,424 $ 859,995 $ 897,951 $ 994,331 $1,032,287
Add:
Taxes on income (2) 509,632 511,819 520,468 442,356 438,006 400,050 534,704 496,748
Rentals (3) 4,018 3,269 2,639 2,208 1,901 1,901 2,631 2,631
Allocable portion of interest
on long-term Contracts for
the purchase of power (4) 1,848 1,824 1,797 1,767 1,735 1,735 1,708 1,708
Amortization of previously
capitalized fixed charges 1,185 814 1,127 1,571 1,508 1,508 1,450 1,450
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
Total earnings before income
taxes and fixed charges (A) $ 1,660,160 $1,626,136 $1,567,755 $1,298,326 $1,303,145 $1,303,145 $1,534,824 $1,534,824
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FIXED CHARGES:
Interest and amortization (7)(8) $ 463,786 $ 453,015 $ 436,130 $ 335,302 $ 350,574 $ 444,174 $ 390,815 $ 484,415
Rentals (3) 4,018 3,269 2,639 2,208 1,901 1,901 2,631 2,631
Capitalized fixed charges -
nuclear fuel (5) 1,531 1,711 2,398 1,294 1,211 1,211 919 919
Allocable portion of interest on
long-term contracts for
the purchase of power (4) 1,848 1,824 1,797 1,767 1,735 1,735 1,708 1,708
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
Total fixed charges (B) $ 471,183 $ 459,819 $ 442,964 $ 340,571 $ 355,421 $ 449,021 $ 396,073 $ 489,673
=========== =========== ========== ========== ========== ========== ========== ==========
RATIO OF EARNINGS TO
FIXED CHARGES (A) / (B): 3.52 3.54 3.54 3.81 3.67 2.90 3.88 3.13
=========== =========== ========== ========== ========== ========== ========== =========
As recorded 3.67 As recorded 3.88
========== =========
% change 20.98% % change 19.33%
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(1) Includes allowance for funds used during construction and accrual of
unbilled revenue.
(2) Includes allocation of federal income and state franchise taxes to other
income.
(3) Rentals include the interest factor relating to certain significant rentals
plus one-third of all remaining annual rentals.
(4) Allocable portion of interest included in annual minimum debt service
requirement of supplier.
(5) Includes fixed charges associated with Nuclear Fuel.
(6) Excludes Rate Reduction Notes revenues of zero from 1995-1996, $8,142,000
for 1997, $149,486,000 for 1998, $132,359,000 for 1999 and $121,629,000 for
12 months ended Sept. 30, 2000.
(7) Excludes Rate Reduction Notes interest expenses of zero from 1995-1996,
$8,142,000 for 1997, $149,486,000 for 1998, $132,359,000 for 1999 and
$121,629,000 for 12 months ended Sept. 30, 2000.
(8) Includes annualized interest expense of $93,600,000 related to the proposed
issuances of SCE $1.3 billion long-term debt @ 7.20%.