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EXHIBIT 12.1
CALPINE CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
YTD 2003
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
1999 2000 2001 2002 2003
--------- --------- ----------- ----------- -----------
(IN THOUSANDS)
COMPUTATION OF EARNINGS:
Pretax income before adjustment for minority interests in
consolidated subsidiaries and income or loss from equity investees .. 140,454 537,242 862,289 24,909 60,246
Fixed charges ....................................................... 165,354 355,093 790,929 1,088,775 1,254,654
Amortization of capitalized interest ................................ 331 447 2,425 11,980 19,539
Distributed income of equity investees .............................. 43,318 29,979 5,983 14,117 141,627
Interest capitalized ................................................ (47,300) (206,973) (498,723) (575,446) (444,584)
Minority interest in pretax income of subsidiaries that have not
incurred fixed charges .............................................. 265 (895) -- -- --
Distribution of HIGH TIDES .......................................... (2,565) (45,076) (62,412) (62,632) (46,610)
-------- -------- ---------- ---------- ----------
Total Earnings ...................................................... 299,857 669,817 1,100,491 501,703 984,872
COMPUTATION OF FIXED CHARGES:
Interest expensed and capitalized ................................... 150,548 288,863 695,344 989,136 1,170,687
Estimate of interest within rental expense .......................... 12,241 21,154 33,173 37,007 37,357
Distributions on HIGH TIDES ......................................... 2,565 45,076 62,412 62,632 46,610
-------- -------- ---------- ---------- ----------
Total fixed charges ................................................. 165,354 355,093 790,929 1,088,775 1,254,654
RATIO OF EARNINGS TO FIXED CHARGES .................................. 1.81x 1.89x 1.39x -- --(i)
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(i) For the year ended December 31, 2003, the Company had an
earnings-to-fixed-charges coverage deficiency of approximately $269.8
million, primarily as a result of (1) a pre-tax charge to earnings of $64.4
million for equipment cancellation and asset impairment and $16.4 million
for long-term service agreement cancellation charges, (2) increased
interest costs due to recent debt financings to support our growth, and (3)
a decrease in average spark spreads per megawatt-hour and higher fuel
expense in 2003 as compared with the same period in 2002.
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