Exhibit 12(a)
Arkansas Power and Light Company
Computation of Ratios of Earnings to Fixed Charges and
Ratios of Earnings to Fixed Charges and Preferred Dividends
Years Ended
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December 31,
1989 1990 1991 1992 1993
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(In Thousands, Except for Ratios)
Fixed charges, as defined:
Interest on long-term debt $89,027 $101,412 $100,533 $ 89,317 $ 77,980
Interest on long-term debt - other 31,138 31,195 33,321 31,000 29,791
Interest on notes payable 828 1,027 --- 117 349
Amortization of expense and premium on debt-net(cr) 1,557 1,792 1,112 1,359 2,702
Other interest (6,295) 1,567 1,303 2,308 8,769
Interest applicable to rentals 22,349 24,233 21,969 17,657 16,860
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Total fixed charges, as defined 138,604 161,226 158,238 141,758 136,451
Preferred dividends, as defined (a) 31,298 30,851 31,458 32,195 30,334
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Fixed charges and preferred dividends, as defined $169,902 $192,077 $189,696 $173,953 $166,785
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Earnings as defined:
Net Income $131,979 $129,765 $143,451 $130,529 $205,297
Add:
Provision for income taxes:
Federal & State 8,440 50,921 44,418 57,089 58,162
Deferred - net 37,268 17,943 11,048 3,490 34,748
Investment tax credit adjustment - net 3,543 (12,022) (1,600) (9,989) (10,573)
Fixed charges as above 138,604 161,226 158,238 141,758 136,451
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Total earnings, as defined $319,834 $347,833 $355,555 $322,877 $424,085
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Ratio of earnings to fixed charges, as defined 2.31 2.16 2.25 2.28 3.11
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Ratio of earnings to fixed charges and
preferred dividends, as defined 1.88 1.81 1.87 1.86 2.54
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(a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend
requirement by one hundred percent (100%) minus the income tax rate.