Exhibit 12(b)
Gulf States Utilities Company
Computation of Ratios of Earnings to Fixed Charges and
Ratios of Earnings to Fixed Charges and Preferred and Preference 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 $231,170 $218,462 $201,335 $197,218 $172,494
Interest on long-term debt - other 19,495 12,668 19,507 21,155 19,440
Interest on notes payable 33,185 24,295 8,446 - -
Amortization of expense and premium on debt-net(cr) 2,280 2,192 1,999 3,479 8,104
Other interest 13,331 18,380 29,169 26,564 10,561
Interest applicable to rentals 23,244 23,761 24,049 23,759 23,455
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Total fixed charges, as defined 322,705 299,758 284,505 272,175 234,054
Preferred and preference dividends, as defined (a) 241,829 104,484 90,146 69,617 65,299
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Fixed charges and preferred and preference
dividends, as defined $564,534 $404,242 $374,651 $341,792 $299,353
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Earnings as defined:
Net Income (loss) before extraordinary items and
cumulative effect of accounting changes $ 13,251 $(36,399) $112,391 $139,413 $ 69,462
Add:
Provision for income taxes:
Federal & State 1,140 4,538 5,657 10,775 16,679
Deferred - net 41,028 (24,469) 46,901 47,285 40,244
Investment tax credit adjustment - net (4,424) (4,285) (4,308) (2,200) 1,093
Fixed charges as above 322,705 299,758 284,505 272,175 234,054
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Total earnings, as defined $373,700 $239,143 $445,146 $467,448 $361,532
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Ratio of earnings to fixed charges, as defined 1.16 0.80 1.56 1.72 1.54
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Ratio of earnings to fixed charges and
preferred and preference dividends, as defined 0.66 0.59 1.19 1.37 1.21
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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.
(b) Earnings for the year ended December 31, 1990, for GSU were not adequate to cover fixed charges
by $60.6 million. Earnings for the years December 31, 1990 and 1989, were not adequate
to cover fixed charges and preferred and preference dividends by $165.1 million and $190.8
million, respectively. Earnings in 1990 include a $205 million charge for the settlement of a
purchased power dispute.