EXHIBIT 12.2
AGL Resources Inc.
Regulation S-K Integrated Disclosure Rules
Computation of Ratio of Earnings to Fixed Charges and Dividends
(Millions of Dollars)
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Nine months Nine months FY
6/30/01 6/30/00 2000
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Earnings
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Net Income $ 84.1 $ 53.7 $ 71.1
(A) Add: Income Taxes 47.8 30.7 37.2
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(B) Income from Continuing Operations Before Income Taxes $ 131.9 $ 84.4 $ 108.3
Add: Interest on Long Term Debt (Before Reduction for AFUDC) 40.9 35.2 46.7
Dividends on Preferred Stock - Pretax 9.3 7.2 9.3
Amortization of Debt Expense 0.3 0.3 0.3
Other Interest 27.7 4.3 6.9
Interest Component of Rentals (1/3 Rents) 4.6 3.8 4.0
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(C) Income as Adjusted $ 214.7 $ 135.2 $ 175.5
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Fixed Charges & Dividends
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Interest on Long Term Debt (Before Reduction for AFUDC) $ 40.9 $ 35.2 $ 46.7
Amortization of Debt Expense 0.3 0.3 0.3
Other Interest 27.7 4.3 6.9
Interest Component of Rentals (1/3 Rents) 4.6 3.8 4.0
(D) Dividends on Preferred Stock - Pretax 9.3 7.2 9.3
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(E) Fixed Charges and Preferred Dividends $ 82.8 $ 50.8 $ 67.2
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Ratio of Earnings to Fixed Charges and Dividends (C)/(E) 2.59 2.66 2.61
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(D) Computation of Dividends on Preferred Stock - Pretax
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Effective Tax Rate (A)/(B) 0.3624 0.3637 0.3435
1 Minus Effective Tax Rate (Gross-up Factor) 0.6376 0.6363 0.6565
Dividends on Preferred Stock $ 5.9 $ 4.6 $ 6.1
Divided by: Gross-up Factor 0.6376 0.6363 0.6565
Dividends on Preferred Stock - Pretax $ 9.3 $ 7.2 $ 9.3
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5yr + Q3-2001
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FY FY FY FY
1999 1998 1997 1996
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Earnings
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Net Income $ 74.3 $ 80.6 $ 76.6 $ 75.6
(A) Add: Income Taxes 39.1 38.8 46.8 47.5
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(B) Income from Continuing Operations Before Income Taxes $ 113.4 $ 119.4 $ 123.4 $ 123.1
Add: Interest on Long Term Debt (Before Reduction for AFUDC) 49.7 49.7 45.1 42.2
Dividends on Preferred Stock - Pretax 9.3 9.9 10.0 7.2
Amortization of Debt Expense 0.3 0.3 0.3 0.3
Other Interest 4.0 5.1 7.5 7.3
Interest Component of Rentals (1/3 Rents) 2.8 2.6 2.2 2.2
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(C) Income as Adjusted $ 179.5 $ 187.0 $ 188.5 $ 182.3
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Fixed Charges & Dividends
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Interest on Long Term Debt (Before Reduction for AFUDC) $ 49.7 $ 49.7 $ 45.1 $ 42.2
Amortization of Debt Expense 0.3 0.3 0.3 0.3
Other Interest 4.0 5.1 7.5 7.3
Interest Component of Rentals (1/3 Rents) 2.8 2.6 2.2 2.2
(D) Dividends on Preferred Stock - Pretax 9.3 9.9 10.0 7.2
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(E) Fixed Charges and Preferred Dividends $ 66.1 $ 67.6 $ 65.1 $ 59.2
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Ratio of Earnings to Fixed Charges and Dividends (C)/(E) 2.72 2.77 2.90 3.08
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(D) Computation of Dividends on Preferred Stock - Pretax
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Effective Tax Rate (A)/(B) 0.3448 0.3250 0.3793 0.3859
1 Minus Effective Tax Rate (Gross-up Factor) 0.6552 0.6750 0.6207 0.6141
Dividends on Preferred Stock $ 6.1 $ 6.7 $ 6.2 $ 4.4
Divided by: Gross-up Factor 0.6552 0.6750 0.6207 0.6141
Dividends on Preferred Stock - Pretax $ 9.3 $ 9.9 $ 10.0 $ 7.2
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