Exhibit 12 TUCSON ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES -In Thousands- 6 Months Ended ----------------------12 Months Ended--------------------------- Jun. 30, Jun. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2001 2001 2000 1999 1998 1997 1996 ------- ------- ------- ------- ------- ------- -------- FIXED CHARGES: Interest on Long-Term Debt (1) $31,676 $64,024 $66,377 $66,836 $72,672 $66,247 $59,836 Other Interest (2) $4,014 $7,954 $9,067 $13,081 $13,207 $9,640 $11,721 Interest on Capital Lease Obligations (3) $42,450 $85,290 $90,365 $82,414 $81,823 $83,019 $84,383 -------- -------- -------- -------- -------- -------- -------- TOTAL FIXED CHARGES $78,140 $157,268 $165,809 $162,331 $167,702 $158,906 $155,940 NET INCOME $42,415 $80,283 $51,169 $73,475 $41,676 $83,572 $120,852 LESS: Extraordinary Income - Net of Tax $470 $470 $0 $22,597 $0 $0 $0 -------- -------- -------- -------- -------- -------- ------- NET INCOME FROM CONTINUING OPERATIONS $41,945 $79,813 $51,169 $50,878 $41,676 $83,572 $120,852 ADD (DEDUCT): Income Taxes - Operating Expense $27,181 $49,335 $19,036 $18,268 $18,372 $19,297 $9,795 Income Taxes - Other $4,855 $8,496 $7,530 $4,082 ($794) ($41,401) ($91,950) Total Fixed Charges $78,140 $157,268 $165,809 $162,331 $167,702 $158,906 $155,940 -------- -------- -------- -------- -------- -------- -------- TOTAL EARNINGS BEFORE TAXES AND FIXED CHARGES $152,121 $294,912 $243,544 $235,559 $226,956 $220,374 $194,637 RATIO OF EARNINGS TO FIXED CHARGES 1.947 1.875 1.469 1.451 1.353 1.387 1.248 (1) Amounts have been restated for years ended 1996 and 1997 to conform to current year's presentation. (2) Excludes recognition of Allowance for Borrowed Funds Used During Construction. (3) Capital Lease Interest Paid from Statement of Cash Flows.