Exhibit 12 TUCSON ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 9 Months 12 Months Ended Ended ---------------------------------------------------------------- Sep. 30, Sep. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2001 2001 2000 1999 1998 1997 1996 - ----------------------------------------------------------------------------------------------------------------------- - Thousands of Dollars - FIXED CHARGES: Interest on Long-Term Debt (1) $ 46,672 $ 62,820 $ 66,377 $ 66,836 $ 72,672 $ 66,247 $ 59,836 Other Interest (2) 5,979 7,951 9,067 13,081 13,207 9,640 11,721 Interest on Capital Lease Obligations (3) 78,824 78,874 90,365 82,414 81,823 83,019 84,383 - ----------------------------------------------------------------------------------------------------------------------- TOTAL FIXED CHARGES 131,475 149,645 165,809 162,331 167,702 158,906 155,940 NET INCOME 56,855 74,888 51,169 73,475 41,676 83,572 120,852 LESS: Extraordinary Income - Net of Tax 470 470 - 22,597 - - - - ----------------------------------------------------------------------------------------------------------------------- NET INCOME FROM CONTINUING OPERATIONS 56,385 74,418 51,169 50,878 41,676 83,572 120,852 ADD (DEDUCT): Income Taxes - Operating Expense 36,537 47,629 19,036 18,268 18,372 19,297 9,795 Income Taxes - Other 7,182 8,922 7,530 4,082 (794) (41,401) (91,950) Total Fixed Charges 131,475 149,645 165,809 162,331 167,702 158,906 155,940 - ----------------------------------------------------------------------------------------------------------------------- TOTAL EARNINGS BEFORE TAXES AND FIXED CHARGES $231,579 $280,614 $243,544 $235,559 $226,956 $220,374 $194,637 ======================================================================================================================= RATIO OF EARNINGS TO FIXED CHARGES 1.761 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.