Exhibit 12 TUCSON ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Nine Months 12 Months Ended Ended -------------------------------------------------------------------- Sep. 30, Sep. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2003 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ - Thousands of Dollars - Fixed Charges: Interest on Long-Term Debt $ 57,384 $ 74,889 $ 65,620 $ 68,678 $ 66,377 $ 66,836 $ 72,672 Other Interest (1) 1,587 1,562 273 441 9,067 13,081 13,207 Interest on Capital Lease Obligations (2) 62,781 84,721 87,783 90,506 92,658 82,414 81,823 - ------------------------------------------------------------------------------------------------------------------------------ Total Fixed Charges 121,752 161,172 153,676 159,625 168,102 162,331 167,702 ============================================================================================================================== Net Income 102,971 114,609 53,737 75,284 51,169 73,475 41,676 Less: Extraordinary Income & Accounting Change - Net of Tax 67,471 67,471 - 470 - 22,597 - - ------------------------------------------------------------------------------------------------------------------------------ Net Income from Continuing Operations 35,500 47,138 53,737 74,814 51,169 50,878 41,676 Add (Deduct): Losses (Gains) from Equity Investees (3) (85) (347) 17 700 1,543 - - Income Taxes 26,962 34,944 35,350 55,910 26,566 22,350 17,578 Total Fixed Charges 121,752 161,172 153,676 159,625 168,102 162,331 167,702 - ------------------------------------------------------------------------------------------------------------------------------ Total Earnings Before Taxes and Fixed Charges $184,129 $242,907 $242,780 $291,049 $247,380 $235,559 $226,956 ============================================================================================================================== Ratio of Earnings to Fixed Charges 1.512 1.507 1.580 1.823 1.472 1.451 1.353 <FN> (1) Excludes recognition of Allowance for Borrowed Funds Used During Construction. (2) Amounts have been restated for year ended 2001 to conform to current year's presentation. (3) Inncom losses (gains). </FN>