Exhibit 12A
UNISOURCE ENERGY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
3 Months Ended 12 Months Ended 12 Months Ended
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Mar. 31 Mar. 31 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2005 2004 2003 2002 2001 2000
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- Thousands of Dollars -
FIXED CHARGES:
Interest on Long-Term Debt $ 20,352 $ 80,045 $ 82,807 $ 80,844 $ 65,620 $ 68,678 $ 75,076
Other Interest (1) 840 2,530 2,098 3,709 2,123 1,287 219
Interest on Capital Lease Obligations 19,746 85,614 85,912 84,080 87,801 90,559 92,869
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TOTAL FIXED CHARGES 40,938 168,189 170,817 168,633 155,544 160,524 168,164
NET INCOME (3,783) 35,717 45,919 113,941 34,928 63,839 43,484
LESS:
Extraordinary Income & Accounting Change -
Net of Tax - - - 67,471 - 470 -
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NET INCOME FROM CONTINUING OPERATIONS (3,783) 35,717 45,919 46,470 34,928 63,369 43,484
ADD (DEDUCT):
(Income) Losses from Equity Investees 572 331 (7,121) 3,051 3,047 10,748 3,335
Income Taxes (1,526) 26,514 33,946 12,082 17,962 49,109 16,199
Total Fixed Charges 40,938 168,189 170,817 168,633 155,544 160,524 168,164
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TOTAL EARNINGS BEFORE TAXES
AND FIXED CHARGES $ 36,201 $230,751 $243,561 $230,236 $211,481 $283,750 $231,182
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RATIO OF EARNINGS TO FIXED CHARGES(2) 0.884 1.372 1.426 1.365 1.360 1.768 1.375
(1) Excludes recognition of Allowance for Borrowed Funds Used During Construction.
(2) UniSource Energy's Ratio of Earnings to Fixed Charges for the 3 months ended
March 31, 2005 is less than one-to-one coverage due to: the seasonal nature of
TEP's business; losses incurred by Global Solar; and losses from other
non-reportable segments. In the first quarter of 2005, TEP incurred a net loss
of $5 million, Global Solar incurred a net loss of $2 million and other
non-reportable segments incurred a net loss of $2 million. The amount of the
deficiency needed to attain a one-to-one coverage would be $4 million.