Exhibit 12B
TUCSON ELECTRIC POWER COMPANY
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 $ 16,979 $ 68,341 $ 71,743 $ 76,585 $ 65,620 $ 68,678 $ 75,076
Other Interest (1) 750 1,853 1,414 1,820 273 441 211
Interest on Capital Lease Obligations 19,737 85,569 85,869 84,053 87,783 90,506 92,815
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TOTAL FIXED CHARGES 37,466 155,763 159,026 162,458 153,676 159,625 168,102
NET INCOME (4,690) 40,643 46,127 128,913 55,390 77,778 52,762
LESS:
Extraordinary Income & Accounting Change -
Net of Tax - - - 67,471 - 470 -
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NET INCOME FROM CONTINUING OPERATIONS (4,690) 40,643 46,127 61,442 55,390 77,308 52,762
ADD (DEDUCT):
(Income) Losses from Equity Investees (2) (15) (125) (131) (76) 17 700 1,543
Income Taxes (2,162) 30,581 34,815 21,090 36,434 57,545 27,610
Total Fixed Charges 37,466 155,763 159,026 162,458 153,676 159,625 168,102
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TOTAL EARNINGS BEFORE TAXES
AND FIXED CHARGES $ 30,599 $226,862 $239,837 $244,914 $245,517 $295,178 $250,017
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RATIO OF EARNINGS TO FIXED CHARGES (3) 0.817 1.456 1.508 1.508 1.598 1.849 1.487
(1) Excludes recognition of Allowance for Borrowed Funds Used During Construction.
(2) Truepricing and Inncom (income) losses.
(3) TEP's Ratio of Earnings to Fixed Charges for the 3 months ended March 31,
2005 is less than one-to-one coverage as a result of the seasonal nature of
TEP's business. In the first quarter of 2005, TEP incurred a net loss of $5
million. The amount of the deficiency needed to attain a one-to-one coverage
would be $7 million.