1 EXHIBIT 12(b) UNION ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS Year Ended December 31, 12 Months ------------------------------------------------------------- Ended June 30, 1991 1992 1993 1994 1995 1996 ---- ---- ---- ---- ---- ---- (Thousands of Dollars Except Ratios) Net income for the period $321,512 $302,748 $297,160 $320,757 $314,107 $303,934 Add: Taxes based on income 218,954 197,009 182,716 203,827 207,734 206,198 Fixed charges (see below) 168,380 136,227 130,914 142,411 138,071 137,584 ------- -------- -------- -------- -------- -------- Earnings available for fixed charges and preferred stock dividend requirements of Registrant $708,846 $635,984 $610,790 $666,995 $659,912 $647,716 ======== ======== ======== ======== ======== ======== Fixed charges: Interest on debt $163,061 $125,798 $124,430 $135,608 $129,239 $129,087 Amortization of premium and discount, less expense, on debt; and bond defeasance cost 4,148 9,521 5,170 5,504 5,502 5,195 Rentals (see note) 1,171 908 1,314 1,299 3,330 3,302 -------- -------- -------- -------- -------- -------- Total fixed charges $168,380 $136,227 $130,914 $142,411 $138,071 $137,584 Preferred stock dividend requirements of Registrant* (Adjusted for income tax effect) 22,213 21,852 21,537 20,514 20,808 21,001 -------- -------- -------- -------- -------- -------- Total fixed charges and preferred stock dividend requirements $190,593 $158,079 $152,451 $162,925 $158,879 $158,585 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges and preferred dividends 3.72 4.02 4.01 4.09 4.15 4.08 ==== ==== ==== ==== ==== ==== Note: Represents the interest factor applicable to rentals. * See following page for supporting computation. 2 EXHIBIT 12(b) (continued) UNION ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS Year Ended December 31, 12 Months ------------------------------------------------------------- Ended June 30, 1991 1992 1993 1994 1995 1996 ---- ---- ---- ---- ---- ---- (Thousands of Dollars Except Ratios) Computation of preferred stock dividend requirements of Registrant, adjusted for income tax effect* Preferred stock dividend requirements of Registrant, as shown on statement of earnings $ 14,059 $ 14,058 $ 14,087 $ 13,252 $ 13,250 $ 13,249 Less deductible preferred stock dividends** 2,085 2,085 1,973 1,816 1,816 1,816 ------- ------- ------- ------- ------- ------- Non-deductible preferred stock dividends $ 11,974 $ 11,973 $ 12,114 $ 11,436 $ 11,434 $ 11,433 ======= ======= ======= ======= ======= ======= Excess of net income before income taxes over net income (percentage) See note below 68.1% 65.1% 61.5% 63.5% 66.1% 67.8% ----- ----- ----- ----- ----- ----- Income tax effect on non-deductible preferred stock dividends* $ 8,154 $ 7,794 $ 7,450 $ 7,262 $ 7,558 $ 7,752 Add: Deductible preferred stock dividends (above) 2,085 2,085 1,973 1,816 1,816 1,816 Non-deductible preferred stock dividends (above) 11,974 11,973 12,114 11,436 11,434 11,433 ------ ------ ------ ------ ------ ------ Preferred stock dividend requirements of Registrant. (Adjusted for income tax effect) $ 22,213 $ 21,852 $ 21,537 $ 20,514 $ 20,808 $ 21,001 ======= ======= ======= ======= ======= ======= Note: Calculated as follows - Net income before income taxes $540,466 $499,757 $479,876 $524,584 $521,841 $510,132 Less net income 321,512 302,748 297,160 320,757 314,107 303,934 -------- -------- -------- -------- -------- -------- Excess - Taxed based on income $218,954 $197,009 $182,716 $203,827 $207,734 $206,198 ======== ======== ======== ======== ======== ======== - Percentage of net income 68.1% 65.1% 61.5% 63.5% 66.1% 67.8% ===== ===== ===== ===== ===== ===== * Income tax adjustment to reflect pretax earnings required to meet preferred stock dividend. ** Dividends deductible on federal income tax return.