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
September 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 $316,294
Add:
Taxes based on income 218,954 197,009 182,716 203,827 207,734 210,972
Fixed charges (see below) 168,380 136,227 130,914 142,411 138,071 136,862
------- -------- -------- -------- -------- --------
Earnings available for fixed charges
and preferred stock dividend
requirements of Registrant $708,846 $635,984 $610,790 $666,995 $659,912 $664,128
======== ======== ======== ======== ======== ========
Fixed charges:
Interest on debt $163,061 $125,798 $124,430 $135,608 $129,239 $128,828
Amortization of premium and discount,
less expense, on debt; and
bond defeasance cost 4,148 9,521 5,170 5,504 5,502 4,731
Rentals (see note) 1,171 908 1,314 1,299 3,330 3,303
-------- -------- -------- -------- -------- --------
Total fixed charges $168,380 $136,227 $130,914 $142,411 $138,071 $136,862
Preferred stock dividend requirements
of Registrant* (Adjusted for income
tax effect) 22,213 21,852 21,537 20,514 20,808 20,875
-------- -------- -------- -------- -------- --------
Total fixed charges and preferred
stock dividend requirements $190,593 $158,079 $152,451 $162,925 $158,879 $157,737
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
and preferred dividends 3.72 4.02 4.01 4.09 4.15 4.21
==== ==== ==== ==== ==== ====
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
September 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% 66.7%
----- ----- ----- ----- ----- -----
Income tax effect on non-deductible
preferred stock dividends* $8,154 $7,794 $7,450 $7,262 $7,558 $7,626
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 $20,875
======= ======= ======= ======= ======= =======
Note: Calculated as follows -
Net income before income taxes $540,466 $499,757 $479,876 $524,584 $521,841 $527,266
Less net income 321,512 302,748 297,160 320,757 314,107 316,294
-------- -------- -------- -------- -------- --------
Excess - Taxed based on income $218,954 $197,009 $182,716 $203,827 $207,734 $210,972
======== ======== ======== ======== ======== ========
- Percentage of net income 68.1% 65.1% 61.5% 63.5% 66.1% 66.7%
===== ===== ===== ===== ===== =====
* Income tax adjustment to reflect pretax earnings required to meet preferred
** stock dividend. Dividends deductible on federal income tax return.