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
March 31,
1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ----
(Thousands of Dollars Except Ratios)
Net income for the period $302,748 $297,160 $320,757 $314,107 $304,876 $296,366
Add:
Taxes based on income 197,009 182,716 203,827 207,734 196,210 189,991
Fixed charges (see below) 136,227 130,914 142,411 138,071 136,102 137,683
------- -------- -------- -------- -------- --------
Earnings available for fixed charges
and preferred stock dividend
requirements of Registrant $635,984 $610,790 $666,995 $659,912 $637,188 $624,040
======== ======== ======== ======== ======== ========
Fixed charges:
Interest on debt $125,798 $124,430 $135,608 $129,239 $128,375 $130,156
Amortization of premium and discount,
less expense, on debt; and
bond defeasance cost 9,521 5,170 5,504 5,502 4,269 3,811
Rentals (see note) 908 1,314 1,299 3,330 3,458 3,716
------ ---------- -------- -------- -------- --------
Total fixed charges $136,227 $130,914 $142,411 $138,071 $136,102 $137,683
Preferred stock dividend requirements
of Registrant* (Adjusted for income
tax effect) 21,852 21,537 20,514 20,808 20,612 18,759
-------- -------- -------- -------- -------- --------
Total fixed charges and preferred
stock dividend requirements $158,079 $152,451 $162,925 $158,879 $156,714 $156,442
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
and preferred dividends 4.02 4.01 4.09 4.15 4.06 3.98
==== ==== ==== ==== ==== ====
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
March 31,
1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ----
(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 $14,058 $14,087 $13,252 $13,250 $13,249 $12,141
Less deductible preferred stock
dividends** 2,085 1,973 1,816 1,816 1,816 1,816
------- ------- ------- ------- ------- -------
Non-deductible preferred stock
dividends $11,973 $12,114 $11,436 $11,434 $11,433 $10,325
======= ======= ======= ======= ======= =======
Excess of net income before income
taxes over net income (percentage)
See note below 65.1% 61.5% 63.5% 66.1% 64.4% 64.1%
----- ----- ----- ----- ----- -----
Income tax effect on non-deductible
preferred stock dividends* $7,794 $7,450 $7,262 $7,558 $7,363 $6,618
Add:
Deductible preferred stock
dividends (above) 2,085 1,973 1,816 1,816 1,816 1,816
Non-deductible preferred stock
dividends (above) 11,973 12,114 11,436 11,434 11,433 10,325
------ ------ ------ ------ ------ ------
Preferred stock dividend requirements
of Registrant. (Adjusted for income
tax effect) $21,852 $21,537 $20,514 $20,808 $20,612 $18,759
======= ======= ======= ======= ======= =======
Note: Calculated as follows -
Net income before income taxes $499,757 $479,876 $524,584 $521,841 $501,086 $486,357
Less net income 302,748 297,160 320,757 314,107 304,876 296,366
-------- -------- -------- -------- -------- --------
Excess - Taxed based on income $197,009 $182,716 $203,827 $207,734 $196,210 $189,991
======== ======== ======== ======== ======== ========
- Percentage of net income 65.1% 61.5% 63.5% 66.1% 64.4% 64.1%
===== ===== ===== ===== ===== =====
* Income tax adjustment to reflect pretax earnings required to meet preferred
stock dividend.
** Dividends deductible on federal income tax return.