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.