Exhibit 12.1 CALENERGY COMPANY, INC. Ratio of Earnings to Fixed Charges (Dollars in Thousands, Except Ratio) Nine Months Ended September 30, Year Ended December 31, ------------------- ------------------------------------------- 1997 1996 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- ----- ---- Pre-tax income from continuing operations... $208,675 $108,216 $135,713 $97,051 $55,836 $61,258 $50,732 Loss on equity investment in unconsolidated subsidiary ............. 5,321 3,966 5,221 362 __ __ __ Undistributed income from less than fifty-percent-owned subsidiaries ........... (3,301) __ __ __ __ __ __ Preferred stock dividends of subsidiaries, gross of tax.................. (3,187) __ __ __ __ __ __ Dividends on convertible preferred securities of subsidiary trusts....... (13,955) (3,067) __ __ __ __ __ Capitalized interest, net of amortization......... (31,189) (29,878) (37,476) (31,160) (9,196) (6,174) (5,202) -------------------------------------------------------------------- 162,364 79,237 103,458 66,253 46,640 55,084 45,530 -------------------------------------------------------------------- Fixed Charges: Interest expense and amortization of deferred finance charges on all indebtedness......... 216,106 116,521 165,900 134,637 62,837 30,205 20,459 Interest portion of lease rentals........ 2,261 45 60 60 109 247 253 Dividends on convertibe preferred securities of subsidiary trusts 13,955 3,067 4,691 __ __ __ __ Preferred stock dividends of subsidiaries, gross of tax .............. 3,187 __ __ __ __ __ __ -------------------------------------------------------------------- Total fixed charges. 235,509 119,633 170,651 134,697 62,946 30,452 20,712 -------------------------------------------------------------------- Earnings before income and fixed charges...... $397,873 $198,870 $274,109 $200,950 $109,586 $85,536 $66,242 ==================================================================== Ratio of earnings to fixed charges.......... 1.689 1.662 1.606 1.492 1.741 2.809 3.198 ====================================================================