EXHIBIT 12.1
ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Nine Months
Ended Twelve Months Ended
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September 30 December 31
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1999 1998 1997 1996 1995 1994
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Earnings:
Net Income...................... 92,959(a) $255,247 $251,493 $243,471 $239,570 $243,486
Income taxes (1)................ 48,065 159,456 153,324 132,961 141,267 177,244
Fixed Charges................... 138,224 188,568 195,055 203,855 214,768 213,581
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Total......................... 279,248 $603,271 $599,872 $580,287 $595,605 $634,311
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Fixed Charges:
Interest expense................ 105,612 $144,695 $150,335 $158,287 $168,175 $166,045
Amortization of debt discount,
premium and expense........... 5,604 7,580 7,791 8,176 8,622 8,854
Estimated interest portion of
annual rents (2).............. 27,008 36,293 36,929 37,392 37,971 38,682
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Total......................... 138,224 $188,568 $195,055 $203,855 $214,768 $213,581
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Ratio of Earnings to Fixed Charges
(rounded down).................. 2.02 3.19 3.07 2.84 2.77 2.96
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(1) Income Taxes:
Charged to operations........... 166,945 $192,207 $184,737 $178,513 $178,865 $168,202
Income Tax Benefit-
Disallowance(b)............... (94,115) N/A N/A N/A N/A N/A
Charged (credited) to other
accounts...................... (24,765) (32,751) (31,413) (45,552) (37,598) 9,042
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Total......................... 48,065 $159,456 $153,324 $132,961 $141,267 $177,244
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(2) Estimated interest portion of
Unit 2 lease payments included
in estimated interest portion
of annual rentals............... $ 25,384 $ 34,315 $ 34,720 $ 35,083 $ 35,422 $ 35,710
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(a) Net Income for nine months ended September 1999 reflects an
after-tax extraordinary charge of $140 million for a regulatory
disallowance.
(b) Income taxes reported on the Company's income statement are shown excluding
the effects of the regulatory disallowance.