Exhibit 12.1 ARIZONA PUBLIC SERVICE COMPANY COMPUTATION OF EARNINGS TO FIXED CHARGES (THOUSANDS OF DOLLARS) Twelve Months Ended -------------------------------------------------------------------------- December 31 -------------------------------------------------------------------------- 2000 1999 1998 1997 1996 1995 --------- --------- --------- --------- --------- --------- Earnings: Net Income ....................... $ 306,594 $ 268,322 $ 255,247 $ 251,493 $ 243,471 $ 239,570 Income taxes (1) ................. 225,317 159,488 159,456 153,324 132,961 141,267 Fixed Charges .................... 184,173 184,327 188,568 195,055 203,855 214,768 --------- --------- --------- --------- --------- --------- Total .......................... 716,084 612,137 $ 603,271 $ 599,872 $ 580,287 $ 595,605 ========= ========= ========= ========= ========= ========= Fixed Charges: Interest expense ................. 141,886 140,948 $ 144,695 $ 150,335 $ 158,287 $ 168,175 Amortization of debt discount, premium and expense ............ 6,897 7,323 7,580 7,791 8,176 8,622 Estimated interest portion of annual rents (2) ............... 35,390 36,056 36,293 36,929 37,392 37,971 --------- --------- --------- --------- --------- --------- Total .......................... 184,173 184,327 $ 188,568 $ 195,055 $ 203,855 $ 214,768 ========= ========= ========= ========= ========= ========= Ratio of Earnings to Fixed Charges (rounded down) ................... 3.88 3.32 3.19 3.07 2.84 2.77 ========= ========= ========= ========= ========= ========= (1) Income Taxes: Charged to operations .......... 229,542 192,015 $ 192,207 $ 184,737 $ 178,513 $ 178,865 Charged (credited) to other accounts ..................... (4,225) (32,527) (32,751) (31,413) (45,552) (37,598) --------- --------- --------- --------- --------- --------- Total ........................ 225,317 159,488 $ 159,456 $ 153,324 $ 132,961 $ 141,267 ========= ========= ========= ========= ========= ========= (2) Estimated interest portion of Unit 2 lease payments included in estimated interest portion of annual rentals ................. $ 33,411 $ 33,878 $ 34,315 $ 34,720 $ 35,083 $ 35,422 ========= ========= ========= ========= ========= =========