Exhibit 12.1
ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Three
Months
Ended Twelve Months Ended
March 31 December 31,
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2001 2000 1999(a) 1999(b) 1998 1997 1996
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Earnings:
Net Income $ 61,851 $ 306,594 $ 128,437 $ 268,322 $ 255,247 $ 251,493 $ 243,471
Income taxes 49,790 225,317 65,373 159,488 159,456 153,324 132,961
Fixed Charges 43,749 184,173 184,327 184,327 188,568 195,055 203,855
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Total $ 155,390 $ 716,084 $ 378,137 $ 612,137 $ 603,271 $ 599,872 $ 580,287
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Fixed Charges:
Interest expense $ 33,542 $ 141,886 $ 140,948 $ 140,948 $ 144,695 $ 150,335 $ 158,287
Amortization of debt discount,
premium and expense 1,384 6,897 7,323 7,323 7,580 7,791 8,176
Estimated interest portion of
annual rents 8,823 35,390 36,056 36,056 36,293 36,929 37,392
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Total $ 43,749 $ 184,173 $ 184,327 $ 184,327 $ 188,568 $ 195,055 $ 203,855
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Ratio of Earnings to Fixed Charges
(rounded down) 3.55 3.88 2.05 3.32 3.19 3.07 2.84
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(1) Income Taxes:
Charged to operations $ 51,010 $ 229,542 $ 192,015 $ 192,015 $ 192,207 $ 184,737 $ 178,513
Income Tax Benefit -
Disallowance (c) N/A N/A (94,115) N/A N/A N/A N/A
Charged (credited) to other
accounts (1,220) (4,225) (32,527) (32,527) (32,751) (31,413) (45,552)
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Total $ 49,790 $ 225,317 $ 65,373 $ 159,488 $ 159,456 $ 153,324 $ 132,961
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(2) Estimated interest portion of
Unit 2 lease payments included
in estimated interest portion of
annual rentals $ 8,093 $ 33,411 $ 33,878 $ 33,878 $ 34,315 $ 34,720 $ 35,083
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(a) Net Income for twelve months ended December 1999 reflects an after-tax
extraordinary charge of $140 million for a regulatory disallowance.
(b) Net Income is shown excluding the effects of the regulatory disallowance.
(c) Income taxes reported on the Company's income statement are shown excluding
the effects of the regulatory disallowance.