EXHIBIT 12.1 ARIZONA PUBLIC SERVICE COMPANY COMPUTATION OF EARNINGS TO FIXED CHARGES(a) (THOUSANDS OF DOLLARS) Nine Months Twelve Months Ended Ended December 31, -------- ------------------------------------------------------------ 9/30/01 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- -------- Earnings: Income from continuing operations $241,801 $306,594 $268,322 $255,247 $251,493 $243,471 Income taxes .................... 156,458 195,665 133,015 133,452 129,986 103,729 Fixed Charges ................... 124,272 179,381 179,088 183,398 189,600 197,991 -------- -------- -------- -------- -------- -------- Total ........................ 522,531 681,640 580,425 572,097 571,079 545,191 ======== ======== ======== ======== ======== ======== Fixed Charges: Interest charges ................ 96,838 141,886 140,948 144,695 150,335 158,287 Amortization of debt discount ... 2,001 2,105 2,084 2,410 2,336 2,312 Estimated interest portion of annual rents ................. 25,433 35,390 36,056 36,293 36,929 37,392 -------- -------- -------- -------- -------- -------- Total fixed charges .......... 124,272 179,381 179,088 183,398 189,600 197,991 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges (rounded down) .................. 4.20 3.79 3.24 3.11 3.01 2.75 ======== ======== ======== ======== ======== ======== ---------- (a) We have reclassified certain prior year amounts to conform to the current year presentation.