EXHIBIT 12.3
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ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Twelve Months Ended
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December 31,
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1991
1993 1992 1991 (a) Adjusted (a) 1990 1989
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Earnings:
Net Income.................... $ 250,386 $ 246,805 $ (222,649) $ 184,380 $ 180,012 $ 212,354
Income taxes (1).............. 188,907 181,355 (94,750) 128,801 126,831 145,678
Fixed Charges................. 220,590 246,246 281,959 281,959 292,117 276,429
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Total..................... $ 659,883 $ 674,406 $ (35,440) $ 595,140 $ 598,960 $ 634,461
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Fixed Charges:
Interest expense.............. $ 171,272 $ 190,746 $ 227,624 $ 227,624 $ 239,992 $ 224,243
Amortization of debt discount,
premium and expense......... 9,203 8,000 5,995 5,995 5,302 5,967
Estimated interest portion of
annual rentals (2).......... 40,115 47,500 48,340 48,340 46,823 46,219
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Total..................... $ 220,590 $ 246,246 $ 281,959 $ 281,959 $ 292,117 $ 276,429
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Ratio of Earnings to Fixed
Charges (rounded down)........ 2.99 2.73 -0.13 2.11 2.05 2.29
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(1) Income Taxes:
Charged to operations......... $ 168,056 $ 164,620 $ 96,273 $ 117,408 $ 106,044 $ 122,674
Charged (credited) to other
accounts.................... 20,851 16,735 (191,023) 11,393 20,787 23,004
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Total..................... $ 188,907 $ 181,355 $ (94,750) $ 128,801 $ 126,831 $ 145,678
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(2) Estimated interest portion
of Unit 2 lease payments
included in estimated interest
portion of annual rentals..... $ 37,407 $ 43,581 $ 43,625 $ 43,625 $ 43,666 $ 43,703
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(a) The write-off resulting from the Arizona Corporation Commission order
settling the Company's rate case resulted in a negative coverage ratio and
an earnings coverage deficiency of approximately $317 million at December
31, 1991. Excluding the effects of the write-off, the coverage ratio would
have been 2.11 for the same period.