EXHIBIT 12.1
ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
TWELVE MONTHS ENDED
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SEPTEMBER 30, DECEMBER 31,
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1991
1995 1994 1993 1992 1991 (A) ADJUSTED (A) 1990
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Earnings:
Net Income ........................ $242,529 $243,486 $ 250,386 $ 246,805 $ (222,649) $ 184,380 $ 180,012
Income taxes (1) .................. 149,612 177,244 188,907 181,355 (94,750) 128,801 126,831
Fixed Charges ..................... 215,061 213,581 220,590 246,246 281,959 281,959 292,117
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Total ........................... $607,202 $634,311 $ 659,883 $ 674,406 $ (35,440) $ 595,140 $ 598,960
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Fixed Charges:
Interest expense .................. $168,764 $166,045 $ 171,272 $ 190,746 $ 227,624 $ 227,624 $ 239,992
Amortization of debt discount,
premium and expense .............. 8,136 8,854 9,203 8,000 5,995 5,995 5,302
Estimated interest portion of
annual rentals (2) ............... 38,161 38,682 40,115 47,500 48,340 48,340 46,823
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Total ........................... $215,061 $213,581 $ 220,590 $ 246,246 $ 281,959 $ 281,959 $ 292,117
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Ratio of Earnings to Fixed Charges
(rounded down) ...................... 2.82 2.96 2.99 2.73 -0.13 2.11 2.05
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(1) Income Taxes:
Charged to operations .............. $181,011 $168,202 $ 168,056 $ 164,620 $ 96,273 $ 117,408 $ 106,044
Charged (credited) to other
accounts .......................... (31,399) 9,042 20,851 16,735 (191,023) 11,393 20,787
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Total ........................... $149,612 $177,244 $ 188,907 $ 181,355 $ (94,750) $ 128,801 $ 126,831
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(2) Estimated interest portion of
Unit 2 lease payments included
in estimated interest portion
of annual rentals ................ $ 34,485 $ 35,710 $ 37,407 $ 43,581 $ 43,625 $ 43,625 $ 43,666
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(a) The write-off resulting from a December 1991 Arizona Corporation Commission
order settling the Company's then-pending rate case resulted in a negative
coverage ratio and an earnings coverage deficiency of approximately $317
million for the twelve months ended December 31, 1991. Excluding the effects
of the write-off, the coverage ratio would have been 2.11 for the same
period.