Exhibit 12.3
ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars)
Twelve Months Ended
September 30, December 31,
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1999 1998 1997 1996 1995 1994
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Earnings:
Net Income ...................... $ 130,894a $ 255,247 $ 251,493 $ 243,471 $ 239,570 $243,486
Income taxes (1) ................ 70,927 159,456 153,324 132,961 141,267 177,244
Fixed Charges ................... 185,174 188,568 195,055 203,855 214,768 213,581
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Total ......................... $ 386,995 $ 603,271 $ 599,872 $ 580,287 $ 595,605 $634,311
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Fixed Charges:
Interest expense ................ $ 141,639 $ 144,695 $ 150,335 $ 158,287 $ 168,175 $166,045
Amortization of debt discount,
premium and expense ........... 7,439 7,580 7,791 8,176 8,622 8,854
Estimated interest portion of
annual rents (2) .............. 36,096 36,293 36,929 37,392 37,971 38,682
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Total ......................... $ 185,174 $ 188,568 $ 195,055 $ 203,855 $ 214,768 $213,581
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Ratio of Earnings to Fixed Charges
(rounded down) .................. 2.08 3.19 3.07 2.84 2.77 2.96
(1) Income Taxes:
Charged to operations ........ $ 196,344 $ 192,207 $ 184,737 $ 178,513 $ 178,865 $168,202
Income Tax Benefit-
Disallowance b ............. (94,115) N/A N/A N/A N/A N/A
Charged (credited) to other
accounts ................... (31,302) (32,751) (31,413) (45,552) (37,598) 9,042
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Total ...................... $ 70,927 $ 159,456 $ 153,324 $ 132,961 $ 141,267 $177,244
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(2) Estimated interest portion of
Unit 2 lease payments included
in estimated interest portion
of annual rentals ............ $ 33,990 $ 34,315 $ 34,720 $ 35,083 $ 35,422 $ 35,710
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a Net Income for twelve months ended September 1999 reflects an extraordinary
charge for a regulatory disallowance.
b Income taxes reported on the Company's income statement are shown excluding
the effects of the regulatory disallowance.