SOUTHWESTERN PUBLIC SERVICE COMPANY
EXHIBIT 12. Statements re Computation of Ratio of Earnings
Fiscal year ended August 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
(Dollars In Thousands)
Computation of Ratio of Earnings
to Fixed Charges:
Fixed charges, as defined:
Interest on long-term debt ......................... $ 44,964 $ 40,645 $ 37,881 $38,992 $41,528
Amortization of debt
premium, discount and expense .................... 577 534 518 498 314
Other interest ..................................... 6,561 3,219 3,068 2,047 1,527
Estimated interest factor of
rental charges ................................... 1,245 1,292 1,184 1,094 1,067
----- ----- ----- ----- -----
Total fixed charges ............................ $ 53,347 $ 45,690 $ 42,651 $42,631 $44,436
========= ========= ========= ======= =======
Earnings as defined:
Net earnings per consolidated
statements of earnings ........................... $ 105,773 $ 119,477 $ 102,168 $ 105,254 $102,987
Fixed charges as shown ............................. 53,347 45,690 42,651 42,631 44,436
Income taxes:
Federal .......................................... 46,435 56,297 45,232 42,272 39,101
State ............................................ 2,689 1,885 1,842 1,763 1,621
Deferred ......................................... 16,423 9,717 11,564 13,883 13,375
Investment tax credits ............................. (250) (250) (250) (250) (250)
-------- -------- -------- -------- --------
Earnings available for
fixed charges .................................... $ 224,417 $ 232,816 $ 203,207 $ 205,553 $201,270
========= ========= ========= ========= =========
Ratio of earnings to
fixed charges .................................... 4.21 5.10 4.76 4.82 4.53
========= ========= ========= ========= =========
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividend Requirements Combined:
Total fixed charges,
as shown above ................................... $53,347 $45,690 $42,651 $42,651 $44,436
Preferred dividend
requirements* .................................... 4,016 7,593 7,620 8,663 10,987
----- ----- ----- ----- ------
Total fixed charges and preferred
dividend requirements combined................ $57,363 $53,283 $50,271 $51,294 $55,423
======= ======= ======= ======= =======
Earnings available for fixed charges and preferred
dividend requirements .............................. $ 224,417 $ 232,816 $ 203,207 $ 205,553 $201,270
========= ========= ========= ========= =========
Ratio of earnings to fixed charges and preferred
dividend requirements combined ..................... 3.91 4.37 4.04 4.01 3.63
========= ========= ========= ========= =========
*Preferred dividend requirements:
Annual preferred dividend requirement ...... $ 2,494 $ 4,878 $ 4,878 $ 5,626 $ 7,243
Less amount deductible for income tax
purposes ................................. 28 82 84 84 84
--------- --------- --------- --------- --------
Net requirement [A] ................ $ 2,466 $ 4,796 $ 4,794 $ 5,542 $ 7,159
========= ========= ========= ========= =========
1 / (100% - effective tax rate) [B] ........ 1.617 1.566 1.572 1.548 1.523
========= ========= ========= ========= =========
Effective tax rate ......................... 38.2% 36.2% 36.4% 35.4% 34.3%
========= ========= ========= ========= =========
[A] x [B] .................................. $ 3,988 $ 7,511 $ 7,536 $ 8,579 $ 10,903
Add amount deductible for income tax
purposes .................................. 28 82 84 84 84
--------- --------- --------- --------- --------
Preferred dividend requirements ............ $4,016 $ 7,593 $ 7,620 $ 8,663 $ 10,987
========= ========= ========= ========= ========
82