Exhibit 12
TAMPA ELECTRIC COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the company's ratio of earnings to fixed
charges for the periods indicated.
$ millions Periods Ended Mar. 31, 2002 Year Ended December 31,
--------------------------- ------------------------------------------------------------
3 Months 12 Months 2001 2000 1999 1998 1997
-------- --------- ----- ----- ----- ----- -----
Income before income tax $ 70 $ 281 $ 274 $ 262 $ 226 $ 232 $ 235
Interest Expense (3) 20 80 82 85 82 68 69
Preferred dividends -- -- -- -- -- -- 1
----- ----- ----- ----- ----- ----- -----
Earnings before taxes
and fixed charges $ 90 $ 361 $ 356 $ 347 $ 308 $ 300 $ 305
----- ----- ----- ----- ----- ----- -----
Interest expense (3) $ 20 $ 80 $ 82 $ 85 $ 82 $ 68 $ 69
Interest on refunding bonds -- (1) (1) (1) (1) (1) (1)
Preferred dividends -- -- -- -- -- -- 1
----- ----- ----- ----- ----- ----- -----
Total fixed charges $ 20 $ 79 $ 81 $ 84 $ 81 $ 67 $ 69
----- ----- ----- ----- ----- ----- -----
Ratio of earnings to
fixed charges 4.51x 4.57x 4.41x 4.14x 3.82x(1) 4.51x(2) 4.38x
For the purposes of calculating these ratios, earnings consist of income
before income taxes and fixed charges. Fixed charges consist of interest on
indebtedness, amortization of debt premium, the interest component of rentals
and preferred stock dividend requirements.
(1) Includes the effect of one-time, pretax charges totaling $18.3 million
recorded in the third and fourth quarters of 1999. Charges consisted of the
following: $10.5 million recorded based on Florida Public Service
Commission audits of Tampa Electric's 1997 and 1998 earnings which limited
Tampa Electric's equity ratio to 58.7 percent; $3.5 million to resolve
litigation filed by the U.S. Environmental Protection Agency; and $4.3
million for corporate income tax settlements related to prior years' tax
returns. The effect of these charges was to reduce the ratio of earnings to
fixed charges. Had these charges been excluded from the calculation, the
ratio of earnings to fixed charges would have been 4.61x for the year ended
Dec. 31, 1999.
(2) Includes the effect of one-time, pretax charges totaling $16.9 million, as
more fully explained in Note I to Item 8, Financial Statements and
Supplementary Data of the Company's Annual Report on Form 10-K for the 1998
fiscal year. The effect of these charges was to reduce the ratio of
earnings to fixed charges. Had these charges been excluded from the
calculation, the ratio of earnings to fixed charges would have been 4.66x
for the year ended Dec. 31, 1998.
(3) Interest expense includes total interest expense excluding AFUDC and an
estimate of the interest component of rentals.