EX-12.B 6 tepex12b12312013.htm EXHIBIT 12B TEP Ex 12.B 12.31.2013


Exhibit 12b
Tucson Electric Power Company
Computation of Ratio of Earnings to Fixed Charges
 
 
12 Months Ended
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
2013
 
2012
 
2011
 
2010
 
2009
 
Thousands of Dollars
Net Income
$
101,342

 
$
65,470

 
$
85,334

 
$
108,260

 
$
90,688

Add:
 
 
 
 
 
 
 
 
 
Income Tax Expense
47,986

 
39,109

 
52,000

 
59,936

 
54,220

Interest Expense, net(1)
80,793

 
91,295

 
93,786

 
93,465

 
89,715

Estimated Interest Portion of Rental Expense
842

 
611

 
795

 
72

 
106

(Income) from Equity Investees
—

 
—

 
—

 
—

 
—

Total Earnings before Taxes and Fixed Charges
$
230,963

 
$
196,485

 
$
231,915

 
$
261,733

 
$
234,729

Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest Expense
(before deducting capitalized interest)(2)
$
85,591

 
$
93,077

 
$
95,859

 
$
95,345

 
$
91,467

Estimated Interest Portion of Rental Expense
842

 
611

 
795

 
72

 
106

Total Fixed Charges
$
86,433

 
$
93,688

 
$
96,654

 
$
95,417

 
$
91,573

Ratio of Earnings to Fixed Charges
2.672

 
2.097

 
2.399

 
2.743

 
2.563

(1) 
The ratios of earnings to fixed charges for the fiscal years ended 2012, 2011, 2010, and 2009 have been revised to exclude capitalized interest from the calculation of Earnings before Taxes and Fixed Charges. Capitalized interest was not material to the calculation of Earnings before Taxes and Fixed Charges or the Ratio of Earnings to Fixed Charges in prior periods.
(2) 
Excludes recognition of Allowance for Borrowed Funds Used During Construction.