EX-12.2 12 aee201710-kexhibit122.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.2
Union Electric Company
Computation of Ratio of Earnings to Fixed Charges and Combined
Fixed Charges and Preferred Stock Dividend Requirements
(in millions, except ratios)


 
Year Ended December 31,
 
2013
 
2014
 
2015(a)
 
2016
 
2017(b)
Earnings available for fixed charges, as defined:
 
 
 
 
 
 
 
 
 
Net income
$
398

 
$
393

 
$
355

 
$
360

 
$
326

Tax expense based on income
242

 
229

 
209

 
216

 
254

Fixed charges (c)
229

 
231

 
233

 
226

 
220

Earnings available for fixed charges, as defined
$
869

 
$
853

 
$
797

 
$
802

 
$
800

Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
Interest expense on short-term and long-term debt  (c)
$
219

 
$
221

 
$
224

 
$
217

 
$
211

Estimated interest cost within rental expense
3

 
3

 
3

 
3

 
3

Amortization of net debt premium, discount, and expenses
7

 
7

 
6

 
6

6

6

Total fixed charges, as defined
$
229

 
$
231

 
$
233

 
$
226

 
$
220

Ratio of earnings to fixed charges
3.8

 
3.7

 
3.4

 
3.5

 
3.6

Earnings required for combined fixed charges and preferred stock dividends:
 
 
 
 
 
 
 
 
 
Preferred stock dividends
$
3

 
$
3

 
$
3

 
$
3

 
$
3

Adjustment to pretax basis
2

 
2

 
2

 
2

 
2

 
$
5

 
$
5

 
$
5

 
$
5

 
$
5

 
 
 
 
 
 
 
 
 
 
Combined fixed charges and preferred stock dividend requirements
$
234

 
$
236

 
$
238

 
$
231

 
$
225

Ratio of earnings to combined fixed charges and preferred stock dividend requirements
3.7

 
3.6

 
3.3

 
3.5

 
3.6


 
(a)
Includes a $69 million provision for the Callaway construction and operating license. See Note 2 - Rate and Regulatory Matters under Part II, Item 8, of this Form 10-K for additional information.
(b)
Includes an increase to income tax expense of $32 million recorded in 2017 as a result of the TCJA. See Note 12 - Income Taxes under Part II, Item 8, of this Form 10-K for additional information.
(c)
Includes net interest related to uncertain tax positions.