EX-12 7 exhibit12.htm COMPUTATION OF RATIOS AGL Resources Inc

AGL Resources Inc.

Computation of Ratio of Earnings to Fixed Charges

(Dollars in millions)

 

For the years ended September 30,

2001

2000

1999

1998

1997

Ratio of Earnings to Interest Charges

Ratio of Earnings to Interest Charges and

Preferred Stock Dividends

Earnings before interest and taxes

$ 236.2

$ 166.0

$ 172.6

$ 180.5

$ 181.8

Add:

AFUDC - debt portion

1.5

2.0

0.7

0.4

0.4

(A)

Earnings for interest and preferred coverage

237.7

168.0

173.3

180.9

182.2

Interest on long-term debt (before reduction for AFUDC)

57.4

46.7

49.7

49.7

45.1

Other interest

31.0

6.9

4.0

5.1

7.5

(B)

Total interest expense (before reduction for AFUDC)

88.4

53.6

53.7

54.8

52.6

Dividends on preferred stock

10.5

6.1

6.1

6.7

6.2

(C)

Total interest and preferred stock dividends

$ 98.9

$ 59.7

$ 59.8

$ 61.5

$ 58.8

Ratio of earnings to interest charges (A)/(B)

2.69

3.13

3.23

3.30

3.46

Ratio of earnings to interest charges and

preferred stock dividends (A)/(C)

2.40

2.81

2.90

2.94

3.10

Ratio of Earnings to Combined Fixed Charges and

Preferred Stock Dividends

Earnings

$ 88.9

$ 71.1

$ 74.3

$ 80.6

$ 76.6

(A)

Add:

Income taxes

49.9

37.2

39.1

38.8

46.8

(B)

Income from continuing operations before income taxes

138.8

108.3

113.4

119.4

123.4

Add:

Interest on long-term debt (before reduction

for AFUDC)

57.4

46.7

49.7

49.7

45.1

Dividends on preferred stock - pretax (D)

16.4

9.3

9.3

9.9

10.0

Amortization of debt expense

0.6

0.3

0.3

0.3

0.3

Other interest

31.0

6.9

4.0

5.1

7.5

Interest Component of Rentals (1/3 Rents)

5.9

4.0

2.8

2.6

2.2

(C)

Earnings as adjusted

$ 250.1

$ 175.5

$ 179.5

$ 187.0

$ 188.5

Computation of Dividends on Preferred Stock - Pretax

Effective tax rate (A)/(B)

0.3595

0.3435

0.3448

0.3250

0.3793

1 minus effective tax rate (gross-up factor)

0.6405

0.6565

0.6552

0.6750

0.6207

Dividends on preferred stock

$ 10.5

$ 6.1

$ 6.1

$ 6.7

$ 6.2

Divided by gross-up factor

0.6405

0.6565

0.6552

0.6750

0.6207

(D)

Dividends on preferred stock - pretax

$ 16.4

$ 9.3

$ 9.3

$ 9.9

$ 10.0

Fixed Charges & Dividends

Interest on long-term debt (before reduction for AFUDC)

$ 57.4

$ 46.7

$ 49.7

$ 49.7

$ 45.1

Amortization of debt expense

0.6

0.3

0.3

0.3

0.3

Other interest

31.0

6.9

4.0

5.1

7.5

Interest component of rentals (1/3 rent expense)

5.9

4.0

2.8

2.6

2.2

(D)

Dividends on preferred stock - pretax

16.4

9.3

9.3

9.9

10.0

(E)

Combined fixed charges and preferred stock dividends

$ 111.3

$ 67.2

$ 66.1

$ 67.6

$ 65.1

Ratio of earnings to combined fixed charges and

preferred stock dividends (C)/(E)

2.25

2.61

2.72

2.77

2.90