EX-12.2 4 ex12-2apc12312016.htm EXHIBIT 12.2 Exhibit


Exhibit 12.2
ALABAMA POWER COMPANY
Computation of ratio of earnings to fixed charges plus preferred and preference
dividend requirements for the five years ended December 31, 2016


 
Year ended December 31,
 
 
2012
 
 
2013
 
 
2014
 
 
2015
 
 
2016
 
-------------------Millions of Dollars-------------------
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Earnings Before Income Taxes
$
1,214

 
$
1,224

 
$
1,305

 
$
1,311

 
$
1,363

Distributed income of equity investees
 
7

 
 
4

 
 
2

 
 

 
 
12

  Interest expense, net of amounts capitalized
 
287

 
 
259

 
 
255

 
 
274

 
 
302

  Interest component of rental expense
 
19

 
 
17

 
 
18

 
 
19

 
 
20

  AFUDC - Debt funds
 
7

 
 
11

 
 
18

 
 
22

 
 
11

     Earnings as defined
$
1,534

 
$
1,515

 
$
1,598

 
$
1,626

 
$
1,708

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K:
 
 
 
 
 
 
 
 
 
 
 
 
  Interest on long-term debt
$
267

 
$
240

 
$
241

 
$
264

 
$
278

  Interest on affiliated loans
 
7

 
 
7

 
 
7

 
 
7

 
 
8

  Interest on interim obligations
 

 
 

 
 

 
 

 
 

  Amortization of debt discount, premium and expense, net
 
10

 
 
13

 
 
14

 
 
14

 
 
16

  Other interest charges
 
9

 
 
10

 
 
11

 
 
11

 
 
10

  Interest component of rental expense
 
19

 
 
17

 
 
18

 
 
19

 
 
20

     Fixed charges as defined
 
312

 
 
287

 
 
291

 
 
315

 
 
332

Tax deductible preferred dividends
 
1

 
 
1

 
 
1

 
 
1

 
 
1

 
 
313

 
 
288

 
 
292

 
 
316

 
 
333

Non-tax deductible preferred and preference dividends
 
38

 
 
38

 
 
38

 
 
24

 
 
16

Ratio of net income before taxes to net income
x
1.642

 
x
1.635

 
x
1.639

 
x
1.625

 
x
1.633

Preferred and preference dividend requirements before income taxes
 
62

 
 
62

 
 
62

 
 
39

 
 
26

Fixed charges plus preferred and preference dividend requirements
$
375

 
$
350

 
$
354

 
$
355

 
$
359

RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED AND PREFERENCE DIVIDEND REQUIREMENTS
 
4.07

 
 
4.31

 
 
4.50

 
 
4.57

 
 
4.74