EX-12.2 12 a10-8130_1ex12d2.htm HECO EX-12.2

HECO Exhibit 12.2

 

Hawaiian Electric Company, Inc. and Subsidiaries

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

 

 

 

Three months ended
March 31

 

Years ended December 31

 

(dollars in thousands)

 

2010

 

2009

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest charges

 

$

15,649

 

$

13,213

 

$

57,944

 

$

54,757

 

$

53,268

 

$

52,563

 

$

49,408

 

Interest component of rentals

 

604

 

674

 

2,499

 

2,211

 

2,250

 

1,863

 

1,311

 

Pretax preferred stock dividend requirements of subsidiaries

 

364

 

361

 

1,452

 

1,458

 

1,438

 

1,467

 

1,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

16,617

 

$

14,248

 

$

61,895

 

$

58,426

 

$

56,956

 

$

55,893

 

$

52,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to HECO

 

$

18,322

 

$

14,402

 

$

80,526

 

$

93,055

 

$

53,236

 

$

76,027

 

$

73,882

 

Fixed charges, as shown

 

16,617

 

14,248

 

61,895

 

58,426

 

56,956

 

55,893

 

52,180

 

Income taxes (see note below)

 

10,961

 

8,451

 

47,776

 

55,763

 

30,937

 

46,440

 

44,623

 

Allowance for borrowed funds used during construction

 

(779

)

(1,622

)

(5,268

)

(3,741

)

(2,552

)

(2,879

)

(2,020

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

45,121

 

$

35,479

 

$

184,929

 

$

203,503

 

$

138,577

 

$

175,481

 

$

168,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

2.72

 

2.49

 

2.99

 

3.48

 

2.43

 

3.14

 

3.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes are comprised of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense relating to operating income from regulated activities

 

$

11,041

 

$

8,544

 

$

48,212

 

$

56,307

 

$

34,126

 

$

47,381

 

$

45,029

 

Income tax benefit relating to results from nonregulated activities

 

(80

)

(93

)

(436

)

(544

)

(3,189

)

(941

)

(406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,961

 

$

8,451

 

$

47,776

 

$

55,763

 

$

30,937

 

$

46,440

 

$

44,623

 

 

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income before preferred stock dividends of HECO and before adjustment for undistributed income or loss from equity investees and (ii) fixed charges (as hereinafter defined, but excluding the allowance for borrowed funds used during construction). “Fixed charges” represent the sum of (i) interest, whether capitalized or expensed, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense and (iv) the preferred stock dividend requirements of HELCO and MECO, increased to an amount representing the pretax earnings required to cover such dividend requirements.