EX-12.2 6 a13-13596_1ex12d2.htm HECO EXHIBIT 12.2

HECO Exhibit 12.2

 

Hawaiian Electric Company, Inc. and Subsidiaries

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

 

 

 

Six months ended
June 30

 

Years ended December 31

 

(dollars in thousands)

 

2013

 

2012

 

2012

 

2011

 

2010

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest charges

 

$

31,155

 

$

30,742

 

$

62,056

 

$

60,031

 

$

61,510

 

$

57,944

 

$

54,757

 

Interest component of rentals

 

1,250

 

1,273

 

2,690

 

2,152

 

1,857

 

2,499

 

2,211

 

Pretax preferred stock dividend requirements of subsidiaries

 

734

 

743

 

1,467

 

1,468

 

1,461

 

1,452

 

1,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

33,139

 

$

32,758

 

$

66,213

 

$

63,651

 

$

64,828

 

$

61,895

 

$

58,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to HECO

 

$

53,662

 

$

57,216

 

$

100,356

 

$

101,066

 

$

77,669

 

$

80,526

 

$

93,055

 

Fixed charges, as shown

 

33,139

 

32,758

 

66,213

 

63,651

 

64,828

 

61,895

 

58,426

 

Income taxes (see note below)

 

32,719

 

36,034

 

61,048

 

61,584

 

46,868

 

47,776

 

55,763

 

Allowance for borrowed funds used during construction

 

(1,128

)

(1,763

)

(4,355

)

(2,498

)

(2,558

)

(5,268

)

(3,741

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

118,392

 

$

124,245

 

$

223,262

 

$

223,803

 

$

186,807

 

$

184,929

 

$

203,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

3.57

 

3.79

 

3.37

 

3.52

 

2.88

 

2.99

 

3.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes are comprised of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense relating to operating income from regulated activities

 

$

32,428

 

$

35,939

 

$

76,594

 

$

65,988

 

$

48,053

 

$

48,212

 

$

56,307

 

Income tax expense (benefit) relating to results from nonregulated activities

 

291

 

95

 

(15,546

)

(4,404

)

(1,185

)

(436

)

(544

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

32,719

 

$

36,034

 

$

61,048

 

$

61,584

 

$

46,868

 

$

47,776

 

$

55,763

 

 

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.