EX-12.1 2 npc123113ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES NPC 12.31.13 EX 12.1


EXHIBIT 12.1


NEVADA POWER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)

 
 
Years Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
 
 
 
 
 
 
 
 
 
Earnings available for fixed charges:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
145

 
$
258

 
$
133

 
$
186

 
$
134

Add (deduct):
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
94

 
138

 
71

 
92

 
62

Fixed charges
 
220

 
220

 
234

 
241

 
247

Capitalized interest (allowance for borrowed funds used during construction)
 
(6
)
 
(5
)
 
(7
)
 
(21
)
 
(17
)
 
 
308

 
353

 
298

 
312

 
292


 
 
 
 
 
 
 
 
 
 
Total earnings available for fixed charges
 
$
453

 
$
611

 
$
431

 
$
498

 
$
426


 
 
 
 
 
 
 
 
 
 
Fixed charges -
 
 
 
 
 
 
 
 
 
 
Interest expense(1)
 
220

 
220

 
234

 
241

 
247

Total fixed charges
 
$
220

 
$
220

 
$
234

 
$
241

 
$
247

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
2.06

 
2.78

 
1.84

 
2.07

 
1.72


(1)
Includes amortization of premiums, discounts, and capitalized debt expense and interest component of rent expense.

For the purpose of calculating the ratios of earnings to fixed charges, "Earnings" represents net income adjusted for income taxes plus fixed charges (excluding capitalized interest). "Fixed Charges" represent the aggregate of interest charges on long-term debt (whether expensed or capitalized) and the portion or rental expense deemed attributable to interest.