EX-12.(B) 3 exhibit12_b.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - TEP Computation of Ratio of Earnings to Fixed Charges - TEP
Exhibit 12b

Tucson Electric Power Company
Computation of Ratio of Earnings to Fixed Charges
 

   
12 Months Ended
  
 
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
  
   
2006
 
2005
 
2004
 
2003
 
2002
  
   
- Thousands of Dollars -
  
Fixed Charges:
                      
  Interest on Long-Term Debt
 
$
51,422
  
$
56,243
  
$
69,904
  
$
76,585
  
$
65,620
  
  Other Interest (1)
    
6,436
   
2,597
   
1,263
   
1,820
   
273
 
  Interest on Capital Lease Obligations
    
72,556
   
79,064
   
85,869
   
84,053
   
87,783
 
Total Fixed Charges
    
130,414
   
137,904
   
157,036
   
162,458
   
153,676
 
                                 
Net Income
    
66,745
   
48,267
   
46,127
   
128,913
   
55,390
 
 
                                
Less:
                                
  Extraordinary Income & Accounting Change -
                                
    Net of Tax
    
-
   
(626
)
  
-
   
67,471
   
-
 
Net Income from Continuing Operations
    
66,745
   
48,893
   
46,127
   
61,442
   
55,390
 
                                 
Add (Deduct):
                                
  (Income) Losses from Equity Investees (2)
    
(320
)
  
(314
)
  
(131
)
  
(76
)
  
17
 
  Income Taxes
    
42,478
   
33,907
   
34,815
   
21,090
   
36,434
 
  Total Fixed Charges
    
130,414
   
137,904
   
157,036
   
162,458
   
153,676
 
                                 
Total Earnings before Taxes
                               
and Fixed Charges
  
$
239,317
  
$
220,390
  
$
237,847
  
$
244,914
  
$
245,517
  
                                 
                                 
Ratio of Earnings to Fixed Charges
    
1.835
   
1.598
   
1.515
   
1.508
   
1.598
 
 
 
(1)   Excludes recognition of Allowance for Borrowed Funds Used During Construction.
(2)   True Pricing, Inc. and Inncom International, Inc. (income) losses.