EXHIBIT 12.1
ARIZONA PUBLIC SERVICE COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Six Months
Ended Twelve Months Ended
June 30, 2000 December 31
------------- -----------------------------------------------------------------
2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net Income ........................ $ 128,626 $ 128,437(a) $ 255,247 $ 251,493 $ 243,471 $ 239,570
Income taxes (a) .................. 95,582 65,373 159,456 153,324 132,961 141,267
Fixed Charges ..................... 92,125 184,327 188,568 195,055 203,855 214,768
--------- --------- --------- --------- --------- ---------
Total ........................... $ 316,333 $ 378,137 $ 603,271 $ 599,872 $ 580,287 $ 595,605
========= ========= ========= ========= ========= =========
Fixed Charges:
Interest expense .................. $ 71,065 $ 140,948 $ 144,695 $ 150,335 $ 158,287 $ 168,175
Amortization of debt discount,
premium and expense ............. 3,468 7,323 7,580 7,791 8,176 8,622
Estimated interest portion of
annual rents (b) ................ 17,592 36,056 36,293 36,929 37,392 37,971
--------- --------- --------- --------- --------- ---------
Total ........................... $ 92,125 $ 184,327 $ 188,568 $ 195,055 $ 203,855 $ 214,768
========= ========= ========= ========= ========= =========
Ratio of Earnings to Fixed Charges
(rounded down) .................... 3.43 2.05 3.19 3.07 2.84 2.77
========= ========= ========= ========= ========= =========
(1) Income Taxes:
Charged to operations .......... $ 95,708 $ 192,015 $ 192,207 $ 184,737 $ 178,513 $ 178,865
Income Tax Benefit-
Disallowance (b) ............. N/A (94,115) N/A N/A N/A N/A
Charged (credited) to other
accounts ..................... (126) (32,527) (32,751) (31,413) (45,552) (37,598)
--------- --------- --------- --------- --------- ---------
Total ........................ $ 95,582 $ 65,373 $ 159,456 $ 153,324 $ 132,961 $ 141,267
========= ========= ========= ========= ========= =========
(2) Estimated interest portion of
Unit 2 lease payments included
in estimated interest portion of
annual rentals ................. $ 16,671 $ 33,878 $ 34,315 $ 34,720 $ 35,083 $ 35,422
========= ========= ========= ========= ========= =========
</TABLE>
--------
(a) Net Income for twelve months ended December 1999 reflects an after-tax
extraordinary charge of $140 million for a regulatory disallowance.
(b) Income taxes reported on the Company's income statement are shown excluding
the effects of the regulatory disallowance.
