Exhibit 12.1
El Paso Electric Company
Computation of Ratios of Earnings to Fixed Charges
(Dollars in Thousands)
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Earnings from Continuing | ||||||||||||||||||||||||
Operations (a) | 49,569 | $ | 150,686 | $ | 116,813 | $ | 132,516 | $ | 132,238 | $ | 137,825 | |||||||||||||
Fixed Charges (b) | ||||||||||||||||||||||||
Interest charges | 37,956 | 72,847 | 67,164 | 60,278 | 59,066 | 55,822 | ||||||||||||||||||
Interest portion of rent expense | 227 | 607 | 857 | 829 | 823 | 939 | ||||||||||||||||||
Total Fixed Charges | 38,183 | 73,454 | 68,021 | 61,107 | 59,889 | 56,761 | ||||||||||||||||||
Capitalized Interest | (5,681 | ) | (16,996 | ) | (22,544 | ) | (28,122 | ) | (21,362 | ) | (20,312 | ) | ||||||||||||
Earnings (c) | $ | 82,071 | $ | 207,144 | $ | 162,290 | $ | 165,501 | $ | 170,765 | $ | 174,274 | ||||||||||||
Ratio of Earnings to Fixed Charges | 2.1 | 2.8 | 2.4 | 2.7 | 2.9 | 3.1 |
(a) | Earnings from continuing operations consist of income from continuing operations before income taxes, extraordinary item and cumulative effects of accounting changes. |
(b) | Fixed charges consist of all interest on indebtedness, amortization of debt discount and expense and the estimated portion of rental expense that represents an interest factor. |
(c) | Earnings consist of earnings from continuing operations and fixed charges less AFUDC and capitalized interest. |