EXHIBIT 12
HAWAIIAN ELECTRIC COMPANY, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
NINE MONTHS | ||||||||||||||||||||||||||||
ENDED | ||||||||||||||||||||||||||||
YEARS ENDED DECEMBER 31, | SEPTEMBER 30, | |||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2004 | 2005 | ||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||||||||||||||
FIXED CHARGES | ||||||||||||||||||||||||||||
Total interest charges | $ | 49,062 | $ | 47,056 | $ | 44,232 | $ | 44,341 | $ | 49,588 | $ | 37,575 | $ | 37,137 | ||||||||||||||
Interest component of rentals | 696 | 728 | 663 | 820 | 909 | 612 | 928 | |||||||||||||||||||||
Pretax preferred stock dividend requirements of subsidiaries | 1,438 | 1,433 | 1,434 | 1,430 | 1,459 | 1,112 | 1,098 | |||||||||||||||||||||
Preferred securities distributions of trust subsidiaries | 7,675 | 7,675 | 7,675 | 7,675 | — | — | — | |||||||||||||||||||||
TOTAL FIXED CHARGES | $ | 58,871 | $ | 56,892 | $ | 54,004 | $ | 54,266 | $ | 51,956 | $ | 39,299 | $ | 39,163 | ||||||||||||||
EARNINGS | ||||||||||||||||||||||||||||
Income before preferred stock dividends of HECO | $ | 88,366 | $ | 89,380 | $ | 91,285 | $ | 79,991 | $ | 82,257 | $ | 68,743 | $ | 55,426 | ||||||||||||||
Fixed charges, as shown | 58,871 | 56,892 | 54,004 | 54,266 | 51,956 | 39,299 | 39,163 | |||||||||||||||||||||
Income taxes (see note below) | 55,375 | 55,416 | 56,658 | 49,824 | 49,479 | 43,055 | 33,671 | |||||||||||||||||||||
Allowance for borrowed funds used during construction | (2,922 | ) | (2,258 | ) | (1,855 | ) | (1,914 | ) | (2,542 | ) | (2,236 | ) | (1,460 | ) | ||||||||||||||
EARNINGS AVAILABLE FOR FIXED CHARGES | $ | 199,690 | $ | 199,430 | $ | 200,092 | $ | 182,167 | $ | 181,150 | $ | 148,861 | $ | 126,800 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 3.39 | 3.51 | 3.71 | 3.36 | 3.49 | 3.79 | 3.24 | |||||||||||||||||||||
NOTE: | ||||||||||||||||||||||||||||
Income taxes is comprised of the following: | ||||||||||||||||||||||||||||
Income tax expense relating to operating income from regulated activities | $ | 55,213 | $ | 55,434 | $ | 56,729 | $ | 50,175 | $ | 50,059 | $ | 43,454 | $ | 33,785 | ||||||||||||||
Income tax expense (benefit) relating to results from nonregulated activities. | 162 | (18 | ) | (71 | ) | (351 | ) | (580 | ) | (399 | ) | (114 | ) | |||||||||||||||
$ | 55,375 | $ | 55,416 | $ | 56,658 | $ | 49,824 | $ | 49,479 | $ | 43,055 | $ | 33,671 | |||||||||||||||