SOUTHERN CALIFORNIA EDISON
RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED AND PREFERENCE STOCK
(Millions of Dollars)
6 Months 6 Months 12 Months
Ended Ended Ended
Earnings: 2005 2006 2007 2008 2009 June 30, 2009 June 30, 2010 June 30, 2010
------- ------- ------- ------- ------- ------------- ------------- ------------
Income from continuing operations
before tax and noncontrolling interest $ 1,375 $ 1,540 $ 1,400 $ 1,246 $ 1,620 $ 689 $ 625 $ 1,556
Less: Income from equity investees - - - - - - - -
------- ------- ------- ------- ------- ------------- ------------- ------------
+a Income from continuing operations before income
from equity investees, tax and noncontrolling
interest 1,375 1,540 1,400 1,246 1,620 689 625 1,556
Add:
+b Fixed charges (see below) 411 502 540 520 535 262 272 538
+c Amortization of capitalized interest 1 1 2 2 2 1 1 2
+d Distributed income of equity investees - - - - - - - -
+e Loss of equity investees for which charges arising
from guarantees are included in fixed charges - - - - - - - -
Subtract:
-a Interest capitalized (1) (2) (3) (3) (4) (1) (4) (7)
-b Preference security dividend requirements of
consolidated subsidiaries - pre-tax basis (34) (77) (74) (75) (73) (25) (34) (75)
-c Noncontrolling interest of subsidiaries that
have not incurred fixed charges - pre-tax basis (334) (275) (305) (170) (94) (34) - (60)
------- ------- -------- -------- -------- ----------- ----------- -----------
Earnings as adjusted $ 1,418 $ 1,689 $ 1,560 $ 1,520 $ 1,986 $ 892 $ 860 $ 1,954
======= ======= ======== ======== ======== =========== =========== ===========
Fixed Charges (1):
Interest expenses - net of capitalized interest
and AFUDC $ 360 $ 399 $ 429 $ 407 $ 420 $ 215 $ 206 $ 411
Add: AFUDC 14 19 25 27 32 18 22 36
------- ------ ------- -------- ------- ------------ ----------- -----------
Interest expenses - net of capitalized interest 374 418 454 434 452 233 228 447
Interest capitalized (2) 1 3 3 3 4 1 4 7
Interest portion of rental expense (3) 1 2 8 7 5 2 5 8
Allocable portion of interest on long-term contracts
for purchased power (4) 1 2 1 1 1 1 1 1
Preferred and preference stock dividend
requirement - pre-tax basis 34 77 74 75 73 25 34 75
------- ------- ------- -------- --------- ----------- ----------- ----------
Total fixed charges $ 411 $ 502 $ 540 $ 520 $ 535 $ 262 $ 272 $ 538
======= ======= ======= ======== ========= =========== =========== ==========
Ratio 3.45 3.36 2.89 2.92 3.71 3.40 3.16 3.63
======= ======= ======= ======== ========= =========== =========== ==========
(1) Interest expenses associated with income taxes are reflected as a component of income tax expense
and are excluded from the determination of fixed charges.
(2) Includes fixed charges associated with Nuclear Fuel and capitalized interest of fifty-percent owned
partnership. The amount for 2006 is restated.
(3) Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals,
except for amounts allocated to power purchase contracts that are classified as operating leases.
(4) Allocable portion of interest included in annual minimum debt service requirement of supplier.
