EX-12.2 3 heco-6302015xex122.htm EXHIBIT 12.2
Hawaiian Electric Exhibit 12.2
Hawaiian Electric Company, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)

|  | Six months ended June 30 |  | Years ended December 31
(dollars in thousands) |  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total interest charges |  | $ | 33,043 |  |  | $ | 33,455 |  |  | $ | 66,132 |  |  | $ | 64,130 |  |  | $ | 62,056 |  |  | $ | 60,031 |  |  | $ | 61,510 |
Interest component of rentals |  | 1,567 |  |  | 1,661 |  |  | 3,244 |  |  | 2,793 |  |  | 2,690 |  |  | 2,152 |  |  | 1,857 |
Pretax preferred stock dividend requirements of subsidiaries |  | 721 |  |  | 727 |  |  | 1,444 |  |  | 1,421 |  |  | 1,467 |  |  | 1,468 |  |  | 1,461 |
Total fixed charges |  | $ | 35,331 |  |  | $ | 35,843 |  |  | $ | 70,820 |  |  | $ | 68,344 |  |  | $ | 66,213 |  |  | $ | 63,651 |  |  | $ | 64,828 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Hawaiian Electric |  | $ | 60,255 |  |  | $ | 70,190 |  |  | $ | 138,721 |  |  | $ | 124,009 |  |  | $ | 100,356 |  |  | $ | 101,066 |  |  | $ | 77,669 |
Fixed charges, as shown |  | 35,331 |  |  | 35,843 |  |  | 70,820 |  |  | 68,344 |  |  | 66,213 |  |  | 63,651 |  |  | 64,828 |
Income taxes |  | 34,961 |  |  | 41,644 |  |  | 80,725 |  |  | 69,117 |  |  | 61,048 |  |  | 61,584 |  |  | 46,868 |
Interest capitalized |  | (1,611 | ) |  | (2,017 | ) |  | (3,954 | ) |  | (7,097 | ) |  | (4,355 | ) |  | (2,498 | ) |  | (2,558 | )
Earnings available for fixed charges |  | $ | 128,936 |  |  | $ | 145,660 |  |  | $ | 286,312 |  |  | $ | 254,373 |  |  | $ | 223,262 |  |  | $ | 223,803 |  |  | $ | 186,807 |
Ratio of earnings to fixed charges |  | 3.65 |  |  | 4.06 |  |  | 4.04 |  |  | 3.72 |  |  | 3.37 |  |  | 3.52 |  |  | 2.88 |

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income before preferred stock dividends of Hawaiian Electric and before adjustment for undistributed income or loss from equity investees and (ii) fixed charges (as hereinafter defined, but excluding interest capitalized). “Fixed charges” represent the sum of (i) interest, whether capitalized or expensed, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense and (iv) the preferred stock dividend requirements of Hawaii Electric Light and Maui Electric, increased to an amount representing the pretax earnings required to cover such dividend requirements.