EX-12.(C) 11 dex12c.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12(c)

ENERGY FUTURE COMPETITIVE HOLDINGS COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES,

AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS

 

         Successor          Predecessor
         Year Ended
December 31,
2008		     Period from
October 11, 2007
through
December 31, 2007		          Period from
January 1, 2007
through
October 10, 2007		    Year Ended December 31,
               2006    2005    2004
         (millions of dollars, except ratios)

EARNINGS:

                   

Income (loss) from continuing operations

before extraordinary gain/(loss) and

cumulative effect of changes in

accounting principles

    $ (9,039 )    $ (1,266 )       $ 1,306    $ 2,501    $ 1,816    $ 672

Add:

  

Total federal income tax expense (benefit)

      (504 )      (675 )         618      1,306      882      282
 

Fixed charges (see detail below)

      4,518        715           394      387      668      651
  Preferred dividends of subsidiaries      —          —             —        —        —        —  
                                                

Total earnings (loss)

    $ (5,025 )    $ (1,226 )       $ 2,318    $ 4,194    $ 3,366    $ 1,605
                                                
 

FIXED CHARGES:

                   

Interest expense

    $ 4,492      $ 709         $ 370    $ 364    $ 633    $ 607

Rentals representative of the interest factor

      26        6           24      23      35      44
                                                

Fixed charges deducted from earnings

      4,518        715           394      387      668      651

Preferred dividends of subsidiaries (pretax) (a)

      —          —             —        —        —        —  
                                                

Total fixed charges

      4,518        715           394      387      668      651
 

Preference dividends of registrant

(pretax) (a)

      —          —             —        —        4      3
                                                
 

Fixed charges and preference dividends

    $ 4,518      $ 715         $ 394    $ 387    $ 672    $ 654
                                                
 

RATIO OF EARNINGS TO FIXED CHARGES (b)

      —          —             5.88      10.84      5.04      2.47
                                                
 

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (b)

      —          —             5.88      10.84      5.01      2.45
                                                

 

(a) Preferred/preference dividends multiplied by the ratio of pretax income to net income.
(b) Fixed charges and combined fixed charges and preference dividends exceeded earnings by $9.543 billion for the year ended December 31, 2008. Fixed charges and combined fixed charges and preference dividends exceeded earnings by $1.941 billion for the period from October 11, 2007 through December 31, 2007.

     Successor  
     Nine Months Ended September 30,  
     2009    2008  
     (millions of dollars, except ratios)  

EARNINGS:

      

Net income (loss) from continuing operations

    $ 347    $ (943 ) 

Add:

  

Total federal income tax expense (benefit)

      259      (493 ) 
 

Fixed charges (see detail below)

      1,816      2,197   
 

Preferred dividends of subsidiaries

      —        —     
                 

Total earnings (loss)

    $ 2,422    $ 761   
                 

FIXED CHARGES:

      

Interest expense

    $ 1,798    $ 2,177   

Rentals representative of the interest factor

      18      20   
                 

Fixed charges deducted from earnings

      1,816      2,197   

Preferred dividends of subsidiaries (pretax) (a)

      —        —     
                 

Total fixed charges

      1,816      2,197   

Preference dividends of registrant (pretax) (a)

      —        —     
                 

Fixed charges and preference dividends

    $ 1,816    $ 2,197   
                 

RATIO OF EARNINGS TO FIXED CHARGES (b)

      1.33      —     
                 

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (b)

      1.33      —     
                 

 

(a) Preferred/preference dividends multiplied by the ratio of pretax income to net income.
(b) Fixed charges and combined fixed charges and preference dividends exceeded earnings by $1.436 billion for the nine months ended September 30, 2008.