EX-12 2 w48793ex12.txt RATIO OF EARNINGS TO FIXED CHARGES 1 Exhibit 12 Conectiv Ratio of Earnings to Fixed Charges (Dollars in Thousands)
12 Months Ended Year Ended December 31, March 31, --------------------------------------------------------------------- 2001 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- --------- Income before extraordinary item $ 179,097 $ 170,830 $ 113,578 $ 153,201 $ 101,218 $ 107,251 --------- --------- --------- --------- --------- --------- Income taxes 142,090 133,514 105,816 105,817 72,155 78,340 --------- --------- --------- --------- --------- --------- Fixed charges: Interest on long-term debt including amortization of discount, premium and expense 163,099 166,256 149,732 133,796 78,350 69,329 Other interest 63,382 60,818 37,743 26,199 12,835 12,516 Preferred dividend require- ments of subsidiaries 20,493 20,383 19,894 17,871 10,178 10,326 --------- --------- --------- --------- --------- --------- Total fixed charges 246,974 247,457 207,369 177,866 101,363 92,171 --------- --------- --------- --------- --------- --------- Nonutility capitalized interest (12,717) (9,278) (3,264) (1,444) (208) (311) --------- --------- --------- --------- --------- --------- Undistributed earnings of equity method investees -- (4,496) -- -- -- -- --------- --------- --------- --------- --------- --------- Earnings before extraordinary item, income taxes, and fixed charges $ 555,444 $ 538,027 $ 423,499 $ 435,440 $ 274,528 $ 277,451 ========= ========= ========= ========= ========= ========= Total fixed charges shown above $ 246,974 $ 247,457 $ 207,369 $ 177,866 $ 101,363 $ 92,171 Increase preferred stock dividend requirements of subsidiaries to a pre-tax amount 5,776 5,531 6,123 4,901 3,065 6,025 --------- --------- --------- --------- --------- --------- Fixed charges for ratio computation $ 252,750 $ 252,988 $ 213,492 $ 182,767 $ 104,428 $ 98,196 ========= ========= ========= ========= ========= ========= Ratio of earnings to fixed charges 2.20 2.13 1.98 2.38 2.63 2.83
For purposes of computing the ratio, earnings are income before extraordinary item plus income taxes and fixed charges, less nonutility capitalized interest and undistributed earnings of equity method investees. Fixed charges include gross interest expense, the estimated interest component of rentals, and preferred stock dividend requirements of subsidiaries. Preferred stock dividend requirements for purposes of computing the ratio have been increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements.