EX-12 2 0002.txt RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 Conectiv Ratio of Earnings to Fixed Charges ---------------------------------- (Dollars in Thousands)
12 Months Ended Year Ended December 31, September 30, ------------------------------------------------------------------------- 2000 1999 1998 1997 1996 1995 -------------- ------------- ------------- ------------- ------------- ------------- Income before extraordinary item $ 153,799 $113,578 $153,201 $101,218 $107,251 $107,546 -------------- ------------- ------------- ------------- ------------- ------------- Income taxes 124,884 105,816 105,817 72,155 78,340 75,540 -------------- ------------- ------------- ------------- ------------- ------------- Fixed charges: Interest on long-term debt including amortization of discount, premium and expense 165,922 149,732 133,796 78,350 69,329 65,572 Other interest 55,703 37,743 26,199 12,835 12,516 10,353 Preferred dividend require- ments of subsidiaries 20,319 19,894 17,871 10,178 10,326 9,942 -------------- ------------- ------------- ------------- ------------- ------------- Total fixed charges 241,944 207,369 177,866 101,363 92,171 85,867 -------------- ------------- ------------- ------------- ------------- ------------- Nonutility capitalized interest (6,441) (3,264) (1,444) (208) (311) (304) -------------- ------------- ------------- ------------- ------------- ------------- Earnings before extraordinary item, income taxes, and fixed charges $ 514,186 $423,499 $435,440 $274,528 $277,451 $268,649 ============= ============= ============= ============= ============= ============= Total fixed charges shown above $ 241,944 $207,369 $177,866 $101,363 $ 92,171 $ 85,867 Increase preferred stock dividend requirements of subsidiaries to a pre-tax amount 5,693 6,123 4,901 3,065 6,025 6,243 -------------- ------------- ------------- ------------- ------------- ------------- Fixed charges for ratio computation $ 247,637 $213,492 $182,767 $104,428 $ 98,196 $ 92,110 ============= ============= ============= ============= ============= ============= Ratio of earnings to fixed charges 2.08 1.98 2.38 2.63 2.83 2.92
For purposes of computing the ratio, earnings are income before extraordinary item plus income taxes and fixed charges, less nonutility capitalized interest. 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.