EX-12.2 15 ex12-2.txt RATIOS - OE EXHIBIT 12.2 Page 1 OHIO EDISON COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, -------------------------------------------------------------- 1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- (Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items $315,170 $293,194 $301,320 $297,689 $336,456 Interest and other charges, before reduction for amounts capitalized 255,572 250,920 235,317 225,358 211,364 Provision for income taxes 201,295 187,805 191,261 191,835 212,580 Interest element of rentals charged to income (a) 114,093 117,409 115,310 113,804 109,497 -------- -------- -------- -------- -------- Earnings as defined $886,130 $849,328 $843,208 $828,686 $869,897 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K: Interest on long-term debt $211,935 $204,285 $184,915 $178,217 $165,409 Other interest expense 28,211 31,209 34,976 31,971 31,451 Subsidiaries' preferred stock dividend requirements 15,426 15,426 15,426 15,170 14,504 Adjustments to subsidiaries' preferred stock dividends to state on a pre-income tax basis 2,910 2,918 2,892 2,770 2,296 Interest element of rentals charged to income (a) 114,093 117,409 115,310 113,804 109,497 -------- -------- -------- -------- -------- Fixed charges as defined $372,575 $371,247 $353,519 $341,932 $323,157 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (b) 2.38 2.29 2.39 2.42 $2.69 ==== ==== ==== ==== ===== ------------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined. (b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier aggregating $5,093,000, $3,828,000 and $2,209,000 for each of the three years ended December 31, 1998, respectively. The guarantee and related coal supply contract debt expired December 31, 1999.
EXHIBIT 12.2 Page 2 OHIO EDISON COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31, -------------------------------------------------------------- 1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- (Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items $315,170 $293,194 $301,320 $297,689 $336,456 Interest and other charges, before reduction for amounts capitalized 255,572 250,920 235,317 225,358 211,364 Provision for income taxes 201,295 187,805 191,261 191,835 212,580 Interest element of rentals charged to income (a) 114,093 117,409 115,310 113,804 109,497 -------- -------- -------- -------- -------- Earnings as defined $886,130 $849,328 $843,208 $828,686 $869,897 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS(PRE-INCOME TAX BASIS): Interest on long-term debt $211,935 $204,285 $184,915 $178,217 $165,409 Other interest expense 28,211 31,209 34,976 31,971 31,451 Preferred and preference stock dividend requirements 27,923 27,817 27,395 26,717 25,628 Adjustments to preferred and preference stock dividends to state on a pre-income tax basis 10,542 10,503 10,140 9,859 8,976 Interest element of rentals charged to income (a) 114,093 117,409 115,310 113,804 109,497 -------- -------- -------- -------- -------- Fixed charges as defined plus preferred and preference stock dividend requirements (pre-income tax basis) $392,704 $391,223 $372,736 $360,568 $340,961 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS) (b) 2.26 2.17 2.26 2.30 2.55 ==== ==== ==== ==== ==== ----------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined. (b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier aggregating $5,093,000, $3,828,000 and $2,209,000 for each of the three years ended December 31, 1998, respectively. The guarantee and related coal supply contract debt expired December 31, 1999.