EX-12.5 28 ex12-5.txt RATIOS - PP EXHIBIT 12.5 Page 1 PENNSYLVANIA POWER COMPANY 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 $ 40,587 $31,472 $39,748 $12,648 $22,847 Interest before reduction for amounts capitalized 27,889 22,438 21,073 21,317 20,437 Provision for income taxes 33,421 26,658 32,504 18,834 26,121 Interest element of rentals charged to income (a) 1,868 1,750 1,920 1,887 2,791 -------- ------- ------- ------- ------- Earnings as defined $103,765 $82,318 $95,245 $54,686 $72,196 ======== ======= ======= ======= ======= FIXED CHARGES AS DEFINED IN REGULATION S-K: Interest on long-term debt $ 25,715 $20,458 $19,255 $19,268 $18,651 Interest on nuclear fuel obligations 219 276 28 90 364 Other interest expense 1,955 1,704 1,789 1,959 1,422 Interest element of rentals charged to income (a) 1,868 1,750 1,920 1,887 2,791 -------- ------- ------- ------- ------- Fixed charges as defined $ 29,757 $24,188 $22,992 $23,204 $23,228 ======== ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES (b) 3.49 3.40 4.14 2.36 3.11 ==== ==== ==== ==== ==== ---------------------- (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 $642,000, $483,000 and $273,000 for each of the three years ended December 31, 1998, respectively. The guarantee and related coal supply contract debt expired December 31, 1999.
EXHIBIT 12.5 Page 2 PENNSYLVANIA POWER COMPANY 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 $ 40,587 $31,472 $39,748 $12,648 $22,847 Interest before reduction for amounts capitalized 27,889 22,438 21,073 21,317 20,437 Provision for income taxes 33,421 26,658 32,504 18,834 26,121 Interest element of rentals charged to income (a) 1,868 1,750 1,920 1,887 2,791 -------- ------- ------- ------- ------- Earnings as defined $103,765 $82,318 $95,245 $54,686 $72,196 ======== ======= ======= ======= ======= FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS): Interest on long-term debt $ 25,715 $20,458 $19,255 $19,268 $18,651 Interest on nuclear fuel obligations 219 276 28 90 364 Other interest expense 1,955 1,704 1,789 1,959 1,422 Preferred stock dividend requirements 4,626 4,626 4,626 4,370 3,704 Adjustment to preferred stock dividends to state on a pre-income tax basis 3,751 3,859 3,726 6,403 4,018 Interest element of rentals charged to income (a) 1,868 1,750 1,920 1,887 2,791 -------- ------- ------- ------- ------- Fixed charges as defined plus preferred stock dividend requirements (pre-income tax basis) $ 38,134 $32,673 $31,344 $33,977 $30,950 ======== ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS) (b) 2.72 2.52 3.04 1.61 2.33 ==== ==== ==== ==== ==== ------------------------ (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 $642,000, $483,000 and $273,000 for each of the three years ended December 31, 1998, respectively. The guarantee and related coal supply contract debt expired December 31, 1999.