EX-12 20 cei_ex12-3.txt EX. 12-3 FIXED CHARGE RATIO - CEI EXHIBIT 12.3 Page 1 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, ----------------------------------------------------------- 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items........................ $164,891 $194,089 $202,950 $219,044 $155,946 Interest and other charges, before reduction for amounts capitalized.................................... 232,727 211,960 202,752 192,198 189,502 Provision for income taxes............................... 110,611 123,869 126,701 158,648 101,844 Interest element of rentals charged to income (a)........ 68,314 66,680 65,616 59,497 51,170 -------- -------- -------- -------- -------- Earnings as defined.................................... $576,543 $596,598 $598,019 $629,387 $498,462 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K: Interest expense......................................... $232,727 $211,960 $202,752 $192,198 180,602 Subsidiary's, preferred stock dividend requirements...... -- -- -- -- 8,900 Interest element of rentals charged to income (a)........ 68,314 66,680 65,616 59,497 51,170 -------- -------- -------- -------- -------- Fixed charges as defined............................... $301,041 $278,640 $268,368 $251,695 $240,672 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES............. 1.92 2.14 2.23 2.50 2.07 ==== ==== ==== ==== ==== ------------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
EXHIBIT 12.3 Page 2 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31, ----------------------------------------------------------- 1998 1999 2000 2001 2002 ---------- --------- ---------- --------- -------- (Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items................................. $164,891 $194,089 $202,950 $219,044 $155,946 Interest and other charges, before reduction for amounts capitalized..................................................... 232,727 211,960 202,752 192,198 189,502 Provision for income taxes........................................ 110,611 123,869 126,701 158,648 101,844 Interest element of rentals charged to income (a)................. 68,314 66,680 65,616 59,497 51,170 -------- -------- -------- -------- -------- Earnings as defined............................................. $576,543 $596,598 $598,019 $629,387 $498,462 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS): Interest expense.................................................. $232,727 $211,960 $202,752 $192,198 $180,602 Preferred stock dividend requirements............................. 24,794 33,524 20,843 25,838 26,290 Adjustments to preferred stock dividends to state on a pre-income tax basis.............................. 16,632 21,395 13,012 18,714 17,169 Interest element of rentals charged to income (a)................. 68,314 66,680 65,616 59,497 51,170 -------- -------- -------- -------- -------- Fixed charges as defined plus preferred stock dividend requirements (pre-income tax basis).................. $342,467 $333,559 $302,223 $296,247 $275,231 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)............................................ 1.68 1.79 1.98 2.12 1.81 ==== ==== ==== ==== ==== ------------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.