EX-12 7 ex_12.htm FIXED CHARGE RATIOS - FE, FES, OE, CEI, TE, JCP&L, MET-ED, PENELEC Unassociated Document
 

                           
EXHIBIT 12.1
  
                               
FIRSTENERGY CORP.
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
   
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 906,753     $ 879,053     $ 1,257,806     $ 1,308,757     $ 1,342,347  
Interest and other charges, before reduction for amounts capitalized
                                        
and deferred
     692,068       675,424       727,956       785,539       761,291  
Provision for income taxes
     680,524       748,794       794,595       883,033       776,915  
Interest element of rentals charged to income (a)
     248,499       241,460       226,168       206,073       171,229  
                                         
Earnings as defined
   $ 2,527,844     $ 2,544,731     $ 3,006,525     $ 3,183,402     $ 3,051,782  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 670,655     $ 659,886     $ 721,068     $ 785,539     $ 761,291  
Subsidiaries’ preferred stock dividend requirements
     21,413       15,538       6,888       -       -  
Adjustments to subsidiaries’ preferred stock dividends
                                        
to state on a pre-income tax basis
     16,071       13,236       4,351       -       -  
Interest element of rentals charged to income (a)
     248,499       241,460       226,168       206,073       171,229  
                                         
Fixed charges as defined
   $ 956,638     $ 930,120     $ 958,475     $ 991,612     $ 932,520  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     2.64       2.74       3.14       3.21       3.27  
                                         
                                         
                                           
                                         
(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 12.2
  
                               
FIRSTENERGY SOLUTIONS CORP.
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 322,239     $ 208,560     $ 418,653     $ 528,864     $ 506,410  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     181,620       196,355       189,141       157,700       141,511  
Provision for income taxes
     229,575       124,499       236,348       304,608       293,181  
Interest element of rentals charged to income (a)
     1,056       1,434       1,797       24,669       99,360  
                                         
Earnings as defined
   $ 734,490     $ 530,848     $ 845,939     $ 1,015,841     $ 1,040,462  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 181,620     $ 196,355     $ 189,141     $ 157,700     $ 141,511  
Interest element of rentals charged to income (a)
     1,056       1,434       1,797       24,669       99,360  
                                         
Fixed charges as defined
   $ 182,676     $ 197,789     $ 190,938     $ 182,369     $ 240,871  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     4.02       2.68       4.43       5.57       4.32  
                                         
                                         
                                           
                                         
(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 1
  
OHIO EDISON COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 342,766     $ 330,398     $ 211,639     $ 197,166     $ 211,746  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     74,051       77,077       90,952       83,343       75,058  
Provision for income taxes
     278,303       309,995       123,343       101,273       98,584  
Interest element of rentals charged to income (a)
     104,239       101,862       89,354       79,954       74,962  
                                         
Earnings as defined
   $ 799,359     $ 819,332     $ 515,288     $ 461,736     $ 460,350  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 71,491     $ 75,388     $ 90,356     $ 83,343     $ 75,058  
Subsidiaries’ preferred stock dividend requirements
     2,560       1,689       597       -       -  
Adjustments to subsidiaries’ preferred stock dividends
                                        
to state on a pre-income tax basis
     1,975       1,351       651       -       -  
Interest element of rentals charged to income (a)
     104,239       101,862       89,354       79,954       74,962  
                                         
Fixed charges as defined
   $ 180,265     $ 180,290     $ 180,958     $ 163,297     $ 150,020  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     4.43       4.54       2.85       2.83       3.07  
                                         
                                         
                                         
                                           
                                         
(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
  
OHIO EDISON COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 342,766     $ 330,398     $ 211,639     $ 197,166     $ 211,746  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     74,051       77,077       90,952       83,343       75,058  
Provision for income taxes
     278,303       309,995       123,343       101,273       98,584  
Interest element of rentals charged to income (a)
     104,239       101,862       89,354       79,954       74,962  
                                         
Earnings as defined
   $ 799,359     $ 819,332     $ 515,288     $ 461,736     $ 460,350  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                  
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS):
                                        
Interest before reduction for amounts capitalized and deferred
   $ 71,491     $ 75,388     $ 90,356     $ 83,343     $ 75,058  
Preferred stock dividend requirements
     5,062       4,324       5,149       -       -  
Adjustments to preferred stock dividends
                                        
to state on a pre-income tax basis
     4,072       3,758       3,263       -       -  
Interest element of rentals charged to income (a)
     104,239       101,862       89,354       79,954       74,962  
                                         
Fixed charges as defined plus preferred stock
                                        
dividend requirements (pre-income tax basis)
   $ 184,864     $ 185,332     $ 188,122     $ 163,297     $ 150,020  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                  
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                  
(PRE-INCOME TAX BASIS)
     4.32       4.42       2.74       2.83       3.07  
                                         
                                         
                                           
                                         
(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 12.4
  
                           
Page 1
  
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 236,531     $ 231,058     $ 306,051     $ 276,412     $ 284,526  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     138,678       132,226       141,710       138,977       125,976  
Provision for income taxes
     138,856       153,014       188,662       163,363       136,786  
Interest element of rentals charged to income (a)
     49,375       47,643       45,955       29,829       1,919  
                                         
Earnings as defined
   $ 563,440     $ 563,941     $ 682,378     $ 608,581     $ 549,207  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 138,678     $ 132,226     $ 141,710     $ 138,977     $ 125,976  
Interest element of rentals charged to income (a)
     49,375       47,643       45,955       29,829       1,919  
                                         
Fixed charges as defined
   $ 188,053     $ 179,869     $ 187,665     $ 168,806     $ 127,895  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     3.00       3.14       3.64       3.61       4.29  
                                         
                                         
                                         
                                           
                                         
(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 12.4
  
                           
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,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 236,531     $ 231,058     $ 306,051     $ 276,412     $ 284,526  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     138,678       132,226       141,710       138,977       125,976  
Provision for income taxes
     138,856       153,014       188,662       163,363       136,786  
Interest element of rentals charged to income (a)
     49,375       47,643       45,955       29,829       1,919  
                                         
Earnings as defined
   $ 563,440     $ 563,941     $ 682,378     $ 608,581     $ 549,207  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                        
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS):
                                        
Interest before reduction for amounts capitalized and deferred
   $ 138,678     $ 132,226     $ 141,710     $ 138,977     $ 125,976  
Preferred stock dividend requirements
     7,008       2,918       -       -       -  
Adjustments to preferred stock dividends
                                        
to state on a pre-income tax basis
     4,113       1,932       -       -       -  
Interest element of rentals charged to income (a)
     49,375       47,643       45,955       29,829       1,919  
                                         
Fixed charges as defined plus preferred stock
                                        
dividend requirements (pre-income tax basis)
   $ 199,174     $ 184,719     $ 187,665     $ 168,806     $ 127,895  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                  
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS)
     2.83       3.05       3.64       3.61       4.29  
                                         
                                           
                                         
(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 12.5
  
                           
Page 1
  
THE TOLEDO EDISON COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 86,283     $ 76,164     $ 99,404     $ 91,239     $ 74,915  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     33,439       21,489       23,179       34,135       23,286  
Provision for income taxes
     52,350       73,931       59,869       53,736       29,824  
Interest element of rentals charged to income (a)
     82,879       80,042       77,158       57,393       37,172  
                                         
Earnings as defined
   $ 254,951     $ 251,626     $ 259,610     $ 236,503     $ 165,197  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 33,439     $ 21,489     $ 23,179     $ 34,135     $ 23,286  
Interest element of rentals charged to income (a)
     82,879       80,042       77,158       57,393       37,172  
                                         
Fixed charges as defined
   $ 116,318     $ 101,531     $ 100,337     $ 91,528     $ 60,458  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     2.19       2.48       2.59       2.58       2.73  
                                         
                                         
                                           
                                         
(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 12.5
  
                           
Page 2
  
THE TOLEDO EDISON COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 86,283     $ 76,164     $ 99,404     $ 91,239     $ 74,915  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     33,439       21,489       23,179       34,135       23,286  
Provision for income taxes
     52,350       73,931       59,869       53,736       29,824  
Interest element of rentals charged to income (a)
     82,879       80,042       77,158       57,393       37,172  
                                         
Earnings as defined
   $ 254,951     $ 251,626     $ 259,610     $ 236,503     $ 165,197  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                  
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS):
                                        
Interest before reduction for amounts capitalized and deferred
   $ 33,439     $ 21,489     $ 23,179     $ 34,135     $ 23,286  
Preferred stock dividend requirements
     8,844       7,795       9,409       -       -  
Adjustments to preferred stock dividends
                                        
to state on a pre-income tax basis
     5,366       7,561       5,667       -       -  
Interest element of rentals charged to income (a)
     82,879       80,042       77,158       57,393       37,172  
                                         
Fixed charges as defined plus preferred stock
                                        
dividend requirements (pre-income tax basis)
   $ 130,528     $ 116,887     $ 115,413     $ 91,528     $ 60,458  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                  
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS)
     1.95       2.15       2.25       2.58       2.73  
                                         
                                           
                                         
(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 12.6
  
                           
Page 1
  
JERSEY CENTRAL POWER & LIGHT COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 107,626     $ 182,927     $ 190,607     $ 186,108     $ 186,988  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     86,111       85,519       94,035       107,232       106,316  
Provision for income taxes
     97,205       135,846       146,731       149,056       148,231  
Interest element of rentals charged to income (a)
     7,589       7,091       8,838       7,976       7,702  
                                         
Earnings as defined
   $ 298,531     $ 411,383     $ 440,211     $ 450,372     $ 449,237  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 86,111     $ 85,519     $ 94,035     $ 107,232     $ 106,316  
Interest element of rentals charged to income (a)
     7,589       7,091       8,838       7,976       7,702  
                                         
Fixed charges as defined
   $ 93,700     $ 92,610     $ 102,873     $ 115,208     $ 114,018  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     3.19       4.44       4.28       3.91       3.94  
                                         
                                           
                                         
(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 12.6
  
                           
Page 2
  
JERSEY CENTRAL POWER & LIGHT COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 107,626     $ 182,927     $ 190,607     $ 186,108     $ 186,988  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     86,111       85,519       94,035       107,232       106,316  
Provision for income taxes
     97,205       135,846       146,731       149,056       148,231  
Interest element of rentals charged to income (a)
     7,589       7,091       8,838       7,976       7,702  
                                         
Earnings as defined
   $ 298,531     $ 411,383     $ 440,211     $ 450,372     $ 449,237  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                  
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS):
                                        
Interest before reduction for amounts capitalized and deferred
   $ 86,111     $ 85,519     $ 94,035     $ 107,232     $ 106,316  
Preferred stock dividend requirements
     500       500       1,018       -       -  
Adjustments to preferred stock dividends
                                        
to state on a pre-income tax basis
     452       371       784       -       -  
Interest element of rentals charged to income (a)
     7,589       7,091       8,838       7,976       7,702  
                                         
Fixed charges as defined plus preferred stock
                                        
dividend requirements (pre-income tax basis)
   $ 94,652     $ 93,481     $ 104,675     $ 115,208     $ 114,018  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                  
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                  
(PRE-INCOME TAX BASIS)
     3.15       4.40       4.21       3.91       3.94  
                                         
                                           
                                         
(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 12.7
  
                               
METROPOLITAN EDISON COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006 (b)
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 66,955     $ 45,919     $ (240,195 )   $ 95,463     $ 88,033  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     45,057       44,655       47,385       51,022       43,651  
Provision for income taxes
     38,217       30,084       77,326       68,270       60,898  
Interest element of rentals charged to income (a)
     1,401       1,597       1,616       2,160       2,132  
                                         
Earnings as defined
   $ 151,630     $ 122,255     $ (113,868 )   $ 216,915     $ 194,714  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 45,057     $ 44,655     $ 47,385     $ 51,022     $ 43,651  
Interest element of rentals charged to income (a)
     1,401       1,597       1,616       2,160       2,132  
                                         
Fixed charges as defined
   $ 46,458     $ 46,252     $ 49,001     $ 53,182     $ 45,783  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     3.26       2.64       (2.32 )     4.08       4.25  
                                         
                                         
                                           
                                         
(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) The earnings as defined in 2006 would need to increase $162,869,000 for the fixed charge ratios to be 1.0.
  

 
 
 
 

                           
EXHIBIT 12.8
  
                               
PENNSYLVANIA ELECTRIC COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2004
    
2005
    
2006
    
2007
    
2008
  
 
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 36,030     $ 27,553     $ 84,182     $ 92,938     $ 88,170  
Interest and other charges, before reduction for amounts capitalized
                                  
and deferred
     40,022       39,900       45,278       54,840       59,424  
Provision for income taxes
     30,001       16,613       56,539       64,015       57,647  
Interest element of rentals charged to income (a)
     3,016       3,225       3,247       3,214       3,319  
                                         
Earnings as defined
   $ 109,069     $ 87,291     $ 189,246     $ 215,007     $ 208,560  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 40,022     $ 39,900     $ 45,278     $ 54,840     $ 59,424  
Interest element of rentals charged to income (a)
     3,016       3,225       3,247       3,214       3,319  
                                         
Fixed charges as defined
   $ 43,038     $ 43,125     $ 48,525     $ 58,054     $ 62,743  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     2.53       2.02       3.90       3.70       3.32  
                                         
                                         
                                           
                                         
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.