EX-12.6 24 exhibit12.6.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY OHIO  

 

 

EXHIBIT 12.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY OHIO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

(in millions)

2012 

 

2011 

 

2010 

 

2009 

 

2008 

Earnings as defined for fixed charges calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income from continuing operations

$

 273 

 

$

 290 

 

$

 (309) 

 

$

 (240) 

 

$

 458 

 

Fixed charges

 

 108 

 

 

 119 

 

 

 122 

 

 

 128 

 

 

 122 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized(a)

 

 15 

 

 

 9 

 

 

 8 

 

 

 4 

 

 

 19 

Total earnings

$

 366 

 

$

 400 

 

$

 (195) 

 

$

 (116) 

 

$

 561 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt, including capitalized portions

$

 104 

 

$

 114 

 

$

 117 

 

$

 121 

 

$

 113 

 

Estimate of interest within rental expense

 

 4 

 

 

 5 

 

 

 5 

 

 

 7 

 

 

 9 

Total fixed charges

$

 108 

 

$

 119 

 

$

 122 

 

$

 128 

 

$

 122 

Ratio of earnings to fixed charges

 

 3.4 

 

 

 3.4 

 

 

 ― (b)

 

 

 ― (b)

 

 

 4.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations.

(b)

Earnings insufficient to cover fixed charges by approximately $317 million and $244 million during the years ended December 31, 2010 and 2009, respectively, due primarily to non-cash goodwill impairment.