EX-12.5 9 dex125.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.5

CILCORP INC.

Computation of Ratio of Earnings to Fixed Charges

(Thousands of Dollars, Except Ratios)

 

     Year Ended December 31,  
     2004     2005     2006     2007     2008  

Net income from continuing operations

    $ 10,367     $ 3,222     $ 21,004     $ 49,402     $ 43,542  

Less- Change in accounting principle

      —         (2,497 )     —         —         —    

Add- Taxes based on income (benefit)

      (8,526 )     (3,164 )     (10,944 )     21,018       19,411  
                                        

Net income before income taxes and change in accounting principle

      1,841       2,555       10,060       70,420       62,953  

Add- fixed charges:

           

Interest on long term debt

      51,992       50,562       51,574       62,824 (1)     53,592 (1)

Estimated interest cost within rental expense

      395       390       289       343       430  

Amortization of net debt premium, discount, and expenses

      767       693       801       1,322       1,428  

Subsidiary preferred stock dividends

      2,062       1,988       1,933       1,869       1,354  

Adjust preferred stock dividends to pre-tax basis

      346       1,293       (1,007 )     812       604  
                                        

Total fixed charges

      55,562       54,926       53,590       67,170       57,408  
                                        

Less: Adjustment of preferred stock dividends to pre-tax basis

      346       1,293       (1,007 )     812       604  

Earnings available for fixed charges

    $ 57,057     $ 56,188     $ 64,657     $ 136,778     $ 119,757  
                                        

Ratio of earnings to fixed charges

      1.02       1.02       1.20       2.03       2.08  
                                        

(1) Includes FIN 48 interest expense