EX-12.5 13 dex125.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES - CILCORP Computation of Ratios of Earnings to Fixed Charges - CILCORP

Exhibit 12.5

CILCORP INC.

Computation of Ratio of Earnings to Fixed Charges

(Thousands of Dollars, Except Ratios)

 

     Six Months Ended
June 30,
2009		    Year Ended
December 31,
2008

Net income (loss) from continuing operations

    $ (407,966)      $ 43,542

Add- Taxes based on income

      29,008        19,411
             

Net income (loss) before income taxes

      (378,958)        62,953

Add- fixed charges:

      

Interest on long term debt (1)

      29,425        53,592

Estimated interest cost within rental expense

      409        430

Amortization of net debt premium, discount, and expenses

      1,118        1,428

Subsidiary preferred stock dividends

      436        1,354

Adjust preferred stock dividends to pretax basis

      (31)        604
             

Total fixed charges

      31,357        57,408
             

Less: Adjustment of preferred stock dividends to pretax basis

      (31)        604

Earnings (loss) available for fixed charges

    $ (347,570)      $ 119,757
             

Ratio of earnings to fixed charges

      -(2)      2.08
             

 

(1)

Includes FIN 48 interest expense

(2)

Earnings are inadequate to cover fixed charges by $378.9 million for the six months ended June 30, 2009. In the first quarter of 2009, CILCORP recorded a goodwill impairment charge of $462 million. See Note 14 - Goodwill Impairment to the financial statements under Part I, Item 1 of the Form 10-Q for the quarterly period ended June 30, 2009, of CILCORP for additional information.