EX-12.2 5 eke12-2_2003.htm ENERGY EAST COMP OF RATIO OF EARNINGS TO FIXED CHGS & PRF STOCK DIVS Exhibit 12-1

Exhibit 12-2

ENERGY EAST CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
 

Calendar Year

(thousands)

2003

2002

2001

2000

1999


Income From Continuing
  Operations



$207,387



$190,516



$188,712



$235,312



$218,751 

Add:

          

  Income tax - current

19,420

52,407

148,016

129,220

662,512 

  Income tax- deferred

108,267

46,431

6,863

26,464

(441,721)

Pretax Income from
  Continuing Operations

335,074


289,354


343,591


390,996


439,542 

Fixed Charges

312,788

299,521

239,246

158,398

137,307 

Earnings, as defined

$647,862

$588,875

$582,837

$549,394

$576,849 


Fixed Charges:

          

  Interest on long-term debt

$241,420

$208,034

$171,637

$118,101

$93,678 

  Other interest

28,847

33,289

34,029

28,003

30,453 

  Amortization of premium
   and discount on debt


14,536


17,103


11,864


6,876


6,374 

  Interest portion of
   rental charges


6,409


7,334


6,031


3,951


1,543 

  Earnings required to
   cover preferred stock
   dividends of subsidiaries(1)



21,576



33,761



15,685



1,467



5,259 

Fixed Charges, as defined

$312,788

$299,521

$239,246

$158,398

$137,307 

Preferred Stock Dividends(2)

-    

-    

-    

-    

-    

Fixed Charges and
  Preferred Stock Dividends


$312,788


$299,521


$239,246


$158,398


$137,307 

Ratio of Earnings to Fixed
  Charges and Preferred
  Stock Dividends(3)(4)(5)(6)



2.07 



1.97



2.44



3.47



4.20 


(1)  Preferred stock dividends of subsidiaries have been adjusted to a pretax basis.
(2)  We have not previously issued preferred stock and we therefore have never declared any preferred dividends.
(3)  The ratio of earnings to fixed charges is calculated by dividing earnings by fixed charges. For this purpose, earnings means income from continuing operations before income taxes and fixed charges. Fixed charges means all interest charges, the interest component of rentals, and preferred stock dividends of subsidiaries.
(4)  Earnings for 2002 includes a $12 million writedown of an investment on NEON Communications, Inc. and a $41 million effect from restructuring expenses. Excluding those two amounts, the earnings ratio for 2002 would have been 2.13.
(5)  Earnings for 2001 includes a $78 million writedown of an investment in NEON Communications, Inc. Excluding the $78 million, the earnings ratio for 2001 would have been 2.76.
(6)  Earnings for 1999 includes $84 million that the company paid in federal income taxes as a result of the sale of its coal-fired generation assets. Excluding the $84 million, the earnings ratio for 1999 would have been 3.59.