EX-12.7 32 ex12_7.htm FIXED CHARGE RATIO - PENELEC Unassociated Document
                       
 EXHIBIT 12.7
  
                       
 Page 1
  
PENNSYLVANIA ELECTRIC COMPANY          
  
                            
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES          
  
                            
   
Year Ended December 31,
  
   
 2002
  
 2003
  
 2004
  
 2005
  
 2006
  
   
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                           
Income before extraordinary items
 
$
50,910
 
$
20,237
 
$
36,030
 
$
27,553
 
$
84,182
 
Interest and other charges, before reduction for amounts capitalized
    
42,373
   
37,660
   
40,022
   
39,900
   
45,278
 
Provision for income taxes
    
34,248
   
24,836
   
30,001
   
16,613
   
56,539
 
Interest element of rentals charged to income (a)
    
1,849
   
3,076
   
3,016
   
3,225
   
3,247
 
                                 
Earnings as defined
  
$
129,380
 
$
85,809
 
$
109,069
 
$
87,291
 
$
189,246
 
                                 
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                
Interest on long-term debt
  
$
31,758
 
$
29,565
 
$
30,029
 
$
29,540
 
$
27,942
 
Other interest expense
    
3,061
   
4,318
   
9,993
   
10,360
   
17,336
 
Subsidiary's preferred stock dividend requirements
    
7,554
   
3,777
   
-
   
-
    -   
Interest element of rentals charged to income (a)
    
1,849
   
3,076
   
3,016
   
3,225
   
3,247
 
                                 
Fixed charges as defined
  
$
44,222
 
$
40,736
 
$
43,038
 
$
43,125
 
$
48,525
 
                                 
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
   
2.93
    
2.11
    
2.53
    
2.02
    
3.90
  
                                 
                                 
 
                                
                                 
(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
  
                       
 Page 2
  
PENNSYLVANIA ELECTRIC COMPANY          
  
                            
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS          
  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)          
  
                            
   
Year Ended December 31,
  
   
 2002
  
 2003
  
 2004
  
 2005
  
 2006
  
   
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                           
Income before extraordinary items
 
$
50,910
 
$
20,237
 
$
36,030
 
$
27,553
 
$
84,182
 
Interest and other charges, before reduction for amounts capitalized
    
42,373
   
37,660
   
40,022
   
39,900
   
45,278
 
Provision for income taxes
    
34,248
   
24,836
   
30,001
   
16,613
   
56,539
 
Interest element of rentals charged to income (a)
    
1,849
   
3,076
   
3,016
   
3,225
   
3,247
 
                                 
Earnings as defined
  
$
129,380
 
$
85,809
 
$
109,069
 
$
87,291
 
$
189,246
 
                                 
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                
(PRE-INCOME TAX BASIS):
                                
Interest on long-term debt
  
$
31,758
 
$
29,565
 
$
30,029
 
$
29,540
 
$
27,942
 
Other interest expense
    
3,061
   
4,318
   
9,993
   
10,360
   
17,336
 
Preferred stock dividend requirements
    
7,554
   
3,777
   
-
   
-
   
-
 
Adjustments to preferred stock dividends
                                
to state on a pre-income tax basis
    
-
   
-
   
-
   
-
   
-
 
Interest element of rentals charged to income (a)
    
1,849
   
3,076
   
3,016
   
3,225
   
3,247
 
                                 
Fixed charges as defined plus preferred stock
                                
dividend requirements (pre-income tax basis)
  
$
44,222
 
$
40,736
 
$
43,038
 
$
43,125
 
$
48,525
 
                                 
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                
(PRE-INCOME TAX BASIS)
    
2.93
    
2.11
    
2.53
    
2.02
    
3.90
  
                                 
 
                                
                                 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.