EX-12.3 23 ex12-3.htm EXHIBIT 12-3 FIXED CHARGE RATIO - CEI Unassociated Document
EXHIBIT 12.3
Page 1

THE CLEVELAND ELECTRIC ILLUMINATING COMPANY

CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES



 
  
Year Ended December 31,
  
 
  
2001
  
2002
  
2003
  
2004
  
2005
  
 
  
(Dollars in thousands)
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
EARNINGS AS DEFINED IN REGULATION S-K:
  
 
  
 
  
 
  
 
  
 
  
Income before extraordinary items
  
$
177,905
  
$
136,952
  
$
197,033
  
$
236,531
  
$
231,059
  
Interest and other charges, before reduction for
                        
amounts capitalized
    
192,102
    
189,502
    
164,132
    
138,678
    
132,226
  
Provision for income taxes
    
137,887
    
84,938
    
131,285
    
138,856
    
153,014
  
Interest element of rentals charged to income (a)
    
59,497
    
51,170
    
49,761
    
49,375
    
47,643
  
Earnings as defined
  
$
567,391
  
$
462,562
  
$
542,211
  
$
563,440
  
$
563,942
  
 
                        
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                        
Interest expense
  
$
191,727
  
$
180,602
  
$
159,632
  
$
138,678
  
$
132,226
  
Subsidiary’s preferred stock dividend requirements
    
375
    
8,900
    
4,500
    
-
    
-
  
Interest element of rentals charged to income (a)
    
59,497
    
51,170
    
49,761
    
49,375
    
47,643
  
Fixed charges as defined
  
$
251,599
  
$
240,672
  
$
213,893
  
$
188,053
  
$
179,869
  
 
                        
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
2.26
    
1.92
    
2.53
    
3.00
    
3.14
  
 
                        



(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.

96

EXHIBIT 12.3
Page 2
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY

CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)


 
  
Year Ended December 31,
  
 
  
2001
  
2002
  
2003
  
2004
  
2005
  
 
  
(Dollars in thousands)
  
 
  
 
  
 
  
 
  
 
  
 
  
EARNINGS AS DEFINED IN REGULATION S-K:
  
 
  
 
  
 
  
 
  
 
  
Income before extraordinary items
  
$
177,905
  
$
136,952
  
$
197,033
  
$
236,531
  
$
231,059
  
Interest and other charges, before reduction for amounts
                        
    capitalized
    
192,102
    
189,502
    
164,132
    
138,678
    
132,226
  
Provision for income taxes
    
137,887
    
84,938
    
131,285
    
138,856
    
153,014
  
Interest element of rentals charged to income (a)
    
59,497
    
51,170
    
49,761
    
49,375
    
47,643
  
Earnings as defined
  
$
567,391
  
$
462,562
  
$
542,211
  
$
563,440
  
$
563,942
  
 
                        
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                       
PREFERRED STOCK DIVIDEND REQUIREMENTS
                        
(PRE-INCOME TAX BASIS):
                        
Interest expense
  
$
191,727
  
$
180,602
  
$
159,632
  
$
138,678
  
$
132,226
  
Preferred stock dividend requirements
    
25,213
    
24,590
    
12,026
    
7,008
    
2,918
  
Adjustments to preferred stock dividends
                        
to state on a pre-income tax basis
    
20,178
    
8,204
    
5,137
    
4,113
    
1,932
  
Interest element of rentals charged to income (a)
    
59,497
    
51,170
    
49,761
    
49,375
    
47,643
  
Fixed charges as defined plus preferred stock
                        
dividend requirements (pre-income tax basis)
  
$
296,615
  
$
264,566
  
$
226,556
  
$
199,174
  
$
184,719
  
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                        
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                        
(PRE-INCOME TAX BASIS)
    
1.91
    
1.75
    
2.39
    
2.83
    
3.05
  
 
                        




(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.

97