EX-12 3 ex_12.htm EXHIBIT 12 CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES Unassociated Document
 
 

 
            
EXHIBIT 12
              
FIRSTENERGY CORP.  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
979,339
  
$
651,627
     
Interest and other charges, before reduction for amounts capitalized
    
535,875
   
501,374
     
Provision for income taxes
    
622,489
   
599,261
     
Interest element of rentals charged to income (a)
    
170,065
   
182,237
     
                   
Earnings as defined 
  
$
2,307,768
  
$
1,934,499
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest expense
  
$
528,088
  
$
488,462
     
Subsidiaries’ preferred stock dividend requirements
    
5,787
   
12,912
     
Adjustments to subsidiaries’ preferred stock dividends
                  
to state on a pre-income tax basis 
    
3,678
   
11,874
     
Interest element of rentals charged to income (a)
    
170,065
   
182,237
     
                   
Fixed charges as defined 
  
$
707,618
  
$
695,485
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED
    
3.26
    
2.78
      
CHARGES  
                  
                   
                   
                   
                   
 
                  
                   
(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
            
Page 1
OHIO EDISON COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
166,536
  
$
235,251
      
Interest and other charges, before reduction for amounts capitalized
    
60,662
    
58,321
      
Provision for income taxes
    
91,239
    
253,410
      
Interest element of rentals charged to income (a)
    
67,064
    
76,871
      
                   
Earnings as defined 
  
$
385,501
  
$
623,853
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
  
$
49,280
  
$
44,330
      
Other interest expense
    
10,914
    
12,457
      
Subsidiaries’ preferred stock dividend requirements
    
467
    
1,534
      
Adjustments to subsidiaries’ preferred stock dividends
                  
to state on a pre-income tax basis 
    
291
    
1,169
      
Interest element of rentals charged to income (a)
    
67,064
    
76,871
      
                   
Fixed charges as defined 
  
$
128,016
  
$
136,361
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED
    
3.01
    
4.58
      
CHARGES  
                  
                   
                   
                   
                   
 
                  
                   
(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
            
Page 2
OHIO EDISON COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
166,536
  
$
235,251
      
Interest and other charges, before reduction for amounts capitalized
    
60,662
    
58,321
      
Provision for income taxes
    
91,239
    
253,410
      
Interest element of rentals charged to income (a)
    
67,064
    
76,871
      
                   
Earnings as defined 
  
$
385,501
  
$
623,853
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                  
PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS): 
                  
Interest on long-term debt
  
$
49,280
  
$
44,330
      
Other interest expense
    
10,914
    
12,457
      
Preferred stock dividend requirements
    
4,764
    
3,510
      
Adjustments to preferred stock dividends
                  
to state on a pre-income tax basis 
    
2,607
    
3,222
      
Interest element of rentals charged to income (a)
    
67,064
    
76,871
      
                   
Fixed charges as defined plus preferred stock
                  
dividend requirements (pre-income tax basis) 
  
$
134,629
  
$
140,390
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
2.86
    
4.44
      
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS) 
                  
                   
                   
                   
 
                  
                   
(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
            
Page 1
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
246,927
  
$
164,578
      
Interest and other charges, before reduction for amounts capitalized
    
104,139
    
96,404
      
Provision for income taxes
    
150,730
    
114,678
      
Interest element of rentals charged to income (a)
    
34,504
    
35,906
      
                   
Earnings as defined 
  
$
536,300
  
$
411,566
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
  
$
104,139
  
$
96,404
      
Interest element of rentals charged to income (a)
    
34,504
    
35,906
      
                   
Fixed charges as defined 
  
$
138,643
  
$
132,310
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED
    
3.87
    
3.11
      
CHARGES  
                  
                   
                   
                   
                   
 
                  
                   
(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
            
Page 2
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
246,927
  
$
164,578
      
Interest and other charges, before reduction for amounts capitalized
    
104,139
    
96,404
      
Provision for income taxes
    
150,730
    
114,678
      
Interest element of rentals charged to income (a)
    
34,504
    
35,906
      
                   
Earnings as defined 
  
$
536,300
  
$
411,566
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                  
PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS): 
                  
Interest on long-term debt
  
$
104,139
  
$
96,404
      
Preferred stock dividend requirements
    
-
   
2,918
     
Adjustments to preferred stock dividends
                  
to state on a pre-income tax basis 
    
-
   
2,033
     
Interest element of rentals charged to income (a)
    
34,504
    
35,906
      
                   
Fixed charges as defined plus preferred stock
                  
dividend requirements (pre-income tax basis) 
  
$
138,643
  
$
137,261
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
3.87
    
3.00
      
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS) 
                  
                   
                   
                   
 
                  
                   
(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
            
Page 1
THE TOLEDO EDISON COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
90,556
  
$
50,268
      
Interest and other charges, before reduction for amounts capitalized
    
13,614
    
16,847
      
Provision for income taxes
    
54,834
    
57,056
      
Interest element of rentals charged to income (a)
    
58,151
    
60,282
      
                   
Earnings as defined 
  
$
217,155
  
$
184,453
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
  
$
13,614
  
$
16,847
      
Interest element of rentals charged to income (a)
    
58,151
    
60,282
      
                   
Fixed charges as defined 
  
$
71,765
  
$
77,129
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED
    
3.03
    
2.39
      
CHARGES  
                  
                   
                   
                   
                   
 
                  
                   
(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
            
Page 2
THE TOLEDO EDISON COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
90,556
  
$
50,268
      
Interest and other charges, before reduction for amounts capitalized
    
13,614
    
16,847
      
Provision for income taxes
    
54,834
    
57,056
      
Interest element of rentals charged to income (a)
    
58,151
    
60,282
      
                   
Earnings as defined 
  
$
217,155
  
$
184,453
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                  
PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS): 
                  
Interest on long-term debt
  
$
13,614
  
$
16,847
      
Preferred stock dividend requirements
    
3,597
   
6,109
     
Adjustments to preferred stock dividends
                  
to state on a pre-income tax basis 
    
2,178
   
6,934
     
Interest element of rentals charged to income (a)
    
58,151
    
60,282
      
                   
Fixed charges as defined plus preferred stock
                  
dividend requirements (pre-income tax basis) 
  
$
77,540
  
$
90,172
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
2.80
    
2.05
      
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS) 
                  
                   
                   
                   
 
                  
                   
(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
             
Page 1
JERSEY CENTRAL POWER & LIGHT COMPANY    
               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES    
               
   
 Nine Months Ended  
    
   
 September 30,  
    
   
 2006
  
 2005
    
        
 Restated
    
   
 (Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
              
Income before extraordinary items
 
$
153,355
 
$
141,628
     
Interest and other charges, before reduction for amounts capitalized
    
70,092
    
63,859
      
Provision for income taxes
    
120,506
    
114,136
      
Interest element of rentals charged to income (a)
    
6,635
    
5,420
      
                   
Earnings as defined
  
$
350,588
 
$
325,043
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
    
56,612
    
56,843
      
Other interest expense
    
13,480
    
7,016
      
Interest element of rentals charged to income (a)
    
6,635
    
5,420
      
                   
Fixed charges as defined
  
$
76,727
 
$
69,279
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
4.57
    
4.69
      
                   
                   
                   
                   
                   
 
                  
                   
(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
            
Page 2
JERSEY CENTRAL POWER & LIGHT COMPANY  
              
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)  
              
   
Nine Months Ended  
    
   
September 30,  
    
   
2006
  
 2005
    
       
 Restated
    
   
(Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
             
Income before extraordinary items
 
$
153,355
  
$
141,628
     
Interest and other charges, before reduction for amounts capitalized
    
70,092
    
63,859
      
Provision for income taxes
    
120,506
    
114,136
      
Interest element of rentals charged to income (a)
    
6,635
    
5,420
      
                   
Earnings as defined 
  
$
350,588
  
$
325,043
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                  
PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS): 
                  
Interest on long-term debt
  
$
56,612
  
$
56,843
     
Other interest expense
    
13,480
    
7,016
      
Preferred stock dividend requirements
    
1,167
    
375
      
Adjustments to preferred stock dividends
                  
to state on a pre-income tax basis 
    
917
    
302
      
Interest element of rentals charged to income (a)
    
6,635
    
5,420
      
                   
Fixed charges as defined plus preferred stock
                  
dividend requirements (pre-income tax basis) 
  
$
78,811
  
$
69,956
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
4.45
    
4.65
      
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS 
                  
(PRE-INCOME TAX BASIS) 
                  
                   
                   
                   
 
                  
                   
(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
               
METROPOLITAN EDISON COMPANY    
               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES    
               
   
 Nine Months Ended  
    
   
 September 30,  
    
   
 2006
  
 2005
    
   
 (Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
              
Income before extraordinary items
 
$
82,981
 
$
33,144
     
Interest and other charges, before reduction for amounts capitalized
    
35,546
    
33,513
      
Provision for income taxes
    
55,390
    
24,159
      
Interest element of rentals charged to income (a)
    
1,324
    
1,279
      
                   
Earnings as defined
  
$
175,241
 
$
92,095
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
    
25,987
   
27,887
     
Other interest expense
    
9,559
    
5,626
      
Interest element of rentals charged to income (a)
    
1,324
    
1,279
      
                   
Fixed charges as defined
  
$
36,870
 
$
34,792
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
4.75
    
2.65
      
                   
                   
                   
                   
                   
 
                  
                   
(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
               
PENNSYLVANIA ELECTRIC COMPANY    
               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES    
               
   
 Nine Months Ended  
    
   
 September 30,  
    
   
 2006
  
 2005
    
   
 (Dollars in thousands)  
    
EARNINGS AS DEFINED IN REGULATION S-K:
              
Income before extraordinary items
 
$
56,666
 
$
24,852
     
Interest and other charges, before reduction for amounts capitalized
    
33,974
    
29,579
      
Provision for income taxes
    
39,251
    
16,870
      
Interest element of rentals charged to income (a)
    
2,387
    
2,479
      
                   
Earnings as defined
  
$
132,278
 
$
73,780
     
                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                  
Interest on long-term debt
  
$
20,937
 
$
22,187
     
Other interest expense
    
13,037
    
7,392
      
Interest element of rentals charged to income (a)
    
2,387
    
2,479
      
                   
Fixed charges as defined
  
$
36,361
 
$
32,058
     
                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
    
3.64
   
2.30
     
                   
                   
                   
                   
                   
 
                  
                   
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest
element can be determined.