EX-12.7 45 ex12_7.htm EXHIBIT 12.7 - FIXED CHARGE RATIO - MET-ED ex12_7.htm
                               
EXHIBIT 12.7
  
                               
Page 1
  
METROPOLITAN EDISON COMPANY
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                   
     
Year Ended December 31,
       
2003
    
2004
    
2005
    
2006 (b)
    
2007
  
     
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
$
           60,953
  
$
           66,955
  
$
           45,919
  
$
        (240,195)
  
$
           95,463
  
Interest and other charges, before reduction for amounts capitalized
                          
 
and deferred
  
           46,277
    
           45,057
    
           44,655
    
           47,385
    
           51,022
  
Provision for income taxes
  
           44,006
    
           38,217
    
           30,084
    
           77,326
    
           68,270
  
Interest element of rentals charged to income (a)
  
                437
    
             1,401
    
             1,597
    
             1,616
    
             2,160
  
                                   
 
Earnings as defined
$
         151,673
  
$
         151,630
  
$
         122,255
  
$
        (113,868)
  
$
         216,915
  
                                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                              
Interest before reduction for amounts capitalized and deferred
$
           42,498
  
$
           45,057
  
$
           44,655
  
$
           47,385
  
$
           51,022
  
Subsidiary's preferred stock dividend requirements
  
             3,779
    
                     -
    
                     -
    
                     -
    
                     -
  
Interest element of rentals charged to income (a)
  
                437
    
             1,401
    
             1,597
    
             1,616
    
             2,160
  
                                   
 
Fixed charges as defined
$
           46,714
  
$
           46,458
  
$
           46,252
  
$
           49,001
  
$
           53,182
  
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
3.25
    
3.26
    
2.64
    
(2.32)
    
4.08
  
                                   
                                   
                               
                                   
 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
                                   
 
(b) The earnings as defined in 2006 would need to increase $162,869,000 for the fixed charge ratios to be 1.0.
                
                                   
                                   
                                   
                                   
                                   
 

 
 
 
 
 

 
                                EXHIBIT 12.7  
                             
Page 2
  
METROPOLITAN EDISON COMPANY
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
                                   
     
Year Ended December 31,
       
2003
    
2004
    
2005
    
2006 (b)
    
2007
  
     
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
$
           60,953
  
$
           66,955
  
$
           45,919
  
$
     (240,195)
  
$
       95,463
  
Interest and other charges, before reduction for amounts capitalized
                          
 
and deferred
  
           46,277
    
           45,057
    
           44,655
    
         47,385
    
       51,022
  
Provision for income taxes
  
           44,006
    
           38,217
    
           30,084
    
         77,326
    
       68,270
  
Interest element of rentals charged to income (a)
  
                437
    
             1,401
    
             1,597
    
           1,616
    
         2,160
  
                                   
 
Earnings as defined
$
         151,673
  
$
         151,630
  
$
         122,255
  
$
     (113,868)
  
$
     216,915
  
                                   
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                          
 
PREFERRED STOCK DIVIDEND REQUIREMENTS
                              
 
(PRE-INCOME TAX BASIS):
                              
Interest before reduction for amounts capitalized and deferred
$
           42,498
  
$
           45,057
  
$
           44,655
  
$
         47,385
  
$
       51,022
  
Preferred stock dividend requirements
  
             3,779
    
                     -
    
                     -
    
                  -
    
                 -
  
Adjustments to preferred stock dividends
                              
 
to state on a pre-income tax basis
  
                     -
    
                     -
    
                     -
    
                  -
    
                 -
  
Interest element of rentals charged to income (a)
  
                437
    
             1,401
    
             1,597
    
           1,616
    
         2,160
  
                                   
Fixed charges as defined plus preferred stock
                              
 
dividend requirements (pre-income tax basis)
$
           46,714
  
$
           46,458
  
$
           46,252
  
$
         49,001
  
$
       53,182
  
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                          
 
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                          
 
(PRE-INCOME TAX BASIS)
  
3.25
    
3.26
    
2.64
    
(2.32)
    
4.08
  
                                   
                               
                                   
 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
                                   
 
(b) The earnings as defined in 2006 would need to increase $162,869,000 for the fixed charge ratios to be 1.0.