EX-12 14 exhibit12nu.htm RATIO OF EARNINGS NU NU Ratio of Earnings


Northeast Utilities

 

Exhibit 12

Ratio of Earnings to Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Ended

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2008

 

Year Ended December 31,

Earnings, as defined:

 

(unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

 

 

   Net income/(loss) from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

     before cumulative effect of accounting change

$

188,930 

$

245,896 

$

132,936 

$

(256,903)

$

70,423 

$

77,105 

   Income tax expense/(benefit)

 

68,381 

 

109,420 

 

 (76,326)

 

 (184,862)

 

22,388 

 

19,751 

   Equity in earnings of regional nuclear

 

 

 

 

 

 

 

 

 

 

 

 

     generating and transmission companies

 

 (1,374)

 

 (3,983)

 

 (334)

 

 (3,311)

 

(2,592)

 

(4,487)

   Dividends received from regional

 

 

 

 

 

 

 

 

 

 

 

 

      equity investees

 

533 

 

4,542 

 

2,145 

 

687 

 

3,879 

 

8,904 

   Fixed charges, as below

 

223,621 

 

275,611 

 

267,243 

 

265,046 

 

235,699 

 

228,974 

   Less: Interest capitalized (including AFUDC)

 

 (13,454)

 

 (17,568)

 

 (14,482)

 

 (10,463)

 

(4,517)

 

(5,030)

   Preferred dividend security requirements of

 

 

 

 

 

 

 

 

 

 

 

 

     consolidated subsidiaries

 

 (4,169)

 

 (9,265)

 

 (9,265)

 

(9,265)

 

(9,265)

 

(9,265)

 Total earnings/(loss), as defined

$

462,468 

$

604,653 

$

301,917 

$

 (199,071)

$

316,015 

$

315,952 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, as defined:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Interest on long-term debt (a)

$

142,333 

$

162,841 

$

141,579 

$

131,870 

$

107,365 

$

88,700 

   Interest on rate reduction bonds

 

38,910 

 

61,580 

 

74,242 

 

87,439 

 

98,899 

 

108,359 

   Other interest (b)

 

18,355 

 

15,824 

 

22,375 

 

19,276 

 

8,586 

 

10,254 

   Rental interest factor

 

6,400 

 

8,533 

 

5,300 

 

6,733 

 

7,067 

 

7,366 

   Preferred dividend security requirements of

 

 

 

 

 

 

 

 

 

 

 

 

     consolidated subsidiaries

 

4,169 

 

9,265 

 

9,265 

 

9,265 

 

9,265 

 

9,265 

   Interest capitalized (including AFUDC)

 

13,454 

 

17,568 

 

14,482 

 

10,463 

 

4,517 

 

5,030 

 Total fixed charges, as defined

$

223,621 

$

275,611 

$

267,243 

$

265,046 

$

235,699 

$

228,974 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

2.07 

 

2.19 

 

1.13 

 

 (0.75)

(c)

1.34 

 

1.38 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Interest on long-term debt amounts include amortized premiums, discounts and capitalized expenses related to indebtedness.

 

 

 

 

 

(b)

For the nine months ended September 30, 2008 and for the year ended December 31, 2007, other interest includes interest expense related to Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109."

 

(c)

Consolidated earnings were inadequate to cover fixed charges by $464.1 million for the year ended December 31, 2005.