EX-12 4 ppl10-q12b.htm PPL ELECTRIC UTILITIES Exhibit 12(b)

Exhibit 12(b)

                           
    PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
                           
    COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
    (Millions of Dollars)
                           
          12 Months   12 Months
          Ended   Ended
          September 30,
  December 31,
                           
          2001 (c)
  2000 (c)
  1999
  1998
  1997
Fixed charges, as defined:                    
  Interest on long-term debt   $    214    $    223    $    205    $    188    $    195 
  Interest on short-term debt and other interest     16    12    14    17 
  Amortization of debt discount, expense and premium - net          
  Interest on capital lease obligations:                    
    Charged to expense            
    Capitalized              
  Estimated interest component of operating rentals  
  14 
  19 
  18 
  15 
                           
      Total fixed charges   $    233 
  $    261 
  $    249 
  $    232 
  $    240 
                           
Earnings, as defined:                    
  Net income (a)   $    81    $    250    $    444    $    361    $    308 
  Preferred security dividend requirements   25    26    37    48    40 
  Less undistributed income of equity method investments    
   
   
   
 
        106    276    481    409    348 
                           
Add (Deduct):                    
  Income taxes   64    171    151    273    248 
  Amortization of capitalized interest on capital leases            
  Total fixed charges as above (excluding capitalized interest on capitalized lease obligations)   233 
  261 
  248 
  230 
  238 
                           
      Total earnings   $    403 
  $    710 
  $    882 
  $    914 
  $    836 
                           
Ratio of earnings to fixed charges (b)   1.73 
  2.72 
  3.54 
  3.94 
  3.48 
                           
   
   
(a) 2001, 2000, 1999 and 1998 net income excluding extraordinary items.
(b) Based on earnings excluding nonrecurring items, the ratio of earnings to fixed charges are:
  2000, 2.56; 1999, 3.35; and 1998, 3.53.
(c) Due to the corporate realignment on July 1, 2000, prior years are not comparable to 2001 and 2000.