EX-12 8 ppl10q_6-02ex12c.htm EXHIBIT 12(C) EXHIBIT 12(c)

Exhibit 12(c)

PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)

 

 

 

12 Months
Ended
June 30,

 

 

12 Months
Ended
December 31, (c)

 

 


 

 


 

 

 

2002 (b)

 

 

2001(b)

 

 

2000(b)

 

 

1999

 

 

1998

 

 

1997

 

 


 

 


 

 


 

 


 

 


 

 


 

Fixed charges, as defined:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on long-term debt

 

$

216

 

 

$

220

 

 

$

223

 

 

$

205

 

 

$

188

 

 

$

195

 

 

Interest on short-term debt and other interest

 

 

3

 

 

 

4

 

 

 

16

 

 

 

12

 

 

 

14

 

 

 

17

 

 

Amortization of debt discount, expense and premium - net

 

 

7

 

 

 

6

 

 

 

4

 

 

 

3

 

 

 

2

 

 

 

2

 

 

Interest on capital lease obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charged to expense

 

 

 

 

 

 

 

 

 

 

4

 

 

 

9

 

 

 

8

 

 

 

9

 

 

 

Capitalized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

2

 

 

 

2

 

 

Estimated interest component of operating rentals

 

 

7

 

 

 

8

 

 

 

14

 

 

 

19

 

 

 

18

 

 

 

15

 

 

Preferred stock dividends of subsidiaries on a pre-tax basis

 

 

21

 

 

 

23

 

 

 

23

 

 

 

23

 

 

 

23

 

 

 

14

 

 


 

 


 

 


 

 


 

 


 

 


 

 

 

 

 

Total fixed charges

 

$

254

 

 

$

261

 

 

$

284

 

 

$

272

 

 

$

255

 

 

$

254

 

 


 

 


 

 


 

 


 

 


 

 


 

Earnings, as defined:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (a)

 

$

71

 

 

$

114

 

 

$

250

 

 

$

444

 

 

$

361

 

 

$

308

 

 

Preferred security dividend requirements

 

 

24

 

 

 

26

 

 

 

26

 

 

 

37

 

 

 

48

 

 

 

40

 

 


 

 


 

 


 

 


 

 


 

 


 

 

 

 

95

 

 

 

140

 

 

 

276

 

 

 

481

 

 

 

409

 

 

 

348

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

32

 

 

$

65

 

 

$

171

 

 

$

151

 

 

$

273

 

 

$

248

 

 

Amortization of capitalized interest on capital leases

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

Total fixed charges as above (excluding capitalized interest,
   capitalized interest on capital lease obligations and
   preferred stock dividendsof subsidiaries on a pre-tax basis)

 

 

232

 

 

 

238

 

 

 

257

 

 

 

243

 

 

 

222

 

 

 

231

 

 


 

 


 

 


 

 


 

 


 

 


 

 

 

 

 

Total earnings

 

$

359

 

 

$

443

 

 

$

706

 

 

$

877

 

 

$

906

 

 

$

829

 

 


 

 


 

 


 

 


 

 


 

 


 

Ratio of earnings to fixed charges

 

 

1.4

 

 

 

1.7

 

 

 

2.5

 

 

 

3.2

 

 

 

3.6

 

 

 

3.3

 

 


 

 


 

 


 

 


 

 


 

 


 

(a)

Net income excludes extraordinary items and the cumulative effect of a change in accounting principle.

(b)

Due to the corporate realignment on July 1, 2000, data subsequent to 2000 is not comparable to prior years. See Note 12 in PPL Electric's Form 10-K for the year

ended December 31, 2001 for additional information.

(c)

Ratio of earnings to fixed charges for years 2001 and prior were recalculated to give proper effect of preferred security dividends of subsidiaries on a pre-tax basis.