EX-12 4 ppl10q_9-02exhibit12b.htm EXHIBIT 12(B) Exhibit 12(b)
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
12 Months
Ended
September 30,
12 Months
Ended
December 31,
2002 (b)
2001 (b)
2000 (b)
1999
1998
1997
   
   
   
   
   
Fixed charges, as defined:                                                
  Interest on long-term debt   $
145
     $
36
     $
54
     $
20
     $
11
     $
1
  
  Interest on short-term debt and
  other interest		    
48
      
33
      
75
      
32
      
14
      
11
  
  Amortization of debt discount,
  expense and premium - net		    
2
      
2
      
11
      
1
                  
  Estimated interest component of
  operating rentals		    
20
      
19
      
9
                          
  Preferred stock dividends of
  subsidiaries on a pre-tax basis		    
9
                                          
   
   
   
   
   
        Total fixed charges   $
224
     $
90
     $
149
     $
53
     $
25
     $
12
  
   
   
   
   
   
Earnings, as defined:                                                
  Net income (loss) (a)   $
45
     $
168
     $
246
     $
(20
 )   $
12
     $
(15
 )
  Preferred security dividend requirement    
6
                                          
  Less undistributed income (loss)
   of equity method investments		    
17
      
20
      
74
      
56
      
3
      
(25
 )
   
   
   
   
   
       
34
      
148
      
172
      
(76
 )    
9
      
10
  
Add:                                                
  Income taxes (benefit)    
262
      
274
      
124
      
(29
 )    
(6
 )    
(1
 )
  Total fixed charges as above
  (excluding capitalized interest
  and preferred stock dividends of
  subsidiaries on a pre-tax basis)		    
195
      
66
      
136
      
52
      
24
      
11
  
   
   
   
   
   
        Total earnings   $
491
     $
488
     $
432
     $
(53
 )   $
27
     $
20
  
   
   
   
   
   
Ratio of earnings to fixed charges    
2.2
      
5.4
      
2.9
      
(1.0
 )    
1.1
      
1.7
  
   
   
   
   
   
Deficiency                           $
106
                  
                         
                 
                                                         
(a) Net income (loss) excludes minority interest and the cumulative effect of a change in accounting principle.
(b) Due to the corporate realignment on July 1, 2000, data in 2000 and subsequent years are not comparable to prior years. See Note 16 in PPL Energy Supply's Form 10-K for the year ended December 31, 2001 for additional information.