EX-12 5 ppl10q_9-02exhibit12c.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
September 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   $
213
    $
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
   
19
     
23
     
23
     
23
     
23
     
14
 

   
   
   
   
   
        Total fixed charges   $
249
    $
261
    $
284
    $
272
    $
255
    $
254
 

   
   
   
   
   
Earnings, as defined:                                                
  Net income (a)   $
70
    $
114
    $
250
    $
444
    $
361
    $
308
 
  Preferred security dividend
  requirements
   
21
     
26
     
26
     
37
     
48
     
40
 

   
   
   
   
   
     
91
     
140
     
276
     
481
     
409
     
348
 
Add:                                                
  Income taxes    
34
     
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
  dividends of subsidiaries on a
  pre-tax basis)
   
229
     
238
     
257
     
243
     
222
     
231
 

   
   
   
   
   
        Total earnings   $
354
    $
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 in 2000 and subsequent years are 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.