EX-12 17 ppl10k_2002-exhibit12c.htm EXHIBIT 12C - PPL ELECTRIC UTILITIES Exhibit 12(c)
Exhibit 12(c)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
   
2002 (b)
   
2001 (b)
   
2000 (b)
   
1999
   
1998
 
   
   
   
   
   
 
Fixed charges, as defined:                                        
  Interest on long-term debt   $
209
    $
220
    $
223
    $
205
    $
188
 
  Interest on short-term debt and
  other interest
   
3
     
4
     
16
     
12
     
14
 
  Amortization of debt discount,
  expense and premium - net
   
7
     
6
     
4
     
3
     
2
 
  Interest on capital lease obligations                                        
    Charged to expense                    
4
     
9
     
8
 
    Capitalized                            
1
     
2
 
  Estimated interest component of
  operating rentals
   
7
     
8
     
14
     
19
     
18
 
  Preferred stock dividends of
  subsidiaries on a pre-tax basis
   
13
     
23
     
23
     
23
     
23
 
   
   
   
   
   
 
        Total fixed charges   $
239
    $
261
    $
284
    $
272
    $
255
 
   
   
   
   
   
 
Earnings, as defined:                                        
  Net income (a)   $
39
    $
114
    $
250
    $
444
    $
361
 
  Preferred security dividend
  requirements
   
16
     
26
     
26
     
37
     
48
 
   
   
   
   
   
 
     
55
     
140
     
276
     
481
     
409
 
Add:                                        
  Income taxes    
18
     
65
     
171
     
151
     
273
 
  Amortization of capitalized
  interest on capital leases
                   
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)
   
225
     
238
     
257
     
243
     
222
 
   
   
   
   
   
 
        Total earnings   $
298
    $
443
    $
706
    $
877
    $
906
 
   
   
   
   
   
 
Ratio of earnings to fixed charges (c)    
1.2
     
1.7
     
2.5
     
3.2
     
3.6
 
   
   
   
   
   
 
     
(a)   Net income excludes extraordinary item 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 19 to the Financial Statements 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.