EX-12 11 ppl10q_6-03ex12c.htm 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)

 

12 Months
Ended
June 30,


12 Months
Ended
December 31,


   

2003


   

2002


   

2001


   

2000


   

1999 (b)


   

1998 (b)


 

Fixed charges, as defined:

                                               
 

Interest on long-term debt

 

$

207

   

$

209

   

$

220

   

$

223

   

$

205

   

$

188

 
 

Interest on short-term debt and
  other interest

   

3

     

3

     

4

     

16

     

12

     

14

 
 

Amortization of debt discount,
  expense and premium - net

   

8

     

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

     

7

     

8

     

14

     

19

     

18

 
 

Preferred securities distributions of
  subsidiaries on a pre-tax basis

   

3

     

13

     

23

     

23

     

23

     

23

 







                                                         
       

Total fixed charges

 

$

228

   

$

239

   

$

261

   

$

284

   

$

272

   

$

255

 







                                                 
                                                 

Earnings, as defined:

                                               
 

Net income (a)

 

$

56

   

$

39

   

$

114

   

$

250

   

$

444

   

$

361

 
 

Preferred security dividend requirements

   

7

     

16

     

26

     

26

     

37

     

48

 







     

63

     

55

     

140

     

276

     

481

     

409

 

Add:

                                               
 

Income taxes

   

31

     

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)

   

220

     

225

     

238

     

257

     

243

     

222

 







                                                         
       

Total earnings

 

$

314

   

$

298

   

$

443

   

$

706

   

$

877

   

$

906

 







                                                 

Ratio of earnings to fixed charges

   

1.4

     

1.2

     

1.7

     

2.5

     

3.2

     

3.6

 







(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 19 in PPL Electric's Form 10-K for the year ended December 31, 2002 for additional information.