EX-12 27 ppl10k_2004-exhibit12b.htm Exhibit 12(b)

Exhibit 12(b)

PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES

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

2004

    

2003

   

2002

   

2001

    

2000

  
   

   

   

   

   

 

Fixed charges, as defined:

                                        
 

Interest on long-term debt

  

$

264

    

$

149

    

$

169

    

$

36

    

$

54

  
 

Interest on short-term debt and
  other interest

    

23

      

25

      

52

      

33

      

75

  
 

Amortization of debt discount,
  expense and premium - net

    

(5

)

    

31

      

9

      

2

      

11

  
 

Estimated interest component of
  operating rentals

    

17

      

38

      

23

      

19

      

9

  
 

Preferred security distributions of   subsidiaries on a pre-tax basis

            

8

      

12

                  
           

   

   

   

   

 
       

Total fixed charges

  

$

299

    

$

251

    

$

265

    

$

90

    

$

149

  
           

   

   

   

   

 

Earnings, as defined:

                                        
 

Net income (a)

  

$

661

    

$

719

    

$

509

    

$

168

    

$

246

  
 

Preferred security dividend requirement

            

5

      

9

                  
 

Less undistributed income (loss) of
  equity method investments

    

(12

)

    

(15

)

    

(22

)

    

20

      

74

  

       

673

      

739

      

540

      

148

      

172

  

Add:

                                        
 

Income taxes

    

199

      

185

      

266

      

274

      

125

  
 

Total fixed charges as above
  (excluding capitalized interest
  and preferred security distributions of
  subsidiaries on a pre-tax basis)

    

294

      

237

      

234

      

66

      

135

  
           

   

   

   

   

 
       

Total earnings

  

$

1,166

    

$

1,161

    

$

1,040

    

$

488

    

$

432

  
           

   

   

   

   

 

Ratio of earnings to fixed charges

    

3.9

      

4.6

      

3.9

      

5.4

      

2.9

  
           

   

   

   

   

 
                                     

(a)

  

Net income excludes minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles.