EX-12 5 ppl10q_3-05ex12c.htm PPL Form 10-Q 1st Quarter 2005

Exhibit 12(c)

PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of Dollars)

 
   

12 Months
Ended
March 31,

   

12 Months
Ended
December 31,

 

   

2005

   

2004

   

2003

   

2002

   

2001

   

2000

 

Fixed charges, as defined:

                                               
 

Interest on long-term debt

 

$

169

   

$

176

   

$

201

   

$

209

   

$

220

   

$

223

 
 

Interest on short-term debt and
  other interest

   

18

     

7

     

3

     

3

     

4

     

16

 
 

Amortization of debt discount,
  expense and premium - net

   

7

     

7

     

8

     

7

     

6

     

4

 
 

Interest on capital lease obligations
  charged to expense

                                           

4

 
 

Estimated interest component of
  operating rentals

   

8

     

8

     

7

     

7

     

8

     

14

 
 

Preferred security distributions of
  subsidiaries on a pre-tax basis

                           

13

     

23

     

23

 

                                                         
       

Total fixed charges

 

$

202

   

$

198

   

$

219

   

$

239

   

$

261

   

$

284

 

Earnings, as defined:

                                               
 

Net income (a)

 

$

56

   

$

74

   

$

25

   

$

39

   

$

114

   

$

250

 
 

Preferred security dividend
  requirements

   

2

     

2

     

3

     

16

     

26

     

26

 

       

58

     

76

     

28

     

55

     

140

     

276

 

Add:

                                               
 

Income taxes (benefit)

   

(9

)

   

8

     

18

     

18

     

65

     

171

 
 

Amortization of capitalized
  interest on capital leases

                                           

2

 
 

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

   

202

     

197

     

219

     

225

     

238

     

257

 

                                                         
       

Total earnings

 

$

251

   

$

281

   

$

265

   

$

298

   

$

443

   

$

706

 

                                                 

Ratio of earnings to fixed charges

   

1.2

     

1.4

     

1.2

     

1.2

     

1.7

     

2.5

 

 

(a)

 

Net income excludes extraordinary item and the cumulative effect of a change in accounting principle.