EX-12.A 10 ppl10q6-05ex12a.htm EXHIBIT 12(A) Exhibit 12(a)

Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
   
12 Months
Ended
June 30,
    
12 Months
Ended
December 31,
  
             
   
2005
    
2004 (c)
    
2003 (c)
    
2002 (c)
    
2001
    
2000
  
                                     
Fixed charges, as defined:
                                                
 
Interest on long-term debt
  
$
485
    
$
491
    
$
417
    
$
486
    
$
351
    
$
323
  
 
Interest on short-term debt and
  other interest
    
32
      
20
      
25
      
70
      
44
      
64
  
 
Amortization of debt discount,
  expense and premium - net
    
8
      
8
      
41
      
25
      
17
      
5
  
 
Interest on capital lease obligations
                                                
   
charged to expense
                                            
4
  
 
Estimated interest component of
  operating rentals
    
32
      
34
      
45
      
38
      
36
      
25
  
 
Preferred securities distributions of
  subsidiaries on a pre-tax basis
    
5
      
5
      
45
      
79
      
64
      
31
  
                                     
                                                         
       
Total fixed charges
  
$
562
    
$
558
    
$
573
    
$
698
    
$
512
    
$
452
  
                                     
Earnings, as defined:
                                                
 
Net income (a)
  
$
730
    
$
721
    
$
740
    
$
444
    
$
167
    
$
491
  
 
Preferred security dividend requirements
    
2
      
2
      
29
      
66
      
52
      
26
  
 
Less undistributed income (loss)
  of equity method investments
    
(14
)
    
(13
)
    
(19
)
    
(23
)
    
20
      
74
  
                                     
       
746
      
736
      
788
      
533
      
199
      
443
  
Add:
                                                
 
Income taxes
    
172
      
205
      
180
      
214
      
261
      
294
  
 
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)
    
552
      
547
      
521
      
598
      
419
      
405
  
                                     
                                                         
       
Total earnings
  
$
1,470
    
$
1,488
    
$
1,489
    
$
1,345
    
$
879
    
$
1,144
  
                                     
                                                 
Ratio of earnings to fixed charges
    
2.6
      
2.7
      
2.6
      
1.9
      
1.7
      
2.5
  
                                     
Ratio of earnings to combined fixed
  charges and preferred stock
  dividends (b)
    
2.6
      
2.7
      
2.6
      
1.9
      
1.7
      
2.5
  
                                     
 
(a)
  
Net income excludes extraordinary item, minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.
(c)
  
Certain line items have been revised due to the June 2005 sale of the Sundance plant and the related reclassification of prior period operating losses to "Loss from Discontinued Operations."