EX-12.B 11 ppl10q6-05ex12b.htm EXHIBIT 12(B) Exhibit 12(b)
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
   
12 Months
Ended
June 30,
    
12 Months
Ended
December 31,
  
             
   
2005
    
2004 (b)
    
2003 (b)
    
2002 (b)
    
2001
    
2000
  
                                     
Fixed charges, as defined:
                                                
 
Interest on long-term debt
  
$
264
    
$
255
    
$
149
    
$
169
    
$
36
    
$
54
  
 
Interest on short-term debt and
  other interest
    
31
      
23
      
25
      
52
      
33
      
75
  
 
Amortization of debt discount,
  expense and premium - net
    
(3
)
    
(6
)
    
31
      
9
      
2
      
11
  
 
Estimated interest component of
  operating rentals
    
14
      
17
      
31
      
21
      
19
      
9
  
 
Preferred securities distributions of
  subsidiaries on a pre-tax basis
                    
8
      
12
                  
                                     
                                                         
       
Total fixed charges
  
$
306
    
$
289
    
$
244
    
$
263
    
$
90
    
$
149
  
                                     
Earnings, as defined:
                                                
 
Net income (a)
  
$
668
    
$
673
    
$
733
    
$
515
    
$
168
    
$
246
  
 
Preferred security dividend requirement
                    
5
      
8
                  
 
Less undistributed income (loss)
  of equity method investments
    
(12
)
    
(13
)
    
(15
)
    
(22
)
    
20
      
74
  
                                     
       
680
      
686
      
753
      
545
      
148
      
172
  
Add:
                                                
 
Income taxes
    
157
      
207
      
194
      
270
      
274
      
125
  
 
Total fixed charges as above
(excluding capitalized interest
  and preferred security distributions of
  subsidiaries on a pre-tax basis)
    
301
      
285
      
230
      
231
      
66
      
135
  
                                     
                                                         
       
Total earnings
  
$
1,138
    
$
1,178
    
$
1,177
    
$
1,046
    
$
488
    
$
432
  
                                     
                                                 
Ratio of earnings to fixed charges
    
3.7
      
4.1
      
4.8
      
4.0
      
5.4
      
2.9
  
                                     
 
(a)
  
Net income excludes minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
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."