EX-12.B 10 ppl10-k2005exhibit12b.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)
                     
   
2005
  
2004 (b)
  
2003 (b)
  
2002 (b)
  
2001
                               
Fixed charges, as defined:
                                        
 
Interest on long-term debt
  
$
259
    
$
255
    
$
149
    
$
169
    
$
36
  
 
Interest on short-term debt and
  other interest
    
26
      
23
      
25
      
52
      
33
  
 
Amortization of debt discount,
  expense and premium - net
    
7
      
(6
)
    
31
      
9
      
2
  
 
Estimated interest component of
  operating rentals
    
15
      
17
      
31
      
21
      
19
  
 
Preferred security distributions of   subsidiaries on a pre-tax basis
                    
8
      
12
          
                                                 
       
Total fixed charges
  
$
307
    
$
289
    
$
244
    
$
263
    
$
90
  
                                         
Earnings, as defined:
                                        
 
Net income (a)
  
$
608
    
$
673
    
$
733
    
$
515
    
$
168
  
 
Preferred security dividend requirement
                    
5
      
8
          
 
Less undistributed income (loss) of
  equity method investments
    
(14
)
    
(13
)
    
(15
)
    
(22
)
    
20
  
       
622
      
686
      
753
      
545
      
148
  
Add:
                                        
 
Income taxes
    
75
      
207
      
194
      
270
      
274
  
 
Total fixed charges as above
  (excluding capitalized interest
  and preferred security distributions of
  subsidiaries on a pre-tax basis)
    
299
      
285
      
230
      
231
      
66
  
                                                 
       
Total earnings
  
$
996
    
$
1,178
    
$
1,177
    
$
1,046
    
$
488
  
                                         
Ratio of earnings to fixed charges
    
3.2
      
4.1
      
4.8
      
4.0
      
5.4
  
     
(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 May 2005 sale of the Sundance plant and the related reclassification of prior period operating losses to "Loss from Discontinued Operations."