EX-12.C 5 ppl10q9-06exhibit12c.htm EXHIBIT 12(C) Exhibit 12(c)
Exhibit 12(c)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
   
12 Months
Ended
September 30,
  
12 Months
Ended
December 31,
   
2006
  
2005
  
2004
  
2003
  
2002
  
2001
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
136
    
$
151
    
$
176
    
$
201
    
$
209
    
$
220
  
Interest on short-term debt and
  other interest
    
19
      
22
      
7
      
3
      
3
      
4
  
Amortization of debt discount,
  expense and premium - net
    
8
      
9
      
7
      
8
      
7
      
6
  
Estimated interest component of
  operating rentals
    
9
      
8
      
8
      
7
      
7
      
8
  
Preferred security distributions of
  subsidiaries on a pre-tax basis
                                    
13
      
23
  
                                                 
Total fixed charges
  
$
172
    
$
190
    
$
198
    
$
219
    
$
239
    
$
261
  
Earnings, as defined:
                                                
Net income (a)
  
$
183
    
$
147
    
$
76
    
$
28
    
$
55
    
$
140
  
                                                 
Add:
                                                
Income taxes
    
78
      
69
      
8
      
18
      
18
      
65
  
Total fixed charges as above
  (excluding capitalized interest and
  preferred security distributions of
  subsidiaries on a pre-tax basis)
    
171
      
190
      
197
      
219
      
225
      
238
  
                                                 
Total earnings
  
$
432
    
$
406
    
$
281
    
$
265
    
$
298
    
$
443
  
                                                 
Ratio of earnings to fixed charges
    
2.5
      
2.1
      
1.4
      
1.2
      
1.2
      
1.7
  
                                                 
Preferred stock dividend requirements on a
  pre-tax basis
  
$
17
    
$
4
    
$
4
    
$
5
    
$
7
    
$
7
  
Fixed charges, as above
    
172
      
190
      
198
      
219
      
239
      
261
  
Total fixed charges and
  preferred stock dividends
  
$
189
    
$
194
    
$
202
    
$
224
    
$
246
    
$
268
  
Ratio of earnings to combined fixed
  charges and preferred stock dividends
    
2.3
      
2.1
      
1.4
      
1.2
      
1.2
      
1.7
  

(a)
  
Net income excludes the cumulative effect of a change in accounting principle.