EX-12.B 26 ppl10-k2006exhibit12b.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)
                     
   
2006
  
2005 (b)
  
2004 (b)
  
2003 (b)
  
2002 (b)
                               
Fixed charges, as defined:
                                        
Interest on long-term debt
  
$
296
    
$
259
    
$
255
    
$
149
    
$
169
  
Interest on short-term debt and
  other interest
    
16
      
26
      
23
      
25
      
52
  
Amortization of debt discount,
  expense and premium - net
    
(1
)
    
7
      
(6
)
    
31
      
9
  
Estimated interest component of
  operating rentals
    
15
      
15
      
17
      
31
      
21
  
Preferred security distributions of   subsidiaries on a pre-tax basis
                            
8
      
12
  
                                         
Total fixed charges
  
$
326
    
$
307
    
$
289
    
$
244
    
$
263
  
                                         
Earnings, as defined:
                                        
Net income (a)
  
$
729
    
$
610
    
$
671
    
$
731
    
$
510
  
Preferred security dividend requirement
                            
5
      
8
  
Less undistributed income (loss) of
  equity method investments
    
(2
)
    
(14
)
    
(13
)
    
(15
)
    
(22
)
     
731
      
624
      
684
      
751
      
540
  
Add:
                                        
Income taxes
    
189
      
76
      
205
      
193
      
267
  
Total fixed charges as above
  (excluding capitalized interest
  and preferred security distributions of
  subsidiaries on a pre-tax basis)
    
304
      
300
      
284
      
229
      
231
  
                                         
Total earnings
  
$
1,224
    
$
1,000
    
$
1,173
    
$
1,173
    
$
1,038
  
                                         
Ratio of earnings to fixed charges
    
3.8
      
3.3
      
4.1
      
4.8
      
3.9
  

(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 2006 sale of the 50% ownership interest in the Griffith plant and the related reclassification of prior period operating losses to "Loss from Discontinued Operations."