EX-12.B 10 ppl10qexhibit12b.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
March 31,
  
12 Months
Ended
December 31,
   
2007
  
2006 (c)
  
2005 (c)
  
2004 (c)
  
2003 (c)
  
2002 (c)
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
315
    
$
296
    
$
259
    
$
255
    
$
149
    
$
169
  
Interest on short-term debt and
  other interest
    
21
      
16
      
26
      
23
      
25
      
52
  
Amortization of debt discount,
  expense and premium - net
    
2
      
(1
)
    
7
      
(6
)
    
31
      
9
  
Estimated interest component of
  operating rentals
    
15
      
15
      
15
      
17
      
31
      
21
  
Preferred securities distributions of
  subsidiaries on a pre-tax basis
                                    
8
      
12
  
                                                 
Total fixed charges (a)
  
$
353
    
$
326
    
$
307
    
$
289
    
$
244
    
$
263
  
Earnings, as defined:
                                                
Net income (b)
  
$
635
    
$
682
    
$
566
    
$
634
    
$
784
    
$
171
  
Preferred security dividend requirement
                                    
5
      
9
  
Less undistributed income (loss)
  of equity method investments
    
4
      
4
      
2
                      
(8
)
     
631
      
678
      
564
      
634
      
789
      
188
  
Add:
                                                
Income taxes
    
158
      
183
      
82
      
217
      
178
      
280
  
Total fixed charges as above (excluding
  capitalized interest, preferred security
  distributions of subsidiaries on a pre-tax
  basis and interest expense related to
  discontinued operations)
    
295
      
276
      
272
      
262
      
209
      
212
  
                                                 
Total earnings
  
$
1,084
    
$
1,137
    
$
918
    
$
1,113
    
$
1,176
    
$
680
  
                                                 
Ratio of earnings to fixed charges
    
3.1
      
3.5
      
3.0
      
3.9
      
4.8
      
2.6
  
     
(a)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(b)
  
Net income excludes minority interest, income (loss) from discontinued operations and the cumulative effects of changes in accounting principles.
(c)
  
Certain line items have been revised due to the planned sale of the Latin American businesses and the related reclassification of prior period operating results to "(Loss) Income from Discontinued Operations."