EX-12.B 5 ppl10q-exhibit12b.htm EXHIBIT 12(B) ppl10q-exhibit12b.htm
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
   
9 Months
Ended
September 30,
  
12 Months
Ended
December 31,
   
2007
  
2006
  
2005
  
2004
  
2003
  
2002
Earnings, as defined:
                                                
Net income (a)
  
$
703
    
$
678
    
$
567
    
$
641
    
$
779
    
$
177
  
Preferred security dividend requirement
                                    
5
      
9
  
Less undistributed income (loss)
  of equity method investments
            
4
      
2
                      
(8
)
Income taxes
    
139
      
187
      
81
      
210
      
183
      
274
  
Total fixed charges as below (excluding capitalized interest, preferred security distributions of subsidiaries on a pre-tax basis and interest expense related to discontinued operations)
    
235
      
276
      
272
      
262
      
209
      
212
  
                                                 
Total earnings
  
$
1,077
    
$
1,137
    
$
918
    
$
1,113
    
$
1,176
    
$
680
  
                                                 
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
265
    
$
296
    
$
259
    
$
255
    
$
149
    
$
169
  
Interest on short-term debt and other interest
    
15
      
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
    
13
      
15
      
15
      
17
      
31
      
21
  
Preferred securities distributions of subsidiaries on a pre-tax basis
                                    
8
      
12
  
                                                 
Total fixed charges (b)
  
$
291
    
$
326
    
$
307
    
$
289
    
$
244
    
$
263
  
                                                 
Ratio of earnings to fixed charges
    
3.7
      
3.5
      
3.0
      
3.9
      
4.8
      
2.6
  

(a)
  
Net income excludes minority interest, discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
Interest on unrecognized tax benefits is not included in fixed charges.