EX-12.C 6 ppl10q-exhibit12c.htm EXHIBIT 12(C) ppl10q-exhibit12c.htm
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)
 
   
9 Months
Ended
September 30,
 
12 Months
Ended
December 31,
   
2007
 
2006
 
2005
 
2004
 
2003
 
2002
Earnings, as defined:
                                               
Net income
 
$
131
   
$
194
   
$
147
   
$
76
   
$
28
   
$
55
 
Income taxes
   
62
     
104
     
69
     
8
     
18
     
18
 
Total fixed charges as below
  (excluding capitalized interest and
  preferred security distributions of
  subsidiaries on a pre-tax basis)
   
106
     
158
     
190
     
197
     
219
     
225
 
                                                 
Total earnings
 
$
299
   
$
456
   
$
406
   
$
281
   
$
265
   
$
298
 
                                                 
Fixed charges, as defined:
                                               
Interest on long-term debt
 
$
84
   
$
131
   
$
151
   
$
176
   
$
201
   
$
209
 
Interest on short-term debt and
  other interest
   
17
     
13
     
22
     
7
     
3
     
3
 
Amortization of debt discount,
  expense and premium - net
   
5
     
8
     
9
     
7
     
8
     
7
 
Estimated interest component of
  operating rentals
   
3
     
7
     
8
     
8
     
7
     
7
 
Preferred security distributions of
  subsidiaries on a pre-tax basis
                                           
13
 
                                                 
Total fixed charges (a)
 
$
109
   
$
159
   
$
190
   
$
198
   
$
219
   
$
239
 
                                                 
Ratio of earnings to fixed charges
   
2.7
     
2.9
     
2.1
     
1.4
     
1.2
     
1.2
 
                                                 
Preferred stock dividend requirements on a
  pre-tax basis
 
$
20
   
$
24
   
$
4
   
$
4
   
$
5
   
$
7
 
Fixed charges, as above
   
109
     
159
     
190
     
198
     
219
     
239
 
Total fixed charges and preferred
  stock dividends
 
$
129
   
$
183
   
$
194
   
$
202
   
$
224
   
$
246
 
Ratio of earnings to combined fixed
  charges and preferred stock dividends
   
2.3
     
2.5
     
2.1
     
1.4
     
1.2
     
1.2
 

(a)
 
Interest on unrecognized tax benefits is not included in fixed charges.