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.