EX-12.A 6 exhibit12a.htm EXHIBIT 12(A) exhibit12a.htm

PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
   
Six Months Ended June 30,
  
Years Ended December 31,
   
2009
  
2008 (c)
  
2007 (c)
  
2006 (c)
  
2005 (c)
  
2004 (c)
Earnings, as defined:
                                                
Income from Continuing Operations Before Income Taxes
  
$
339
    
$
1,357
    
$
1,281
    
$
1,099
    
$
795
    
$
854
  
Less earnings of equity method investments
    
2
      
3
      
5
      
6
      
7
      
4
  
Distributed income from equity method investments
    
2
      
3
      
7
      
3
      
5
      
5
  
     
339
      
1,357
      
1,283
      
1,096
      
793
      
855
  
                                                 
Total fixed charges as below
    
244
      
568
      
609
      
559
      
554
      
558
  
Less:
                                                
Capitalized interest
    
29
      
59
      
58
      
24
      
9
      
6
  
Preferred security distributions of subsidiaries on a pre-tax basis
    
11
      
27
      
23
      
24
      
5
      
5
  
Interest expense related to discontinued operations
    
2
      
8
      
35
      
36
      
37
      
30
  
Total fixed charges included in Income from Continuing Operations Before Income Taxes
    
202
      
474
      
493
      
475
      
503
      
517
  
                                                 
Total earnings
  
$
541
    
$
1,831
    
$
1,776
    
$
1,571
    
$
1,296
    
$
1,372
  
                                                 
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
196
    
$
478
    
$
522
    
$
482
    
$
465
    
$
491
  
Interest on short-term debt and other interest
    
15
      
28
      
35
      
13
      
29
      
20
  
Amortization of debt discount, expense and premium - net
    
8
      
12
      
8
      
11
      
23
      
8
  
Estimated interest component of operating rentals
    
13
      
22
      
21
      
29
      
32
      
34
  
Preferred securities distributions of subsidiaries on a pre-tax basis
    
11
      
27
      
23
      
24
      
5
      
5
  
Fixed charges of majority-owned share of 50% or less-owned persons
    
1
      
1
                                  
                                                 
Total fixed charges (a)
  
$
244
    
$
568
    
$
609
    
$
559
    
$
554
    
$
558
  
                                                 
Ratio of earnings to fixed charges
    
2.2
      
3.2
      
2.9
      
2.8
      
2.3
      
2.5
  
Ratio of earnings to combined fixed charges and preferred stock dividends (b)
    
2.2
      
3.2
      
2.9
      
2.8
      
2.3
      
2.5
  

(a)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(b)
  
PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.
(c)
  
Certain line items have been revised due to the expected sales of the Long Island generation business and the Maine hydroelectric generation business and the related reclassification of prior period operating results to "Income (Loss) from Discontinued Operations."