EX-12 2 a2042903zex-12.txt EXHIBIT 12 EXHIBIT 12 ILLINOIS POWER COMPANY STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of Dollars)
Year Ended December 31, Supplemental(1) -------------------------------------------------------------------- 1996 1997 1997 1998 ---- ---- ---- ---- Earnings Available for Fixed Charges: Net Income (Loss) $228,618 $(44,173) $(44,173) $(1,552,435) Add: Income Taxes: Current 163,873 72,680 72,680 7,556 Deferred - Net (16,028) 36,963 36,963 (30,203) Allocated income taxes (2,642) (1,446) (1,446) (3,506) Investment tax credit - deferred (7,278) (7,278) (7,278) (8,256) Income tax effect of FAS 71 write-off - (117,998) (117,998) - Income tax effect of CPS impairment - - - (1,143,252) Interest on long-term debt 118,438 109,595 109,595 106,879 Amortization of debt expense and premium-net, and other interest charges 22,325 26,260 26,260 28,107 One-third of all rentals (Estimated to be representative of the interest component) 4,346 4,229 4,229 4,054 Interest on in-core fuel 4,757 3,842 3,842 3,716 FAS 71 Regulatory write-offs - - 313,030 - CPS impairment - - - - ----------- ----------- ------------ ------------- Earnings (loss) available for fixed charges $516,409 $82,674 $395,704 ($2,587,340) =========== =========== ============ ============= Fixed charges: Interest on long-term debt $118,438 $109,595 $109,595 $106,879 Amortization of debt expense and premium-net, and other interest charges 28,957 31,204 31,204 35,829 One-third of all rentals (Estimated to be representative of the interest component) 4,346 4,229 4,229 4,054 ----------- ----------- ------------ ------------- Total Fixed Charges $151,741 $145,028 $145,028 $146,762 =========== =========== ============ ============= Ratio of earnings to fixed charges 3.40 N/A * 2.73 N/A * =========== =========== ============ ============= Supplemental(2) --------------------------------------------------- 1998 1999 2000 ---- ---- ---- Earnings Available for Fixed Charges: Net Income (Loss) $(1,552,435) $113,089 $134,935 Add: Income Taxes: Current 7,556 47,639 (102,704) Deferred - Net (30,203) 8,083 111,935 Allocated income taxes (3,506) 16,992 75,047 Investment tax credit - deferred (8,256) (1,339) (982) Income tax effect of FAS 71 write-off - - - Income tax effect of CPS impairment (1,143,252) - - Interest on long-term debt 106,879 124,261 115,329 Amortization of debt expense and premium-net, and other interest charges 28,107 24,190 23,795 One-third of all rentals (Estimated to be representative of the interest component) 4,054 3,836 3,285 Interest on in-core fuel 3,716 4,424 - FAS 71 Regulatory write-offs - - - CPS impairment 2,666,909 - - ----------- ----------- ----------- Earnings (loss) available for fixed charges $79,569 $341,175 $360,640 ============ =========== =========== Fixed charges: Interest on long-term debt $106,879 $124,261 $115,329 Amortization of debt expense and premium-net, and other interest charges 35,829 29,830 23,795 One-third of all rentals (Estimated to be representative of the interest component) 4,054 3,836 3,285 ----------- ----------- ----------- Total Fixed Charges $146,762 $157,927 $142,409 ============ =========== =========== Ratio of earnings to fixed charges N/A * 2.16 2.53 ============ =========== ===========
* Earnings are inadequate to cover fixed charges. Additional earnings (thousands) for 1997, 1998 and Supplemental 1998 of $62,354, $2,734,102 and $67,193, respectively, are required to attain a one-to-one ratio of earnings to fixed charges. 1 Supplemental ratio of earnings to fixed charges presented to exclude write-off related to the discontinued application of provisions of SFAS 71, "Accounting for the Effects of Certain Types of Regulation" for the generation segment of the business. 2 Supplemental ratio of earnings to fixed charges presented to exclude write-off related to Clinton Impairment.