EX-12 3 gpu_10q2qtr-0801ex12.txt EXHIBIT 12 Exhibit 12A Page 1 of 2 GPU, INC. AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED Six Months Ended ---------------------------- June 30, June 30, 2001 2000 ------------ ----------- OPERATING REVENUES $2,648,310 $2,456,818 --------- --------- OPERATING EXPENSES: 2,211,347 2,258,508 Interest portion of rentals (A) 9,559 11,917 Fixed charges of service company subsidiaries (B) 2,343 2,548 --------- --------- Net expense 2,199,445 2,244,043 --------- --------- OTHER INCOME AND DEDUCTIONS: Allowance for funds used during construction 845 2,127 Equity in undistributed earnings/(losses) of affiliates, net (6,180) 5,772 Other income, net 83,026 50,210 Minority interest net income (1,766) (1,086) --------- --------- Total other income and deductions 75,925 57,023 --------- --------- EARNINGS AVAILABLE FOR FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (excluding taxes based on income) $ 524,790 $ 269,798 ========= ========= FIXED CHARGES: Interest on funded indebtedness $ 228,292 $ 269,101 Other interest (C) 16,647 15,687 Preferred stock dividends of subsidiary on a pretax basis (E) 4,746 1,465 Interest portion of rentals (A) 9,559 11,917 --------- --------- Total fixed charges $ 259,244 $ 298,170 ========= ========= RATIO OF EARNINGS TO FIXED CHARGES (F) 2.02 0.90 ==== ==== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (D) 2.02 0.90 ==== ==== Exhibit 12A Page 2 of 2 GPU, INC. AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED ------------------------- NOTES: (A) GPU has included the equivalent of the interest portion of all rentals charged to income as fixed charges for this statement and has excluded such components from operating expenses. (B) Represents fixed charges of GPU Service, Inc. which are accounted for as operating expenses in GPU's consolidated income statement. GPU has removed the fixed charges from operating expenses and included such amounts in fixed charges as interest on funded indebtedness and other interest for this statement. (C) Includes amount for subsidiary-obligated mandatorily redeemable preferred securities of $5,350 and $5,350 for the six month periods ended June 30, 2001 and 2000, respectively, and amount for subsidiary-obligated trust preferred securities of $7,345 and $7,345 for the six month periods ended June 30, 2001 and 2000, respectively. (D) GPU, Inc., 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. (E) Calculation of preferred stock dividends of subsidiaries on a pretax basis is as follows: Six Months Ended ---------------------------- June 30, June 30, 2001 2000 --------- ---------- Income/(loss) before provision for income taxes and preferred stock dividends of subsidiaries $270,292 $(26,907) Income/(loss) before preferred stock dividends of subsidiaries 158,428 (75,693) Pretax earnings ratio 170.6% 35.5% Preferred stock dividends of subsidiaries 2,782 4,122 Preferred stock dividends of subsidiaries on a pretax basis 4,746 1,465 (F) For the six month period ended June 30, 2000, GPU, Inc.'s pre-tax earnings were inadequate to cover its fixed charges for the same period. The amount of such earnings deficiency for June 30, 2000 was $28.4 million pre-tax. Exhibit 12B Page 1 of 2 JERSEY CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARY COMPANY STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED Six Months Ended --------------------------- June 30, June 30, 2001 2000 ----------- ---------- OPERATING REVENUES $982,736 $942,895 ------- ------- OPERATING EXPENSES 780,614 747,347 Interest portion of rentals (A) 1,928 4,519 ------- ------- Net expense 778,686 742,828 ------- ------- OTHER INCOME AND DEDUCTIONS: Allowance for funds used during construction 375 1,332 Other income, net 17,707 12,731 ------- ------- Total other income and deductions 18,082 14,063 ------- ------- EARNINGS AVAILABLE FOR FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (excluding taxes based on income) $222,132 $214,130 ======= ======= FIXED CHARGES: Interest on funded indebtedness $ 49,221 $ 45,822 Other interest (B) 6,530 5,710 Interest portion of rentals (A) 1,928 4,519 ------- ------- Total fixed charges $ 57,679 $ 56,051 ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 3.85 3.82 ==== ==== Preferred stock dividend requirement $ 2,782 $ 4,122 Ratio of income before provision for income taxes to net income (C) 168.8% 165.9% ------- ------- Preferred stock dividend requirement on a pretax basis 4,696 6,838 Fixed charges, as above 57,679 56,051 ------- ------- Total fixed charges and preferred stock dividends $ 62,375 $ 62,889 ======= ======= RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 3.56 3.40 ==== ==== Exhibit 12B Page 2 of 2 JERSEY CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARY COMPANY STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED ------------------------- NOTES: (A) JCP&L has included the equivalent of the interest portion of all rentals charged to income as fixed charges for this statement and has excluded such components from Operating Expenses. (B) Includes amount for company-obligated mandatorily redeemable preferred securities of $5,350 and $5,350 for the six month periods ended June 30, 2001 and 2000, respectively. (C) Represents income before provision for income taxes of $164,453 and $149,279 for the six month periods ended June 30, 2001 and 2000, respectively, divided by net income of $97,436 and $90,004, respectively for the same periods. Exhibit 12C Page 1 of 2 METROPOLITAN EDISON COMPANY AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED Six Months Ended --------------------------- June 30, June 30, 2001 2000 ----------- ---------- OPERATING REVENUES $443,556 $400,870 ------- ------- OPERATING EXPENSES 380,904 326,338 Interest portion of rentals (A) 534 513 ------- ------- Net expense 380,370 325,825 ------- ------- OTHER INCOME AND DEDUCTIONS: Allowance for funds used during construction 186 296 Other income, net 17,385 11,020 ------- ------- Total other income and deductions 17,571 11,316 ------- ------- EARNINGS AVAILABLE FOR FIXED CHARGES (excluding taxes based on income) $ 80,757 $ 86,361 ======= ======= FIXED CHARGES: Interest on funded indebtedness $ 22,451 $ 23,340 Other interest (B) 4,906 4,761 Interest portion of rentals (A) 534 513 ------- ------- Total fixed charges $ 27,891 $ 28,614 ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 2.90 3.02 ==== ==== Exhibit 12C Page 2 of 2 METROPOLITAN EDISON COMPANY AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED ------------------------- NOTES: (A) Met-Ed has included the equivalent of the interest portion of all rentals charged to income as fixed charges for this statement and has excluded such components from Operating Expenses. (B) Includes amount for company-obligated trust preferred securities of $3,675 and $3,675 for the six month periods ended June 30, 2001 and 2000, respectively. Exhibit 12D Page 1 of 2 PENNSYLVANIA ELECTRIC COMPANY AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED Six Months Ended --------------------------- June 30, June 30, 2001 2000 ----------- ----------- OPERATING REVENUES $474,427 $426,894 ------- ------- OPERATING EXPENSES 445,935 358,584 Interest portion of rentals (A) 216 1,463 ------- ------- Net expense 445,719 357,121 ------- ------- OTHER INCOME AND DEDUCTIONS: Allowance for funds used during construction 284 499 Other income, net 3,719 4,705 ------- -------- Total other income and deductions 4,003 5,204 ------- -------- EARNINGS AVAILABLE FOR FIXED CHARGES (excluding taxes based on income) $ 32,711 $ 74,977 ======= ======= FIXED CHARGES: Interest on funded indebtedness $ 19,661 $ 16,401 Other interest (B) 4,747 4,277 Interest portion of rentals (A) 216 1,463 ------- ------- Total fixed charges $ 24,624 $ 22,141 ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 1.33 3.39 ==== ==== Exhibit 12D Page 2 of 2 PENNSYLVANIA ELECTRIC COMPANY AND SUBSIDIARY COMPANIES STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON SEC REGULATION S-K, ITEM 503 (In Thousands) --------------------------------------------------------------------------- UNAUDITED ------------------------- NOTES: (A) Penelec has included the equivalent of the interest portion of all rentals charged to income as fixed charges for this statement and has excluded such components from Operating Expenses. (B) Includes amount for company-obligated trust preferred securities of $3,670 and $3,670 for the six month periods ended June 30, 2001 and 2000, respectively.