EX-12.B 15 exhibit12b.htm EXHIBIT 12(B) exhibit12b.htm
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
                   
             
2012 
  
2011 
  
2010 
  
2009 
  
2008 
Earnings, as defined:
                              
   
Income (Loss) from Continuing Operations Before
                              
     
Income Taxes
  
$
 738 
  
$
 1,212 
  
$
 881 
  
$
 (13)
  
$
 671 
   
Adjustments to reflect earnings from equity method
                              
     
investments on a cash basis
    
 
    
 1 
    
 7 
    
 1 
    
 
           
 738 
    
 1,213 
    
 888 
    
 (12)
    
 671 
                                         
   
Total fixed charges as below
    
 238 
    
 259 
    
 426 
    
 364 
    
 390 
       
Less:
                              
       
Capitalized interest
    
 47 
    
 47 
    
 33 
    
 44 
    
 57 
       
Interest expense and fixed charges related to
                              
         
discontinued operations
    
 
    
 3 
    
 147 
    
 102 
    
 157 
   
Total fixed charges included in Income (Loss) from
                              
     
Continuing Operations Before Income Taxes
    
 191 
    
 209 
    
 246 
    
 218 
    
 176 
                                         
       
Total earnings
  
$
 929 
  
$
 1,422 
  
$
 1,134 
  
$
 206 
  
$
 847 
                                         
Fixed charges, as defined:
                              
   
Interest charges (a)
  
$
 214 
  
$
 223 
  
$
 387 
  
$
 321 
  
$
 374 
   
Estimated interest component of operating rentals
    
 24 
    
 36 
    
 38 
    
 42 
    
 15 
   
Fixed charges of majority-owned share of 50% or
                              
     
less-owned persons
    
 
    
 
    
 1 
    
 1 
    
 1 
                                         
       
Total fixed charges (b)
  
$
 238 
  
$
 259 
  
$
 426 
  
$
 364 
  
$
 390 
                                         
Ratio of earnings to fixed charges (c)
    
 3.9 
    
 5.5 
    
 2.7 
    
 0.6 
    
 2.2 

(a)
  
Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
(b)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(c)
  
In January 2011, PPL Energy Supply distributed its 100% membership interest in PPL Global to PPL Energy Supply's parent, PPL Energy Funding.  As a result, PPL Global's operating results were reclassified as Discontinued Operations.  Upon reflecting this reclassification, earnings were less than fixed charges for 2009.  See Note 9 in PPL Energy Supply's 2011 Form 10-K for additional information.  The total amount of fixed charges for this period was approximately $364 million and the total amount of earnings was approximately $206 million.  The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $158 million.
 
 
 
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