EX-12.B 6 form10q-exhibit12b.htm EXHIBIT 12(B) form10q-exhibit12b.htm
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
 
 
 
 
 
 
9 Months
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sept 30,
 
Years Ended December 31,
 
 
 
 
 
 
2013 
 
2012 
 
2011 
 
2010 
 
2009 
 
2008 
Earnings, as defined:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations Before
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes
$
 279 
 
$
 738 
 
$
 1,212 
 
$
 881 
 
$
 (13)
 
$
 671 
 
 
Adjustments to reflect earnings from equity method
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
investments on a cash basis
 
   
 
 
   
 
 
 1 
 
 
 7 
 
 
 1 
 
 
   
 
 
 
 
 
 279 
 
 
 738 
 
 
 1,213 
 
 
 888 
 
 
 (12)
 
 
 671 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
 
 172 
 
 
 238 
 
 
 259 
 
 
 426 
 
 
 364 
 
 
 390 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
 28 
 
 
 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
 
 144 
 
 
 191 
 
 
 209 
 
 
 246 
 
 
 218 
 
 
 176 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
$
 423 
 
$
 929 
 
$
 1,422 
 
$
 1,134 
 
$
 206 
 
$
 847 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest charges (a)
$
 159 
 
$
 214 
 
$
 223 
 
$
 387 
 
$
 321 
 
$
 374 
 
 
Estimated interest component of operating rentals
 
 13 
 
 
 24 
 
 
 36 
 
 
 38 
 
 
 42 
 
 
 15 
 
 
Fixed charges of majority-owned share of 50% or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
less-owned persons
 
   
 
 
   
 
 
   
 
 
 1 
 
 
 1 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (b)
$
 172 
 
$
 238 
 
$
 259 
 
$
 426 
 
$
 364 
 
$
 390 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (c)
 
 2.5 
 
 
 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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