EX-12.(A) 2 a2204264zex-12_a.htm EX-12(A)

Exhibit 12(a)

 

Kentucky Utilities Company

Ratio of Earnings to Fixed Charges
For the Periods as Shown

($ millions)

 

 

 

 

 

2006

 

2007

 

2008

 

2009

 

January
1, 2010
through
October
31, 2010

 

November
1, 2010
through
December
31, 2010

 

March 31,
2011

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

 

 

$

226

 

$

244

 

$

226

 

$

200

 

$

218

 

$

55

 

$

90

 

Exclude amounts reflected in line above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed income of Electric Energy, Inc.

 

 

 

2

 

5

 

—

 

(11

)

4

 

—

 

1

 

Mark to market impact of derivative instruments(1)

 

 

 

—

 

—

 

1

 

(1

)

—

 

—

 

—

 

Add fixed charges (see below)

 

 

 

41

 

59

 

77

 

79

 

71

 

11

 

19

 

Total Earnings

 

(A)

 

$

265

 

$

298

 

$

302

 

$

291

 

$

285

 

$

66

 

$

108

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

$

39

 

$

57

 

$

74

 

$

76

 

$

69

 

$

10

 

$

18

 

Estimated interest component of rental expense(2)

 

 

 

2

 

2

 

3

 

3

 

2

 

1

 

1

 

Preferred stock dividends

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total Fixed Charges

 

(B)

 

$

41

 

$

59

 

$

77

 

$

79

 

$

71

 

$

11

 

$

19

 

Ratio of Earnings to Fixed Charges

 

(A) ÷ (B)

 

6.46

 

5.05

 

3.92

 

3.68

 

4.01

 

6.00

 

5.68

 

 

(1) Represents unrealized gains or losses on derivative instruments recorded in the statements of income.

(2) Represents one-third of rentals charged to operating expense.