EXHIBIT 12

LOUISVILLE GAS AND ELECTRIC COMPANY AND SUBSIDIARY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of $)

	2003			2002			2001			2000			1999
Earnings:
Net Income	$	90,839		$	88,929		$	106,781		$	110,573		$	106,270
Add:
Federal income taxes - current	25,768			24,564			41,127			30,425			54,198
State income taxes - current	10,003			7,653			8,185			4,450			13,650
Deferred Federal income taxes - net	16,793			20,258			12,595			24,233			(4,564		)
Deferred State income taxes - net	1,716			4,357			3,840			6,787			(715		)
Investment tax credit - net	(4,207		)	(4,153		)	(4,290		)	(4,274		)	(4,289		)
Fixed charges	31,378			30,551			38,755			46,438			40,026
Earnings	172,290			172,159			206,993			218,632			204,576
Fixed Charges:
Interest Charges per statements of income	30,647			29,805			37,922			43,218			37,962
Add:
One-third of rentals charged to operating expense (1)	731			746			833			3,220			2,064
Fixed charges	$	31,378		$	30,551		$	38,755		$	46,438		$	40,026
Ratio of Earnings to Fixed Charges	5.49			5.64			5.34			4.71			5.11

NOTE:

(1)In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.

KENTUCKY UTILITIES COMPANY AND SUBSIDIARY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of $)

	2003			2002			2001			2000			1999
Earnings:
Net Income	$	91,402		$	93,384		$	96,278		$	95,524		$	106,558
Add:
Federal income taxes - current	29,118			37,839			57,389			45,276			51,997
State income taxes - current	11,322			10,509			13,197			9,400			13,513
Deferred Federal income taxes - net	11,378			3,272			(12,117		)	(3,376		)	(4,651		)
Deferred State income taxes - net	904			1,459			(1,118		)	927			887
Investment tax credit - net	(2,641		)	(2,955		)	(3,446		)	(3,674		)	(3,727		)
Undistributed income of Electric Energy, Inc.	(3,644		)	(5,382		)	258			70			33
Fixed charges	25,980			26,756			35,215			40,834			40,101
Earnings	163,819			164,882			185,656			184,981			204,711
Fixed Charges:
Interest Charges per statements of income	25,249			25,727			34,043			39,484			38,904
Add:
One-third of rentals charged to operating expense (1)	731			1,029			1,172			1,350			1,197
Fixed charges	$	25,980		$	26,756		$	35,215		$	40,834		$	40,101
Ratio of Earnings to Fixed Charges	6.31			6.16			5.27			4.53			5.10

NOTE:

(1)In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.