EXHIBIT 12

KENTUCKY UTILITIES COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of $)

		2004			2003			2002			2001			2000
Earnings:
Net Income		$	133,471		$	91,402		$	93,384		$	96,278		$	95,524
Add:
Federal income taxes - current		39,291			29,118			37,839			57,389			45,276
State income taxes - current		17,698			11,322			10,299			13,197			9,400
Deferred Federal income taxes - net		21,988			11,378			3,482			(12,117		)	(3,376		)
Deferred State income taxes - net		(503		)	904			1,459			(1,118		)	927
Investment tax credit - net		(2,054		)	(2,641		)	(2,955		)	(3,446		)	(3,674		)
Undistributed income of Electric Energy, Inc.		2,559			(3,644		)	(6,967		)	258			70
Fixed charges		26,425			25,980			26,717			35,215			40,834
Earnings		238,875			163,819			163,258			185,656			184,981
Fixed Charges:
Interest Charges per statements of income		25,501			25,249			25,688			34,043			39,484
Add:
One-third of rentals charged to operating expense (1)		924			731			1,029			1,172			1,350
Fixed charges		$	26,425		$	25,980		$	26,717		$	35,215		$	40,834
Ratio of Earnings to Fixed Charges		9.04			6.31			6.11			5.27			4.53
NOTE:
(1)	In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.
	Rents	2,773			2,193			3,087			3,517			4,051
		924			731			1,029			1,172			1,350

LOUISVILLE GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of $)

		2004			2003			2002			2001			2000
Earnings:
Net Income		$	95,618		$	90,839		$	88,929		$	106,781		$	110,573
Add:
Federal income taxes - current		33,850			25,768			24,564			41,127			30,425
State income taxes - current		13,008			10,003			7,653			8,185			4,450
Deferred Federal income taxes - net		11,384			16,793			20,258			12,595			24,233
Deferred State income taxes - net		(795		)	1,716			4,357			3,840			6,787
Investment tax credit - net		(4,153		)	(4,207		)	(4,153		)	(4,290		)	(4,274		)
Fixed charges		33,732			31,378			30,551			38,755			46,438
Earnings		182,644			172,290			172,159			206,993			218,632
Fixed Charges:
Interest Charges per statements of income		32,787			30,647			29,805			37,922			43,218
Add:
One-third of rentals charged to operating expense (1)		945			731			746			833			3,220
Fixed charges		$	33,732		$	31,378		$	30,551		$	38,755		$	46,438
Ratio of Earnings to Fixed Charges		5.41			5.49			5.64			5.34			4.71
NOTE:
(1)	In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.
	Rents	2,834			2,192			2,237			2,500			9,660
		945			731			746			833			3,220