EX-12 2 a2042981zex-12.txt COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 KENTUCKY UTILITIES COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of $)
2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- Earnings: Net Income......................................... $ 95,524 $ 106,558 $ 72,764 $ 85,713 $ 86,163 Add: Federal income taxes - current..................... 45,276 51,754 45,704 38,500 39,221 State income taxes - current....................... 9,400 13,450 10,008 8,718 8,248 Deferred Federal income taxes - net................ (3,376) (4,650) (2,492) 2,971 1,845 Deferred State income taxes - net.................. 927 887 54 1,635 1,905 Deferred investment tax credit-net................. - - - - - Investment tax credit - net........................ (3,674) (3,727) (3,829) (4,036) (4,013) Undistributed income of Electric Energy, Inc............................ 70 33 1 (37) 24 Fixed charges...................................... 40,254 39,486 39,318 40,324 40,266 --------- --------- --------- --------- --------- Earnings......................................... 184,401 203,791 161,528 173,788 173,659 --------- --------- --------- --------- --------- Fixed Charges: Interest Charges per statements of income.......... 39,484 38,904 38,660 39,729 39,688 Add: One-third of rentals charged to operating expense (1).......................... 770 582 658 595 578 --------- --------- --------- --------- --------- Fixed charges................................ $ 40,254 $ 39,486 $ 39,318 $ 40,324 $ 40,266 --------- --------- --------- --------- --------- Ratio of Earnings to Fixed Charges.................... 4.58 5.16 4.11 4.31 4.31 ======== ======== ======== ======= =======
NOTE: (1) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor. EXHIBIT 12 LOUISVILLE GAS AND ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of $)
2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- Earnings: Net Income......................................... $ 110,573 $ 106,270 $ 78,120 $ 113,273 $ 107,941 Add: Federal income taxes - current..................... 30,425 54,198 39,618 59,074 34,019 State income taxes - current....................... 4,450 13,650 10,164 14,754 7,589 Deferred Federal income taxes - net................ 24,233 (4,564) 2,167 (4,171) 19,816 Deferred State income taxes - net.................. 6,787 (715) 636 778 6,648 Investment tax credit - net........................ (4,274) (4,289) (4,312) (4,342) (4,406) Fixed charges...................................... 44,707 39,323 37,571 40,928 42,198 ---------- --------- --------- --------- --------- Earnings......................................... 216,901 203,873 163,964 220,294 213,805 ---------- --------- --------- --------- --------- Fixed Charges: Interest Charges per statements of income.......... 43,218 37,962 36,322 39,190 40,242 Add: Interest income (1).............................. - - - - 409 One-third of rentals charged to operating expense (2).......................... 1,489 1,361 1,249 1,738 1,547 ---------- --------- --------- --------- --------- Fixed charges................................ $ 44,707 $ 39,323 $ 37,571 $ 40,928 $ 42,198 ---------- --------- --------- --------- --------- Ratio of Earnings to Fixed Charges.................... 4.85 5.18 4.36 5.38 5.07 ========== ========= ========= ========= =========
NOTE: (1) Interest income earned on pollution control revenue bond proceeds held and invested by trustees - netted against interest charges above. (2) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor.