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
                              
           
Sep. 30,
  
Years Ended December 31,
           
2012 
  
2011 
  
2010 
  
2009 
  
2008 
  
2007 
Earnings, as defined:
                                  
   
Income (Loss) from Continuing Operations Before
                                  
     
Income Taxes
$
 585 
  
$
 1,212 
  
$
 881 
  
$
 (13)
  
$
 671 
  
$
 785 
   
Adjustments to reflect earnings from equity method
                                  
     
investments on a cash basis
  
 
    
 1 
    
 7 
    
 1 
    
 
    
 2 
         
 585 
    
 1,213 
    
 888 
    
 (12)
    
 671 
    
 787 
                                             
   
Total fixed charges as below
  
 177 
    
 259 
    
 426 
    
 364 
    
 390 
    
 388 
       
Less:
                                  
       
Capitalized interest
  
 36 
    
 47 
    
 33 
    
 44 
    
 57 
    
 54 
       
Interest expense and fixed charges related to
                                  
         
discontinued operations
  
 
    
 3 
    
 147 
    
 102 
    
 157 
    
 217 
   
Total fixed charges included in Income (Loss) from
                                  
     
Continuing Operations Before Income Taxes
  
 141 
    
 209 
    
 246 
    
 218 
    
 176 
    
 117 
                                             
       
Total earnings
$
 726 
  
$
 1,422 
  
$
 1,134 
  
$
 206 
  
$
 847 
  
$
 904 
                                             
Fixed charges, as defined:
                                  
   
Interest charges (a)
$
 159 
  
$
 223 
  
$
 387 
  
$
 321 
  
$
 374 
  
$
 374 
   
Estimated interest component of operating rentals
  
 18 
    
 36 
    
 38 
    
 42 
    
 15 
    
 14 
   
Fixed charges of majority-owned share of 50% or
                                  
     
less-owned persons
  
 
    
 
    
 1 
    
 1 
    
 1 
    
 
                                             
       
Total fixed charges (b)
$
 177 
  
$
 259 
  
$
 426 
  
$
 364 
  
$
 390 
  
$
 388 
                                             
Ratio of earnings to fixed charges (c)
  
 4.1 
    
 5.5 
    
 2.7 
    
 0.6 
    
 2.2 
    
 2.3 
                                             

(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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