EX-12.(A) 2 a2204265zex-12_a.htm EX-12.(A)

Exhibit 12(a)

 

Louisville Gas and Electric 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

 

 

 

$

179

 

$

179

 

$

131

 

$

142

 

$

167

 

$

29

 

$

61

 

Exclude amounts reflected in line above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark to market impact of derivative instruments(1)

 

 

 

—

 

—

 

(35

)

20

 

20

 

(1

)

—

 

Add fixed charges (see below)

 

 

 

47

 

53

 

60

 

46

 

40

 

8

 

12

 

Total Earnings

 

(A)

 

$

226

 

$

232

 

$

226

 

$

168

 

$

187

 

$

38

 

$

73

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

$

41

 

$

50

 

$

58

 

$

44

 

$

38

 

$

8

 

$

11

 

Estimated interest component of rental expense(2)

 

 

 

2

 

2

 

2

 

2

 

2

 

—

 

1

 

Preferred stock dividends

 

 

 

4

 

1

 

—

 

—

 

—

 

—

 

—

 

Total Fixed Charges

 

(B)

 

$

47

 

$

53

 

$

60

 

$

46

 

$

40

 

$

8

 

$

12

 

Ratio of Earnings to Fixed Charges

 

(A) ÷ (B)

 

4.81

 

4.38

 

3.77

 

3.65

 

4.68

 

4.75

 

6.08

 

 

(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.