EXHIBIT 12

LOUISVILLE GAS AND ELECTRIC COMPANY AND SUBSIDIARY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of $)

	2002			2001			2000			1999			1998
Earnings:
Net Income	$	88,929		$	106,781		$	110,573		$	106,270		$	78,120
Add:
Federal income taxes - current	24,564			41,127			30,425			54,198			39,618
State income taxes - current	7,653			8,185			4,450			13,650			10,164
Deferred Federal income taxes - net	20,258			12,595			24,233			(4,564		)	2,167
Deferred State income taxes - net	4,357			3,840			6,787			(715		)	636
Investment tax credit - net	(4,153		)	(4,290		)	(4,274		)	(4,289		)	(4,312		)
Fixed charges	30,128			38,234			44,707			39,323			37,571
Earnings	171,736			208,472			216,901			203,873			163,964
Fixed Charges:
Interest Charges per statements of income	29,805			37,922			43,218			37,962			36,322
Add:
One-third of rentals charged to operating expense (1)	323			312			1,489			1,361			1,249
Fixed charges	$	30,128		$	38,234		$	44,707		$	39,323		$	37,571
Ratio of Earnings to Fixed Charges	5.70			5.40			4.85			5.18			4.36

NOTE:

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

1

EXHIBIT 12

KENTUCKY UTILITIES COMPANY AND SUBSIDIARY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of $)

	2002		2001		2000		1999		1998
Earnings:
Net Income before cumulative effect of a change in accounting principle per statements of income	$93,384		$96,278		$95,524		$106,558		$72,764
Add:
Federal income taxes - current	37,839		57,389		45,276		51,997		45,704
State income taxes - current	10,509		13,197		9,400		13,513		10,008
Deferred Federal income taxes - net	3,272		(12,117	)	(3,376	)	(4,651	)	(2,492	)
Deferred State income taxes - net	1,459		(1,118	)	927		887		54
Investment tax credit - net	(2,955	)	(3,446	)	(3,674	)	(3,727	)	(3,829	)
Undistributed income of Electric Energy, Inc.
	(5,382	)	258		70		33		1
Fixed charges	25,823		34,202		40,254		39,486		39,318
Earnings	163,949		184,643		184,401		204,096		161,528
Fixed Charges:
Interest Charges	25,727		34,043		39,484		38,904		38,660
Add:
One-third of rentals charged to operating expense (1)	96		159		770		582		658
Fixed charges	$25,823		$34,202		$40,254		$39,486		$39,318
Ratio of Earnings to Fixed Charges	6.35		5.40		4.58		5.17		4.11

NOTE:

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

2