EX-12 7 a06-2048_1ex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS

EXHIBIT 12

 

LOUISVILLE GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of $)

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

128.9

 

$

95.6

 

$

90.8

 

$

88.9

 

$

106.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Federal income taxes - current

 

$

73.2

 

$

33.9

 

$

25.8

 

$

24.6

 

$

41.1

 

State income taxes - current

 

$

10.1

 

$

13.0

 

$

10.0

 

$

7.7

 

$

8.2

 

Deferred Federal income taxes - net

 

$

(12.6

)

$

11.4

 

$

16.8

 

$

20.3

 

$

12.6

 

Deferred State income taxes - net

 

$

(1.7

)

$

(0.8

)

$

1.7

 

$

4.4

 

$

3.8

 

Investment tax credit - net

 

$

(4.1

)

$

(4.2

)

$

(4.2

)

$

(4.2

)

$

(4.3

)

Fixed charges

 

$

37.8

 

$

33.7

 

$

31.4

 

$

30.5

 

$

38.8

 

Earnings

 

$

231.6

 

$

182.6

 

$

172.3

 

$

172.2

 

$

207.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest Charges per statements of income

 

$

36.8

 

$

32.8

 

$

30.7

 

$

29.8

 

$

37.9

 

Add:

 

 

 

 

 

 

 

 

 

 

 

One-third of rentals charged to operating expense (1)

 

$

1.0

 

$

0.9

 

$

0.7

 

$

0.7

 

$

0.9

 

Fixed charges

 

$

37.8

 

$

33.7

 

$

31.4

 

$

30.5

 

$

38.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

6.13

 

5.42

 

5.49

 

5.65

 

5.34

 

 

NOTE:

 

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

 


 

KENTUCKY UTILITIES COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of $)

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

112.1

 

133.5

 

91.4

 

93.4

 

96.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Federal income taxes - current

 

56.8

 

39.3

 

29.1

 

37.8

 

57.4

 

State income taxes - current

 

10.6

 

17.7

 

11.4

 

10.3

 

13.2

 

Deferred Federal income taxes - net

 

(1.9

)

22.0

 

11.4

 

3.5

 

(12.1

)

Deferred State income taxes - net

 

0.2

 

(0.5

)

0.9

 

1.5

 

(1.1

)

Investment tax credit - net

 

(1.7

)

(2.1

)

(2.7

)

(2.9

)

(3.5

)

Undistributed income of Electric Energy, Inc

 

(2.3

)

(2.6

)

(3.7

)

(7.0

)

0.3

 

Fixed charges

 

32.1

 

26.4

 

25.9

 

26.7

 

35.2

 

Earnings

 

205.9

 

233.7

 

163.7

 

163.3

 

185.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest Charges per statements of income

 

31.0

 

25.5

 

25.2

 

25.7

 

34.0

 

Add:

 

 

 

 

 

 

 

 

 

 

 

One-third of rentals charged to operating expense (1)

 

1.1

 

0.9

 

0.7

 

1.0

 

1.2

 

Fixed charges

 

32.1

 

26.4

 

25.9

 

26.7

 

35.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

6.41

 

8.85

 

6.32

 

6.12

 

5.28

 

 

NOTE:

 

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