EX-12 3 a07-5042_1ex12.htm EX-12

Exhibit 12

Louisville Gas and Electric Company

Computation of Ratio of Earnings to Fixed Charges

(Millions of $)

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

117

 

$

129

 

$

96

 

$

91

 

$

89

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Federal income taxes — current

 

60

 

73

 

34

 

26

 

25

 

State income taxes — current

 

11

 

10

 

13

 

10

 

8

 

Deferred Federal income taxes — net

 

(7

)

(12

)

11

 

17

 

20

 

Deferred State income taxes — net

 

(1

)

(2

)

(1

)

1

 

4

 

Investment tax credit — net

 

(1

)

(4

)

(4

)

(4

)

(4

)

Fixed charges

 

43

 

38

 

34

 

31

 

30

 

Earnings

 

$

222

 

$

232

 

$

183

 

$

172

 

$

172

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest charges per statements of income

 

$

41

 

$

37

 

$

33

 

$

31

 

$

30

 

Add:

 

 

 

 

 

 

 

 

 

 

 

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

 

2

 

1

 

1

 

—

 

—

 

Fixed charges

 

$

43

 

$

38

 

$

34

 

$

31

 

$

30

 

Ratio of Earnings to Fixed Charges

 

5.16

 

6.11

 

5.38

 

5.55

 

5.73

 

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

1