EX-12.(A) 10 a11-10315_1ex12da.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

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

 

 

 

$

179

 

 

 

$

179

 

 

 

$

131

 

 

 

$

142

 

 

 

$

167

 

 

 

$

29

 

 

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

 

 

Total Earnings

 

(A)

 

 

$

226

 

 

 

$

232

 

 

 

$

226

 

 

 

$

168

 

 

 

$

187

 

 

 

$

38

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

$

41

 

 

 

$

50

 

 

 

$

58

 

 

 

$

44

 

 

 

$

38

 

 

 

$

8

 

 

Estimated interest component of rental expense(2)

 

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

—

 

 

Preferred stock dividends

 

 

 

 

4

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total Fixed Charges

 

(B)

 

 

$

47

 

 

 

$

53

 

 

 

$

60

 

 

 

$

46

 

 

 

$

40

 

 

 

$

8

 

 

Ratio of Earnings to Fixed Charges

 

(A) ÷ (B)

 

 

4.81

 

 

 

4.38

 

 

 

3.77

 

 

 

3.65

 

 

 

4.68

 

 

 

4.75

 

 

 

(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.