EX-12 14 oe_ex12-2.txt EX. 12-2 FIXED CHARGE RATIO - OE EXHIBIT 12.2 Page 1 OHIO EDISON COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, ------------------------------------------------------------- 1998 1999 2000 2001 2002 -------- -------- -------- -------- -------- (Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items............................ $301,320 $297,689 $336,456 $350,212 $363,483 Interest and other charges, before reduction for amounts capitalized........................................ 235,317 225,358 211,364 187,890 144,170 Provision for income taxes................................... 191,261 191,835 212,580 239,135 266,561 Interest element of rentals charged to income (a)............ 115,310 113,804 109,497 104,507 102,469 --------- --------- --------- --------- --------- Earnings as defined........................................ $843,208 $828,686 $869,897 $881,744 $876,683 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K: Interest on long-term debt................................... $184,915 $178,217 $165,409 $150,632 $119,123 Other interest expense....................................... 34,976 31,971 31,451 22,754 14,598 Subsidiaries' preferred stock dividend requirements.......... 15,426 15,170 14,504 14,504 10,449 Adjustments to subsidiaries' preferred stock dividends to state on a pre-income tax basis......................... 2,892 2,770 2,296 2,481 2,661 Interest element of rentals charged to income (a)............ 115,310 113,804 109,497 104,507 102,469 --------- --------- --------- --------- --------- Fixed charges as defined................................... $353,519 $341,932 $323,157 $294,878 $249,300 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (b).................................................. 2.39 2.42 2.69 2.99 3.52 ==== ==== ==== ==== ==== ------------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined. (b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier aggregating $3,828,000 for the year ended December 31, 1998. The guarantee and related coal supply contract debt expired December 31, 1999.
EXHIBIT 12.2 Page 2 OHIO EDISON COMPANY CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31, ------------------------------------------------------------- 1998 1999 2000 2001 2002 -------- -------- -------- -------- -------- (Dollars in Thousands) EARNINGS AS DEFINED IN REGULATION S-K: Income before extraordinary items.......................... $301,320 $297,689 $336,456 $350,212 $363,483 Interest and other charges, before reduction for amounts capitalized...................................... 235,317 225,358 211,364 187,890 144,170 Provision for income taxes................................. 191,261 191,835 212,580 239,135 266,561 Interest element of rentals charged to income (a).......... 115,310 113,804 109,497 104,507 102,469 -------- -------- -------- -------- -------- Earnings as defined...................................... $843,208 $828,686 $869,897 $881,744 $876,683 ======== ======== ======== ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS): Interest on long-term debt................................. $184,915 $178,217 $165,409 $150,632 $119,123 Other interest expense..................................... 34,976 31,971 31,451 22,754 14,598 Preferred stock dividend requirements...................... 27,395 26,717 25,628 25,206 16,959 Adjustments to preferred stock dividends to state on a pre-income tax basis....................... 10,140 9,859 8,976 9,412 7,034 Interest element of rentals charged to income (a).......... 115,310 113,804 109,497 104,507 102,469 -------- -------- -------- -------- -------- Fixed charges as defined plus preferred stock dividend requirements (pre-income tax basis)........... $372,736 $360,568 $340,961 $312,511 $260,183 ======== ======== ======== ======== ======== CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS) (b)................................. 2.26 2.30 2.55 2.82 3.37 ==== ==== ==== ==== ==== ------------------------- (a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined. (b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier aggregating $3,828,000 for the year ended December 31, 1998. The guarantee and related coal supply contract debt expired December 31, 1999.