EX-12.4 36 ex12_4.htm EXHIBIT 12.4 - FIXED CHARGE RATIO - CEI ex12_4.htm
                               
EXHIBIT 12.4
  
                               
Page 1
  
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                                   
     
Year Ended December 31,
       
2003
    
2004
    
2005
    
2006
    
2007
  
     
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
$
         197,033
  
$
         236,531
  
$
         231,058
  
$
         306,051
  
$
         276,412
  
Interest and other charges, before reduction for amounts capitalized
                          
 
and deferred
  
         164,132
    
         138,678
    
         132,226
    
         141,710
    
         138,977
  
Provision for income taxes
  
         131,285
    
         138,856
    
         153,014
    
         188,662
    
         163,363
  
Interest element of rentals charged to income (a)
  
           49,761
    
           49,375
    
           47,643
    
           45,955
    
           29,829
  
                                   
 
Earnings as defined
$
         542,211
  
$
         563,440
  
$
         563,941
  
$
         682,378
  
$
         608,581
  
                                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                              
Interest before reduction for amounts capitalized and deferred
$
         159,632
  
$
         138,678
  
$
         132,226
  
$
         141,710
  
$
         138,977
  
Subsidiary's preferred stock dividend requirements
  
             4,500
    
                     -
    
                     -
    
                     -
    
                     -
  
Interest element of rentals charged to income (a)
  
           49,761
    
           49,375
    
           47,643
    
           45,955
    
           29,829
  
                                   
 
Fixed charges as defined
$
         213,893
  
$
         188,053
  
$
         179,869
  
$
         187,665
  
$
         168,806
  
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
2.53
    
3.00
    
3.14
    
3.64
    
3.61
  
                                   
                                   
                                   
                               
                                   
 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
                                   
                                   
                                   


 
 
 
 
 
                                 
EXHIBIT 12.4
  
                                 
Page 2
  
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
                                     
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
                                     
                                     
         
2003
    
2004
    
2005
    
2006
    
2007
  
          (Dollars in thousands)  
EARNINGS AS DEFINED IN REGULATION S-K:
                                
Income before extraordinary items
  
$
         197,033
  
$
         236,531
  
$
       231,058
  
$
       306,051
  
$
          276,412
  
Interest and other charges, before reduction for amounts capitalized
                          
 
and deferred
    
         164,132
    
         138,678
    
       132,226
    
       141,710
    
          138,977
  
Provision for income taxes
    
         131,285
    
         138,856
    
       153,014
    
       188,662
    
          163,363
  
Interest element of rentals charged to income (a)
    
           49,761
    
           49,375
    
         47,643
    
         45,955
    
            29,829
  
                                     
 
Earnings as defined
  
$
         542,211
  
$
         563,440
  
$
       563,941
  
$
       682,378
  
$
          608,581
  
                                     
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                            
 
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                
 
(PRE-INCOME TAX BASIS):
                                
Interest before reduction for amounts capitalized and deferred
$
         159,632
  
$
         138,678
  
$
       132,226
  
$
       141,710
  
$
          138,977
  
Preferred stock dividend requirements
    
           12,026
    
             7,008
    
           2,918
    
                  -
    
                     -
  
Adjustments to preferred stock dividends
                                
 
to state on a pre-income tax basis
    
             5,137
    
             4,113
    
           1,932
    
                  -
    
                     -
  
Interest element of rentals charged to income (a)
    
           49,761
    
           49,375
    
         47,643
    
         45,955
    
            29,829
  
                                     
Fixed charges as defined plus preferred stock
                                
 
dividend requirements (pre-income tax basis)
  
$
         226,556
  
$
         199,174
  
$
       184,719
  
$
       187,665
  
$
          168,806
  
                                     
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                          
 
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                            
 
(PRE-INCOME TAX BASIS)
    
2.39
    
2.83
    
3.05
    
3.64
    
3.61
  
                                     
                                 
                                     
 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.