EX-12 27 pp_ex12-5.txt EX. 12-5 FIXED CHARGE RATIO - PENN
EXHIBIT 12.5 Page 1 PENNSYLVANIA POWER COMPANY 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......................... $39,748 $12,648 $22,847 $ 41,041 $ 47,717 Interest before reduction for amounts capitalized......... 21,073 21,317 20,437 18,172 16,674 Provision for income taxes................................ 32,504 18,834 26,121 39,921 43,044 Interest element of rentals charged to income (a)......... 1,920 1,887 2,791 1,316 326 ------- ------- ------- -------- -------- Earnings as defined..................................... $95,245 $54,686 $72,196 $100,450 $107,761 ======= ======= ======= ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K: Interest on long-term debt................................ $19,255 $19,268 $18,651 $ 16,971 $ 15,521 Interest on nuclear fuel obligations...................... 28 90 364 141 8 Other interest expense.................................... 1,789 1,959 1,422 1,060 1,145 Interest element of rentals charged to income (a)......... 1,920 1,887 2,791 1,316 326 ------- ------- ------- -------- -------- Fixed charges as defined................................ $22,992 $23,204 $23,228 $ 19,488 $ 17,000 ======= ======= ======= ======== ======== RATIO OF EARNINGS TO FIXED CHARGES (b)....................... 4.14 2.36 3.11 5.15 6.34 ==== ==== ==== ==== ==== ------------------------- (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 $483,000 for the year ended December 31, 1998. The guarantee and related coal supply contract debt expired December 31, 1999.
EXHIBIT 12.5 Page 2 PENNSYLVANIA POWER COMPANY 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......................... $39,748 $12,648 $22,847 $ 41,041 $ 47,717 Interest before reduction for amounts capitalized......... 21,073 21,317 20,437 18,172 16,674 Provision for income taxes................................ 32,504 18,834 26,121 39,921 43,044 Interest element of rentals charged to income (a)......... 1,920 1,887 2,791 1,316 326 ------- ------- -------- -------- -------- Earnings as defined..................................... $95,245 $54,686 $72,196 $100,450 $107,761 ======= ======= ======= ======== ======== FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS): Interest on long-term debt................................ $19,255 $19,268 $18,651 $ 16,971 $ 15,521 Interest on nuclear fuel obligations...................... 28 90 364 141 8 Other interest expense.................................... 1,789 1,959 1,422 1,060 1,145 Preferred stock dividend requirements..................... 4,626 4,370 3,704 3,703 3,699 Adjustment to preferred stock dividends to state on a pre-income tax basis 3,726 6,403 4,018 3,534 3,274 Interest element of rentals charged to income (a)......... 1,920 1,887 2,791 1,316 326 ------- ------- ------- -------- -------- Fixed charges as defined plus preferred stock dividend requirements (pre-income tax basis).......... $31,344 $33,977 $30,950 $ 26,725 $ 23,973 ======= ======= ======= ======== ======== RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS) (b).... 3.04 1.61 2.33 3.76 4.50 ==== ==== ==== ==== ==== ------------------------- (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 $483,000 for the year ended December 31, 1998. The guarantee and related coal supply contract debt expired December 31, 1999.