EX-12.3 32 ex12_3.htm EXHIBIT 12.3 - FIXED CHARGE RATIO - OE ex12_3.htm
                               
EXHIBIT 12.3
 
                               
Page 1
 
OHIO EDISON 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
$
         292,925
 
$
         342,766
 
$
         330,398
 
$
         211,639
 
$
         197,166
 
Interest and other charges, before reduction for amounts capitalized
                         
 
and deferred
 
         116,868
   
           74,051
   
           77,077
   
           90,952
   
           83,343
 
Provision for income taxes
 
         241,173
   
         278,303
   
         309,995
   
         123,343
   
         101,273
 
Interest element of rentals charged to income (a)
 
         107,611
   
         104,239
   
         101,862
   
           89,354
   
           79,954
 
                                   
 
Earnings as defined
$
         758,577
 
$
         799,359
 
$
         819,332
 
$
         515,288
 
$
         461,736
 
                                   
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                             
Interest before reduction for amounts capitalized and deferred
$
         113,137
 
$
           71,491
 
$
           75,388
 
$
           90,356
 
$
           83,343
 
Subsidiaries’ preferred stock dividend requirements
 
             3,731
   
             2,560
   
             1,689
   
                597
   
                     -
 
Adjustments to subsidiaries’ preferred stock dividends
                             
 
to state on a pre-income tax basis
 
             3,014
   
             1,975
   
             1,351
   
                651
   
                     -
 
Interest element of rentals charged to income (a)
 
         107,611
   
         104,239
   
         101,862
   
           89,354
   
           79,954
 
                                   
 
Fixed charges as defined
$
         227,493
 
$
         180,265
 
$
         180,290
 
$
         180,958
 
$
         163,297
 
                                   
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
3.33
   
4.43
   
4.54
   
2.85
   
2.83
 
                                   
                                   
                                   
                               
                                   
 
(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 12.3
   
                               
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,
       
2003
   
2004
   
2005
   
2006
   
2007
   
     
(Dollars in thousands)
   
EARNINGS AS DEFINED IN REGULATION S-K:
                               
Income before extraordinary items
$
         292,925
 
$
         342,766
 
$
         330,398
 
$
         211,639
 
$
         197,166
   
Interest and other charges, before reduction for amounts capitalized
                           
 
and deferred
 
         116,868
   
           74,051
   
           77,077
   
           90,952
   
           83,343
   
Provision for income taxes
 
         241,173
   
         278,303
   
         309,995
   
         123,343
   
         101,273
   
Interest element of rentals charged to income (a)
 
         107,611
   
         104,239
   
         101,862
   
           89,354
   
           79,954
   
                                     
 
Earnings as defined
$
         758,577
 
$
         799,359
 
$
         819,332
 
$
         515,288
 
$
         461,736
   
                                     
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
$
         113,137
 
$
           71,491
 
$
           75,388
 
$
           90,356
 
$
           83,343
   
Preferred stock dividend requirements
 
             6,463
   
             5,062
   
             4,324
   
             5,149
   
                     -
   
Adjustments to preferred stock dividends
                               
 
to state on a pre-income tax basis
 
             5,264
   
             4,072
   
             3,758
   
             3,263
   
                     -
   
Interest element of rentals charged to income (a)
 
         107,611
   
         104,239
   
         101,862
   
           89,354
   
           79,954
   
                                     
Fixed charges as defined plus preferred stock
                               
 
dividend requirements (pre-income tax basis)
$
         232,475
 
$
         184,864
 
$
         185,332
 
$
         188,122
 
$
         163,297
   
                                     
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                           
 
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                           
 
(PRE-INCOME TAX BASIS)
 
3.26
   
4.32
   
4.42
   
2.74
   
2.83
   
                                     
                                     
                                 
                                     
 
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.