EX-12.B 4 dex12b.txt RATIO OF EARNINGS TO FIXED CHARGES - PREFERRED DIV Exhibit 12-B Atlantic City Electric Company Ratio of Earnings to Fixed Charges and Preferred Dividends ---------------------------------------------------------- (Dollars in Thousands)
12 Months Ended Year Ended December 31, June 30, ------------------------------------------------------------ 2001 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- -------- Income before extraordinary item $ 71,377 $ 54,434 $ 63,930 $ 30,276 $ 85,747 $ 75,017 -------- -------- -------- -------- -------- -------- Income taxes 56,517 36,746 49,326 18,178 50,442 36,958 -------- -------- -------- -------- -------- -------- Fixed charges: Interest on long-term debt including amortization of discount, premium and expense 69,611 76,178 60,562 63,940 64,501 64,847 Other interest 4,149 4,518 3,837 3,435 3,574 4,019 Preferred dividend require- ments of subsidiary trusts 7,619 7,619 7,634 6,052 5,775 1,428 -------- -------- -------- -------- -------- -------- Total Fixed charges 81,379 88,315 72,033 73,427 73,850 70,294 -------- -------- -------- -------- -------- -------- Earnings before extraordinary item, income taxes and fixed charges $209,273 $179,495 $185,289 $121,881 $210,039 $182,269 ======== ======== ======== ======== ======== ======== Fixed charges $ 81,379 $ 88,315 $ 72,033 $ 73,427 $ 73,850 $ 70,294 Preferred dividend requirements 3,820 3,571 3,777 5,289 7,506 14,214 -------- -------- -------- -------- -------- -------- $ 85,199 $ 91,886 $ 75,810 $ 78,716 $ 81,356 $ 84,508 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges and preferred dividends 2.46 1.95 2.44 1.55 2.58 2.16
For purposes of computing the ratio, earnings are income before extraordinary item plus income taxes and fixed charges. Fixed charges consist of interest on long- and short-term debt, amortization of debt discount, premium, and expense, dividends on preferred securities of subsidiary trusts, and the estimated interest component of rentals. Preferred dividend requirements represent annualized preferred dividend requirements multiplied by the ratio that pre-tax income bears to net income.