EX-12.6 8 exc-20171231x10kxexh126.htm PEPCO HOLDINGS LLC COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit
Exhibit 12.6


Pepco Holdings LLC and Subsidiary Companies
 
Ratio of Earnings to Fixed Charges
 
 
 
Predecessor
 
Successor
 
 
 
Years Ended December 31,
 
 
 
 
 
Year Ended December 31,
 
(In millions, except ratios)
 
2013
 
2014
 
2015
 
January 1, 2016 to March 23, 2016
 
March 24, 2016 to December 31, 2016
 
2017
 
Pre-tax income from continuing operations
 
304

 
380

 
481

 
36

 
(58
)
 
578

 
Plus: (Income) loss from equity investees
 
(2
)
 
—

 
—

 
—

 
—

 
—

 
Less: Capitalized interest
 
(2
)
 
(3
)
 
(2
)
 
(3
)
 
(12
)
 
(18
)
 
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest
 
300

 
377

 
479

 
33

 
(70
)
 
560

 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness
 
279

 
276

 
288

 
69

 
210

 
261

 
Interest component of rental expense(a)
 
22

 
24

 
24

 
4

 
16

 
21

 
Total fixed charges
 
301

 
300

 
312

 
73

 
226

 
282

 
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest plus fixed charges
 
601

 
677

 
791

 
106

 
156

 
842

 
Ratio of earnings to fixed charges
 
2.0

 
2.3

 
2.5

 
1.5

 
0.7

(b) 
3.0

 
__________
(a)
Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor.
(b)
The ratio coverage was less than 1:1. The registrant must generate additional earnings of $70 million to achieve a coverage ratio of 1:1.