EX-12.1 6 exc-20181016ex121.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1

Atlantic City Electric Company and Subsidiary Company
Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
Six Months Ended
 
 
Years Ended December 31,
 
June 30,
(In millions, except ratios)
 
2013
 
2014
 
2015
 
2016
 
2017
 
2018
Pre-tax income from continuing operations
 
78

 
76

 
73

 
(46
)
 
103

 
18

Less: Capitalized interest
 
—

 
—

 
—

 
(3
)
 
(3
)
 
(2
)
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest
 
78

 
76

 
73

 
(49
)
 
100

 
16

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness
 
68

 
64

 
65

 
64

 
63

 
34

Interest component of rental expense(a)
 
4

 
4

 
4

 
4

 
5

 
1

Total fixed charges
 
72

 
68

 
69

 
68

 
68

 
35

Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest plus fixed charges
 
150

 
144

 
142

 
19

 
168

 
51

Ratio of earnings to fixed charges
 
2.1

 
2.1

 
2.1

 
0.3

(b) 
2.5

 
1.5

__________
(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 $49 million to achieve a coverage ratio of 1:1.