EX-12 10 a2105668zex-12.htm EXHIBIT 12
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Exhibit 12

The AES Corporation and Subsidiaries

Statement Re: Calculation of Ratio of Earnings to Fixed Charges
(in millions, unaudited)

		1998			1999			2000			2001			2002
Actual:
Computation of Earnings:
Income from continuing operations before income taxes		$	767		$	614		$	1,294		$	755		$	(2,651	)
Adjustment for undistributed equity earnings, net of distributions			(107	)		72			(375	)		(155	)		247
Depreciation of previously capitalized interest			6			6			8			10			12
Fixed charges			628			844			1,499			1,881			2,393
Less:
	Capitalized interest		(79	)		(104	)		(183	)		(247	)		(302	)
	Preference security dividend of consolidated subsidiary		(2	)		(2	)		(2	)		(2	)		(2	)
	Minority interest in pre-tax income of subsidiary that has not incurred fixed charges		—			(2	)		(31	)		—			—

Earnings		$	1,213		$	1,428		$	2,210		$	2,242		$	(303	)

Computation of Fixed Charges:
Interest expensed and amortization of issuance costs		$	547		$	700		$	1,260		$	1,572		$	2,029
Capitalized interest			79			104			183			247			302
Preference security dividend of consolidated subsidiary			2			2			2			2			2
Interest expense included in rental expense			—			38			54			60			60

Fixed Charges		$	628		$	844		$	1,499		$	1,881		$	2,393

Ratio of earnings to fixed charges			1.93	x		1.69	x		1.47	x		1.19	x		—	(A)

(A): For the year ended December 31, 2002, there is a deficiency in earnings to cover fixed charges of $2,696.