EX-12 5 ppl10q3-02_exhibit12c.htm ELECTRIC UTILITIES Exhibit 12(c)

Exhibit 12(c)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
12 Months
Ended
March 31,

12 Months
Ended
December 31, (c)

2002 (b)
2001 (b)
2000 (b)
1999
1998
1997

 
 
 
 
 
Fixed charges, as defined:
Interest on long-term debt $
214
$
220
$
223
$
205
$
188
$
195
Interest on short-term debt
  and other interest
4
4
16
12
14
17
Amortization of debt discount,
  expense and premium - net
6
6
4
3
2
2
Interest on capital lease
  obligations
Charged to expense
4
9
8
9
Capitalized
1
2
2
Estimated interest component of
  operating rentals
7
8
14
19
18
15
Preferred stock dividends of
  subsidiaries on a pre-tax basis
23
23
23
23
23
14

 
 
 
 
 
Total fixed charges $
254
$
261
$
284
$
272
$
255
$
254

 
 
 
 
 
Earnings, as defined:
Net income (a) $
100
$
114
$
250
$
444
$
361
$
308
Preferred security dividend   requirements
25
26
26
37
48
40

 
 
 
 
 
$
125
$
140
$
276
$
481
$
409
$
348
Add:
Income taxes
55
65
171
151
273
248
Amortization of capitalized
  interest on capital leases
2
2
2
2
Total fixed charges as above
  (excluding capitalized interest
  on capital lease obligations and
  preferred stock dividends of
  subsidiaries on a pre-tax basis)
232
238
261
248
230
238

 
 
 
 
 
Total earnings $
412
$
443
$
710
$
882
$
914
$
836

 
 
 
 
 
Ratio of earnings to fixed charges
1.6
1.7
2.5
3.2
3.6
3.3

 
 
 
 
 
(a)   Net income excludes extraordinary items and the cumulative effect of a change in
  accounting principle.
(b)   Due to the corporate realignment on July 1, 2000, data subsequent to 2000 is not comparable
  to prior years. See Note 12 in PPL Electric's Form 10-K for the year ended
  December 31, 2001 for additional information.
(c)   Ratio of earnings to fixed charges for years 2001 and prior were recalculated to give proper
  effect of preferred security dividends of subsidiaries on a pre-tax basis.