EX-12.A 25 ppl10-k2006exhibit12a.htm EXHIBIT 12(A) Exhibit 12(a)
Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
                     
   
2006
  
     2005 (c)
  
     2004 (c)
  
     2003 (c)
  
    2002 (c)
                               
Fixed charges, as defined:
                                        
Interest on long-term debt
  
$
482
    
$
465
    
$
491
    
$
417
    
$
486
  
Interest on short-term debt and
  other interest
    
13
      
29
      
20
      
25
      
70
  
Amortization of debt discount,
  expense and premium - net
    
11
      
23
      
8
      
41
      
25
  
Estimated interest component of
  operating rentals
    
29
      
32
      
34
      
45
      
38
  
Preferred security distributions of   subsidiaries on a pre-tax basis
    
24
      
5
      
5
      
45
      
79
  
                                         
Total fixed charges
  
$
559
    
$
554
    
$
558
    
$
573
    
$
698
  
                                         
Earnings, as defined:
                                        
Net income (a)
  
$
896
    
$
746
    
$
718
    
$
738
      
439
  
Preferred security dividend requirements
    
14
      
2
      
2
      
29
      
67
  
Less undistributed income (loss) of
  equity method investments
    
(3
)
    
(14
)
    
(14
)
    
(19
)
    
(23
)
     
913
      
762
      
734
      
786
      
529
  
                                         
Add:
                                        
Income taxes
    
275
      
122
      
201
      
178
      
211
  
Total fixed charges as above
  (excluding capitalized interest
  and preferred security distributions of
  subsidiaries on a pre-tax basis)
    
511
      
540
      
547
      
521
      
598
  
                                         
Total earnings
  
$
1,699
    
$
1,424
    
$
1,482
    
$
1,485
    
$
1,338
  
                                         
Ratio of earnings to fixed charges
    
3.0
      
2.6
      
2.7
      
2.6
      
1.9
  
                                         
Ratio of earnings to combined fixed
  charges and preferred stock
  dividends (b)
    
3.0
      
2.6
      
2.7
      
2.6
      
1.9
  

(a)
  
Net income excludes minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.
(c)
  
Certain line items have been revised due to the June 2006 sale of the 50% ownership interest in the Griffith plant and the related reclassification of prior period operating losses to "Loss from Discontinued Operations."