EX-12.B 8 ppl10k2007exhibit12b.htm EXHIBIT 12(B) ppl10k2007exhibit12b.htm
Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
                     
   
2007
  
2006
  
2005
  
2004
  
2003
                               
Earnings, as defined:
                                        
Net income (a)
  
$
901
    
$
678
    
$
567
    
$
641
    
$
779
  
Preferred security dividend requirement
                                    
5
  
Less undistributed income (loss)
  of equity method investments
            
4
      
2
                  
Income taxes
    
217
      
187
      
81
      
210
      
183
  
Total fixed charges as below (excluding
  capitalized interest, preferred security
  distributions of subsidiaries on a
  pre-tax  basis and interest expense
  related to discontinued operations)
    
307
      
276
      
272
      
262
      
209
  
                                         
Total earnings
  
$
1,425
    
$
1,137
    
$
918
    
$
1,113
    
$
1,176
  
                                         
Fixed charges, as defined:
                                        
Interest on long-term debt
  
$
353
    
$
296
    
$
259
    
$
255
    
$
149
  
Interest on short-term debt and
  other interest
    
24
      
16
      
26
      
23
      
25
  
Amortization of debt discount,
  expense and premium - net
    
(3
)
    
(1
)
    
7
      
(6
)
    
31
  
Estimated interest component of
  operating rentals
    
14
      
15
      
15
      
17
      
31
  
Preferred securities distributions of
  subsidiaries on a pre-tax basis
                                    
8
  
                                         
Total fixed charges (b)
  
$
388
    
$
326
    
$
307
    
$
289
    
$
244
  
                                         
Ratio of earnings to fixed charges
    
3.7
      
3.5
      
3.0
      
3.9
      
4.8
  

(a)
  
Net income excludes minority interest, discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
Interest on unrecognized tax benefits is not included in fixed charges.