EX-12.B 3 form8kexhibit12_b.htm EXHIBIT 12(B) form8kexhibit12_b.htm

PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
   
2008 (a)
  
2007 (a)
  
2006 (a)
  
2005 (a)
  
2004 (a)
Earnings, as defined:
                                        
Income from Continuing Operations Before Income Taxes (b)
  
$
1,085
    
$
1,095
    
$
841
    
$
619
    
$
825
  
Less earnings of equity method investments
    
1
      
3
      
5
      
5
      
4
  
Distributed income from equity method investments
    
1
      
5
      
3
      
5
      
4
  
     
1,085
      
1,097
      
839
      
619
      
825
  
                                         
Total fixed charges as below
    
390
      
388
      
326
      
307
      
289
  
Less:
                                        
Capitalized interest
    
57
      
54
      
21
      
7
      
5
  
Interest expense related to discontinued operations
    
4
      
29
      
30
      
31
      
24
  
Total fixed charges included in Income from Continuing Operations Before Income Taxes
    
329
      
305
      
275
      
269
      
260
  
                                         
Total earnings
  
$
1,414
    
$
1,402
    
$
1,114
    
$
888
    
$
1,085
  
                                         
Fixed charges, as defined:
                                        
Interest on long-term debt
  
$
345
    
$
353
    
$
296
    
$
259
    
$
255
  
Interest on short-term debt and other interest
    
27
      
24
      
16
      
26
      
23
  
Amortization of debt discount, expense and premium - net
    
2
      
(3
)
    
(1
)
    
7
      
(6
)
Estimated interest component of operating rentals
    
15
      
14
      
15
      
15
      
17
  
Fixed charges of majority-owned share of 50% or less-owned persons
    
1
                                  
                                         
Total fixed charges (c)
  
$
390
    
$
388
    
$
326
    
$
307
    
$
289
  
                                         
Ratio of earnings to fixed charges
    
3.6
      
3.6
      
3.4
      
2.9
      
3.8
  

(a)
  
Certain line items have been revised due to the anticipated sales of the Long Island generation business and the majority of the Maine hydroelectric generation business and the related reclassification of operating results to Discontinued Operations.  See Note 10 to the Financial Statements for additional information.
(b)
  
Revised to reflect the retrospective application of SFAS 160.  See Note 1 to the Financial Statements for additional information.
(c)
  
Interest on unrecognized tax benefits is not included in fixed charges.