Exhibit 12(b)
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PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES
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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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(Millions of Dollars)
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6 Months
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Ended
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June 30,
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Years Ended December 31,
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2013
|
2012
|
2011
|
2010
|
2009
|
2008
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Earnings, as defined:
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Income (Loss) from Continuing Operations Before
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Income Taxes
|
$
|
80
|
$
|
738
|
$
|
1,212
|
$
|
881
|
$
|
(13)
|
$
|
671
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||||||||||
Adjustments to reflect earnings from equity method
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investments on a cash basis
|
|
|
1
|
7
|
1
|
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80
|
738
|
1,213
|
888
|
(12)
|
671
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Total fixed charges as below
|
120
|
238
|
259
|
426
|
364
|
390
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Less:
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Capitalized interest
|
19
|
47
|
47
|
33
|
44
|
57
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||||||||||||||||
Interest expense and fixed charges related to
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discontinued operations
|
|
|
3
|
147
|
102
|
157
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Total fixed charges included in Income (Loss) from
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Continuing Operations Before Income Taxes
|
101
|
191
|
209
|
246
|
218
|
176
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||||||||||||||||
Total earnings
|
$
|
181
|
$
|
929
|
$
|
1,422
|
$
|
1,134
|
$
|
206
|
$
|
847
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Fixed charges, as defined:
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Interest charges (a)
|
$
|
111
|
$
|
214
|
$
|
223
|
$
|
387
|
$
|
321
|
$
|
374
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Estimated interest component of operating rentals
|
9
|
24
|
36
|
38
|
42
|
15
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Fixed charges of majority-owned share of 50% or
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less-owned persons
|
|
|
|
1
|
1
|
1
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||||||||||||||||
Total fixed charges (b)
|
$
|
120
|
$
|
238
|
$
|
259
|
$
|
426
|
$
|
364
|
$
|
390
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Ratio of earnings to fixed charges (c)
|
1.5
|
3.9
|
5.5
|
2.7
|
0.6
|
2.2
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(a)
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Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
|
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(b)
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Interest on unrecognized tax benefits is not included in fixed charges.
|
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(c)
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In January 2011, PPL Energy Supply distributed its 100% membership interest in PPL Global to PPL Energy Supply's parent, PPL Energy Funding. As a result, PPL Global's operating results were reclassified as Discontinued Operations. Upon reflecting this reclassification, earnings were less than fixed charges for 2009. See Note 9 in PPL Energy Supply's 2011 Form 10-K for additional information. The total amount of fixed charges for this period was approximately $364 million and the total amount of earnings was approximately $206 million. The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $158 million.
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