Exhibit 12(a)
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PPL CORPORATION AND SUBSIDIARIES
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COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
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PREFERRED STOCK DIVIDENDS
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(Millions of Dollars)
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2014 (a)
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2013 (a)
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2012 (a)
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2011 (a)
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2010 (a)
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Earnings, as defined:
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Income from Continuing Operations Before
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Income Taxes (b)
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$
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2,364
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$
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1,260
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$
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2,009
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$
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2,050
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$
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1,218
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Adjustment to reflect earnings from equity method
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investments on a cash basis (c)
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|
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34
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1
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7
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2,364
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1,260
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2,043
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2,051
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1,225
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Total fixed charges as below
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1,095
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1,096
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1,065
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1,022
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698
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Less:
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Capitalized interest
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33
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46
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43
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42
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24
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Preferred security distributions of subsidiaries
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on a pre-tax basis
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5
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23
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21
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Interest expense and fixed charges related to
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discontinued operations
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10
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14
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12
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6
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34
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Total fixed charges included in Income from
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Continuing Operations Before Income Taxes
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1,052
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1,036
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1,005
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951
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619
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Total earnings
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$
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3,416
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$
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2,296
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$
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3,048
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$
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3,002
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$
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1,844
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Fixed charges, as defined:
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Interest charges (d)
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$
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1,073
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$
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1,058
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$
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1,019
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$
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955
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$
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637
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Estimated interest component of operating rentals
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22
|
38
|
41
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44
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39
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Preferred securities distributions of subsidiaries
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on a pre-tax basis
|
|
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5
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23
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21
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Fixed charges of majority-owned share of 50% or
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less-owned persons
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1
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Total fixed charges (e)
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$
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1,095
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$
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1,096
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$
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1,065
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$
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1,022
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$
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698
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Ratio of earnings to fixed charges
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3.1
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2.1
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2.9
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2.9
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2.6
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Ratio of earnings to combined fixed charges and
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preferred stock dividends (f)
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3.1
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2.1
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2.9
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2.9
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2.6
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(a)
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Years 2010 through 2014 reflect the reclassification of certain PPL Montana hydroelectric generating facilities and related assets as Discontinued Operations. See Note 8 to the Financial Statements for additional information.
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(b)
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To facilitate the sale of the hydroelectric generating facilities referred to in (a) above, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge. See Note 8 to the Financial Statements for additional information.
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(c)
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Includes other-than-temporary impairment loss of $25 million in 2012.
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(d)
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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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(e)
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Interest on unrecognized tax benefits is not included in fixed charges.
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(f)
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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.
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