EX-12.B 4 0004.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12(b) PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars)
12 Months Ended 12 Months Ended September 30, December 31, ------------- --------------------------------------------------- 2000 1999 (c) 1998 (c) 1997 (c) 1996 (c) ------------- --------- --------- --------- --------- Fixed charges, as defined: Interest on long-term debt............................. $ 229 $ 205 $ 188 $ 195 $ 207 Interest on short-term debt and other interest......... 16 12 14 17 11 Amortization of debt discount, expense and premium - net................................................ 4 3 2 2 2 Interest on capital lease obligations Charged to expense.................................. 6 9 8 9 13 Capitalized......................................... 1 2 2 2 Estimated interest component of operating rentals...... 17 19 18 15 8 ------------- --------- --------- --------- --------- Total fixed charges.......................... $ 272 $ 249 $ 232 $ 240 $ 243 ============= ========= ========= ========= ========= Earnings, as defined: Net income (a)......................................... $ 366 $ 444 $ 409 $ 348 $ 357 Less undistributed income of equity method investment.. ------------- --------- --------- --------- --------- 366 444 409 348 357 Add (Deduct): Income taxes........................................... 218 151 273 248 251 Amortization of capitalized interest on capital leases............................................... 2 2 2 2 4 Total fixed charges as above (excluding capitalized interest on capital lease obligations)............... 272 248 230 238 241 ------------- --------- --------- --------- --------- Total earnings............................... $ 858 $ 845 $ 914 $ 836 $ 853 ============= ========= ========= ========= ========= Ratio of earnings to fixed charges (b) (c)................ 3.15 3.39 3.94 3.48 3.51 ============= ========= ========= ========= =========
(a) 2000, 1999 and 1998 net income excluding extraordinary items. (b) Based on earnings excluding one-time adjustments, the ratio of earnings to fixed charges are: September 2000, 2.79; 1999, 3.10; and 1998, 3.53 (c) Ratio of earnings to fixed charges for years 1999 and prior were recalculated to give proper effect of undistributed earnings of equity method investments.