EX-12.B 3 dex12b.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 12 Months Ended Ended March 31, December 31, ---------- ---------------------------------------------- 2001 (d) 2000 (d) 1999 (c) 1998 (c) 1997 (c) ---------- ---------- ---------- ---------- --------- Fixed charges, as defined: Interest on long-term debt....................................... $ 224 $ 223 $ 205 $ 188 $ 195 Interest on short-term debt and other interest................... 14 16 12 14 17 Amortization of debt discount, expense and premium - net......... 4 4 3 2 2 Interest on capital lease obligations: Charged to expense............................................. 4 9 8 9 Capitalized.................................................... 1 2 2 Estimated interest component of operating rentals................ 12 14 19 18 15 --------- ------- ------- ------- ------- Total fixed charges....................................... $ 254 $ 261 $ 249 $ 232 $ 240 ========= ======= ======= ======= ======= Earnings, as defined: Net income (a)................................................... $ 179 $ 276 $ 481 $ 409 $ 348 Less undistributed income of equity method investment............. --------- ------- ------- ------- ------- 179 276 481 409 348 Add (Deduct): Income taxes..................................................... 112 171 151 273 248 Amortization of capitalized interest on capital leases........... 2 2 2 2 Total fixed charges as above (excluding capitalized interest on capitalized lease obligations)..................... 254 261 248 230 238 --------- ------- ------- ------- ------- Total earnings............................................ $ 545 $ 710 $ 882 $ 914 $ 836 ========= ======= ======= ======= ======= Ratio of earnings to fixed charges (b) (c)............................ 2.15 2.72 3.54 3.94 3.48 ========= ======= ======= ======= =======
(a) 2001, 2000, 1999 and 1998 net income excluding extraordinary items. (b) Based on earnings excluding nonrecurring items, the ratio of earnings to fixed charges are: March 2001, 1.99; 2000, 2.56; 1999, 3.35; 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. (d) Due to the corporate realignment on July 1, 2000, prior years are not comparable to 2001 and 2000. 54