EXHIBIT 12.3
Page 1
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | ||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
EARNINGS AS DEFINED IN REGULATION S-K: | ||||||||||||||||
Income before extraordinary items | $ | 177,905 | $ | 136,952 | $ | 197,033 | $ | 236,531 | $ | 231,059 | ||||||
Interest and other charges, before reduction for | ||||||||||||||||
amounts capitalized | 192,102 | 189,502 | 164,132 | 138,678 | 132,226 | |||||||||||
Provision for income taxes | 137,887 | 84,938 | 131,285 | 138,856 | 153,014 | |||||||||||
Interest element of rentals charged to income (a) | 59,497 | 51,170 | 49,761 | 49,375 | 47,643 | |||||||||||
Earnings as defined | $ | 567,391 | $ | 462,562 | $ | 542,211 | $ | 563,440 | $ | 563,942 | ||||||
FIXED CHARGES AS DEFINED IN REGULATION S-K: | ||||||||||||||||
Interest expense | $ | 191,727 | $ | 180,602 | $ | 159,632 | $ | 138,678 | $ | 132,226 | ||||||
Subsidiary’s preferred stock dividend requirements | 375 | 8,900 | 4,500 | - | - | |||||||||||
Interest element of rentals charged to income (a) | 59,497 | 51,170 | 49,761 | 49,375 | 47,643 | |||||||||||
Fixed charges as defined | $ | 251,599 | $ | 240,672 | $ | 213,893 | $ | 188,053 | $ | 179,869 | ||||||
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES | 2.26 | 1.92 | 2.53 | 3.00 | 3.14 | |||||||||||
(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
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EXHIBIT 12.3
Page 2
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31, | ||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
EARNINGS AS DEFINED IN REGULATION S-K: | ||||||||||||||||
Income before extraordinary items | $ | 177,905 | $ | 136,952 | $ | 197,033 | $ | 236,531 | $ | 231,059 | ||||||
Interest and other charges, before reduction for amounts | ||||||||||||||||
capitalized | 192,102 | 189,502 | 164,132 | 138,678 | 132,226 | |||||||||||
Provision for income taxes | 137,887 | 84,938 | 131,285 | 138,856 | 153,014 | |||||||||||
Interest element of rentals charged to income (a) | 59,497 | 51,170 | 49,761 | 49,375 | 47,643 | |||||||||||
Earnings as defined | $ | 567,391 | $ | 462,562 | $ | 542,211 | $ | 563,440 | $ | 563,942 | ||||||
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS | ||||||||||||||||
PREFERRED STOCK DIVIDEND REQUIREMENTS | ||||||||||||||||
(PRE-INCOME TAX BASIS): | ||||||||||||||||
Interest expense | $ | 191,727 | $ | 180,602 | $ | 159,632 | $ | 138,678 | $ | 132,226 | ||||||
Preferred stock dividend requirements | 25,213 | 24,590 | 12,026 | 7,008 | 2,918 | |||||||||||
Adjustments to preferred stock dividends | ||||||||||||||||
to state on a pre-income tax basis | 20,178 | 8,204 | 5,137 | 4,113 | 1,932 | |||||||||||
Interest element of rentals charged to income (a) | 59,497 | 51,170 | 49,761 | 49,375 | 47,643 | |||||||||||
Fixed charges as defined plus preferred stock | ||||||||||||||||
dividend requirements (pre-income tax basis) | $ | 296,615 | $ | 264,566 | $ | 226,556 | $ | 199,174 | $ | 184,719 | ||||||
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS | ||||||||||||||||
(PRE-INCOME TAX BASIS) | 1.91 | 1.75 | 2.39 | 2.83 | 3.05 | |||||||||||
(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
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