Exhibit 12-2
ENERGY EAST CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Calendar Year | |||||
(thousands) | 2003 | 2002 | 2001 | 2000 | 1999 |
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Add: | |||||
Income tax - current | 19,420 | 52,407 | 148,016 | 129,220 | 662,512 |
Income tax- deferred | 108,267 | 46,431 | 6,863 | 26,464 | (441,721) |
Pretax Income from | 335,074 |
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Fixed Charges | 312,788 | 299,521 | 239,246 | 158,398 | 137,307 |
Earnings, as defined | $647,862 | $588,875 | $582,837 | $549,394 | $576,849 |
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Interest on long-term debt | $241,420 | $208,034 | $171,637 | $118,101 | $93,678 |
Other interest | 28,847 | 33,289 | 34,029 | 28,003 | 30,453 |
Amortization of premium |
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Interest portion of |
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Earnings required to |
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Fixed Charges, as defined | $312,788 | $299,521 | $239,246 | $158,398 | $137,307 |
Preferred Stock Dividends(2) | - | - | - | - | - |
Fixed Charges and |
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Ratio of Earnings to Fixed |
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(1) Preferred stock dividends of subsidiaries have been adjusted to a pretax basis.
(2) We have not previously issued preferred stock and we therefore have never declared any preferred dividends.
(3) The ratio of earnings to fixed charges is calculated by dividing earnings by fixed charges. For this purpose, earnings means income from continuing operations before income taxes and fixed charges. Fixed charges means all interest charges, the interest component of rentals, and preferred stock dividends of subsidiaries.
(4) Earnings for 2002 includes a $12 million writedown of an investment on NEON Communications, Inc. and a $41 million effect from restructuring expenses. Excluding those two amounts, the earnings ratio for 2002 would have been 2.13.
(5) Earnings for 2001 includes a $78 million writedown of an investment in NEON Communications, Inc. Excluding the $78 million, the earnings ratio for 2001 would have been 2.76.
(6) Earnings for 1999 includes $84 million that the company paid in federal income taxes as a result of the sale of its coal-fired generation assets. Excluding the $84 million, the earnings ratio for 1999 would have been 3.59.