EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
Year Ended December 31, | |||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||
(Dollars in millions) | |||||||||||||||
Earnings as defined for fixed charges calculation | |||||||||||||||
Add: | |||||||||||||||
Pretax income from continuing operations(a) | $ | 357 | $ | 2,375 | $ | 1,596 | $ | 722 | $ | 821 | |||||
Fixed charges |
| 1,179 |
| 837 |
| 786 |
| 429 |
| 276 | |||||
Distributed income of equity investees |
| 369 |
| 156 |
| 137 |
| 111 |
| 94 | |||||
Deduct: | |||||||||||||||
Preference security dividend requirements of consolidated subsidiaries |
| 99 |
| 127 |
| 83 |
| 52 |
| 18 | |||||
Interest capitalized(b) |
| 176 |
| 128 |
| 48 |
| 31 |
| 8 | |||||
Total earnings | $ | 1,630 | $ | 3,113 | $ | 2,388 | $ | 1,179 | $ | 1,165 | |||||
Fixed charges: | |||||||||||||||
Interest on debt, including capitalized portions | $ | 1,059 | $ | 689 | $ | 687 | $ | 364 | $ | 251 | |||||
Estimate of interest within rental expense |
| 21 |
| 21 |
| 16 |
| 13 |
| 7 | |||||
Preference security dividend requirements of consolidated subsidiaries |
| 99 |
| 127 |
| 83 |
| 52 |
| 18 | |||||
Total fixed charges | $ | 1,179 | $ | 837 | $ | 786 | $ | 429 | $ | 276 | |||||
Ratio of earnings to fixed charges |
| 1.4 |
| 3.7 |
| 3.0 |
| 2.7 |
| 4.2 | |||||
| (a) | Excludes minority interest expenses and income or loss from equity investees |
| (b) | Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Income |
