Exhibit 12.2
Potomac Electric Power Company
Nine Months Ended September 30, 2010 | For the Year Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||
Net income | $ | 77 | $ | 106 | $ | 116 | $ | 125 | $ | 85 | $ | 165 | ||||||||||||
Income tax expense (a) | 62 | 76 | 64 | 62 | 58 | 128 | ||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest on long-term debt, amortization of discount, premium and expense | 76 | 103 | 95 | 86 | 77 | 83 | ||||||||||||||||||
Other interest | 8 | 11 | 11 | 12 | 13 | 14 | ||||||||||||||||||
Total fixed charges | 84 | 114 | 106 | 98 | 90 | 97 | ||||||||||||||||||
Income before income tax expense, and fixed charges | $ | 223 | $ | 296 | $ | 286 | $ | 285 | $ | 233 | $ | 390 | ||||||||||||
Ratio of earnings to fixed charges | 2.65 | 2.60 | 2.70 | 2.91 | 2.59 | 4.04 | ||||||||||||||||||
Total fixed charges, shown above | 84 | 114 | 106 | 98 | 90 | 97 | ||||||||||||||||||
Preferred dividend requirements, adjusted to a pre-tax amount | — | — | — | — | 2 | 2 | ||||||||||||||||||
Total fixed charges and preferred dividends | $ | 84 | $ | 114 | $ | 106 | $ | 98 | $ | 92 | $ | 99 | ||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 2.65 | 2.60 | 2.70 | 2.91 | 2.54 | 3.94 | ||||||||||||||||||
(a) | Concurrent with the adoption of FASB guidance on taxes (ASC 740) in 2007, amount includes interest on uncertain tax positions. |