Pepco 10-K 2011 FY Annual report

Exhibit 12.2 Statements Re: Computation of Ratios

POTOMAC ELECTRIC POWER COMPANY

	For the Year Ended December 31,
	2011		2010		2009		2008		2007
	(millions of dollars)
Net income	$	99	$	108	$	106	$	116	$	125
Income tax expense		36		37		76		64		62
Fixed charges:
Interest on long-term debt, amortization of discount, premium and expense		101		101		103		95		86
Other interest		10		10		11		11		12
Total fixed charges		111		111		114		106		98
Income before income tax expense and fixed charges	$	246	$	256	$	296	$	286	$	285
Ratio of earnings to fixed charges		2.22		2.31		2.60		2.70		2.91
Total fixed charges, shown above		111		111		114		106		98
Preferred dividend requirements, adjusted to a pre-tax amount		—		—		—		—		—
Total fixed charges and preferred dividends	$	111	$	111	$	114	$	106	$	98
Ratio of earnings to fixed charges and preferred dividends		2.22		2.31		2.60		2.70		2.91