Exhibit 99.4
Computation of Ratio of Earnings to Fixed Charges
PEPCO HOLDINGS, INC.
| For the Year Ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
| (millions of dollars) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net income from continuing operations | $ | 218 | $ | 222 | $ | 91 | $ | 163 | $ | 214 | ||||||||||
Preferred stock dividend | — | — | — | — | — | |||||||||||||||
(Income) or loss from equity investees | (1 | ) | 3 | 1 | (2 | ) | 4 | |||||||||||||
Minority interest loss | — | — | — | — | — | |||||||||||||||
Income tax expense (benefit) related to continuing operations | 103 | 114 | (14 | ) | 80 | 96 | ||||||||||||||
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Pre-tax income for common stock | 320 | 339 | 78 | 241 | 314 | |||||||||||||||
Add: Fixed charges* | 286 | 275 | 312 | 332 | 317 | |||||||||||||||
Add: Distributed income of equity investees | — | — | — | — | — | |||||||||||||||
Subtract: Interest capitalized | — | — | — | — | (1 | ) | ||||||||||||||
Subtract: Pre-tax preferred stock dividend requirement | — | — | — | — | — | |||||||||||||||
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Earnings | $ | 606 | $ | 614 | $ | 390 | $ | 573 | $ | 630 | ||||||||||
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*Fixed Charges | ||||||||||||||||||||
Interest on long-term debt | $ | 249 | $ | 239 | $ | 269 | $ | 286 | $ | 276 | ||||||||||
Interest capitalized | — | — | — | — | 1 | |||||||||||||||
Other interest | — | — | — | — | — | |||||||||||||||
Amortization of debt discount, premium, and expense | 16 | 14 | 21 | 23 | 16 | |||||||||||||||
Interest component of rentals | 21 | 22 | 22 | 23 | 24 | |||||||||||||||
Pre-tax preferred stock dividend requirement | — | — | — | — | — | |||||||||||||||
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Fixed charges | $ | 286 | $ | 275 | $ | 312 | $ | 332 | $ | 317 | ||||||||||
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Ratio of earnings to fixed charges (a) | 2.12 | 2.23 | 1.25 | 1.73 | 1.99 | |||||||||||||||
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| (a) | Pepco Holdings, Inc. has no preferred equity securities outstanding, therefore the ratio of earnings to fixed charges is equal to the ratio of earnings to combined fixed charges and preferred stock dividends. |
