Exhibit 12.2
NRG Energy, Inc.
Calculation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements
Calculation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements
For the Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(In millions except ratio) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income tax | $ | 1,729 | $ | 946 | $ | 865 | $ | 110 | $ | 232 | ||||||||||
Minority interest in earnings | (1 | ) | — | — | — | — | ||||||||||||||
Less: | ||||||||||||||||||||
Undistributed equity in earning of unconsolidated affiliates | (44 | ) | (33 | ) | (33 | ) | (8 | ) | (1 | ) | ||||||||||
Capitalized interest | (45 | ) | (11 | ) | (5 | ) | — | — | ||||||||||||
Preference dividends — tax effected | (90 | ) | (91 | ) | (83 | ) | (33 | ) | (1 | ) | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 761 | 793 | 682 | 213 | 250 | |||||||||||||||
Amortization of capitalized interest | 1 | — | — | — | — | |||||||||||||||
Total Earnings: | $ | 2,311 | $ | 1,604 | $ | 1,426 | $ | 282 | $ | 480 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 591 | $ | 657 | $ | 562 | $ | 166 | $ | 222 | ||||||||||
Interest capitalized | 45 | 11 | 5 | — | — | |||||||||||||||
Amortization of debt issuance costs | 22 | 26 | 22 | 6 | 9 | |||||||||||||||
Amortization of debt discount/(premiums) | 7 | 6 | 6 | 5 | 14 | |||||||||||||||
Approximation of interest in rental expense | 6 | 2 | 4 | 3 | 4 | |||||||||||||||
Tax effect of preference dividends | 90 | 91 | 83 | 33 | 1 | |||||||||||||||
Total Fixed Charges: | $ | 761 | $ | 793 | $ | 682 | $ | 213 | $ | 250 | ||||||||||
Ratio of Earnings to Combined Fixed Charges and Preference Dividends | 3.04 | 2.02 | 2.09 | 1.32 | 1.92 | |||||||||||||||