EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY CORPORATION
The ratio of earnings to fixed charges is calculated using the SEC guidelines.
Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Earnings as defined for fixed charges calculation | ||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||
Pretax income from continuing operations(a) | $ | 1,927 | $ | 2,097 | $ | 1,770 | $ | 1,993 | $ | 2,078 | $ | 1,421 | ||||||||||||
Fixed charges | 787 | 1,045 | 892 | 883 | 797 | 1,382 | ||||||||||||||||||
Distributed income of equity investees | 113 | 111 | 82 | 195 | 147 | 893 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | — | — | — | — | — | 27 | ||||||||||||||||||
Interest capitalized(b) | 129 | 168 | 102 | 93 | 71 | 56 | ||||||||||||||||||
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Total earnings (as defined for the Fixed Charges calculation) | $ | 2,698 | $ | 3,085 | $ | 2,642 | $ | 2,978 | $ | 2,951 | $ | 3,613 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest on debt, including capitalized portions(b) | $ | 763 | $ | 1,008 | $ | 853 | $ | 834 | $ | 756 | $ | 1,311 | ||||||||||||
Estimate of interest within rental expense | 24 | 37 | 39 | 49 | 41 | 44 | ||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | — | — | — | — | — | 27 | ||||||||||||||||||
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Total fixed charges | $ | 787 | $ | 1,045 | $ | 892 | $ | 883 | $ | 797 | $ | 1,382 | ||||||||||||
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Ratio of earnings to fixed charges | 3.4 | 3.0 | 3.0 | 3.4 | 3.7 | 2.6 | ||||||||||||||||||
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(a) | Excludes amounts attributable to noncontrolling interests and income or loss from equity investees. |
(b) | Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations. |