| Exhibit 12(b) | ||||||||||||||||||||||||||||
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars) | ||||||||||||||||||||||||||||
12 Months Ended September 30, | 12 Months Ended December 31, | |||||||||||||||||||||||||||
2005 | 2004 (b) | 2003 (b) | 2002 (b) | 2001 | 2000 | |||||||||||||||||||||||
| Fixed charges, as defined: | ||||||||||||||||||||||||||||
| Interest on long-term debt | $ | 260 | $ | 255 | $ | 149 | $ | 169 | $ | 36 | $ | 54 | ||||||||||||||||
Interest on short-term debt and other interest | 31 | 23 | 25 | 52 | 33 | 75 | ||||||||||||||||||||||
Amortization of debt discount, expense and premium - net | 4 | (6 | ) | 31 | 9 | 2 | 11 | |||||||||||||||||||||
Estimated interest component of operating rentals | 15 | 17 | 31 | 21 | 19 | 9 | ||||||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 8 | 12 | ||||||||||||||||||||||||||
| Total fixed charges | $ | 310 | $ | 289 | $ | 244 | $ | 263 | $ | 90 | $ | 149 | ||||||||||||||||
| Earnings, as defined: | ||||||||||||||||||||||||||||
| Net income (a) | $ | 635 | $ | 673 | $ | 733 | $ | 515 | $ | 168 | $ | 246 | ||||||||||||||||
| Preferred security dividend requirement | 5 | 8 | ||||||||||||||||||||||||||
Less undistributed income (loss) of equity method investments | (13 | ) | (13 | ) | (15 | ) | (22 | ) | 20 | 74 | ||||||||||||||||||
648 | 686 | 753 | 545 | 148 | 172 | |||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||
| Income taxes | 119 | 207 | 194 | 270 | 274 | 125 | ||||||||||||||||||||||
Total fixed charges as above (excluding capitalized interest and preferred security distributions of subsidiaries on a pre-tax basis) | 304 | 285 | 230 | 231 | 66 | 135 | ||||||||||||||||||||||
| Total earnings | $ | 1,071 | $ | 1,178 | $ | 1,177 | $ | 1,046 | $ | 488 | $ | 432 | ||||||||||||||||
| Ratio of earnings to fixed charges | 3.5 | 4.1 | 4.8 | 4.0 | 5.4 | 2.9 | ||||||||||||||||||||||
| (a) | Net income excludes minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles. | |
| (b) | Certain line items have been revised due to the May 2005 sale of the Sundance plant and the related reclassification of prior period operating losses to "Loss from Discontinued Operations." |