| Exhibit 12(a) | ||||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
9 Months Ended September 30, | 12 Months Ended December 31, | |||||||||||||||||||||||
2007 | 2006 (d) | 2005 (d) | 2004 (d) | 2003 (d) | 2002 (d) | |||||||||||||||||||
| Earnings, as defined: | ||||||||||||||||||||||||
| Net income (a) | $ | 800 | $ | 842 | $ | 695 | $ | 681 | $ | 772 | $ | 401 | ||||||||||||
| Preferred security dividend requirements | 14 | 14 | 2 | 2 | 29 | 66 | ||||||||||||||||||
| Less undistributed income (loss) of equity method investments | 3 | 2 | (1 | ) | (5 | ) | (9 | ) | ||||||||||||||||
| Income taxes | 188 | 268 | 128 | 196 | 162 | 214 | ||||||||||||||||||
| Total fixed charges as below (excluding capitalized interest, preferred security distributions of subsidiaries on a pre-tax basis and interest expense related to discontinued operations) | 376 | 476 | 505 | 519 | 494 | 573 | ||||||||||||||||||
| Total earnings | $ | 1,378 | $ | 1,597 | $ | 1,328 | $ | 1,399 | $ | 1,462 | $ | 1,263 | ||||||||||||
| Fixed charges, as defined: | ||||||||||||||||||||||||
| Interest on long-term debt | $ | 395 | $ | 482 | $ | 465 | $ | 491 | $ | 417 | $ | 486 | ||||||||||||
| Interest on short-term debt and other interest | 20 | 13 | 29 | 20 | 25 | 70 | ||||||||||||||||||
| Amortization of debt discount, expense and premium - net | 6 | 11 | 23 | 8 | 41 | 25 | ||||||||||||||||||
| Estimated interest component of operating rentals | 18 | 29 | 32 | 34 | 45 | 38 | ||||||||||||||||||
| Preferred securities distributions of subsidiaries on a pre-tax basis | 17 | 24 | 5 | 5 | 45 | 79 | ||||||||||||||||||
| Total fixed charges (b) | $ | 456 | $ | 559 | $ | 554 | $ | 558 | $ | 573 | $ | 698 | ||||||||||||
| Ratio of earnings to fixed charges | 3.0 | 2.9 | 2.4 | 2.5 | 2.6 | 1.8 | ||||||||||||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends (c) | 3.0 | 2.9 | 2.4 | 2.5 | 2.6 | 1.8 | ||||||||||||||||||
| (a) | Net income excludes minority interest, discontinued operations and the cumulative effects of changes in accounting principles. | |
| (b) | Interest on unrecognized tax benefits is not included in fixed charges. | |
| (c) | PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges. | |
| (d) | Certain line items have been revised due to the planned sale of PPL's natural gas distribution and propane businesses and the related reclassification of prior period operating results to Discontinued Operations. |