PPL Electric Utilities 10-Q 2008 Q2 Quarterly report

Exhibit 12(b)
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars)
	6 Months Ended June 30,		12 Months Ended December 31,
	2008		2007			2006		2005		2004			2003
Earnings, as defined:
Income from Continuing Operations Before Income Taxes and Minority Interest	$	543	$	1,118		$	866	$	649	$	851		$	967
Less undistributed income of equity method investments		2		5			7		7		5			7
Distributed income from equity method investments		2		7			3		5		5			7
Total fixed charges as below		185		388			326		307		289			244
Less:
Capitalized interest		31		54			21		7		5			7
Preferred security distributions														8
Interest expense related to discontinued operations				27			29		28		22			20
Total fixed charges included in Income from Continuing Operations Before Income Taxes and Minority Interest		154		307			276		272		262			209
Total earnings	$	697	$	1,427		$	1,138	$	919	$	1,113		$	1,176
Fixed charges, as defined:
Interest on long-term debt	$	167	$	353		$	296	$	259	$	255		$	149
Interest on short-term debt and other interest		10		24			16		26		23			25
Amortization of debt discount, expense and premium - net		1		(3	)		(1)		7		(6	)		31
Estimated interest component of operating rentals		7		14			15		15		17			31
Preferred securities distributions of subsidiaries on a pre-tax basis														8
Total fixed charges (a)	$	185	$	388		$	326	$	307	$	289		$	244
Ratio of earnings to fixed charges		3.8		3.7			3.5		3.0		3.9			4.8

(a) Interest on unrecognized tax benefits is not included in fixed charges.