PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income Before Income Taxes | $ | 112 | $ | 278 | $ | 246 | $ | 298 | $ | 216 | $ | 84 | ||||||||||||
Total fixed charges as below | 62 | 114 | 143 | 159 | 190 | 198 | ||||||||||||||||||
Less capitalized interest | 1 | 2 | 3 | 1 | 1 | |||||||||||||||||||
Total fixed charges included in Income Before Income Taxes | 61 | 112 | 140 | 158 | 190 | 197 | ||||||||||||||||||
Total earnings | $ | 173 | $ | 390 | $ | 386 | $ | 456 | $ | 406 | $ | 281 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 54 | $ | 94 | $ | 109 | $ | 131 | $ | 151 | $ | 176 | ||||||||||||
Interest on short-term debt and other interest | 4 | 13 | 23 | 13 | 22 | 7 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 3 | 6 | 7 | 8 | 9 | 7 | ||||||||||||||||||
Estimated interest component of operating rentals | 1 | 1 | 4 | 7 | 8 | 8 | ||||||||||||||||||
Total fixed charges (a) | $ | 62 | $ | 114 | $ | 143 | $ | 159 | $ | 190 | $ | 198 | ||||||||||||
Ratio of earnings to fixed charges | 2.8 | 3.4 | 2.7 | 2.9 | 2.1 | 1.4 | ||||||||||||||||||
Preferred stock dividend requirements on a pre-tax basis | $ | 13 | $ | 28 | $ | 27 | $ | 24 | $ | 4 | $ | 4 | ||||||||||||
Fixed charges, as above | 62 | 114 | 143 | 159 | 190 | 198 | ||||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 75 | $ | 142 | $ | 170 | $ | 183 | $ | 194 | $ | 202 | ||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.3 | 2.7 | 2.3 | 2.5 | 2.1 | 1.4 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. |