PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars) | ||||||||||||||||||||||||
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 239 | $ | 1,085 | $ | 1,095 | $ | 841 | $ | 619 | $ | 825 | ||||||||||||
Less earnings of equity method investments | 1 | 1 | 3 | 5 | 5 | 4 | ||||||||||||||||||
Distributed income from equity method investments | 1 | 1 | 5 | 3 | 5 | 4 | ||||||||||||||||||
239 | 1,085 | 1,097 | 839 | 619 | 825 | |||||||||||||||||||
Total fixed charges as below | 259 | 390 | 388 | 326 | 307 | 289 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 37 | 57 | 54 | 21 | 7 | 5 | ||||||||||||||||||
Interest expense related to discontinued operations | 3 | 4 | 29 | 30 | 31 | 24 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 219 | 329 | 305 | 275 | 269 | 260 | ||||||||||||||||||
Total earnings | $ | 458 | $ | 1,414 | $ | 1,402 | $ | 1,114 | $ | 888 | $ | 1,085 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 209 | $ | 345 | $ | 353 | $ | 296 | $ | 259 | $ | 255 | ||||||||||||
Interest on short-term debt and other interest | 22 | 27 | 24 | 16 | 26 | 23 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 6 | 2 | (3 | ) | (1 | ) | 7 | (6 | ) | |||||||||||||||
Estimated interest component of operating rentals | 21 | 15 | 14 | 15 | 15 | 17 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | ||||||||||||||||||||||
Total fixed charges (a) | $ | 259 | $ | 390 | $ | 388 | $ | 326 | $ | 307 | $ | 289 | ||||||||||||
Ratio of earnings to fixed charges | 1.8 | 3.6 | 3.6 | 3.4 | 2.9 | 3.8 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. |