Exhibit 12(b) | ||||||||||||||||||||||||
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars) | ||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 413 | $ | 334 | $ | 1,085 | $ | 1,095 | $ | 841 | $ | 619 | ||||||||||||
Less earnings of equity method investments | 1 | 2 | 1 | 3 | 5 | 5 | ||||||||||||||||||
Distributed income from equity method investments | 4 | 2 | 1 | 5 | 3 | 5 | ||||||||||||||||||
416 | 334 | 1,085 | 1,097 | 839 | 619 | |||||||||||||||||||
Total fixed charges as below | 204 | 364 | 390 | 388 | 326 | 307 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 14 | 44 | 57 | 54 | 21 | 7 | ||||||||||||||||||
Interest expense related to discontinued operations | 5 | 4 | 27 | 30 | 31 | |||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 190 | 315 | 329 | 307 | 275 | 269 | ||||||||||||||||||
Total earnings | $ | 606 | $ | 649 | $ | 1,414 | $ | 1,404 | $ | 1,114 | $ | 888 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 153 | $ | 284 | $ | 345 | $ | 353 | $ | 296 | $ | 259 | ||||||||||||
Interest on short-term debt and other interest | 27 | 29 | 27 | 24 | 16 | 26 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 4 | 8 | 2 | (3 | ) | (1 | ) | 7 | ||||||||||||||||
Estimated interest component of operating rentals | 19 | 42 | 15 | 14 | 15 | 15 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | 1 | |||||||||||||||||||||
Total fixed charges (a) | $ | 204 | $ | 364 | $ | 390 | $ | 388 | $ | 326 | $ | 307 | ||||||||||||
Ratio of earnings to fixed charges | 3.0 | 1.8 | 3.6 | 3.6 | 3.4 | 2.9 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. |