Exhibit 12(b) | ||||||||||||||||||||||||
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, | |||||||||||||||||||||||
2010 | 2009 (b) | 2008 (b) | 2007 (b) | 2006 (b) | 2005 (b) | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 745 | $ | 277 | $ | 1,000 | $ | 1,044 | $ | 803 | $ | 602 | ||||||||||||
Less earnings of equity method investments | 1 | 3 | 3 | |||||||||||||||||||||
Distributed income from equity method investments | 6 | 1 | 3 | 1 | 3 | |||||||||||||||||||
751 | 278 | 1,000 | 1,046 | 801 | 602 | |||||||||||||||||||
Total fixed charges as below | 306 | 364 | 390 | 388 | 326 | 307 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 22 | 44 | 57 | 54 | 21 | 7 | ||||||||||||||||||
Interest expense related to discontinued operations | 7 | 15 | 12 | 34 | 32 | 32 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 277 | 305 | 321 | 300 | 273 | 268 | ||||||||||||||||||
Total earnings | $ | 1,028 | $ | 583 | $ | 1,321 | $ | 1,346 | $ | 1,074 | $ | 870 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 229 | $ | 284 | $ | 345 | $ | 353 | $ | 296 | $ | 259 | ||||||||||||
Interest on short-term debt and other interest | 42 | 29 | 27 | 24 | 16 | 26 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 6 | 8 | 2 | (3 | ) | (1 | ) | 7 | ||||||||||||||||
Estimated interest component of operating rentals | 28 | 42 | 15 | 14 | 15 | 15 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | 1 | |||||||||||||||||||||
Total fixed charges (a) | $ | 306 | $ | 364 | $ | 390 | $ | 388 | $ | 326 | $ | 307 | ||||||||||||
Ratio of earnings to fixed charges | 3.4 | 1.6 | 3.4 | 3.5 | 3.3 | 2.8 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(b) | Years 2005 through 2009 have been adjusted to reflect the reclassification of certain non-core generation facilities as Discontinued Operations. See Note 8 to the Financial Statements for additional information. |