EXHIBIT 12
ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
| For Years Ended December 31, | ||||||||||||||||||||
($ in thousands) | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 75,145 | $ | 129,732 | $ | (308,875 | ) | $ | (465,749 | ) | $ | 458,134 | ||||||||
Exclude amounts reflected in line above: | ||||||||||||||||||||
Income tax expense (benefit) | 64,771 | 79,669 | (202,170 | ) | (313,112 | ) | 255,531 | |||||||||||||
Minority interest in income (loss) of subsidiaries | 587 | (882 | ) | (7,174 | ) | (13,509 | ) | 2,338 | ||||||||||||
Preferred dividends of subsidiary | 4,071 | 5,037 | 5,037 | 5,037 | 5,037 | |||||||||||||||
Amortization of capitalized interest | 2,695 | 2,288 | 1,592 | 852 | 578 | |||||||||||||||
Loss (income) from unconsolidated equity investees | 770 | 663 | 948 | 33,767 | (1,035 | ) | ||||||||||||||
Add fixed charges (see below) | 453,559 | 419,448 | 454,461 | 299,343 | 273,341 | |||||||||||||||
Less amounts included in fixed charges: | ||||||||||||||||||||
Capitalized interest | (3,065 | ) | (3,432 | ) | (15,934 | ) | (12,628 | ) | (9,417 | ) | ||||||||||
Preference security dividend requirements of consolidated subsidiary (Note 1) | (7,284 | ) | (7,967 | ) | (8,233 | ) | (8,284 | ) | (7,738 | ) | ||||||||||
Total Earnings (as defined) | $ | 591,249 | $ | 624,556 | $ | (79,808 | ) | $ | (474,283 | ) | $ | 976,769 | ||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 440,787 | $ | 404,505 | $ | (439,482 | ) | $ | (280,298 | ) | $ | 257,778 | ||||||||
Estimated interest component of rental expense | 5,488 | 6,976 | 6,746 | 10,761 | 7,825 | |||||||||||||||
Preference security dividend requirements of consolidated subsidiary (Note 1) | 7,284 | 7,967 | 8,233 | 8,284 | 7,738 | |||||||||||||||
Total Fixed Charges (as defined) | $ | 453,559 | $ | 419,448 | $ | 454,461 | $ | 299,343 | $ | 273,341 | ||||||||||
Ratio of Earnings to Fixed Charges | 1.30x | 1.49x | (Note 2 | ) | (Note 2 | ) | 3.57x | |||||||||||||
Notes:
| 1 | The preference security dividend requirement represents the amount of pre-tax earnings required to pay the dividends on outstanding preference securities of a subsidiary held by non-affiliates. |
| 2 | For the years ended December 31, 2003 and 2002, there are deficiencies of earnings to cover fixed charges of $534,269 and $773,626, respectively. |