EXHIBIT 12
LOUISVILLE GAS AND ELECTRIC COMPANY AND SUBSIDIARY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of $)
|
| 2002 |
| 2001 |
| 2000 |
| 1999 |
| 1998 |
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Earnings: |
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Net Income |
| $ | 88,929 |
| $ | 106,781 |
| $ | 110,573 |
| $ | 106,270 |
| $ | 78,120 |
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Add: |
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Federal income taxes - current |
| 24,564 |
| 41,127 |
| 30,425 |
| 54,198 |
| 39,618 |
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State income taxes - current |
| 7,653 |
| 8,185 |
| 4,450 |
| 13,650 |
| 10,164 |
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Deferred Federal income taxes - net |
| 20,258 |
| 12,595 |
| 24,233 |
| (4,564 | ) | 2,167 |
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Deferred State income taxes - net |
| 4,357 |
| 3,840 |
| 6,787 |
| (715 | ) | 636 |
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Investment tax credit - net |
| (4,153 | ) | (4,290 | ) | (4,274 | ) | (4,289 | ) | (4,312 | ) | |||||
Fixed charges |
| 30,128 |
| 38,234 |
| 44,707 |
| 39,323 |
| 37,571 |
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Earnings |
| 171,736 |
| 208,472 |
| 216,901 |
| 203,873 |
| 163,964 |
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Fixed Charges: |
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Interest Charges per statements of income |
| 29,805 |
| 37,922 |
| 43,218 |
| 37,962 |
| 36,322 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| 323 |
| 312 |
| 1,489 |
| 1,361 |
| 1,249 |
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Fixed charges |
| $ | 30,128 |
| $ | 38,234 |
| $ | 44,707 |
| $ | 39,323 |
| $ | 37,571 |
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Ratio of Earnings to Fixed Charges |
| 5.70 |
| 5.40 |
| 4.85 |
| 5.18 |
| 4.36 |
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NOTE:
(1) In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.
1
EXHIBIT 12
KENTUCKY UTILITIES COMPANY AND SUBSIDIARY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of $)
|
| 2002 |
| 2001 |
| 2000 |
| 1999 |
| 1998 |
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Earnings: |
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Net Income before cumulative effect of a change in accounting principle per statements of income |
| $93,384 |
| $96,278 |
| $95,524 |
| $106,558 |
| $72,764 |
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Add: |
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Federal income taxes - current |
| 37,839 |
| 57,389 |
| 45,276 |
| 51,997 |
| 45,704 |
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State income taxes - current |
| 10,509 |
| 13,197 |
| 9,400 |
| 13,513 |
| 10,008 |
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Deferred Federal income taxes - net |
| 3,272 |
| (12,117 | ) | (3,376 | ) | (4,651 | ) | (2,492 | ) |
Deferred State income taxes - net |
| 1,459 |
| (1,118 | ) | 927 |
| 887 |
| 54 |
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Investment tax credit - net |
| (2,955 | ) | (3,446 | ) | (3,674 | ) | (3,727 | ) | (3,829 | ) |
Undistributed income of Electric Energy, Inc. |
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| (5,382 | ) | 258 |
| 70 |
| 33 |
| 1 |
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Fixed charges |
| 25,823 |
| 34,202 |
| 40,254 |
| 39,486 |
| 39,318 |
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Earnings |
| 163,949 |
| 184,643 |
| 184,401 |
| 204,096 |
| 161,528 |
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Fixed Charges: |
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Interest Charges |
| 25,727 |
| 34,043 |
| 39,484 |
| 38,904 |
| 38,660 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| 96 |
| 159 |
| 770 |
| 582 |
| 658 |
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Fixed charges |
| $25,823 |
| $34,202 |
| $40,254 |
| $39,486 |
| $39,318 |
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Ratio of Earnings to Fixed Charges |
| 6.35 |
| 5.40 |
| 4.58 |
| 5.17 |
| 4.11 |
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NOTE:
(1) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor.
2