EXHIBIT 12
LOUISVILLE GAS AND ELECTRIC COMPANY AND SUBSIDIARY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of $)
|
| 2003 |
| 2002 |
| 2001 |
| 2000 |
| 1999 |
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Earnings: |
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|
| |||||
Net Income |
| $ | 90,839 |
| $ | 88,929 |
| $ | 106,781 |
| $ | 110,573 |
| $ | 106,270 |
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Add: |
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|
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|
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Federal income taxes - current |
| 25,768 |
| 24,564 |
| 41,127 |
| 30,425 |
| 54,198 |
| |||||
State income taxes - current |
| 10,003 |
| 7,653 |
| 8,185 |
| 4,450 |
| 13,650 |
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Deferred Federal income taxes - net |
| 16,793 |
| 20,258 |
| 12,595 |
| 24,233 |
| (4,564 | ) | |||||
Deferred State income taxes - net |
| 1,716 |
| 4,357 |
| 3,840 |
| 6,787 |
| (715 | ) | |||||
Investment tax credit - net |
| (4,207 | ) | (4,153 | ) | (4,290 | ) | (4,274 | ) | (4,289 | ) | |||||
Fixed charges |
| 31,378 |
| 30,551 |
| 38,755 |
| 46,438 |
| 40,026 |
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Earnings |
| 172,290 |
| 172,159 |
| 206,993 |
| 218,632 |
| 204,576 |
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Fixed Charges: |
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Interest Charges per statements of income |
| 30,647 |
| 29,805 |
| 37,922 |
| 43,218 |
| 37,962 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| 731 |
| 746 |
| 833 |
| 3,220 |
| 2,064 |
| |||||
Fixed charges |
| $ | 31,378 |
| $ | 30,551 |
| $ | 38,755 |
| $ | 46,438 |
| $ | 40,026 |
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Ratio of Earnings to Fixed Charges |
| 5.49 |
| 5.64 |
| 5.34 |
| 4.71 |
| 5.11 |
|
NOTE:
(1) In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.
KENTUCKY UTILITIES COMPANY AND SUBSIDIARY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of $)
|
| 2003 |
| 2002 |
| 2001 |
| 2000 |
| 1999 |
| |||||
Earnings: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net Income |
| $ | 91,402 |
| $ | 93,384 |
| $ | 96,278 |
| $ | 95,524 |
| $ | 106,558 |
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Add: |
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Federal income taxes - current |
| 29,118 |
| 37,839 |
| 57,389 |
| 45,276 |
| 51,997 |
| |||||
State income taxes - current |
| 11,322 |
| 10,509 |
| 13,197 |
| 9,400 |
| 13,513 |
| |||||
Deferred Federal income taxes - net |
| 11,378 |
| 3,272 |
| (12,117 | ) | (3,376 | ) | (4,651 | ) | |||||
Deferred State income taxes - net |
| 904 |
| 1,459 |
| (1,118 | ) | 927 |
| 887 |
| |||||
Investment tax credit - net |
| (2,641 | ) | (2,955 | ) | (3,446 | ) | (3,674 | ) | (3,727 | ) | |||||
Undistributed income of Electric Energy, Inc. |
| (3,644 | ) | (5,382 | ) | 258 |
| 70 |
| 33 |
| |||||
Fixed charges |
| 25,980 |
| 26,756 |
| 35,215 |
| 40,834 |
| 40,101 |
| |||||
Earnings |
| 163,819 |
| 164,882 |
| 185,656 |
| 184,981 |
| 204,711 |
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Fixed Charges: |
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Interest Charges per statements of income |
| 25,249 |
| 25,727 |
| 34,043 |
| 39,484 |
| 38,904 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| 731 |
| 1,029 |
| 1,172 |
| 1,350 |
| 1,197 |
| |||||
Fixed charges |
| $ | 25,980 |
| $ | 26,756 |
| $ | 35,215 |
| $ | 40,834 |
| $ | 40,101 |
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Ratio of Earnings to Fixed Charges |
| 6.31 |
| 6.16 |
| 5.27 |
| 4.53 |
| 5.10 |
|
NOTE:
(1) In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.