EXHIBIT 12
LOUISVILLE GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of $)
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| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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Earnings: |
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Net Income |
| $ | 128.9 |
| $ | 95.6 |
| $ | 90.8 |
| $ | 88.9 |
| $ | 106.8 |
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Add: |
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Federal income taxes - current |
| $ | 73.2 |
| $ | 33.9 |
| $ | 25.8 |
| $ | 24.6 |
| $ | 41.1 |
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State income taxes - current |
| $ | 10.1 |
| $ | 13.0 |
| $ | 10.0 |
| $ | 7.7 |
| $ | 8.2 |
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Deferred Federal income taxes - net |
| $ | (12.6 | ) | $ | 11.4 |
| $ | 16.8 |
| $ | 20.3 |
| $ | 12.6 |
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Deferred State income taxes - net |
| $ | (1.7 | ) | $ | (0.8 | ) | $ | 1.7 |
| $ | 4.4 |
| $ | 3.8 |
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Investment tax credit - net |
| $ | (4.1 | ) | $ | (4.2 | ) | $ | (4.2 | ) | $ | (4.2 | ) | $ | (4.3 | ) |
Fixed charges |
| $ | 37.8 |
| $ | 33.7 |
| $ | 31.4 |
| $ | 30.5 |
| $ | 38.8 |
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Earnings |
| $ | 231.6 |
| $ | 182.6 |
| $ | 172.3 |
| $ | 172.2 |
| $ | 207.0 |
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Fixed Charges: |
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Interest Charges per statements of income |
| $ | 36.8 |
| $ | 32.8 |
| $ | 30.7 |
| $ | 29.8 |
| $ | 37.9 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| $ | 1.0 |
| $ | 0.9 |
| $ | 0.7 |
| $ | 0.7 |
| $ | 0.9 |
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Fixed charges |
| $ | 37.8 |
| $ | 33.7 |
| $ | 31.4 |
| $ | 30.5 |
| $ | 38.8 |
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Ratio of Earnings to Fixed Charges |
| 6.13 |
| 5.42 |
| 5.49 |
| 5.65 |
| 5.34 |
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NOTE:
(1) In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.
KENTUCKY UTILITIES COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of $)
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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Earnings: |
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Net Income |
| 112.1 |
| 133.5 |
| 91.4 |
| 93.4 |
| 96.3 |
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Add: |
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Federal income taxes - current |
| 56.8 |
| 39.3 |
| 29.1 |
| 37.8 |
| 57.4 |
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State income taxes - current |
| 10.6 |
| 17.7 |
| 11.4 |
| 10.3 |
| 13.2 |
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Deferred Federal income taxes - net |
| (1.9 | ) | 22.0 |
| 11.4 |
| 3.5 |
| (12.1 | ) |
Deferred State income taxes - net |
| 0.2 |
| (0.5 | ) | 0.9 |
| 1.5 |
| (1.1 | ) |
Investment tax credit - net |
| (1.7 | ) | (2.1 | ) | (2.7 | ) | (2.9 | ) | (3.5 | ) |
Undistributed income of Electric Energy, Inc |
| (2.3 | ) | (2.6 | ) | (3.7 | ) | (7.0 | ) | 0.3 |
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Fixed charges |
| 32.1 |
| 26.4 |
| 25.9 |
| 26.7 |
| 35.2 |
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Earnings |
| 205.9 |
| 233.7 |
| 163.7 |
| 163.3 |
| 185.7 |
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Fixed Charges: |
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Interest Charges per statements of income |
| 31.0 |
| 25.5 |
| 25.2 |
| 25.7 |
| 34.0 |
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Add: |
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One-third of rentals charged to operating expense (1) |
| 1.1 |
| 0.9 |
| 0.7 |
| 1.0 |
| 1.2 |
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Fixed charges |
| 32.1 |
| 26.4 |
| 25.9 |
| 26.7 |
| 35.2 |
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Ratio of Earnings to Fixed Charges |
| 6.41 |
| 8.85 |
| 6.32 |
| 6.12 |
| 5.28 |
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NOTE:
(1) In the Company’s opinion, one-third of rentals represents a reasonable approximation of the interest factor.