| Exhibit 12(b) | ||||||||||||||||||||||
| PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES | ||||||||||||||||||||||
| COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||||
| (Millions of Dollars) | ||||||||||||||||||||||
| 9 Months | ||||||||||||||||||||||
| Ended | ||||||||||||||||||||||
| Sept 30, | Years Ended December 31, | |||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
| Earnings, as defined: | ||||||||||||||||||||||
| Income (Loss) from Continuing Operations Before | ||||||||||||||||||||||
Income Taxes | $ | 279 | $ | 738 | $ | 1,212 | $ | 881 | $ | (13) | $ | 671 | ||||||||||
| Adjustments to reflect earnings from equity method | ||||||||||||||||||||||
investments on a cash basis | 1 | 7 | 1 | |||||||||||||||||||
| 279 | 738 | 1,213 | 888 | (12) | 671 | |||||||||||||||||
Total fixed charges as below | 172 | 238 | 259 | 426 | 364 | 390 | ||||||||||||||||
| Less: | ||||||||||||||||||||||
Capitalized interest | 28 | 47 | 47 | 33 | 44 | 57 | ||||||||||||||||
| Interest expense and fixed charges related to | ||||||||||||||||||||||
discontinued operations | 3 | 147 | 102 | 157 | ||||||||||||||||||
| Total fixed charges included in Income (Loss) from | ||||||||||||||||||||||
Continuing Operations Before Income Taxes | 144 | 191 | 209 | 246 | 218 | 176 | ||||||||||||||||
Total earnings | $ | 423 | $ | 929 | $ | 1,422 | $ | 1,134 | $ | 206 | $ | 847 | ||||||||||
| Fixed charges, as defined: | ||||||||||||||||||||||
Interest charges (a) | $ | 159 | $ | 214 | $ | 223 | $ | 387 | $ | 321 | $ | 374 | ||||||||||
Estimated interest component of operating rentals | 13 | 24 | 36 | 38 | 42 | 15 | ||||||||||||||||
| Fixed charges of majority-owned share of 50% or | ||||||||||||||||||||||
less-owned persons | 1 | 1 | 1 | |||||||||||||||||||
Total fixed charges (b) | $ | 172 | $ | 238 | $ | 259 | $ | 426 | $ | 364 | $ | 390 | ||||||||||
Ratio of earnings to fixed charges (c) | 2.5 | 3.9 | 5.5 | 2.7 | 0.6 | 2.2 | ||||||||||||||||
| (a) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
| (b) | Interest on unrecognized tax benefits is not included in fixed charges. | |
| (c) | In January 2011, PPL Energy Supply distributed its 100% membership interest in PPL Global to PPL Energy Supply's parent, PPL Energy Funding. As a result, PPL Global’s operating results were reclassified as Discontinued Operations. Upon reflecting this reclassification, earnings were less than fixed charges for 2009. See Note 9 in PPL Energy Supply’s 2011 Form 10-K for additional information. The total amount of fixed charges for this period was approximately $364 million and the total amount of earnings was approximately $206 million. The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $158 million. |
149