Exhibit 12-1
ENERGY EAST CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Calendar Year | |||||
(Thousands) | 2004 | 2003 | 2002 | 2001 | 2000 |
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Add: | |||||
Income tax | 251,444 | 128,663 | 100,277 | 154,865 | 156,663 |
Pretax Income from |
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Fixed Charges | 289,846 | 312,781 | 297,284 | 238,103 | 157,937 |
Earnings, as defined | $778,911 | $649,934 | $587,490 | $581,707 | $552,012 |
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Interest charges, net(1) | $276,890 | $284,790 | $256,161 | $216,387 | $152,520 |
Interest portion of |
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Earnings required to |
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Fixed Charges, as defined | $289,846 | $312,781 | $297,284 | $238,103 | $157,937 |
Ratio of Earnings to |
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(1) Includes interest on long-term debt, other interest, and amortization of premium and discount on debt.
(2) Preferred stock dividends of subsidiaries have been adjusted to a pretax basis.
(3) The ratio of earnings to fixed charges is calculated by dividing earnings by fixed charges. For this purpose, earnings means income from continuing operations before income taxes and fixed charges. Fixed charges means all interest charges, the interest component of rentals, and preferred stock dividends of subsidiaries.
(4) Earnings for 2002 includes a $12 million writedown of an investment on NEON Communications, Inc. and a $41 million effect from restructuring expenses. Excluding those two amounts, the earnings ratio for 2002 would have been 2.13.
(5) Earnings for 2001 includes a $78 million writedown of an investment in NEON Communications, Inc. Excluding the $78 million, the earnings ratio for 2001 would have been 2.76.