Exhibit 12.1
Potomac Electric Power Company | |||||||||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||
Three Months Ended March 31, 2017 | Year Ended December 31, | ||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||
Pre-tax income from continuing operations | 58 | 83 | 289 | 264 | 235 | 193 | |||||||||||
Plus: Loss from equity investees | — | — | — | — | — | — | |||||||||||
Less: Capitalized interest | (3 | ) | (10 | ) | (1 | ) | (2 | ) | (1 | ) | (2 | ) | |||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest | 55 | 73 | 288 | 262 | 234 | 191 | |||||||||||
Fixed Charges: | |||||||||||||||||
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness | 32 | 137 | 130 | 121 | 114 | 106 | |||||||||||
Interest component of rental expense (a) | 2 | 3 | 7 | 7 | 7 | 7 | |||||||||||
Total fixed charges | 34 | 140 | 137 | 128 | 121 | 113 | |||||||||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest plus fixed charges | 89 | 213 | 425 | 390 | 355 | 304 | |||||||||||
Ratio of earnings to combined fixed charges | 2.6 | 1.5 | 3.1 | 3.0 | 2.9 | 2.7 | |||||||||||
(a) Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |