Exhibit 12-B
ATLANTIC CITY ELECTRIC COMPANY
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in Thousands)
3 Months Ended March 31, | Year Ended December 31, | |||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | 1997 | |||||||||||||
| Income before extraordinary item | $ | 5,057 | $ | 75,476 | $ | 54,434 | $ | 63,930 | $ | 30,276 | $ | 85,747 | ||||||
| Income taxes | 3,883 | 46,698 | 36,746 | 49,326 | 18,178 | 50,442 | ||||||||||||
| Fixed charges: | ||||||||||||||||||
| Interest on long-term debt including amortization of discount, premium and expense | 13,995 | 62,166 | 76,178 | 60,562 | 63,940 | 64,501 | ||||||||||||
| Other interest | 641 | 3,314 | 4,518 | 3,837 | 3,435 | 3,574 | ||||||||||||
| Preferred dividend requirements of subsidiary trusts | 1,905 | 7,619 | 7,619 | 7,634 | 6,052 | 5,775 | ||||||||||||
| Total fixed charges | 16,541 | 73,099 | 88,315 | 72,033 | 73,427 | 73,850 | ||||||||||||
| Earnings before extraordinary item, income taxes and fixed charges | $ | 25,481 | $ | 195,273 | $ | 179,495 | $ | 185,289 | $ | 121,881 | $ | 210,039 | ||||||
| Fixed charges | $ | 16,541 | $ | 73,099 | $ | 88,315 | $ | 72,033 | $ | 73,427 | $ | 73,850 | ||||||
| Preferred dividend requirements | 546 | 2,724 | 3,571 | 3,777 | 5,289 | 7,506 | ||||||||||||
| $ | 17,087 | $ | 75,823 | $ | 91,886 | $ | 75,810 | $ | 78,716 | $ | 81,356 | |||||||
| Ratio of earnings to fixed charges and preferred dividends | 1.49 | 2.58 | 1.95 | 2.44 | 1.55 | 2.58 | ||||||||||||
For purposes of computing the ratio, earnings are income before extraordinary item plus income taxes and fixed charges. Fixed charges consist of interest on long- and short-term debt, amortization of debt discount, premium, and expense, dividends on preferred securities of subsidiary trusts, and the estimated interest component of rentals. Preferred dividend requirements represent annualized preferred dividend requirements multiplied by the ratio that pre-tax income bears to net income.