Exhibit 12.1
Pepco Holdings, Inc.
Nine Months Ended September 30, 2009 | For the Year Ended December 31, | ||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||
Income before extraordinary item (a) | $ | 192 | $ | 305 | $ | 324 | $ | 245 | $ | 369 | $ | 257 | |||||||||||
Income tax expense (b) | 102 | 168 | 188 | 161 | 255 | 167 | |||||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest on long-term debt, amortization of discount, premium and expense | 288 | 341 | 348 | 343 | 341 | 376 | |||||||||||||||||
Other interest | 17 | 24 | 25 | 19 | 20 | 21 | |||||||||||||||||
Preferred dividend requirements of subsidiaries | — | — | — | 1 | 3 | 3 | |||||||||||||||||
Total fixed charges | 305 | 365 | 373 | 363 | 364 | 400 | |||||||||||||||||
Non-utility capitalized interest | (3 | ) | (6 | ) | (2 | ) | (1 | ) | (1 | ) | — | ||||||||||||
Income before extraordinary item, income tax expense, fixed charges and non-utility capitalized interest | $ | 596 | $ | 832 | $ | 883 | $ | 768 | $ | 987 | $ | 824 | |||||||||||
Total fixed charges, shown above | 305 | 365 | 373 | 363 | 364 | 400 | |||||||||||||||||
Increase preferred stock dividend requirements of subsidiaries to a pre-tax amount | — | — | — | 1 | 2 | 2 | |||||||||||||||||
Fixed charges for ratio computation | $ | 305 | $ | 365 | $ | 373 | $ | 364 | $ | 366 | $ | 402 | |||||||||||
Ratio of earnings to fixed charges and preferred dividends | 1.95 | 2.28 | 2.36 | 2.11 | 2.70 | 2.05 | |||||||||||||||||
(a) | Excludes income/losses from equity investments. |
(b) | Concurrent with the adoption of FASB guidance on taxes (ASC 740) in 2007, amount includes interest on uncertain tax positions. |