Exhibit 12.1
Atlantic City Electric Company and Subsidiary Company | ||||||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
Years Ended December 31, | June 30, | |||||||||||||||||
(In millions, except ratios) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
Pre-tax income from continuing operations | 78 | 76 | 73 | (46 | ) | 103 | 18 | |||||||||||
Less: Capitalized interest | — | — | — | (3 | ) | (3 | ) | (2 | ) | |||||||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest | 78 | 76 | 73 | (49 | ) | 100 | 16 | |||||||||||
Fixed Charges: | ||||||||||||||||||
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness | 68 | 64 | 65 | 64 | 63 | 34 | ||||||||||||
Interest component of rental expense(a) | 4 | 4 | 4 | 4 | 5 | 1 | ||||||||||||
Total fixed charges | 72 | 68 | 69 | 68 | 68 | 35 | ||||||||||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest plus fixed charges | 150 | 144 | 142 | 19 | 168 | 51 | ||||||||||||
Ratio of earnings to fixed charges | 2.1 | 2.1 | 2.1 | 0.3 | (b) | 2.5 | 1.5 |
__________
(a) | Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |
(b) | The ratio coverage was less than 1:1. The registrant must generate additional earnings of $49 million to achieve a coverage ratio of 1:1. |