Exhibit 12(b)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES | |||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||
(Millions of Dollars) | |||||||||||||
12 Months | 12 Months | ||||||||||||
Ended | Ended | ||||||||||||
September 30, | December 31, | ||||||||||||
2001 (c) | 2000 (c) | 1999 | 1998 | 1997 | |||||||||
Fixed charges, as defined: | |||||||||||||
Interest on long-term debt | $ 214 | $ 223 | $ 205 | $ 188 | $ 195 | ||||||||
Interest on short-term debt and other interest | 6 | 16 | 12 | 14 | 17 | ||||||||
Amortization of debt discount, expense and premium - net | 5 | 4 | 3 | 2 | 2 | ||||||||
Interest on capital lease obligations: | |||||||||||||
Charged to expense | 4 | 9 | 8 | 9 | |||||||||
Capitalized | 1 | 2 | 2 | ||||||||||
Estimated interest component of operating rentals | 8 | 14 | 19 | 18 | 15 | ||||||||
Total fixed charges | $ 233 | $ 261 | $ 249 | $ 232 | $ 240 | ||||||||
Earnings, as defined: | |||||||||||||
Net income (a) | $ 81 | $ 250 | $ 444 | $ 361 | $ 308 | ||||||||
Preferred security dividend requirements | 25 | 26 | 37 | 48 | 40 | ||||||||
Less undistributed income of equity method investments | | | | | |||||||||
106 | 276 | 481 | 409 | 348 | |||||||||
Add (Deduct): | |||||||||||||
Income taxes | 64 | 171 | 151 | 273 | 248 | ||||||||
Amortization of capitalized interest on capital leases | 2 | 2 | 2 | 2 | |||||||||
Total fixed charges as above (excluding capitalized interest on capitalized lease obligations) | 233 | 261 | 248 | 230 | 238 | ||||||||
Total earnings | $ 403 | $ 710 | $ 882 | $ 914 | $ 836 | ||||||||
Ratio of earnings to fixed charges (b) | 1.73 | 2.72 | 3.54 | 3.94 | 3.48 | ||||||||
(a) | 2001, 2000, 1999 and 1998 net income excluding extraordinary items. | ||||||||||||
(b) | Based on earnings excluding nonrecurring items, the ratio of earnings to fixed charges are: | ||||||||||||
2000, 2.56; 1999, 3.35; and 1998, 3.53. | |||||||||||||
(c) | Due to the corporate realignment on July 1, 2000, prior years are not comparable to 2001 and 2000. |