PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | |||||||||||||||||||||||
12 Months Ended March 31, | 12 Months Ended December 31, (c) | ||||||||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | 1997 | ||||||||||||||||||
| Fixed charges, as defined: | |||||||||||||||||||||||
| Interest on long-term debt | $ | 364 | $ | 351 | $ | 323 | $ | 233 | $ | 203 | $ | 196 | |||||||||||
| Interest on short-term debt and other interest | 27 | 44 | 64 | 47 | 33 | 26 | |||||||||||||||||
| Amortization of debt discount, expense and premium - net | 20 | 17 | 5 | 4 | 2 | 2 | |||||||||||||||||
| Interest on capital lease obligations | |||||||||||||||||||||||
| Charged to expense | 4 | 9 | 8 | 9 | |||||||||||||||||||
| Capitalized | 1 | 2 | 2 | ||||||||||||||||||||
| Estimated interest component of operating rentals | 36 | 36 | 25 | 20 | 18 | 15 | |||||||||||||||||
| Preferred stock dividends of subsidiaries on a pre-tax basis | 75 | 64 | 31 | 30 | 31 | 33 | |||||||||||||||||
| Total fixed charges | $ | 522 | $ | 512 | $ | 452 | $ | 344 | $ | 297 | $ | 283 | |||||||||||
| Earnings, as defined: | |||||||||||||||||||||||
| Net income (a) | $ | 91 | $ | 167 | $ | 491 | $ | 492 | $ | 379 | $ | 296 | |||||||||||
| Preferred security dividend requirements | 63 | 52 | 26 | 26 | 25 | 24 | |||||||||||||||||
| Less undistributed income of equity method investments | 5 | 20 | 74 | 56 | 3 | (25 | ) | ||||||||||||||||
149 | 199 | 443 | 462 | 401 | 345 | ||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Income taxes | 197 | 261 | 294 | 174 | 259 | 238 | |||||||||||||||||
| Amortization of capitalized interest on capital leases | 2 | 2 | 2 | 2 | |||||||||||||||||||
| Total fixed charges as above (excluding capitalized interest on capital lease obligations and preferred stock dividends of subsidiaries on a pre-tax basis) | 447 | 448 | 421 | 314 | 265 | 248 | |||||||||||||||||
| Total earnings | $ | 793 | $ | 908 | $ | 1,160 | $ | 952 | $ | 927 | $ | 833 | |||||||||||
| Ratio of earnings to fixed charges | 1.5 | 1.8 | 2.6 | 2.8 | 3.1 | 2.9 | |||||||||||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 1.5 | 1.8 | 2.6 | 2.8 | 3.1 | 2.9 | |||||||||||||||||
| (a) | Net income excludes extraordinary items, minority interest and the cumulative effect of a change in accounting principle. | ||||||||||||||||||||||
| (b) | PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges. | ||||||||||||||||||||||
| (c) | Ratio of earnings to fixed charges for years 2001 and prior were recalculated to give proper effect of preferred security dividends of subsidiaries on a pre-tax basis. | ||||||||||||||||||||||