PPL (PPL) 10-K 2009 FY Annual report

Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars)
	2009		2008		2007		2006		2005
Earnings, as defined:
Income from Continuing Operations Before Income Taxes	$	596	$	1,357	$	1,281	$	1,099	$	780
Less earnings of equity method investments		2		1		3		4		5
Distributed income from equity method investments		2		1		5		3		5
		596		1,357		1,283		1,098		780
Total fixed charges as below		513		568		609		559		569
Less:
Capitalized interest and interest component of AFUDC		45		59		58		24		9
Preferred security distributions of subsidiaries on a pre-tax basis		24		27		23		24		5
Interest expense related to discontinued operations		5		8		33		36		37
Total fixed charges included in Income from Continuing Operations Before Income Taxes		439		474		495		475		518
Total earnings	$	1,035	$	1,831	$	1,778	$	1,573	$	1,298
Fixed charges, as defined:
Interest on long-term debt	$	397	$	478	$	522	$	482	$	480
Interest on short-term debt and other interest		34		28		35		13		29
Amortization of debt discount, expense and premium - net		15		12		8		11		23
Estimated interest component of operating rentals		42		22		21		29		32
Preferred securities distributions of subsidiaries on a pre-tax basis		24		27		23		24		5
Fixed charges of majority-owned share of 50% or less-owned persons		1		1
Total fixed charges (a)	$	513	$	568	$	609	$	559	$	569
Ratio of earnings to fixed charges		2.0		3.2		2.9		2.8		2.3
Ratio of earnings to combined fixed charges and preferred stock dividends (b)		2.0		3.2		2.9		2.8		2.3

(a)	Interest on unrecognized tax benefits is not included in fixed charges.
(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.