Exhibit 12(b) | |||||||||||||||||||||||
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES | |||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||
3 Months | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||
March 31, | Years Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income (Loss) from Continuing Operations Before | |||||||||||||||||||||||
Income Taxes | $ | 486 | $ | 1,212 | $ | 881 | $ | (13) | $ | 671 | $ | 785 | |||||||||||
Adjustments to reflect earnings from equity method | |||||||||||||||||||||||
investments on a cash basis | 1 | 7 | 1 | 2 | |||||||||||||||||||
486 | 1,213 | 888 | (12) | 671 | 787 | ||||||||||||||||||
Total fixed charges as below | 58 | 259 | 426 | 364 | 390 | 388 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 13 | 47 | 33 | 44 | 57 | 54 | |||||||||||||||||
Interest expense and fixed charges related to | |||||||||||||||||||||||
discontinued operations | 3 | 147 | 102 | 157 | 217 | ||||||||||||||||||
Total fixed charges included in Income (Loss) from | |||||||||||||||||||||||
Continuing Operations Before Income Taxes | 45 | 209 | 246 | 218 | 176 | 117 | |||||||||||||||||
Total earnings | $ | 531 | $ | 1,422 | $ | 1,134 | $ | 206 | $ | 847 | $ | 904 | |||||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges (a) | $ | 50 | $ | 223 | $ | 387 | $ | 321 | $ | 374 | $ | 374 | |||||||||||
Estimated interest component of operating rentals | 8 | 36 | 38 | 42 | 15 | 14 | |||||||||||||||||
Fixed charges of majority-owned share of 50% or | |||||||||||||||||||||||
less-owned persons | 1 | 1 | 1 | ||||||||||||||||||||
Total fixed charges (b) | $ | 58 | $ | 259 | $ | 426 | $ | 364 | $ | 390 | $ | 388 | |||||||||||
Ratio of earnings to fixed charges (c) | 9.2 | 5.5 | 2.7 | 0.6 | 2.2 | 2.3 | |||||||||||||||||
(a) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
(b) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(c) | In January 2011, PPL Energy Supply distributed its 100% membership interest in PPL Global to PPL Energy Supply's parent, PPL Energy Funding. As a result, PPL Global’s operating results were reclassified as Discontinued Operations. Upon reflecting this reclassification, earnings were less than fixed charges for 2009. See Note 9 in PPL Energy Supply’s 2011 Form 10-K for additional information. The total amount of fixed charges for this period was approximately $364 million and the total amount of earnings was approximately $206 million. The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $158 million. |