Exhibit 12.3
BGE
Ratio of Earnings to Combined Fixed Charges
| | | | |
| | | Quarter
Ended
March 31,
2012 | |
Pre-tax income from continuing operations | | | (46 | ) |
Less: Capitalized interest | | | (1 | ) |
| | | | |
Pre-tax income from continuing operations after adjustment for capitalized interest | | | (47 | ) |
Fixed charges: | | | | |
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness (c) | | | 42 | |
Interest component of rental expense (a) | | | 1 | |
| | | | |
Total fixed charges | | | 43 | |
Pre-tax income from continuing operations after adjustment for capitalized interest and plus fixed charges | | | (4 | ) |
Ratio of earnings to combined fixed charges | | | | (b) |
| (a) | Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |
| (b) | Due to the registrant’s loss for the quarter ended March 31, 2012, the ratio coverage was less than 1:1. The registrant must generate additional earnings of $46 million to achieve a coverage ratio of 1:1. |
| (c) | Includes interest expense of $1 million for the quarter ended March 31, 2012, related to uncertain tax positions. |
BGE
Ratio of Earnings to Combined Fixed Charges and Preference Stock Dividends
| | | | |
| | | Quarter
Ended
March 31,
2012 | |
Pre-tax income from continuing operations | | | (46 | ) |
Less: Capitalized interest | | | (1 | ) |
Preference security dividend requirements | | | (5 | ) |
| | | | |
Pre-tax income from continuing operations after adjustment for capitalized interest and preference security dividend requirements | | | (52 | ) |
Fixed charges: | | | | |
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness (c) | | | 42 | |
Interest component of rental expense (a) | | | 1 | |
Preference security dividend requirements | | | 5 | |
| | | | |
Total fixed charges | | | 48 | |
Pre-tax income from continuing operations after adjustment for capitalized interest and preference security dividend requirements plus fixed charges | | | (4 | ) |
Ratio of earnings to combined fixed charges and preference stock dividends | | | | (b) |
| (a) | Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |
| (b) | Due to the registrant’s loss for the quarter ended March 31, 2012, the ratio coverage was less than 1:1. The registrant must generate additional earnings of $50 million to achieve a coverage ratio of 1:1. |
| (c) | Includes interest expense of $1 million for the quarter ended March 31, 2012, related to uncertain tax positions. |
