EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED AND PREFERENCE DIVIDEND REQUIREMENTS
12 Months Ended
June December December December December December
1996 1995 1994 1993 1992 1991
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(In Thousands of Dollars)
Net Income $381,598 $338,007 $323,617 $309,866 $264,347 $233,681
Taxes on Income 206,033 172,388 156,702 140,833 105,994 88,041
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Adjusted Net Income $587,631 $510,395 $480,319 $450,699 $370,341 $321,722
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Fixed Charges:
Interest and Amortization
of Debt Discount and
Expense and Premium on
all Indebtedness $202,712 $206,666 $204,206 $ 199,415 $200,848 $213,616
Capitalized Interest 14,451 15,050 12,427 16,167 13,800 20,953
Interest Factor in Rentals 1,812 2,099 2,010 2,144 2,033 1,801
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Total Fixed Charges $218,975 $223,815 $218,643 $217,726 $216,681 $236,370
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Preferred and Preference
Dividend Requirements: (1)
Preferred and Preference
Dividends $ 42,442 $ 40,578 $ 39,922 $ 41,839 $ 42,247 $ 42,746
Income Tax Required 22,646 20,434 19,074 18,763 16,729 15,916
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Total Preferred and
Preference Dividend
Requirements $ 65,088 $61,012 $ 58,996 $ 60,602 $ 58,976 $ 58,662
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Total Fixed Charges
and Preferred
and Preference
Dividend Requirements $284,063 $284,827 $277,639 $278,328 $275,657 $295,032
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Earnings (2) $792,155 $719,160 $686,535 $652,258 $573,222 $537,139
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Ratio of Earnings to
Fixed Charges 3.62 3.21 3.14 3.00 2.65 2.27
Ratio of Earnings to
Combined Fixed Charges
and Preferred and Preference
Dividend Requirements 2.79 2.52 2.47 2.34 2.08 1.82
(1)Preferred and preference dividend requirements consist of an amount equal to
the pre-tax earnings that would be required to meet dividend requirements on
preferred stock and preference stock.
(2)Earnings are deemed to consist of net income that includes earnings of BGE's
consolidated subsidiaries, equity in the net income of BGE's unconsolidated
subsidiary, income taxes (including deferred income taxes and investment tax
credit adjustments), and fixed charges other than capitalized interest.