Exhibit 12
Delmarva Power & Light Company
Ratio of Earnings to Fixed Charges
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(Dollars in Thousands)
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12 Months
Ended Year Ended December 31,
September 30, ---------------------------------------------------------
1996 1995 1994 1993 1992 1991
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Net income (1) $114,426 $117,488 $108,310 $111,076 $98,526 $80,506
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Income taxes (1) 74,882 75,540 67,613 67,102 54,834 43,249
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Fixed charges:
Interest on long-term
debt 69,130 65,572 61,128 62,651 66,976 68,133
Other interest 11,950 10,353 9,336 9,245 8,449 10,192
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Total fixed charges 81,080 75,925 70,464 71,896 75,425 78,325
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Nonutility capitalized
interest (309) (304) (256) (246) (231) (143)
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Earnings before income
taxes and fixed
charges $270,079 $268,649 $246,131 $249,828 $228,554 $201,937
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Ratio of earnings to
fixed charges 3.33 3.54 3.49 3.47 3.03 2.58
For purposes of computing the ratio, earnings are net income plus income taxes
and fixed charges, less nonutility capitalized interest. Fixed charges consist
of interest on long-and short-term debt, amortization of debt discount,
premium, and expense, plus the interest factor associated with the Company's
major leases, and one-third of the remaining annual rentals.
(1) Net income and income taxes related to the cumulative effect of a change
in accounting for unbilled revenues recorded in 1991 are excluded from
the computation of this ratio.
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