Exhibit 12A
Page 1 of 2
GPU, INC. AND SUBSIDIARY COMPANIES
STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503
(In Thousands)
--------------------------------------------------------------------
UNAUDITED
Nine Months Ended
-----------------------------
September 30, September 30,
2000 1999
------------- -------------
OPERATING REVENUES $3,912,104 $3,385,689
--------- ---------
OPERATING EXPENSES 3,521,634 2,578,059
Interest portion of rentals (A) 17,863 24,969
Fixed charges of service company
subsidiaries (B) 3,911 4,165
--------- ---------
Net expense 3,499,860 2,548,925
--------- ---------
OTHER INCOME AND DEDUCTIONS:
Allowance for funds used
during construction 3,541 3,204
Equity in undistributed earnings
of affiliates, net 22,278 79,370
Loss on sale of business (372,492) -
Other income, net 112,568 77,283
Minority interest net income (2,816) (1,796)
--------- ---------
Total other income and deductions (236,921) 158,061
--------- ---------
EARNINGS AVAILABLE FOR FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (excluding
taxes based on income) $ 175,323 $ 994,825
========= =========
FIXED CHARGES:
Interest on funded indebtedness $ 386,549 $ 286,672
Other interest (C) 13,714 46,455
Preferred stock dividends of
subsidiaries on a pretax basis (E) 22,588 13,934
Interest portion of rentals (A) 17,863 24,969
--------- ---------
Total fixed charges $ 440,714 $ 372,030
========= =========
RATIO OF EARNINGS TO FIXED CHARGES (F) 0.40 2.67
==== ====
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (D) (F) 0.40 2.67
==== ====
Exhibit 12A
Page 2 of 2
GPU, INC. AND SUBSIDIARY COMPANIES
STATEMENTS SHOWING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS BASED ON SEC REGULATION S-K, ITEM 503
(In Thousands)
-------------------------------------------------------------------
UNAUDITED
NOTES:
(A) GPU has included the equivalent of the interest portion of all rentals
charged to income as fixed charges for this statement and has excluded
such components from Operating Expenses.
(B) Represents fixed charges of GPU Service, Inc. and GPU Nuclear, Inc. which
are accounted for as operating expenses in GPU's consolidated income
statement. GPU has removed the fixed charges from operating expenses and
included such amounts in fixed charges as interest on funded indebtedness
and other interest for this statement.
(C) Includes amount for subsidiary-obligated mandatorily redeemable preferred
securities of $8,025 and $19,752 for the nine month periods ended
September 30, 2000 and 1999, respectively, and amount for
subsidiary-obligated trust preferred securities of $10,017 and $4,673,
respectively, for the same periods.
(D) GPU, Inc., 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.
(E) Calculation of preferred stock dividends of subsidiaries on a pretax basis
is as follows:
Nine Months Ended
-----------------------------
September 30, September 30,
2000 1999
------------- -------------
Income before provision for income taxes
and preferred stock dividends of subsidiaries $119,672 $636,729
Income before preferred stock dividends
of subsidiaries 29,208 394,156
Pretax earnings ratio 409.7% 161.5%
Preferred stock dividends of subsidiaries 5,513 8,628
Preferred stock dividends of subsidiaries on
a pretax basis 22,588 13,934
(F) Pre-tax earnings for the nine months ended September 30, 2000 are
inadequate to cover both fixed charges, and combined fixed charges and
preferred stock dividends. The deficiency in pre-tax earnings for both the
ratio of earnings to fixed charges, and the ratio of earnings to combined
fixed charges and preferred stock dividends is $265,391, which represents
the amount of additional pre-tax earnings needed to achieve one-to-one
ratios.