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
Six Months Ended
--------------------------
June 30, June 30,
1998 1997
------------ --------
OPERATING REVENUES $2,058,196 $1,993,795
--------- ---------
OPERATING EXPENSES 1,582,940 1,546,073
Interest portion of rentals (A) 13,956 11,814
Fixed charges of service company
subsidiaries (B) 1,325 1,417
--------- ---------
Net expense 1,567,659 1,532,842
--------- ---------
OTHER INCOME AND DEDUCTIONS:
Allowance for funds used
during construction 2,896 3,104
Equity in undistributed earnings
of affiliates, net 30,844 52,314
Other income, net 40,912 6,231
Minority interest net income (749) (613)
--------- --------
Total other income and deductions 73,903 61,036
--------- --------
EARNINGS AVAILABLE FOR FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (excluding
taxes based on income) $ 564,440 $ 521,989
========= =========
FIXED CHARGES:
Interest on funded indebtedness $ 162,614 $ 115,427
Other interest (C) 32,932 32,708
Preferred stock dividends of
subsidiaries on a pretax basis (E) 9,521 10,304
Interest portion of rentals (A) 13,956 11,814
--------- ---------
Total fixed charges $ 219,023 $ 170,253
========= =========
RATIO OF EARNINGS TO FIXED CHARGES 2.58 3.07
==== ====
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (D) 2.58 3.07
==== ====
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 the 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 dividends on subsidiary-obligated mandatorily redeemable
preferred securities of $14,444 for the six month periods ended June 30,
1998 and 1997, respectively.
(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:
Six Months Ended
--------------------------
June 30, June 30,
1998 1997
---------- -------
Income before provision for income taxes and
preferred stock dividends of subsidiaries $354,938 $362,040
Income before extraordinary item in 1998
and preferred stock dividends of subsidiaries 219,609 231,888
Pretax earnings ratio 161.6% 156.1%
Preferred stock dividends of subsidiaries 5,892 6,601
Preferred stock dividends of subsidiaries on
a pretax basis 9,521 10,304