Exhibit 12-A
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)
Twelve Months Ended December 31,
--------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- -----------
OPERATING REVENUES $4,248,792 $4,143,379 $3,970,711 $3,822,459 $3,654,211
--------- --------- --------- --------- ---------
OPERATING EXPENSES 3,352,713 3,272,644 3,292,796 3,080,614 3,017,888
Interest portion
of rentals (A) 30,594 26,108 26,093 27,362 24,655
Fixed charges of
service company
subsidiaries (B) 2,424 3,121 3,695 3,666 3,637
--------- --------- --------- --------- ---------
Net expense 3,319,695 3,243,415 3,263,008 3,049,586 2,989,596
--------- --------- --------- --------- ---------
OTHER INCOME AND DEDUCTIONS:
Allowance for funds
used during
construction 5,264 5,583 10,672 14,671 11,827
Equity in undistributed
earnings/(losses) of
affiliates, net 72,012 (27,100) 33,981 (3,597) (1,014)
Other income/
(expense), net 48,366 5,585 23,490 215,007 (146,958)
Minority interest
net income (2,171) (1,337) (2,701) (922) -
--------- --------- --------- --------- ---------
Total other income
and deductions 123,471 (17,269) 65,442 225,159 (136,145)
--------- --------- --------- --------- ---------
EARNINGS AVAILABLE FOR FIXED
CHARGES AND PREFERRED
STOCK DIVIDENDS
(excluding taxes
based on income) $1,052,568 $ 882,695 $ 773,145 $ 998,032 $ 528,470
========= ========= ========= ========= =========
FIXED CHARGES:
Interest on funded
indebtedness $ 319,737 $ 249,026 $ 216,352 $ 192,488 $ 186,259
Other interest (C) 65,024 66,400 59,398 56,396 47,498
Preferred stock dividends
of subsidiaries on a
pretax basis (E) 18,045 19,500 24,008 26,756 30,314
Interest portion
of rentals (A) 30,594 26,108 26,093 27,362 24,655
--------- --------- --------- --------- ---------
Total fixed
charges $ 433,400 $ 361,034 $ 325,851 $ 303,002 $ 288,726
========= ========= ========= ========= =========
RATIO OF EARNINGS
TO FIXED CHARGES 2.43 2.44 2.37 3.29 1.83
==== ==== ==== ==== ====
RATIO OF EARNINGS
TO COMBINED FIXED
CHARGES AND PREFERRED
STOCK DIVIDENDS (D) 2.43 2.44 2.37 3.29 1.83
==== ==== ==== ==== ====
Exhibit 12-A
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)
<FN>
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 $28,888, $28,888, $28,888, $24,816 and $7,692 for
the years 1998, 1997, 1996, 1995 and 1994, 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:
</FN>
Twelve Months Ended December 31,
--------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- -----------
Income before provision
for income taxes and
preferred stock dividends
of subsidiaries and
gain on preferred
stock reacquisition $637,213 $541,161 $471,302 $721,786 $270,058
Income before extraordinary
item in 1998 and preferred
stock dividends of
subsidiaries and gain
on preferred stock
reacquisition 397,124 347,625 304,583 457,080 184,380
Pretax earnings ratio 160.5% 155.7% 154.7% 157.9% 146.5%
Preferred stock dividends
of subsidiaries 11,243 12,524 15,519 16,945 20,692
Preferred stock dividends
of subsidiaries on
a pretax basis 18,045 19,500 24,008 26,756 30,314