EXHIBIT 12 KENTUCKY UTILITIES COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12 Months Ended March 31, 1995 (in thousands, except ratio) Earnings Net Income $ 71,096 Adjustments Fixed charges 36,118 Income taxes Current Federal 32,673 Current State 7,737 Deferred Federal-Net (103) Deferred State-Net 363 Deferred investment tax credit-Net (83) Income taxes included in Other Income and Deductions Current Federal and State 1,358 Deferred Federal and State (633) Amortization of investment tax credit (4,024) Undistributed income of Electric Energy, Inc. 51 Total Earnings $ 144,553 Fixed Charges Interest on long-term debt $ 32,634 Other interest charges 3,484 Total Fixed Charges $ 36,118 Ratio of Earnings to Fixed Charges 4.00 Note--Rentals are not material and have not been included in fixed charges. -16-