EXHIBIT 12-1 PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES SEC METHOD ($000) 9 MONTHS ENDED 09/30/98 -------- NET INCOME $538,784 ADD BACK: - - INCOME TAXES: OPERATING INCOME 356,829 NON-OPERATING INCOME (19,115) ------- NET TAXES 337,714 - - FIXED CHARGES: INTEREST APPLICABLE TO DEBT 248,994 ANNUAL RENTALS 6,869 ------- TOTAL FIXED CHARGES 255,863 ------- ADJUSTED EARNINGS INCLUDING AFUDC $1,132,361 ========== RATIO OF EARNINGS TO FIXED CHARGES 4.43 ====