EXHIBIT 12-2 PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS 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 EARNINGS REQUIRED FOR PREFERRED DIVIDENDS: DIVIDENDS ON PREFERRED STOCK 9,832 ADJUSTMENT TO PREFERRED DIVIDENDS* 6,163 ------- 15,995 ------- FIXED CHARGES AND PREFERRED DIVIDENDS $271,858 ======== EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES $1,132,361 ========== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS 4.17 ==== <FN> * ADDITIONAL CHARGE EQUIVALENT TO EARNINGS REQUIRED TO ADJUST DIVIDENDS ON PREFERRED STOCK TO A PRE-TAX BASIS </FN>