Exhibit 12
E'TOWN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Year Ended December 31,
1999 1998 1997 1996 1995
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EARNINGS:
Net income $ 20,487 $ 22,330 $ 19,260 $ 15,073 $ 15,296
Federal income taxes 11,488 12,226 10,895 8,361 8,753
Interest charges 19,416 17,826 17,340 13,316 11,698
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Earnings available to
cover fixed charges 51,391 52,382 47,495 36,750 35,747
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FIXED CHARGES:
Interest on long-term debt 16,109 16,217 14,807 13,800 11,696
Other interest 3,256 1,641 2,560 2,645 2,390
Amortization of debt
discount - net 446 438 411 395 358
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Total fixed charges $ 19,811 $ 18,296 $ 17,778 $ 16,840 $ 14,444
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Ratio of Earnings
to Fixed Charges 2.59 2.86 2.67 2.18 2.47
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Earnings to Fixed Charges represents the sum of Net Income,
Federal income taxes and Interest Charges (which is reduced by
Capitalized interest), divided by Fixed Charges.
Fixed Charges consist of interest on long and short-term debt (which is not
reduced by Capitalized Interest), and Amortization of debt discount.
Exhibit 12(a)
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Year Ended December 31,
1999 1998 1997 1996 1995
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EARNINGS:
Net income $ 21,405 $ 24,768 $ 20,905 $ 16,755 $ 17,325
Federal income taxes 11,576 13,101 11,274 8,822 9,161
Interest charges 16,502 15,616 16,622 12,804 11,115
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Earnings available to
cover fixed charges 49,483 53,485 48,801 38,381 37,601
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FIXED CHARGES:
Interest on long-term debt 14,661 14,721 14,030 13,011 10,892
Other interest 1,780 960 2,382 2,640 2,344
Amortization of debt
discount - net 399 391 376 361 324
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Total fixed charges $ 16,840 $ 16,072 $ 16,788 16,012 13,560
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Ratio of Earnings to
Fixed Charges 2.94 3.33 2.91 2.40 2.77
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Earnings to Fixed Charges represents the sum of Net Income,
Dividends, Federal income taxes and Interest Charges (which is reduced by
Allowance for Debt Funds Used During Construction), divided by Fixed Charges.
Fixed Charges consist of interest on long and short-term debt (which is not
reduced by Allowance for Debt Funds Used During Construction), and
Amortization of debt discount.
Exhibit 12(b)
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
(In Thousands Except Ratios)
Year Ended December 31,
1999 1998 1997 1996 1995
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EARNINGS:
Net income $ 21,405 $ 24,768 $ 20,905 $ 16,755 $ 17,325
Federal income taxes 11,576 13,101 11,274 8,822 9,161
Interest charges 16,502 15,616 16,622 12,804 11,115
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Earnings available to
cover fixed charges 49,483 53,485 48,801 38,381 37,601
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FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 14,661 14,721 14,030 13,011 10,892
Preferred dividend
requirement (1) 1,253 1,243 1,251 1,241 1,243
Other interest 1,780 960 2,382 2,640 2,344
Amortization of debt
discount - net 399 391 376 361 324
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Total fixed charges $ 18,093 $ 17,315 $ 18,039 $ 17,253 $ 14,803
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Ratio of Earnings to
Fixed Charges and
Preferred Dividends 2.73 3.09 2.71 2.22 2.54
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(1) Preferred Dividend
Requirement:
Preferred dividends 813 813 813 813 813
Effective tax rate 35.10% 34.60% 35.04% 34.49% 34.59%
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Preferred dividend
requirement $ 1,253 $ 1,243 $ 1,251 1,241 1,243
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Earnings to Fixed Charges and Preferred Dividends represents the sum of
Net Income, Federal income taxes and Interest
Charges (which is reduced by Allowance for Debt Funds Used During
Construction), divided by Fixed Charges. Fixed Charges and Preferred
Dividends consist of interest on long and short-term debt (which is not
reduced by Allowance for Debt Funds Used During Construction), dividends
on Preferred Stock on a pre-tax basis and Amortization of debt discount.