Exhibit 12
Page 1 of 3
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Three Months Ended
September 30,
1994 1993
________ ________
EARNINGS:
Income before preferred stock dividends $4,092,929 $5,526,896
Federal income taxes 2,156,716 3,069,683
Interest charges 2,564,569 2,855,373
___________ ___________
Earnings available to cover fixed charges $8,814,214 $11,451,952
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 2,693,560 2,917,022
Preferred dividend requirement (1) 310,353 408,306
Other interest 10,987 5,640
Amortization of debt discount - net 80,889 54,197
___________ ___________
Total fixed charges $3,095,789 $3,385,165
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.85 3.38
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $203,250 $262,500
Effective tax rate 34.51% 35.71%
___________ ___________
Preferred dividend requirement $310,353 $408,306
___________ ___________
___________ ___________
Earnings to Fixed Charges and Preferred Dividends represents the sum of
Income Before Preferred Stock Dividends, Federal income taxes and interest
expenses (which is reduced by capitalized interest), divided by fixed charges.
Fixed Charges and Preferred Dividends consist of interest on long and short-term
debt (which is not reduced by capitalized interest), dividends on Preferred
Stock on a pre-tax basis and amortization of debt discount.
Exhibit 12
Page 2 of 3
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Nine Months Ended
September 30,
1994 1993
________ ________
EARNINGS:
Income before preferred stock dividends $10,658,485 $12,080,056
Federal income taxes 5,599,224 6,341,223
Interest charges 7,853,490 8,656,999
___________ ___________
Earnings available to cover fixed charges $24,111,199 $27,078,278
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 8,080,451 8,725,434
Preferred dividend requirement (1) 1,000,255 1,200,823
Other interest 15,061 69,233
Amortization of debt discount - net 238,756 162,591
___________ ___________
Total fixed charges $9,334,523 $10,158,081
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.58 2.67
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $655,767 $787,500
Effective tax rate 34.44% 34.42%
___________ ___________
Preferred dividend requirement $1,000,255 $1,200,823
___________ ___________
___________ ___________
Earnings to Fixed Charges and Preferred Dividends represents the sum of
Income Before Preferred Stock Dividends, Federal income taxes and interest
expenses (which is reduced by capitalized interest), divided by fixed charges.
Fixed Charges and Preferred Dividends consist of interest on long and short-term
debt (which is not reduced by capitalized interest), dividends on Preferred
Stock on a pre-tax basis and amortization of debt discount.
Exhibit 12
Page 3 of 3
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Twelve Months Ended
September 30,
1994 1993
________ ________
EARNINGS:
Income before preferred stock dividends $13,410,948 $15,122,547
Federal income taxes 7,174,795 7,735,153
Interest charges 10,634,201 11,457,217
___________ ___________
Earnings available to cover fixed charges $31,219,944 $34,314,917
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 10,882,318 11,617,538
Preferred dividend requirement (1) 1,409,466 1,587,062
Other interest 23,749 107,239
Amortization of debt discount - net 300,548 216,561
___________ ___________
Total fixed charges $12,616,081 $13,528,400
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.47 2.54
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $918,267 $1,050,000
Effective tax rate 34.85% 33.84%
___________ ___________
Preferred dividend requirement $1,409,466 $1,587,062
___________ ___________
___________ ___________
Earnings to Fixed Charges and Preferred Dividends represents the sum of
Income Before Preferred Stock Dividends, Federal income taxes and interest
expenses (which is reduced by capitalized interest), divided by fixed charges.
Fixed Charges and Preferred Dividends consist of interest on long and short-term
debt (which is not reduced by capitalized interest), dividends on Preferred
Stock on a pre-tax basis and amortization of debt discount.