Exhibit 12(b)
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
1990 1991 1992 1993 1994
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EARNINGS:
Income before
preferred stock
dividends $7,978,778 $11,361,063 $12,149,343 $14,832,519 $14,223,142
Federal income taxes 3,990,799 5,630,265 6,021,464 7,916,794 7,413,995
Interest charges 10,582,686 11,016,414 10,623,801 11,437,710 10,402,060
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Earnings available
to cover fixed
charges $22,552,263 $28,007,742 $28,794,608 $34,187,023 $32,039,197
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FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long
term debt $ 9,587,723 $10,585,336 $10,516,521 $11,527,301 $10,774,008
Preferred dividend
requirement (1) 1,575,158 1,570,446 1,570,446 1,610,429 1,299,326
Other interest 1,187,500 535,834 514,122 77,921 175,507
Amortization of debt
discount - net 279,103 287,180 209,631 224,383 319,646
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Total fixed charges $12,629,484 $12,978,796 $12,810,720 $13,440,034 $12,568,487
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Ratio of Earnings to
Fixed Charges and
Preferred Dividends 1.79 2.16 2.25 2.54 2.55
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(1) Preferred Dividend
Requirement:
Preferred dividends $1,050,000 $1,050,000 $1,050,000 $1,050,000 $854,047
Effective tax rate 33.34% 33.14% 33.14% 34.80% 34.27%
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Preferred dividend
requirement $1,575,158 $1,570,446 $1,570,446 $1,610,429 $1,299,326
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Earnings to Fixed Charges and Preferred Dividends represents the sum of
Income Before Preferred Stock Dividends, Federal income taxes and Interest
Charges (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.