Exhibit 12
Page 1 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Three Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $4,377,222 $3,484,046
Federal income taxes 2,310,565 1,828,914
Interest charges 2,747,282 2,637,873
___________ ___________
Earnings available to cover fixed charges $9,435,069 $7,950,833
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 2,693,560 2,693,518
Preferred dividend requirement (1) 310,542 309,927
Other interest 616,363 570
Amortization of debt discount - net 80,889 80,889
___________ ___________
Total fixed charges $3,701,354 $3,084,904
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.55 2.58
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $203,250 $203,250
Effective tax rate 34.55% 34.42%
___________ ___________
Preferred dividend requirement $310,542 $309,927
___________ ___________
___________ ___________
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 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.
Exhibit 12
Page 2 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Six Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $8,029,855 $6,565,556
Federal income taxes 4,231,698 3,442,508
Interest charges 5,443,439 5,288,921
___________ ___________
Earnings available to cover fixed charges $17,704,992 $15,296,985
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 5,387,121 5,386,891
Preferred dividend requirement (1) 620,705 689,813
Other interest 1,040,105 4,074
Amortization of debt discount - net 161,778 157,867
___________ ___________
Total fixed charges $7,209,709 $6,238,645
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.46 2.45
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $406,500 $452,517
Effective tax rate 34.51% 34.40%
___________ ___________
Preferred dividend requirement $620,705 $689,813
___________ ___________
___________ ___________
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 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.
Exhibit 12
Page 3 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Twelve Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $15,687,441 $14,844,915
Federal income taxes 8,203,185 8,087,762
Interest charges 10,556,578 10,925,005
___________ ___________
Earnings available to cover fixed charges $34,447,204 $33,857,682
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 10,774,238 11,105,780
Preferred dividend requirement (1) 1,230,627 1,510,145
Other interest 1,211,538 18,402
Amortization of debt discount - net 323,557 273,856
___________ ___________
Total fixed charges $13,539,960 $12,908,183
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.54 2.62
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $808,030 $977,517
Effective tax rate 34.34% 35.27%
___________ ___________
Preferred dividend requirement $1,230,627 $1,510,145
___________ ___________
___________ ___________
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 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.
Exhibit 12
Page 4 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
Three Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $4,377,222 $3,484,046
Federal income taxes 2,310,565 1,828,914
Interest charges 2,747,282 2,637,873
___________ ___________
Earnings available to cover fixed charges $9,435,069 $7,950,833
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 2,693,560 2,693,518
Other interest 616,363 570
Amortization of debt discount - net 80,889 80,889
___________ ___________
Total fixed charges $3,390,812 $2,774,977
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.78 2.87
___________ ___________
___________ ___________
Earnings to Fixed Charges represents the sum of Income Before Preferred Stock
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
Page 5 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
Six Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $8,029,855 $6,565,556
Federal income taxes 4,231,698 3,442,508
Interest charges 5,443,439 5,288,921
___________ ___________
Earnings available to cover fixed charges $17,704,992 $15,296,985
___________ ___________
___________ ___________
FIXED CHARGES AND
Interest on long-term debt 5,387,121 5,386,891
Other interest 1,040,105 4,074
Amortization of debt discount - net 161,778 157,867
___________ ___________
Total fixed charges $6,589,004 $5,548,832
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.69 2.76
___________ ___________
___________ ___________
Earnings to Fixed Charges represents the sum of Income Before Preferred Stock
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
Page 6 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
Twelve Months Ended
June 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $15,687,441 $14,844,915
Federal income taxes 8,203,185 8,087,762
Interest charges 10,556,578 10,925,005
___________ ___________
Earnings available to cover fixed charges $34,447,204 $33,857,682
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 10,774,238 11,105,780
Other interest 1,211,538 18,402
Amortization of debt discount - net 323,557 273,856
___________ ___________
Total fixed charges $12,309,333 $11,398,038
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.80 2.97
___________ ___________
___________ ___________
Earnings to Fixed Charges represents the sum of Income Before Preferred Stock
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.