Exhibit 12
Page 1 of 6
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Three Months Ended
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $5,719,990 $4,092,929
Federal income taxes 3,032,439 2,156,716
Interest charges 2,880,513 2,564,569
___________ ___________
Earnings available to cover fixed charges $11,632,942 $8,814,214
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 2,693,512 2,693,560
Preferred dividend requirement (1) 311,018 310,353
Other interest 648,538 10,987
Amortization of debt discount - net 80,889 80,889
___________ ___________
Total fixed charges $3,733,957 $3,095,789
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 3.12 2.85
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $203,250 $203,250
Effective tax rate 34.65% 34.51%
___________ ___________
Preferred dividend requirement $311,018 $310,353
___________ ___________
___________ ___________
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
Nine Months Ended
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $13,749,845 $10,658,485
Federal income taxes 7,264,137 5,599,224
Interest charges 8,323,952 7,853,490
___________ ___________
Earnings available to cover fixed charges $29,337,934 $24,111,199
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 8,080,633 8,080,451
Preferred dividend requirement (1) 931,912 1,000,255
Other interest 1,688,643 15,061
Amortization of debt discount - net 242,667 238,756
___________ ___________
Total fixed charges $10,943,855 $9,334,523
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.68 2.58
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $609,750 $655,767
Effective tax rate 34.57% 34.44%
___________ ___________
Preferred dividend requirement $931,912 $1,000,255
___________ ___________
___________ ___________
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
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $17,314,502 $13,410,948
Federal income taxes 9,078,908 7,174,795
Interest charges 10,872,522 10,634,201
___________ ___________
Earnings available to cover fixed charges $37,265,932 $31,219,944
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 10,774,190 10,882,318
Preferred dividend requirement (1) 1,231,753 1,409,466
Other interest 1,849,089 23,749
Amortization of debt discount - net 323,557 300,548
___________ ___________
Total fixed charges $14,178,589 $12,616,081
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.63 2.47
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $808,030 $918,267
Effective tax rate 34.40% 34.85%
___________ ___________
Preferred dividend requirement $1,231,753 $1,409,466
___________ ___________
___________ ___________
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
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $5,719,990 $4,092,929
Federal income taxes 3,032,439 2,156,716
Interest charges 2,880,513 2,564,569
___________ ___________
Earnings available to cover fixed charges $11,632,942 $8,814,214
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 2,693,512 2,693,560
Other interest 648,538 10,986
Amortization of debt discount - net 80,889 80,889
___________ ___________
Total fixed charges $3,422,939 $2,785,436
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 3.40 3.16
___________ ___________
___________ ___________
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
Nine Months Ended
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $13,749,845 $10,658,485
Federal income taxes 7,264,137 5,599,224
Interest charges 8,323,952 7,853,490
___________ ___________
Earnings available to cover fixed charges $29,337,934 $24,111,199
___________ ___________
___________ ___________
FIXED CHARGES AND
Interest on long-term debt 8,080,633 8,080,451
Other interest 1,688,643 15,061
Amortization of debt discount - net 242,667 238,756
___________ ___________
Total fixed charges $10,011,943 $8,334,268
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.93 2.89
___________ ___________
___________ ___________
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
September 30,
1995 1994
________ ________
EARNINGS:
Income before preferred stock dividends $17,314,502 $13,410,948
Federal income taxes 9,078,908 7,174,795
Interest charges 10,872,522 10,634,201
___________ ___________
Earnings available to cover fixed charges $37,265,932 $31,219,944
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 10,774,190 10,882,318
Other interest 1,849,089 23,749
Amortization of debt discount - net 323,557 300,548
___________ ___________
Total fixed charges $12,946,836 $11,206,615
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.88 2.79
___________ ___________
___________ ___________
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.