Exhibit 12
Page 1 of 4
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Three Months Ended
March 31,
1996 1995
________ ________
EARNINGS:
Income before preferred stock dividends $3,594,176 $3,652,633
Federal income taxes 1,888,944 1,921,133
Interest charges 2,861,728 2,696,157
___________ ___________
Earnings available to cover fixed charges $8,344,848 $8,269,923
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 3,252,986 2,693,561
Preferred dividend requirement (1) 310,069 310,163
Other interest 407,946 423,742
Amortization of debt discount - net 88,139 80,889
___________ ___________
Total fixed charges $4,059,140 $3,508,355
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.06 2.36
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $203,250 $203,250
Effective tax rate 34.45% 34.47%
___________ ___________
Preferred dividend requirement $310,069 $310,163
___________ ___________
___________ ___________
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 4
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
Twelve Months Ended
March 31,
1996 1995
________ ________
EARNINGS:
Income before preferred stock dividends $17,266,687 $14,794,265
Federal income taxes 9,129,321 7,721,534
Interest charges 11,280,067 10,447,169
___________ ___________
Earnings available to cover fixed charges $37,676,075 $32,962,968
___________ ___________
___________ ___________
FIXED CHARGES AND
PREFERRED DIVIDENDS:
Interest on long-term debt 11,451,554 10,774,196
Preferred dividend requirement (1) 1,242,929 1,229,691
Other interest 2,328,107 595,745
Amortization of debt discount - net 330,807 323,557
___________ ___________
Total fixed charges $15,353,397 $12,923,189
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.45 2.55
___________ ___________
___________ ___________
(1) Preferred Dividend Requirement:
Preferred dividends $813,000 $808,030
Effective tax rate 34.59% 34.29%
___________ ___________
Preferred dividend requirement $1,242,929 $1,229,691
___________ ___________
___________ ___________
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 4
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
Three Months Ended
March 31,
1996 1995
________ ________
EARNINGS:
Income before preferred stock dividends $3,594,176 $3,652,633
Federal income taxes 1,888,944 1,921,133
Interest charges 2,861,728 2,696,157
___________ ___________
Earnings available to cover fixed charges $8,344,848 $8,269,923
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 3,252,986 2,693,561
Other interest 407,946 423,742
Amortization of debt discount - net 88,139 80,889
___________ ___________
Total fixed charges $3,749,071 $3,198,192
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.23 2.59
___________ ___________
___________ ___________
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 4 of 4
Elizabethtown Water Company & Subsidiary
Computation of Ratio of Earnings to Fixed Charges
Twelve Months Ended
March 31,
1996 1995
________ ________
EARNINGS:
Income before preferred stock dividends $17,266,687 $14,794,265
Federal income taxes 9,129,321 7,721,534
Interest charges 11,280,067 10,447,169
___________ ___________
Earnings available to cover fixed charges $37,676,075 $32,962,968
___________ ___________
___________ ___________
FIXED CHARGES:
Interest on long-term debt 11,451,554 10,774,196
Other interest 2,328,107 595,745
Amortization of debt discount - net 330,807 323,557
___________ ___________
Total fixed charges $14,110,468 $11,693,498
___________ ___________
___________ ___________
Ratio of Earnings to Fixed Charges 2.67 2.82
___________ ___________
___________ ___________
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.