Exhibit 12
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
(In Thousands Except Ratios)
Three Months Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1997 1996 1997 1996 1997 1996
EARNINGS:
Income before preferred stock dividends $ 4,862 $ 4,366 $ 8,747 $ 7,960 $ 17,542 $ 17,255
Federal income taxes 2,573 2,303 4,620 4,192 9,250 9,122
Interest charges 4,222 2,932 8,515 5,794 15,525 11,465
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Earnings available to cover fixed charges 11,657 9,601 21,882 17,946 42,317 37,842
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FIXED CHARGES AND PREFERRED DIVIDENDS:
Interest on long-term debt 3,394 3,253 6,647 6,506 13,152 12,011
Preferred dividend requirement (1) 310 310 620 621 1,240 1,241
Other interest 781 552 1,767 960 3,447 2,264
Amortization of debt discount - net 89 88 178 176 364 338
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Total fixed charges 4,574 4,203 9,212 8,263 18,203 15,854
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Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.55 2.28 2.38 2.17 2.32 2.39
======================================================
(1) Preferred Dividend Requirement:
Preferred dividends 203 203 406 407 812 812
Effective tax rate 34.61% 34.53% 34.56% 34.50% 34.53% 34.58%
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Preferred dividend requirement $ 310 $ 310 $ 620 $ 621 $ 1,240 $ 1,241
======================================================
<FN>
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.
</FN>
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Exhibit 12
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Three Months Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1997 1996 1997 1996 1997 1996
EARNINGS:
Income before preferred stock dividends $ 4,862 $ 4,366 $ 8,747 $ 7,960 $ 17,542 $ 17,255
Federal income taxes 2,573 2,303 4,620 4,192 9,250 9,122
Interest charges 4,222 2,932 8,515 5,794 15,525 11,465
------------------------------------------------------
Earnings available to cover fixed charges 11,657 9,601 21,882 17,946 42,317 37,842
------------------------------------------------------
FIXED CHARGES:
Interest on long-term debt 3,394 3,253 6,647 6,506 13,152 12,011
Other interest 781 552 1,767 960 3,447 2,264
Amortization of debt discount - net 89 88 178 176 364 338
------------------------------------------------------
Total fixed charges 4,264 3,893 8,592 7,642 16,963 14,613
------------------------------------------------------
Ratio of Earnings to Fixed Charges 2.73 2.47 2.55 2.35 2.49 2.59
======================================================
<FN>
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.
</FN>