EXHIBIT 12 KENTUCKY UTILITIES COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Year Ended December 31, 1997 1996 1995 1994 1993 (in thousands except ratios) Earnings Net Income $ 85,713 $ 86,163 $ 76,842 $ 77,512 $ 81,286 Adjustments Fixed charges 39,729 39,688 40,116 34,558 32,899 Income taxes Current Federal 39,353 35,656 23,597 37,058 35,893 Current State 8,964 7,387 5,134 8,812 9,484 Deferred Federal--Net 1,996 5,510 12,165 (1,114) 2,837 Deferred State--Net 1,377 2,899 3,845 13 71 Deferred investment tax credit--Net - - (71) (86) (107) Income taxes included in Other Income and Deductions Current Fed and State (1,099) 4,426 1,044 1,881 (2,616) Deferred Fed and State 1,233 (4,659) (508) (458) 2,817 Amortization of investment credit (4,036) (4,013) (4,024) (4,024) (4,024) Undistributed income of Electric Energy, Inc. (37) 24 99 (39) (38) Total Earnings $ 173,193 $ 173,081 $ 158,239 $ 154,113 $ 158,502 Fixed Charges Int. on long-term debt $ 37,405 $ 37,584 $ 36,095 $ 32,147 $ 31,650 Other interest charges 2,324 2,104 4,021 2,411 1,249 Total Fixed Charges $ 39,729 $ 39,688 $ 40,116 $ 34,558 $ 32,899 Ratio of Earnings to Fixed Charges 4.36 4.36 3.94 4.46 4.82 ____________ Note--Rentals are not material and have not been included in fixed charges. -60-