EXHIBIT 12.02 KENTUCKY UTILITIES COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of $) 1999 1998 1997 1996 1995 ---- ---- ---- ---- ---- Earnings: Net Income......................................... $ 106,558 $ 72,764 $ 85,713 $ 86,163 $ 76,842 Add: Federal income taxes - current..................... 51,754 45,704 38,500 39,221 24,451 State income taxes - current....................... 13,450 10,008 8,718 8,248 5,324 Deferred Federal income taxes - net................ (4,650) (2,492) 2,971 1,845 11,759 Deferred State income taxes - net.................. 887 54 1,635 1,905 3,743 Deferred investment tax credit-net................. - - - - (71) Investment tax credit - net........................ (3,727) (3,829) (4,036) (4,013) (4,024) Undistributed income of Electric Energy, Inc............................ 33 1 (37) 24 99 Fixed charges...................................... 39,486 39,318 40,324 40,266 40,694 ------- ------- ------- ------- ------- Earnings......................................... 203,791 161,528 173,788 173,659 158,817 ------- ------- ------- ------- ------- Fixed Charges: Interest Charges per statements of income.......... 38,904 38,660 39,729 39,688 40,116 Add: One-third of rentals charged to operating expense (1).......................... 582 658 595 578 578 --------- --------- --------- --------- --------- Fixed charges................................ $ 39,486 $ 39,318 $ 40,324 $ 40,266 $ 40,694 ------- ------- ------- ------- --------- Ratio of Earnings to Fixed Charges.................... 5.16 4.11 4.31 4.31 3.90 ======== ======== ======== ======= ======= NOTE: (1) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor.