EXHIBIT 12
The AES Corporation And Subsidiaries
Statement of Computation of Ratio of Earnings to Fixed Charges
(In millions, unaudited)
- -------------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000
Actual:
COMPUTATION OF EARNINGS:
Income from continuing operations
Before income taxes $207 $284 $546 $420 $1,019
Adjustment for undistributed equity
Earnings, net of distributions (34) (78) (107) 72 375
Depreciation of previously capitalized interest 4 4 6 6 8
Fixed Charges 171 311 564 783 1,560
Less:
Capitalized interest (27) (67) (79) (104) (207)
Preference security dividends
of consolidated subsidiary - - - (1) (3)
Minority interest in pre-tax income of
subsidiaries that have not incurred fixed
charges - - - (2) (31)
----------------------------------------------------------
Earnings $321 $454 $930 $1,174 $2,721
----------------------------------------------------------
COMPUTATION OF FIXED CHARGES:
Interest expense and amortization of issuance costs $144 $244 $485 $640 $1,296
Capitalized Interest 27 67 79 104 207
Preference security dividends of consolidated - - - 1 3
subsidiary
Estimate of interest expense within rental expense - - - 38 54
----------------------------------------------------------
----------------------------------------------------------
Fixed Charges $171 $311 $564 $783 $1,560
----------------------------------------------------------
----------------------------------------------------------
Ratio of earnings to fixed charges 1.88x 1.46x 1.65x 1.50x 1.74x
- -------------------------------------------------------------------------------------------------------------------