Exhibit (12)(b)
ILLINOIS POWER COMPANY
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO
FIXED CHARGES
(Thousands of Dollars)
Year Ended December 31, Supplemental** Supplemental***
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1992 1993 1993 1994 1995 1996 1997 1997
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Earnings Available for
Fixed Charges:
Net Income (Loss) $ 122,088 ($ 56,038) ($ 56,038) $ 180,242 $ 182,713 $ 228,618 ($ 65,669)($ 65,669)
Add:
Income Taxes:
Current 22,930 25,260 25,260 58,354 98,578 163,873 72,680 72,680
Deferred - Net 63,739 82,057 82,057 71,177 34,137 (16,028) 36,963 36,963
Allocated income taxes (6,632) (12,599) (12,599) (8,285) (8,417) (2,642) (1,446) (1,446)
Investment tax credit - deferred (519) (782) (782) (11,331) (6,894) (7,278) (7,278) (7,278)
Income tax effect of disallowed costs -- (70,638) (70,638) -- -- -- -- --
Income tax effect of FAS 71 write-off -- -- -- -- -- -- (117,998) (117,998)
Interest on long-term debt 160,795 154,110 154,110 135,115 125,581 118,438 109,595 109,595
Amortization of debt expense and
premium-net, and other interest charges 12,195 17,007 17,007 15,826 29,558 22,325 26,260 26,260
One-third of all rentals(Estimated to be
representative of the interest component) 5,117 5,992 5,992 5,847 5,221 4,346 4,229 4,229
Interest on in-core fuel 8,278 6,174 6,174 7,185 6,716 4,757 3,842 3,842
Disallowed Clinton plant costs -- -- 270,956 -- -- -- -- --
FAS 71 Regulatory Write-Offs -- -- -- -- -- -- -- 313,030
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Earnings (loss) available for fixed charges $ 387,991 $ 150,543 $ 421,499 $ 454,130 $ 467,193 $ 516,409 $ 61,178 $ 374,208
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Fixed charges:
Interest on long-term debt $ 160,795 $ 154,110 $ 154,110 $ 135,115 $ 125,581 $ 118,438 $ 109,595 $ 109,595
Amortization of debt expense and
premium-net, and other interest charges 25,785 27,619 27,619 25,381 38,147 28,957 31,204 31,204
One-third of all rentals (Estimated to be
representative of the interest component) 5,117 5,992 5,992 5,847 5,221 4,346 4,229 4,229
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Total Fixed Charges $ 191,697 $ 187,721 $ 187,721 $ 166,343 $ 168,949 $ 151,741 $ 145,028 $ 145,028
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Ratio of earnings to fixed charges 2.02 0.80 * 2.25 2.73 2.77 3.40 0.42 * 2.58
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* Earnings are inadequate to cover fixed charges. Additional earnings
(thousands) for 1993 and 1997 of $63,014 and $83,850, respectively,
are required to attain a one-to-one ratio of Earnings to Fixed
Charges.
** Supplemental ratio of earnings to fixed charges presented to exclude
nonrecurring item - Disallowed Clinton plant costs.
*** Supplemental ratio of earnings to fixed charges presented to exclude
write-off related to the discontinued application of SFAS 71,
"Accounting for the Effects of Certain Types of Regulation" for the
generation segment of the business.