Exhibit 12 PP&L RESOURCES, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars) 12 Months Ended 12 Months Ended September 30, December 31, 1998(a) 1997 1996 1995 1994 1993 Fixed charges, as defined: Interest on long-term debt .......... $198 $196 $207 $213 $214 $226 Interest on short-term debt and other interest ............... 28 25 17 18 18 13 Amortization of debt discount, expense and premium - net.................. 2 2 2 2 2 2 Interest on capital lease obligations Charged to expense .............. 8 9 13 15 12 9 Capitalized ..................... 2 2 2 2 1 1 Estimated interest component of operating rentals ................. 18 15 8 8 6 5 Proportionate share of fixed charges of 50-percent-or-less-owned persons ........................... 1 1 1 1 1 1 Total fixed charges ......... $257 $250 $250 $259 $254 $257 Earnings, as defined: Net income .......................... $363 $296 $329 $323 $216 $314 Preferred and Preference Stock Dividend Requirements.............. 26 24 28 28 28 34 Less undistributed income of less than 50-percent-owned persons ..... - - - - - - 389 320 357 351 244 348 Add (Deduct): Federal income taxes ................ 173 169 189 195 198 163 State income taxes .................. 54 59 64 62 77 64 Deferred income taxes ............... 29 29 10 15 (45) 22 Investment tax credit - net ......... (6) (10) (10) (10) (12) (14) Income taxes on other income and deductions - net .................. - (9) - 24 (38) (1) Amortization of capitalized interest on capital leases ........ 2 2 4 5 9 12 Total fixed charges as above (excluding capitalized interest on capital lease obligations) ..... 255 248 248 257 253 256 Total earnings .............. $896 $808 $862 $899 $686 $850 Ratio of earnings to fixed charges ............................. 3.49 3.23 3.45 3.47 2.70 3.31 <FN> (a) Excluding extraordinary items.