Exhibit 12-B
Delmarva Power & Light Company
Ratio of Earnings to Fixed Charges and Preferred Dividends
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(Dollars in Thousands)
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12 Months
Ended Year Ended December 31,
March 31, --------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
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Net income $ 152,880 $ 112,410 $ 105,709 $ 116,187 $ 117,488 $ 108,310
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Income taxes 98,142 72,276 72,155 78,340 75,540 67,613
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Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 80,729 81,132 78,350 69,329 65,572 61,128
Other interest 7,982 9,328 12,835 12,516 10,353 9,336
Preferred dividend requirements
of a subsidiary trust 5,688 5,688 5,687 1,390 -- --
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Total fixed charges 94,399 96,148 96,872 83,235 75,925 70,464
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Nonutility capitalized interest -- -- (208) (311) (304) (256)
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Earnings before income taxes
and fixed charges $ 345,421 $ 280,834 $ 274,528 $ 277,451 $ 268,649 $ 246,131
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Fixed charges $ 94,399 $ 96,148 $ 96,872 $ 83,235 $ 75,925 $ 70,464
Preferred dividend requirements 7,124 7,150 7,556 14,961 16,185 15,948
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$ 101,523 $ 103,298 $ 104,428 $ 98,196 $ 92,110 $ 86,412
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Ratio of earnings to fixed charges
and preferred dividends 3.40 2.72 2.63 2.83 2.92 2.85
For purposes of computing the ratio, earnings are net income plus income taxes
and fixed charges, less nonutility capitalized interest. Fixed charges consist
of interest on long- and short-term debt, amortization of debt discount,
premium, and expense, dividends on preferred securities of a subsidiary trust,
plus the interest factor associated with DPL's major leases, and one-third of
the remaining annual rentals. Preferred dividend requirements represent
annualized preferred dividend requirements multiplied by the ratio that pre-tax
income bears to income.