Exhibit 12-B
Delmarva Power & Light Company
Ratio of Earnings to Fixed Charges and Preferred Dividends
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(Dollars in Thousands)
1993 1992 1991
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Net income (1) $111,076 $98,526 $80,506
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Income taxes (1) 67,102 54,834 43,249
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Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and expense 62,651 66,976 68,133
Other interest 9,245 8,449 10,192
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Total fixed charges 71,896 75,425 78,325
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Nonutility capitalized interest (246) (231) (143)
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Earnings before income taxes
and fixed charges $249,828 $228,554 $201,937
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Fixed charges $71,896 $75,425 $78,325
Preferred dividend requirements 14,803 15,785 11,672
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$86,699 $91,210 $89,997
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Ratio of earnings to fixed charges
and preferred dividends 2.88 2.51 2.24
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, plus the interest
factor associated with the Company'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 net income.
(1) Net income and income taxes related to the cumulative effect of a
change in accounting for unbilled revenues recorded in 1991 are
excluded from the computation of this ratio.